-
-
As a business owner, you know what it’s like to lie awake at 2 a.m. Maybe it has happened when you are excited and full of new ideas for your business. More often, it’s because you are worried about issues you will face the next day. Sometimes, it’s because you just woke up with the solution to a problem. I’ve experienced all those emotions about my businesses over the years. Awake at 2 o’clock? is where I share them with you, and hopefully help with answers that will let you sleep.
John F. Dini, CExP, CEPA
-
Small business owners are the Hunters of the 21st century. We are 3% of the US population, and yet we create over half of all American jobs. As Hunters, we may not be inclined to manage by the numbers or stick to systems. Are you a Hunter or a Farmer?
-
-
How prepared are you to exit your company?
The Assessment breaks down the four major categories of exit readiness; Finance, Planning, Operations and Revenue/Profit.
Tag Archives: sales
Never Fire a Salesperson
The majority of business owners prefer linking pay to employee performance. The sales role in most businesses is the easiest and most obvious place to begin. Yet owners struggle with compensating salespeople in a manner that is affordable while still driving sustained performance. Building … Continue reading
Leave a Reply
Structural Tension: Is It Good or Bad for Your Business?
Logically, no one would enter into a business relationship where anything that is better for one party is worse for the other. Such a zero-sum arrangement would quickly grow tiresome. Either one party is consistently losing in every transaction, or … Continue reading
Leave a Reply
Invisible Discounts
In the words of the late, great Father Guido Sarducci of Saturday Night Live fame; “I canna teach you everything you need to know about business inna fiva minutes. You buya something, and thena you sell it for more.” A … Continue reading
3 Responses to Invisible Discounts
Leave a Reply
Marketing for Trust
Why are car dealer commercials so crappy? I’m not talking about the manufacturers’ ads. Those cost millions and have big-name professional spokespeople. The regional marketing association ads aren’t quite as flashy, but Ford Truck Month or End of Year sales for the … Continue reading
3 Responses to Marketing for Trust
-
There may be merit to what you claim as to earning trust by doing what everyone else does. But I believe you might also be passed over….similar to a billboard that is there everyday but becomes so much a part of the landscape it isn’t noticed. Being different can at least get you noticed…then it is up to you and your message to earn trust.
-
All true, but this is mediocrity. Maybe there is another way as video has become so much more accessible. https://www.youtube.com/watch?v=ZUG9qYTJMsI
-
The goal of marketing is to establishing top of mind awareness- the kind of awareness where the target audience thinks of your brand before they open their browser. So if the target audience cannot tell the chaff from the wheat because everything looks and feels the same, the marketer is placing the fate of his/her marketing budget on search engine results. Or playing a huge timing game.
The real reason automotive dealerships (as only one of many examples) fall into the same tired marketing rut is because it’s human nature to stick with what you’ve always done. They continually rely on marketing agencies with a specialty in their space, instead of seeking out an agency with a fresh point of view; it’s comfortable, and seemingly low risk because, well, they are rich and it’s gotten them to this point, hasn’t it?
Besides pioneering something new is risky… and change is scary. (Insert Einstein’s most famous quite here).
Leave a Reply
Regulation: Between a Rock and a Hard Place
True story: A fortune 500 company implements a new wellness plan for employees. It’s designed by consultants who use the Affordable Care Act (Obamacare) as a template. Workers are incentivized to get regular exercise, quit smoking and lose weight; with … Continue reading
One Response to Regulation: Between a Rock and a Hard Place
-
John
Welcome back – and as usual another great article – batting 1000
Frank
Good article, and I agree completely.
A discount is an incredibly expensive give away as it comes straight out of your bottom line. Every penny is additional profit you could be making, and to give away anything you don’t need simply amounts to charity. This is even more damaging when it is what I call a Post-Sale Discount – one you voluntarily offer after the customer has already agreed to buy.
I saw this in all its destructive glory with a client of mine who owned an upscale optical store. He was always complaining about the pressure on his margins and never made the kind of profits he should. We analyzed his problem up and down, but it wasn’t until I bought a pair of glasses from him that I saw the root cause of the problem.
I picked out what I wanted from his inventory and knew the price for both the frames and the lenses before I was measured up. I was happy with the price, but when the time came to pay, he suddenly took 10% off . This took place without any prompting on my part, and I probed into his sales process in a way that I hadn’t thought about before.
It wasn’t just because of our relationship, and it turned out that he did this on virtually every sale. He couldn’t really explain why he did it and while he root causes might lie in a general lack of business confidence, it had simply become a habit that had been integrated into his sales process. His other salespeople followed his lead and the practice was costing him substantial lost profits.
In my case, the sale was $1,000. His gross margin of about 50%, which after overhead probably would have generated a net profit of about 10%. After the discount, his gross margin fell to 40% but his net profit on the transaction after fixed overhead actually disappears, making the transaction a break-even!
I find this interesting. I am finally at a point where I can honestly give a quote, but I always need time to figure all areas for the final proposal and then I make sure I record all parts of the quote so I don’t end up giving added materials for free. I am a small business, so with experience and time, I will probably have to learn the hard way at times.
Thanks for the blogs!
Cathy
I agree and I am going to meet with my Mentor today to make some adjustments, I know I am giving discounts and for a small business , I cannot do that. Thanks, great reply.