...“Is there any way you can go lower?”

The Sausage Vendor said he bought his sausages for a buck, and sells them for $.95. When challenged as to how he would make money, he said, “No problem, I’ll make it up in volume.”

Business owners focus on Revenue when they should be focused on Profit. If they focused on Profit, they would raise their prices more often.

The old saying is wrong – “If you’re worrying about sales, profits will take care of themselves”.

Neither Revenue nor Sales are a good place to focus financially – we need to focus on profit (actually cash flow, but that’s another story.)

What barriers do you encounter in communicating your pricing to potential clients?

Competition, market conditions, aging industry, complex service, fear, not understanding how to price? Probably a little of most of the above. When we aren’t sold on our pricing, what does that communicate to the potential client? It communicates that all of the above (competition, market, fear, etc.) are all good reasons not to buy my product or service from me. The best way to create pricing problems is to not believe in our own pricing.

A caterer friend gave his “best, lowest” price to a potential client, skimmed of any “excess” profit, and the client’s response was “Is there any way you can go lower?” When we aren’t confident in our prices, we mentally set up shop in a place that attracts bottom-feeders like the guy above. Getting a lot of pushback on your prices? It’s possible its because your prices are too low!

Joel Spolsky is the co-founder and CEO of Fog Creek Software, said “I often meet people at parties and conferences who are starting companies, and they will invariably ask me, “Say, Joel, do you have any advice for start-ups? Since I know next to nothing about these people or their businesses, or even their industries, I usually just say, “Yes! You should raise all your prices!”

And we both have a good laugh, ha ha ha, then the founder ignores me. But my advice was most likely right. That’s because almost every start-up I have ever seen has set its prices too low.

Of the three business owner Profiles – Market Focused, Systems Focused, and Product Focused, the Market Focused entrepreneur is most likely to have good pricing, and the Product Focused craftsperson will have the worst.

The problem – the overwhelming number of businesses are started by Product Focused craftspeople. (The Systems Focused manager loves accounting-driven pricing that ignores all market conditions; they also start the fewest businesses.)

What makes for the most profitable company? One that focuses on providing VALUE, not COST! Lower prices is not value, it is simply lower prices (and may communicate less value).

FIND VALUE OUTSIDE OF PRICE! If relationships are equal, there are only two other buying questions – 1) How much does it cost? (price question), or 2) Can you do it? (value question). If you’re getting the “How much does it cost?” question too often, you’re not focused on adding value or you’re not confident in the extra value you’re delivering. Either one will lose you clients much more than your pricing itself.

What does having slightly higher prices communicate to the customer? We are confident in how our product performs.

How do we get confidence?

1. Understand the value to your clients. Ask them – why do you buy from me? What are you buying that you don’t think I even know I’m selling? It’s the best question you’ll ever ask them.

2. Stop thinking about how YOU think you perform (internal/craftsmen view), start pricing based on how you benefit them (see #1 above.)

3. Get some support – have somebody hold your feet to the fire on WHEN you will raise your prices.

Raising your prices is usually the fastest way to create new PROFIT. If you’re already covering all your costs, then every penny of higher prices falls directly to the bottom line. Want to make more money in less time? This is one of the best ways to do it.

.....2 out of 3 ain't bad!

No doubt you've been on the receiving end of lousy customer service a time or two. You've come to a company with questions only to be told by some sterile voice to press this or click that until you arrive full circle to your starting place with no help at all. Or, worse, you've reached some bored CSR (Customer Service Representative) who calls you by name but delivers only the infamous phrase, "I am sorry, but there is nothing I can do."

Now you are on the other side of the equation. You own a business or you manage a department or you are now in sales and you want your customers to be happy, to come back for more products or services, and to tell others wonderful things about your company. What do you do?

Whatever it is that your company does, no matter how you do it, you make a promise to each and every customer that darkens your virtual door. You enter into a contract, even if the terms aren't explicitly stated. The consumer pays you something, and you promise to provide a product or a service. There are pledges of quality and quickness. Customer service involves living up to your word on these matters, but it really gets to shine when something goes wrong.

