Discounts can easily destroy your profits....

If you sell your product or service at a gross profit of 40%:

• Offering a 5% discount means you need to sell 14% more volume to make the same dollar amount of gross profit.
• Offering a 10% discount means you need to sell 33% more volume.
• Offering a 20% discount means you need to sell twice as much!
• Offering a 30% discount means you need to sell four times as much!
• Offering a 40% discount means you don't break even no matter how much you sell!

These numbers also work in reverse. The higher your price, the less volume you have to produce for a given dollar amount of profit! Even a small price increase can generate significant additional profit.

We know what you're thinking: What if I increase my price so much that I drive away most of my customers? If you've done your homework and are providing more perceived value for your customers than you are charging, this won't be a problem. Even companies that have a monopoly in the marketplace are limited by that perception of value. When a business comes out with a new product or service and they are the first to market, they may be able to charge high prices initially. But those higher prices can't be sustained for very long. Other businesses will see those prices and develop their own lower-cost alternatives. Examples throughout history abound. And the higher the initial price and profit margin, the faster a competitor will come to market with a less expensive alternative. Don't let this possibility keep you from increasing your prices!

Instead, enjoy the additional profitability and reduced workload. Use that increased profit to BUY YOURSELF SOME TIME for the strategic work of reducing your costs, laying the foundation for growth, and researching new market opportunities. Reducing your costs ultimately allows you to reduce your prices while maintaining the same level of profitability, but you need time and money to create that value for your customers and for your business. Don't sell yourself short. You and your business are worth it!

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Strategy tips to sell more products on-line…..

Product pages, blog posts, social networks, and newsletters are the various distribution channels that brands can leverage with compelling content. Using these channels in innovative ways is what sets companies apart from their competitors and how consumers decide where to spend their money. Your website needs to convey trust, rank high on search engines for visibility and be found by people searching specifically for your products with intent to purchase. Here are eight important strategies to improve your website’s content and help you more products.

     Analyze your competitors content as well as your own – Create a list of criteria to review other websites so your research is objective-oriented. Becoming inspired by how relevant websites use content in creative ways may shine a new perspective on problems you’re facing.

1.                           Which products are top selling and how are they marketed?

2.                           Is there an outstanding use of content that helps demonstrate product value?

3.                           What is the personality and tone of their content?

4.                           How is content being used throughout the payment process?

5.                           Are there any product reviews? – note what customers talk about.

6.                           Once a product is purchased, are there actions a user can take in the confirmation email for more engagement?

7.                           Do they offer any promotions, giveaways or host contests?

8.                           How are they using blog posts and social networks to promote their products?

9.                           What content and products are most prominent on their mobile site/app?

10.                     What could be improved about their content overall?

User feedback is the most direct method of knowing if users are grasping the intentions of your content. When users embrace your website and are receptive of your brand, it’s more likely they’ll have intent to purchase.

Survey existing and potential customers and let them know you appreciate their time with an incentive like a freebie, discount, or coupon to ensure you have their full attention. Your goal is to ask them questions that gather their thoughts on your products and brand.  Some sample questions to consider:

1.                           Do they understand the value of your products?

2.                           Did they find all the information they were looking for on your website?

3.                           What do they enjoy about your brand, website and products?

4.                           Do they have any feedback or requests for your products?

5.                           Do they find your pricing reasonable?

6.                           Why did they choose your product over your competitors? (if this applies)

7.                           Have they read or created any product reviews?

8.                           Would they recommend your products to friends and, have they already?

9.                           Did they share your products on any social networks?

What other websites have they purchased products from?

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

8  selling statements to motivate your highly cautious, analytical buyer….(ie; reduce the transactional friction)

1. There has been a great amount of input into this product that ensures it’s quality….. (ie: well researched).

2. Once you have taken the time to examine the facts, you will see that this is the correct decision purchase for you….(ie: provide full factual analysis).

3. You are in a position to examine the facts. Complete the analysis, interpret and draw your own conclusion….(ie: no pressure from me…prove for yourself).

4. With a purchase decision as important as this, let’s set up several appointments where we can examine all the alternatives….. (ie; NO rush on this. NO fast , hard close).

5. I have brought along all the information that you will need to thoroughly investigate the product and determine if it is right for you…(.ie: make sure you have leave behinds).

6. My other clients found this to be the perfect solution to their problem. With your emphasis on standards, you will probably find this fits in well….. (ie: likes testimonials).

7. You can see that our warranty eliminates any risk on your part. We stand behind the product 100%….. (ie; remove the FEAR of  buyer error).

8. This is a proven product, having been out on the market for many years, so you know that you have something that you can rely on…… (ie: likes ‘tried & true’).

