Thoughtful Thursdays - Is it worth it?

Today's thought is about the age old topic of price versus quality. I will start with a quote from many years ago that has helped  me to remain grounded when the subject comes up.

"It's unwise to pay too much but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do. The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run. And if you do that, you will have enough to pay for something better!" John Ruskin (1819-1900)

Price is simple - dollars and cents

Quality can be interpreted in several ways, encompassing many things. In every case, a sale most likely to be made when the price is equal to or less than the perceived quality of the product. No one wants to overpay.

From a sales point of view one of the most common objections we face is typically to do with price. Sometimes it is legitimate, but in most cases the prospect is testing us. How hungry are we for the order and are we willing to sacrifice profit margin at the expense of the value of the product/service we are representing.

On the other side of the coin, at what point is the risk John Ruskin talks about too high before the potential customer decides not to buy?

When you find yourself in a situation where the easy way out is to compromise on price, don't do it without giving due consideration to the consequences.

• The value of the product/service is immediately lowered to that point
• Decreased profit margins
• Ultimate quality may be at risk
• Potential of customer dissatisfaction
• Continuing profit erosion as a result of lowered value

Is it worth it?

Good selling,
Richard

Thoughtful Thursdays - Assume nothing!

It makes perfect sense... to me anyway.

 

Just because it makes perfect sense to you does not mean that your prospect or anyone else for that matter shares your interpretation.

Today's thought is about assumptions. They make life convenient and can provide what appear to be good reasons for not getting things done.

 

Here is a list of assumptions when taken at face value that will inevitably lead to a longer sales cycle or worse, missing out on an opportunity. You can likely add to the list from your own experiences.

• They understand what I said
• They know what they need
• They will be too busy to talk to me
• My products/services are too expensive for them
• They are not my customer
• I am speaking to the decision maker
• I know what they need
• They are not interested
• They don't have the money
• Only the owner makes that decision
• They are the experts
• They can not help me

Before planning your next step ask yourself this: "How do I know?"

Good selling,
Richard

 

Thoughtful Thursdays - Managing your sales time?

As mentioned previously, a common subject of conversation with my clients is the matter of having too much to do and not enough time to get it all done. We all are subject to this in varying degrees and I have written several times on the topic.

Today's thought deals specifically with managing sales call time efficiently to maximize the return on your time investment.

You have targets in various stages of the sales cycle. Taking time to assess the following may help you determine where your time is best spent.

• Total potential sales volume
• Total available sales to you
• Probability of closing in the next 1, 2, or 3 months
• Value of the order you are working on

With this information you can determine a level of urgency for each your top targets. Obviously you want to spend the majority of your available time working on the potentials that will yield the highest sales in the shortest period of time.
By reviewing your targets and progress on a regular basis your process will become more efficient.

Good selling,
Richard

Thoughtful Thursdays - Getting past the gatekeeper

Sooner or later we all encounter the obstacle commonly referred to as the gatekeeper. Today's thought focuses on overcoming this obstacle.

First off, do not label these people as gatekeepers, they are potential customers and depending on your approach, may not want to refer you, and we all know the importance of referrals, right?

With that in mind, establish rapport, don't immediately ask to speak to someone else. It may be perceived as dismissive, most certainly an undesirable behaviour. Show respect for the person, I reiterate, they are also your customer and might be one of the most important people in your sales cycle.

Do not assume they can not help you, think the opposite; without them you are lost.

Your first sale is yourself. Be successful at this level and look forward to a shorter sales cycle.

Good selling,

Richard

Thoughtful Thursdays - Tips for your targeted email sales campaign

A targeted email sales campaign is a relatively low cost approach to reach a significant number of your prospects. It sounds simple enough, yet many do not produce expected results.

I client of mine recently ran a very successful targeted business to business email campaign. During a recent meeting he shared with me what he believed were key success factors and I am able to share them with you today for your thought and consideration.

1. Set clear goals for the campaign - Know why you are doing it in the first place
2. Know who you are targeting - Conduct your research first, remember we are talking about targeted campaign - a laser beam not a shotgun approach.
3. Hire a professional copywriter - Unless this is your profession, do not write your own copy. The success of your campaign depends on the ability of your message to engage and promote action.
4. Have and A/B test protocol for your message - Use what works
5. Predetermine how you will measure results - Tracking your results will help improve your next campaign. Consider using an email service.

In closing today, if you are planning to run a targeted email sales campaign, the chances of success are greatly increased when you have a clear plan to follow.

For your information my client's initial return on investment was approximately twenty fold.

Good selling,
Richard

Thoughtful Thursdays - A process to consider when looking to avoid wasting time

In recent posts the subject of time has been discussed from the point of view of being in control of your time and potential cost implications to a prospect for a delaying decision.

