Selling a Price Increase in a Soft Market

Author:

Mark Hunter

Selling a price increase can be difficult in nearly any type of situation, but trying to sell one in a soft market can be downright brutal. Yet, as unpleasant as it can be, it is often essential. The problem usually stems from the fact that the salesperson and the customer are coming at the situation from different perspectives.

Especially in times like this, it is imperative for the salesperson to understand that regardless of what the market or economy is doing, if a price increase needs to be sold, it needs to be sold. This means that the salesperson can’t go into the sales process believing that the customer is going to reject the price increase unless the deal can be saved by offering some type of discount. If they approach the meeting with this attitude, they almost guarantee failure because a customer will never pay more than a salesperson tells them to.

In these types of situations, the first thing that often happens is a comment from the customer about how soft the economy is, how prices are really going down, and therefore, how a price increase at this time doesn’t make any sense. When the salesperson hears this, they usually agree because they hear and see the same thing. However, as soon as they do this, the battle is lost and 9 times out of 10, the only thing that can save it is some type of discount.

To counteract this problem, when the salesperson hears the customer make this type of statement, they should ignore it. Yes, ignore it. The reason? Many times the customer merely wants to get it off their chest and by telling it to you, they feel better. The first response the salesperson should make is to ask the customer questions about how they intend to use what they’re buying and whether or not they’ve been able to achieve the results they’re looking for.

If the customer continues with their line of discussion about the economy and they can’t accept the price increase, then the salesperson should ask about the steps involved in their buying process. The objective is really to get the customer talking. Initially, this can be a little scary because the customer may begin ranting about how they always go for the low price. After they get done explaining their process, the salesperson should question them about how their own customers decide to buy from them. It’s in this part of the discussion that the customer begins to see how and why quality and confidence are such big items in any purchase decision. A good salesperson will then pick up on these two items and reinforce them with follow-up questions that get the customer to further explain the importance of quality and confidence. When the customer sees what they’re buying in this light, the price increase becomes a much smaller issue.

Sometimes, even after this conversation, there will be customers or purchasing departments who will still not accept the price increase. They usually comment that they will find another vendor to buy from. This is often a veiled threat to get the weak-kneed salesperson to cave in with a discount.

For the salesperson, this type of discussion is best thwarted by ensuring the end-user fully understands the value and benefits they will receive from their product, as well as by clearly communicating the amount of pain the customer will go through should they decide to switch. First, the cost of converting to a new vendor is always much higher than initially thought, so the discount the new vendor has to offer needs to be significant. In addition, it might be easy for a customer to find a new vendor at a lower price, but on many occasions, the lower price vanishes after the initial order and, suddenly, the new vendor is at the same price as the original one. Furthermore, the new vendor will not have nearly the knowledge or expertise as the original company about how to service the customer, so the switch often winds up costing more money in the long-run.

As a final line of protection, I strongly believe the salesperson communicating the price increase should not have the authority to make any price concessions. When this power is taken away from the salesperson, it’s amazing how much tougher they are in executing a price increase. By requiring the salesperson to get approval from someone else, it also takes the salesperson off of the hot seat and, many times, as soon as the customer is aware of this, they will stop badgering for a discount.

Selling a price increase in a soft economy is certainly harder than selling one in a booming market. However, as professionals, salespeople need to take the time to know and understand how to sell a price increase in all types of markets. It doesn’t require herculean skills. It requires the diligence and patience to keep the discussion focused on the benefits the customer is looking for from both the product and from you, the salesperson.

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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.

The Age of Anxiety Adds to Economic Woes

Author:

Barbara Bartlein

The economy has tanked, we are fighting in wars with no end in sight, and the new President is predicting difficult times ahead. Our culture has become the “age of (even more) anxiety.” Long before September 11, a study by the Yale Anxiety and Mood Center reported much higher levels of anxiety in the 1990s than they did in the 1950s. By the 1980s, normal children had higher anxiety levels than psychiatric patients tested in the 1950s.

Contributing to this chronic level of anxiety and worry has been 9/11, the D.C. sniper, increases in crime, threats of bioterrorism, and “new” diseases such as Hepatitis C and West Nile virus. There has always been a lot to worry about for those inclined to do so, but now we are given new information every night on the news. The old adage, “if it bleeds, it leads,” is the tune of newsrooms across the country adding fuel to the idea that no one is safe, even in their own homes.

The “war on terror” has left many of us terrorized. This national mantra has created a culture of fear in America like a self-inflicted wound. After the numbness of 9/11 subsided, we struggled as the “new normal” of frisking elderly women in airports, surrendering our lipsticks, and walking barefoot through metal detectors became a way of life. There is fear, anxiety and confusion. Exactly what does an elevation of the color code by Homeland Security mean? What am I suppose to do? Most of us have no idea, except we should probably be anxious. As I am asked the security questions at the Post Office and Airport, I can’t help but think that if I was a terrorist bent on blowing up hundreds of people, it probably would not bother me to offer fraudulent answers.

While this anxiety culture is very real, most of us do not focus our fears on snipers or terror. We transfer it to our everyday experiences and worries. If worried about relationships or finances, these uncertainties get magnified. If worried about the safety of our children, we get knots in our stomachs. And with the price of gas going up again, we fret over the economy and whether there will still be social security when we get there.

In talking with other small business owners, they all say the same thing. Business was slow but it really tanked once the recession was “officially” announced. Overnight, spending curtailed and anxiety skyrocketed. Apprehension gave way to angst as the nightly reports of the car and lending industries problems became clear. While many Americans are facing the harsh reality of losing their jobs, there are still businesses that are stable or even growing. Unfortunately, we hear little of that on the nightly news.

Our apprehension and fear has led most of us to tighten our wallets, reduce spending, and cancel trips and large purchases. We switch from lattes at Starbucks to Folgers home brew. Gone are the designer purchases for the kids—reenter shopping at Target. Not that this is all bad. The “affluensa” of the last decade was a culture of overspending and run away credit. The savings rate plummeted and credit card debt increased. The billions of dollars spent on advertising convincing us that more would make us happy led many of us to buy, buy, buy.

But contagious anxiety is not the answer either. The recuperation from anxiety is as important to economic recovery as quarterly statements. As consumer confidence increases so will spending and the economy. Some things you can do to reduce your customer’s money fears:

• Offer specials. It is a good time to buy almost everything. Let your customers know that you have deals, discounts and specials for preferred clientele.
• Give last year’s prices. When business is slow, I send a mailing letting people know that they can book at last year’s prices. It always gets the phone ringing.
• Extend deferred billing. As credit card companies have long known, people are more likely to buy if they don’t have to pay the full amount right away. Offer a deferred payment schedule to make it easy for your customers to make a decision.
• Give them something for free. Articles, tip sheets, books, and gadgets that help your customers be more successful are always appreciated. They will remember you when they are looking to buy.

Barbara Bartlein offers keynotes, training and executive coaching to help you build your business and balance your life. She can be reached at 888.747.9953 or barb@thepeoplepro.com.

Building Client Relationships in a Downturn

Author:

Andrew Sobel

Ironically, the devastation wrought by World War II created the circumstances for many positive and creative changes around the world, once the conflict was over. The Marshall Plan, which helped modernize Europe, emerged in the war’s aftermath; the United Nations was created; new and stronger democracies came into being; new technologies were adopted into civilian markets; Germany, Japan, and the US turned their industrial energies toward private sector economic growth; and so on. Similarly, I believe the current economic crisis can be a powerful catalyst for developing new and better client relationships and for personal renewal.

If you’d like to revitalize your client relationships and re-engage with the marketplace, here is a list of seven actions you should initiate in the next 30 days. I list them in order of relative urgency.

1. Make a list of your 15-25 core relationships. These should include current clients (list individuals), prospective clients, colleagues, catalysts (influencers, people who can make deals happen and introduce you to others), collaborators (professionals or firms that you may collaborate with and exchange leads with), and counselors (mentors and advisors to you).

