The other day I went to a sales teaching and what struck me the most was that the presenter said that you need to be able to walk away from a sale and when you can do that you’ll get more sales. It was a powerful message and when I considered that in fact I went into a sale with a fear of the sale walking away I realized that that in doing so I was giving away the sale because I desperate for it.

A prospect can always tell when you are desperate for a sale, and it makes them trust you less. And when you undervalue your service by offering a discount because you are desperate to get the sale it doesn’t entice them so much as it tells them that you are desperate and that they need you less then you need them. It also tells them that you don’t know the value of your services.

When you feel confident about walking away from a sale, it is also something that your prospect can sense. They recognize on some level that you don’t need them and that if they don’t want your services you can accept that. You can walk away and be no worse for the wear, because you don’t need the sale. You want the sale, you want to help them, but you don’t need them more than they need you. When they sense that from you, it intrigues them, because it also shows them that you value yourself and your services enough to walk away. You know what you are worth.

I’ve promised myself to be able to walk away from future sales. I may not get all of them, but knowing what I am worth and knowing I can walk away is far more valuable to me than anything else. Could you walk away from a sale? Why or why not?

Book Review: The Power of Why by C Richard Weylman

This book should be required for all business owners. The author explains the answer to the question why should I buy from from you and proceeds to reveal strategies and tactics that you can use to make your business more effective for your customers, as well as more customer centric. I’ve applied just a few techniques from this book and I’ve already improved my sales. It’s a book that any business owner should own and read and implement. I plan on re-reading it every year to make sure my business is on track and serving my customers.

The other day I overheard a conversation where a business professional was mentioning that he’d recently decided to charge for his initial consultation with a prospect. He went onto explain that a power partner who’d passed him a warm lead had gotten upset and told him that if he ever did that again he’d never pass him another lead. The power partner was understandably upset, but the business professional also had a valid point: He wanted his time respected and he didn’t want to give away the entire store in his initial meeting with a prospect.

I took the business professional aside later on and suggested that he not charge his prospects on their first meeting, because if he did so he’d have very few prospects. People don’t want to pay for something until they know the value of it and they rarely know the value before they’ve had a chance to get to know you. In fact, I’d argue that establishing a relationship is an essential part of how value is established and charging from the outset can be off putting because the value of what you offer and how it is relevant to the person in need isn’t obvious.

It could be argued that because someone is choosing to see you they should know the value, but truth is that they are in research mode. You may be a business professional with a specific service that will solve their problems, but unless you can clearly establish that value, the person will not buy your services. Your first consultation, your first date is not one where you charge people because the people visiting you are in a mode of inquiry and exploration. They aren’t in the mood to buy and when you charge them an amount you are selling to them, which will turn them off, because they will expect that you will always be trying to sell to them.

There is one exception to this rule. Every time I do a professional talk, I offer an initial consultation at a discount, and also explain that if people aren’t happy with the results of the consultation that I will refund the money, plus pay them an additional amount for their time. The reason I can charge someone for an initial consultation after a professional talk is simple: They are in the mood to buy. If they have listened to me, and found what I said helpful and worthwhile, I have already established my value (at least enough to get them to commit to an initial session) and they are willing to buy that session. I’ve also included a risk reversal clause that will make them feel safe. They know that if I can’t produce results they get their money back, and they get paid on top of it. Talk about a good deal. They can’t lose, because no matter they will get something that benefits them. That’s the only time I ask someone to pay for an initial session, and under those circumstances I’ve actually found that if I offer a free session no one will take me up on it, but that if I offer a session that they can pay for, they will buy it. The reason is: They are in the mood to buy. When you are in the mood to buy, you want something of value.

Otherwise don’t charge for the first date. Instead establish a relationship and a value that demonstrates why they should pay for your services over anyone else’s. If you can do that you’ll get paid what you are worth.

Book Review: Hide a Dagger Behind a Smile by Kaihan Krippendorff

This book is a must read for any business owner that wants to understand how to apply strategy to business. The author shows how 36 stratagems of war can be applied to business and provides case studies that illustrate the use of the stratagems in the modern day world. I’ve already applied a few of the concepts in my business and have found that it has made a difference in how I’m running my business. While you may think this book only applies to big companies, all of the advice can be applied to small companies as well. I know i’ll be reading this book every couple years to keep my strategies sharp and focused.

One of the problems that business owners face with pricing is a tendency to undervalue their services. Indeed, I have to admit that I have undervalued my services at different times and I’ve always come away feeling unhappy because even if I got the business I know I’m not getting paid what I feel my services and time are worth. So why do business owners undervalue their services?

I can’t speak for everyone else, but I can say that I’ve undervalued my services because I wanted to get the business and I didn’t see any other way to do it. So I offer a discount and afterwards feel cheapened for doing it. I realize now that on my end, I’ve undervalued myself because I feel desperate for clients and instead of looking at what I’m not communicating or not learning about my prospect, I’ve just offered a discount, in the hopes that maybe they’ll buy from me. Sad fact is that most times they still haven’t bought from me, because what I’ve haven’t done is actually establish value. Why pay for services or products if you aren’t clear on what those services or products are worth?

You may be undervaluing your services when all you really need to do is establish the value of what you are offering. While offering an occasional discount is good, if you consistently offer discounts you are undervaluing your services either because you don’t believe your services are really worth as much as you are charging or you are desperate for clients. To determine what the reason is, think back to your interactions with the last couple of prospects. What were the thoughts going on in your mind? What did you feel about yourself and your business? Did you feel desperate or did you feel like your business isn’t worth what you are charging?

