Tag Archives: Success Consultant

Ralphie breaks into Richie’s office and learns 4 Pricing Secrets

One Christmas season, twin brothers Richie and Ralph each opened competing businesses selling (physically) exactly the same products and services.   Each of them spent the same money on advertising, attended the same networking events, and advertised in the same places.

But, in their first year in business, Richie made money while Ralph had growing cash flow issues.   So, over the following Christmas holiday, while Richie was with his family on a Disney Cruise; Ralph snuck into Richie’s store one night to see why this was the case.    Ralph shuffled through a lot of papers until he came upon a fairly thick binder called “Pricing Secrets to make more money than your twin brother in business.”  Besides being very perturbed, Ralph was curious and opened the book.  This is what he saw:

Secret #1: Never set prices purely based on costs

The customer does not really care what the costs of running my business are.  What my customer cares about is the VALUE that we provide to their lives.    If it costs $10, but our customer thinks the value is $1,000; then we will sell it for $900 and look like a hero.

That said, Secret 1a is that we must always understand our margins, gross and net:  where they are now, where they have been, and where they are going.  If we do not like dealing with “the numbers,” pay someone to do this for us.  Understanding our books can make the difference between THINKING we are making money; to KNOWING it.

Secret #2:  Since we CHOOSE what we sell, decide to sell only what improves the lifestyle of the customer enough for them to pay us a premium price

The companies that are able to command the highest margins understand not just the utility of their products; but also how their products improve the lives of their customers.     As a smart company, we realize that what we sell is OUR choice.    Everyone says you must “sell the sizzle, not the steak”; but this advice is useless if our product has no sizzle.

If our product IS seen as a commodity, and we find that we cannot make enough money in the business to sustain/improve our lifestyle,  we will sell something else.  If the new product costs more than our current customer can pay; then we will find new customers.  After all, we are not helping anyone if we go out of business because we sold low-priced products to poor-paying customers.

Secret #3:  The easiest way to improve the margin on our products is to increase the price above the “commodity-level” offered by our competitors,  add an additional value, AND also offer at least 2 premium options well above the price of our primary offering.

These MUST be done together.  If we just try to increase the price and add onto what we offer; the customer will see this as a tactic and buy a lower value product from Ralph.  But, by offering the two premium offerings; prospects will view us as a premium provider.  And, when they compare the revised offering to the higher level offering, two very good things can happen:

– They buy the premium offerings, and are glad that we offered this option;

– They buy the lower priced offering from us, getting more value for themselves while we get more margins and cash flow.

Secret #4:  Have a Documented Marketing and Sales Process to take prospects from never having heard of us to the purchase – and Execute it every day.

The reason we can price ourselves above Ralph’s shop across the street is because when customers walk into his shop, their salespeople say “Can I help you”; and people are always “just looking.”  When they come into my shop, I have a process to get the customer to discover what they want, why they want it, and then qualify themselves as a serious buyer.    Our process does not allow people to “browse”; it asks them to decide whether or not they want a purchase.  And, because we let them know that we are OK with “No,” they say “Yes” a lot more.

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There were several more Secrets, and Ralph decided that he might need to come back in a few days to read the rest of it.    But, for now, he knew what his next steps were; because he could no longer continue to keep funding his business while his brother Richie made big profits.

Why Pilot Pete and Entrepreneur Ed Don’t Make Enough Money

Pete had been an airline pilot for 20 years.

One day Pete was talking to his friend, Ed the Entrepreneur, and noticed that Ed’s business was doing pretty well.   Apparently, Ed had all of the things necessary to “hit it big”:

– A product customers loved, with great “word of mouth” advertising;

– Years of experience “in the industry”;

– An incredible work ethic;

– and a lot of people who really “liked” him.

In fact, Ed was SO busy working in and growing his business; that he never sat down and wrote a “Business Plan” or a developed “Strategy.”  As long as he kept working persistently, Ed told Pete, one day he would achieve everything he dreamed about.

Pete felt this made perfect sense.  After all, when you know what you are doing technically, and people are coming “on board”; if you stop and take the time to Plan, it will just slow down your momentum and cut down on the “freedom” that comes from being your own boss.

