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Listen to your customers when making proposals
What is your plan when speaking with a client about a sale? The less successful salesman has no plan on listening to the client and is only motivated the sell the most expensive item or service so that the salesman can make the largest commission. The more successful salesman has a number of options to discuss with the client already prepared but is more focused on listening to the customer to see what he or she wants/needs.
Here is a good example. An IT vendor is meeting with a client who has been using an ancient server that is probably worthless at this point. While the network is slow, the job gets done. That face alone communicates two things: the client does not have extensive IT needs and the client does not want to invest in an expensive IT products and services. However, if the vendor didn’t pick up on that, its hard to misunderstand the client when he specifically says that the store’s IT needs are basic and the budget is tight.
So the IT vendor listened to that and came up with a budget friendly solution right? Wrong! The IT vendor submitted a proposal that included top of the line products that was not only expensive but was way more advanced that the store would ever hope to need. As a result, the reputation of the IT vendor suffered and the sale may be lost.
The other problem with the IT vendor’s proposal is that they did not include any options for the store. They were set on selling only one configuration. A more powerful proposal would have included three options with three different price levels. Instead of just sending in the proposal, it should have been explained to the store in person or, if there is no other choice, but phone. The vendor should say here are your options and based upon what you indicated and my analysis if your needs, I recommend going with option 2 because…
Now, the store feels like they have a partner with the vendor who is working for them and not just trying to score a big sale. A relationship is started or strengthened and the store will look to the vendor for advice on other products in the future as the vendor is now viewed as a trusted source.
I’m sure you’ve been sold before and I’m sure you hate it. So, why would you think that everyone else will be ok if you just sell them. Next time, try listening and then when you make your pitch, highlight the fact that you listened and that your recommendation is based upon their own words.
Links
Here are some links to my other websites:
http://www.princetondivorceattorney.com
http://www.newbrunswickdivorceattorney.com
http://www.tomsriverattorney.net
Blogs:
You can also check out these sites:
http://njgunpermitattorney.com
http://whitecollarcrimenews.com
http://njchildsupportattorney.com
What value does your accountant provide?
Without even thinking about it, you should be able to give me several reasons why your account is great. If you have to think about it, you may have some problems. Everyone that you work with from employees, to clients to vendors and other service professional should provide value to you. In other words, surround yourself with great people if you want to really succeed at everything you do. However, I know some people that, while successful, have difficulty getting to the next level because they accept mediocrity from those they work with.
My friend has a horrible accountant. This accountant crunches the numbers, process the necessary paperwork and spit out a few hard to read reports once every quarter. You might even excuse this lack of service if the person I am referencing ran a very small business and paid next to nothing for this service. However, the person I know has sales that are over $1 million and pays out the nose for this accountant. Why? Because he has forever and probably doesn’t think to expect anything better.
As I am never one to accept this level of service, I sought out three top accountants from around the country to uncover the ways they provide value to their clients.
1. Personalized service
Paul Brush, former Mayor of Toms River, NJ and sole practitioner specializes in personalized service for his clients. According to Paul, he finds this to be quite valuable to his clients who don’t feel they are getting such service from the larger accounting firms. In fact, he prefers to meet with clients at their site because it is important for him to understand their business. Paul makes sure that his clients know they can easily contact him via email, phone or fax and that he will respond quickly. He offers accounting, payroll and tax services and if he can’t help them, he’ll refer them to someone I trust. Since they already trust him due to the personal service he provides, the referal he provides is made more valuable. According to Paul, his clients want that personal touch and he provides it. Is your account providing you with personal service?
For more information on Paul Brush, visit http://www.pcbcpa.com/
2. Communication
As I said earlier, my friend’s account provides data without any explanation or advice. Couldn’t a computer do that for less money? In order to understand this data and how to apply it to your business, your accountant should communicate with you. Dee Parsons, who specializes in working with small business owners, strives to help clients decrease taxes, increase profits, and manage cash flow. Dee’s philosophy is that the language of business is accounting and that his role is to translate that language to the business owner. This allows the business owner make decisions based upon wisdom rather than on data, i.e. how much money is in the bank. Dee meets with the business owner, at least once a month, to learn from the numbers and gain direction for future decisions. Dee has found that the success of a businesses he works with is accentuated because he not only frequently evaluates compares the data to the business owner, but he communicates it in a language that makes sense.