Time is arguably one of your most valuable resources and today's thought focuses on how you might go about saving some.

When was the last time you took a good look at your sales process? Mapping it out is the first step to discovering how and where your time is spent. The goal is not to produce a detailed map as soon as possible, but to improve your understanding, identify opportunities for improvement and solve problems.

You have suppliers and inputs. Add work and you produce outputs that must meet customer requirements. The work is the process you want to map out. You may want to start keeping a log of your time and activities to be sure no steps are left out or taken for granted. Review of previous experiences is another source for this information.

Once you have a list of steps, add major decision points and any loops and support activities that may be part of the process. Take a look at the map as it is developed and walk through it to validate it and make any changes that are appropriate. At this point begin looking for things in your process that are done again.

HINT: LOOK FOR THE THE PREFIX "RE"

• Repeat
• Recheck
• Reenter
• Redesign
• Retest
• Rewrite
• Redo
• Return

These are the steps you want to examine in detail and potentially eliminate.

You can quantify your potential time savings by applying a timeline to the steps in your process. Some of the "re" steps e more worthwhile working on than others. When you do not have a definitive time for a particular step, take a best case and worse case approach. Use the best case as your target. The difference between the best and worst case is your opportunity for improvement.

Accurately mapping out your processes and follow up analysis can yield tremendous savings in time.

Good selling,
Richard

Thoughtful Thursdays - How can I be different from my competitors?

Differentiating yourself from the competition is often easier to say than do. Life is like that - doing is tougher than saying.

My own mantra is to do what my competition does not like to do. But what does that really mean and how do I find out what they do not like to do in the first place?

One place to start is with your existing customers. The fact they are buying from you indicates you have already established a competitive advantage. Your task is to determine exactly what that advantage is. In most cases the behaviour you demonstrate is transferable to your prospects. Your approach may need to be tweaked depending on the personalities involved, but the underlying behaviours will likely be consistent.

What has worked for me in the past is to be up front with the customer and ask them if they would be willing to evaluate your performance and how they measure it. This is part of gaining valuable knowledge on their individual needs. Based on their response you may be able to develop insights to how your competition measures up without actually asking the question directly.

Analyze the information you gather - ask yourself what it is telling you, read between the lines. Sometimes the answer lies in what is not said. The insights gained are the true value of the exercise and will help you understand how you stand out from the crowd.

You may be surprised that it is several little things that you do that add up to a big advantage. Whatever it happens to be, you are delighting your customer.

It may be that you return calls promptly, or send regular industry information that is engaging. Perhaps they do not hear from you frequently, but very regularly and when you do communicate it is always worthwhile.

Analyze the reasons for your successes and translate them to your new prospects. This will help you to differentiate yourself and stay ahead of the competition.

Good selling,
Richard

Thoughtful Thursdays - What does it cost to change suppliers?

All of the above are objections we encounter on a daily basis and can be captured in the two letter word "No".

The immediate internal response is usually "Why?" and back we go to the list of objections.

Today's thought is about a very real reason you may be on the receiving end of one of these objections when you are trying to dislodge competition.

Consider what it will cost your potential customer to switch to your product/service.

Here are a few factors that may help you to quantify the cost of changing suppliers. Once you have this information you will have added an essential sales tool to your arsenal.

• Administrative costs of setting up a new supplier
• Costs of adding additional SKU's
• Disposal of existing inventory
• Time to train staff
• Plant costs if trials are required
• Additional raw material costs beyond your product to run trial
• Costs of sampling if required

In fact, every part of a business may be affected when taking on a new supplier. I am referring to marketing, operations and finance. It can be a decision that is not taken lightly and can often manifest itself in a common objection.

Although price is always important, thinking about the costs of changing suppliers will provide further insights to the real cost. It will enable you to talk intelligently about time to recover those costs and focus on the longer term value by dealing with your company.

On the surface it  may not make sense to change. Take on the responsibility for understanding your customer's concerns and do the research so you can provide a viable response.

It is more than the your price that will make the difference.

Good selling,
Richard

Thoughtful Thursdays - More thoughts on time

Two weeks ago my post Is time your friend or foe? talked about modifying or putting new routines in place in order to have better control over the use of your time. In other words, doing something different to buy some of your time back.

I don't think I would be going out on a limb by saying that the majority of people are being asked to do more with less.What insights can you draw from this tidbit of information? You might be encountering objections based on a perceived lack of time to move your sales efforts forward.

I have encountered the objection myself: "Richard, we just don't have the time to test your product right now".  The gauntlet was clearly laid down and my challenge was to find them the time.