My research shows that relationships with individuals representing a broad spectrum of roles (including non-clients such as colleagues, catalysts, etc) are essential to success with clients. Start this process with a list of these critical few―of your most important relationships, in other words, not a database of 500 people you may have met.

2. Identify a next step to create face time with each person on your list. There are endless reasons to get in touch. You could follow up on a project that was done last year. You could develop a point of view on an issue of importance to that individual. You could offer a valuable introduction. You could ask thoughtful questions about how their company is managing through the economic crisis, and share some of the things your other clients are
doing.

I like to think about four ways you can add value during these short interactions: Offering ideas and perspectives (content); Making valuable introductions (connection); Offering personal help (e.g., career counseling, advice to a teenager about college or career choices, etc.); and having fun (going to a sporting event or concert).

3. Create a one-page, personal Sales Funnel. Put all of your current client opportunities in three categories: Category A should represent initial conversations you have had or are having about an identified issue (there might be a number of these preliminary leads). More developed discussions would be under the B category. For these, you’ve met the client several times, a clear issue is on the table, and you’ve discussed an approach and possible fees. C’s are submitted proposals. Pick your three best opportunities―ones you can
still influence, which will probably be from the A or B categories―and really work these with your colleagues. Leave no stone unturned. Have a highly experienced colleague review what you’ve done so far and make suggestions. Make sure you’ve identified and met with all key buying influences (economic buyer, work-with buyer, influencers, procurement, etc.), and that you have a coach.

Ensure that you’ve pinpointed which are the most valuable benefits for the client. Make a list of possible barriers to each sale, and brainstorm how you will overcome them.

4. Now, turn to your core clients (some of the opportunities in 3 could be with core clients―that’s fine―I’m trying to sequence my recommendations into immediate, short-term, and medium-term actions). Pick one as a model. Now, make a list of ways in which you could re-engage and revitalize this relationship. I would focus on the following questions or issues:

a. How well do you really know this client, the industry, and the overall environment it is working within? What knowledge gaps should you be filling?

b. What is this client’s “Agenda”? By Agenda I mean the company’s 4-5 most critical priorities and goals. What is your individual client’s Agenda? What business issues is he or she focused on right now? What personal issues are of concern? (e.g., retiring and leaving a legacy; getting promoted; keeping their job; etc.).

c. What pain-points or critical issues could you help them address? How can you showcase your firm’s capabilities to them and build trust in your ability to solve their issues? Do you have a “branded expert” colleague that you could introduce? Another client you could have them talk to?

d. Is there an opportunity, due to slack capacity, to do a free piece of work for this client, in an area of critical interest? Or, at least, to invest in developing a thought piece or set of recommendations around a particular issue?

e. Given the turmoil, is there an opportunity to create a different “relationship experience environment” for this client? For example, to: Take them offsite? Create a workshop experience to look at previously unthinkable options? Create a forum for them to meet some other like-minded clients and engage in peer-to-peer sharing? Use collaboration technology to connect with them?

f. Does each member of your team have clear relationship-building responsibilities with this client? Are you building many-to-many relationships, at multiple levels?

5. You’ve now dealt with the short and medium term. You’re getting more face time with your 15 or 20 most important relationships; you’ve done everything possible to maximize your best near-term sales opportunities; and you’ve refocused on growing your core clients. Now, let’s think about the next 12 months.

What can you do today to make sure you have a robust leads-stream in the second half of the year? Think about this: There are probably fewer opportunities out in the market right now, and your average success rate for turning one of them into a concrete proposal―and winning that proposal—is probably less than it was a year ago. So you simply have to get sight of more opportunities‹otherwise, your revenues will plummet.

Start by identifying 3 or 4 “traffic building” activities that you can commit to. These can include publishing and speaking; professional association involvement; industry networking; social networking; working with collaborators (a bank or law firm or private equity firm); developing a new service offering; and so on. The list is endless. What activities, in short, will help reinforce your professional credentials and expertise while getting you in front of potential clients or people who can refer clients to you? Don’t say you’re going to do 20 things in the next six months. Rather, pick a few, write them down, and follow through.

6. Think about how to use the coming months to “sharpen the saw” ―to deepen your current skills, develop new ones, and increase your effectiveness as a professional and as a client advisor. The latest research shows that most people don’t really learn from experience―in fact, more experience can actually make you worse at your job. This is because we don’t engage in what scientists call Deliberate Practice. We don’t really work at the specific things that will make us better―rather, we show up and do the same activities over and over again without getting better.

Write down a few things you’d like to work on. Maybe it’s extending your experience to a new field or practice area. Perhaps this year you’d like to get your Myers-Briggs certification, take a leadership role in an industry conference, or spend a month in one of your firm’s international offices working on a project. Or to go to that weekend photography workshop (or meditation retreat you’ve been eyeing...).

7. In everything you do this year, collaborate more than ever. Work to connect with your colleagues and friends. At the signing of the American Declaration of Independence, the sage Ben Franklin said, “We must all hang together, or assuredly we shall all hang separately.” This certainly applies to today’s economic crisis.

You may feel stymied because some clients are cutting back and saying they have no budget right now. But a client in need can be a great client indeed. You simply have to be more creative than usual about the different ways you can help your clients, bold about offering that help, and flexible in how You’re willing to structure and deliver it.

Finally, sit back and breathe. 2009 won’t be easy. But for sure, it will carry surprises for each one of us―and I believe some of those will be very positive ones.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com Tel: 505.982.0211 http://www.andrewsobel.com

Building Client Relationships in a Downturn

Author:

Andrew Sobel

Ironically, the devastation wrought by World War II created the circumstances for many positive and creative changes around the world, once the conflict was over. The Marshall Plan, which helped modernize Europe, emerged in the war’s aftermath; the United Nations was created; new and stronger democracies came into being; new technologies were adopted into civilian markets; Germany, Japan, and the US turned their industrial energies toward private sector economic growth; and so on. Similarly, I believe the current economic crisis can be a powerful catalyst for developing new and better client relationships and for personal renewal.

If you’d like to revitalize your client relationships and re-engage with the marketplace, here is a list of seven actions you should initiate in the next 30 days. I list them in order of relative urgency.

1. Make a list of your 15-25 core relationships. These should include current clients (list individuals), prospective clients, colleagues, catalysts (influencers, people who can make deals happen and introduce you to others), collaborators (professionals or firms that you may collaborate with and exchange leads with), and counselors (mentors and advisors to you).

My research shows that relationships with individuals representing a broad spectrum of roles (including non-clients such as colleagues, catalysts, etc) are essential to success with clients. Start this process with a list of these critical few―of your most important relationships, in other words, not a database of 500 people you may have met.

2. Identify a next step to create face time with each person on your list. There are endless reasons to get in touch. You could follow up on a project that was done last year. You could develop a point of view on an issue of importance to that individual. You could offer a valuable introduction. You could ask thoughtful questions about how their company is managing through the economic crisis, and share some of the things your other clients are
doing.

I like to think about four ways you can add value during these short interactions: Offering ideas and perspectives (content); Making valuable introductions (connection); Offering personal help (e.g., career counseling, advice to a teenager about college or career choices, etc.); and having fun (going to a sporting event or concert).

3. Create a one-page, personal Sales Funnel. Put all of your current client opportunities in three categories: Category A should represent initial conversations you have had or are having about an identified issue (there might be a number of these preliminary leads). More developed discussions would be under the B category. For these, you’ve met the client several times, a clear issue is on the table, and you’ve discussed an approach and possible fees. C’s are submitted proposals. Pick your three best opportunities―ones you can
still influence, which will probably be from the A or B categories―and really work these with your colleagues. Leave no stone unturned. Have a highly experienced colleague review what you’ve done so far and make suggestions. Make sure you’ve identified and met with all key buying influences (economic buyer, work-with buyer, influencers, procurement, etc.), and that you have a coach.

