Month: June 2011

What Did You Learn From the Last Sale You Lost?

Post author By Ethan Theo
Post date June 20, 2011

Article Contributed by Mark Hunter

My mom always used to tell me how we learn more in life from our failures than we do from our successes, yet for too many of us in sales this concept doesn’t seem to sink in.

I’ve lost plenty of sales in my life. If I wanted to get really down on myself, all I’d have to do is take a piece of paper and start writing down as many as I could remember. If I wanted to go into a complete state of despair, all I’d have to do is to write down next to each sale I lost the amount of commission I failed to receive because of the lost sale.

For this simple reason too many of us in sales choose not to dwell on what didn’t happen. Instead, we merely move on.

It’s much easier to move on than dwell on the past, and I’m a firm believer that dwelling on the past doesn’t do anyone any good. If you want to damage your sales motivation, go right ahead and dwell all you want.

As much as we can’t dwell on the past, we do need to spend a few minutes doing an autopsy on the lost sale and learning from it. If we don’t learn from each sale we fail to close, then we’re committing ourselves to a pattern of losing more sales.

The key I’ve found to the process is to do the autopsy on the failed sales call right away. The sooner you can do it, the sooner you can apply what you’ve learned to the next sales call.

The only downside to doing it quickly is you have to make sure you’re in a stable frame of mind. I’m not meaning to be rude with this comment, but you can’t think clearly if you’re so hot emotionally over losing the sale. If you are worked up over the lost sale – wait till you calm down. Then do your autopsy.

Ask yourself the following questions:

Was I able to get the customer to state their key needs and desired benefits?
Why specifically did the customer choose not to buy from me? How do I know that?
What were two things I know the customer appreciated about me?
What did the customer ask and how did I answer? What can I learn from the questions?
What were all of the customer’s objections and how did I respond to them?
Did the customer clearly understand my value proposition? How do I know that?
What closing technique did I try? How specifically did the customer respond to it?
What did the customer agree with me on? How can I leverage this for future sales?
What is my next step with this prospect / customer?

Take the time to answer these questions. Doing so will provide you with key information you need. Also, never hesitate to go back to the customer after they’ve turned you down and ask them why they didn’t select you. Be sincere in how you speak to the customer and be appreciative for what they tell you.

This is not the time to be defensive or attempt to convince the customer they’ve made a dumb decision by selecting someone else. Your ability to be professional and appreciative in listening to what the customer shares with you will do more than anything else to help ensure you have a good relationship going forward with that person.

It’s been my experience both personally and professionally that by doing this process right, you can position yourself to become the salesperson these individuals turn to in the future.

The beautiful thing about this entire process is you come away with two major outcomes.

First, you find out things you can do differently to help you with other customers. Second, you deepen your relationship with the customer you weren’t able to close, setting yourself up to potentially close with them next time around.

About the Author:

Mark Hunter, “The Sales Hunter,” is a sales expert who speaks to thousands each year on how to increase their sales profitability. For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on www.Facebook.com/TheSalesHunter, www.Twitter.com/TheSalesHunter and www.LinkedIn.com/in/MarkHunter. Reprinting of this article is welcomed as long as the following is included: Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, © 2011

Planning & Management

The One Page-Pitch: Four Factors of a Business Overview That Will Leave Them Begging for More

Post author By Ethan Theo
Post date June 18, 2011

Article Contributed by Tim Eyre

Writing an extensive business plan is hard. Distilling it down to one page is even harder.

Just as writing a novel may feel easier than writing the one-page synopsis, sitting down to discuss your project at a meeting full of people may be less intimidating than delivering the proverbial elevator pitch to one person. Being concise is a challenge when 1) you’ve been thinking about every aspect of your idea for years and you’ve got plenty to say, 2) you’re so enthusiastic about your idea you find it hard to encapsulate its awesomeness in words or limit it in any way, and 3) you feel extreme pressure because so much is riding on this one piece of paper.

I’ve been told visualizing a nonthreatening scene or activity helps relieve stress, and I’ve been trying it lately. I still have a ways to go in my technique, but when a friend approached me the other day with a long and rambling business pitch to critique I found myself searching for tools to help him focus. He was on the right track – while an in-depth business plan is necessary, it’s smart to create a shorter pitch to give to potential investors, clients, friends, and the press. These busy people are much more likely to have a positive response if they can grasp your business idea in only a moment rather than having to add another book to their to-be-read pile.