Obviously it was not as simple as adding an extra hour to the clock as the above image might suggest. In each case it required me to review and confirm the numbers. In order to advance the sales process I had to have a plausible story that would raise the level urgency of having our products tested. Based on previous experience, the call to action was not based the on short term costs of conducting trials, but the price they would pay in the long run by delaying them.

Good selling,
Richard

Thoughtful Thursdays - Battling with the big guys

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 control 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

Thoughtful Thursdays - Shortening your sales cycle

Today's thought is about shortening your sales cycle and finding the gold quicker. If one was to analyze their sales cycle and determine where the bulk of time is spent before closing, it is likely in the area of making connections with the right people. What if you could get to the right person faster?

Are you using all the resources at your disposal? Does your contact list include everyone you know, not just from business but personal as well?

Review and update your contact list. Make sure everyone you know is on the list. Before making contact with a prospect, mine your contact list and seek out the ones who might know someone at your prospect. You may be surprised with the results. We all know that once you have a referred contact name, the task becomes so much easier.

Give it a try.

Good selling,
Richard

Thoughtful Thursdays - mmm love that morning coffee...

...and I have three suppliers to choose from. So why is it that I favour one over the other two?

Comparing the three options, lets look at the product offering first. Supplier number one has a good selection and features individual cup brewing. Supplier number also has a variety of coffees to choose from and supplier number three at this point has one choice. In the morning they are all busy, so the coffee is brewed often. In my case having a variety of blends to choose from is not a big advantage as I am not a fan of flavoured coffees. Freshness and flavour are important as I drink coffee straight up. There is no clear winner here.

What about price? They are all in the same range. The differences are not enough to cause me to make this the reason for choosing one over another.

Okay, is it convenience? They are easy to access. The favoured supplier is actually the furthest from my office.

Reviewing product, price and convenience the field is level.

If you said customer service, you would be correct. But what part of the service tips the scales? It is not the speed of being served or completing the transaction. Without fail it begins with a cheerful and sincere "Good morning" with a smile. Add to that the parting "Thank you" and finish with "Have a great day, see you tomorrow." If I happen to miss a day they ask where I was. They make me feel like they want to have and appreciate my business - every time I am there.

It is all about the experience of the transaction that makes me a regular at supplier number two.

Do all you can to make your customer's experience enjoyable and the added value will increase the likelihood of loyal repeat business.

Good selling,
Richard

Thoughtful Thursdays - Tipping the sales scale in your favour

Last week I talked about about levelling an uneven playing field. Today's thoughts are on tipping the scales and creating the uneven field that works in your favour.

The list of examples from last week's post about levelling the the playing field is a good place to start when thinking about ways to secure and maintain your advantage. Most speak to value beyond what the products and/or services offer to your customer.

In today's competitive marketplace one is constantly challenged to find ways of bringing additional value to the customer. When discussing the subject with my clients I ask them to put themselves in the shoes of the customer and think about what characteristics they appreciate in a supplier - what would tip the scales in the favour of one supplier versus another?

• Bringing new business to your customer
• Knowing your customers' customer wants and needs
• Being knowledgeable about the industry your customer participates in
• Offering to help your customer in all facets of their business - sharing best practices

Taking off the selling hat and wearing the customer hat can be good exercise for identifying ways to tip the scales in your favour.

Good selling,
Richard

Thoughtful Thursdays - Feel like it is an uphill battle?

If you have never been faced with an uneven playing field, you must be new to the sales profession. We face the situation every day, your competition works hard to create it and it is your job to level it and then tip it in your favour

This competitive situation can be caused by any number of reasons and today's thoughts are about ascertaining them. Only when you know what is causes can you begin to mitigate them. Trying to level the field without knowing what is making it uneven in the first place can have negative consequences for your business.

Here are a some examples of what can contribute an uneven field.

• Customer service
• Terms and conditions of sale
• Comprehensive offering
• Price
• Availability of product
• Guarantees
• Warranties
• Response time
• Product quality
• History
• Reputation
• Relationship

As a sales professional it is your task to assess the situation and develop the correct strategy to make the field level. The most common reaction when encountering and objection is to counter with a price concession. This can also be the most dangerous - not only to your business, but to the market you are participating in as well.

It is important to know what you are up against before choosing your tools. In my experience there are few objections that can not be overcome. It comes down to whether or not you are prepared to do what needs to be done. In come cases it is better to walk away and go on to the next opportunity. You are not going to win them all.

Whatever action you decide on, be sure to have all the information first. Talk to the righr people and ask questions that will get you the information you need to know.

Next week: Tipping the scales it your favour.

Good selling,
Richard