So, the day before Thanksgiving a couple of years ago, Pete and several of his pilot friends talked about this and decided that since they knew how to fly, their planes were full of fuel, and people were getting on board the airplanes; it would be a waste of time to file flight plans or listen to the Air Traffic Controllers.    After all, most had been flying for a LONG time; so their Plans were “in their heads.”  What could go wrong?

So they took off together…….

– 2 ran into each other before they left the runway – because they were going so fast that, by the time they saw each other, it was too late;

– 5 got lost and crashed into mountains that were higher than the clouds below the flight path of the planes;

– 7 had to make so many “course corrections” that the fuel they started with was not enough and they ended up crashing;

– 4 had mid-air collisions with other planes that seemed to “come out of nowhere”;

– 5 landed at the wrong airports;

– 2 DID make it to their correct destinations, but it took them twice as long as expected.

Pete was one that made it to the right airport, several hours late; and he was fired.  AND he lost his Pilot’s license; so now he’s a cashier at McDonald’s (pays less than a job as a commercial airline pilot).

What about you?  Are you so convinced in your own abilities, your “experience,” and current “busy-ness” that you don’t think that you need a Plan (or maybe you will get one when things “slow down”)? 

Just because you are moving fast, does not mean that you are going to be successful in the long run:

– The Planes that run into each other on the runway are those businesses that do not do their market research, and run into a competitor to their “unique” offering that they never knew existed;

– The Planes that hit the mountains are those businesses that believe that they have “made it,” but never plan far enough ahead to anticipate surprise obstacles like shifting markets, loss of a big customer, or changing customer requirements;

– The Planes that run out of fuel are the businesses who, because they lack a clear plan, run out of cash before they hit their “tipping point” (happens a LOT);

– The Planes that have mid-air collisions are the businesses who do not plan and forecast continuously and so never see new competitors until it is too late;

– The Planes that land at the wrong airports are those businesses who, while they eventually get “somewhere,” do not achieve what they had hoped for;

– The Planes that DO make it to the right airport are those businesses who eventually succeed, but after a LOT more pain, stress, and time than they should have needed.

Ignore Pete.  This is your ideal time RIGHT NOW to sit down and create a comprehensive plan, WITH accountability; so that your business will take off quickly,  fly with less stress, and land at your goals in the time frame that YOU want.

By the way, Ed’s not doing so well in his business because his “word of mouth” customers do not come frequently enough to support Ed and his family.

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– Roger Boneno, Roger@CoachRogerBoneno.com

Jim and Diane’s Trip to Chicago – Based on a True Story

Today I wanted to share a little story with you about a couple, Jim and Diane (based on a true story, so enjoy…).

One day, Jim and Diane decide to take a vacation.  They had both been working very hard, and would leave their comfortable house in the suburbs of Houston and visit Chicago.

So, one slightly misty morning, they packed up their new car and headed out.   They were excited, and knew that they could get there really fast if they took turns driving.  After all, the sooner they got to Chicago, the sooner they would be able to check into their hotel room.

They were going to LOVE Chicago.  They planned to stay at the Westin right on Michigan Avenue.   Across the street would be the “Magnificent Mile” of shops.  A quick elevated train ride would get them to the ballpark.  Fantastic food choices..the Navy Pier, the beautiful lakefront.  They had their whole visit scheduled perfectly.

So they backed out of the driveway and started driving.   Jim told Diane to get on the freeway, and she did.  They drove for a day.  Chicago, here we come!

They drove for another day.  They were getting closer..they just KNEW it.   They had a great car, and knew that Chicago would be fun!

But the third day passed, and Jim was getting perturbed.  So, he told Diane to drive faster.  And they drove for a fourth day.  Still, no Chicago.

Now it was Diane’s turn to tell Jim to drive faster.  And turn NORTH.  They stopped at a gas station, bought a compass, and turned North.

Day five….Day six…Day seven.  They now both wondered why, even though they were CRYSTAL CLEAR about their goal of going to Chicago, were driving a great car,  and were certain about what they would do once they got to Chicago; they never arrived there.

Finally, they looked at each other, and exclaimed, “We probably should have followed a map.”

Sound crazy?  Who would try to get anywhere that far away without a roadmap?

Well?  How many can honestly tell me that YOU have a CLEAR, step-by-step Plan to get from where you are NOW in your business to where you want to be?

The fact is: EVEN WITH A CLEAR GOAL, AND EVEN WITH GREAT PRODUCTS;  YOU STILL NEED A PLAN..A ROADMAP. 

