Rethink Sales

Innovating Business Strategies in Changing Markets

Rethink Sales

From Crisis comes Opportunity

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” ― Winston S. Churchill

“Our most significant opportunities will be found in times of greatest difficulty.” ― Thomas S. Monson

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Supplier Circumstance

Let us explore the situation most oilfield suppliers find themselves in today.

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Lower the new normalsuppliers expectedto reduce prices & maintain profit margins into the future

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Cost cutting measureshave left sales organizations understaffed & in a catch-22 to increase sales with fewer staff and customer engagements

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Experienced sales professionals with established customer relationships are unemployed and their network is being un-utilized

Experience is idle

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for suppliers to increase sales without incurring significant expense.Skilled laborers are scattered after massive layoffs and are disconnected from employers now

No easy way exists

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have either become burdensome, too expensive or ineffective in our new market.New market calls for new rules.

Traditional business approaches

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Operator Circumstance

Let us explore the situation most E&P companies find themselves in today.

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Economics issueIn order to generate 10% unleveraged rates of return, U.S. basins need $104 oil and $5.50 gas – WD MCK Nov 2016

Operators will continue to apply downward pressure on suppliers to lower prices into the future to protect margins.

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Blacklisted from capital

“They’re hoping to hang on until the next miracle arrives.” –naked capitalism

Now that fund availability has dried up, many E&P companies are essentially locked out of the capital markets. They have to live within their means or go under.

Traditional capital sources have been remaining bearish on the sector and have reduced exposure and risk due to oversupply and general consensus that commodities will remain lower for several more years.

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Change is InevitableGrowth is Optional

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Way Forward

“Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real Estate. Something interesting is happening.”

- TechCrunch, March 2015

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Our Solution

Reduce Costreduce the cost and risk of hiring

additional in-house sales employees and skilled laborers,

while lowering engagement and operating costs by providing on-demand access to products and services in a convenient manner

Increase Revenueput salespeople in front of

potential customers who aren’t otherwise economical to reach

& offer on-demand skilled professionals to execute

projects

Leveraged Approachleverage the shared economy

model of on-demand resources to help companies expand

without need of extensive capital

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What is on-demand economy?

Access > Ownership

The on-demand economy (also known as access economy or shared economy) is a business model in which companies fulfill consumer demand on the basis of

immediate access to goods and services.

You just rent a thing temporarily rather than buy it permanently because it’s inexpensive and convenient. You hire freelancers for short-term projects instead of full-time workers or contractors.

Costs Decrease The model implies that costs should always go down, while access to products and services become more efficient, convenient, and intuitive.

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Change Challenges

Vision and Out-of-The-Box Thinking – Wrong leadership or culture

Loss Aversion – Fear of loss causes missed opportunity

Failure to Adopt – Unwillingness to change

Failure to Engage – Lack of commitment to a new model

Old Habits Die Hard – Sticking to age old business models

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Change Goals

Align costs with current “new norm” oil market

Cut engagement, selling and burden costs

Increase sales presence, skilled labor on-demand, not on the books

Cut personnel cost while creating an opportunity for personnel

Transition to a network platform process without losing safety of current approach

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The Disruptive Model

The competition is so severe that companies are forced to improve their operations and

value chains basically on a daily basis.

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What does it mean for me?Sector Early Entrants Potential for Disruption

Oil & Gas Services

Accommodation

Office Space

Automotive

Medical Equipment

Construction

Fine Art

Audio & Video Equip

Luxury Apparel

Wellsite.com

Airbnb

Regus

Lyft, Zipcar

Cohealo

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

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