Toronto Business Development Centre Blog

Thoughtful Thursdays -

2012-01-26T09:49:00.000-05:00

We see competition every day in almost everything we do. Whether it is purchasing necessities of life or deciding on how to use our discretionary budget. Competition keeps us on our toes.

We run across situations where the competition may be much larger and established. When starting a business it is often one of the most common obstacles to overcome. How do you compete with the big guys?

When you run into that kind of competitive situation think about your own buying habits. Specifically identify the suppliers you patronize who are not the big players. It could be the corner store, an independent garage, or any number of privately owned retail outlets.

Once you have this list, make another stating the reasons why you do business with them instead of the larger alternatives.

If my suspicions are correct, the reasons for your loyalty will be related to service or convenience. It will be due to a more enjoyable buying experience. The factors that affect the experience can be numerous, but in my experience the word "enjoyable" keeps coming up. You like dealing with them.

Your business can compete with the big guys. It may not be on total revenues, employee count or physical size of facilities. If those are the most important factors when your customer makes a purchasing decision, you are not likely going to get the business.

If your prospects are looking for the same characteristics demonstrated by the smaller suppliers you deal with on an ongoing basis, you can be superior and compete very successfully. It has been said many times by many people - bigger is not always better.

Good selling,

Richard

Thoughtful Thursdays - Is time your friend or foe?

2012-01-19T08:00:00.000-05:00

In recent weeks I have experienced a common point of discussion in meetings with my clients. I would like to share it with you today.

It is the age old issue of running out of time. A colleague says, and I agree, that it is endemic to new business owners. I would also take it a step further and add that at some point everyone experiences the feeling of having too much to do and not enough time to do it. Time becomes the foe rather than friend.

Some seem to be able to achieve an incredible volume of productive activity in a given time and others are overwhelmed and become paralyzed.

It may be that your expectations of what can be accomplished in a certain amount of time are unreasonable. This can lead to over booking yourself and the result will be that you are not able to cross every task of your list. You might benefit from reviewing your processes and re-mapping them to determine total effort and duration required.

You may be allowing more than enough time, but distractions cause delays. It is worthwhile to analyze the source of the distractions and put helpful routines in place. As an example, you may want to block off parts of your day for uninterrupted work. During that time you do not answer the phone or take other meetings. Stopping and re-starting can be a real time eater. This time is dedicated to a particular task. If you do this, you want to schedule times when you check voicemail and return calls. Working from a home office requires added discipline to minimize the effect of the numerous distractions that inevitably surface on a daily basis.
Events not in your contol are more difficult to address as they often cause a well timed process to be compressed. Depending on the root cause, you may be able to negotiate for additional time and it is worth having that discusssion.

By adopting routines that work to put you in control of your time it can turn it into a best friend. Time does not have to be your foe if used wisely like any other valuable resource.

Good selling,
Richard

Thoughtful Thursdays - The other price objection

2012-01-12T08:00:00.000-05:00

Today's thought is about the other price objection. Not every business will face this price objection, but it is worth discussing, especially if you submit price quotations and proposals.

This objection may not be verbalized yet almost always results in loosing the business.

You work hard determining the needs of your potential customer and establishing the value of your products/services. Everything is looking favourable and you are ready to prepare and submit your quotation.

If you look at the accompanying image, at first glance everything looks okay, but upon closer examination something just is not right. Graphic artist M.C. Escher is famous for his so-called impossible structures simplified by this impossible triangle.

The objection I am referring to is the opposite of the most common "Your price is too high."
It is "Your price is too low." The value that you worked so hard on establishing has been betrayed by a low price. The customer has decided that the products/services being offering can not be delivered for the indicated price.

You have heard the phrase "If it sounds too good to be true, it probably is."

Be competitive, not unbelievable.

Good selling,

Richard

Thoughtful Thursdays - Managing your prospect list

2011-12-29T11:27:00.002-05:00

All your customers were once prospects. Without prospects there will be no customers. Yes we have heard it all before.

Today's thought is about managing your prospect database. It is one thing to have a long prospect list and another to be working the list for maximum return.

Can you have too many 'hot' prospects? My answer would be yes, if it means your level of service is being negatively affected by the work load. Trying to be everything to everyone at the same time can be a risky and stressful way to do business.

One way to mange your prospect list is to grade including the following criteria:

Sales potential, short term and long term

Profitability of the potential business

Probability of closing the sale
Likelihood of the sale closing in 1 month, 2 months, 3 months or longer

Where they are currently in the buying cycle

It makes sense to focus on confirmed high potential sales targets that have a high probability of closing in a short period of time. This information will also allow you to more accurately forecast sales.