People BUY from (sales) people they like. People like to BUY from people like themselves.

“Birds of a feather flock together” …..ie; behave like your customer.

Working with you.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Top 7 Ways To Empower Your Employees, Staff, Or Team…

Empowered employees can bring about amazing improvements in quality and productivity while simultaneously improving morale. When managers empower effectively, they never give up responsibility or authority completely. They merely share these two elements with subordinates. In fact, their own authority is often increased.

Here are seven ways you can empower your team, staff, or employee:

1. Assign tasks that will allow your subordinates to grow and take on additional responsibilities. This will be motivational to them because it says to them that you feel they are valuable.
2. Explain the reason for this task being given to them and let them know "what's in it for them."
3. Always give very clear directions. Explain the overview of the project first and then give them the details.
4. To assure that you and the employee are on the same wavelength, allow them to ask questions and have them repeat your instructions back to you. The best way of all is to do it with them, and then have them do part of the task while you observe to assure that they fully understand.
5. Explain why a procedure is done a certain way. If they understand the reason, they can figure things out on their own much easier and not bother you all the time with questions.
6. Demonstrate that you trust your people. Give them the amount of authority they need to complete the project without checking back with you on every detail. However, you should put controls in place so they know when they should check with you.
7. Solicit suggestions from your employees as to better ways of completing the project. You might be surprised at some of the good ideas they come up with. Let them do it their way, if the result will be satisfactory. 
   
   BONUS TIPS 

o        Get the employee's input as to what is a realistic due date. Be specific as to when you decide it will be due. Don't say, "Get this done as soon as possible." If you need it by tomorrow afternoon, say so clearly.

o        Establish priorities for the work. Make certain that they know what needs to be done first and why.

o        Follow up but don't constantly look over their shoulder and be accessible when they need help.

 

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

How to Close More Sales

When you move from 'vacuum salesman' to trusted advisor you seal more deals.

Every day, I hear from someone who calls themselves a "software salesman" or an "insurance saleswoman," and I wonder why they pigeonhole themselves this way.

And then it strikes me: They are product peddlers as opposed to salespeople.

What do I mean by this? Well, a gifted salesperson can sell anything to anyone. Not because they have great products but instead because they are supremely confident about themselves and know they can charm and intrigue virtually everyone they come in contact with.

And the way they perform this magic act, of sorts, is not by touting themselves and bragging about how wonderful they are, but instead by revealing a genuine and unrelenting interest in others. They care about the following:

• What makes their prospects tick.
• Why they are passionate about their work.
• What they value about business, family, life and friendship.
• Who they are as "regular" people, as opposed to their executive titles.
• What their dreams and goals are.

When people recognize that you are truly interested in them, an extraordinary chain reaction occurs. First they think about themselves. Then they think about you, and they appreciate that you have genuine interest in the traits and attributes that make them unique.

They feel engaged. They feel connected to you in a way no sales manual ever discusses or recognizes. They feel a certain intimacy--that is the most powerful sales builder that can ever be unleashed.

None of this is manipulative. It's based on a legitimate interest in and involvement with others that builds a bridge between you and the client. A bridge of faith, trust, mutual interests, even friendship.

When you obtain this level of intimacy, you can sell the world. But paradoxically, it doesn't come across as "selling" because there is no product or service at the forefront. Instead, there is a personality, an intelligent and compelling human being, developing a bond with another.

How do you know when you have achieved this special status with your customers and clients? Consider the following checklist:

• They turn to you for advice on issues outside the realm of business.
• Your relationship evolves into a form that cannot be defined by an order or a transaction.
• It is clear to you that the other person truly enjoys your company. Being together transforms from a "have to do" to a "want to do."

Do you still want to think of yourself as a "real estate salesperson?" Now might be the time to delete that product from your title.

Does your sales candidate really have the knowledge to sell (and will you pay him for his knowledge?)

A 67 sales situations knowledge test, each situation containing 4 choices of action.

6 samples below:

For each sales situation, rank the 4 strategies by indicating your choices as follows: your first

choice of action is 1, your second choice is 2, etc. Each number (1-4) must be used only once

and every box must have a number in it.

1.  Immediately upon successfully completing a sale, you should:

    ___ Seek referrals.

    ___ Try to sell additional products or services.

    ___ Congratulate and reinforce the buyer on the decision.

    ___ Tell the prospect how you are going to follow-up.

2.   Very early in your presentation, the prospect says, “How much is it?”

You should:

___ Tell him the price.

___ Ask the prospect what he expects the price to be.

___ Ask the prospect what kind of budget he has to work with.

___ Advise the prospect you will be discussing the price once you cover the benefits he

    will receive.

