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Archive for November, 2006

Does Your Marketing Have “Skanky Scrunchie Syndrome”?

Nov 30

Posted by Alexandria Brown in People!, The Board Room, The Marketing Dept | No Comments

A few years ago I spoke at a large marketing conference in Atlanta, Georgia. One woman approached my display table to ask a few questions. Honestly she was so attractive it was intimidating. Tall with a pretty face, understated jewelry, a blue designer suit with beautiful shoes and a high-end bag. She looked like she’d just stepped out of a catalog. I thought to myself, “How polished! This woman really puts out a winning image. She must do very well with her business.”

Then, as she turned to walk away, I spotted it…

The scrunchie.

Her silky, shiny hair was pulled back by a dingy white scrunchie that looked in desperate need of a washing, if not discarding. It was a truly skanky scrunchie.

Everything positive this woman had projected was immediately tarnished by this negligent afterthought.

Now, of course I assumed the poor woman must have been traveling and forgotten her good scrunchie, and that’s all she had in her bag.

So a few months later I’m at another marketing conference here in Los Angeles, standing at my booth after speaking on the main stage. And up she walks again to say hi, looking fabulous as before. We have another great conversation, and as she turns away, there it is … AGAIN.

The skanky scrunchie!

I realized then that she had no idea it had a negative effect in any way. She must have thought that no one would notice. Or that since the rest of her outfit was so polished that it wouldn’t matter.

Wrong.

My point is not to ridicule this woman’s choice of accessories. My point is how one piece of a “package” can ruin the entire presentation. Another example is seeing a beautifully dressed man (I just love a man in a sharp suit and tie) with shabby shoes. There goes the sale!

I eventually realized I had a few “skanky scrunchies” of my own, when it came to how I packaged my products. While I’d upgraded most of my marketing materials to my slick new look, there were a few product packages remaining that looked like I’d created them myself using clip art. (That’s because I had!) I wasn’t proud to ship them to people. I wasn’t proud to display them at my seminars. In fact, I avoided showing them to anyone at all, which of course meant no one could buy them.

My good friend Kim Castle of WhyBrandU.com says that your marketing materials should “make you tingle” when you look at them. Like your business card for example. I’d say almost half of all people who hand me their business card make some type of excuse for it. “Oh this is just a temporary card for now.” “This is my old logo on here.” “Sorry this isn’t updated yet.” Kim calls this “business card shame.” I love that!

I’ve realized over the last year that if I want to BE a million-dollar business, I’d better start LOOKING like one (and acting like one, for that matter). And that attitude and those actions are paying off immensely.

So take about 30 minutes this week and inventory all your marketing materials. I mean ALL of them. Your website, business cards, brochures, product packaging, even forms — anything that your prospects or clients and customers see. (And even the things only you and your staff see.)

Do they all look consistent and professional? Or do some of them look like your kid designed it or it was thrown together quickly?

If any give you shame, they’re your skanky scrunchies. Write them down on a piece of paper, and then write down what you’re going to do about them, and when.

Resolve to fix them yourself or outsource the design and production to get them revised ASAP. I guarantee you’ll thank yourself once you do! You’ll not only be more proud to give out and sell your materials, you’ll see your business rise as well.

© 2004-2005 Alexandria K. Brown

Fatal Traps of Negotiating Exposed

Nov 26

Posted by Wayne Berry in Leadership, Negotiation, People!, The Board Room | No Comments

Don’t Make These Mistakes!
As I work with sales people and sales managers I see some  fatal mistakes being made as they negotiate.

May I share some of these here with you now in the hope that their “learning experiences” will benefit you and remind you of the importance of not falling into these “traps”.

Indeed, you may care to use them as a check list to ensure that you develop and use good negotiating habits every time.

1.  Poor Planning

This has got to be the biggest killer of most negotiations and the major reason for not creating a win/win outcome.  Poor planning is the hallmark of the amateur negotiator.  They do no preparation at all, and it shows.  Particularly in our culture there is a tendency to simply “wing it”.

Don’t make this mistake!  Take the time, do your homework and do it right.
2.  Rushing The Negotiating Process

This is the second most common reason for creating disastrous outcomes in a negotiation.  Remember that negotiating is not just about reaching the bottom line in the shortest time possible.

