The danger of discounts

Caving to price pressure wrecks your credibility

By Gary Harvey

Benjamin Franklin said, “The bitterness of poor quality remains long after the sweetness of low price is forgotten.” What a powerful and true statement. But do you believe it and stand by it when you sell? Today’s prospects are better than ever at pressuring you about your price. And they get to use the economy as an excuse and leverage to beat you up to get you to lower your price.

This sound familiar? “You know Mr./Ms. salesperson, times are tough out there and I really, really do like you and really want to buy , “but” can’t you help us with that price? We just can’t afford that price in today’s economy.” By the way, the “but” word is the most dangerous word in sales next to “think it over.” Did you know prospects love this down economy. Why? They get to use it as leverage on you and your price. And why do they do this? Simple. Because it works on “too” many salespeople . My sales rule? “You’re not selling if you’re buying your prospect’s stalls and excuses .”

It never ceases to amazes me why a company will spend days formulating their price list and then with a bit of pressure, they cave and not adhere to it. What’s the point of having a price list if you don’t stick to it?

Throw out the list if you’re not going to stick by it. Do you realize when you quote a price and you cave from pressure and discount, in so many words without actually saying so, you just told unknowingly your prospect, “even though I have spent the last hour telling you how great our product or service is, I really don’t believe it since I’m so willing to discount it once I get some pressure from you.”

And to all you managers out there that allow your salespeople to discount, do you realize also what you are telling them about your belief that what you sell is really not worth what you priced it at if you allow your salespeople to discount? To my point, why have a price list if you don’t adhere to it???

I’m sure many of you are saying right now, “but Gary, in this economy we have to discount.” Be willing to look in the mirror and ask yourself, am I “buying” in to the stalls and excuses my prospects are giving me?

Most salespeople discount for four main reasons. One, need for approval and the need more to be liked than close a deal at “their” price. Moderate to high need for approval salespeople discount all the time. Two, they don’t know my second rule , “salespeople have rights” and you have the right to get paid what you’re worth and what you charge for that worth. Three, they simply have never been taught the skills and tactics how to handle price pressure from a prospect. Four, they need the business vs. want the business.

Prospects can detect a needy salesperson a mile away and they know and will apply the price pressure on that needy salesperson. Act like you want the business “if” and “only if” it’s the right fit for you and your prospect . And if not, be willing to walk away. Remember, some will, some won’t, so what? So move on.

Gary Harvey is the founder and president of Achievement Dynamics, LLC, a high performance sales training, coaching and development company for sales professionals, managers and business owners. His firm is consistently rated by the Sandler Training as one of the top 10 training centers in the world. He can be reached at 303-741-5200, or gary@achievemoresales.com.

Compliments of  My Next 30 and Lew West Business Consultants

Potential customers are very wary of any one saying something similar to –

“Look what I have!   I’m sure… If You Will Just Try It

… you will be so delighted that you will

…Find a Way To Use It … and call me often to restock your supply!”

In today’s world, no one wants to be sold.  Customers claim the right –actually they Demand the right – to make their own decisions. 

Not only must you gain customer trust and prove your credibility, they want to know your product or service can be of value to their unique business or life style.  They are too busy to figure out a way to utilize your product or service, or even want to.  Each person feels that their style or method is unique from all others, thus requiring you to identify their problem and adapt your product or service to addresses their unique situation. 

P.S.  Using the analogy that there are only a limited number of ways to pickup doggy-doo – therefore purchasing your widget will take care of whatever problem they might have pop up – will not help close the sale.

Shifting from your ‘Benefits’ approach to their ‘Values’ need is very subtle, but the results are well worth the effort.

Compliments of  My Next 30 and Lew West Business Consultants

http://www.MyNext30.com  and  http://www.LewWest.com

]]> http://www.mynext30.com/credibility-or-doggy-doo/feed/ 0 http://www.mynext30.com/tired-of-doom-and-gloom-headlines/ http://www.mynext30.com/tired-of-doom-and-gloom-headlines/#comments Thu, 26 Apr 2012 19:52:15 +0000 My Next 30 http://www.mynext30.com/?p=330  

Count your blessing, we’re told – but it’s just not in our nature.  We’d rather count our problems. We have survived by reacting instantly to threats, and the ancient humans who stopped to smell the roses made easier targets for predators.

Today, the predators are mostly gone, but we’re still so primed to pay attention to bad news that we tend to ignore what’s going well. As soon as we solve one problem, we take the progress for granted and find a new cause for alarm. Every now and again it doesn’t hurt to take stock of just how good we have it.

Start counting: Two of those reasons are Free time and Peace.

1.  Free time

  As much as we complain about being busy, the typical American has more free time than ever – more than five hours per day, according to time surveys by the U.S. Census Bureau and researchers at the University of Maryland and Penn State. That’s a gain of nearly an hour since 1965 and a gain of about four hours since the 19^th century. In Victorian England, when life expectancy was only about 50, worker­s put in 60-hour weeks, from age ten until they died.

  If you feel too busy, it’s probably only because you’re doing so many other things than work. Over the course of a lifetime, you typically spend no more than 20 percent of your waking hours on the job, and experts say there’ll be even more free time in the future as life expectancy keeps in­creasing and work hours keep shrink­ing. By 2050 in the industrialized world, it is projected that the average work week will be just 27 hours.

 2.   Peace

Wars and terrorist attacks will always make headlines, but it’s remarkable how many of the world’s 6.7 billion people now live in peace. In recent decades, despite the growth in pop­ulation, the number of war casualties around the world has declined, ac­cording to the Human Security Re­port Project from Canada’s Simon Fraser University. And despite a new fear of terrorism following 9/11, ter­rorist casualties have been declining in recent years.

In some earlier generations, a quar­ter of the male population died vio­lent deaths. Over the past century, even counting the world wars, a per­son’s chance of dying from war or violent civil strife was less than 2 per­cent, according to John Mueller, a professor of political science at Ohio State University. That means that the scourge of war is now comparable to the statistical risk of driving a car in the United States.

– Based upon article: By John Fierney:  a columnist for the Science Times section of the New York Times.

Compliments of My Next 30 and Lew West Business Consultants  

After a good laugh you realize there is a lot of truth in these statements. Sometimes we just need to remember what the 13 Rules of Life really are:

1. Never give yourself a haircut after three margaritas.

2. You need only two tools: WD-40 and duct tape. If it doesn’t move and it should, use WD-40.  If it moves and shouldn’t, use the tape.

3. The five most essential words for a healthy, vital relationship are, “I apologize” and “you are right.”

4. Everyone seems normal until you get to know them.

5. Never pass up an opportunity to pee.

6. If he/she says that you are too good for him/her – believe them.

7. Learn to pick your battles; Ask yourself, “Will this matter one year from now? How about one month? One week? One day?”

8. When you make a mistake, make amends immediately. It’s easier to eat crow while it’s still warm.

9. If you woke up breathing, congratulations! You have another chance!

10. Living well really is the best revenge. Being miserable because of a bad or former relationship just might mean that the other person was right about you.

11. Work is good, but it’s not that important.  Money is nice, but you can’t take it, or anything else, with you.  Statistics show most people don’t live to spend all they saved; Some even die before they retire. Anything we have isn’t really ours; we just borrow it while we’re here… even our kids.

12. Be really good to your family and/or friends. You never know when you are going to need them to empty your bedpan.

13. If you are going to be able to look back on something and laugh about it, you may as well laugh about it now.      — Anonymous

Compliments of
www.MyNext30.com and www.lewwest.com

First Visit always Free

Whether is it is a desire for a Life or Business change, all you need to do is develop it the same way as any vacation trip you might want to take from here to there.  For example, pick a specific place as your vacation destination. (This represents where you want to be when you or your business is mature).

Once you have decided where you want to go on your trip, you start making plans. (This is your concept/vehicle you will use to reach your life/business destination).

In order to assemble what you’ll need to take, develop your agenda of events, meetings, visits with family, friends, excursions, etc. that you want to do during your trip.  Schedule times so you can conclude your trip when and how you want to. (strategy and milestones)

Prepare your vehicle (concept) to prevent as many problems as possible during your trip.  Be sure your spare tire is up and you have an emergency kit in the trunk.

What is the cost going to be?  Calculate from milestone to milestone (could be daily costs, or by stop-over, or …) Once that total amount has been gleaned from your gathered information, you’ll know if you have that amount available now, or know how it will be coming in the future.

Now that all of your ground work covered, you are on your way!

Have a Great and Fun Trip!

Compliments of
www.MyNext30.com and www.lewwest.com

First Visit always Free

]]> http://www.mynext30.com/you-dont-need-a-coach-or-consultant/feed/ 0 http://www.mynext30.com/how-much-of-your-life-is-obsolete/ http://www.mynext30.com/how-much-of-your-life-is-obsolete/#comments Tue, 03 Apr 2012 13:56:43 +0000 My Next 30 http://www.mynext30.com/?p=302 It is always a surprise when you suddenly discover something you have taken for granted all of your life is obsolete, and that many young people today haven’t a clue of how to do it – and probably never will.  Point of reference – Cursive Writing.

I have written cursive since the 2^nd grade.  Printing was abandoned soon after because it took too long, but it was fun for special effects.

Typewriters were fine, but not portable like the keyboards of today. Can you imagine taking one of the old typewriters into a classroom today, set it up, roll in the paper, adjust it, return the carriage and begin clattering the keys as the instructor started the lecture? I don’t think so.

In today’s world, however, printing is now the only writing style being taught. Use of pen and paper is being phased out; certainly cursive writing is already only used by those of us who enjoy it or those using it for a specific purpose.  Even check writing is becoming a thing of the past. Today’s young people communicate by texting and a myriad of social media options.

The one thing I relish thinking to myself – the shock when tomorrow’s kids start trying to get today’s kids motivated to become engaged in “the world we are living in now!”   It will happen.

What are some of the adjustments you have made in your life these past few years?

Until we think about it, there are many we didn’t even realize we were making.  Some changes we made might have seemed small to others, but we remember them as a Big Deal.

Nevertheless, time moves on and we are all adapting in our own ways.

What are you going to be doing for next 10, 15 or 30 years?

Compliments of

My Next 30

and

Lew West Business Consultants

You need to prepare for today’s meeting, develop another marketing campaign, write a blog post, write a presentation, go by the store, calls to make, follow-up, write a proposal, check your FaceBook, Twitter, LinkedIn accounts … and that is just what you are currently thinking. What have you forgotten?

Feel the rush of stress wash over you?

When we step back and take a good look at what is happening, it is unnerving to see the ‘To-Dos’ have taken over our life.

A suggestion in contemplating how to regain control might be to think about who is responsible for getting all of these things done? You. But if you aren’t the one in control, how can you succeed?

 First step: Try to block the ‘To-Do’s out of your mind as much as possible; take a deep breath and think about what you really want out of life. – Not what you think you should want; or what others want; but what you want out of life. Jot those things down-and don’t worry about being outrageous. This is for your eyes only. You can always add or adjust these dreams. After all they are yours only.

 Second step: If all of this was spread over the next 30 years, or even 15 years, estimate what it would cost per month. (Not as much as you thought, right?)

Third step: Now determine your vehicle(s) to achieve these milestones. A vehicle is a business, or any other means of funding you may have or can create. Is this vehicle what you are currently doing? Is it something you have always wanted to do? Is it what you want to have as part of your next 30 years?

 Fourth step: Go back to that large list of To-Dos that woke you up. Which ones fit your milestones? Prioritize them according to importance to you and your milestones. You will find you are able to check them off the list much faster now because you now know ‘What’s In It For You!’

What have you planned for your Next 30 Years?  Share your thoughts ~

Unless you are a convicted felon serving life without parole, you probably haven’t given that much specific thought to your life, especially targeting a 5 year milestone. And certainly not 30 years!

You may have a vague desire to have the mortgage paid down, credit cards paid off, build a patio, retire, visit relatives and old friends, run a marathon, etc. but you’ve never written down a tangible plan or commitment to make it happen.  The truth is, people tend to spend more time planning their vacation than they spend planning their lives.

Ironically, if you are – or have been – in a business, you can probably project with some degree of accuracy, good or bad, where the company will be in 1 year, 5 years, or even 10 to 30 years in the future.

It is an understood fact that outside events will skew your carefully plotted plan to reach your goals.  Knowing this, you are always on the watch for economic and life changes along the way.  Despite the occasional adjustment to your on-going, written, strategic plan, your core goal will be reached.

The important thing is to have an objective, long-term purpose/goal to reach. Begin writing down your goals and how you will achieve them – Today.

 1.  The Plan describes a marketable idea.

Lenders and investors want to see proof that customers want your product or service and are willing to buy it for a price that gains you a consistent profit.

2.  The Plan must show good profit potential in a short period of time.

Because new business ventures are so risky, they are expected to earn at least a 25% annual return, and preferably more.

3.  The Plan targets a clearly defined market with enough size and purchasing power to produce a profit.

 Lenders and investors look for businesses whose target markets are clearly defined. They also prefer large markets with high growth potential, but avoid businesses that try to be “everything to everybody.”

4.  The Plan explains clearly the “competitive edge” your product or service has in the marketplace.

The more unique your product or service is, the better.   Show how you offer the customer something the competitor doesn’t or can’t.

 5.  The Plan shows the company’s ability to control both the quality of the product or service and its delivery.

Dependence upon outside contractors and sales representatives can be considered a potential weakness when quality of delivery, installation, and service of the product is primary to the company’s success.

6.  The Plan shows that managers and employees have the skills and the experience to make the company a success.

Lenders and investors don’t put their money into a business; they put it into its people.  Skilled, experienced managers and employees can make a business work even when resources are stretched thin and conditions are tough.  Lenders and investors also know that experienced managers and employees will improve their chances of getting their money back.

7.  The Business Plan idea is not overly complex.

Trying to do too much too fast—and/or having to educate the consumer about a product’s or service’s benefits–can put a company under before it can even get started.  This applies to expansion plans as well as start-ups.

8.  The Plan shows a personal investment in the business.

If you don’t believe in your own venture enough to invest at least some of your own money into it, no one else will want to either.  “Sweat equity”–unpaid personal time and hard work–can be important, but lenders and investors prefer to see an entrepreneur motivated by a substantial financial stake in the business.

Next week in our Part III conclusion, we will summarize 9-11 and answer the question:   “BUT – What if you aren’t able to secure funding?”

 Compliments of Lew West Business Consultants 

 www.lewwest.com  Blog  www.MyNext30.com

Third Party Lenders are often a good source when banks decline your loan request. When you can show you have a healthy company they are usually able to be more creative than a bank. The criteria still includes showing a history for the business, and that it is capable of making a profit.

Potential lenders or investors are keenly aware of the risk and want a return matching that risk:  the greater the risk involved in the venture, the greater the return demanded.  There are a number of factors they will take into consideration when reviewing your Business Plan, however if you have a solid plan, your chances are greatly improved.  Some of those factors will be discussed next week.

Compliments of Lew West Business Consultants 

 www.lewwest.com  Blog  www.MyNext30.com