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Seal Distributor Business DevelopmentBrad Niedert & Jim Conley

October 2019

Hunter or Hunted?Hunted… Defensive/Protective

Slow and plodding

Satisfied and complacent

Moves with the herd

Wishes for the past

Develops new defenses

Feeds and nurtures it’s young

Success is measured by the length of survival

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Hunter…• Aggressive

• Quick and nimble

• Eats well, but still wary

• Resourceful/adaptable

• Envisions the future

• Feeds it’s young and teaches them to hunt

• Success is measured by the trophies & kills

The Distributor Seal Specialist:What does success look like?

Presented byBrad Niedert

& Jim Conley

Seal Account CoverageThree Levels/Stages of Seal Supplier

1. Transactional• “Just a vendor”

• Reactive

2. Trusted advisor• Proactive - It shows you care and value the relationship• Position your customer to win within his organization

• easier to retain and grow your business

3. Strategic partner• Proactive• “I thought you worked here.”• Maintain a place at the table and influence purchasing decision.

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Types of Seal Accounts

In-House Pump

Majority Pump Marketshare

Pump Repair

Solve Flowserve Pump Problems

Drive-In Access

Lunch/Golf

Frequent Cadence

No Growth Opportunity

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Competitor Pump

Competitor Stronghold

No Pump Repair

Not Successful in Bidding New Equipment

“Waste of time” vibe

Buys “Seals in a Box”

Low/No Touch

Large Growth Opportunity

Seal Focused

Unknown Equipment

No Pump Repair

No Allied Equipment

No Expertise

High Dollar Seals

No Touch

Large Growth Opportunity

Selling SealsMost Competitors are Single Product Focused

They Are Mechanical Seal Experts

All they know are Mechanical Seals and Systems

They Call on Key/Targeted Accounts 1xWeek to Talk about Mechanical Seals

Seals are Personal

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AssessmentProduct Flowserve Competitor 1 Competitor 2 Competitor 3

AvailabilityPackaging

CustomizationWarranty

Acquisition PriceQuality

Usage CostDurability

PerformanceName Recognition

EfficiencySafety

Total Cost of Ownership

Distributor Attributes You Competitor 1 Competitor 2 Competitor 3

Ease of Doing Business

Reputation

Technical Support

Terms

Return Policy

Response Times

Engineering Ability

Post Sale Support

Inventory

Existing Relationship

Assessment

Sales Person Attributes You Competitor 1 Competitor 2 Competitor 3

Knowledgeable

Follow-through

Understands needs

Problem Solving

Accessible

Integrity

Organized

Innovative

Align Goals

Assessment

Obstacles to Distributor Seal Success?

Management• Too Many Priorities

• Elephant Hunter Mentality

• Lack of Focus on Seals

• Who can drive results from within?

Sales• Too Many Products• Lack of a focused strategy • Relationship at End User • High Freq of Contact

• Customer• Vendor

• Not sure who to contact for answers• Lack of latest Seal Product Knowledge

Seals Are A Steady Stream Of Repeat Business

During the lifetime of a typical pump, or an annual basis…

• How many seals are sold or repaired before a new case or impeller is required?

• You get every part of the seal, not every part of the pump.• O-rings, Gaskets, Hardware, etc.

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How Others Have Been SuccessfulMany distributors have utilized a Seal Specialist/Product Manager to drive the Mechanical Seal strategy

Seal Product Sales Manager – Overall responsibility for Seal Sales –Works in combination with Full Line Salesperson

Seal Specific Salesperson – Has responsibility at all Seal Sales at all accounts

Seal Product Salesperson Hybrid - Has responsibility at all Seal Sales at key and target accounts - Works in combination with Full Line Salesperson at other accounts

Internal Seal Product Manager – Multiple Responsibilities, example: Customer Service/Application Engineer/Inside Sales – First point of internal contact

Seal Specialist Strategy

The Seal Specialist is the quarterback for the sales team at the distributor.

Many Seal focused distributors have many people that could fit the requirements if seals are a large portion of every territory.

