Thoughtful Thursdays - Say Thank You

It may sound basic, but when was the last time you thanked your customers in person?

For some businesses, the summer season can be a slower time for sales. There is no better opportunity to thank your customers for their ongoing business. Also let them know you are looking forward to continue supplying their requirements in the future.

As long as you are there, take the opportunity to confirm the timing of the next requirement. This will help you with your own planning and insure you are on track to meet their needs.

Good selling,
Richard

Thoughtful Thursdays - On Negotiation Part 3

Last week I discussed what information you might want to have before going into a negotiating meeting with your customer. Just to be clear, we are talking about a sales negotiation.

You have what you believe to be the required information for your meeting- what next?

I suggest planning out your approach is a good place to begin. Set your objectives and be ready to accept the order as well as prepared to walk away if you reach a point that goes beyond your 'walk line'.

Preparation is essential for your meeting. Anticipate objections, be prepared to discuss them and get back to 'yes'.

The goal is to arrive at an agreement that satisfies all parties involved.It is a process of give and take, be prepared to be flexible and at the same time firm with items that are not negotiable.

I recall an occasion where the company I was working for had a mandate to reduce the days to pay by 5 days on average for every customer who was paying beyond our standard terms of 30 days. As you can appreciate, this was not received well. The value to our business was huge, and was viewed by most of our customers as unfair.

It was a point that was non-negotiable for us. At the same time, we were not prepared to reduce prices or offer any discounts for early payment.

By being prepared we were able to address most of our customers' concerns and I am happy to report we were successful in achieving our mandate.

In some cases it came down to shipping goods to line up with when the customer customarily issued cheques. In others it was to ship more often in less quantity to reduce the exposure and ease their cash flow bottlenecks. we would also offer our services to help them reduce their days to pay.

The point here is that there are many ways you can add a lot of value and thinking outside the normal scope of the supplier/customer relationship can often provide you with all the value you need to maintain your profitability and most importantly keep your customer.

Challenge yourself and come up with creative ways to close the gap and proceed confidently into you meeting.

Accept that you may have to walk away from some business if it does not make sense to continue on, but do not walk away before exploring all your opportunities.

Anyone can sell on price, a successful professional sells value.

Good selling
Richard

Wise Wednesdays - The 3 Page Solution

“One can acquire everything in solitude - except character.” -Stendhal

One exercise that has served me well, both in business and in life, is what is referred to as journaling. I don’t do it every day but I do it when I have a burning question, dilemma or situation that is pressing.

Here’s how it works. First thing in the morning when you wake up go to the kitchen table (or any quiet space) and make sure there is no music or distractions. Write your question or dilemma at the top of a blank page.

Now write whatever comes to mind without stopping until you’ve filled up 3 pages. If you can’t think of anything write “I am writing” or “this is silly” etc. Do not censor your responses – no one has to read this but you. You can even rip it up when you’re done. Don’t edit or cross anything off. The key here is to keep your pen flowing.

I find by the time I am on the third page I have written some very insightful and sometimes surprising responses to my question -- always truthful.

Speaking of writing in peace and quiet I will be on holidays for the next 3 weeks and not writing any blogs.

Enjoy the summer.

Cheers,

Dominik

Thoughtful Thursdays - On Negotiation Part 2

Last week I talked briefly about negotiation and why you might find yourself in a situation where you need to negotiate with a prospect or customer. In my experience the bottom line is that they are not satisfied with the proposal and are offering the opportunity to save the sales.

Before you enter any negotiation, it will be to your advantage to be as well prepared as you can be. What is it that you need to know? I asked you to make a list and I would do the same. Here are some key pieces of information that I find essential to have before going into any negotiation.

1. Is your customer/prospect comparing apples to apples? In other words, are you on an level playing field with your competition? Are the product/service offerings equal in value?
2. Are you willing to walk away from the deal?
   
3. At what point you will be willing to walk away from the deal?
4. Crunch the numbers and determine when the sale will not meet your profit expectations. This may be tempered by the strategic importance of making the sale.
   
5. Calculate a dollar value on the gap that is keeping you from closing the sale.
6. Determine alternate ways to make up this gap other than dropping your price. Can you offer additional products and/or services? Will increased volume put you in a better position to work on price? You are looking for ways to add value equal to or higher than the gap your customer perceives.
   
7. What questions do you need to ask?
8. Will you be meeting with the decision-maker?
9. Are you clear on your expectations?

I look forward to adding this list should you wish to leave a comment.

Once you have the information you need, the next step is to plan your approach and that will be the topic for next week.

Good selling,
Richard

Wise Wednesdays - $50,000

If I gave you $50,000 to help start your business would you know what to do with it? Or would you spend it all only to realize you’ve made a mistake?

My experience is that many people want more money then they are prepared for. A case in point: I had a client ask for and receive $50,000 to finance a restaurant business. Within nine months they had to close their doors. Another of my clients asked for $40,000 but could only secure $10,000 for his high-tech company. His company today is thriving. He is now ready to secure a loan for a much higher sum.

Dream big. Start small. Think in increments.

Today the average start-up cost for new micro businesses is under $10,000.

Look around you and see what you can do before asking for more money. There is a saying, “you have everything you need to take the next step.” You may be surprised to find out that being resourceful and action oriented can go a long way.

Cheers,

Dominik

Thoughtful Thursdays - On Negotiation

In a perfect world your customer will understand the benefits you and your product and/or service brings to the table. They will also be able to equate these benefits to actual dollars and clearly realize how much they will be saving by dealing with your company.

We all know the world is far from perfect and there is also the competition to factor in. This brings us a something known as negotiation.

Over the next few weeks the topic for Thoughtful Thursdays be the process of negotiation.

In my experience the need for negotiating comes when the customer wants to do business with you as a result of your stellar selling skills, but your proposal as it stands is not acceptable. They are giving you a chance to save the deal and your success will depend on your ability to negotiate.

So what is it that you need to know before going into your next meeting? I will make a list and talk about it next week. Why don't you think about it as well and we can compare lists.

Good selling,
Richard

Thoughtful Thursdays - Your Value Can Help Your Customer Sell

When thinking about the value your product and service brings to your customers don't sell yourself short.

In many cases what you bring to the table can actually become a selling feature for your customer.

For example, an IT consulting firm providing a secure back up system for their customer. This gives them peace of mind and untold savings if there should be a catastrophic systems failure.
Wouldn't that be a good selling feature to their customers as well? Being able to say that their data is safe and secure can be passed down thought the entire supply chain.

Think of ways that the value of your product/service offering can become a benefit to your customers' customers as well. It may just be the difference they are looking for to swing the balance in your favour.

Good selling,
Richard