Friday, November 29, 2013

Customer Service Is not Really That Important - Discuss

It was a Sunday and snowy. Expected. All week the weather predicted snow. "On Sunday, wrap up warm" he said, every day, from Wednesday. Now fast forward to Sunday and sure enough it cliche'd winter wonderland scenery. A white out. Plus the weather forecasters are satisfied. As a father I feel it is my duty to take my three year old son sledging. For the first time. (From the both of us I think I am most excited about it). But where do I buy a sled? My other half - half-wise - show rings around me first: a certain period has been predicted for so long. May run in a sled. Too true. The entire south east of England rose bud and a man (woman and child) does not do anything but buy a Sunday morning sled. In large numbers. I phoned the store twelve. Large. Small. And before I even say ... "Sled? All gone mate. Sold damaged last half hour ago ". Father in this sad tragedy, condemning planning my shit, I give up. Son & I crunch into a car and go trickily / slide to Starbucks for coffee and chocolate biscuits cry. 

We parked and I saw a national retailer outlets and accessories camping car (no, I did not mention it). I think it should be worth the effort even though they closed at 4:00, about a half hour. Second to remove snow from our boots and I asked after ... "Sled? Sold out. All morning it lost about half ten ". As we are going to try to keep excited about wiper blades I've heard some positive voice of a little girl in front of the store. He said no more and head to the barn. He returned with a bright red sled. "Excuse me, you can have it if you want? The rest is provided to take the 2:00 but they have not been collected, so that you can afford. If you want it? "If I want it? A red sled. And it did not take the wheel. Err ... OK ... Continued later ... You killed my arm. In summary then, happy father went sledging (in the fading light) with super-excited children and mothers carrying a camera. Net.

This back from them all before Christmas. Today, in the month of April, I went to two national retailers that specialize in auto parts, camping goods, and rotation (I still call them) but for other outlets. I bought a replacement brake light for my car. But the customer service at the other end of the spectrum. A girl at the desk was surly and unresponsive. He just does not want to be there. (Note to self, if there is any mileage in this idea for a TV series, "Grumpy Young Women") And finally Unfortunately, my patient readers I set my point:. This 'two ends of the spectrum' experience shows how important good customer service. Let's talk about it. We write about it. We recommend that when we have a good service. And efficient service to customers and build brand loyalty. I will definitely go back to the retailer says. The good outweighed the bad. But you can be sure if the senior management aware of their contrasting experience I'm looking for a fix. This is the reason why they will rise senior.Being cheaper than your competitors is not sustainable in the long term. Provide better customer service. See for example: Kwik Save: lost. FineFare: go. Peacocks: looks very shaky. Apple: innovation. M & S: be strong. In the digital era of excellence in the ultra-competitive customer service stakes provide excellent support this possibility for a successful partnership.

Thursday, November 28, 2013

You are Risking Relations for the Sale - And Then Losing Still Selling ?

Lost sales may be disappointing, especially if you lose the reason why you not even know of.Traditional sales strategy tells us that sales are usually lost due to some elements - price, features, benefits - associated with our product or service.So, when we sell, we naturally focus on what we sell because we think we should differentiate your product or service so prospects understand what we have to offer it unique.But ... how to focus all your energy on WHAT you sell is actually the main reason Why you lose sales? "No way!" Tell. Nothing? Let us hear, in the words of Ryan my own clients, what happened to the him.

His story will help you understand why you're losing sales without really understanding why. ================================================== = From: Ryan Subject: Unlock My BrainHi, Ari, long since we had gone with, and I'm sure you feel frustrated working with me because I was so deeply rooted in traditional sales thinking. I'll admit that it took me some time to move my sales mindset.I just want to let you know that I finally opened my brain - and consequently the happened.Recently game, I was VP for sale! fully "suggested" to push me to close the largest company accounts I've seen. We are all anxious for them to make a decision, but I know they need to reach a milestone in the process of their own again first.I tried to convey this to my VP, but suggestions to ask, and we continue down the "" street our method and others to convince them to go with us. 

Of course, I had VP per call after this.At end of the day, they decided to go with someone else.When I asked them for feedback, I got a real wake call.They initially told They felt as though I really understand the process and their problems. Our prices are somewhat higher than our competitors, but what stands out is my approach to understand them and do not push sale.They feel like I really have their best interests in mind, So they hear me out. But when I began to push closer, they saw that I was just like everyone else is selling, so they have to make their decision based on price, not on the value of our relationship.The relationships, and consequently the sale - which I invested a lot of time developing - died when I put on the pressure. 