Ensure that you’ve pinpointed which are the most valuable benefits for the client. Make a list of possible barriers to each sale, and brainstorm how you will overcome them.

4. Now, turn to your core clients (some of the opportunities in 3 could be with core clients―that’s fine―I’m trying to sequence my recommendations into immediate, short-term, and medium-term actions). Pick one as a model. Now, make a list of ways in which you could re-engage and revitalize this relationship. I would focus on the following questions or issues:

a. How well do you really know this client, the industry, and the overall environment it is working within? What knowledge gaps should you be filling?

b. What is this client’s “Agenda”? By Agenda I mean the company’s 4-5 most critical priorities and goals. What is your individual client’s Agenda? What business issues is he or she focused on right now? What personal issues are of concern? (e.g., retiring and leaving a legacy; getting promoted; keeping their job; etc.).

c. What pain-points or critical issues could you help them address? How can you showcase your firm’s capabilities to them and build trust in your ability to solve their issues? Do you have a “branded expert” colleague that you could introduce? Another client you could have them talk to?

d. Is there an opportunity, due to slack capacity, to do a free piece of work for this client, in an area of critical interest? Or, at least, to invest in developing a thought piece or set of recommendations around a particular issue?

e. Given the turmoil, is there an opportunity to create a different “relationship experience environment” for this client? For example, to: Take them offsite? Create a workshop experience to look at previously unthinkable options? Create a forum for them to meet some other like-minded clients and engage in peer-to-peer sharing? Use collaboration technology to connect with them?

f. Does each member of your team have clear relationship-building responsibilities with this client? Are you building many-to-many relationships, at multiple levels?

5. You’ve now dealt with the short and medium term. You’re getting more face time with your 15 or 20 most important relationships; you’ve done everything possible to maximize your best near-term sales opportunities; and you’ve refocused on growing your core clients. Now, let’s think about the next 12 months.

What can you do today to make sure you have a robust leads-stream in the second half of the year? Think about this: There are probably fewer opportunities out in the market right now, and your average success rate for turning one of them into a concrete proposal―and winning that proposal—is probably less than it was a year ago. So you simply have to get sight of more opportunities‹otherwise, your revenues will plummet.

Start by identifying 3 or 4 “traffic building” activities that you can commit to. These can include publishing and speaking; professional association involvement; industry networking; social networking; working with collaborators (a bank or law firm or private equity firm); developing a new service offering; and so on. The list is endless. What activities, in short, will help reinforce your professional credentials and expertise while getting you in front of potential clients or people who can refer clients to you? Don’t say you’re going to do 20 things in the next six months. Rather, pick a few, write them down, and follow through.

6. Think about how to use the coming months to “sharpen the saw” ―to deepen your current skills, develop new ones, and increase your effectiveness as a professional and as a client advisor. The latest research shows that most people don’t really learn from experience―in fact, more experience can actually make you worse at your job. This is because we don’t engage in what scientists call Deliberate Practice. We don’t really work at the specific things that will make us better―rather, we show up and do the same activities over and over again without getting better.

Write down a few things you’d like to work on. Maybe it’s extending your experience to a new field or practice area. Perhaps this year you’d like to get your Myers-Briggs certification, take a leadership role in an industry conference, or spend a month in one of your firm’s international offices working on a project. Or to go to that weekend photography workshop (or meditation retreat you’ve been eyeing...).

7. In everything you do this year, collaborate more than ever. Work to connect with your colleagues and friends. At the signing of the American Declaration of Independence, the sage Ben Franklin said, “We must all hang together, or assuredly we shall all hang separately.” This certainly applies to today’s economic crisis.

You may feel stymied because some clients are cutting back and saying they have no budget right now. But a client in need can be a great client indeed. You simply have to be more creative than usual about the different ways you can help your clients, bold about offering that help, and flexible in how You’re willing to structure and deliver it.

Finally, sit back and breathe. 2009 won’t be easy. But for sure, it will carry surprises for each one of us―and I believe some of those will be very positive ones.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com Tel: 505.982.0211 http://www.andrewsobel.com

Five Tips for Fear-Less Business Travel

Author:

Steven Crimando

Fear and uncertainty are continuing to grip the country and world as a result of terror attacks worldwide, heightened security alerts in major cities including New York, shootings on college campuses, violence in stores, malls and offices, and the global economic crisis. Front page headlines, TV and radio news reports and Internet videos laden with crime and heartbreak are bombarding people and making us increasingly afraid about what to do if violence crosses our path.

Terrorism, along with the general economic downturn, increased costs for airline flights, rental cars, lodging and food have all contributed to a decrease in business travel. Many companies are cutting back on travel and are turning to technology such as webinars and Internet-based meetings to conduct business. Still, there are millions of people who drive or fly in order to do business. One of the most significant psychological factors affecting people’s decisions to travel during times of crisis is “controllability.” While the powerful forces that drive the world’s financial markets, and the radical actions of terrorists are beyond our immediate control, our personal safety is not.

Safety is, and should be, an overriding concern among business travelers. When a dangerous situation unfolds, many people feel powerless. Ultimately, when you take a meaningful degree of control with your own safety and security, you venture out into the world with greater confidence and ease. Adjusting your own thoughts and behaviors is the place to start making your world safer and less fearful.

Here are 5 tips for fearless business travel:

1. Remember you are never a passive observer to your own safety. Your safety is a shared responsibility between you, law enforcement, and security professionals. Pay attention to your surroundings including fire exits, bottlenecks in crowds, announcements and general conditions. The police and security staff cannot be everywhere at once. You must be your own first line of defense; be alert, aware and proactive.
2. Don’t run from danger, run toward safety. While this is counterintuitive, running from danger, especially with a crowd or mob trying to escape, may very well put you at greater risk. Running toward safety requires advance planning and awareness. Mentally rehearse escape routes or survival behaviors before something actually happens. Whether checking into a hotel, or selecting a seat in a restaurant or theater, be cognizant of your surroundings and possible routes of escape.
3. File a “Flight Plan.” Just as a pilot plans and documents a route, let others know where you will be throughout the day and how you expect to travel from place to place. Whether you’re driving or taking an international flight, share your approximate itinerary with someone. If they hear about a problem on radio or TV, they may be able to warn you. If you’re in a jam and your family and colleagues know where you are expected to be, they can mobilize assistance if you don’t arrive as scheduled. Create a communications plan to share your flight plan ahead of time.
4. Know Before You Go. Civil unrest, military conflicts and health risks such as disease outbreaks can surface suddenly and turn a business trip into a nightmare. The U.S. State Department, and other sources, publishes travel advisories and warnings in real time. Visit www.state.gov or www.firstgov.gov and consider bookmarking them on your mobile phone or email.
5. Trust your instincts. If something feels wrong, it probably is. If you feel uncomfortable in your travels, give yourself permission to leave. Don’t worry about how you will be perceived or what your co-workers will say. You can always return later, on your terms, when you feel safe. Don’t ignore your internal security system.

In addition, if you’re not familiar with the place you are going, or are worried about it, do some preliminary research on the location, community, and more. Take a look at the local newspaper online to learn about their recent local current events. You may be able to learn about bogus bomb threats that closed the airport, an investigation into cab drivers and crime or other information that can help to keep you informed.

Finally, if you feel so stressed and worried that you cannot participate in your usual daily activities, reach out to support groups and professionals for counseling and help.

Steven Crimando and XBRM specialize in workplace behaviors and psychology that are related to organizational emergency and disaster preparedness. The firm trains employers and employees in the growing field of the human factor of crisis management. This includes responding to economic and financial turmoil, disasters, workplace violence, terrorism, and other crisis situations. XBRM is a division of AllSector Technology Group, Inc. For more information, visit www.xbrm.com.

