Power Up - Marketing and Selling for Greater Success

Tools or tension?
I sent out my Monday Morning Motivation recently on the benefits of using a snowblower versus a snow shovel when there is over a foot of snow. The message is obvious but businesses continue to use outdated marketing tools, and customer service processes.

The obvious is not often obvious since you get so close to the problem you don't see the solution. The old - you cannot see the forest for the trees concept.

This issue arose recently when I was helping my son on anchoring landscape timbers. The rebar we wanted to anchor the timbers required that we drill a hole through the wood. The drill was unable to do the job. We questioned our strength - do we just need to push harder on the drill since the wood was treated? Or, is the drill wornout and needs to be replaced? Or, is it as simple as needing a new drill bit. The later was the case and once the new bit was purchased the job was done in no time at all. Message, once again, when frustrated with the current process, be it your marketing, sales, or customer service - get a new tool and see if the problem is solved with less strain on the organization.

Take care and keep innovating.

Whose "Black Friday" is it?
The day after Thanksgiving this year was widely advertised as Black Friday. Why would one call a day of supposedly happy shopping and discount prices "Black Friday?" Of course it is due to the fact that on that day the retailers will make a profit and some will cross the line from a dismal year of sales to a profitable one. But for the retail customer the days should not be viewed as a dismal day which "black" denotes. The retailers are so self-focused that they are talking to themselves versus the customer. Why not talk in exciting terms the customer can relate to rather than industry jargon? Celebration Friday - Happy Friday - Sales Galore Friday, etc. all have a better connotation than "Black Friday."

The broker never showed up after the sale

Our neighbor is interested in selling his house in this crazy market and searched out a good broker to interview to see if he was the right fit to get the listing. The broker showed up on time, gave a very impressive presentation, showed how the homeowner could save money on the commission, and suggested some fast selling strategies that did not entail lowering the price of the home. My neighbor was sold and agreed that the broker should send him some paperwork so the process could continue.

The neighbor waited, and waited, and still did not get the paperwork. The time and effort put in by the broker was squandered. Why make the sales call is you are not going to follow through on the sale?

Rebounding the sale

While passing a local high school I saw some teens playing basketball. They were having a lot of fun tossing the ball toward the basket – sometimes it would go in and most of the time it didn’t. But what really caught my attention was the one guy who continued to follow up on his tosses and when the ball bounced off the rim or the backboard, he would jump up and tap the ball into the basket. Great technique. While the other players were satisfied to shoot for the 3 pointers and more glamorous shots, this player made more points by doing the follow up.

The sales message for me was clear and I hope it is for you as well. We may not be successful with the initial sales call but with follow up we improve our odds greatly. During the follow up call we know more about the prospect’s decision making process, we know more about their needs, what other companies they are considering, and their decision timeframes, etc. The follow up call provides us with the opportunity to tap our pitch and make it more perfectly turn into a score!

I wish you the best in rebounding efforts after your sales pitch.

Are you letting buts get in the way of your success?

While talking with a local CEO about his business challenges and how the firm needs to transition to a different business development system he agreed with the soundness of the reasoning, but interjected "However..." and "But..." and "We can't..."  As our meeting came to a conclusion I pointed out to him that his lack of support for the new approach, no matter how sound, was going to cause it to fail.  He was shocked and dismayed by my comment.  "I support it," he stated.  I replied that his words showed his true beliefs.  It is one thing to point out challenges which will need to be address to accomplish a goal, and another to only point out the challenges and obstacles. 

 

"If you believe in the new approach you need to think beyond the challenges to the solutions," I told him.  We need to move beyond the "buts" to the "we can," and "we will."

 

These are challenging times that call for new thinking to solve business problems.  If we confine our thinking to the past, we will never get to the future. 

 

Consider the opportunities for you and your business; are you thinking "can't" or "will"?

New pricing strategies to improve company viability

As the economy improves and companies look at their narrow profit margins, it is time to rethink their pricing strategies.  They cut prices to keep their doors open in the recession, and now that the economy will be recovering, albeit slowly, there is a clear signal that increases in materials, labor, and overhead will eat into any profit margin that currently exists. 

You need to put in place a solid new pricing strategy.

There are 3 main elements to consider in your new pricing strategy: anticipate higher costs, competitive issues, communications.

You need to make some estimate as to potential cost increases.  Maybe make several scenarios to be prepared for various eventualities. 

You cannot, should not, price yourself out of the market.  However, without a profit there is no long-term reason to be in business.  Determine what low profit, no-profit, customers you are willing to lose to your competition.  Determine what you are willing to do to retain long-term profitable customers.  Exceptional service, outstanding quality, and reliability does enable you to charge a premium price.  Are you worth a premium price?  What can you do now to ensure your product is perceived as meriting a premium price?  Can you bundle services to provide a package pricing strategy?

The biggest fault that most companies make in re-pricing is that they don't communicate it effectively to their customers.  There is a need to not just pass price increases through, but to let your customers know what you have done for them to validate the new price.  And if your story is not a solid one then rethink what you can do!  Good relationships are built on solid communications and understandings.  Passing price increases through without explanations, or with a simple letter, is not the way to maintain customer relationships and keep the competition away.