 

3.   During the presentation, the prospect makes a statement about your product

or service that is clearly inaccurate. You should:

___ Say “I would like to set the record straight.”

___ Ask “Where did you get your information?”

___ State that his misunderstanding is a common misconception or misunderstanding

    about your product and then clarify.

___ State that your offering is so sophisticated it is easy for some misunderstandings to

    occur, and then discuss how that can happen

4.   You approach your prospect and discover the person you are seeing is not in a

position to make any type of buying decision. You should:

___ Continue to sell in order to develop an internal advocate.

___ Give your presentation to create a need and awareness of your product.

___ Learn who can make decisions and make an appointment to see that person.

___ Have the prospect invite the decision maker to attend your present meeting.

   5.    After you have been with a prospect for 45 minutes, and she says, “We’re done.

    I’m out of time.” You should:

    ___ Attempt to close the sale.

    ___ Ask for a date and time to return and complete your presentation.

    ___ Ask the prospect if you could have a few more minutes.

    ___ Ask the prospect what additional information she needs.

6.    Early in your presentation your prospect says, “I’ll listen, but I’m not going to

    buy anything right now... no matter what!” You should:

    ___ Advise  the prospect you are not there to sell anything, but to discover if he has a

        need for your products.

    ___ Proceed  with your presentation hoping when the prospect needs your product, or

        is ready to make purchases, he will know of your existence.

    ___ Say “I’m not going to ask you to buy anything today.”

    ___ Probe to discover why the prospect is not interested in buying anything.

And 61 more questions. Test takes the candidate about an hour to complete via the internet 24/7.

Reduce the RISK of a costly hiring mistake.

                                                                                             

        Working with you.

Chris Wilkinson

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

8 quick tips for making the most of your next trade show.

1. Ask open-ended questions (eg: “What sector of the industry are you in?”// "So what brings you to the show?"), or merely introduce yourself. Avoid asking prospects closed-end questions like, "May I help you?"

2. Ask prospects how they would like to be contacted. This helps avoid the frequent problem of prospects taking literature and leaving without giving you a business card.

3. Hone your efforts so you focus on just two or three goals for the show. Then make sure to hit all the key points with every contact.

4. Use balloons. Studies show that, for whatever reason, balloons attract people to trade show booths.

5. Stand next to or in front of your display. Avoid putting a table (or anything else) between you and your potential customers.

6. Take advantage of the opportunity to scope out the competition. Do a little detective work on ways you can differentiate yourself and impress clients who can't decide whether to choose you or one of your competitors.

7. Commit to respond to contacts/prospects within 24 hours of shows end with information, follow-up material etc.

8. Send a personal letter to ALL stand visitors thanking them for their visit to your booth. Enclose additional information, or perhaps a testimonial.

REMEMBER:  Your investment in the trade show decays precipitously each day after your return. Capitalize with fast aggressive action SOON after your return home.

Working with you.

 Chris Wilkinson                

Certified Business Behaviour & Attitudes Analyst.

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net

Consider price bundling for more profitable sales....

Price bundling is a strategy whereby a seller bundles together many different goods/items being sold and offers the entire bundle at a single price.

There are two forms of price bundling -- pure bundling, where the seller does not offer buyers the option of buying the items separately, and mixed bundling, where the seller offers the items separately at higher individual prices. Mixed bundling is usually preferable to pure bundling, both because there are fewer legal regulations forbidding it, and because the reference price effect makes it appear even more attractive to buyers.

Motivation behind price bundling

Exploit different valuations by different buyers

Suppose there are two buyers,  and , and two products,  and . Suppose buyer  values product  at  units above the cost of production, and values  at  units above the cost of production. Suppose buyer  values  at  units above the cost of production, and  at  units above the cost of production.

The ideal thing for the seller would be to practice price discrimination: charge each buyer the maximum that buyer is willing to pay. However, this may be forbidden by law or otherwise difficult to implement.

Instead, the seller can pursue the following bundling strategy: charge slightly under  units above production cost for the combination of  and . Since both buyers value the combination at  units above the cost of production, this deal appeals to both buyers. This allows the seller the obtain the entire social surplus as producer surplus. (It isn't true in general that bundling allows the seller to capture the entire social surplus -- however, bundling does allow the seller to capture more of the social surplus in many situations).

The seller can even make this a mixed bundling strategy: offer both  and  individually for  units above the cost of production, and offer the combination for slightly less than  units above the cost of production.

Chris Wilkinson.                              

Certified Business Behaviour & Attitudes Analyst.               

Business Coach.

Tel: (905) 275-2907 (Mississauga).

E-mail: buspilot@bell.net