So my admittedly hokey nonthreatening transference technique for writing a one-page pitch was well…pitched. I told my buddy to think of it like a baseball team.

Cover the Bases.This is the who, what, when, where, and why – the basics that you must have or there’s no game. Right off the bat (I couldn’t resist) at the beginning of your one-pager, the following elements must be directly addressed.Who: the name of your new company, business, or product.
What: the service or function your business or product provides.

When: the proposed timeline for the business or production to begin.

Where: the location of your business and whether it’s brick and mortar or online.

Why: the purpose of your new business or product, your mission statement.
Consider the Fans.Think about your potential customers. Supply and demand is a factor you can’t ignore. So make sure you answer the following.What is your market?
Who are your customers?

How will you reach customers and communicate to them what you have to offer?

What issues face your customers that you can solve?

What is going on in the lives of your potential customers right now that would make your idea appealing to them?
Build up the Franchise.The Yankees, the Florida Marlins. Not the same. Yankee Stadium, Pro Player Stadium, I mean Sun Life Stadium. Not the same.What is your unique brand?
What makes your team special?

What about your team will make people want to buy your jerseys?

What is your business or product’s competitive advantage?

What do you have that will help you beat the competition?

What kind of personnel are you assembling?

What are the stats of your top players?
Manage the Front Office.There’s a reason why all the guys in the office have gray hair and wrinkles. The bottom-line must be addressed. Like it or not, you’ve got to face these tough questions, make some difficult decisions, and have a realistic grip on the following:What kind of capital is it going to take to get your business off the ground?
What are your financial goals and milestones for the company?

What are your plans for the future of the business?

How is your business going to grow?

These questions are simple, and yet answering them is not easy. Figure out the answers. That will be the hard work. Then present them as clearly and succinctly as possible. Not only will the effort of making a game plan give you something compelling and clear to distribute and communicate quickly the aim and essence of your business, but having that one-pager on hand will also provide you with a reference for yourself. When you are at a loss to explain or rein in your explanation of your idea, you will have the plan to keep you focused and to help you keep your eye on the ball and your head in the game.

About the Author:

Tim Eyre works in the self storage industry, regularly traveling to see locations like County Club Hills self storage.
In locations like Chicago self storage, Tim helps midwesterners store seasonal equipment when its not being used for outdoor activities or construction projects.

Planning & Management

Why Your Past Success is Hurting Your Future Success – Part 1: Don’t Settle For Less Than You Deserve!

Post author By Ethan Theo
Post date June 17, 2011

Article Contributed by Lisa Cherney

Being in my 12^th year of business now (wow, 12 years! I feel so blessed!), I can actually reflect and see how far I’ve come. I’m seeing the patterns now, the cycles that have defined and shaped my business – and it has changed so much in the past year! It is so different now than when I first started. Back then, I had a vision of what my dream business looked like. I was driving home with my career in a box on the passenger seat of my car, after having just been “kicked out” of the corporate world, and I could see what I wanted for my future. But I didn’t know – yet – how to get there.

So I started my business with the same corporate mentality that I came from, and found myself trapped – again. Only difference was, the boss was me this time! Ask yourself this: Does my business feel the way I want it to feel? This may sound illogical, but you don’t need to work 80 hours a week to make the kind of money you want. I want you to claim the peace and prosperity that I have for your own business, but first you have to let go of this mindset that so many of us have- that we have to work those kinds of hours to achieve the success we long for. So here’s the first reason it took me so long to start making big money, and doesn’t it sound familiar??

Reason #1: “You are used to being unhappy or compromising.”

It’s true! Old habits die hard. The people that I’ve coached might have had success in a job, a corporate career or someone’s business, maybe even their own, but it wasn’t really their passion. They just kind of fell into it, but deep down they knew it wasn’t what they were meant to do. Now, I know you truly want your dream business, but you’re used to being unhappy… you don’t allow yourself to enjoy it fully! You trade one awful situation for another.

Are you living the lifestyle you want? Don’t settle for anything less than you deserve! Life is short, so you need to develop a low tolerance for being unhappy. And you can start right now by taking pen to paper and ask yourself this question:

What are you tolerating in your business or in your life that you are no longer willing to tolerate?

This question will lead you straight to Divine Juice Principle #1 – Make sure you are doing what you love every minute.