Ours is a culture where we have become accustomed to instant coffee, 5 minute meals, pizzas delivered to our door in 15 minutes, and so with negotiating there is sometimes a tendency to want instant results.  Don’t make this mistake, take your time, and have the person you are negotiating with

Take your time, and have the person you are negotiating with invest more of their time too. The more time that you can have the other party invest, the more rapport you can develop. The more time the other party invests, the more interest they will have in getting something out of the negotiation rather than having it end with no agreement reached.

This is one of the best strategies for getting what you’re really looking for too.

3. Setting Low Goals

We don’t get always get what we deserve in life, more often than not, we get what we expect. In my opinion we often expect too little, and so it is too, in negotiating.

Don’t be afraid to aim high. Ask for what you think is fair, but don’t be afraid to ask. Recognise that negotiating is just a game, and if you ask for more than what you are prepared to settle for, either you might just get it. Or if the other party is a keen negotiator and wants to negotiate you down, you’ll be able to give a little and still be above your own bottom line.

If you start too low, you’ll have nowhere to go and being able to trade some concessions in a negotiation is often a part of allowing the other person to feel good about their negotiating abilities.

Next big mistake is...

4. Forgetting That Good Negotiating Involves Counter
Instinctive Skills

Before you respond, STOP, and think. Most instinctive responses are not the best response. The best responses are often counter instinctive. If you are feeling excited because the deal looks better than you thought, restrain yourself, don’t appear to be too eager.

This is a natural and instinctive response but lowers your power. It will be very hard to ask for a better deal if it’s obvious the other person that you want it no matter what.

A better response would be to play “reluctant buyer”. This is a counter instinctive response. Adopt the attitude, “I care… but not that much!” This is a much more empowering attitude and you are much more likely to gain concessions or a better deal from the other person.

So the lesson is, if your instinctive response is excitement, show the opposite, indifference. If your instinctive response is to get angry, be calm and so on.

Next…

5. Failure To Understand The Real Needs And Intentions
Of The Other Party.

When people negotiate they often fail to reveal their real needs and real intentions. So get that X-Ray vision working. Look below what the other party says and seek to understand their real needs and intentions. Broaden the base of the negotiation,

Once you narrow a negotiation to just one issue, like price, there has to be a winner and a loser. What we want to create is win/win.

Remember to use in-depth questions.

For example in a recent negotiation the person I was negotiating with was insisting on receiving $1,500 per event for services they would be providing me. I was prepared to pay only $1,000 per event. This was my objective (my HAP) and I thought this was a fair and reasonable expectation as I wanted to book 12 events over 12 weeks.

This was excellent business for them. However they wouldn’t budge on the price. By probing a little deeper, I discovered that while price was important to them, cash flow was even more important and a greater need than the profit margin per event. They had a cash flow problem, and I had a solution for them.

If they would agree to $1,000 per event, I was prepared to write them one cheque for $12,000 up front. In this manner I got what I wanted and they got the cash they needed to slve their immediate problems. It was win/win.

Anyway the lesson is – get those negotiating skills!

The next big mistake is…

6. Talking Too Much.

This is one of the biggest mistakes I see. Learn to to listen, more than you talk. Listen for the real meaning too, not just the words that people use. Use silence too. It’s classy, it’s a powerful tool and it gives you time to think.

Slow is often a better strategy at times than fast, in a negotiation.
I was negotiating recently with a young man for the rental of some sound equipment and a sound engineer for one of our seminars in New Zealand a few years ago. I asked him about his rates and he responded immediately with a figure. I didn’t respond. I was thinking.

Before I could say anything, he offered me a discount. Again I sat quietly. I was converting those New Zealand Dollars to Australian Dollars in my head and I am just naturally slow doing this. Again before I could respond, he offered me an even better deal. Again, I said nothing.

He couldn’t bear the silence. He jumped in again and this
time offered the services of the sound engineer free. He was negotiating himself down and I hadn’t even uttered a word.

Remember to listen more than you talk. Don’t be afraid of silence. Use it.

Anyway until we speak again…

Have a great week this week. Make it a great week!

Networking, Virtually!

Nov 25

Posted by Tory Favro in Innovation and Creativity, People!, The Board Room, The Marketing Dept | No Comments

As business owners we know that it’s important to get to know others, both suppliers and potential customers are on the need to know list. We go to functions, do mail outs and other marketing activities, join business clubs and go to early morning breakfasts to network and listen to others speak. It’s time consuming and can take up massive amounts of an already overloaded day, leaving us on occasion feeling a little bit dull and uninspired toward what we do as we don’t always feel that we are getting the true benefits of the time that we are spending on this activity.