If you feel desperate for clients, then you need to look at how you are explaining the value of what you offer. If a prospect isn’t biting its because the value isn’t established. Are you just talking about your services or products? Are you listening and asking questions? Are you explaining the benefits of what you offer? Are you linking what will be accomplished with how to person will benefit from your services? Answering these questions can help you determine if you are explaining the value of what you offer. If you aren’t explaining the value and addressing their questions in the process, then you need to work on that aspect of your sales process.

If you don’t feel your services are worth what you are charging, then it’s a good idea to change your prices to the discount, because that is likely what you feel your services are worth. Don’t charge more than what you are comfortable with. People can tell when you aren’t comfortable with what you charge, and that will also deter them from doing business with you.

Don’t undervalue your services to get business. Instead make sure you are establishing the  value of what your services are worth and then be consistent in communicating that value with your clients, prospects, and network.

Running a small business isn’t easy, but there are new options that give small businesses more might. With web-based software solutions coming online every day, small businesses have more and more ways to manage its finances, grow its businesses, and reach its customers.

SaaS

Web-based software offers a compelling business case to small businesses, according to iPlanner.net. Most companies don’t have the resources or justification for a full-time IT department or manager, but need IT support services on an intermittent basis. In a traditional IT and software model, it purchases the product, uses it as needed, then ends up troubleshooting it when it stops working. In a SaaS, or software as a service model, the small business never buys the software; it simply pays an ongoing subscription fee to use it. The software provider manages IT issues by providing experts on an as-needed basis. The small business can subscribe to software package that gives them only what they need, when they need it, for as long as they require the use. No more, no less. The small business also gets the added benefits of constant connectivity and superior security. The software provider can offer expertise in both of these areas a small business generally can’t afford.

Resource-Management Software

Some companies offer robust reporting tools, a holistic view of the state of a business, and can connect multiple functions like marketing, sales, project management and customer service. The base product for resource-management system at netsuite.com is in the top 10 of 2013 accounting software options, according to ZDNet.com. The comprehensive-management tool helps allocate resources, Ecommerce, CRM and automate professional services. It layers additional services with eWinery Solutions, the creator of VinSuite, a specialized program for wineries and wine retailers, states SmallBizTrends.com. How does NetSuite compare to competitors? With a more comprehensive view and reporting tools than basic accounting software, it certainly gives the user more visibility to the issues facing their business.

InFlow Inventory

Intended to help small business track, manage, and optimize inventory, you can pay for the premium and regular versions, or enjoy the free one. The free service lets you create reports, gives you a dashboard with inventory highlights and action items, provides an online backup, and consolidates product information for the small-business owner. However, this software does not integrate with QuickBooks, requiring a manual data merge. The software takes a small-business owner who’s managing inventory in their head or on a spreadsheet to the next level of business intelligence, providing insight and planning tools they may not know they need.

MarketWire

Forbes magazine listed 10 web-based small-business tools. MarketWire offers several specialty products, including Sysomos, a tool that connects businesses to customers through social media. Social media develops conversations, not just between brands and consumers, but between consumers about brands. The forward-thinking business can learn from and listen to its customers where these conversations take place.

The other day a client of mine told me that s/he was feeling some misgivings about firing a vendor. The vendor wasn’t doing the work up to expectations, but the client had a personal relationship with the vendor and felt bad about having to fire her. Firing someone, whether its a client, employee, or vendor is never easy because you are also making a change in the relationship that is a negative change. On the other hand, the negativity has likely been there all along and the firing is just bringing it to the surface. I offer the following tips for how to make this process easier.

1. Evaluate the stress this person is causing you. Is this person causing you a lot of stress? Is the stress worth what you are paying the person to do (and the results s/he is bringing you)? If its a client, is the stress worth the amount of money s/he is paying you? If the stress is more than the value the person brings to your business, then you have to ask yourself how long you’ll continue to let this person have power over you. Someone who causes you a lot of stress essentially holds the power for as long as you are willing to allow that person to hold the power.

2. Evaluate the results the person brings and if those results are truly helping your business. My client’s vendor isn’t producing the results my client needs to justify the costs of the service. As a result my client is losing money instead of being able to put it toward a better use. When you use a vendor there should always be a return on investment of some kind. For example I go to my accountant and pay him/her to take care of my taxes. My ROI isn’t money, but it is the feeling of relief at knowing that the taxes are handled. Whatever you hire someone for, you hire them to produce results and if they aren’t producing those results, then let them go.

3. With clients, raise your prices. If you don’t like a client, raise your prices. Most of the time they will leave because they don’t want to pay so much. If they still are with you, evaluate if the price is worth it. If not, then it’s time to have a frank conversation and let them go, with a referral to someone else if possible.

4. Keep employee issues documented. When you have issues with employees keep everything documented so that you have a record to refer to. If you decide to fire him/her you can then cite that record as evidence. At the same time, try and work with the employee. If s/he is continually resistant or only wants to do things his/her way, then you need to let him/her go.

5. Give yourself permission to let go of any guilt. Guilt is a natural response to feel in this kind of situation, but you aren’t responsible for everyone else’s welfare. We are all adults and we all make our own choices. While firing can be hard to do, you will feel better after its done and the stress goes away. The longer you stay in a stressful situation, the more it will wear you down. Acknowledge your guilt but recognize it is just another stressor related to the person and know that once s/he is gone it will all go away.

Firing someone isn’t easy, but when it is done, it is necessary. You should always place the welfare of your business over someone who is hurting the business, because your business is your way of making a living.