Crazy, huh? What areas in your business – and consequently your life – need to change for you to enjoy and LOVE what you’re doing? Make a list of what you’re no longer willing to tolerate. For myself, I needed a really good reason to change – my daughter. I made some tough decisions, and actually eliminated a whole division of my business. Working 80 hours a week just wasn’t an option anymore, so I worked toward a part-time business model. I want you to take some time today and go through this 3-step exercise, either on paper, or at the very least, in your mind

1. How are you marketing, and who are you marketing to? Are you working with your Ideal Clients? Or are you spreading a net so wide that you’re taking filler jobs?

2. Re-think your business model – how many hours you’re putting in, how much you’re earning, etc… Is it working for you? What works and what doesn’t? Maybe you’re not charging enough. Do you even have a business model?? Figure out what items you can begin to tackle, and start making those changes today. It might be a complete overhaul, or it could mean just tweaking those areas to make them fit. After all, this is your dream business! Make it work for you.

3. Really analyze the services you’re providing. What exactly is it you are doing that’s making you happy, and making you money? Are you taking on work that you don’t really want or love because you need the money?

How you’re marketing, your business model, and the services you’re providing – this is where you start re-defining your future. This isn’t easy. But it can make the difference between doing what you love – and just doing it because you have to. Members of my Divine Juice Inner Circle have learned this, and it feels like such a luxury when you move from “I have to do this because I need the money” to “I want to do this”. Use the 1 to10 scale as a filter. Do the 10’s! Start saying no to the 6’s and 7’s that have a paycheck attached to it. Saying no to the 7’s allows you to pursue your dreams. It’s not overnight, but you can work toward the 10’s every day. Starting today!

About the Author

Lisa Cherney, a.k.a. the Juicy Marketing Expert, founded Conscious Marketing 12 years ago to help small business owners find their authentic marketing voice, attract their ideal clients and increase their sales. Following her own Stand Out & Be Juicy program, which centers on owning your unique self and laser-focus marketing, Lisa has tripled her income while working part-time.

Prior to Conscious Marketing, Lisa worked with many Fortune 500 companies, including AT&T, Lipton, Nissan, Blue Cross and Equal. She is a highly sought after speaker and often shares the stage with experts such as Jack Assaraf (The Secret), Jack Canfield and Jill Lublin. Learn more about Lisa at www.consciousmarketing.com or call 887-771-0156.

Finance & Capital

Expanding Customer Base by Accepting Credit Cards

Post author By Ethan Theo
Post date June 14, 2011

At a day in age were Smartphone applications have been developed to ease and quicken check out processes; cash only establishments are becoming a thing of the past. Sure each small town will have their Ma and Pa nooks that have been around since the dark ages who can afford to only accept cash because of their developed reputation for good customer service and the fact that customers know ahead of time that cash is the only accepted form of payment. Not accepting credit and debit cards as a form of payment is hurting the expansion of a business’s customer base. Credit card terminals are becoming easier, safer, and more adaptable for any business to use. With a wide range of terminal types available, from traditional ones that are attached to a phone line, to wireless, and even to mobile, a business should have no problem finding one that works for them.

Popularity of Paying with Plastic

Plastic is rapidly becoming a popular form of payment. With the percent of sales made with credit/debit cards closing in on the 50 percent mark, the demand of credit card acceptance as a form of payment is getting tremendous. With the conclusion that one of two customers would prefer to be paying with credit, does it make sense to in convince them with a cash only establishment? Accepting credit cards not only speeds up the business transaction, but also provides the customer with a larger range of spending funds. A customer may only have twenty dollars cash in their pocket to spend. At a cash only establishment that twenty dollars is the most they can spend. By simply accepting credit cards, that customers spending ceiling goes from twenty dollars to what could possibly be thousands. Accepting credit cards also expands your customer base and can create more long lasting beneficial relationships.

State of the Art Processing Equipment

Modernize your business with the newest in technological advances when it comes to payment processing machines. The newest credit card terminals offer the latest technology which maximizes the efficiency and accuracy of the payment.

Terminals, such as the VeriFone Vx510, are easy to use. The VeriFone Vx510 has an ATM-style interface with an internal PIN pad that will virtually eliminate keying errors. This terminal will run smoothly as it has 12 MB of memory, Ethernet capabilities, and has an integrated thermal printer making it both customer and cashier friendly.