Every day that you spend without one is time you will NOT spend enjoying your goals.  

It’s time, RIGHT NOW, for you to get that Map.  

This is my specialty:  helping you create that map.  It’s a crystal clear, what do you do today, next month, next year, to get to where you want to go. 

To enjoy your Goals….

To stop driving around aimlessly…

I have built these with billion $ and million $businesses, with start-ups, with businesses that have been around for 4 generations (even THEY need better roadmaps sometimes), and even with MLM’s.

Engage Now for a Very Special Year-end rate.  CLICK HERE  and reserve your spot!  As soon as my calendar fills up –  which may be today, and may be by Friday –  the year-end offer is over. 

PS.  It is OK for you to say “No” and keep driving around without a professional plan.  Just make sure that you DECIDED to do that; instead of letting it happen to you like it did to Jim & Diane..by default.

5 Financial Metrics Every Business Owner MUST Know and Pay Attention to (and Why)

It’s Halloween, so I wanted to pick what is a SCARY topic for many business owners: FINANCIALS.

Apparently, for most business owners (even solopreneurs), this is such a scary topic that they choose to ignore it.  The thinking goes that, as long as there is money in the bank after bills are paid, the business is doing well.  Leave it to the accountants.

Unfortunately, this is like saying that as long as you can still walk, you are “healthy.”  In reality, there may be growing problems that, unless you know how to look for them, will catch you by surprise.  After all, how many times have you heard someone mention a business closing and say, “I thought they were doing OK”?

Just like you need to pay attention to your blood pressure, cholesterol, glucose, and many other levels; it is essential that you as a business owner keep track of these:

1.  Revenue:  Current vs prior year, vs last 12 month average, vs. last 3 month average.    Revenue is, obviously, a measure of your businesses’ ability to get people to PAY for what you deliver.  That said, it is essential to understand what revenue is doing.

– Versus Prior Year:  How are you doing right now, versus the same time last year?  This is just a basic measure

– Versus Prior 3 Months:  This is particularly important in fast growing businesses.  So, if your average sales from June – August were $40,000, and September is $50,000; then you have the appearance of rapid growth.  That said, do the same analysis on last year (prior year September versus prior year June – August) to understand if the growth is just a seasonal “bump”

– Versus prior 12 months:  This helps you understand your current results versus what the average sales were over the last year.  Think of the prior 12 months as a “water level” for your business.  Is the current month’s revenue above, at, or below that “water level”

Once you know these numbers, do the analysis.   What was the reason for the change this month vs. the comparison periods?  Any new Marketing initiatives?  Different team members?  New products?  Product mix changes?  New Team members or lost team members?  New customer service initiatives?

2.  Transactions:  Do all of the same analysis that you did on Revenue.  If you are building your business well, then you should see steady increases in transaction counts.  Even more telling is if you can define whether your “mix” of transactions is coming from new customers, repeat customers on a regular buying cycle, or maybe repeat customers attracted because of a new marketing campaign or improvements in service.

3. Revenue per Customer:  What is each customer giving you for each purchase?  If this changes, is it because your prices went up; or are people buying different products?  Perhaps you trained your team on “trade-up” strategies, and they worked.

4.  Margins:  You must know your Margins, both:

Gross Margin:  For ever dollar you sell, there is a DIRECT cost of the product.  For example, a restaurant sells a meal for $10, but its cost of food, paper goods, garnishes, etc is $30; while it’s cost of labor directly attributable to the sale, both the cook and servers, is 20%: so, your Gross margin is 50% (100% less 30% less 20%)

Net margin:  Besides the costs directly attributable to the individual sale, you have your fixed costs like rent, management salaries, utilities, repairs and maintenance, training, office supplies, etc..etc…  Net Margin is what is left over after ALL costs have been subtracted from revenue.

WATCH CAREFULLLY the movement of Gross Margin and Net Margin, both  on an individual basis as well as compared to each other.  This analysis is a great way to “catch” waste and potential issues in your expenses that often are never looked at until they become huge problems

5.  Net Working Capital.  The “official” definition is current assets minus current liabilities.  What I tell my clients is to pay attention to this number as “how much money could I spend RIGHT NOW, if all of the bills due in 30 days had to be paid RIGHT NOW.”  I know it’s not the formal definition that the Accounting Board would approve; but it lets you have a real sense of what you have.

