Category: How-To Guides

Article Contributed by Bill Bachrach

The management team cannot believe that their company’s profitability continues to decline at a consistent rate, quarter after quarter.  “How can this be?” says the Chief Marketing Officer.  “Five of our customers have named the company supplier of the year!  The crystal bowls and the plaques with our name on it are displayed in the front lobby.”

Most C-Suite executives are very proud of their awards, yet they have difficulty understanding why profitability continues to decrease.  As a consequence, the executive team focuses its efforts on minimizing their internal cost structure. But these efforts do not seem to be enough to turn the company’s profitability around.

Instead, executives need to know how to break a spiraling downward financial situation and forge a new path that will accelerate growth and profitability. To do this you need to understand:

• The forces affecting the profitability of the product line
• Your true profitability drivers
• How to create a pathway to accelerating growth

What Forces Affect Your Product Line Profitability?

The ability to make money comes down to what the customer is willing to pay for your product relative to their needs and competing products.  One method to determine the value of the product is to use a Product Line Profitability model, which looks at the difference between the product sales and the production and operating costs. In this model, the product sales are dependent on the markets and regions where the products are sold including their past and future sales projections. The product production costs and operating expenses are comprised of a number of costs including material costs, labor costs, support costs, and capital equipment costs.

The Product Line Profitability model provides the building blocks for identifying the business’s strengths and weaknesses as it relates to the profitability drivers. A product line check-up is good practice to understand how the internal and external forces are changing your business.

Now, the Product Line Profitability model provides the executives with the tools to analyze the organization’s cost structure today and to begin developing a landscape for profitability.  But the model itself is not enough to truly get at what are the underlying drivers to accelerate profitability and to understand what needs to be leverages for growth

What Are Your True Profitability Drivers?

Identifying and understanding the influence of the internal and external forces that drive the acceleration of growth must include the analysis of  these five areas:

1)      Sales channel profitability

2)      Product line price fluctuation

3)      Product line material and labor cost

4)      Organizational efficiency

5)      Product line development time and traction.

A typical development during a product’s life cycle is the entry of a competitor’s product line in the market with similar form, fit, and function that now competes against your product. What happens now?  Everything is decreased – your product line price and profitability, your sales channel profitability and your organizational efficiency. The product line material costs may need to be decreased and the product line may need to be re-designed.

Your profitability drivers vary depending on the product, market, and industry. But once you uncover these driver, you will be able to pinpoint the business and organizational issues that need to be dealt with first as you develop a business growth acceleration game plan for your product lines.

How to create a Pathway to Accelerating Growth

As your executives reviews the profitability drivers as well as the internal and external forces for each product line, a picture will emerge on the strengths and weaknesses of the business and organization.   Analysis should also include changes that concentrate on making money for the business as opposed to whether or not a product or customer will be eliminated.  This picture, then, becomes the basis for unifying the company’s business strategy and the day-to-day game plan for execution to make money.

A map then needs to be drawn step-by-step to ensure the company’s growth is on an accelerated path to growth.  However, this pathway to accelerating growth does not happen instantaneously. It evolves over a period of time with direction, leadership, focus, dedication, and discipline. Most importantly, everyone (from the CEO on down) must embrace the chosen pathway, as they will need to execute it.

Follow these tips and you will accelerate the growth of your company’s wealth and value. This is the same approach that I took as a C-level executive to guide companies in electronics, manufacturing and high-technology industries to higher profits and significant returns for owners and investors.

About the Author:

Revenue and Profit Growth Expert, Bill Bachrach, has led numerous companies in various C-Level positions and works with Boards of Directors and Investors who want to accelerate their company’s wealth and market value.  His firm has developed a 5 Step Model for Profitability that quickly creates a pathway for improved revenues and rapid market expansion.  To learn more about this model and uncover the #1 secret to building momentum for growth and profitability, check out Bill’s free articles at: http://www.linkedin.com/in/billbachrach01

Article Contributed by Jeremy Ulmer

“My father said: You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.” ~Getty, J. Paul

1. Create An Agreed Upon Agenda. Determine the following: What needs to be resolved? Who is involved? What are the major issues? What are the time frames?

