Thoughtful Thursdays - Stuck with entry level pricing?

Many new business owners are so anxious to make sales they set aside sound business management practices and sacrifice price for revenue. In some cases the need for cash flow is a driver, in others it may be thought that the a price concession will be a strategically wise decision. Whatever the reason for the concession,eventually you want to quickly get prices up or the consequences may be less than desirable.

I was very pleased to hear recently that a client of mine successfully increased prices. They overcame the fear of losing the customer and proposed a plan to ramp up prices over a reasonable period of time and the proposal was accepted. If this sounds too good to be true, it may have been if they had not first planned their strategy objective and tactics for the increase.

First and foremost was the task of reviewing their operations processes and determining the true cost of delivering the products and services. As is the case with most micro businesses, the owner/operator is responsible for many of the process steps, What is important is to assign responsibility for each step from the business owner's point of view. The step may be an administrative function, research, contracted help or any number of job descriptions. Once the responsibility is assigned. cost out each step based on the going rate for each of those functions.

When it is all added up, a more accurate cost is determined. Applying the appropriate mark-up gets you to the new selling price.

When one is able back up the reasons for a price increase the easier it is to implement. Knowing your cost of operations is the first step.

The worst case is that you may lose the customer, but if it is not profitable, is it really a loss? The best case that the customer sees the value in dealing with with you, remains loyal and your business is profitable.

Don't fear the challenge of increasing prices when your costs go up, be energized and rise to it. Your business is depending on it to survive.

Good selling,

Richard

Thoughtful Thursdays - Social media and customer service

Do you know what is being said about you online? I had an experience last week that I felt needed to be addressed and did not know exactly how to reach the right person - the who would care and be in a position to take action.

I have heard and read of several instances where people have been at their wits end when it comes to customer service only to be rewarded by using social media a the venue to express their dissatisfaction.

I am not sure of the numbers,but am inclined to believe that most large firms are tracking what is being said about their companies online. It makes good sense to to do it and better sense to have a team in place to address the complaints as they come up. We all know how fast news of a bad experience can travel, but do we really understand the sheer volume of people it can reach so quickly.

I had the good fortune to attend the home opening game of the Toronto Maple Leafs last week. In past seasons there was a team of ushers in place at each entrance to the arena seats. In  many cases the teams had been in place for years and knew the regulars my face if not by name as well. Part of their function is to keep people from entering the arena area while play is going on and guiding them to their seats if they do not know where they are located. They would also know if people were in the incorrect seats and quickly rectify the situation.

For what ever reason, this particular evening, their did not seem to be anyone in charge of the entrance. There was an usher present, but the level of service offered was obviously lacking. It was only a matter if time before people were entering the seating area while play was going on and adding to the congestion, they did not know where they were going. The long and short of was that people had to stand while other were finding their seats and in on instance, seats were already occupied. The end result is that sight lines are blocked for unreasonable lengths of time, making for a less than enjoyable experience.

I decided to voice my disatisfaction on a social media venue using the appropriate has tags and wondered if anything wouldcome of it. Two days later I recevied an email asking for some clarificaiton about my experience.

Here is the end result:
"... The manager of event personnel will actually be sharing your case at our ushers’ pre-shift meeting on Saturday and it will be a teaching point for our entire team about maintaining a winning experience for our fans going forward..."

As a customer, I am pleased with the outcome. As a sales professional I am encouraged to know that responsive customer service remains important.

Social media is one way you might be able to access the people you need to, if you use the right approach.

Putting the show on the other foot, is also a way for your customers to access you.
Good selling
Richard

Thoughtful Thursdays - Simply put...

Sometimes there is no reason to use different words to say what has been said before, because it just does not add value to the statement.

Today's thought is concise and to the point. Reading and reflecting on it may cause you to review on your sales approach.

"If you can't explain it simply, you don't understand it well enough."

Albert Einstein

Good selling,

Richard

Thoughtful Thursdays - The unhappy customer

You have probably found yourself in the unfortunate position of being the unhappy customer from time to time. If the degree of dissatisfaction was high enough you probably asked your supplier to resolve the situation. Do you recall how you were taken care of? If you are still dealing with that business, the resolution must have been more than satisfactory.

If you are still purchasing from that same supplier, they are to be congratulated for retaining your business.

Thinking back to that situation, how did your supplier react? If you put the show on the other foot, would you be as successful resolving the situation when one of your customers is not happy with you?

Here are a few tips that may be helpful when you encounter an unhappy customer.

1. Listen to them and be interested in what they are saying.
2. Do not interrupt, let them say what is on there mind.
3. Be sure they are finished before you respond.
4. Be empathetic, recall how you felt when you were the unhappy customer.
5. Do not take a defensive position when responding.
6. Try to quantify their loss.
7. Understand their position, and ask how the situation might be rectified.
8. Worth repeating is to listen and not interrupt.

Do not fear the unhappy customer. View it as an opportunity to review your processes with the end result being better service for all your customers. Be sure they know that as a result of bringing the situation to light, all your customers will benefit.

The unhappy customer is not the end of the world and does not mean you will loose them. In fact, depending on the way you handle the situation it might solidify your relationship with them.

Good selling,
Richard