$30.00 Oil, Should I Stop Vertical Selling?

December 17th, 2008 by

This week the TD Bank warned that oil could go as low as $30.00 per barrel.  As a sales person who focuses on the oil & gas sector this is not great news.  Should I stop vertical selling?  My recommendation is you get more focused on vertical selling in the tough economy if you want to make your sales numbers.  Let’s take a look at Husky Energy as an example, they are reducing capital budget from $3.6 billion to $2.6 billion.  The first point is they are still spending $2.6 billion, the second point is they want to spend the additional $1 billon as soon as the market finds bottom and starts to move in an upward trend.   Listed below are some vertical selling strategies the can be used at Husky.

1/ Deep and Wide Selling for Budgeted Projects – Do you know what projects are funded?  Do you have the contact names of the funded project owner?  Do you know the IT people that are supporting the funded project?  Do you know the partners involved in the funded project?   If you can not answer yes to all of these questions you need to pick up the phone and get the answers.   Use your existing network of contacts to get referrals to new contacts that are responsible for funded projects.

2/ Prioritize Next Steps for Cancelled Projects  In the case of Husky they are going to spend the cancelled budget money as soon as the economy starts to trend upward.  Prioritize the projects that have been cancelled into categories of projects that are most likely to come on line first, and keep selling these projects owners.  When these projects come back online they will move quickly, and you will want to be in a position to take advantage of the opportunity.   

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