Insurance for Living Today...Is your business adequately covered?

Author:

Susan Regier

Most people don’t give insurance much thought. They know they need it but it’s not something they spend time dwelling upon. In fact, 88% of families are not aware of their insurance coverage…but Nancy Kirwin is working to change that perception.

With nearly twenty years of insurance industry experience, Nancy, an insurance service specialist/agent with Townsend Mutual Insurance, understands the ever changing requirements of her clients. Working from a home-based office, Nancy personally meets with her clients in the commercial, residential, and farming sectors.

One of the greatest thrills Nancy has in life is helping other people. It started as a young child when she was enthralled with the older gentleman (the insurance agent) who came to visit her parents each year on the farm where she grew up. It was always a big deal to sit at the kitchen table and review their policies to make sure the family was properly insured…and that feeling led Nancy to her work in helping other families experience that same sense of security.

Today, more parents are opting for a home-based business so they have more choices. The flexibility component is a huge bonus with growing families. Parents can schedule work after their children’s bedtimes so they can attend special activities during the day, without the guilt pressure of co-workers and bosses.

But when setting up a home office, it’s imperative that adequate business insurance is considered…and this isn’t a one-size-fits-all policy. If you operate a business from your home and have not informed your agent or broker, you run the risk of being denied from a claim if something happens.

The type of business, equipment, inventory, and liability issues must all be taken into consideration when assessing your insurance needs. Here are a few tips Nancy suggests to help ensure you are protected:

1. Establish a relationship with your insurance agent or broker. Make sure you let him or her know when you purchase new equipment, change locations (home biz to store front), or participate in a tradeshow.
2. Auto insurance must be rated appropriately if you use your vehicle for business use or have clients ride with you.
3. If someone else drives a vehicle for business use on your behalf you need to protect yourself with non-owned auto insurance. Policies should have inclusions and exclusions based on your unique business.
4. Review policies at least once a year, preferably every 6 months.
5. Be sure to have disability insurance, which is based on your earnings.
6. Save money by having higher deductibles – you’re not self-insuring for small losses.

Insurance is for living today. It pays to make sure you are adequately covered…and not paying too much.

Susan Regier is the publisher of www.NetworkingToday.com, London’s online business resource, and head writer of Vantage One Writing, a professional writing service for businesses. 519.471.8726 Email: susan@vantageonewriting.com Web site: www.vantageonewriting.com

The Price Increase Switching Game

By Mark Hunter

We’ve all had to deal with price increases in one form or another. Similarly, many of us have been faced with a belligerent customer who not only is unwilling to accept your price increase, but also threatens to switch to your number one competitor. When this happens, we’re often left with the feeling that our career is on the brink of imploding. But, don’t panic! Take a deep breath and relax! It’s not as bad as you may initially think.

In talking with a variety of salespeople, professional buyers, and purchasing departments over the years, the reality is that when a customer is presented with a price increase, they will only change to a competitor about 10% of the time. The reason is simple: the cost of switching to a new supplier is too great. When a customer threatens to make the move, rarely have they taken the time to think through what they’re really saying. Their goal is to get the weak-kneed salesperson to cave in and give them a discount, and many of them are successful in securing on-the-spot price reductions just because of the forcefulness of their veiled warning of switching.

When you are presented with the threat of a customer moving to another supplier because of a price increase, focus in on the cost of the conversion instead of allowing yourself to panic. Remember, the process is never as easy as they think it’s going to be. Start by looking at what they will have to go through to set up and to start receiving from a new vendor. Now, take this and multiply it by four. The reality is that the customer is not just setting up a new vendor, but also phasing out an old one in addition to dealing with the wide-range of conversion issues that will inevitably arise.

To better help you understand the risk involved in actually making the change, think for a moment about the hassle you go through when you try to alter a flight on the same airline or your cell phone plan even if you stay with the same carrier. Similarly, consider what is necessary to adjust your automobile insurance or to reschedule medical tests. With each of these same examples, think of the added work you would go through if you were not just changing plans, but also changing companies. Because of the significant amount required, you would probably think twice about making a switch.

Now put yourself in the shoes of a business and think for a moment about the work that would be required for them to change to another supplier. It’s easy for a business customer to say they’re going to drop you and go with someone else, but keep in mind that at that point, it’s only talk. Threatening you is not costing them anything. Carrying it out actually will. The decision to switch is not just about the absolute cost. On nearly every occasion, it takes time to make a switch, thus carrying an added element of risk.

The next time you are warned of a potential switch from a customer, be proactive and prepared. Do your homework. Research what it would take for them to actually make the change to a new vendor. After you’ve discovered the cost of the conversion, figure out how long it would take for your customer to get a payback, let alone a return on their investment. In most cases, it will be hard for a customer to realize any type of a return just from switching because of a price variance. Even if the customer could achieve a return on investment, could they guarantee the other company’s pricing structure wouldn’t change? Could the other supplier guarantee the same level of service you and your company provide? Could the other company provide the same level of sales leadership that you bring to them?

The vast majority of the time, the threat of a belligerent customer to change suppliers because of price increase dies quickly when they truly stop to consider the cost of making the switch. Once the customer realizes that there is more time, effort, and money at stake than they have considered, the change will definitely be less appealing. By doing your homework ahead of time, you can avert a problem situation by showing the customer it is not worth it.

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.

Published in Networking Today December 2008

The Magic of Human Moments

By Barbara Bartlein

An unexpected outcome of computers and other technology is the loss of the “human moment.” A term coined by Harvard lecturer, Edward M. Hallowell, it refers to the psychological encounter that can happen only when two people share the same physical space. The human moment is a quality of interaction that you don’t get through technology, even phones.

Technology has been helpful for the most part; it makes our lives better. But difficulty occurs when the human moment is lost. Hallowell has amassed a large body of research to show that face-to-face interaction is essential for keeping our brains sharp. In order to really converse with someone, you have to keep reading their physical cues, a level of communication not available with computers. In front of a live person, our brains read visual cues every second with automatic responses from us.

In-person contact stimulates an emotion reaction, according to Hallowell. Face-to-face exchange appears to stimulate the attention and pleasure neurotransmitter dopamine, and serotonin, a neurotransmitter that reduces fear and worry. This explains why working at the computer or talking on the phone can be as exhausting as watching TV. Our brain gets fuel from human contact and gets overloaded from the torrent of data surging at us each day.

These human moments are so powerful in our lives that recent research has suggested that loss of human contact is a contributor to the development of Alzheimer’s. David Bennett and other researchers from the Rush University Medical Center studied 823 people in and around Chicago. With an average age of about 80, none of the participants had dementia at the start of the study.

Over a four-year period, researchers asked the participants about their social activity—whether they felt they had enough friends, whether they felt abandoned or experienced a sense of emptiness. They were given a score between 0 (least lonely) and 5 (most lonely). At the end of four years, 76 people in the study developed Alzheimer’s. Those who did were more likely to have poor social networks; the higher they scored, the greater the risk. Those with a score of 3.2 or more had double the risk of those scoring below 1.4.

“It turned out people who have this feeling of being socially isolated are at higher risk of developing Alzheimer’s,” says Bennett. “We are talking about a tendency to feel isolated and alone in the world,” he ways. “You can have a small network and not feel isolated; or you can have a large network but don’t know how to connect, and feel isolated.”

There are just two pre-requisites for the human moment: people’s physical presence and their emotional and intellectual attention. Yet, technological changes in the last ten years or so have made a lot of face-to-face communication unnecessary. Voice mail, email, teleconferencing are one-way, electronic means to communicate “more efficiently.”

The psychology of the mind changes when the human moment vanishes. At its worse, paranoia fills the vacuum. But for most of us, the human moment is replaced by worry. Electronic communication does not convey the cues that typically alleviate worry such as body language, tone of voice and facial expression. Human contact is like a safe place for the psych where we feel understood and grounded.

