Life cycle cost analysis as a tool for industrial sales: lessons from two industries in India Subcon

Abstract: Industrial selling is considered to be one of the highly challenging tasks and sales personnel are exploring new strategies and tools to stay ahead of the competition to achieve organizational objectives. The study has focused on adding to the academic knowledge of the use of an innovative and creative sales tool to enhance the performance of the function. For this purpose, with the professional experience of research team members, the use of Life Cycle Cost Analysis (LCCA) is taken into the account as the tool. Though the LCCA is generally accepted as an instrument used by organizational procurement departments, it has been observed that there is a strategic and functional importance of academically studying the role of the during the industrial sales process, how it has been utilized during the interaction with various members in the organizational decision-making process and the role of the other internal departments in applying it. It was our utmost faith, it would be an interesting and insightful area of academic exploration while addressing relatively considerable the drought in academic studies on industrial sales. The topic was selected based on the researchers’ previous experience followed by thorough literature research in identifying the knowledge gap on the topic. The empirical data collection was carried out over two industries, namely, Protective Coatings (Industrial paints) and Luxury bathroom fixtures and fittings in India Subcontinent. Data was gathered using semi-structured interviews with sales professionals who have been selected based on the researchers’ personal contacts. The gathered data were analyzed using qualitative techniques.  The study showed that the LCCA plays a significant role in different stages of the Industrial sales process as a sales tool and it has helped the sales personnel to a greater extent during their interaction with various members of the organizational buying unit. Unanimously, it was accepted by the members of the sales department that the other departments are instrumental in the effective use of the LCCA. The LCCA is a tool that can be utilized in the industrial sales process and that other industries can use as well. The idea might be used by sales teams in other companies, such as those that build bridges, railways, and roads, recycle, enforce traffic laws, manufacture building materials, and so forth. The study found that LCCA is used by enterprises as a tool in the industrial sales process. In the Presentation and Demonstration phase of the sales process, the instrument is heavily utilized. The sales team's satisfaction with LCCA has increased due to its proactive role in lowering DMU objections.