Thoughtful Thursdays -

We see competition every day in almost everything we do. Whether it is purchasing necessities of life or deciding on how to use our discretionary budget. Competition keeps us on our toes.

We run across situations where the competition may be much larger and established. When starting a business it is often one of the most common obstacles to overcome. How do you compete with the big guys?

When you run into that kind of competitive situation think about your own buying habits. Specifically identify the suppliers you patronize who are not the big players. It could be the corner store, an independent garage, or any number of privately owned retail outlets.

Once you have this list, make another stating the reasons why you do business with them instead of the larger alternatives.

If my suspicions are correct, the reasons for your loyalty will be related to service or convenience. It will be due to a more enjoyable buying experience. The factors that affect the experience can be numerous, but in my experience the word "enjoyable" keeps coming up. You like dealing with them.

Your business can compete with the big guys. It may not be on total revenues, employee count or physical size of facilities. If those are the most important factors when your customer makes a purchasing decision, you are not likely going to get the business.

If your prospects are looking for the same characteristics demonstrated by the smaller suppliers you deal with on an ongoing basis, you can be superior and compete very successfully. It has been said many times by many people - bigger is not always better.

Good selling,

Richard

Thoughtful Thursdays - Is time your friend or foe?

In recent weeks I have experienced a common point of discussion in meetings with my clients.  I would like to share it with you today.

It is the age old issue of running out of time. A colleague says, and I agree, that it is endemic to new business owners.  I would also take it a step further and add that at some point everyone experiences the feeling of having too much to do and not enough time to do it. Time becomes the foe rather than friend.

Some seem to be able to achieve an incredible volume of productive activity in a given time and others are overwhelmed and become paralyzed.

It may be that your expectations of what can be accomplished in a certain amount of time are unreasonable. This can lead to over booking yourself and the result will be that you are not able to cross every task of your list. You might benefit from reviewing your processes and re-mapping them to determine total effort and duration required.

You may be allowing more than enough time, but distractions cause delays. It is worthwhile to analyze the source of the distractions and put helpful routines in place. As an example, you may want to block off parts of your day for uninterrupted work. During that time you do not answer the phone or take other meetings. Stopping and re-starting can be a real time eater. This time is dedicated to a particular task. If you do this, you want to schedule times when you check voicemail and return calls. Working from a home office requires added discipline to minimize the effect of the numerous distractions that inevitably surface on a daily basis.
Events not in your contol are more difficult to address as they often cause a well timed process to be compressed. Depending on the root cause, you may be able to negotiate for additional time and it is worth having that discusssion.

By adopting routines that work to put you in control of your time it can turn it into a best friend. Time does not have to be your foe if used wisely like any other valuable resource.

Good selling,
Richard

Thoughtful Thursdays - The other price objection

Today's thought is about the other price objection. Not every business will face this price objection, but it is worth discussing, especially if you submit price quotations and proposals.

This objection may not be verbalized yet almost always results in loosing the business.

You work hard determining the needs of your potential customer and establishing the value of your products/services. Everything is looking favourable and you are ready to prepare and submit your quotation.

If you look at the accompanying image, at first glance everything looks okay, but upon closer examination something just is not right. Graphic artist M.C. Escher is famous for his so-called impossible structures simplified by this impossible triangle.

The objection I am referring to is the opposite of the most common "Your price is too high."
It is "Your price is too low." The value that you worked so hard on establishing has been betrayed by a low price. The customer has decided that the products/services being offering can not be delivered for the indicated price.

You have heard the phrase "If it sounds too good to be true, it probably is."

Be competitive, not unbelievable.

Good selling,

Richard

Thoughtful Thursdays - Managing your prospect list

All your customers were once prospects. Without prospects there will be no customers. Yes we have heard it all before.

Today's thought is about managing  your prospect database. It is one thing to have a long prospect list and another to be working the list for maximum return.

Can you have too many 'hot' prospects? My answer would be yes, if it means your level of service is being negatively affected by the work load. Trying to be everything to everyone at the same time can be a risky and stressful way to do business.