Many times I have seen sales people spending too much time on low potential prospects. On the other side of the coin, be mindful of being seduced by the lure of a huge apparent potential with little chance of closing the deal. Make sure your information is sound and that the insights you draw are realistic.

Be wary of "Hopium" and "Happy Ears" as described in detail by author and sales expert Dave Kurlan.

Good selling,
Richard

Thoughtful Thursdays - A worth objection

2011-12-29T08:00:00.000-05:00

During a recent client meeting I was asked two related questions: "How do you convince a prospect that the services offered are worth the investment?" and How do you approach the skeptical response?"

A bit of background first. The prospect belongs to the target market identified by research conducted. The prospect also confirmed a situation where the service offering might very well be part of a solution to their needs, yet they were still not convinced.

My response to the questions came in the form of two of my own questions:

Can you provide a detailed list and have you considered all of the prospects confirmed needs?
Have you done the math to quantify the benefits?

The point I was making was that sometimes we take for granted that our prospects will see the benefits without having them explained in detail. We think they will join the dots and make the leap to understanding how our products/services will return much more than the original investment.

It is not always a reasonable expectation. After all, it is likely they are not experts in your field and that is one reason they are talking to you.

It is reasonable to expect to encounter an objection if your prospect is not clear about how your offering is going to address their needs.

Today's thought is about being a good consultant. Get to know how your prospect and their business. The skeptical response usually cones as a result of not clearly articulating the value you are offering. Ask a few more questions - find out where the disconnect is and address it. Be patient and listen closely before you respond.

This wraps up Thoughtful Thursdays for another year. Thank you for tuning in and all the best for a successful 2012.

Good selling,
Richard

Thoughtful Thursdays - Is it okay to ask for more?

2011-12-22T08:00:00.005-05:00

The other week I happened to catch a few minutes of the 1948 version of Oliver Twist, enough to see the famous "Please sir, I want some more" scene.

At the risk of being perceived as unsympathetic to the grim situation Oliver found himself in, let me make myself clear that there is absolutely no disrespect intended.

It starts out innocently - a small revision here or a payment extension there. Some call it scope creep. We are happy to do the favour as it seems harmless enough and what the heck, it keeps the customer happy. You bet it does, wouldn't you be happy getting more for less?

Before you know it the requests become more frequent and the favours larger. By that time it can be too late. The concessions you have made in the past have gone unnoticed and the customer now expects that as routine behaviour.

Be like the brave Oliver Twist - it is your turn to ask for more. More respect for the way you conduct business. More dollars for the additional value you bring every day.

Go the extra mile and do the favours, but make sure your customer knows what you are doing. Sometimes it is advisable to toot your own horn if it gets you the right kind of attention.

Be mindful and respect your time and your customers will too.

Good selling,

Richard

Thoughtful Thursdays - It's that time of year again

2011-12-15T08:00:00.001-05:00

As the calendar year draws to an end, there is no better time for many businesses to review performance versus plan for the previous 12 months and confirm objectives and strategies for the next 12 months. Enjoy your successes and set the plans for continued growth.

For owner/operated or micro businesses it means exchanging the tactical mindset of day to day operations to strategic thinking of a business owner. Using the information gained from the field during the past year and developing insights to create plans and objectives for the next.

Block off an adequate amount of time and do not let anything change that schedule. To avoid being distracted you may want to do this outside of your office, especially if you are home based. I believe it is also a good practice to ask peers for objective feedback.

Respect the exercise, each part of your business, marketing, operations and finance, are depending on you to set the course for sustainable growth.

Maintain sight of the vision you have for your business and ensure that your objectives, strategies and tactics are working in tandem to achieve that vision.

Good selling,
Richard

Thoughtful Thursdays - Shortening your sales cycle

2011-12-08T08:23:00.000-05:00

Today's thought is about shortening your sales cycle and finding the gold quicker. If one was to analyze their sales cycle and determine where the bulk of time is spent before closing, it is likely in the area of making connections with the right people. What if you could get to the right person faster?

Are you using all the resources at your disposal? Does your contact list include everyone you know, not just from business but personal as well?

Review and update your contact list. Make sure everyone you know is on the list. Before making contact with a prospect, mine your contact list and seek out the ones who might know someone at your prospect. You may be surprised with the results. We all know that once you have a referred contact name, the task becomes so much easier.

Give it a try.