Another innovative option is a wireless terminal. A wireless terminal provides businesses with the option of credit card processing on the go. With its small physique and ease of use the VeriFone Nurit 8020 provides its clients with what they want in a portable payment processing device. The Nurit 8020 has a large backlit graphical display, a keypad, and has a touch screen with built in signature capture capabilities that will allow one to effortlessly and timelessly approve of their transactions without the hassle of scrambling for a pen. Want to pay debit? No problem, the device has a built in PIN pad and a quick, quite, and graphical thermal printer. This device has ideal use for businesses that have a moving customer base such as free lance artist, general contractors, and even street side vendors.

Whether your business is just starting out, or you’re a business owner upgrading the company you already have, credit card processing is a huge aspect in any contemporary establishment. The efficiency and precision that your company can be experiencing in its day to day transactions by obtaining the appropriate credit card processing services is surprising. Don’t let another customer walk away because your business does not accept credit card payments.

Sales & Marketing

What is Your Customer’s Price Tolerance Ratio?

Post author By Ethan Theo
Post date June 13, 2011

Article Contributed by Mark Hunter

Every customer has a price range where they are willing to make a decision without any further thinking. I refer to this as the Price Tolerance Ratio – also known as the PTR.

Knowing your customer’s PTR is critical. I believe it is one of the major obstacles salespeople fail to comprehend. As a salesperson, when you don’t understand a customer’s PTR, at least one of the following results is inevitable:

You offer a price that does not maximize the profit potential.
You get the order but encounter resistance from the customer that hinders the relationship.
You encounter resistance that leads to spending too much time on the selling process and ultimately no order.

Let’s look at each of these individually, starting with the first one where the price offering does not maximize the profit potential.

I start with this one because it is the most common. The salesperson rarely finds out the price is lower than necessary until long after the sales is completed – or worse yet, they never find out.

The only way around this is by asking the customer early in the relationship, before they’ve expressed any intention to buy, how they determine value and what their critical needs are. Many times, trying to ask these questions during the sales transaction itself is too late, unless the customer is experiencing a significant issue as to why the order must occur.

The reason I say this is because once the customer has determined they need to buy, they many times become focused on seeing what it will take to get a lower price. If you, the salesperson, ask them a question about value at this point in the sales process, the customer may very well use the question against you.

Take the time to ask the customer why the order is important and what risks they feel they would encounter should they not receive it on time. Ask them how their order fits into the overall scheme of what they do and what their customers do (if you’re in a B2B environment).

As a salesperson, if you can identify value or risk in other parts of the supply-chain, you can leverage this information during the sales process and increase the amount the customer is willing to pay (essentially widening their PTR).

The key is to find out as much information about the customer as you possibly can early in the sales process. Also, you need to understand how critical time is to their process. Obviously, the more critical time is to the customer, the wider the customer’s PTR will be. The impact of time could be reflected in how quickly they want to order.

By thoroughly understanding the customer’s PTR, you will be able to effectively price your product and/or service. Pricing too low means you leave profit on the table; pricing too high means you don’t get the order. There is no magic formula. It comes down to your level of knowledge and your confidence.

The second scenario a salesperson may encounter with regard to PTR is that they get the order, but with resistance that ultimately hinders the relationship. Resistance is not always a bad thing. I believe strongly that if you don’t encounter some customer resistance from time to time, then you have not truly pushed the process to the point of being able to maximize profit.

When you encounter resistance, you first have to determine if the resistance is real or superficial. Many times the customer is merely venting as a way to assert their control.

The best way to measure if the resistance is real or superficial is to see if they continue to express their concerns about price on multiple occasions. If price comes up only once or twice, then you can reasonably assume it is merely the customer venting. You can overlook it and continue with your sales process, knowing your level of service and support is going to overcome any pricing perception.

If the customer does carry on regarding pricing, then the resistance is real and it will slow the sales process. You then can adjust accordingly.

The final reason knowing the PTR is essential is it prevents you from spending too much time with someone who is nothing more than a customer from whom you can’t make any money.

Early in the prospecting and sales process, you must begin determining the customer’s PTR. The easiest way is by simply asking them what they’ve been paying for services in the past and what their expectations have been for the companies they’ve been using. If you are not direct with questions like these, you will waste time chasing customers you ultimately do not want.

Price Tolerance Ratio (PTR) is a new concept. I am pleased to be one of the first to educate people on this. Since explaining this concept, we’ve seen salespeople and companies significantly improve their profitability.

If you want to improve your bottom line, begin now to identify the Price Tolerance Ratio (PTR) for each of your customers. Waiting until you close the sale is too late.

About the Author: