We all want to put out quality content. But did you ever notice that people who put emphasis on quality never do anything? Why is that? It could be because they are lazy, but it could also be because they have imposter syndrome. Continue reading “quantity vs quality”
We would all like to make more money. And to make me more money is to make more sales. But how do we make more sales? How do you make sure that our graph keeps showing a constant Improvement? In this post, I’ll go for the four things you need to master if you want to crush your competition. Here are my thoughts on how to be a good salesman Continue reading “how to be a good salesman – the four steps to assure that you crush the competition”
When I was 20 years old I had a business that failed, not because I couldn’t get clients, but because the tax laws were too harsh. It took me years to pay back the money I lost and I was so angry at the world. But yesterday after getting an offer to invest I noticed that there was an upside after all. Continue reading “The upside to losing $100,000”
When you focus on your family your family will expand. If you focus on your business your business will also expand. But it’s not the same thing when you focus on money. Why is that?
The main reason is that when you focus on money, you start over optimizing. You start retracing your steps and constantly trying to improve them, which is basically a good thing. But too much of a good thing is bad for your wallet. Not to mention that money is not the process it’s just the score.
Think of a basketball game, the process in the game working with your team to give your 110%. As a fan, you focus on the score, but if the players would focus only on the score they would try to over-optimize their shots resulting in a horrible game. A game that is not fun to watch because it will be too technical. It’s the same with your business.
The process is working with people, finding out what you can do to improve their lives. That’s the game, the money you are paid is just the score.
So if you want to make more money you have to focus on your clients. You have to make sure you’re giving them the best experience you possibly can. You have to make as many raving fans out of them as you possibly can. When you do that the money will take care of itself. You will start to see a constant increase in your bottom line.
We all know that you need to check the right V when selling your product. The fact that some clients hide their abjection to buy just makes it harder to do your job. Wouldn’t it be great if there was a tool that would help you uncover the reason that prospect didn’t buy?
People have gotten used to having things done easy and on the spot. While this will work, it will only generate a low conversion rate. If you follow up correctly it will provide you with two things. One is the option to close another client. And two, it will increase the types of rejections you know how to deal with.
The wrong follow up
The follow up is not meant only for the client that says they will have money in a week or so. It’s a great way to gather more information. But you have to be smart, don’t just go for a quick close. Ask questions, let the prospect know you want to understand him.
The right follow up
If you’re talking to a client that asked you to call back later, ask him how he’s doing. If he indicated that he was on a trip ask how it was. Try to get him to bring up the product you want to sell.
If you’re calling a prospect that already said no to your product, acknowledge it. Start the conversation with “We talked a few weeks ago and I understand you don’t want to go forward, may I ask why?” When you acknowledge the fact he said no, you defuse the tension. He’s no longer defensive and waiting for your pitch.
Now that the prospect is willing to listen to you, ask what you could have done differently. What he was expecting but didn’t get. Sometimes those requests will be out of the question, but sometimes they will be small requests that you can solve on the spot.
So when he brings up one of those small rejections go deeper into it. Let’s say he said the price was too high. Ask him if he got a lower price and what it was. If the difference is something you can comfortably handle, ask if he would close now if you gave him a discount.
It’s that easy
Not everyone is going to buy, but if you increase your conversions by 3% to 5% isn’t it worth it?
We are all humans and can’t possibly remember all our clients and tasks, that’s what CRM programs are for. The problem is that programmers are more times than not like the rest of us. They have flawed logic and think like machines. A CRM is not just meant to keep data, but to display it in a manner that allows the user to get the information he needs when he needs it.
So here’s a list of unacceptable flaws a CRM can have that are causing you to lose money.
An unorganized CRM
Sounds stupid I know. But sadly there are a lot of CRM’s out there that have no way to organize. By that, I mean that you can’t mark an action on the list of contacts indicating that you have completed a task. Either marking or removing them from the list is crucial to work quickly and efficiently.
CRM’s that don’t allow you to mark your tasks cause you to go over and over the same contacts. This is the main reason CRM’s were invented, providers that don’t get this simple concept should not be allowed to slow your business down.
A CRM that is too slow
The employees get paid for their time but you don’t. The more actions you can take in a day will determine how much money you can make (I’m talking about your whole team here). Thank god we’re not in the dial up era, we shouldn’t have to work as if we are. CRM software sends and receives text from the server, so there’s no excuse for slowness. I’ve seen CRM’s with up to 5 second response times. Can you grasp how much money you would lose in a 20 man call center if every action is delayed 5 seconds?
As little as it sounds, you would lose up to two-thirds of your effectiveness. That means that for every dollar you pay your team you’re flushing two more down the toilet.
I have seen only a handful of CRM’s that incorporate goals, you would think there would be more. Your workers don’t care about your business, they care about their paychecks. Instead of having to remind them what is expected of them, wouldn’t it be easier to show them? Having a gauge showing them what actions they have to take today. And how close they are to completing them will do wonders for your business. It doesn’t have to be something graphical just some indication of how many actions they still need to take today.
I have been working with a CRM for the past few weeks that fails miserably in all of the above. And my clients don’t see why this is important. I can’t help someone who doesn’t want my help, but hopefully, I can save you some money.
They’re many points failure in business. But most more times than not the smaller points of failure are much more dramatic than the big ones. Because when something dramatic happens you notice it on the spot and take care of it. But when something small starts germinating in your business you don’t always notice it. At least not until it’s too late. The point of this post is to show you one of those small points of failure that destroy most businesses, and teaches you how to avoid it or at least correct it.
Business owners that have failed will tell you that the problem was cash flow. But cash flow is a broad term. It’s a specific part of the cash flow that killed those businesses. There was one thing specifically that they were doing wrong. If they just paid more attention to that point their business would have survived.
I’m talking about discounts, or to be more precise discounts that cross the profitability line. When you price your products you know exactly when you’re not profitable anymore. You know how big of a discount you can give your client before you start losing money. Understandably your Salesforce doesn’t know that, neither does your retention or customer service. It’s your job to make sure that there are clear lines that cannot be crossed.
But we’re talking about smaller businesses, businesses with only the owner and one maybe two employees. Those business owners are trying to get clients by any means necessary and sadly more times than not the competition comes down to price. Let me just make one thing clear, if the competition comes down to the price you’ve already lost. You either lost a client because your competition is giving a lower price or you lost your profit margins because you priced too low either way you lose.
It sounds like something simple, something small but it’s not. I have no known businesses that have failed after 12 to 20 years of service to their clients because of this little loss. This little leak has grown throughout the years to a point where it’s an unstoppable boulder crushing your business.
I’m not saying not to give any discounts what I am saying is pay more attention. If you do things right you can give those discounts and still be profitable.
How do you do that?
Calculate the bare minimum, how much do you need to charge to Simply break even. Add 30% to that as your minimum profit. this is the bottom line This is as low as you can go. add another 30 to 40% to that. This little modification provides you with two important tools. One it will provide your starting point from which your client can Haggle you down from. And two it provides a safety cushion just in case too many clients are asking for that discount the few that won’t and will pay full price will cushion your profits and make sure your business services.
As you’ve seen these discounts can increase your sales but they might also destroy your business. Marking up your prices will provide you with a needed cushion for the loss your mistakes will cause. Until you learn to distinguish between good clients and bad clients.