IF this number is negative, you had better know exactly why this is the case and have a specific path to make it positive soon (not “hope,” but a specific plan).  For example, you may invest in a new marketing campaign today that makes your Net Working Capital fall into the negative; but the expected return from the campaign will make your business a profit to make Net Working Capital positive in 60 days.

The fact is, TRULY successful businesspeople “know their numbers” because those are indicators of the health of the business.  Thinking that these are just “for the accountants” is a sure way for you to make poor decisions about the future of your business.

I’m going to be blunt and loud:  STOP WORKING SO DOGGONE HARD IN YOUR BUSINESS AND START UNDERSTANDING WHAT’S HAPPENING TO IT.  Understand and analyze your numbers, or you WILL struggle more than you have to.  If your sales are up, know why.  Maybe there is something you should be doing more of.  If sales are down, don’t throw “the economy” excuse at it; know why.  Is it seasonal?  Did your product mix change?  Is your team not providing great service.  etc., etc, etc.  Knowing your numbers will catch a brushfire before it burns down the forest.

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If you do not really understand how to do this, then make an investment in your future and invest in a coach who gets it (not just a “marketing coach”).   Get out of the “scarcity” mindset (I do not have the money to invest now..maybe later), and into an “abundance” and belief mindset (I have potential that can be maximized and I believe in myself and my business enough to start maximizing it now).  Every day you spend in scarcity just guarantees more scarcity.

Why a Short-Term View and poor Math Skills are Bad for your Business

OK, I might have frightened many of you.

Math?

Well, the good news is that we’re not going to do any regressions or differential equations today.  So…breathe slowly into the bag; and let’s talk.  I am going to do the math FOR you.

Many of you own a business that is very stressful for you.  You constantly worry about cash flow.  You feel pain because your team does not seem to care about anything but their paychecks.  And, you sometimes wish that you could wave a magic wand, so people could “Get it” about the value you provide. You might even have to discount your prices, which drives you crazy (after all, you are worth more, aren’t you?).

To make matters worse:  you keep thinking things will “get better”; but, six months go by, and it’s just as tight and stressful as it was six months ago.  One year passes, and you wonder why things seem to be just as bad, or worse, than they were at the same time last year.

So, let’s do a little math (I’ll walk you through it 🙂 ).

  1. What if you invested $15,000 over six months to learn some proven tactics to get new customers and build a more motivated team?  Or, you invested that $15,000 to train 3 or 4 of your managers with a Management Training program; so they could  close some of their skill gaps?
  2. What if, based on extensive data, that investment were proven to get a 5-1 return (so, exchange $15,000 for $75,000 in one year)?  BUT, to be conservative, you won’t believe anything more than a 2.5-1 return (so, you invest $15,000 and get $37,500 back in 6 months – Net profit is $37,500 – $15,000:  $22,500).
  3. Then, you were able to take that $22,500 and grow it just 3% per year for 10 years.

Over 10 years, with a conservative view, your $15,000 investment would be worth $257,937. 

If you took the full 5:1 return, and grew it at 5%/year; you would have $15,000 become $754,674That’s a quarter of a million dollars extra in your pocket, for a $15,000 investment.

This is why the short-term view of fearfully holding onto money limits the greatness of so many business owners.  The simple math is that, holding onto the $15,000, with no change in how you do things in your business, will just result in more of the same stress and a return of $0, won’t it?

The fact is, whether you are talking about investing in a coach/consultant or a management training program; your long-term benefits are huge.   Here is a personal case study:  I invested in my own coach even when I could not afford one; because I realized the value of having someone to get me to think outside my personal experiences and make decisions even when I was not sure of the potential results.   It’s why, when I owned a business coaching franchise, my business was 3 times as big as the average coach in that system (which made me the top Franchisee).       All franchisees had the same “system,” but my coach made me prospect when I did not want to; he gave me strategies that I had not considered; he helped me focus when I was looking at “shiny objects”; and he even helped me realize why a strategy that HAD been working suddenly lost effectiveness.   Even a coach needs a coach.

There is a reason that an elite athlete invests in coaches, even though he has an enormous amount of talent.  The one-tenth of a second that his coach helps him cut from his 40-yard dash time could be worth millions of dollars.