One way to mange your prospect list is to grade including the following criteria:

• Sales potential, short term and long term
• Profitability of the potential business
• Probability of closing the sale
• Likelihood of the sale closing in 1 month, 2 months, 3 months or longer
• Where they are currently in the buying cycle

It makes sense to focus on confirmed high potential sales targets that have a high probability of closing in a short period of time. This information will also allow you to more accurately forecast sales.

Many times I have seen sales people spending too much time on low potential prospects. On the other side of the coin, be mindful of being seduced by the lure of a huge apparent potential with little chance of closing the deal. Make sure your information is sound and that the insights you draw are realistic.

Be wary of "Hopium" and "Happy Ears" as described in detail by author and sales expert Dave Kurlan.

Good selling,
Richard

Thoughtful Thursdays - A worth objection

During a recent client meeting I was asked two related questions: "How do you convince a prospect that the services offered are worth the investment?" and How do you approach the skeptical response?"

A bit of background first. The prospect belongs to the target market identified by research conducted. The prospect also confirmed a situation where the service offering might very well be part of a solution to their needs, yet they were still not convinced.

My response to the questions came in the form of two of my own questions:

1. Can you provide a detailed list and have you considered all of the prospects confirmed needs?
2. Have you done the math to quantify the benefits?

The point I was making was that sometimes we take for granted that our prospects will see the benefits without having them explained in detail. We think they will join the dots and make the leap to understanding how our products/services will return much more than the original investment.

It is not always a reasonable expectation. After all, it is likely they are not experts in your field and that is one reason they are talking to you.

It is reasonable to expect to encounter an objection if your prospect is not clear about how your offering is going to address their needs.

Today's thought is about being a good consultant. Get to know how your prospect and their business. The skeptical response usually cones as a result of not clearly articulating the value you are offering. Ask a few more questions - find out where the disconnect is and address it. Be patient and listen closely before you respond.

This wraps up Thoughtful Thursdays for another year. Thank you for tuning in and all the best for a successful 2012.

Good selling,
Richard

Thoughtful Thursdays - Is it okay to ask for more?

The other week I happened to catch a  few minutes of the 1948 version of Oliver Twist, enough to see the famous "Please sir, I want some more" scene.

At the risk of being perceived as unsympathetic to the grim situation Oliver found himself in, let me make myself clear that there is absolutely no disrespect intended.

It starts out innocently - a small revision here or a payment extension there. Some call it scope creep. We are happy to do the favour as it seems harmless enough and what the heck, it keeps the customer happy. You bet it does, wouldn't you be happy getting more for less?

Before you know it the requests become more frequent and the favours larger. By that time it can be too late. The concessions you have made in the past have gone unnoticed and the customer now expects that as routine behaviour.

Be like the brave Oliver Twist - it is your turn to ask for more. More respect for the way you conduct business. More dollars for the additional value you bring every day.

Go the extra mile and do the favours, but make sure your customer knows what you are doing. Sometimes it is advisable to toot your own horn if it gets you the right kind of attention.

Be mindful and respect your time and your customers will too.

Good selling,

Richard

Thoughtful Thursdays - It's that time of year again

As the calendar year draws to an end, there is no better time for many businesses to review performance versus plan for the previous 12 months and confirm objectives and strategies for the next 12 months. Enjoy your successes and set the plans for continued growth.

For owner/operated or micro businesses it means exchanging the tactical mindset of day to day operations to strategic thinking of a business owner. Using the information gained from the field during the past year and developing insights to create plans and objectives for the next.

Block off an adequate amount of time and do not let anything change that schedule. To avoid being distracted you may want to do this outside of your office, especially if you are home based. I believe it is also a good practice to ask peers for objective feedback.

Respect the exercise, each part of your business, marketing, operations and finance, are depending on you to set the course for sustainable growth.

Maintain sight of the vision you have for your business and ensure that your objectives, strategies and tactics are working in tandem to achieve that vision.

Good selling,
Richard