Little misunderstandings are common as the number of human moments decrease. Wrong impressions from a misunderstood email or voice mail are the result of vanishing human moments. People may take offense and question the motive of others when they discover they are not on a certain circulation list or included on a memo.

The human moment appears to be a “regulator.” When it is not present, people’s primitive instincts become more apparent. Just like calm, stable people can become road raged in the anonymity of their automobiles, so too can courtesy be thrown out the window at the computer keyboard.

Some things you can do to increase human moments:

• De-tether from technology. When you are feeling dragged out at work or at home, take a break and seek out a human moment. It doesn’t have to last long or even be intimate. It can be professional and brief. You just need to pay attention.
  
  
• Diversify your workday. Schedule your day with “interruptions” of human moments, exercise, and fresh air. Walk on your lunch hour, work out after work, and take a break with close friends. The variety will help you avoid “brain drain” and increase your productivity.
  

Barbara Bartlein is The People Pro. She offers keynotes, seminars and consulting to help you build your business and balance your life. She can be reached at barb@thepeoplepro.com or visit www.thepeoplepro.com.


Published in Networking Today December 2008

Sales Leadership Excellence: How to Recruit & Retain More High-Producing Sales Leaders

By Gregory Stebbins

As a sales leader, have you ever felt like you were at war in your business? No surprise there because modern business is based on a military model. However, today’s business environment is rapidly changing requiring sales managers to look at new and different approaches to leading sales organizations.

Now the question is: what will replace the old business model?

You have probably heard of the idea that everything is based on either fear or love.

If today’s business model is based on fear, then the answer to what will replace it is apparent.

How the World of Business & Getting Sales Became War
In the 1500’s Niccolo Machiavelli wrote The Prince where he answered this question: Is it best to be loved or to be feared. Machiavelli wrote, “The answer is of course, that it would be best to be both loved and feared. But since the two rarely come together, anyone compelled to choose will find greater security in being feared than in being loved.” He related this to military models, providing examples of Hannibal and others.

As time progressed new business models arose. The master/apprentice paradigm was created as business owners looked for ways to increase productivity with a largely uneducated work force. Frederick Winslow Taylor, author of The Principles of Scientific Management, proposed what was a thinly disguised military model. From then on, fear was injected into the workplace in continually greater ways.

Why Your Sales Leadership Style Must Change
As work becomes less about muscle and more about intellect, sales leadership styles need to change. Today, we have an ever-increasing number of “knowledge workers.”

We also have a new generation entering the sales workforce – The Millennials. These workers have loyalty to their manager and sales team, but not to the company. Managing them through fear usually results in them voting with their feet, and finding a different type of company to work for.

Now, with baby boomers increasingly leaving the sales workforce there is a rapidly growing shortage of qualified workers. So, how do you recruit more members for your sales team? And, how do you turn them into high-producing sales leaders.

How Showing Love Will Help You Recruit & Retain High-Producing Sales Leaders
Do you have employees who tell you they just love their sales job or the work they do? Do you have employees who complains loudly and constantly about how screwed up their sales job is and especially they work for including you? Which type of employees is more productive for your sales organization?

There are many reasons why people love their jobs:

• Some people love business because of the money they make.
  
• Others love business because of the recognition they gain.
  
• Some love the security it provides for their family and themselves.
  
• Some love their work because it allows them to contribute in making a difference.
  

Once you know what causes a worker to enjoy their work, you can provide that experience they want to motivate them to become a high producing sales leader. And, when people love their work, they’ll tell others. This means more people will want to work for your sales organization.

However, there’s a lot more to love than that. Love is unique in that it is a choice, an attitude, and an outcome all at the same time. So, regardless of a work situation or its circumstances, a person can choose to love. The trick is to create a work environment where this form of loving is at least allowed and at best, encouraged.

Here’s a step in that direction…

How to Create a “Loving” Sales Organization
The famous cartoon sailor, Popeye, had a great statement: “I yam what I yam and that’s all what I yam.” If more people followed that, there would be less fear—and more room for love in the sales organization workplace. However, most people, not having been trained otherwise, choose to serve their ego. This automatically perpetuates the fear-based Machiavellian model.

When a person adds an adjective to the words, “I am,” they are declaring an ego position, which inherently has fear attached to it. It looks something like this: “I am a sales manager.” If I have an ego position in being a sales manager, which I have declared by saying I’m a sales manager, then I will either consciously or unconsciously choose to protect that position. Inherent in the protection is fear, specifically fear of loss of my identity as a sales manager.”

Is it different if you choose to declare, “I am loving?”

No.

The same thing happens: You need to convince others about how loving you are, even if you’re not feeling particularly loving today.

The challenge for most people is declaring, “I am,” and not adding anything else to the declaration. It’s too amorphous. It has nothing others can relate to. Here’s the most interesting part. By stating “I am,” with nothing attached you have declared your freedom. You can choose to be love unconditionally. You could also choose to hate unconditionally. It’s your choice.

In today’s world of knowledge, workers who will job hop in a New York minute, which choice do you think would attract more qualified sales leaders to your sales organization? This is not a trick question. Support your workers and associates in knowing they are whole people doing a job, not being the job. In that awareness, fear falls away, job enjoyment and satisfaction increases and the whole company moves into the new paradigm of enhanced excellence, productivity… and loving.

Sales Psychology Expert Gregory Stebbins has helped more than 20,000 sales professionals better understand their customers so they can outsell their competition. Now with his book, “People Savvy for Sales Professionals” sales managers can help their sales team understand a simple, yet groundbreaking plan to winning your customers’ trust and business forever. Get your free sneak preview at: http://www.peoplesavvy.com/book.htm


Published in Networking Today December 2008

Release Brakes: How to Break the Fear Barrier in Business

Lt. Col. Rob “Waldo” Waldman

As I write this article at my favorite Starbucks, I can't help but hear the conversation next to me. A middle-aged woman is having a coffee meeting with a peer discussing job opportunities, the market, and their personal networks. It's obvious that she's lost her job due to cutbacks and is networking like mad, reaching out to her wingmen and exploring job opportunities.

Sound familiar?

We all know someone who recently lost a job or who is struggling with their business. The economy is tough today. Sales are down, credit is tight, budgets are being slashed, and jobs are being cut. We've all been affected. It's just reality. And while we can't control Wall Street, the only thing we can control is how we react to what's going on. As my friend and wingman John Harrington of OTR Consultants says, when adversity strikes, "we either fear or we lead."

If we fear, we crawl out of bed anxious, worrisome, and focus on what we don't have. We become strangled with doubt. We strap into our jet ready to take-off, but push up the throttle with the brakes on. Doubt prevents us from releasing our brakes and destroys the warrior spirit. It kills performance, which eventually leads to failure.

If we lead, we jump out of bed, acknowledge our fear (hey, it's normal to be afraid when adversity strikes!), and then give thanks for what we have. We gather our resources, plan the day's mission, and then take action. We focus on doing, not doubting…on performance, not philosophy. We understand that we’re in control of our jet and are ultimately responsible for results.

Here’s the question you have to ask yourself during adverse conditions: Will you fear or lead?

In turbulent times like today with the missiles being launched, we have to be warriors, not worriers. Warriors confront the reality of their fears, and then lead by taking action. When I flew in combat with my wingmen, sure we were scared. Sure we had doubt. But when it came time to execute, we prepared relentlessly and then took action as a team. We felt confident because we weren't flying solo and knew we could count on each other for mutual support. Most importantly, we focused on our actions, not on our attitude.

In business, attitude alone won't get you to take off. Yes it’s important, but ultimately you have to take action for change to occur. Attitude gives the thrust, but action provides the vector. You have to release the brakes on your jet and roll down the runway with a target and a plan, knowing full well what the stakes are. I know it can be overwhelming and it isn’t easy. But let’s face it; the greatest results in business often require the greatest effort and risk.