2. Resist Committing Too Early. Do not lock in your pricing or commit to other items until everything is on the table and negotiated.

3. Resolve Any Major Issues Early. If the prospect has some major concern about your organization, it is best to uncover this early, so that it is not brought up at the end of the negotiation which will weaken your position and you’ll be tempted to give in to more concessions.

4. Determine What Can Be Shared. Determine the information you will disclose or not disclose with the prospect. Also, consider what types of information they are open to sharing and the information they are keeping from you.

5. Focus On Needs & Requirements. Don’t get caught up on the price alone. Ask to put price aside for a moment and address all other obstacles to find a solution.

6. Establish Value For Your Service or Product. Understand needs, challenges, goals, and then provide a solution.

7. Throw Your Ego Out The Window. If you view the negotiation as a personal victory or loss, your ego is involved and can make it difficult to remain objective during the negotiation process.

8. Buy Yourself Some Time If Needed. Be upfront, but if you can’t approve something yourself and you need a sales director to approve it for you, let the prospect know you need to check with your manager before making the change to the agreement.

9. Plan Ahead. Come to the table armed with where you are willing to give and where you simply can not make any changes.

10. Know When To Walk Away. You and your sales management team should have clear guidelines for what is profitable business and what is not. Be sure to know when you need to end the negotiation if it will be a loss to your company.

11. Be Patient. If you are in the middle of negotiations and significant decision are being made, don’t rush to finalize a decision in that meeting. Consider requesting a break to think it over and discuss with members on your sales team and schedule a follow up meeting.

12. Look At The Negotiation From Various Perspectives. Think about it from your prospects position and request the opinion of your sales manager or sales peers.

13. Make Sure You Are Talking To The Decision Maker. As sales professionals know, if you are not working with the decision maker, especially when it comes to negotiating the final deal, you are wasting your time.

14. Close Your Mouth. Learn to talk less and listen more. The more you listen and ask questions the better you will understand and be able to position your company effectively.

15. Provide Case Studies. If the prospective client has never worked with you before they may have some concerns. Bring written case studies of similar clients that your organization has helped. It will build credibility and help you initiate the partnership.

16. Remember To Give & Receive. If you are offering concession after concession without any commitments in return you are going to get run over in the negotiation. Remember that for each concession you make, there should be some commitment or concession made on the other side.

17. Be Optimistic, Confident & Positive. Expect more and receive more. Think big and aim high. It is easier to negotiate down, than up.

Article Contributed by Jeremy Ulmer

Criticism from your sales manager (or from anyone) is not easy to handle, however, learning to deal with it can be a valuable skill. Here are some ideas to practice and keep in mind next time you receive criticism.

Take A Deep Breath & Pause Before You React

If your first reaction is to lash back at your sales manager or to become defensive, take a moment before speaking. It is natural to feel a little angry or to be on-guard. However, if you can teach yourself to take a moment before simply reacting, it will give a chance for logic to sink in and not just raw emotions. There is certainly nothing wrong with emotions, but when people are upset, they are more likely to say things they will regret later on.

Turn Lemons Into Lemonade

Sure, it may sting to hear negative feedback, but in most criticism, you can find a suggestion for improvement. For example, this criticism: “You are talking too much on your sales calls with prospective clients and just overloading them with too much information.” Can be interpreted as: “I need to listen much more, ask more questions, and talk less.” That’s just one example of course — you can do that with just about any criticism. View criticism as challenge to improve your sales skills.

Say, “Thank You For The Feedback.”

Even if your boss is tough on you, just say “Thank you.” Your gratitude will probably catch them off-guard and they may even respect you more for taking it so well. Not everyone is as positive as you may be, and your manager might just be having a bad day, (not an excuse, but be aware of this) or have a much more negative personality than you.