Here is a pricing situation to consider.  My wife brought home some salsa this weekend.  She paid $5 for one 16 oz. jar and $4.75 for another 16 oz. jar.  Salsa at the regular grocery store we visit costs about $2.50 a jar.  Why did my wife pay twice the price?  She is adamant that it was cost justified.  She pointed out the different flavors - although she did not sample the product before purchasing the more expensive salsas.  A tiny example of the emotional aspects of buyers and how, with a better understanding of customer desires, you can get a higher, maybe not double, price for your product as well.  There is no need to price your product as a commodity when it is not.

Be proactive and determine your strategy for your new pricing.

How to shorten your sales cycle and lower your stress

He called me and told me he could save me money on my business insurance.  I was impressed - not by his ability to save me money (haven't we all heard that line) since he did not know what I was currently paying.  I told him I was happy with my current insurance company.  He persisted, "It will only take a few minutes to answer my 5 questions."  I said, "No thanks," and was about to hang up as I usually do at this point, but he chimed in, "I know I have a better deal."  Once again I thought how dumb this comment was since he did not know enough to make such a claim. 

With amusement in my voice I told him sure - "ask away."  He asked when my current policy was going to expire - is that the most relevant question for a prospect?   I told him I didn't know.

He asked how much coverage did I have...I told him I didn't know.

He now was sort of confused but he persisted not seeing my disinterest.  "How many locations do you have?"  One location I told him.  He asked a few other questions and I gave him vague answers.  He did not pick up on the fact that I was not interested.  He told me he would work up a quote and get back to me in a few days.  I assured him I was very excited about that - a little cynicism, NO, a LOT of cynicism in my voice.

The next day he called back to confirm some information so he and his boss could put together a good quote. 

I am sure his boss explained to him that without critical information you cannot put together a solid quote. 

I felt I helped educate the sales guy.  He should have thanked me for giving him a lesson on listening to the prospect and if the prospect is not interested - don't pursue the presentation.  Save your time and energy and focus on prospects who are interested in your service.  This will decrease your sales cycle time and lower your stress.

Have a great week of selling success!

Sarah Palin and how not to break BIG news

Sarah Palin has resigned as Governor of Alaska.  The news is on the major stations and the Internet but her announcement sadly reflects a lack of sophistication about how to market your message effectively.

When a big announcement is made, and this is a BIG announcement due to her rabid fans and avid detractors, one needs to position the message, the timing, and the staging.  The staging was great - her home town with her loving family by her side.  The timing was not optimum.  Many people were already on their 4th of July vacation on Friday and her coverage was done by the second string of reporters.  The message was not tightly scripted.  Her extemporaneous comments left too much up to the reporters to misinterpret.

What Governor Palin should have done was wait until the middle of next week when the media was back to their desks and call a press conference.  Then staging the same way she did she should have laid out the deep concerns she has about Alaska, the plight of the poor and unemployed and uninsured, and the concern she has for "the lower 49 states."  She would acknowledge that she loves being Governor but that she has a bigger obligation to its citizens and that she needs to address the mis-direction that is being taken on so many issues nationally.

A crisp statement with her big smile her family hugs and the flag waving in the background would have made a stronger statement about her professional commitment that we are going to hear so much more about.

It will be a fun road trip with Sarah and her fans for the next several months.  I hope she assembles a communication team that is top notch and avoids the little missteps of the past.

Go get 'em Sarah!

Obama - best dressed and well spoken - a teachable moment

Brad Pitt lost out to Obama in a poll of the best dressed.  Obama is also often admired, even by his political opponents, for being well spoken and having great mastery of the English language and ability to turn a phrase into a memorable sound bite.  What is the point?  Obama is a master salesperson and his skills should be an example to all salespeople of how to attract the admiration of even one's opponents.

How well do you dress?  How well spoken are you?  Do you feel your customers need to take you as you are and appreciate you or are you insightful enough to know that how you "come across" will determine perception and provide influence?

The skills of great politicians should be studied to see which we can also practice for increased effectiveness.

Have a great week of selling!

Who is failing; You or the Market?

Business is down and you are feeling like a failure.  You are not getting the sleep you need and you are working twice as hard and producing a fraction of the previous results.  Are you a failure?

We all know the economy is bad for most companies - has had little impact on most attorneys and government continues to grow.  How much is due to the overall economy and how much of your business decrease is due to your poor performance?

The answer lies in doing the follow up.  I talked with a manufacturer and he was very glum due to the lack of sales.  Once we reviewed his numbers, the proposals he sent out, and the lack of response we realized that the prospects were not buying - period.  He did not lose to his competitors but the prospect, after asking for bids, did not follow through.

The lesson in this discovery is two fold: examine if your competition is gaining on you or not before beating yourself up, and why are we doing extensive bids when the prospect is not buying?

You need to put in place smart proposal writing.  Extensive work on a proposal that gains you nothing is a serious cost - time spent as well as emotional commitment.  We need to do a better job right up front in determining if the prospect is serious, have checkpoints along the way before we commit too much time, and try to get some level of commitment or payment before proposals become a significant cost.