I want to emphasize that being a modern day warrior isn't about combat. It's about commitment, courage, and accountability. It's about fighting for a cause that means something. Warriors fight for those they serve, but they also fight for freedom, peace, family, and love. Warriors work. Warriors live by the credo "the more you sweat in peace, the less you bleed in battle." They plan and train with discipline and intensity and put forth the effort so that they never have to go to battle. As the great Chinese General and military strategist Sun Tzu wrote in “The Art of War,” the greatest victories in war are the ones that are never fought.

Most importantly, warriors are a beacon of hope for those in need. In essence, warriors are wingmen. Warriors are your friends who refer business to you, who share their best practices, give feedback on your sales performance, and who take your keys when you've been drinking. They give their love and advice freely, but also help you be accountable to the most important wingman in your life...yourself!

Warriors are wingmen who will do what it takes to help you turn your fear into courage, push up your throttle, release your brakes and take-off. Warriors want you to win.

As we deal in these uncertain economic times, I would ask you to lead rather than fear. Be thankful for the warriors in your life who fight the good fight and who give you the courage to release your brakes and take-off in turbulent conditions. And last but not least, pray for the strength to be a warrior for your customer, your co-workers, and for those less fortunate who can't release the brakes on their own.

Be a wingman – a warrior with a heart.

Lt. Col. Rob “Waldo” Waldman is a former combat-decorated fighter pilot with corporate sales experience. Known as “The Wingman,” he is an inspirational peak performance speaker and uses fighter pilot strategies to build teamwork, leadership and trust in highly competitive environments. Waldo’s clients include Aflac, Hewlett-Packard, Nokia, Bank of America, John Hancock, and Home Depot. To download his Top Gun Motivation mission briefing, visit Motivational Keynote Speaker or call 1-866-925-3616.

Published Networking Today December 2008

When Clients Want a Discount

By Andrew Sobel

Especially in a difficult economy, clients may ask you for a discount. There are at least five reasons why a client will pressure you to reduce your fees, and you need to understand which of these is at the root of the discount request in order to effectively respond. I've named a client type for each of these reasons:

1. "Red Ink": This client is under extraordinary budgetary pressure due to a decline in profits, and really is having trouble funding your work. Right now, there are a many companies out there which are in this predicament. In this case, try in earnest to structure your work to help the client meet internal budget pressures. Make recommendations for ways that your clients can become more efficient and productive in the way they are spending their budget for your particular service. One of the firms I work with, for example, was told by a large Fortune-500 company that it was cutting the budget for all external service providers by 50% across the board. My client spent serious time developing a very cogent business case which showed that the company could save more by consolidating around just a couple of suppliers, and they were able to retain the same level of fees while increasing their share of the company's total spend.
   
   In the midst of one of the toughest economic environments in history, now is the time to be creative and flexible – without completely abandoning your economic model – as you work with cash-strapped clients.
   
   
2. "Competition Czar": Your client has solicited proposals from a number of your competitors, and says you are more expensive for what appears to be the same service. In this case you need to invest in a value-added proposal that illustrates how you are different from the competition. Provide multiple options in your proposal. Treat your prospective client as if they were already a client.
   
   
3. "Bargain Hunter": This client always likes to dig around for the best deal, irrespective of who you are, the service you offer, or the degree of competition. You might satisfy this client's bargain-hunting instincts with a small concession on price or an extra piece of value-added work.
   
   
4. "King Commodity": The client perceives your service to be a commodity or near-commodity, and buys mostly on price. You have three options: Avoid them, add value to show that your service really isn't a commodity, or lower your delivery cost and compete on price.
   
   
5. "Chicken Little": This client likes to fret about how expensive everything is, including you. I've had a handful of these clients in my career. They value the work I do, but they love to make comments about my fees and how expensive I am. I suggest you sympathize but hold your ground. Describe the quality ingredients that go into your delivery, and frequently communicate the value you are adding. Emphasize that you are indeed best used for those issues where extremely high quality and thoroughness is required, and make a point of turning down some work that could be done more efficiently by someone else.
   

In every case, be sure to:

• Always link your proposal to the client's critical issues, needs, and objectives. · Clearly articulate the value of the work you are proposing. · Make an effort to identify what the client truly values about your proposal. You may have five elements to your proposed program, but it could be that two or three of them represent 90% of the perceived value.
  
  
• Respond to fee pressure by offering lower-cost options that restructure the work without destroying your profit margin. Propose doing less than what is in the original proposal, suggest that the client take on some of the tasks itself, or start with a small diagnostic phase.
  
  
• Talk about the integrity of your fees and don't cave in mindlessly. One senior executive said to me, "If I challenge an invoice, I actually don't want the firm to immediately knock 20% off it. If they do, it makes me think I should question every invoice, and then the whole billing process loses integrity."
  
  
• Propose discounts, rebates, or other pricing mechanisms that are tied to creating a larger, stronger relationship with the client as opposed to just cutting current prices.
  
  
• Reduce the client's risk of doing business with you rather than cut fees. For example, break a large engagement down into small pieces with checkpoints along the way.
  
  
• Don't chase down every lead or RFP – if you cannot invest the time to develop a highly tailored, value-added proposal, don't bother. That's hard to do in a difficult economy, but it's usually the best strategy.
  
  
• Because of the economic contraction, you may need to be especially thoughtful about how you set and structure your fees. The one approach I don't like is to simply reduce fees on a blanket basis because a client tells you they are suffering a profit squeeze. You know that they will not pay you a premium when times are good, so why should you give a deep discount when times are bad? However, as noted above, you may need to consider delaying your billing; providing one or two value-added services at no additional charge (producing an assessment of a particular issue, facilitating a workshop for the client, providing some training for in-house staff, etc.); agreeing to use more of the client's own people on an engagement; accelerating a project's timescales; and so on.
  

Finally, don't take it personally if you're asked for a discount. If someone questions your fees, respond with some thoughtful questions about his or her concerns and try to understand why the subject is being raised to begin with.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com (Tel: 505.982.0211). http://www.andrewsobel.com

Published Networking Today December 2008

Ten Essentials to Ensure Organizational Change Works

By Barbara Bartlein

Organizations that are in the throes of change must make sure that the framework for change is in place before charging forward. Too often, goals and strategies are defined but there is little attention to whether the organizational culture is ready and primed for the changes. Staff then gets frustrated or just ignores the change efforts completely. Here are the ten essentials elements that are critical for change to be successful:

1. There is a solid foundation for change. This requires clear and honest answers to the questions of “Why is this change necessary?” “What is at stake if we don’t change or are unsuccessful in our attempts?” And “Where are we going?” Employees are much more likely to embrace change if they have some idea why they are doing it. The future vision should be clear and repeatable.
   
   
2. Communication is both excessive and effective. Communication during a major change must be frequent, timely and consistent, involving face-to-face contact between immediate bosses and their direct reports, rather than one-way emails, top-down announcements, or long periods without any information. A handy rule of thumb is to take communication efforts and multiply by ten. Communication also has to be in multiple forms including using technology to emphasize key messages. People tend to remember information in “sound bites,” so it is important to have some catch phrases that outline the goals of the changes.
   
   
3. Attention is given to transition management. A detailed transition plan supplements the strategic and change plans and includes ways of helping people let go of the old ways, get through and capitalize on the chaos and confusion, and ensure the new way becomes fully integrated throughout the organization. The transition plan should include tentative timeframes and expectations.
   
   
4. Middle and lower management levels are truly engaged. Middle manager, team leaders, and front-line supervisors are the most crucial levels to have fully committed and acting on their responsibilities to ensure the success of the change. Ideally, they are involved in planning the action steps that include their areas of responsibility.
   