Here's the thing. Mistakes are opportunities -- golden ones. Here's why. Studies show that a satisfied customer will tell 2-3 people about his experience with your company. A dissatisfied consumer will share their lament with 8-10 people and some will push that number to twenty.

But here's the opportunity. An unhappy customer will become a loyal consumer if you fix his complaint and do it quickly. Eighty percent (80%) of these folks will come back to you if you've treated them fairly. That percentage rises to the upper 90s if you respond immediately. Every day you have the chance to transform your mistakes into returning customers -- the kind who will tell other people good things about you. Imagine that.

Authority to resolve problems is what your front-line people need to keep your customers happy. Companies that don't trust their CSRs or sales people engender fear in the employees that becomes an unwillingness to provide the "on-the-spot" solutions that create loyal customers. "I'll have to check with my supervisor", is a formula for disaster. There is a high correlation between excellent customer service ratings, a solid bottom line, and employee loyalty. Build these strengths into your structure. Teach your CSRs to say, "I can fix that," and give them the authority to do it. They won't give the store away. They will deliver profits.

Service that goes beyond expectations. If you've made a mistake, fix it, and then provide a perk for the customer-something that says, "I'm sorry," and, "I care". When all is said and done and the dust has settled, follow up with the customer. "How did we do?" "Is there something else you need?" Chances are you'll get another order on the spot.

A forum that gives a voice to the silent customer. Fewer than 10% of dissatisfied customers actually complain to a company, but they do complain to each other. They'll tell other people what you did wrong, even if they never tell you. Remember the statistics, and give these people every opportunity to tell you how you're doing. What you don't know can certainly hurt your company. Call them. Send them an e-mail. Write them a letter. Ask them if they're happy and what they need from you. Much of this will lead to more requests for your services or products.

Now, none of this takes into account the occasional customer that is rude, irate, and unreasonable. They're out there and despite what you've been told, they are not always right. But this is true, they are always human and chances are they will cool off and get their wits about them when they realize that you are listening, that you can help them, and that you care. Most customers will respond favorably to good manners.

Price and value weigh heavily in the minds of consumers, especially in tough economic times. Many consumers say companies haven't done enough to improve their approach to service in this economy. But it gets tougher to 'beat everyone's price....have the highest qualiity product....and provide the best customer service.'
 
Can we say...best 2 out of 3?

...learn to "balance your checkbook!"...

PORTLAND, Ore.—Oregon voters approved two special tax measures Tuesday designed to close a $733 million state budget gap. With 95% of the vote counted, Measure 66 garnered 54% of ballots and Measure 67 received 53%, the Associated Press reported.

What they didn’t report is that Oregon “over-spent” 4.6 BILLION last year during the heart of the economic shortfalls. That’s right “billions.” And have increased spending on average of 30% over the last 30 years! But it is 'all about the children' (especially all the new Spanish-speaking teachers we need today).

Oregon voters have spoken up in defense of state programs and schools (like they always do because they watch stupid commercials) and they will soon see a larger portion of the state's revenue coming from both individuals who earn higher than average incomes, and Oregon corporations. County and state educators breathed a sigh of relief after voters approved a tax hike Tuesday that will ward off deeper cuts into school budgets this year.

"Passage of these measures means we keep core services of education, health care and public safety that Oregon families, businesses, and communities count on," said Oregon House Speaker Dave Hunt, a Democrat who represents Clackamas County. Defeat, he said, would have forced the state to cut nearly a billion dollars more from such services.

The twin ballot measures also served as a gauge of anti-business populism and highlighted a nationwide debate over whether to fix state budgets by targeting the affluent. But they also fueled resentment of "tax and spend" legislators, as well as public-employee unions whose members enjoy job security at a time when thousands here have lost jobs.

But allow me to piss on the victory chant for just one moment to inject a small dose of reality: What Oregonians might have said in voting "yes" for Measures 66 and 67 is that taxing wealthy people and business owners is simply too hard to resist, especially when misleading ads suggest that business owners only contribute $10 a year to government services.

You see?  Most Oregon businesses don't pay state corporate taxes because they aren't C corporations. They pay taxes on their business income through the personal income taxes of their owners. (You will see them moving out of Oregon soon).

