Effective Value-Selling of Capital Equipments

Capital equipments by definition are those which are used for manufacturing another set of products or components. Some examples of capital equipments may include Machining Centres, Special Purpose Machines, Lathes, Grinding Machines, Injection Moulding Machines, etc.

However the above conventional definition is partially true. Any investment which needs provision of large capital outlays and termed as Capital Expenditure (Capex) can belong to the above category. This may include ERP Solutions, AC Chilling Plant; Backup Supply through DG sets, Concrete Pumps, Material Handling equipment etc.

For example a salesman dealing in machining centres (VMC & HMC) tends to focus on features like no of axes, the stroke length, the spindle speed, Surface Feet per Minute, the feed rate, the rapid stroke, the cycle time etc.

When a salesman tries to sell his product on the above technicalities, he is essentially trying to sell on features. Sometimes he will unconsciously get the competition products into discussion by telling the technical superiority of his products vis-à-vis the competition. Technical expertise though necessary, may not be sufficient in selling capital equipments for the following reasons:

How selling capital equipments is different than conventional selling?

  1. High Investment: The investment in capital equipments is generally high which may start at Rs. 50 lakhs upwards.
  2. Technical Complexities: Due to the technical complexities, it is not easy for a customer to say that product A is necessarily better that B. There is a possibility that an advanced technology may not have been percolated enough in the market.
  3. Multiple Decision Makers: There are a number of stakeholders which include the Production Head, Maintenance Head & CFO. Sometimes a committee will be formed for evaluating different offers which may even consist of external consultants. Being a Capex investment the decision making happens not only at the branch/factory level but also at the Corporate Level which may even involve the CEO, Chairman, Board of Directors etc.
  4. Commercial Complexities: Beyond the price comparisons, the offers need to be evaluated on technology, warranty, LD, spares, Installation and commissioning schedule, bank guarantees etc.
  5. Long Sales Cycle: Considering the high capital expenditure with its associated risk, the prospect also needs to deal with banks and financial institutions for funding which in turn leads to longer selling cycle. Considering the above, today’s salesmen need to make a paradigm shift in their selling approach from selling a product ( based on technical specifications, also called as features ) to selling a solution which is decided by the customer’s business environment, his critical needs, profitability parameters, cost- per-component etc .


  1. How do I know more about the above topic? - We offer Customized training programs which are of 2-3 days duration which will show the effective process of capital equipment sales. The program is recommended for a group size of 10-12 participants.
  2. Why do you call it a Customized Training Program? - Each customer has a unique training requirement and the customized training program is developed based on : - Your Business environment, your product range, price positioning, competition etc. - The participant profile - Areas of critical concerns and expectation from the management. - We prefer to visit your factory and understand the product range and other details to get a deeper understanding. - Based on the above we design and develop a tailormade solution for you.
  3. But my sales team is distributed pan-India. Bringing them at one location is not only expensive (in terms of travel cost & lodging/boarding) but also affects my business for those 3 days. - We can offer On-Line training with video based interaction involving real time interaction of the trainer with all the participants.
  4. Who will be the trainers? - We have an eminent panel of trainers with an average experience of 25 years in the industry. ( refer faculty details)
  5. What if we have just 3-4 people? - For small groups we recommend an on-line web-based training.
  6. Can you help us improve our business from the current level to the next level? - It is done through consulting, coaching and mentoring.
  7. Any low-cost solution to start with?
    - You can refer by Rajan Parulekar, Managing Director of PARADIGM TRAINERS PRIVATE LIMITED. Contextual Selling has been considered as a definitive guide for Capital Equipment sales. ( What do readers Say, Amazon, Flipkart)

Consultative Selling is essential in High Value Project sales which include Effective Value Selling of capital equipments.

For more details : rajan@paradigm-info.com, www.paradigm-info.com, 080 23493661/23597930