Good selling,
Richard

Thoughtful Thursdays - mmm love that morning coffee...

2011-12-01T08:00:00.027-05:00

...and I have three suppliers to choose from. So why is it that I favour one over the other two?

Comparing the three options, lets look at the product offering first. Supplier number one has a good selection and features individual cup brewing. Supplier number also has a variety of coffees to choose from and supplier number three at this point has one choice. In the morning they are all busy, so the coffee is brewed often. In my case having a variety of blends to choose from is not a big advantage as I am not a fan of flavoured coffees. Freshness and flavour are important as I drink coffee straight up. There is no clear winner here.

What about price? They are all in the same range. The differences are not enough to cause me to make this the reason for choosing one over another.

Okay, is it convenience? They are easy to access. The favoured supplier is actually the furthest from my office.

Reviewing product, price and convenience the field is level.

If you said customer service, you would be correct. But what part of the service tips the scales? It is not the speed of being served or completing the transaction. Without fail it begins with a cheerful and sincere "Good morning" with a smile. Add to that the parting "Thank you" and finish with "Have a great day, see you tomorrow." If I happen to miss a day they ask where I was. They make me feel like they want to have and appreciate my business - every time I am there.

It is all about the experience of the transaction that makes me a regular at supplier number two.

Do all you can to make your customer's experience enjoyable and the added value will increase the likelihood of loyal repeat business.

Good selling,
Richard

Thoughtful Thursdays - Tipping the sales scale in your favour

2011-11-24T09:00:00.000-05:00

Last week I talked about about levelling an uneven playing field. Today's thoughts are on tipping the scales and creating the uneven field that works in your favour.

The list of examples from last week's post about levelling the the playing field is a good place to start when thinking about ways to secure and maintain your advantage. Most speak to value beyond what the products and/or services offer to your customer.

In today's competitive marketplace one is constantly challenged to find ways of bringing additional value to the customer. When discussing the subject with my clients I ask them to put themselves in the shoes of the customer and think about what characteristics they appreciate in a supplier - what would tip the scales in the favour of one supplier versus another?

Bringing new business to your customer
Knowing your customers' customer wants and needs
Being knowledgeable about the industry your customer participates in
Offering to help your customer in all facets of their business - sharing best practices

Taking off the selling hat and wearing the customer hat can be good exercise for identifying ways to tip the scales in your favour.

Good selling,
Richard

Thoughtful Thursdays - Feel like it is an uphill battle?

2011-11-17T08:00:00.010-05:00

If you have never been faced with an uneven playing field, you must be new to the sales profession. We face the situation every day, your competition works hard to create it and it is your job to level it and then tip it in your favour

This competitive situation can be caused by any number of reasons and today's thoughts are about ascertaining them. Only when you know what is causes can you begin to mitigate them. Trying to level the field without knowing what is making it uneven in the first place can have negative consequences for your business.

Here are a some examples of what can contribute an uneven field.

Customer service
Terms and conditions of sale
Comprehensive offering
Price
Availability of product
Guarantees
Warranties
Response time
Product quality
History
Reputation
Relationship

As a sales professional it is your task to assess the situation and develop the correct strategy to make the field level. The most common reaction when encountering and objection is to counter with a price concession. This can also be the most dangerous - not only to your business, but to the market you are participating in as well.

It is important to know what you are up against before choosing your tools. In my experience there are few objections that can not be overcome. It comes down to whether or not you are prepared to do what needs to be done. In come cases it is better to walk away and go on to the next opportunity. You are not going to win them all.

Whatever action you decide on, be sure to have all the information first. Talk to the righr people and ask questions that will get you the information you need to know.

Next week: Tipping the scales it your favour.

Good selling,
Richard

Lest we forget

2011-11-11T07:40:00.000-05:00

In Flanders fields the poppies blow

Between the crosses, row on row
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields.

Thoughtful Thursdays - Is knowing customer needs enough to make the sale?

2011-11-10T08:00:00.003-05:00

Every good sales person will tell you that one of the keys to success is to correctly identify the needs of the customer. They will go on further to say that the skill set required includes the ability to pose the right questions and to listen carefully to what the customer is telling you.

These are all characteristics of a good sales person. A great sales person will add one more skill and this is the subject of today's thought.

Is it enough to nail the needs and offer solutions to meet them? Can you do more to make it easier for your customer to choose your business as their supplier?

Do you know why your customers think they need what they say they need? You can gain great insight into the real benefits they will realize by having a clear understanding of the reasons these needs have been identified. Once you quantify the benefits, you will have a more compelling story to tell and make it easier for the customer to say "yes".