   
5. Senior leaders are pulling together. All members of the senior executive group are visibly supporting the change and moving in the same direction in a clearly united front throughout the organization. The language of change should be clear and consistent and repeated in every message to the organization.
   
   
6. No “old guard” factor exists. The “old guard” may be either specific groups or key individuals that have a vested interest in keeping things as they were, and they need help to get on board with the change or be dealt with directly, as early in the process as possible. Remember, often the most dedicated employees may initially resist change. That is because they have devoted time and energy to the present reality. They need to be allowed to verbalize their concerns so they can move on.
   
   
7. The change plan is clear and understandable. An effective change plan must clearly spell out time-lines, accountabilities, budgets, resources required, progress reports, feedback loops, etc. so that everyone in the organization trusts that there really is a good plan in place for the change. The plan has to be reinforced so it is not viewed as simply another “flavor of the month.”
   
   
8. People know what is expected of them. There is a clear and definite link between the changes at the organizational level and what each person in the organization needs to do at the individual level to make the change successful. The language of change should be consistent in job descriptions and performance reviews. Ongoing assessment and feedback should be utilized so everyone knows that they are on the right track.
   
   
9. The changes are coordinated and prioritized. When there are a number of changes happening at the same time throughout the organization, it is critical they are grouped together and prioritized so they fit together in a coherent pattern and everyone knows what change is urgent this week.
   
   
10. Old habits are not getting in the way. The organization is very intentional about not making the same kind of mistakes it has with past unsuccessful changes that are based on their collective “culture,” “character,” or “the way we do things around here.” Effective leaders know that the readiness of the culture to embrace change is just as important as the vision and strategic plan. They also know that there are always some glitches and stumbling blocks in managing change.
    

Barbara Bartlein is the People Pro. She offers keynotes, seminars and consultation to help you build your business and balance your life. She can be reached at 888-747-9953 or barb@thepeoplepro.com

Published in Networking Today November 2008

Six Steps Guaranteed to Keep Your Audiences' Attention.

By Karen Susman

Include the following elements in this exact order in your next presentation. Your audience will stay with you until you take your bow. Be prepared for ear-splitting applause.

Let's assume you're speaking to potential customers for your big, beautiful beanbag chairs.

1. I will not waste your time. ("In the next few minutes, I'd like to demonstrate the comfort and construction of these big, beautiful beanbag chairs." Or, "I'd like to begin my brief remarks by asking you to remember the last time you were really comfortable in a chair.") Your audience will silently or audibly sigh with relief. You're promising not to be a big windbag about your beanbag.
   
   
2. I know who you are. ("As people who deserve to relax after work, you need to..." Or, "Several of you mentioned to me that your work involves lots of reading." You must know your audience and you must let them know early on that you do. Each audience feels it is unique, so even if your message is the same, a reference to engineers when you're speaking to dentists will divert their attention.
   
   
3. Here's how my speech is organized. ("The three points I want to cover are..." Or, “There are two prime ways to arrange big, beautiful beanbag chairs. The first is..." Or, "I plan to describe our proposal, demonstrate it and then ask for questions.") Since so many speakers aren't organized, your audience will be impressed and relieved that you are. You will make it so much easier for your audience to follow you if you announce your agenda.
   
   
4. I know my subject. (Without sounding pompous or overbearing: "When we evaluate big, beautiful beanbag chairs..." Or, "During the last decade designing furniture, we..." Or, "When I was interviewed by Chair Monthly on this issue...") If you don't know your subject, you shouldn't be speaking on it. Build credibility early.
   
   
5. Here is my most important point. ("The one thing I want you to remember is...." Or, "The most important point to take from here is..." Or, "Write this one thing down...") this will alert your audience that something important is about to be said. This will jerk your audience back into attention mode.
   
   
6. I am finished. ("I want to leave you with this one thought..." Or, "Before I conclude, let me tell you...") Give a great closing story, or quote, or wish for the audience. Be sure to include a call to action. "Come to our store on 5th and Main today." Or, "Visit our Web site, www.bigbeautifulbeanbagchairs.com." Conclude once. Many speakers give audiences whiplash by concluding five or six times.
   

Organize your remarks with these six steps in mind and you'll have your audience with you every step of the way.

Adapted from The Overnight Guide To Public Speaking by Ed Wohlmuth. Used with permission

Karen Susman is a Speaker, Trainer, Coach, and Author of 102 Top Dog Networking Secrets. Karen works with organizations that want to maximize performance. Programs include Humour at Work; Balance In Life; Networking Skills; Presentation Skills; and Building Community Involvement. Order new guidebooks on humour, networking, time management, and community involvement by calling 1-888-678-8818 or email Karen@KarenSusman.com. www.KarenSusman.com.

Published in Networking Today November 2008

How to Get More Referrals, Attract New Clients & Decrease Costs During a Recession

By Joanne Black

Have your phones stopped ringing yet? The economy is lagging and dragging. We’ve felt the effects in the United States. Now we’re seeing global implications.

So, how do you tackle economic uncertainty?

Cut advertising, travel, training, marketing, and discretionary expense line items? Cut purchasing? Ouch!

The pipeline starts to dry up and the anxiety level goes through the roof. Many people think that since there’s nothing they can do, they should just do nothing. But “nothing” is futile thinking.

What If You Could Reach Your Market Without Incurring Any Hard Costs?

The only budget you need to worry about is simply your time…your time to ask for referrals!

You know about referrals. When a qualified prospect is referred to us, we get a new client typically between 70 and 90 percent of the time. Additionally, we are pre-sold. Our selling time decreases. Credibility increases. And, we ace out the competition.

There is no other business-development process that can claim these results. Results are the only thing that matters. And, now you’ll be able to achieve results simply by implementing the following 8 “Killer” strategies.

8 “Killer Steps” to Attracting New Business in a Lagging Economy

1. Broaden Your Perspective
   What business are you in? Redefine and reinvent yourself. Determine how you can create a leap in demand for your products and services. Build new alliances and consider alternate distribution channels. Don’t go solo. It’s important to assemble a group of advisors and get their input and creative ideas. Include people who have differing points of view from you. Not easy, but critical.
   
   
2. Be Nimble and Innovative
   You’ll never have all the facts. Make quick decisions. Be fearless and make tough choices. Create new uses for your products. Why not a new business model?
   
   
3. Dazzle Your Current Customers
   Your current customers need care and feeding. Don’t ignore them at the expense of new business, because they are your best source for new business.
   
   
4. Prioritize Wisely
   The most important activity for any salesperson is to do what’s “closest to cash” the first thing every single day—whether it’s following up with a prospect, writing a proposal, or closing a deal.
   
   
5. Become an Expert
   Companies hire experts because they can’t afford to make mistakes. Position your company as the expert with a specific product or in a specific market niche. Become an expert and people will be more likely to refer you.
   
   
6. Stay Connected
   If you want to get more referrals you have to network like crazy. Attend a minimum of one event a week. You never know who you will meet and what you will learn. Never let your network go down. Networking is an essential referral marketing activity. So go make connections and build your business. Talk to people and find out how you can help them. How is their business doing? Are they impacted by the lagging economy? How? Don’t email, call. You make connections by talking to people and by spending the time to have a robust conversation.
   
   
7. Don’t Cut Prices, Increase Value
   There’s a lot of chatter about cutting prices in a lagging economy. Many small business owners think businesses are cutting back, so prospects don’t have money for their projects. But, by cutting prices, you’re cutting your profits even further. Instead, consider how to “get in and get started.” Divide your offering into smaller chunks, get results, and create traction. Or, give more value. When you offer high-value products and services, people will refer you and you will get more sales, even in a recession economy.
   
   
8. Commit to Building Your Referral Business
   Referrals are always terrific, but they mean even more in a lagging economy. Don’t let the lagging economy trickle down on you. Take charge and make your phone ring again! Let your prospects know how much you care about them. Tell and show just how much you appreciate their business. Inform them that you’d like to help people just like them. And, don’t forget to thank your prospects and clients for their referral.
   

