Making a great impression—not just a good one—is the key to landing a job in this economy. I will lead a workshop on how to give an impressive interview at the Harrison Library on Wednesday, September 21, 6:30 - 8 PM.
The event, which is free and open to the public, will focus on short practice interviews followed by critiques designed to strengthen the job seeker’s presentation skills. Participants will learn
• How to make a great first impression
• How to sell your skills and yourself
• How to stand out from the competition
The Harrison Library is at 2 Bruce Avenue in Harrison, NY. For more information, call (914) 835-0324 or visit www.harrisonpl.org.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, motivating personnel, financial management, and business strategy.
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Saturday, September 17, 2011
Tuesday, May 10, 2011
Time Management
From a practical standpoint, you don’t have 24 selling hours in a day. You don’t even have eight. I estimate that most salespeople can count on no more than five hours and 30 minutes daily when they can expect to make face-to-face presentations. This is due mainly to the availability of your prospects and customers. Even if you work an 8 AM to 6 PM ten-hour day, you’ll probably not be able to get more than five and a half hours in front of prospects.
Occasionally, of course, you’ll have breakfast and lunch meetings with customers, squeeze in one last call at 4:45 PM, etc. But for the most part, you’ll find it difficult to consistently make appointments with anyone before 9:30 AM because your prospects are busy organizing their own day (which does not revolve around you). Much the same holds true for lunch, which seldom starts at noon or lasts exactly an hour for most decision makers and influencers.
Here’s what a typical sales day looks like:
8 – 9:30 AM Arrive at office, attend meetings, organize day, leave for first call
9:30 AM – 12 PM Prime Sales time
12 – 1:30 PM Lunch, return phone calls, paperwork, leave for calls
1:30 – 4:30 PM Prime Sales time
4:30 – 6 PM Return to office, return phone calls, attend meetings, paperwork
As you can see, you have five hours and 30 minutes of prime selling time in the day. How do you maximize it? Using the priority system you’ve set up, you have to plan your activities.
“Plan your work and work your plan” is yet another “golden oldie” sales adage. And it’s a good one because it describes the essence of sound time management. It’s not enough to lay out a plan, you have to execute it to get any benefit from it. In fact, if you don’t “work your plan,” you’ve wasted the time it took to draw it up.
You can spend a lot of time planning. You can also invest hundreds of dollars in account management software and cross-indexed leather-bound time management systems. Or you can make up a “to do” list on a napkin at the coffee shop where you start your day. These are all planning systems that can work. I suggest trying something in between.
You need both long-term and short-term plans. Or call them strategic and tactical plans, if you have a military frame of mind. Which one is more important? Neither. They serve two distinct but equally important purposes.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Occasionally, of course, you’ll have breakfast and lunch meetings with customers, squeeze in one last call at 4:45 PM, etc. But for the most part, you’ll find it difficult to consistently make appointments with anyone before 9:30 AM because your prospects are busy organizing their own day (which does not revolve around you). Much the same holds true for lunch, which seldom starts at noon or lasts exactly an hour for most decision makers and influencers.
Here’s what a typical sales day looks like:
8 – 9:30 AM Arrive at office, attend meetings, organize day, leave for first call
9:30 AM – 12 PM Prime Sales time
12 – 1:30 PM Lunch, return phone calls, paperwork, leave for calls
1:30 – 4:30 PM Prime Sales time
4:30 – 6 PM Return to office, return phone calls, attend meetings, paperwork
As you can see, you have five hours and 30 minutes of prime selling time in the day. How do you maximize it? Using the priority system you’ve set up, you have to plan your activities.
“Plan your work and work your plan” is yet another “golden oldie” sales adage. And it’s a good one because it describes the essence of sound time management. It’s not enough to lay out a plan, you have to execute it to get any benefit from it. In fact, if you don’t “work your plan,” you’ve wasted the time it took to draw it up.
You can spend a lot of time planning. You can also invest hundreds of dollars in account management software and cross-indexed leather-bound time management systems. Or you can make up a “to do” list on a napkin at the coffee shop where you start your day. These are all planning systems that can work. I suggest trying something in between.
You need both long-term and short-term plans. Or call them strategic and tactical plans, if you have a military frame of mind. Which one is more important? Neither. They serve two distinct but equally important purposes.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Monday, April 18, 2011
Avoid Assumptions
Many times you disqualify a prospect based on assumptions you make about them. You jump to a conclusion based on your suppositions and don’t do any research on the prospect. As a consequence, you don’t have enough hard data to make a decision. Additionally, if a prospect doesn’t use a product like that sold by you or your competitors, you assume there must be a reason and you don’t pursue them. Sometimes there might be a reason they don’t buy, but often the situation becomes a classic self-fulfilling prophecy. Since no one is trying to sell them, they don’t buy. Since they don’t buy, you don’t try to sell them. Or you make assumptions based on incorrect information. You look at the building or the neighborhood the prospect is in, for example, and assume they can’t have much potential, so you don’t call on them. But you never know until you find out for sure.