Taking the time to fully understand the needs and resulting benefits of meeting them can result in a shorter sales cycle.

Good selling,
Richard

Thoughtful Thursdays - Get it in writing

2011-11-03T08:46:00.000-04:00

Today's thought stems from working with business owners who are also new to business and one of the avoidable issues that arises with more regularity than one might think - getting paid on time

A business infrastructure detail that is often left on the back burner by small and micro business owners is Terms and Conditions of Sale. In the excitement of getting orders followed by operational demands required to fulfill those orders, the finance manger's hat is often left alone on the rack, and does not get dusted off until suppliers begin demanding payment and you find yourself having trouble collecting receivables.

It can be difficult even when all the documentation is in place, but without signed sales agreements or contracts the task of collecting what is owed can take months or even years.

Before you go through the list of convenient reasons for not using agreements or contracts such as:

We don't need a contract, I know them
I don't want to risk losing the customer with extra paper work
Legal fees to draw up documents are too high
A handshake is good enough for me
We understand each other
I trust them

Think about how much it might cost you if you do not have documentation in place. Is it worth the risk?

Good selling,
Richard

Thoughtful Thursdays - Stuck with entry level pricing?

2011-10-27T08:00:00.005-04:00

Many new business owners are so anxious to make sales they set aside sound business management practices and sacrifice price for revenue. In some cases the need for cash flow is a driver, in others it may be thought that the a price concession will be a strategically wise decision. Whatever the reason for the concession,eventually you want to quickly get prices up or the consequences may be less than desirable.

I was very pleased to hear recently that a client of mine successfully increased prices. They overcame the fear of losing the customer and proposed a plan to ramp up prices over a reasonable period of time and the proposal was accepted. If this sounds too good to be true, it may have been if they had not first planned their strategy objective and tactics for the increase.

First and foremost was the task of reviewing their operations processes and determining the true cost of delivering the products and services. As is the case with most micro businesses, the owner/operator is responsible for many of the process steps, What is important is to assign responsibility for each step from the business owner's point of view. The step may be an administrative function, research, contracted help or any number of job descriptions. Once the responsibility is assigned. cost out each step based on the going rate for each of those functions.

When it is all added up, a more accurate cost is determined. Applying the appropriate mark-up gets you to the new selling price.

When one is able back up the reasons for a price increase the easier it is to implement. Knowing your cost of operations is the first step.

The worst case is that you may lose the customer, but if it is not profitable, is it really a loss? The best case that the customer sees the value in dealing with with you, remains loyal and your business is profitable.

Don't fear the challenge of increasing prices when your costs go up, be energized and rise to it. Your business is depending on it to survive.

Good selling,

Richard

Thoughtful Thursdays - Social media and customer service

2011-10-20T08:00:00.005-04:00

Do you know what is being said about you online? I had an experience last week that I felt needed to be addressed and did not know exactly how to reach the right person - the who would care and be in a position to take action.

I have heard and read of several instances where people have been at their wits end when it comes to customer service only to be rewarded by using social media a the venue to express their dissatisfaction.

I am not sure of the numbers,but am inclined to believe that most large firms are tracking what is being said about their companies online. It makes good sense to to do it and better sense to have a team in place to address the complaints as they come up. We all know how fast news of a bad experience can travel, but do we really understand the sheer volume of people it can reach so quickly.

I had the good fortune to attend the home opening game of the Toronto Maple Leafs last week. In past seasons there was a team of ushers in place at each entrance to the arena seats. In many cases the teams had been in place for years and knew the regulars my face if not by name as well. Part of their function is to keep people from entering the arena area while play is going on and guiding them to their seats if they do not know where they are located. They would also know if people were in the incorrect seats and quickly rectify the situation.

For what ever reason, this particular evening, their did not seem to be anyone in charge of the entrance. There was an usher present, but the level of service offered was obviously lacking. It was only a matter if time before people were entering the seating area while play was going on and adding to the congestion, they did not know where they were going. The long and short of was that people had to stand while other were finding their seats and in on instance, seats were already occupied. The end result is that sight lines are blocked for unreasonable lengths of time, making for a less than enjoyable experience.

I decided to voice my disatisfaction on a social media venue using the appropriate has tags and wondered if anything wouldcome of it. Two days later I recevied an email asking for some clarificaiton about my experience.

