Fundamentals of Selling 13th Edition by Charles Futrell

Exercise 32

Frank's Drilling Service specializes in drilling oil and gas wells. Scott Atkinson, one of its salespeople, was preparing to contact the drilling engineer at Oilteck, an independent oil company. Scott has learned that Oilteck plans to drill approximately 12 new wells in the next six months.
Scott estimates that each oil well will require a drilling depth of approximately 10,000 feet. The drilling service the company currently uses charges 90¢ a foot, plus $1,200 per hour for personnel to operate the equipment. The service takes about 16 days to drill each well.
Frank's charges $1,200 per hour for personnel, and its costs are $1 a foot. Scott believes his drilling crews save customers time and money because they can drill a 10,000-foot well in 12 days.
Using the above information, develop a value analysis that Scott could use to sell to his customer.