For more information on Dee Parsons, check out http://www.nerd-rific.com
3. A trusted resource
Marilea Campomizzi, Senior Staff Accountant at Skoda Minotti, believes that a good public accounting firm or an individual CPA should be a resource for all of their clients needs. Her firm adds value to their clients by being able to answer any questions they have or being able to connect them to someone who can by drawing upon the resources of the entire firm. If she cannot personally answer all of a client’s tax questions because she mainly does accounting and auditing work, she can rely on her co-worker down the hall and the two of them working together allows their clients to call one number for all of their business needs.
However, her opinion of a resource is not someone that just answers questions. She tries to get to know her clients in depth so that she can be proactive. The more she learns about a company or a client, the more proactive she can be. The goal of her firm is to help develop and grow her client’s business and not just prepare tax returns and issue audited financials (although she points out that she’s happy to do that if that’s all the client really wants or needs). Her company wants to be able to help their clients with their marketing questions, let them know whether their 401(k) plan needs to be audited, or whether their current accounting software is adequate for the size of their company. In other words, she adds value by being the person they turn to whenever they have a question. In fact, she notes that one of her co-workers jokes that their clients will call them to find out what color they should paint their living room. That’s how much they trust the guidance that their accountant gives.
For more information on Skoda Minotti, visit http://skodaminotti.com/
Conclusion
These three people come from diverse backgrounds and are in different areas of the country. However, one thing is clear, they bring value to their clients and their clients are quite thankful for it. If my friend dumped his expensive number cruncher for someone that provides better service, I am sure he would increase sales, cut costs, run a better business and have more fun doing it. If your account simply crunches numbers, it might be time to find an account that will do more to create value for you. If you don’t start looking now, it will be tough to take your business to the next level tomorrow.
Use fine print to scare away clients
Everyone hates “the fine print”. We expect it from big companies, car dealerships and anyone selling a warranty. If you run a small business, you should ditch the fine print and be up front with your clients. Sooner or later, the client will see the fine print and feel cheated. Now you’ve lost a client and the good will you built up. Even worse than fine print is hidden print. If you hide terms from your clients, they will feel like you are running a scam no matter how small the hidden term is.
Here’s an example I recently witnessed. I was getting my oil changed at a place where they also have a self car wash with hoses, vacuums, etc. They have two types of oil changes: a basic and a supreme. The supreme costs more but of course, you get more. They just added ”free vacuum” to the supreme oil change.
After the customer ahead of me was done paying, he hopped in his car to drive away but came right back in. He asked about the free vacuum that he should have received because his car was still dirty. The manager explained that they would not vacuum the car but he could use the vacuum as part of the self-wash next door for free. He was upset since it didn’t say free self-vac.
Four minutes later, he returned. The vacuum stopped and he still had most of his car to do. The manager explained that the supreme oil change only came with four free minutes and that he would have to pay to use it more. This drove him nuts as the sign said nothing about a time limit. Even with an irate customer, the manager stood firm. Think he’ll be back there?
In my law practice, my fee agreement is four to six pages depending on the type of case. I try to not only include everything in the agreement but I explain everything when I meet with the client. There are no footnotes or fine print. It is easy to read in normal font separated by headings.
If you want to succeed, you must build trust with your clients and customers. Fine print and hidden terms will only do the opposite.
Answer your phone, profit is calling
I really can’t believe that I have to write a post on such an obvious topic but my own experience on both sides shows me how important this topic is. In order to get business, you have to actually answer the phone and call them back when you can’t take the call.
Let’s first discuss calling people back. I needed some trees trimmed at my house this summer. I called three companies and no one answered the phone so I left a message. No one has ever called me back. I call three more and yup, same result. So these are six companies that do not want business! I finally got the seventh company to come out to my house.
Not only do you have to call new customers back, but existing customers expect a call back as well. There is really no reason not to call people back. If you have the type of business where you have to drive some distance from job to job, you can use your cell phone (hands free of course) to return your calls. If your business is that busy, you need to invest in a receptionist, even if its just part-time.
Speaking of which, you are better off answering your phone than letting it go to voicemail. In this Internet age, customers want instant service. I’ve had people call me at 9am on a Saturday. When I call them back at 10am, they’ve already hired another attorney. Most of my clients want to hire me and not attorney shop so I’m not concerned about these clients, but you should be if your product or service is common and inexpensive.
Of course, you cannot always answer your phone but you should try. When you can’t, you have a few options. First, have all calls to your office forwarded to your cell phone if there is no one there to answer the phone. Second, your voice mail should clearly indicate that you promptly return calls and that they should expect a call back within a certain amount of time.