Here is the end result:
"... The manager of event personnel will actually be sharing your case at our ushers’ pre-shift meeting on Saturday and it will be a teaching point for our entire team about maintaining a winning experience for our fans going forward..."

As a customer, I am pleased with the outcome. As a sales professional I am encouraged to know that responsive customer service remains important.

Social media is one way you might be able to access the people you need to, if you use the right approach.

Putting the show on the other foot, is also a way for your customers to access you.
Good selling
Richard

Thoughtful Thursdays - Simply put...

2011-10-13T08:00:00.002-04:00

Sometimes there is no reason to use different words to say what has been said before, because it just does not add value to the statement.

Today's thought is concise and to the point. Reading and reflecting on it may cause you to review on your sales approach.

"If you can't explain it simply, you don't understand it well enough."

Albert Einstein

Good selling,

Richard

Thoughtful Thursdays - The unhappy customer

2011-10-06T08:00:00.102-04:00

You have probably found yourself in the unfortunate position of being the unhappy customer from time to time. If the degree of dissatisfaction was high enough you probably asked your supplier to resolve the situation. Do you recall how you were taken care of? If you are still dealing with that business, the resolution must have been more than satisfactory.

If you are still purchasing from that same supplier, they are to be congratulated for retaining your business.

Thinking back to that situation, how did your supplier react? If you put the show on the other foot, would you be as successful resolving the situation when one of your customers is not happy with you?

Here are a few tips that may be helpful when you encounter an unhappy customer.

Listen to them and be interested in what they are saying.
Do not interrupt, let them say what is on there mind.
Be sure they are finished before you respond.
Be empathetic, recall how you felt when you were the unhappy customer.
Do not take a defensive position when responding.
Try to quantify their loss.
Understand their position, and ask how the situation might be rectified.
Worth repeating is to listen and not interrupt.

Do not fear the unhappy customer. View it as an opportunity to review your processes with the end result being better service for all your customers. Be sure they know that as a result of bringing the situation to light, all your customers will benefit.

The unhappy customer is not the end of the world and does not mean you will loose them. In fact, depending on the way you handle the situation it might solidify your relationship with them.

Good selling,
Richard

Thoughtful Thursdays - There is nothing like a happy customer, why are they so happy?

2011-09-28T08:00:00.001-04:00

Not many people that I know or talk to do not want their customers to be happy. Given the opportunity, happy customers will more than likely buy from you again and refer new business your way. There are numerous reasons to keep your customers happy.

Having said that, it seems to be difficult for some businesses to make the experience of buying from them enjoyable. While unavoidable things do happen and it is impossible to keep everyone happy, many poor buying experiences could have been prevented with some forethought.

Take yourself for example. Do you have a favourite restaurant you keep going back to? How about a mechanic or dealership you have been dealing with for years. Maybe it is a golf course, or retail store you frequent. I think everyone has their 'own' hair stylist. Make a list of the businesses or people you purchase from on a regular basis. Add to that list the reasons why you patronize them.

They treat me like they care
They are always smiling and pleasant
They are knowledgeable
I trust them
They listen and don't try to sell me something I do not want, they make recommendations based on my needs
They are not pushy
They are accommodate my schedule where possible
They make me feel comfortable
They make so convenient to say yes
I get a lot for my dollar
I like them

Now consider your day to day sales interactions with your customers and prospects. Have you forgotten or taken for granted any of the reasons that affect your buying decisions?

Good selling,

Richard

Thoughtful Thursdays - Stay the course

2011-09-22T08:00:00.007-04:00

Today's thought goes out to the entrepreneurs in the throws of launching their business ideas. A subject that often comes up in meetings with new business owners is the feeling of being overwhelmed and not being able to get everything on the to do list completed.

There are many good books on the subject of getting things done including the book by that same name by David Allen.

One of the keys to successfully tackling the to do list is scheduling and sticking to that schedule. Every time your schedule changes, there is a chance that some tasks will get moved out. Be mindful of the consequences when you do make changes and accept them. Life happens and delays are often unavoidable.

Something that works for me is to check my schedule every day before I do anything else. Confirming what has been already been planned helps prevent the addition of tasks when there is no time available. Another practice is to resist changing the schedule once it is in place, especially if you are in the middle of doing something that was planned.

These days you can spend a great deal of time processing email. When I receive an email I do one of three things with it.

Delete it because it does not concern me
Respond immediately
If if can wait or something has to be done before responding, schedule the time in my calendar for the necessary work.

Minimizing the number of messages in your inbox is a one way to help reduce the stressors that can contribute to the feeling of being overwhelmed.