For now, it seems to me that all we know from the "yes" votes is that most voters believed that more money for government is a good deal when it costs a minority group rather than everybody.

Measures 66 and 67 will hurt businesses' ability to restore jobs Oregon has lost in this recession, and they will hurt Oregon's venture-funded startups. But these permanent tax hikes -- the biggest tax increase in the state's history -- affect more than just startups. They are bad for all businesses.

Oregon's current economic challenge, the worst in 70 years, is the loss of more than 131,000 jobs -- more than 9 percent of Oregon's private-sector employment -- since November 2007. That's why state revenues haven't grown.

In addition to expressing faith in and thanking voters, supporters of Measures 66 and 67 should start writing thank-you notes to the state's wealthy people and business owners who will pay the higher bills. And they should keep some notes of sympathy on standby for any private-sector employees who soon could be out of work as a result of increased business taxes in a time of recession.

Oh, and when the businesses refuse to move to Oregon and many move to others states…hear me clearly when I say that is way too far for you to ride TriMet or your little bicycle. Grow-up you idiots! You have no idea what you just approved.

New boss...same as the old boss....

"To build a lasting foundation for America’s economic prosperity and security, we’ll organize around the core challenges facing Americans and their families — energy, health care, and education. By acting together, we can overcome the obstacles that for too long have prevented real change on the critical issues that Americans face day in and day out. Now is the time to leave behind the status quo and build support for real solutions to ensure that President Obama succeeds in fulfilling the promise of change. .....

....We will not rebuild our economy on the old model of bubbles and busts. We'll only climb out of the current crisis by creating a new, sustainable foundation for our economy's future -- and make the tough choices to put our economy back on the road to long-term prosperity." ~Organizing for America: President Obama’s official website.~

OK Mr. ‘two-face’…you promised over-and-over about “yes we can!” (Politically correct or not…you are having great difficulty telling the truth). Quite honestly Mr. President, you remind me of a boss I used to work for (not work with)…he couldn’t tell the truth on a consistent basis either. Let’s see how you have done sir!

Lie: Despite promising to keep lobbyists out of his administration, Obama has broken his word again and again (making 17 exceptions to this promise in his first two weeks).

Lie: Obama promised to eliminate income taxation for seniors making less than $50,000 a year. He has broken this promise despite numerous opportunities to keep it, including the economic stimulus package and his administration's first budget proposal.

Lie: Obama made it part of his agenda to "allow withdrawals of 15% up to $10,000 from retirement accounts without penalty (although subject to the normal taxes). This would apply to withdrawals in 2008 (including retroactively) and 2009," but didn't include this measure in the stimulus package or his budget proposal.

Lie: Obama did a shameless 180 degree turn on earmarks by sharply criticizing them (and bragging that he would pass legislation without a single one) and then signing a spending bill with literally thousands of them.

Dumb: In his first private meeting with Congressional Republicans, instead of "reaching across the aisle" and seeking earnest dialogue, he smugly told them that he should have his way because "I won."

Dumb: Taking a page out of the Bush Administration's playbook, Obama applied shrill, frantic, fear-mongering rhetoric to assure passage of his stimulus package.

Dumb: Obama's appointment of Hillary Clinton to the office of Secretary of State was unconstitutional.

Dumber: His movement of the United States Census out of the Department of Commerce and under the direct control of the White House was unconstitutional, politically motivated, and a dangerous, undemocratic expansion of executive power.

Dumb: His lavish inauguration also cost $170 million.

Dumb: Obama's Earth Day flights burned more than 9,000 gallons of fuel.

Dumb: Blaming Bush for America's deficits, but then increasing spending. This is after saying on the campaign trail: "There is no doubt that we’ve been living beyond our means and we’re going to have to make some adjustments."

Lie: Choosing purebred dog, "Bo" for the White House family's "first dog" instead of adopting a dog from a shelter like Obama promised.

Lie: The President also boasted during his campaign that "During 2009 and 2010, existing businesses will receive a $3,000 refundable tax credit for each additional full-time employee hired," and has failed to keep his word.