Follow these tips and you will get more referrals. You will attract new business. You will get more clients. You will accelerate your sales. And, you will achieve higher results without increasing your cost of sales. In fact, there’s a great chance that you will decrease your costs!

America’s leading authority on referral selling and founder of No More Cold Calling, Joanne Black helps salespeople, sales teams, and business owners get more referrals and attract more business fast without increasing costs. Now, discover how to turn prospects into clients more than 50% of the time even during a down economy with her Recession-Proof Your Business Emergency Kit at http://www.nomorecoldcalling.com/products.html.

Published Networking Today November 2008

DON'T WRITE A PROPOSAL JUST YET

By Andrew Sobel

In tough economic times, many professionals jump at the opportunity to submit a proposal to a potential client. It is a chance to book new business, and who can resist the adrenaline rush that usually goes along with the prospect of an impending sale? Proposals, however, can be huge time wasters. The problem is that some clients who are not serious buyers will ask for a written proposal. Others may prematurely ask for a proposal before the proper steps have been worked through and the right relationships established. Furthermore, your willingness to write a proposal too quickly will actually position you as a vendor rather than a thoughtful in-demand advisor who is discerning about the work you will take on.

You need to cover all the right bases during the business development process to ensure a successful sale and a fruitful relationship. Here are 8 prerequisites for submitting a proposal to a new or existing client:

1. You are certain this is the right client and issue for you and your firm. Is this an appropriate client – in terms of size, complexity, location, potential to create conflicts with other clients, etc. – given your strategy? It this issue in your "sweet spot?" Is the executive with whom you will work an effective, respected individual in his or her organization? Are there other compelling reasons to seek this work?
   
   
2. You have a thorough understanding of the issues you are being asked to address, and also a clear sense of the business goals or needs which are influencing them. This could happen in one conversation, but more likely will only unfold over two or three discussions.
   
   
3. You and the client have agreed on the specific objectives of the work – on the outcomes that are sought.
   
   
4. You understand the client's buying process. Usually, you will have to ask about this. I believe it is completely appropriate to ask questions such as:
   
   Can you walk me through your decision-making process?
   Who will approve the budget for this work?
   Who will make the final decision about selecting a firm to work with?
   Can you share with me your timeframe for making a decision?
   May I ask, what other firms you are talking to?
   
   
5. You have spoken to or met with the Economic Buyer. This is the individual who can make the decision to hire you and your firm. This could be a middle manager or it could be the CEO – it will vary from situation to situation. Often, the first person who calls you is not the economic buyer. He or she is usually a feasibility buyer (someone who is screening service providers, who can say No but not Yes) or a user-buyer (a client executive who would work with you on the engagement but cannot make the decision to hire someone). The worst mistakes made during the sales process are often around the identity and role of the economic buyer. Sometimes, people think they know who the economic buyer is when they actually do not, and on other occasions they just don't focus in on this critical buying influence, and end up wasting huge amounts of time writing a proposal that never gets a true hearing.
   
   
6. You understand what is most important to the client – in other words, what particular value they are seeking. For example: Is speed critical? How important is cost? What about quality – do they need a very comprehensive review, or a preliminary, cursory examination of the issues? If this a one-off transaction, or is the client looking for a longer-term relationship? Which aspect of your proposed approach does the client most value?
   
   
7. You have discussed the essential elements of your proposal with the client. Before you submit a written proposal, you must achieve conceptual agreement about what is going to be in it. You might say, "Before I send you this proposal, I would like to meet with you to walk through our basic approach. That way I can get your reactions and input before finalizing it."
   
   
8. You have an agreement to discuss the proposal with the client after you submit it. "I'm sending the proposal over later today. If it would fit your schedule, I'd like to set up a meeting later this week so we can discuss it." You don't want to spend a lot of time writing a proposal, and then send it into a black hole. Schedule a phone call or face-to-face meeting to put the client on the hook to read the proposal and share his or her reactions with you.
   

If you haven't addressed all of these points before you submit a proposal, you may be wasting your time.

Just because business is scarce doesn't mean you should jump at every opportunity to write a proposal. On the contrary, you should focus on those opportunities that make the most sense for you and then double-down on them. Really invest to understand your clients' businesses and their key issues, treat them like they are already a client, and add significant value during the selling process.

Andrew Sobel is a leading authority on client relationships and the skills and strategies required to earn enduring client loyalty. He is a consultant and educator to major services firms worldwide. Andrew is the author of the business bestsellers Clients for Life (Simon & Schuster/Fireside) and Making Rain (John Wiley & Sons). He can be reached at andrew@andrewsobel.com (Tel: 505.982.0211). http://www.andrewsobel.com

Published Networking Today November 2008

The Only Way Out Is Through it!

By Kathy Eppley

Wow! The wild ride on Wall Street, all the ups and downs of the market and dire warnings of turbulence ahead, keeps reminding me of a flight I was on many years ago which was, to say the least, one panic provoking, rough ride.

You see, at that time I was terrified of flying, suffered from panic attacks and was totally afraid of heights. So it was with much anxiety and trepidation that I flew at all but on this one occasion I had convinced myself that I could do it.

And it was a smooth flight, everything was fine, right up until the moment the Captain came on the intercom and said...

"Buckle up, we are in for some really bad turbulence from a storm up ahead."

He said he was sorry but we could not get around it or over it or under it and that we could not turn back so the only way to get out of it, our only option, was to go through it!

Go Through It? I thought, no way! Whoa, whoa, whoa! Was he kidding? I did not want to go through it! And if the truth be told, really before the first bump I was pretty much in full blown panic mode.

My massive fear of flying came roaring back. I was sure we were doomed and reacted accordingly, white knuckle clutching the seat and gasping for breath. And boy, did it get rough; we were bouncing all over the sky.

I was sitting in the last row of seats, hanging on in sheer terror. One of the flight attendants was struggling to make her way up the aisle to the back of the plane. Not a good sign I thought as I was sure she was only trying to get to the tail section of the plane because it was supposedly the safest place to be if we went down.

It was so bumpy and the turbulence so bad it even knocked her off her feet a couple of times. When she reached me, she looked down and clearly observed my distress. With genuine concern she put her hand on my shoulder and asked, "What's the matter with you?" And, I gasped out, "I'm afraid we're going to crash!"

I will never forget the look on her face, as she leaned down and put her face right in my face and yelled, "Well, we're all afraid of that!" And with a look that screamed "Get a grip!" she proceeded to buckle herself into her jump seat.

I was stunned! Shocked! Totally taken aback! It absolutely was not what I expected to hear. She so altered my state that she jolted me right out of my panic and fear. And quite surprisingly I felt better. I really felt okay.

Just knowing I was not alone actually made me feel better. I could breathe again. I was not alone; we were all in it together, we were all afraid. My emotions were validated (well, maybe, not all of them).

Best of all, in just a few minutes we broke right through the storm. The captain was right. The only way out was through it. And on the other side of all that turbulence there were beautiful clear skies and smooth flying. It was great! What a relief!

Now, here's hoping that whatever you face, whether it's a bailout on Wall Street or you stretching past your comfort zone trying to take your business and/or life to the next level, just know it's okay to be afraid. You are not alone, we're all afraid. And don't lose sight of the fact that sometimes the best way out, maybe even the only option, is to just go through it!


Kathy Eppley, Income Acceleration Coach and Law of Attraction Expert, will inspire, empower, motivate, and educate YOU to stretch beyond perceived boundaries, take action and get results far beyond what YOU thought possible. She understands the challenges YOU face today and knows how to give YOU the edge that will move your Business and Income ahead in quantum leaps. Contact Kathy at kathy@astoundyourself.com. www.astoundyourself.com

Published Networking Today November 2008