I used to travel a two-lane highway every Tuesday, driving between two good customers of mine who were located in towns about thirty miles apart. I sold television advertising at the time. Located about midway between my two customers on the side of that highway was a small farm house with a good-sized metal machine shed behind it. It looked like a dozen other farm houses with sheds just like it on that highway except that this house had a little sign out front that said “Energy Savers” on it. I probably drove by that house and its sign for six months.
Finally, my curiosity got the best of me and I was ahead of schedule, so I stopped to see just what “Energy Savers” was all about. I knocked on the front door of the house and got no answer. I walked around to the back and heard somebody whistling in the machine shed. When I went inside, I found a big beefy guy in overalls laying under a trailer working to get a piece of baling wire unwound from one of the axles. He didn’t look much like the “normal” television advertiser.
But it turned out he not only became a television advertiser, he became one of my largest accounts! Like many farmers, he had another business on the side. “Energy Savers” turned out to be an early provider of blown insulation, which offered an inexpensive, non-intrusive way to insulate the side walls and ceilings of existing homes. It was a perfect product to advertise on television and, because it carried such a high profit margin, this guy in the overalls and seed corn cap could afford to buy a lot of TV advertising from me.
If I had continued to judge the potential by the appearance of the prospect, I never would have made that first call on him. Remember, you can’t deposit assumptions in your bank account—only commissions.
Prospecting and qualifying shouldn’t be a chore to be avoided. It should be the beginning of the creative selling process where you open your mind to the possibilities and then try to make them happen. It’s one more adventure in selling.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
I used to travel a two-lane highway every Tuesday, driving between two good customers of mine who were located in towns about thirty miles apart. I sold television advertising at the time. Located about midway between my two customers on the side of that highway was a small farm house with a good-sized metal machine shed behind it. It looked like a dozen other farm houses with sheds just like it on that highway except that this house had a little sign out front that said “Energy Savers” on it. I probably drove by that house and its sign for six months.
Finally, my curiosity got the best of me and I was ahead of schedule, so I stopped to see just what “Energy Savers” was all about. I knocked on the front door of the house and got no answer. I walked around to the back and heard somebody whistling in the machine shed. When I went inside, I found a big beefy guy in overalls laying under a trailer working to get a piece of baling wire unwound from one of the axles. He didn’t look much like the “normal” television advertiser.
But it turned out he not only became a television advertiser, he became one of my largest accounts! Like many farmers, he had another business on the side. “Energy Savers” turned out to be an early provider of blown insulation, which offered an inexpensive, non-intrusive way to insulate the side walls and ceilings of existing homes. It was a perfect product to advertise on television and, because it carried such a high profit margin, this guy in the overalls and seed corn cap could afford to buy a lot of TV advertising from me.
If I had continued to judge the potential by the appearance of the prospect, I never would have made that first call on him. Remember, you can’t deposit assumptions in your bank account—only commissions.
Prospecting and qualifying shouldn’t be a chore to be avoided. It should be the beginning of the creative selling process where you open your mind to the possibilities and then try to make them happen. It’s one more adventure in selling.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Thursday, April 14, 2011
Dynamic Manager Handbooks - Priceless Advice For A Dollar
Sometimes you need to brush up on a single issue you're facing in your business. For just ninety-nine cents, you can turn to the Dynamic Manager's Handbooks for a quick refresher on sales, marketing, advertising, or several other disciplines that affect your company's bottom line.
I'm planning an even dozen for release this year. Here are the first seven:
Best of all, they're only ninety-nine cents!
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
I'm planning an even dozen for release this year. Here are the first seven:
Customer Relations: The Dynamic Manager's Handbook of Customer SatisfactionYou can find the Dynamic Manager Handbooks for Kindle at Amazon.com or your Nook at BN.com.
Five Rules Of Advertising: The Dynamic Manager’s Handbook Of Small Business Advertising
Marketing In Cyberspace: The Dynamic Manager’s Handbook Of Social Media Marketing
Beat The Big Box: The Dynamic Manager’s Handbook Of Winning The Retail Battle
Promotion and Public Relations: The Dynamic Manager’s Handbook Of Alternative Ways To Build Your Business
First Call Selling: The Dynamic Manager’s Handbook On How To Make Sales On The First Call
Sales Promotions: The Dynamic Manager's Handbook Of 23 Ad Campaigns and Sales Promotions You Can Use
Best of all, they're only ninety-nine cents!
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Friday, March 25, 2011
Speaking Your Prospect's Language
When presenting a proposal, it is crucial that the language you use reflects the prospect's interests. While your vocabulary may reveal the knowledge you have of your industry or your company’s products and services, its specialized terms may not be in the same language spoken by Mr. Big. Every industry has its own argot, or set of words, acronyms, and code phrases that serve as a verbal shorthand for insiders. Some of this jargon has become fairly well-known in the general version of English we all speak—but most of it hasn’t.