A craze that is picking up a lot of steam is V-Networking or Virtual Networking, that is; using the Internet to get to meet new people who might be interested in using our products or services, or simply getting to know us better. One site that has been quite instrumental in achieving this is MySpace (http://www.myspace.com). Set up in the United States by Tom Anderson and Chris DeWolfe, the site is now making overtures to the Australian marketplace.

Well that’s well and good I hear you say, but what is the point?

MySpace is about making friends. You set up a page about you or your business on the site (it is free), this is called a profile. Others can view this public profile (let’s call it advertisement in our case!) and if they like your message, they will ask to become your “friend”. Over time most users will get a lot of friends on their lists for one reason or another and this is when MySpace really shines.

You see, by allowing others to become your “friends”, and you becoming theirs, you now have permission to hit those people with bulletins and news items. There is a control panel built into your profile that allows you to post bulletins and news about anything you like. The titles to these posts will allow all your friends to see them and if you make up a compelling enough title, you are sure to get some readers. In essence it’s free advertising to a group of people who have already shown an interest in what you have to say by checking out your profile and either asking to be your friend, or approving your friend request to them. Always the best group of people to market to are the ones who are already warm to your message!

Although it does make reference to Australia and contains Australian advertising, the site is still hosted in the United States and you should be aware that the privacy laws that bind this site are still under the govern of the USA. It really doesn’t make much difference, but is a point worth making.

I would say that currently MySpace is definitely aimed at youth culture and for business to take a fun look at networking within it. There are many businesses that run almost exclusively from MySpace and the worldwide exposure that it gives them. It has been a launching point for many bands, with the ability to listen to tracks or download music for free legally.
Have a look at MySpace and do some searching on there. There is a good chance that you will find a group that suits your own interests, whether they are personal or business related, see what others have to say and get networking! You might just be surprised at who you make friends with!

Till next time,

Tory

Whatchya Waiting For? Appoint Yourself the Expert!

Nov 24

Posted by Alexandria Brown in Personal Development, The Board Room, The Marketing Dept | No Comments

There’s one marketing condition I see over and over with my clients, and it’s called “but-I’m-not-an-expert-itis”. These people are afraid to play bigger because they think it’s not their time yet. (The important words there being “they think”.) They’re waiting for something to happen – a degree, a certification, a blessing from the gods in their industry, a recognitional nod from their respected peers.

Please listen carefully: This attitude will kill your business and take years off your life! It’s VERY important to position yourself from the get-go as an expert in what you do.

Why do you want to be seen as an expert? Experts are more respected, get media attention, can market more easily and inexpensively, get paid more, and receive less price resistance (meaning people are happier to pay what you ask).

So, instead of waiting for someone to invite you to the top of the mountain, I urge you to simply “leap frog” your way over everyone else at the bottom.

Hear me loud and clear: You do not need anybody’s permission to believe you’re the best at what you do and share that fact! In fact, here are a few points I make to my clients if they are expressing doubt about their “qualifications” to sell information, programs, or services and charge well for them.

In the eyes of your prospects, clients, customers, and the media, you’re seen as an expert if…

1. You Know More About Your Topic Than Your Target Market Does

When I first created my Boost Business With Your Own Ezine system, I wouldn’t say I was an expert on ezines by far. But by studying the topic in depth to create my own ezine, I’d weeded through all the junky information to get to the good stuff, and I wanted to share it.

You’ll find you can make quite a good living just teaching people how to get started in something. (You don’t have to be the end-all wizard of the topic.)

2. You’ve Done What You’re Teaching Others to Do

One client of mine, whom I’ll call “Pat”, teaches real estate investing. She wanted to create a high priced mentorship program of her own, but was nervous about it. She didn’t feel right charging a lot of money for her personal time and advice, which meant deep down she wasn’t confident in what she was teaching.

I asked her, “Did you make a million dollars investing in real estate?” She said yes. “Then just show them what you did,” I replied. “Are you confident in that?” Her answer was a resounding “YES!” Once she realized she’d simply be teaching what she herself had already done, it eliminated her nervousness, made her sales much easier, and she was comfortable charging a hefty (and well deserved) fee.

3. You’ve Been Quoted on Your Topic in the Media

Sometimes the cart comes before the horse, and a brush with the media IS what makes you seen as an expert. A cosmetic surgeon friend of mine was recently a guest on a Los Angeles television show, and he now proudly promotes that fact in his ads, brochures, and office displays.

When I was interviewed by The Wall Street Journal on the subject of small business email marketing, you can be sure I added that to my bio as soon as I got off the phone!

4. You’ve Written a Book or Articles on the Subject

Nothing says “expert” like writing a book or by getting your name “out there” via articles. When you put a pen to paper (or fingers to keyboard) and simply share what you know, no matter how simple the information seems to you, people instantly view you as an authority figure. All you have to do is put yourself out there.

A friend of mine recently chose a financial planner based on the fact that he was a published author. “After all, he wrote the book on it!” she said. In her eyes, that sealed the deal, and she was happy to pay more for his services without question.

5. You SAY You Are the Expert!

I dubbed myself “The Ezine Queen” several years ago, simply because it had a ring to it. I had no idea at the time how much that would help me get famous and be remembered.

Did you know that Muhammad Ali became known as “The Greatest” because Ali himself said it? Yep — he just kept saying it, and then eventually so did the media!

So if you have a good moniker in mind, go for it.

The Bottom Line… It’s up to YOU.

Remember this: Your prospects, clients, and customers will virtually always accept the positioning that YOU choose for yourself and present to others.

So, whatchya waiting for? : )

© 2005 Alexandria K. Brown

Communicating to the Masses Who Want to Hear Your Message – Introducing Podcasting.

Nov 24

Posted by Tory Favro in Innovation and Creativity, The Board Room, The Marketing Dept | 1 Comment

Having and maintaining a constant flow of communication with our clients and customers is essential in this day and age of technology and increased competition. Often we find that there is information that we know will benefit them, but simply due to pressing demands on our time, we sometimes don’t get around to talking to our customers as much as we would like. What if there was a way to do this that our customers could access our message as often as they liked, and at times of their choosing? Well, there is and this is what I am covering today.

Podcasting (a term coined by the popularity of the Apple iPod music player) is a growing type of communication used by both business and individuals to reach out to a larger, often international audience. Podcasts are often in MP3 format (an audio file – although video is now becoming popular too), and they can be subscribed to so that you never miss an episode, or simply downloaded so that you can listen to a program that interests you. Now you can choose the content that you want, to listen to when you want, where you want.

There are many programs that can subscribe to, and play Podcasts, but the best known would be Apple’s iTunes. This program works on both Windows computers and also Apple computers, and will allow you to listen to Podcasts on your computer or transfer them to your iPod if you like. One thing I would like to stress here is that you DO NOT need to have an Apple iPod to use iTunes or listen to podcasts. To download the iTunes Software (it’s free), go to http://www.apple.com.au/itunes and follow the prompts.

With broadband in Australia increasing, some people are now also using Podcasts to put video commercials and printed information onto consumer’s computers. These people are ideal to promote yourself to, as they have essentially given their permission to receive your material by having subscribed to the Podcast, thereby indicating that they have an interest in what you have to offer.

Podcasting can open the world up to your business, the results can be absolutley amazing! If you want to hear an example of a podcast, you can find our show on the website at http://www.think2design.com and simply follow the Podcast link.

Who would Podcasting benefit? Almost anyone with a service or product to sell it would seem. Podcasts range from variety shows, music programs, through to your traditional Podcasts about business, marketing, your choices are endless. Great for the end user and an absolutely fantastic business resource for the producer. Everyone wins, which after all, is what it’s all about.

PS: Further to this article, if you believe you have a story or profession of interest and would like to be interviewed for the show please do not hesitate to contact me. I am more than capable of recording the show regardless of where in the world you live so please do not let distance put you off. Our show is aimed at entertaining and educating business people so interviewees should be aware of this.

Are you marketing or educating?

Nov 21

Posted by Robert Gerrish in Innovation and Creativity, The Marketing Dept | No Comments

If you’re forever hearing great things said about your work, yet not seeing these translate into sales and revenue, it could just be because you’ve fallen into the innovator trap.The innovator trap is where we can end up if we confuse educating with marketing. Going out and telling the world about something completely new and revolutionary certainly stands a good chance of generating interest, but not necessarily any sales.