For a business owner, there might be one thing you or your managers are not doing that, with the right training, you could discover can make you millions of dollars, or remove 90% of the stress you experience every day.

Am I the right coach/consultant for you?  Most likely not:  unless you are in the restaurant or hospitality business (private coaching/consulting), or have a management team helping run your business (our classroom-based training program).   But, I promise you that there IS someone out there who is a great fit for you.   And, doing the math, thinking that you are saving money by not making the investment in closing your skill gaps is absolutely bad for your business.

Take Action Today, and start your path to investing in your future success.

I am connected to a lot of coaches/consultants; so feel free to connect with me on Facebook, Twitter, or Linkedin; read what they write and post, then contact those who might be the best fit for you.

5 Questions You MUST Answer about Your Social Media (or you will hurt your business)

OK, since some of you are reading this as a result of Social Media sites; obviously, I believe there is value in Social Media. 

But, for many business owners, Social Media is a direct cause of their struggles to make money.    The biggest reason for this is what I would call “Intellectually Lazy Marketing.”   “Intellectually Lazy Marketing” occurs when you have no defined “ideal customer,” no targeted message, no integrated online/offline marketing Strategy; but you just post onto Social Media in the hope that people will find you interesting enough to try you.  Sadly, companies who are lazy marketers become companies with falling sales who complain that “the economy” is bad.

Can you answer these 5 questions:

1.  Of your Facebook Page Fans, Twitter Followers, LinkedIn Connections, etc…; how many of them are your Ideal Customers?  How many are people who would never buy from you?

2.  What is your Strategy to increase the number of Ideal Customers who “Like” your page and “Follow” you on Twitter?  Given that many of you spend precious time posting and tweeting (or pay someone else to do so); how many Ideal Customers do you expect to gain from that work in the next week? next month?     After all, you should NEVER spend time or money on marketing without a specific “Success Criteria,”  should you?   

3.  Exactly how many Paying Customers do you expect to get from your Social Media in the next week? month? year?   Think about it.   Have you ever said that the Yellow Pages “don’t work because people do not use them anymore,” but you spend time and money on Social Media without a clear idea if you are getting any quantifiable benefit?  And, if you are saying it’s just about “awareness,”  STOP.   That’s just “Hope”; and we all know that Hope is not a Strategy.

4.  How do your updates speak directly to your target market that: grabs their attention, makes them interested, creates desire, and stirs them to Action?  Sorry, but posting a picture of your Quail Egg Pizza or Line of Desserts do not count.  After all, you are just one of thousands of people trying to get attention.   Consider if I told you that the best way to sell your product would be to drive 30 miles from your restaurant, stand in the middle of a busy street with a big picture, and yell “Desserts!  Look at our Desserts!”  Wouldn’t you think I was crazy, given that people will be “whizzing by” and, even if they hear you, will be unlikely to stop and find out more?  And, for the few who stop, you now have the extra hurdle of making them choose you over all their other choices?  And, then they need to work to drive  across town to try you out?

But, that is what so many of you are doing on Social Media; yelling “Buy my product! Buy my product!” to a generic audience; as you expect THEM to work to discover why they should be your customer.    How much more effective would you be if you had a focused message targeted to your ideal customers?  (this DOES assume you have done the work to identify your ideal customer and the unique message that they will listen to).. 

5.   Are you ignoring other, potentially FAR more effective marketing tactics, because you think Social Media is “cheap”?  FIrst of all, unless you have figured out a way to Stop Time; Social Media is NOT FREE.  Perhaps the time you spend on posting or taking pictures SHOULD be spent on creating motivating compensation plans for your team;  better customer service procedures; or more efficient processes for product delivery.  Secondly, as months go by with an ineffective Social Media system; are you creating a risk that your cash flow will eventually be too low for you to afford what DOES work?   Or, you get to the point where you have no money to invest in a consultant/coach who could have made a massive difference for your business.   Unfortunately, all you can do then is struggle and hope.

Have these questioned changed your view of your Social Media activity?  What is YOUR Strategy for answering these questions?  Please comment below and share this.

Do This One Thing and You WILL Get More Sales Next Month

After reading hundreds of books.

Getting an MBA in Marketing

Working on a lot of Marketing Campaigns that have made millions and millions of dollars for both small and large companies.