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Seal Specialist Roles and Responsibilities

Builds an extensive product knowledge over timeSeal Specialist is Flowserve Factory Trained – 101, 201,

301 etc.Seal Specialist assists the other Distributor Sales People Internal resource for Mechanical Seal KnowledgeJoint Sales Calls as the “expert” for the End UserAssist in installation and troubleshooting Builds credibility at End User level for the Distributor

Works with Distributor Management and Flowserve ADM/SE- Collaborative EffortDevelop Strategic Plans Identify targeted End User Accounts based on

OpportunityWork with other Distributor Sales to develop Sales Call

cadenceResponsible for tracking the execution of the strategic

plan

Seal Specialist Roles and Responsibilities

Seal Specialist Roles and Responsibilities

The successful Seal Specialist is very similar to a Flowserve Sales Engineer in approachTakes Responsibility and Ownership- Gets it doneSolve Customer Problems Increase reliability to earn respect and future

businessBe quick to respondStrategic ApproachOwns the Seal Business

Seal Specialist Attributes

Develop Quotes

Recommend Seal Selection, Upgrades and Flush Plans

Present Solutions

Troubleshoot – Seals – Equipment - System

Seal Specialist Attributes

Component Focus-----------------------------------------------

Pump RepairMechanical seals

One off SalesParts Blankets

Unit Focus-----------------------------

Tech ServicesInventory Mgmt

Equipment SurveyPump Upgrades

Flowstar.NetCondition Monitoring

System Focus------------------------------------------------

Life Cycle AdvantageSystem AssessmentEnergy ManagementWireless Monitoring

Performance Contract

Seal Specialist Attributes

Mechanically Inclined – Engineer or Otherwise

Aptitude and Attitude

Communication Skills – Ability to relate to Millwright to Engineer – Social Chameleon

Seal Specialist Training

Product Training 101, 201, 301a, 301m

Mechanical Seal Fundamentals

Centrifugal Pump Fundamentals

Pump and Seal Reliability

FAEP – Flowserve Application Engineering Program

Root Cause Analysis

Public Speaking and Sales

What Motivates the Seal Specialist

An unnatural affection for all things Mechanical Seal- (Think Brad Niedert)

Money Funny- that motivates almost all of us

When Seals are sold, they must be an amicable split in credit for the Specialist and the other Salesperson The Specialist needs to provide value to the other Salesperson

Seal Specialist Financial Considerations

Stand Alone Specialist $600,000 Historic Seal Sales $180,000 Margin $200,000 Growth = $60,000 additional margin $400,000 Growth = $120,000 additional margin

How much is that worth? : $50k Salary + Split Growth Margin ???

Internal Specialist Salary + Override

Steps to Implement Seal Specialist Strategy-How to get there

1. Identify the Territory1. RAD Segmentation based on Opportunity2. Develop Target Accounts

2. Define Seal Specialists Duties- to all stakeholders

3. Communicate Duties and Responsibilities to all stakeholders

4. Train the Specialists: Process and Equipment

5. Empower the Specialist to make decisions on Seal issues

Distributor Seal Specialists Strategy Identify New Project Opportunities

Review Seal Product Opportunities for Equipment Proposals Seals, Bearing Gard, Coolers, Reservoirs, Bulk-Tite, etc.

Pumps, Mixers, Rotary Valves, Vessels, etc.

Identify Upgrade & Maintenance Opportunities

Build Relationships- Internally, Flowserve, and Users

Track Opportunities- Prop and Quote Log, Communicate Needs w Flowserve

Increase Market Share

Increase Income

Selling Seals-Arm the SpecialistHistoric Flowserve SE Toolkit

TOOL BOX

8’ CALIPERS DIAL OR DIGITAL

6” SCALE

12” SCALE

DIGITAL THERMOMETER GUN

OMEGA LABEL TEMP LABELS

12’ TAPE MEASURE

8” ID SPRING CALIPERS

8” OD SPRING CALIPERS

BLUEING OR DRY ERASE MARKER THREAD SEALANT – LOCTITE

PST567 SNOOP OR SQUIRT BOTTLE OF

WATER AND SOAP O’RING LUBE – KRYTOX PAPER TOWELS RAGS MAGNIFYING GLASS O’RING REMOVAL TOOLS WHITE OR YELLOW MARKING PEN DIGITAL CAMERA NOTEPAD AND PENCIL PPE

Specialist Strategy Summary

Seal Specialist Program is Custom to every distributor Not one size fits all

Creates Focus on High Margin Product

Creates End User Value Add for Distributors

Creates Opportunity for Allied Products

Builds Towards “Trusted Advisor” Relationship

Keep Organization and Users Up to Date on Latest Developments

Streamlines Mechanical Seal Activity

Provides Planned Approach to Market Measure, Monitor, and Improve

Frees Up Other Salespeople to focus in other areas

Creates Teamwork through Collaboration

Questions/Comments

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Thank You

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