Learn And Integrate

After seeing criticism in a positive light, and thanking the critic, don’t just go back to selling as usual. Decide what the key take-away is to improve upon, and determine how to integrate the new learning into your work.

Don’t Stoop Down To His or Her Level

It is so easy to take criticism as a personal attack. View the criticisms as an attack on your sales skills, not on you as a human being. You will be tempted to attack the attacker, but if you do this, you are just stooping to his or her level. When you do this, you are no better than the attacker and it will leave you with a bad taste in your mouth. Be the bigger and better person. Rise above the critical comments and respond in a calm and positive manner…You will feel better about yourself at the end of the day.

Give The Critic Some Background When Needed

Sometimes the situation might be much more complex than it appears on the surface. After you have followed the above steps, know that is OK to give more background that might be important for the critic to understand. For instance, You could say, “I understand what you’re saying, thank you for the feedback, and I want to make this work. But last time I tried what you are recommending, it didn’t work because of ________. What do you suggest I do to make it work this time?”

Bonus Tip: Keep All Of This In Mind When YOU Are The Critic

Remember what it feels like to be on the receiving end of criticism when you are the one dishing it out. Not everyone will handle it as well as you, so make sure you are clear that you simply want to help.

About the Author:

Jeremy Ulmer is one of the most dynamic and requested sales experts in the country. His company specializes in working with sales management, individual sales performers, and sales organizations to transform their sales results. They deliver customized sales coaching programs and corporate sales training. Sign up for free sales tips and free sales webinars at: http://www.SalesCoachingHabits.com

Article Contributed by Melonie Dodaro

Just think about it… If you are concerned about how you look, you’ll always have a handicap.  Whether you’re networking, negotiating a deal, or making a presentation on stage, your lack of confidence puts you at a disadvantage.

1) You avoid the spotlight

Chances are that you’re also afraid of the spotlight that could come with success. How would you really feel about being on TV?  Everybody looks heavier on TV, they say, and if you’re already self-conscious about your weight, you may try to avoid any opportunity involving a camera, at least subconsciously.  Can you see how that can hold you back?

2) You lack the crucial ingredient you need to attract others

There’s more.  As long as you’re being plagued by that niggling fear that you’re looking less than your best, you will lack that air of confidence that is so attractive to others.  And it gets even worse — you have reason to be concerned.

3) People judge others by how they look

It’s a fact of life that people really do judge us by the way we look.  The more attractive we are, the more strongly people are drawn to us.  Studies have shown that people who are more attractive get promoted more quickly and make more money. You can insist on political correctness all you want, but it isn’t going to give you that raise.  And it’s certainly not going to bring you more clients and customers.

Of course I agree that it’s not fair to be judged by the shape of your body, but belaboring that fact is not going to give you the results you desire.  If you want to achieve success and abundance, there’s really just one question that’s helpful: “What are you going to do about it so you can achieve the benefits below?”

The Benefits of Taking Action

1) More confidence

I know how you feel – because I used to be more than 30 pounds overweight. Before I finally claimed the fit and healthy body I truly wanted, I was down and depressed. Now, I love meeting people and I even love being on stage and in front of the camera. There are no longer any worries about how I look. Instead, I’m free to focus on the reason I’m there.

2) More physical energy

You see, most people spend up to 70% of their energy just digesting their food.  That doesn’t leave too much for doing the kind of things that will boost your success.  So if you can reduce that percentage to 50% by making your metabolism more effective, you’ll practically double the energy you have available.  Imagine the competitive edge all that new energy could give you.

3) More emotional energy

And you’ll gain more energy in other ways as well…  How long does it take you to find clothes that make you look good — or at least as good as possible?  Finding clothes that flatter a less than fit body can be a true project.  Not only does it require extra time to go through your closet or a store’s offerings to find something that camouflages those “bad” parts, but it also takes a lot of energy.  How so, you may wonder…

Most people really beat themselves up in dressing rooms.  Looking at the unvarnished truth in full-length mirror can be challenging indeed.  But do you know how much emotional energy all that self-criticism can take?  And chances are, you’re also doing the same thing every morning when you decide what to wear for the day.