After all of that, I realize that there is just ONE THING that you need to do to get more sales, whether you sell Real Estate or own a Restaurant.

Here it is:     SEE MORE PEOPLE

What, you say?  That’s so obvious, you say?

Then why don’t you have more sales?  And you cannot tell me it is because of the economy or that people “just aren’t buying.”  I would agree with you 100% if you were the only person in the world who had a company that sells your product.

But you are not, are you?

So here are 4 things you must do to SEE MORE PEOPLE

1.  Stop Advertising and start Marketing.  

What’s the difference?

– Advertising is the sporadic promotions that you throw out there hoping to catch anyone who might want your product.

– Marketing is having a plan to address a specific targeted market in the right place, with the right promotion, the right price; with time-based sales & profit objectives and a process for analysis and adjustment, if necessary.

Having a coordinated and targeted PLAN will absolutely help you SEE MORE PEOPLE

2.  Let your prospects speak for themselves.

How many salespeople and business owners consider a prospect and, instead of actually calling or approaching, think of all the reasons the prospect might say “No”?  So, they talk themselves out of making the actual approach.    Perhaps you even convince yourself that following up when they have not called you back is being “pushy.”

Or, you worry about “bothering” someone, so you give yourself the excuse that you need to get an introduction.  Meanwhile, the prospect uses another service provider, goes to another restaurant for their catering order, or just misses out on the benefits you could provide.

Do yourself a huge favor, and let the prospect tell you “no” if the answer is “no.”  But, you MAY find some of them will tell you “yes,” and you will SEE MORE PEOPLE.

3.  Give yourself annual, monthly, weekly, and daily goals IN WRITING.  Be specific not only about the numbers; but also about what it will MEAN to you when you accomplish those goals.

Everyone knows this, you say?  But how many people reading this are actually doing it?  Most are just running as fast as they can to get “more customers.”  The problem here is that, without defining how many is “More,” you will never get there.

Consider this:  If one day I tell you to run up a hill, you might run pretty fast.  If the next day I say that, if you get up the hill in 2/3 of yesterday’s time you and your family get to live for free in the mansion at the top and you can SEE the mansion; most of you will find it in you to run a lot faster today than yesterday.

Your mind is a great resource; but you waste it if you do not tell it specifically what you want it to help you do and why you want it to do it for you.  I can guarantee you that, if you have a specific goal tied to an emotional benefit, you will find a way to SEE MORE PEOPLE!

4.  Schedule your time and determine if you can hold yourself to it, or if you must get someone else to hold you to it. 

Some people are very good about being efficient with their time.  They do not waste the day watching “funny cat videos” on YouTube, or reading about their favorite sports team or actors, or reposting “motivational” quotes on Facebook for hours on end.  On the other hand, many people get distracted.  Yes, every morning they wake up with the DESIRE to be focused; but every night they realize how the day got away from them.

If you are one to get distracted; get your ego out of the way and have someone there to hold you accountable.  There is no shame in that.  It is much better to have the temporary annoyance of someone “calling you out” if you do not follow your plan; than the long-term struggle of not having customers.

Whether you can do it for yourself, or you need someone else to do it for you; become accountable so that you will SEE MORE PEOPLE.

You get my point: if you change nothing else in your business this month vs. last month;  you will sell more if you SEE MORE PEOPLE.  It’s as simple as that.

If you have any other ideas or suggestions; or just want to provide a little feedback, post your comment below.

4 Ways that you Block your Potential Customers from Buying

“Sales cures all ills.”

Most people have heard that saying before.   Now, it’s not ALWAYS true (since I have seen a lot of business owners who do not understand that they are selling at a loss  – many of my Restaurant clients sell a lot of things at a loss, until I help them see why their profit is almost zero).

That said, if you have SOME margin control, increasing Sales DOES help quite a bit, wouldn’t you agree?

So, here’s the strange part:  many business owners – Restaurants, retail, even B2B – put up giant obstacles to getting sales from eager prospects.

What are the Top 4 ways you Block your Customers from Buying?

1.  You make it hard for your best prospects to hear or see you:  When I was working on marketing campaigns for Joe’s Crab Shack; one time we were doing a coupon as part of a “Welcome to our Email Club” campaign.  When Tilman Fertitta, our CEO, was asked about the coupon, he responded with “Do you think I use coupons?”