For example, most people know that a “spot” on television means a short commercial message. But how many know what a “donut” means in TV-language? (It’s a commercial message where the beginning and end remain the same from showing to showing but the middle—the hole in the donut—is changed frequently.) Your industry has its own jargon, too.
It’s important that you identify the specialized terms you use in your presentations and make sure they are ones that Mr. Big will understand. Be especially careful of acronyms—those collections of initials that are taking over our language.
“We are offering you only Bb+ rated or better NYC GO’s, Mr. Big, so your 1099 will be very simple.”
This may be perfectly clear to a stockbroker or an accountant, but what does it mean to simple folk like you and me—or Mr. Big?
One of the biggest dangers of using specialized terms is that not only are they not understood, they can make the prospect feel ignorant. And few people enjoy that feeling or appreciate the person who gives it to them. Most of the time, the prospect will never let you know that he doesn’t understand what you’re talking about. After all, who likes to admit their ignorance? In the worst case scenario, you’ll lose the sale and never really know it’s because Mr. Big didn’t comprehend just exactly what it was you were trying to sell him.
The specialized language you do need to know, though, is the prospect’s. Sprinkling a few well-chosen (and correctly used) phrases from Mr. Big’s line of business into your presentation will help you gain credibility. If you’re selling to a car dealer, you should know what an “up” is. Furniture stores carry “case goods” and appliance stores sell “white goods” and sometimes “brown goods.” Almost all retailers keep track of their “SKU’s.” If you’re going to sell to prospects in these categories, you need to know their language. Just make sure you use the terms correctly—and don’t overdo it.
You’ll pick up a lot of your prospects’ jargon when you do your research. You can also learn a lot by reading the trade publications from their industries and browsing the web sites of their trade associations. Many of them offer a glossary of industry terms that you’ll find particularly useful.
If you suspect that your prospect doesn’t understand something, by the way, there’s nothing wrong with pausing in your presentation to clear up the confusion. This holds true whether it’s because of your use of an unfamiliar term or any other cause of lack of clarity. When the prospect gets that quizzical look, stop the pitch and offer to clear up the misunderstanding. Just make sure you blame yourself for the problem by saying something to the effect, “I sense that I’ve failed to make something clear. You look like you have a question.” Then give them time and space to ask their question.
Communication that is not received can’t be understood, so it doesn’t occur. I don’t know if a tree that falls in the forest when no one is there makes a sound—but I can guarantee that no one is going to buy the lumber. Sales don’t happen if the prospect doesn’t receive the message.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
For example, most people know that a “spot” on television means a short commercial message. But how many know what a “donut” means in TV-language? (It’s a commercial message where the beginning and end remain the same from showing to showing but the middle—the hole in the donut—is changed frequently.) Your industry has its own jargon, too.
It’s important that you identify the specialized terms you use in your presentations and make sure they are ones that Mr. Big will understand. Be especially careful of acronyms—those collections of initials that are taking over our language.
“We are offering you only Bb+ rated or better NYC GO’s, Mr. Big, so your 1099 will be very simple.”
This may be perfectly clear to a stockbroker or an accountant, but what does it mean to simple folk like you and me—or Mr. Big?
One of the biggest dangers of using specialized terms is that not only are they not understood, they can make the prospect feel ignorant. And few people enjoy that feeling or appreciate the person who gives it to them. Most of the time, the prospect will never let you know that he doesn’t understand what you’re talking about. After all, who likes to admit their ignorance? In the worst case scenario, you’ll lose the sale and never really know it’s because Mr. Big didn’t comprehend just exactly what it was you were trying to sell him.
The specialized language you do need to know, though, is the prospect’s. Sprinkling a few well-chosen (and correctly used) phrases from Mr. Big’s line of business into your presentation will help you gain credibility. If you’re selling to a car dealer, you should know what an “up” is. Furniture stores carry “case goods” and appliance stores sell “white goods” and sometimes “brown goods.” Almost all retailers keep track of their “SKU’s.” If you’re going to sell to prospects in these categories, you need to know their language. Just make sure you use the terms correctly—and don’t overdo it.
You’ll pick up a lot of your prospects’ jargon when you do your research. You can also learn a lot by reading the trade publications from their industries and browsing the web sites of their trade associations. Many of them offer a glossary of industry terms that you’ll find particularly useful.
If you suspect that your prospect doesn’t understand something, by the way, there’s nothing wrong with pausing in your presentation to clear up the confusion. This holds true whether it’s because of your use of an unfamiliar term or any other cause of lack of clarity. When the prospect gets that quizzical look, stop the pitch and offer to clear up the misunderstanding. Just make sure you blame yourself for the problem by saying something to the effect, “I sense that I’ve failed to make something clear. You look like you have a question.” Then give them time and space to ask their question.