4) Success and abundance

You will begin to thrive in all areas of your life once being self-conscious about your body no longer holds you back.

Now, if you are ready to thrive, I’d like to invite you to claim your free Consumer’s Awareness Guide and MindBody FX Book Preview which will give you the support to finally claim your fit and healthy body, double your energy, and boost your confidence so you can achieve true abundance.

About the Author

Melonie Dodaro is an author, coach, and founder of MindBody FX that specializes in changing the way women executives and entrepreneurs think so they can achieve permanent weight loss. Learn how to harness the power of your mind to experience the weight loss results you desire. Claim your FREE MindBody FX Lifestyle Book Preview and Consumer Awareness Guide at http://www.WeightLossConsumersGuide.com.

Article Contributed by Joanne S. Black

If you want to attract more clients, then you need to fire the pain-in-the-ass (PITA) clients who do nothing but suck up your time and energy. You know exactly who I’m talking about — the time-wasting, buy-nothing customers.  By dumping them, you free up time to develop and care for the ones who really matter.

Why You Should Fire the PITA Customer

You can see the warning signs a mile away as they…

•    Push you on price
•    Threaten to take their business to your competitors
•    Make unreasonable demands
•    Masquerade as the decision-maker
•    Don’t return phone calls; yet expect fast, complete and reliable delivery of your service.

These clients do nothing more than create added stress that you don’t need in your life, PITA customers are never happy. They drain your energy, test your patience, and waste your time. They demoralize your entire sales team. Yet companies accept this bad business continually, thinking bad business must be better than no business.

But is it?

Dump the Hidden Costs and Start Attracting More Clients

When organizations take on bad customers, they pay a hidden cost as they leave thousands to millions of dollars on the table. By focusing on PITA clients, many business owners are losing the opportunity to use those resources going after and servicing the phenomenal clients they want and need to make money! Collect too many PITA customers and watch your profits dwindle… not a compelling scenario.

Why accept business from a few customers who drive us crazy and drain our resources? Many salespeople say they sell to “anyone who fogs a mirror”–because of a looming quota, or because their company insists on certain deals. Many sales organizations create unrealistic expectations that they can turn a bad situation into a good one.

Are you dreaming?

Bad business is bad business.

Period.

Dump the Junk and Attract More Clients Who Want Your Help – And Is Willing to Pay For It Dearly

Targeting just “anyone” often means attracting more PITA customers. Never ask a PITA to refer you.

Why?

Because PITAs hang out with other PITAs. They belong to the same organizations, play golf together, and love telling stories about how they negotiated an unprecedented deal, or whipped a salesperson into shape.

Your best sales decision: Fire the PITA. Don’t take them in the first place, and if you have one, recognize you have a PITA situation and fight back.

Yes, fight back! Don’t take their abuse. You deliver a service that boosts their business. If they push you on price, be willing to walk away. That really turns the tables.

To demonstrate this point, picture two people standing with their arms out straight, pushing on and resisting each other’s hands. No one gets anyplace. It’s a stalemate.

Now re-create the same picture: One person stops resisting. What happens? The other person moves toward the one who ceased resisting. The same thing happens when you’re willing to walk away. Sometimes you’ll walk, but many times the PITA comes to you.

Are You Now Ready to Fire PITA Clients and Attract Even More Clients

Great! But words don’t mean anything. Take action now and fire the PITA! We know them 90 percent of the time before we even begin to work with them. Say NO. It’s OK to walk away.

When you walk away, you have time to attract exactly the kind of clients you want. Follow my advice and you will watch your sales soar!

About the Author:

America’s leading authority on referral selling, professional speaker, and author of No More Cold Calling™, Joanne Black helps sales teams get more referrals and attract more business fast without increasing costs. Discover how to turn prospects into clients more than 50 percent of the time. Visit http://www.nomorecoldcalling.com.