Somewhat of a humorous note; but an excellent point for you:  unless you have actually defined SPECIFICALLY who your best prospects are, you will not be able to create marketing that actually talks directly to those prospects.   Your prospect WANTS your product; NEEDS your product; will PAY for your product; but you create such generic messages that they never can hear you above the 10,000 other messages they get every day.  Your message of how you “have the best product, service and prices” makes you just another black and white penguin on an icecap filled with penguins.

2.  You get your prospect excited, then Ignore him.   Many of you have prospects out there who have heard of you and actually like what you have to offer.  They are ready to buy,  But, you do not answer the phone when they call to find out your hours.  Or, they call and leave a message, but no one ever calls them back.  Or, worse, they call and you transfer them to another line that never answers.

Maybe you have called them when they are busy themselves; but you forget to call them back, so they buy your product from someone else.

Yes, you are busy.  Maybe your restaurant is having a busy lunch, or you have back-to-back sales appointments; but, without a strong SYSTEM to ensure prospect contacts get answered. your customer will feel ignored.  And, just to be clear, ignored prospects rarely buy.

3.   You speak German when your prospect speaks French – I am not really talking about languages in the literal sense.  I AM talking about all of the advertising out there that is based on the business owner’s perspective, instead of the customer’s perspective.  Your lunch menu says that you have $8 lunches; but your customer really wants 30 minute lunches.  Or, you talk about the beauty of your landscaping designs, when your customer wants to know if what you plant will last more than 6 months.

Do some research, talk to current customers as well as people who do not buy from you; and find out the language they want to hear.  You may be surprised to find out that just a few tweaks in HOW you talk to potential customers can have a massive impact on how MUCH they buy from you.

4.  You “bring him the check before he sees the Dessert Menu” – One of my rules when we go to a restaurant is that, if the server brings me the check before I see the Dessert Tray or Menu, we do not order dessert at the restaurant.  That’s a lost sale for the restaurant, and lower tip for the server.

But, even B2B businesses do this: you find something your customer wants and you are so excited to get a sale; that you do not ask follow-up questions to see if there are more ways for you to serve them.  In your mind, you are yelling “Hooray,” while your customer is thinking, “I sure wish they would do this also, because I wanted it.”  You DO have that extra product or service, but the prospects don’t find out until they have bought that from someone else (when it’s too late for you).

To wrap up, how many of you have said or thought that you wished you had more sales?   Before you just throw more money at marketing, or offer more discounts; see what you might be doing to block the sales that are already waiting to come to you.  You may find that just a few simple adjustments can make a massive difference in your sales growth!

I really would like your feedback on this.  Is there anything else that you have found “blocking” customers from buying from you?  

Comment below, or email me at Roger@CoachRogerBoneno.com.

Marketing Lessons from a Tried and True Hollywood Formula

How many of you have seen the Hollywood love story formula (even if it was just because your girlfriend or wife wanted to watch it):

       Boy feels lonely

       Boy meets girl of his dreams, but girl already has a “boyfriend”

       Boy starts “courting” girl by being her “friend”

       Girl starts to confide in boy, who is a great listener

       By being true to himself, Boy’s “authenticity”starts to attract girl

       Girl realizes her “boyfriend” is not so great after all (or a jerk)

       Girl falls in love with her “friend.”

Interestingly enough, this formula is filled with lessons for you as a business owner.

Lesson #1: There are PLENTY of great customers out there to grow your business, even in a bad economy. When I talk to Restaurant Owners, for example, who say that the “economy”has hurt their businesses; what they are REALLY saying is that their customers have just made other choices.  Maybe the customer decided to stay home; or perhaps they just decided to go elsewhere.  You may need to change how you look; but your first job is to find out where your customers are.

Lesson #2:  If the boy had just walked up to the girl and said, “I’m a great guy.  Do you want to be my boyfriend?” he would most likely have gotten an awkward silence and then,“I already have a boyfriend.”  At that point, his chances of winning her over are tiny. But that’s what many businesses try every day.  They put ads out there that say (for example), “I have great food.  Come and be my customer.”  And your customer thinks, “I already have a restaurant I like to go to.”