Communication that is not received can’t be understood, so it doesn’t occur. I don’t know if a tree that falls in the forest when no one is there makes a sound—but I can guarantee that no one is going to buy the lumber. Sales don’t happen if the prospect doesn’t receive the message.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Sunday, March 13, 2011
Demand Stage Selling
“The salesperson who carefully listens to their prospect avoids mistakes.”
Wouldn’t it be great if you could read your customers’ minds? You know, get inside their heads and walk around a little bit? The very best salespeople seem to have that ability—it’s as if they know what customers are going to say before they say it. They have a sixth sense about which objections a particular customer is most likely to raise. They know which ideas offer the specific benefits that really ring the prospect’s bell.
Some of this clairvoyant ability comes from experience, of course. Even more of it comes from advanced listening skills. Top salespeople really listen when their prospect is talking and pick up small cues that many others miss. Many good salespeople are also students of human psychology. They make it a point to study human nature and learn a lot about their customer in the process. As we get ready to make the actual oral presentation, let’s put it in context.
One important talent top salespeople have is the ability to recognize the prospect’s state of mind and shape their presentations accordingly. They determine if the customer is getting ready to place an order or just starting to comparison shop. They can tell whether the prospect has already decided to buy the product and is negotiating for the best price or whether he or she is weighing other options. They understand that different things are important to the customer at each step in the buying process. They practice Demand Stage Selling.
Demand Stage Selling is a technique that identifies how far along in the buying process a customer has progressed. This tactic dictates that you deliver the type of presentation that appeals specifically to someone at each particular stage. Demand Stage Selling immediately helps block out irrelevant objections and tremendously improves your closing ratios.
Three Stages Of Demand
Prospective buyers go through several stages in the decision process—unconsciously, to them. First, they have to recognize a need and decide to buy something to fill that need. This decision creates primary demand. You can equate this stage to that little pang of hunger you get in the late afternoon. Your hunger is the need—the first stage of demand.
The prospect then has to decide on a type of product or service that will fill the need they’ve identified, which creates secondary demand. In our example, what are you hungry for? You have choices—a candy bar, a piece of fruit, or some microwave popcorn (which invariably creates more demand from everybody else within aroma range—but that’s another story).
Finally, the customer must decide which service provider or product brand to buy. This is third-level demand. In our afternoon snack example, this is when you decide whether to buy the Snickers or the Milky Way. Your prospect decides whether to buy from you or from one of your competitors. In sales, this third level of demand is the one concentrated on most heavily.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Wouldn’t it be great if you could read your customers’ minds? You know, get inside their heads and walk around a little bit? The very best salespeople seem to have that ability—it’s as if they know what customers are going to say before they say it. They have a sixth sense about which objections a particular customer is most likely to raise. They know which ideas offer the specific benefits that really ring the prospect’s bell.
Some of this clairvoyant ability comes from experience, of course. Even more of it comes from advanced listening skills. Top salespeople really listen when their prospect is talking and pick up small cues that many others miss. Many good salespeople are also students of human psychology. They make it a point to study human nature and learn a lot about their customer in the process. As we get ready to make the actual oral presentation, let’s put it in context.
One important talent top salespeople have is the ability to recognize the prospect’s state of mind and shape their presentations accordingly. They determine if the customer is getting ready to place an order or just starting to comparison shop. They can tell whether the prospect has already decided to buy the product and is negotiating for the best price or whether he or she is weighing other options. They understand that different things are important to the customer at each step in the buying process. They practice Demand Stage Selling.
Demand Stage Selling is a technique that identifies how far along in the buying process a customer has progressed. This tactic dictates that you deliver the type of presentation that appeals specifically to someone at each particular stage. Demand Stage Selling immediately helps block out irrelevant objections and tremendously improves your closing ratios.
Three Stages Of Demand
Prospective buyers go through several stages in the decision process—unconsciously, to them. First, they have to recognize a need and decide to buy something to fill that need. This decision creates primary demand. You can equate this stage to that little pang of hunger you get in the late afternoon. Your hunger is the need—the first stage of demand.
The prospect then has to decide on a type of product or service that will fill the need they’ve identified, which creates secondary demand. In our example, what are you hungry for? You have choices—a candy bar, a piece of fruit, or some microwave popcorn (which invariably creates more demand from everybody else within aroma range—but that’s another story).
Finally, the customer must decide which service provider or product brand to buy. This is third-level demand. In our afternoon snack example, this is when you decide whether to buy the Snickers or the Milky Way. Your prospect decides whether to buy from you or from one of your competitors. In sales, this third level of demand is the one concentrated on most heavily.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Sunday, February 27, 2011
Strong Selling Ideas Mean Strong Customer Relationships
The creative seller, one who sells ideas for solutions, not just products, builds something of immense value: a super-strong relationship with the customer. When the prospect realizes that you’re there to talk about their needs (not about your need to sell something), they’re much more open to listening to your proposal. When they see the amount of your time invested in their success, they’ll be willing to hear you through completely. And when they discover that you’re also bringing them an idea to use—giving them something of value before they give you any money—their minds will open even wider.
This relationship will build on itself, creating (there’s that word again) a bond between the buyer and seller based on the seller’s ever-increasing value to the buyer. The creative seller gets easier access to decision-makers, moves earlier into the decision-making process, and is seen not as an adversary but as an ally. The creative seller becomes the idea resource for the customer. The buyer turns to the seller not for more products, but for more ideas on how they can enhance their own life or business.
Ideas are powerful things. They’re scarce. They don’t exist until someone creates them. They can be copied, but only after the original idea has been created and sold. And because 1) they are in short supply and 2) the competition can’t come into the market until after the initial sale, the price of an idea is determined solely by the perceived value in the buyer’s mind. No competitive bidding. No price shaving for market share. Just the seller’s ability to create perceived value through understanding the customer’s needs and persuasively presenting an idea to meet those needs.
There are some great tactical advantages to selling this way, too. One of my favorites is that the prospect can reject your solutions. That’s right, the ease with which the customer can say “no” is actually an advantage to idea selling. Let me explain.
Traditionally, sellers walk into the prospect with a presentation listing the many reasons their product should be bought. They present their case to the prospect, giving arguments and evidence much like a lawyer in a courtroom. They then listen to the opposing case (the objections from the prospect) and rebut them as best they can. The whole process becomes about winning a courtroom debate with the prospect. Sound familiar?
When you sell ideas, though, you’ve always got a reason for the prospect to see you again—because you can always come up with a new idea. Remember that an idea isn’t a product—it’s a use, a solution to a discovered need. So, as long as you can come up with different ideas, you’ll be able to get back in to see the prospect with them. You’re not coming back to make the same old pitch; you’re offering something new.
Of course, part of your presentation includes the reasons your product will satisfy the prospect’s needs. You do need to make your arguments. But if you structure your presentation the way I suggest, the prospect will focus on the desirability of your idea instead of on the reasons for buying your product or service. Your “arguments” will go unanswered. And you’ll have the opportunity to present them again as you come back over and over again with new ideas. Same arguments every time, just new ideas to get you in the door.
Another tactical advantage to selling ideas is how the prospect responds to them. The traditional seller makes a presentation full of information about his company’s product or service. So what does the prospect talks about? The seller’s company or his products, of course.
But when you talk about an idea—one that is unique to the prospect—they’ll talk about how the solution applies (or not) to their business or personal needs. Which is what you the seller really want them to talk about. You want to hear the prospect talk about their needs, concerns, desires, and objectives. The more they talk about their needs, the better you’ll be able to shape your solutions to meet them. It’s a powerful feedback loop that works in your favor.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
This relationship will build on itself, creating (there’s that word again) a bond between the buyer and seller based on the seller’s ever-increasing value to the buyer. The creative seller gets easier access to decision-makers, moves earlier into the decision-making process, and is seen not as an adversary but as an ally. The creative seller becomes the idea resource for the customer. The buyer turns to the seller not for more products, but for more ideas on how they can enhance their own life or business.
Ideas are powerful things. They’re scarce. They don’t exist until someone creates them. They can be copied, but only after the original idea has been created and sold. And because 1) they are in short supply and 2) the competition can’t come into the market until after the initial sale, the price of an idea is determined solely by the perceived value in the buyer’s mind. No competitive bidding. No price shaving for market share. Just the seller’s ability to create perceived value through understanding the customer’s needs and persuasively presenting an idea to meet those needs.
There are some great tactical advantages to selling this way, too. One of my favorites is that the prospect can reject your solutions. That’s right, the ease with which the customer can say “no” is actually an advantage to idea selling. Let me explain.
Traditionally, sellers walk into the prospect with a presentation listing the many reasons their product should be bought. They present their case to the prospect, giving arguments and evidence much like a lawyer in a courtroom. They then listen to the opposing case (the objections from the prospect) and rebut them as best they can. The whole process becomes about winning a courtroom debate with the prospect. Sound familiar?
When you sell ideas, though, you’ve always got a reason for the prospect to see you again—because you can always come up with a new idea. Remember that an idea isn’t a product—it’s a use, a solution to a discovered need. So, as long as you can come up with different ideas, you’ll be able to get back in to see the prospect with them. You’re not coming back to make the same old pitch; you’re offering something new.
Of course, part of your presentation includes the reasons your product will satisfy the prospect’s needs. You do need to make your arguments. But if you structure your presentation the way I suggest, the prospect will focus on the desirability of your idea instead of on the reasons for buying your product or service. Your “arguments” will go unanswered. And you’ll have the opportunity to present them again as you come back over and over again with new ideas. Same arguments every time, just new ideas to get you in the door.
Another tactical advantage to selling ideas is how the prospect responds to them. The traditional seller makes a presentation full of information about his company’s product or service. So what does the prospect talks about? The seller’s company or his products, of course.
But when you talk about an idea—one that is unique to the prospect—they’ll talk about how the solution applies (or not) to their business or personal needs. Which is what you the seller really want them to talk about. You want to hear the prospect talk about their needs, concerns, desires, and objectives. The more they talk about their needs, the better you’ll be able to shape your solutions to meet them. It’s a powerful feedback loop that works in your favor.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Tuesday, February 8, 2011
Keeping Your Company in the News
The heart of the publicity process is the press release, a simple document (really!) that tells the media the story you want them to cover. You should send out a constant stream of press releases about everything that happens in and around your business. If you sponsor or participate in associations, clubs, or trade shows, you have an endless supply of topics. The same is true if you support any charities or worthwhile causes like disaster relief funds, local or national.
There are plenty of books with instructions and sample press releases at your local library, but if you consider writing a grammatically correct sentence similar to massaging your own forehead with a ball peen hammer, consider finding a freelancer to do the writing for you. For a surprisingly nominal fee, they’ll gather the information the release should contain, write the page or so of text, and put it in a format the media outlets can use. To find one, try posting a notice at your library, calling the English department at your community college, or checking with your chamber of commerce. You don’t need to make any long-term commitments, so try two or three different writers until you find somebody you can work with.
You can generally handle the distribution of the releases yourself. Once the writer gives you the copy, put it on your letterhead and send it to every media outlet you can think of. Again, your local library can help you find their addresses and contact information. The obvious ones include your local newspaper and radio stations, but don’t forget the broadcast and cable television outlets, too. You never know when they’re going to be in the market for a visual story featuring a snazzy product. There are also weekly papers and free tabloids as well as regional magazines, organization newsletters, and even websites and blogs devoted to local news in many communities. All of these outlets consume huge amounts of content, so they’re always looking for new sources of material.
Try not to limit your campaign to one type of news. Certain editors will be receptive to technical stories about new products and services, but business editors like to hear about expansion and hiring. Consumer affairs editors look for news that will help readers save money, while lifestyle editors want features about interesting people and their flashy lives. Every mention of your company’s name is a plus.
Another reason for you to distribute the releases (and to list yourself as the follow-up contact on the release), is that most reporters will call you to get more information to shape the piece to their specific readership. The electronic media will certainly call, because they’ll want a sound bite or video clip from you to go with the reporter’s story. Even if the media doesn’t pick up a particular story from your release, it may spark a related idea they want to pursue and they’re likely to turn to you as a source if they have your contact information on file.
When the media call, talk to them! They’re usually working against a deadline and can’t spend a lot of time waiting for you to return their calls. For the same reason, they also won’t take up a lot of your time.
Being a newsmaker does have its drawbacks. But dealing with paparazzi and signing autographs is a small price to pay for frequent press coverage that will help build your company’s business.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
There are plenty of books with instructions and sample press releases at your local library, but if you consider writing a grammatically correct sentence similar to massaging your own forehead with a ball peen hammer, consider finding a freelancer to do the writing for you. For a surprisingly nominal fee, they’ll gather the information the release should contain, write the page or so of text, and put it in a format the media outlets can use. To find one, try posting a notice at your library, calling the English department at your community college, or checking with your chamber of commerce. You don’t need to make any long-term commitments, so try two or three different writers until you find somebody you can work with.
You can generally handle the distribution of the releases yourself. Once the writer gives you the copy, put it on your letterhead and send it to every media outlet you can think of. Again, your local library can help you find their addresses and contact information. The obvious ones include your local newspaper and radio stations, but don’t forget the broadcast and cable television outlets, too. You never know when they’re going to be in the market for a visual story featuring a snazzy product. There are also weekly papers and free tabloids as well as regional magazines, organization newsletters, and even websites and blogs devoted to local news in many communities. All of these outlets consume huge amounts of content, so they’re always looking for new sources of material.
Try not to limit your campaign to one type of news. Certain editors will be receptive to technical stories about new products and services, but business editors like to hear about expansion and hiring. Consumer affairs editors look for news that will help readers save money, while lifestyle editors want features about interesting people and their flashy lives. Every mention of your company’s name is a plus.
Another reason for you to distribute the releases (and to list yourself as the follow-up contact on the release), is that most reporters will call you to get more information to shape the piece to their specific readership. The electronic media will certainly call, because they’ll want a sound bite or video clip from you to go with the reporter’s story. Even if the media doesn’t pick up a particular story from your release, it may spark a related idea they want to pursue and they’re likely to turn to you as a source if they have your contact information on file.
When the media call, talk to them! They’re usually working against a deadline and can’t spend a lot of time waiting for you to return their calls. For the same reason, they also won’t take up a lot of your time.