Good selling,
Richard

Thoughtful Thursdays - Value selling, quantifying the benefits

2011-09-15T08:00:00.000-04:00

You have examined the features of your products/services and defined the benefits. The thought for today is to take the process one step further and quantify the benefits you have worked so hard to identify.

I have not yet run across a benefit that could not be quantified in dollars. Doing the arithmetic is another way to make it easier for your customer to say yes.

Does your product save time, increase productivity, reduce down time or cost less?

Being able to quantify the benefits requires research and is often a subject does not always come up in the first meeting. You will need to ask your customer questions to correctly convert the benefits to a realistic dollar value.

If your benefits relate to time saving, hourly costs X the time saved equals a dollar benefit.
Productivity could mean making more units per hour, thereby reducing costs
Productivity could also mean reducing time consuming activities, again time X costs of that time equals a dollar benefit
Downtime is expensive. If your product/service can eliminate down time, the dollar benefit is equal to the cost of down time X the down time eliminated

Take the time to do the research and calculate the dollars that your business will add to your customers bottom line. The sooner you can quantify the benefits, the sooner the sale will close.

Good selling,
Richard

Thoughtful Thursdays - Relevant information adds value

2011-09-08T13:05:00.000-04:00

You know that following up with your customers is important. Have you ever found yourself in the situation where you just do not know what to say beyond what you have already said and consequently avoided making the call?

You do not want to be a pest and reiterate what has already been stated and understood, but you do want to stay top of mind with your customer.

Maintaining contact without being a pest can be a challenge. One way to look at the task is to always be mindful of adding value when communicating. Relevant information is valuable and if you become a know source for reliable information it can work in your favour.

Communicate information your customer will be interested in. This could be industry news or information about their target markets. Do not assume they see everything that is published. One way to source this type of information is to set up a Google alerts that come into your mailbox. Social media is another way to keep your finger on the pulse of an industry. Follow credible tweeters, join and participate in Linkedin groups that have relevance to your business.

This kind of information is often appreciated and will help keep you top of mind with your customer.

Good selling,
Richard

Thoughtful Thiursdays - Back to basics

2011-09-01T08:00:00.001-04:00

Today's thought is a simple one, getting back to the basics of sales. Here are a few pointers you may find helpful.

Dress appropriately
Know what makes your product/service different
Prepare for every call
Arrive a few minutes early
Bring a great attitude
Know what you are going to say
Listen more than you speak
Thank your customer for their time
Never conclude your call without knowing when the next contact is going to take place
Complete your call report and analysis of the call when it is fresh in your mind - do it right after you leave the customer.
Follow up
Follow up
Follow up
Make your process routine

Good selling,
Richard

Thoughtful Thursdays - How's the bottom line?

2011-08-25T10:22:00.000-04:00

Over the years I have witnessed apparently successful businesses exit the market place. Many reasons are given, but in the end, if it was not a planned exit, it came down to insufficient cash resources to run the business.

Today's thought is about maintaining margins as costs continue to rise.

Continued non-response to increasing costs will put the profitability of your business at risk. Small business owners often absorb increases for fear of loosing their customers if they raise prices. If the market is unwilling to accept a price increase, then the business must find a way to reduce their costs.

A thorough examination of operations including mapping of all processes will provide a good indication of where improvements might be implemented, the result being in cost reduction. This should be done on an ongoing basis to keep costs under control. Owner operated businesses are often so busy managing day to day activities, this type of exercise pushed aside.

Do not use the excuse of "We might loose the customer if we raise our prices" to avoid taking the time to accurately nail down your costs, do your homework. Recall how hard you worked to get your customers. Reinforce the value of doing business with you and if a price increase is justified the chances of successfully implementing it will be greatly increased.

Reduced profit margins are every business owner's concern.

Good selling,

Richard

Thoughtful Thursdays - Learn from the people you buy from

2011-08-18T08:53:00.001-04:00

I would be willing to bet you have a list of product or service providers you prefer to do business with.

Maybe it is the favourite restaurant you frequent and no matter hwo many times you read the menu, you end up ordering "the usual". Your server may already know you and ask if you if want "the usual".

It could also the service station you have to drive a bit further to get to now, but you always go there when your car is in need of service.

How about the hair stylist you have followed from salon to salon over the years?

The list goes on...

Today, think about why you continue to take your business to these businesses and list the reasons. Review the list and ask yourself if your customers feel the same way about you.
You can learn a lot from the people you buy from.

Good selling,
Richard