Certainly innovation can work as a marketing tool, but generally only with an audience who already know and trust you. I’m not suggesting that we only market in the mainstream with existing contacts, but we need to be aware of what works and what doesn’t and if necessary make some changes.

Often the changes involve little more than a slight dilution of our proposition – evolution can sell easier than revolution, at the outset. Once effective marketing gives us a foot in the door, we can guide our prospects and customers toward a brave new world.

Let’s look at an example. In fact it’s a real one from a conversation I had a while ago:

David had developed a product that revolutionises the way corporations store and access electronic information. In other countries similar systems were slowly being embraced and put to extremely good use. In his home market, however, things were trailing a little behind.

David was being invited to talk at numerous conferences and expositions, there was much interest. The joint was jumping. Well, it undoubtedly felt like that for a while, but when I caught up with him it was getting a bit tiring.

Sure there was a lot of interest, but not enough sales. David was educating and doing a great job of it. His family meanwhile were getting fed up with beans on toast.

So what would you do? Keep bashing away? Go into greater debt maybe? Put the house on the line?

After speaking for a while, we came up with this solution for David:

1. Look much more closely at what’s been learned

  • Take time to do some research – had he been educating or marketing?
  • Ask the tough questions and be ready for straight answers.
  • Talk to some of the people who invented the wheel in those other more advanced markets – What lessons had he perhaps missed?

2. Get clear on the options

  • How long could/should he give to your current path?
  • If he made a shift, what would or could that be?
  • Are there any real signs that the market is changing?

3. Think more like a marketeer and less like an innovator

  • If David looked at his revolutionary product as top-of-the-range, what’s a possible ‘entry level’ product? Something to get a foot in the door.
  • How could he modify his language to talk in terms that satisfy a current need, rather than focussing on a future ‘maybe-want’?

As soloists it’s fine to use innovation to get noticed, but it’s important we have products or services that our customers want to buy NOW. Little by little we can up-sell and do more of what we really want.

So what should you do when your prospect says, “I’d like to think it over?”

Nov 20

Posted by Wayne Berry in The Board Room | No Comments

“More sales are lost by sales people who fail to get to the “real objection” than for any other reason!”Wayne Berry

As I was saying…

If the sales person does not get to this real objection, then the sale will probably be lost.

So how can we get to the real objection? It’s easy if you know how and the best response is…

“Obviously you have a reason for saying that, do you mind if I ask what it is?”

Once you ask this though, you must be quiet and wait for their response. Say nothing!!

This will often get the prospect to reveal their real concern to you. If you can get their objection out in the open then you will probably be able to handle it.

So what then do you do once you get this objection out into the open?

Some sales people become very defensive when their prospects bring up objections. But this is crazy. Instead you should always…

Welcome objections

Here are a few tips for handling objections when they do come up.

Firstly… .

1. Smile and thank your prospect for the question

Treat all objections as questions.

Never refer to their objection as an objection. Objection is a negative word. So is the word “concern”. Instead refer to it as a question.

2. Ask them to clarify their question with you if you are not sure what they are saying

“Mr Prospect, how do you mean?” or “Why do you feel that way?” or “Why is that important to you?”

3. Hear their objection out in full – do not interupt

Have you ever tried to explain something to someone who kept interupting you?

Kept jumping in to answer your question when you hadn’t finished stating your question?

It can be very annoying. Also if you let your prospect explain what’s on their mind…

They will sometimes answer their own question

I bet you’ve had this experience yourself. Remember also that when yourprospect answers their own question, it’s has come out of their own mouth – so it must be true!

Once you’ve heard their objection out in full, then…

4. Answer their question

There are several ways to answer their question. Firstly you can…

Give them the facts

This is particularly true it’s a question that is best answered with data or figures, specifications, features etc.

If however they are expressing a concern over ease of operation, whether it will work for them or not etc, you may be better to answer their question by using…

Social Proof

“Social Proof” is where you tell them about someone else’s experience. Where one of your other clients for example, had a similar concern (question) initially, yet when they went ahead they discovered that their concern was unfounded and they had a really good experience.

It’s even more powerful if you can show them a “testimonial letter” or even call your client and have them explain how their concern turned into a really positive experience for them.

