ADVANTAGE FOOD AND

BEVERAGE SALES
REPRESENTATIVE

Presented by:
Group No. 2
Sagar Chande 04
Aniket Kumar 20
Nilay Shah 39
Shivam Dubey 114
Ajinkya Raut139

Summa
ry

Lawrence Binsky,
president of Advantage
Food & Beverage, had
hired and fired 3
sales representatives
for the Columbus, Ohio,
market.

Management review
for the new retail
format detected
problems with the
selling process and
the compensation
issues.

Company Background
Founded in 1995 by 2
brothers: Lawrence & Daryl
Binsky.
Company offered traditional
vending machine services
to businesses in Columbus,
Ohio.
In 2010, company entered
into contract with Avanti
Market System (Avanti
Kiosk).
AF&B established 2 separate
divisions: Avanti Kiosk
Division & Vending
Division.

Company Background
PROFIT & LOSS STATEMENT (in $)
JUNE 2010 TO MAY 2011
Net Sales Revenue
4,43,557
Cost of Goods Sold
1,98,297
Selling & General Administrative (SGA)

Expenses:

Salary
82,177
Transportation
18,523
Commission
6,725
Promotion
10,500
Other SGA
10,418
Total SGA expenses

Net Profit

In the next 12 months, AF&B

acquired six new customers

2,45,260
for Avanti Kiosk.

Achieving superior financial

performance:

Daryl thought that the financial

1,28,343
position could be better & thus

AF&B management decided 1,16,917

to
establish more Avanti Kiosk

Avanti Kiosk Selling Process

Hiring sales representative selling

only Avanti Kiosk and earning
$35,000 as a base and additional
5% commission for every location
opened.
AF&Bs supply truck drivers
restocked merchandise for Avanti
Kiosk and wending machine
customers getting 8% commission
on sales for both locations earning
$25000 as base and $35000 as a
compensation.

Avanti Kiosk Selling Process

Stage

Objective

Prospecting

Finding potential customers

Pre-approach

Understanding customers motivation

Approach

Introducing the company to customer

Presentation

Meeting customer needs

Close

Ask for objective/overcome objectives

and restate the close

Follow-up

Making everyone happy and resolve any

problems.

Avanti Kiosk Selling Process

Minimum requirement for supporting a Kiosk:
1. Atleast 40 sq.ft. of space
2. Internet Access
3. Corners for security cameras

Employ no more than 30% temporary or part-time

members.
Selling process for a Kiosk was slowed as the sales
representative attempted to locate the decision
maker for a qualified company.
Further slowing of process, more people from the
prospective customer involved in decision making
process.

Glitches in Selling
Process
Verifying the
percentage
of
temporary
and parttime
employees.

Amount of
work
required and
creating a
suitable
space slowed
the process.

Need to
remodel the
existing
space.

Sales
representativ
e spends
about four
to six
weeks
prospecting
to clothing.

Solution by AF&B
Providing cases, shelving, point-of-sale
technology and security cameras.
Providing a gift basket of some items
of Avanti Kiosk ranging $20 for each
for the decision makers.

Sales Training Process

Research
Continuous
Improveme
nt

Reinforceme
nt &
Measureme

Program
Developme
nt

Delivery

Sales Training at
AF&B
Lawrence

Reviewed the Current

Sales Program

Hiring
Sales
Repof Sales
experienced with
selling to businesses

The Sales
Representative would
shadow Lawrence

Representative
Individualistic decision
by Lawrence

Sales Training
One to Two Weeks

Cold calling in presence

of Lawrence

The Problem
No sales
Imprompt
representative
u firing of
had lasted
Sales
more than
5

Definitely
a flaw
Reps
months
There must be an
Flaw in
expectation to deliver
Sales
immediately
Training No substantial
Process?
measurement
standards

Compan
Mismat
y Fit as
ch of
said by
culture
Lawrence

Possible options for Sales

Training

More time to
shadowing
Learning from
other
departments
Looking to hire sale
representatives outside of the
preferred domain
Sharing
Success stories

SELLING STRATEGY
Problems: No proper training
Compensation not addressed
formally
Frequent hiring and firing of
sales rep.

Sr.
Management

All Members

Lawrence

POST MEETING CONCLUSION

Lawrence was not convinced that the sales

rep. compensation or the selling process
needed any adjustments
But he was more convinced that poor
hiring decisions was the cause
Past success was not an indication of
future performance