By using the traditional approach to sales, I ended up sacrificing relationships and experience sale.This is what I need to unlock my brain and realize the impact of the traditional approach to sales prospects (or the I must say, "people"). I finally feel like I found the missing ingredient that makes selling experience a natural, productive sales really take me instead of losing them.Warmest Regards, Ryan ============ Ryan ==================================== === story points to a very important lesson: If you do not You have to approach a perfect balance of penetration of non-aggression and effective basic needs of your prospects, you will end up asking yourself from time to time, "Why did I lose the sale, and if Why seller become so painful? "You can take the risk and the association lost sales, but with different sales mindset, you do not risk anything - because you can maintain relationships and make sales.

Wednesday, November 27, 2013

Higher Prices Lead To Higher Profit - Part 1

I know at first glance this sounds obvious, but it may be worth it for you to think about your prices. At least just for moment.How to decide your current price? Did you conduct market research to understand what the prospect will pay? Or do you compare yourself to your competitors and be based your price on that? Or is it a crapshoot, and random shooting in the dark? This is the way most people do, and they're all wrong. Due to the price you charge for your products and services is more important than you think.

The following few paragraphs a bit heavy, but stay with me because it would be very important for you to understand.Let 's say you sell high-margin products - information products and software are two excellent examples. Price is $ 60, and your cost is $ 10 - which means that your gross margin (selling price - your cost) is $ 50 each time you sell a unit. Suppose further that the overhead is $ 5,000 per month. 

If you sell 100 units will break even, now want to sell more, and decided to make some business from competitors by lowering your price -? Temporary. Lower it to $ 40-33% discount, and not worth $ 10 and uncommon.Your fixed overhead was $ 5,000, now only your gross margin is $ 30-60% of what it was before. And how many units you need to break even now? 166! That is 66% more sales units required to attain the 33% price cut! But what if you are feeling very aggressive and you get half the price (also not unheard of) to $ 30. Now you will have to sell 250 units - just cut though! It is 2-1/2 times as much as before. How easy do you think that we will use another example - something that has real production costs. This time, your product sells for $ 100, and charge you $ 50 of goods per unit, for gross profits of $ 50. Both overhead costs of $ 5,000, the number of units to break even. Now imagine you 20% price cut, to $ 80, leaving you $ 30 gross margin. 

Need to sell 66% more units. Ouch! What if you cut the price to $ 70. The price cut of 30% means you have to sell more units of 2-1/2 times - just stay even.Let's go further ... The competition is really heating up, and you think they are match cut to cut is the way to go. The price for this amazing widget you are now a bargain basement $ 60. (Salespeople Shucks, it is only 40% of your original price. And business owners do this every day.) How many units you need to open though? 500.Five hundred? That is five times your original number.Do you really think you can sell five times what you did before - at least without significantly increasing overhead and variable costs to sales How many times you've done it as response to competitive pressures How? Many times you cut the price because you think it will help you sell more? What we just did is a simplified version of the so-called margin learning, and I hope it provides a glimmer of what can happen when non-priced. 

For the most part, your rebate will not automatically allow you to sell 66% more than you did before, and in general - at least not in the universe - you do not have to sell 250% more, and not You never sold 500% more with the kind of price cutting.But there is some good news - and it's very visible good.Let 'what happens when you raise your prices.Remember your high-margin products. It sells for $ 60 and worth $ 10 make.Through good product positioning and marketing is very nice raise the price to $ 70. That was up 15%. Now you only need to sell 83 units to break even, and if you sell the same 100 units, revenues went from $ 0 to $ 1000. Good highlights ... And that the product is "hard" - the one with a $ 50 fee? Raise prices by 20% to $ 120, your margin increased to $ 70, and now your breakeven drops 71, and you make $ 2000 if you sell the same amount them.

See how it work? You can do the same study a little more sophisticated manner, considering the cost of your marketing, sales or affiliate commissions, travel expenses if you have them, and so on. You can see the effect of the actual price varies greatly depending on details.If have high leverage, pay-only-for-results affiliate model, a very high gross margin and almost no fixed overhead, much to price flexibility. You can cut the price to 25% only need to sell 15% more! It was not too bad at all.But just kind of model. If you have an office, some staff, and physical products - in other words, the price-low fixed overhead can kill you - and even if you see a higher price coming.

And They can make you rich.By now? begin to see the tragic effects of mis-pricing on the downside, and the possibility of raising wonderful prices.This only enrich your work, of course, when you can also increase your value proposition .. . Stay tuned for part 2.Follow the link at the bottom of the page to get a copy of the excel spreadsheet to play with. Get a spreadsheet, enter the number of their own. It's really blow your mind. Also, please feel free to pass this article or spreadsheet to your friends and colleagues. They will certainly appreciate it. (C) Copyright Paul Lemberg. All rights reserved