Finally once you hae answered their question…

5. Check that they are happy and satisfied with your explanation

There is no point continuing if they are not satisfied with your explanation as they will not mentally move on, even if you do. Ask them, “Mr Prospect, have I asnwered that question to your complete satisfaction?” And again, be quiet and listen.

Have a great week this week. Make it a great week

Setting the scene for success

Nov 19

Posted by Robert Gerrish in Planning, The Board Room | No Comments

A while ago, I had a meeting with a fellow business owner who I was planning to use on a project I was developing. This person had a high degree of expertise in the area and was aware that I do not.A meeting was set-up to begin exploration of a working arrangement.

On both sides the set-up was far too casual. I didn’t make it clear exactly what I wanted from the meeting and nor did the other party ask any questions prior to us getting together.

The result was a clumsy meeting that only really got started when our time ran out. Neither of us had set the scene for a successful outcome.

Hardly best practices for those of us who want to love our work!

I suspect my potential supplier left feeling that his time hadn’t been utilised well, and I was certainly left feeling less than confident in his ability to manage the project I had in mind.

I couldn’t help but think, ‘Hey, if this person can’t manage a meeting properly, what chance does the project stand?’

Harsh? Maybe so, but isn’t it likely our prospective clients think like this? In the pursuit of new business and new opportunities we absolutely must take control and manage effectively.

Neither of us had taken responsibility for the meeting and the result was an all round waste of time.

In this meeting scenario it comes down to how we set the scene.

Here are some basic set-up tips:

1. Don’t go in without outcomes

Never go to a meeting where the desired outcomes are not clearly understood by all involved. This includes the meetings you call and the ones you are required to attend.

2. Have a meeting with yourself first

Plan the meeting in advance. Think about what you want to say and what you need to learn. Give yourself a basis upon which to measure the success of each encounter as this will help you better prepare for the next.

3. Remember you are in charge of your time

Consider every meeting to be YOUR meeting. Sitting quietly while a meeting drifts out of control does no-one any favours. If you’re looking bored and disconnected, you’ll be seen as being boring and disconnected. Not a good marketing position!

4. Suggest options

Don’t be afraid to challenge what is put in front of you. If a phone call, rather than a face-to-face meeting would suffice – suggest it. If more needs to progress before you’ll give up your time – say it.

5. Summarise

At the close of meetings, summarise what’s happened and discuss follow-ups and next actions. Don’t leave with anything unsaid. Loose ends will bite you.

6. Confirm and confirm again

Always confirm appointments the day before. Leave nothing to chance. The roads, railways and airways are full of miserable business owners returning to base after a futile non-encounter.

Once clients see that you respect your time, they will respect it also. We shouldn’t confuse generosity with an absence of boundaries.

And remember, the real risk is that clients and customers will read inefficiencies in one area as a sign of inefficiency in all areas.

Would you happily take skydiving lessons from someone who’s missing a shoelace?

Rubbish – Money

Nov 19

Posted by Steve Gray in Excellence!, Health and Safety Dept, Innovation and Creativity, Planning, Risk Management | No Comments

I recently came across this story and it reminded me of a few things I had seen in the past few years.

Quad/Graphics USA is one of the largest printing companies in the world. It is the brainchild of Harry Quadracci Jr. He constantly searches for cheaper, faster, more effective, exciting ways to do business always applying standards of the highest integrity.

John Imes, their ecology manager said they were producing a considerable amount of waste every day in every plant. John was brought in to see what he could do to lower the costs associated with this waste, and to bring the plants into compliance with Environmental Protection Agency standards and regulations.

John came to the conclusion that, “We live in this town.  If we spew anything into the air, we’ll all breathe it and so will our children.  If we pollute the streams, we’ll all be drinking it.”  So the decision was made that the company had to commit to cleaning it all up. However, in tune with Harry Quadracci’s policies, it was also necessary to still make a profit while doing it.

Eight years later, they actually made a profit from the cleanup efforts!  They were also in full compliance with the EPA.  The first thing John did was to call the EPA inspector and invite him into the plant. “I want you to be my partner in making this plant in full compliance.  How can we work together to make that happen?”  The inspector said that this kind of conversation had never happened before. John said to the inspector, “I want you here with me all the time.  I don’t want an adversarial relationship.  I want to make this plant, and all our plants, clean, efficient and effective. Let’s be partners in this process.”