Another option is an answering service. I don’t use them because most sound very unprofessional, but if you can find a good one, they are easy to use. When you are unavailable, you forward your calls to the service and they answer just like a receptionist would. The cost per month is nothing compared to actually hiring someone, even part-time. If you do go with a service, be sure to monitor hang-ups and the response from clients when you call them back. If they are not satisfied with the service because they don’t leave a message or hire someone else after they call, it might be time to find another answering service.
If you are going to go with voicemail, consider Grasshopper.com, formerly GotVmail. It is a very robust service with a host of features to choose from. I use it and I think its great.
Interview with Rob Balko of the Atlantic Center for Acupuncture and Oriental Medicine
Introduction
With record unemployment, some people are deciding to start their own businesses which requires them to not only change careers, but to also start their entire life over in some cases. In order to give some people in this situation a little inspiration, I decided to interview Rob Balko, the owner of the Atlantic Center for Acupuncture and Oriental Medicine in Ocean, New Jersey. After years in the telecom business, he not only started over, but he started a very non-traditional business. I hope his story shows you that passion, hard work and determination can lead to success, even in a bad economy.
Jef: Explain how long you worked at prior company and why you left.
Rob: I worked in research and development for a large telecom company for 11 years and for a small telecom startup for 3 years, but I always wanted to work for myself. I was hesitant to take the risk of starting out on my own so I initially planned to study acupuncture part-time and treat friends and family until I retired. This way I’d have a ‘retirement career’ that supplemented by retirement savings. In early 2001 the market started to turn and by September 2001 I was let go from my employer. So, I dug out my application to Chinese medical school and got started changing my career.
Jef: How did you decide on this new career path?
Rob: While I was under the care of an acupuncturist, I began asking questions about how it worked, what the training entailed, etc. I began to research Chinese Medicine schools and the business aspects of running a practice. Chinese Medicine school is a 3 or 4 year program and in New Jersey, requires a Bachelor’s Degree. National and State level boards are also required in New Jersey.
Jef: Starting a new business that is less than traditional is a huge leap of faith. How did you prepare yourself mentally and emotionally?
Rob: I was, for the most part, financially stable and had the support of my friends and family members. Also, my MBA helped me to properly research the ins and outs of running a practice and what it would take to get things started.
Jef: What type of prep work did you do prior to opening the business?
Rob: First, I projected what my costs would be and how many clients it would take to cover my costs, plus how many more it would take to provide me with a basic income. I talked to many acupuncturists and other like-minded professionals on what it would take to create a practice. Lastly, I found an associate position at an acupuncture clinic. It was there I was able to treat a lot of people and become proficient. In parallel I opened my own office.
Jef: How did you attract clients in the beginning?
Rob: Simply by knocking on doors. I’d visit similar businesses (chiropractic, physical therapy, etc.) and ask them about their knowledge of acupuncture, if they had any patients they were struggling with, etc. One of those chiropractors invited me to a BNI networking meeting. I saw right away the value of such a group. I also advertised in the local weekly paper, attended many networking events, chambers of commerce, health fairs, etc.
Jef: What challenges did you face and how did you deal with them?
Rob: The first challenge is opening the door and being able to pay the rent. It took me about 6 months before I was bringing in enough money to be in the black and by the end of 1 year I was making money. To accomplish this I spent every waking hour talking with people about acupuncture and what it can do for them.
Jef: What are some of the keys to your success?
Rob: I genuinely care about my patients. I will call them the day after their first treatment or 6 months after they have ended treatment just to see how they are feeling. I am never satisfied with good results, I want great results and will keep working until I get a better result for my patients. This weekend I am getting more training in a specific style of acupuncture; I have to travel to Boston for this training but it’s worth it.
Jef: What advice would you give to someone looking to start a new business after leaving a long term career?
Rob: Do your research. I know so many people who’ve started a business and don’t understand why they aren’t making money or why no one is coming in the door. I have multiple measures that tell me where my business is financially on a weekly, monthly and yearly basis.
Jef: Knowing what you know now, what, if anything, would you do different?
Rob: I have been very fortunate that my practice has grown in numbers and reputation over the 5 years I have been in business. I don’t know that I’d change anything except maybe the location of my practice, which I am about to change now to accommodate growth.
Jef: Speaking of that, how is business today?
Rob: Business is down from a year ago this time. People are watching their wallets more than ever. More people are calling and asking if I take insurance; which I don’t. Usually, we would talk more about their condition but sadly they are more concerned about their pocket books than their health. However, people are still sick and need of care and they do seek treatment so business is not dire. Also, if insurance covers out of network benefits I will submit for the person and they get a check in the mail.
Jef: What are you plans for the future?
