The $72,000 Recommendation That Won a Customer for Life

When keeping the easy sale would have been easiest of all, Lloyd Gage’s engineers chose a harder conversation instead — and it changed the relationship for good.

THE SITUATION

One of the largest automotive manufacturers in Lloyd Gage’s territory was running 1,500 inserts a month through a Walter body-and-insert program — and living with recurring stocking disruptions to keep up with it. Every disruption meant expediting, downtime risk, and a production schedule at the mercy of insert supply.

Lloyd Gage is the largest Walter dealer in Ohio. Staying the course would have been the easiest recommendation to make — and the most profitable one.

WHY WE LOOKED PAST OUR OWN BEST SELLER

Instead, Lloyd Gage’s engineers ran a side-by-side trial: Dijet’s 6-edge HFM insert against the customer’s existing 4-edge Walter insert, on the same machine, running the same operation.

 

BEFORE — WALTER

Insert geometry:  4-edge

Tool life:  30 parts/edge

Supply:  Stocking disruptions

     AFTER — DIJET HFM

     Insert geometry:  6-edge

     Tool life:  45 parts/edge

     Supply:  Stable, disruption-free

 

“We’re the largest Walter dealer in Ohio. When we tell a customer Walter isn’t the right tool for their application, that means something.”

THE REAL COST OF THE RIGHT CALL

Moving the customer off Walter and onto Dijet cost Lloyd Gage roughly $6,000 a month — about $72,000 a year — in margin the Walter relationship would have carried. The team made the recommendation anyway, because 45 parts per edge and a stable supply chain were worth more to the customer’s production floor than any rebate was worth to Lloyd Gage.

+50%

TOOL LIFE PER EDGE

MARGIN GIVEN UP / YEAR

MARGIN GIVEN UP / YEAR

0

STOCKING DISRUPTIONS SINCE

The result

Moving the customer off Walter and onto Dijet cost Lloyd Gage roughly $6,000 a month — about $72,000 a year — in margin the Walter relationship would have carried. The team made the recommendation anyway, because 45 parts per edge and a stable supply chain were worth more to the customer’s production floor than any rebate was worth to Lloyd Gage.

“Lloyd Gage told us the truth even when it cost them the sale. That’s not something you get from a distributor — that’s something you get from a partner.”

— Plant Manager, Ohio Automotive Manufacturer
DRAFT QUOTE — PENDING CUSTOMER APPROVAL
Have a stocking or tool-life problem your current supplier can’t fix? Talk to Lloyd Gage.