Being a newsmaker does have its drawbacks. But dealing with paparazzi and signing autographs is a small price to pay for frequent press coverage that will help build your company’s business.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Monday, January 31, 2011
The Last Ad Works Best
A common misconception about most advertising is that it creates a need to buy in the customer’s mind. If you run a home improvement center in the real world, the need to buy arises because the customer’s garden hose burst this morning or a skunk dug up their lawn last night. Those events are what brought the customer into the market for a new hose or some insecticide. If they were exposed to your advertising just after those things happened, they are going to be very receptive to your message. Customers tend to respond to the last ad they saw or heard in the window of time after the need arose and just before they make their decision to purchase.
Since skunks don’t attack every lawn in your market the same week, not all customers know they need grub killer at exactly the same time. Some need it this week, some next week; some the week after. The week you’re not advertising, you miss the chance to influence the customers who have chosen to buy that week. Sure, there’s some residual effect from the advertising you did in the previous weeks, but the ad with the greatest impact is the one the customer heard most recently.
So, what does this mean for your advertising budget? Should you spend more? Can you spend less? The answer is a resounding “maybe.” The amount of spending isn’t the issue here. What’s most important is that you find a way to advertise as continuously as possible. Generally speaking, it’s preferable to spread a small budget over more weeks than to bunch it up for more exposure during a shorter period (commonly called flighting). Don’t spend your entire month’s budget on one full-page ad. Run one quarter-page ad every week for four weeks instead. Don’t run 300 radio spots in one week, then remain silent for the next five—schedule 50 spots each week for six weeks. Or even 25 per week for twelve weeks!
This is not to say that you need to advertise at a uniform level year ‘round.You should still vary the amount of exposure you buy according to the sales you expect to generate each period. Nor does this mean that you shouldn’t heavy-up for a weekend sale or other short-term promotion. What it does mean, though, is that one ad by itself doesn’t work. You need consistent repetition to make your advertising work the same way you need lots and lots of seeds to start a lawn.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Since skunks don’t attack every lawn in your market the same week, not all customers know they need grub killer at exactly the same time. Some need it this week, some next week; some the week after. The week you’re not advertising, you miss the chance to influence the customers who have chosen to buy that week. Sure, there’s some residual effect from the advertising you did in the previous weeks, but the ad with the greatest impact is the one the customer heard most recently.
So, what does this mean for your advertising budget? Should you spend more? Can you spend less? The answer is a resounding “maybe.” The amount of spending isn’t the issue here. What’s most important is that you find a way to advertise as continuously as possible. Generally speaking, it’s preferable to spread a small budget over more weeks than to bunch it up for more exposure during a shorter period (commonly called flighting). Don’t spend your entire month’s budget on one full-page ad. Run one quarter-page ad every week for four weeks instead. Don’t run 300 radio spots in one week, then remain silent for the next five—schedule 50 spots each week for six weeks. Or even 25 per week for twelve weeks!
This is not to say that you need to advertise at a uniform level year ‘round.You should still vary the amount of exposure you buy according to the sales you expect to generate each period. Nor does this mean that you shouldn’t heavy-up for a weekend sale or other short-term promotion. What it does mean, though, is that one ad by itself doesn’t work. You need consistent repetition to make your advertising work the same way you need lots and lots of seeds to start a lawn.
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Monday, January 24, 2011
Stage Fright Is Your Friend
Do you suffer from stage fright? Good! You’ll be a more effective speaker if you do.
I’ve done thousands of sales presentations, speeches, seminars, and live radio and television appearances—and I get that little flutter in my stomach, sweat on the palms, and shortness of breath every time. I welcome them as signs that my energy level is going to be high—I want the extra energy that comes from an attack of stage fright.
Stage fright is your friend—all you have to do is control it. The first step is to recognize the symptoms as nothing more than a small rush of adrenaline. The next step is to make a conscious choice to focus your excess energy on the presentation you’re going to make.
To control the intensity of your stage fright symptoms before your presentation, take the physical edge off them by doing some simple isometric exercises. Press your palms together—hard—for thirty seconds. Grip the arms of your chair as hard as you can for another half minute. This will burn off some of that excess adrenaline in your system while leaving you the energy you need to convey enthusiasm.
Now take a couple of deep, long breaths, using your diaphragm to fill your lungs completely. Let each breath out slowly to a count of ten. This will steady your voice and make you ready for a powerful opening statement.
Your stage fright has now become a reservoir of energy that you can tap into when you need it. You’ll find that you’re better focused and your presentation will be much more dynamic. You’ve made stage fright your friend.
Public speaking isn’t everyone’s forte, but most gallery owners are like Theresa Abel, owner of The Artisan Gallery in Belleville, Wisconsin who says, “I love talking to people about the work if they’re really interested.” She suggests turning that skill into group presentations because, “It’s good for business because the more information and knowledge you give your customers, the more they appreciate it and the more they want to own a piece and take it home.”