In looking at the various sources of potential pollution, the ink used in printing was a big one.  They found that inks could be made from soy.  Up until that time, soy-based inks had various problems that made them impractical.  The company investigated this further.  A few years later, they were in the soy ink business, had perfected soy-based inks, and were now supplying them all over the world.

Then, another breakthrough. They discovered various ways of using recycled papers.  Eventually, they discovered that there was a use – a profitable use – for almost everything that had been thrown out previously. Where each plant had been producing many barrels of waste each day, they cut it down to less than one barrel per day. For John Imes, every day has become an opportunity to do something of value – not only for his company, but for his community as well.

For many of us, this kind of ‘thinking outside of the square’ to solve a challenge goes by the way side too quickly, we find it easier to creatively avoid these types of tasks as we may see them as being too difficult.

In time businesses and team members will have to think more outside the square like John Imes and Harry Quadracci Jr, to not only implement change, but to make certain it’s profitable as well.

Consider what things happen around your business and workplace, how can you extend yourself to make it a better place to be, not just for the business profitability but for the community as a whole.

So why do prospects say, “It costs too much?

Nov 17

Posted by Wayne Berry in People!, Starting out in business, The Customer Service Dept, The Sales Dept | 2 Comments

“More sales are lost by sales people who fail to get to the “real objection” than for any other reason!”

Wayne Berry

As I was saying…

A company which I eventually did some sales training for a few years ago decided to put this to the test. Their product (actually a service) was priced at $3,100 and the company authorised their entire sales team to go out and see all of their prospects who were procrastinating on their decision, or had said “no” and offer the same product for just $1,500. They were allowed to do this for a full month.

So what do you think happened?

Did their sales go through the roof as their sales people said they would because “price was the problem”?

Here’s what happened. Less than 10% of these procrastinating, price sensitive prospects actually decided to go ahead and buy or reverse their decision not to buy.

That’s right less than 10% bought!

You see price was not the problem! These prospects were not going to buy at any price. The “promotion” (which incidentally I did not agree with) was a complete failure but it did show that price was not the real problem…

The real objection was “I don’t see the value”!

Over the weeks ahead we trained these sales people to sell on value and not on price. They sold at full price from that day on and this involved developing a range of skills including; .

  • Rapport building
  • Trust building
  • Asking questions to understand their prospect’s real needs – both “logical” and “emotional”
  • How to present the benefits of their products in a way that addressed their prospect’s real needs
  • How to ask their prospects for a decision without pressure or “clever tricky closes”, and most importantly…

How to answer the price objection when it came up

So what happened? Over the first 30 day period sales rose by 43%. During the next 30 days they rose by a massive 80%, and in the next 30 days by more 100%.

That’s right, sales doubled!

So how do you sell the value?

Well a prospect determines whether your proposition is value for money or not by weighing up the benefits your proposition offers, versus the cost (or more correctly the “investment”).

Value is a perception and you can change this perceived value by explaining the benefits in detail (not the features) as they relate to your prospect’s needs (determined by your skillful use of questions before making yor presentation) and this can then tip the “value for money scale” in favour of good value for money.

If you do this well, then you will often eliminate the “It costs too much” objection entirely.

If however it does come up, this is how to answer it.

“Mr Prospect I understand how you feel, I’ve had other clients who also felt this way, but when they went ahead here’s what they found…”

At this point you go on to sell the benefits.

This technique is called the “Feel, felt, found technique”

This is just one of the strategies and techniques we trained those sales people to use and the increase in sales was dramatic.

And this is not an isolated case, over the last 12 months alone I’ve shown tens of thousands of sales people across Australia, New Zealand and South East Asia how to sell on value rather than on price and…

How to get past objections that stop 90% of sales people.

And while the price objection can be a tough one to handle, there is an even tougher objection to handle and get past to make the sale than the price objection.

So what is this toughest of all objections?

Well it’s the one that costs sales people more commissions and sales than any other objection.

It’s the un-stated objection!

It’s often disguised as, “I’d like to think it over!”

Well this is not a real objection. It’s an excuse, a “smoke-screen” to hide the real objection. However there is a brilliant way that we have developed to handle the “smoke-screen objection” and to use it as a springboard to close more sales than you ever have before.

Have a great week this week. Make it a great week

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