Instead of just telling everyone that you are great; learn to listen to what customers are saying. You have to be careful here, because it is the subtext that is most important.  For example, your customer says they will try you out if you give them a “deal,” so you run big discount coupons; but they really just want to know WHY they should try you and how they could justify paying the price you charge.    When you run “deals,” you basically tell your customer that your product was not worth what you were charging; so they were right all along to go elsewhere when they are willing to pay “full price.”  This is why the data shows how so few “deal”customers ever become loyal “full price” customers (no matter how hard you want to believe that you can “convert” them; the fact is, once you set a “reference price,”customers fixate upon it).

Lesson #3: The girl who dates the boy because of his “social status” or other superficial reason, is never really happy; instead, she is just trying to avoid the perceived “pain” of being unpopular. And, even though she really would be much happier with someone else (like her “friend”), she won’t easily “break-up”with the boyfriend she is with now.    In the same way, many of your potential customers are absolutely “settling” for your competitors:  they are not really “thrilled” with their current choices; but they would rather stay there than risk changing because they fear the unknown experience.  So, your job is to help them understand why, if they come to you, they will not experience what they fear. 

Offer them a guarantee. Show them testimonials.  Create an active program to create “Raving Fans” who praise you online.  (This is why I include both Marketing and Operations improvement in all of my packages; because you do not want to bring in MORE people who will give you poor online reviews.)

Lesson #4:  It may not happen overnight; but maintain focus on what the CUSTOMER needs and they WILL learn to “love you.”  Listen to your customers, provide an outstanding product, great service, and a differentiated reason to come back; and your profits will grow exponentially.
Let me know your thoughts by adding a comment below.

4 Reasons to Ask Before Listening to “Joe”

My oldest child is a 15-year-old boy who is about to enter 10th grade.  Of course, his school assigned him 2 books for “Summer Reading”:  Inherit the Wind & 1984.  He has read Inherit the Wind; however, even though school starts this Wednesday (yes, THAT early), he has not yet finished 1984.

When I suggested to him today that he needs to finish this book now, his comment to me was that, “Joe (not his real name) says that his Honors English teacher last year did not even quiz them on the Summer Reading” (my son is also in Honors English).  I was talking to a friend of mine this morning about this (his son is the same age as mine), and he suggested that this would be a great BLOG subject.   And he is absolutely right – because too many business owners are listening to “Joe.”  And “Joe’s” advice is often very risky.

For a business owner, “Joe” is that brother, cousin, nephew, parent, fortune-teller, or anyone else who gives you opinions about how to run your business.  Here are 4 questions to ask yourself before following “Joe’s” advice.

– Does the advice apply to what worked in the past, but may not be applicable NOW?  Just as my son’s friend was talking about what happened last year, to him individually, one time; many times the advice others give you is based on what happened to them one time, individually.   So, it might apply to your situation, but it most likely will not.

Does the advice come from an individual’s opinion, or is it based on FACTS?  “Joe” is making an assumption, but most likely has not talked to others about THEIR experiences.  Find out if the person can give you not just what they did, but how it specifically helped them.   Get numbers, percentages, and names of those involved.   Also, have others followed the same path, and what where their results?

What are the consequences to your “advisor” if the advice is wrong?  If my son decides not to read the book, and the teacher gives him a test this week, Joe does not lose points.  How many people are willing to give you advice, but will not be impacted if the advice is bad.  This is one reason why I have incorporated performance based investments in all of my programs: if what we do works, then we BOTH win.

Are you taking advice because it is good for you, or because it is self-serving?  Obviously, my son is not thrilled to be reading a book that he considers “boring.”  So, the advice to not read works for him; but only in the short run.   Is this you?  Are you spending time doing activities that you know are not highly profitable, but ARE easy?  Are you avoiding making an investment that requires a little risk, but has a big potential reward (like hiring a coach, or having a professionally designed website); because you have a fear of spending the money?

The reality is: we are constantly surrounded by people who want to give us great “advice.”   However, as I have heard it said, be sure you are getting COUNSEL and not OPINIONS.  So, before you listen to all of those people who want to tell you how to run your business, just ask yourself these few simple questions.

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Schedule a free 15 minute call with me today – Marketing Guru, Financial Wizard, and Team Motivation Expert – and we’ll talk about how to build a strong Brand targeting your Ideal Customers.     https://my.timedriver.com/191CR   We work together based on a performance program, so you your investment is based on RESULTS.