Catherine Bert, owner of Bert Gallery in Providence, RI, takes it a step further: “People are very intimidated by the art world. They feel they are unprepared to experience the visual arts and this is breaking down those barriers. We introduce people in very non-threatening ways to the visual arts.” The result is good for everybody concerned. “They fall in love with what I have been in love with for many years: creative minds and looking at ideas and objects in the world from different artists’ perspectives.”
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
I’ve done thousands of sales presentations, speeches, seminars, and live radio and television appearances—and I get that little flutter in my stomach, sweat on the palms, and shortness of breath every time. I welcome them as signs that my energy level is going to be high—I want the extra energy that comes from an attack of stage fright.
Stage fright is your friend—all you have to do is control it. The first step is to recognize the symptoms as nothing more than a small rush of adrenaline. The next step is to make a conscious choice to focus your excess energy on the presentation you’re going to make.
To control the intensity of your stage fright symptoms before your presentation, take the physical edge off them by doing some simple isometric exercises. Press your palms together—hard—for thirty seconds. Grip the arms of your chair as hard as you can for another half minute. This will burn off some of that excess adrenaline in your system while leaving you the energy you need to convey enthusiasm.
Now take a couple of deep, long breaths, using your diaphragm to fill your lungs completely. Let each breath out slowly to a count of ten. This will steady your voice and make you ready for a powerful opening statement.
Your stage fright has now become a reservoir of energy that you can tap into when you need it. You’ll find that you’re better focused and your presentation will be much more dynamic. You’ve made stage fright your friend.
Public speaking isn’t everyone’s forte, but most gallery owners are like Theresa Abel, owner of The Artisan Gallery in Belleville, Wisconsin who says, “I love talking to people about the work if they’re really interested.” She suggests turning that skill into group presentations because, “It’s good for business because the more information and knowledge you give your customers, the more they appreciate it and the more they want to own a piece and take it home.”
Catherine Bert, owner of Bert Gallery in Providence, RI, takes it a step further: “People are very intimidated by the art world. They feel they are unprepared to experience the visual arts and this is breaking down those barriers. We introduce people in very non-threatening ways to the visual arts.” The result is good for everybody concerned. “They fall in love with what I have been in love with for many years: creative minds and looking at ideas and objects in the world from different artists’ perspectives.”
Dave Donelson distills the experiences of hundreds of entrepreneurs into practical advice for small business owners and managers in the Dynamic Manager's Guides, a series of how-to books about marketing and advertising, sales techniques, hiring, firing, and motivating personnel, financial management, and business strategy.
Monday, January 10, 2011
What's a Lifetime Customer Worth?
Next time you’re thinking about the worth of a customer, consider a business like Sueann Blackwell’s automotive restyling shop in Merrillville, Indiana. At Merrillville Restyling, most customers are serial car owners. They don’t just trick out one set of wheels and live with it; they buy, sell, trade, and do it all over again and again. Do the math on the customer who gets a different car every couple of years. If the shop’s average job is $1,500 and the customer stays with them for twenty years, he’ll bring ten jobs—or $15,000—through the door. If the gross margin (before overhead expenses) is 40%, the shop owner will put $6,000 in the bank.
Plug in your company’s numbers and think about that the next time you’re tempted to brush off a newbie.
One temptation to resist is the urge to make the customers’ decisions for them. It’s easy to limit the number of options you show them in the interests of time or from the mistaken belief that you’re clarifying the issues for them. The problem, of course, is that later they may discover that you’ve done so and misunderstand your motivations. It’s fine to guide them in their decision-making, but don’t give them any reason to think you’ve shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They’ll feel better about themselves—and about doing business with you.
That’s the goal, of course, to make the neophyte customer so comfortable with your business that he’ll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
Plug in your company’s numbers and think about that the next time you’re tempted to brush off a newbie.
One temptation to resist is the urge to make the customers’ decisions for them. It’s easy to limit the number of options you show them in the interests of time or from the mistaken belief that you’re clarifying the issues for them. The problem, of course, is that later they may discover that you’ve done so and misunderstand your motivations. It’s fine to guide them in their decision-making, but don’t give them any reason to think you’ve shortchanged them.
Another thing to keep in mind with newbies is that praise goes a long way toward making them feel good about their decisions. Think about Little League for a minute. Which coach got the most out of his team, the one who screamed at you about errors or the one who applauded when you did something right? The same is true for a new customer. As they make each incremental decision that goes into drawing up the specs for their order, confirm each decision as a good one. They’ll feel better about themselves—and about doing business with you.
That’s the goal, of course, to make the neophyte customer so comfortable with your business that he’ll come back the next time he has an itch that needs to be scratched. Keep in mind that the second job will be easier to explain than the first one and the third one will be easier than the second, and so on. That makes the time and patience you spend on the newbie customer an investment, not an expense.
Dave Donelson, author of The Dynamic Manager's Guides a series of how-to books for business owners and managers.
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