Rob: I am moving to bigger space that will allow me to treat more people during busy hours like early morning and after work. Also, I plan on offering “community acupuncture” or as a friend described it “acupuncture happy hour” where people are treated in the same room fully clothed in reclining chairs. I offered this a few years ago but there was little interest. I think with the economy the way it is and health care costs rising this could be a great opportunity for a lot of people to get low cost preventive medical care.
Finally, I will be able to offer space for seminars and classes for many topics such as financial advise, legal advice, Tai chi, yoga, networking mixers, etc. This way I can offer my patients more than just acupuncture but a host of resources they have access to and can use if they choose.
What has Rob taught us?
Rob’s story is a great inspiration. The fact that he made smart decisions early in life gave him the ability to take that leap of faith and start an entirely new business from scratch. He also did his homework. I think too many people just do something because it sounds cool. Rob really looked “under the hood” and understood the business model. This allowed him to prepare and plan for the future instead of just wining it. To attract customers, he identified other businesses that could refer clients to him and worked tirelessly to spread the word about his business which most people know nothing about. So, he not only had to sell himself, but he had to sell an unknown business.
Rob doesn’t rest on his laurels either. He has a passion for his work and is going for additional training so that he can provide his patients with the best care possible. Like just about every other business, he is also impacted by the economy. However, instead of sulking, he adapts by adjusting his business model to diversify the services that he offers to attract more clients.
More information
For more information on Rob Balko and the Atlantic Center for Acupuncture and Oriental Medicine, check out http://theatlanticcenter.com/ or call him at 732-775-0033.
Is your vehicle driving away customers?
I needed some minor work done at my house. So, saw an ad and called up the guy for an estimate. When he arrived, I was shocked to see the truck he pulled up in. I can’t believe that anyone would want something like that parked in their driveway so I wondered if he kept it around the block from his house out of embarrassment. I’ve heard some good things about the guy but I couldn’t get past the truck.
So that you don’t get the wrong idea, I’m not the type of person that was looking for a Cadillac to pull up. In fact, the type of car a person drives to my house for any type of work is never a concern. However, this truck was so nasty that it shocked me. I don’t want it in front of my house and I doubt my neighbors want to look at it either.
Maybe other people don’t focus on the little things like I do, but that doesn’t mean that your vehicle will go unnoticed. In fact, most customers will not analyze everything. However,seeing your nasty truck outside their driveway will start everything off on the wrong foot. When you arrive at the door, the customer may have already formed a negative opinion about you before you have said anything. Worse yet, the customer probably doesn’t even realize it. Once you leave the house, the customer may have a bad taste in their mouth afterwards and they may not even know exactly what was wrong with you.
Here’s another way to think about it. If you asked someone to come to your house to give you an estimate and the person smelled and was covered in dirt, would you want to hire that person? Why not? How do you know that the person doesn’t do great work? It’s all about impressions and the impression you want to leave with your customer is that you are a professional and that you have a thriving business. After all, if you have such a good reputation which has resulted in a ton of business, wouldn’t you have a better vehicle?
Invest in your business and look like the professional you claim to be. You will attract more customers and set yourself apart from the competition.
Create relationships first. Worry about the sale later.
I don’t know about you, but I’ve given up on the chamber of commerce (CoC) thing, at least with the ones near me. My goal in going to CoC networking events was to meet some great local business owners and start a relationship with them. Unfortunately, what I found was a bunch of salesmen that were only interested in selling me on their product or service right then and there. If I voiced any hesitation or objection, the sales pitch only increased. This was really annoying and I quickly chucked their business cards.
Another issue I ran into once was a meeting I had with a guy where we were supposed to be working on getting to know each other. Instead, he had a portable DVD player and had me watch a DVD about his business. Once it was done, he continued to tell me why I should sign up for his service and that was about it.
He really didn’t want to learn about me or my company. I had a meeting with another guy a few months after that who literally talked the entire time about him and how I could and should send some of my clients his way. Not only did he not ask about my company, but when he was done talking, he said he had to go so I never even got to tell him about my business.
Clearly, none of these people care about anyone but themselves. They are interested in closing a sale and then moving on to sell the next person. Needless to say, both of these guys that I meetings with are not doing well in their respective businesses. I’m sure the people at the CoC events aren’t doing well either.
If they weren’t so desperate and short sighted, they would see that if they actually took the time to create relationships with people, their sales would sky rocket (assuming of course that they are selling valuable products and/or services).
I could attempt to explain the need to create relationships in more detail, but this has already been done for you by Dr. Ivan Misner, the founder and CEO of Business Network International(BNI). Click here to read his May 2003 column in Entrepeneur magazine on this exact issue.