Last one for now: Obama promised a different tone in Washington D.C. and a move past bitter, partisan rhetoric. It took him less than a week as president to berate Republicans and sully the dignity of his office by picking a very public rhetorical fight with a private citizen, Rush Limbaugh.

It is easy to remember the truth..and harder to remember a lie. Just ask my old boss!

What the hell happened?-part 4

"There are two things that I want you to make up your minds to: first, that you are going to have a good time as long as you live - I have no use for the sour-faced man - and next, that you are going to do something worthwhile, that you are going to work hard and do the things you set out to do."

- President Theodore Roosevelt
Talk to schoolchildren in Oyster Bay, Christmas-time 1898

Understanding Craftsmanship…’what happened to America?’

Earlier this year, on Independence Day, many Americans observed the 233rd anniversary of their country's independence. They drove to the lake or seaside, barbecued, drank, watched fireworks, or otherwise celebrated, but few contemplated the meaning of independence. For those that did, several questions presented themselves: What happened to America? What happened to her independence? What happened to the promise of this once great land?

In 1959 America was the envy of the world, a beacon of freedom. It was still rejoicing in its vibrant, post-war economy, its population had exploded due to the "baby boom," and its people were the freest in the world. It was a nation aware, and justifiably proud, of its accomplishments. It produced more than any other nation. It had large stable families in which men and women worked together to raise strong future adults.

America had industrial and political leaders that took pride in their social responsibilities. It had the lowest crime rate in the world, with a correspondingly low incarceration rate. It had shining cities that were the jewels of the world. Its infrastructure was second-to-none. It had the best healthcare system, an honest government, low taxes, and a booming economy. Its people were rightly proud of it and loyal to it. What happened in the intervening half century?

Today, America's decaying inner-cities are cesspools of crime and blight. Assault, muggings, robberies, home invasions, carjacking, rapes, and murders are the norm. Graffiti and decay are everywhere. Elderly people are afraid to venture out - day or night. The poverty rate is rising even faster than the tax rate that overburdens America's working class.

Diseases like tuberculosis, that had once been eradicated, have returned. New problems like AIDS and H1N1 pop-up semi-regularly. Ideas like civic duty, patriotism, religion, and freedom are openly scorned. Its healthcare system is failed and its education system is corrupt - focused on teaching "tolerance" and other socialist ideologies, rather than giving its students an education useful in the real world. Political and financial corruption are rife, its economy is dying. Its good-paying, manufacturing jobs are off-shored and unfettered mass immigration allows hostile, third-world invaders in to take the service jobs that can't be sent overseas. Those invaders are then given social welfare largely unavailable to the average American and taught to resent White America. Don't believe me? Then you are an idiot and in a coma.

White American women are having 1.3 children per each - the non-white replacement level is 2.8. Aggravating this problem is the facts that, increasing numbers of the children white women, are having, are non-white. White America is going extinct. This deplorable fact is frequently lauded by corporate and civic leaders alike. Even our 44th President is not black as they all mention...he is half-white but let's make sure we never mention that...white is bad now. Why? Even during his inauguration some idiot mentioned, "Now is the time for white to get it right." Kiss my ass! What a stupid statement. But that's America today, say anything...anytime you want...no responsibility!

World-weariness and civic indifference grow daily. Attacks on constitutionally protected freedoms are frequent. Increased substance abuse-especially abuse of prescription medications - abounds. The institution of family is ridiculed and subverted. Every kind of sexual deviancy is advanced as normal. Everyone, including children, are encouraged to be as promiscuous as they like. At the same time abortion and birth control are heavily promoted leading to a dangerous decline in our birthrates.

What the hell happened in just 50 years?

Who says the government schools and the welfare state don’t work? They work perfectly. They were designed to put the American people into a political coma, and that’s what they’ve done. The objective would never be framed that way. The politicians would say that the purpose was to create unity, patriotism, and gratitude toward those who “protect our freedom,” that is, the government. But in fact, the purpose was to induce a political coma, and it’s done so.

How else to explain that few people give a hoot that we were obviously lied into war by the president of the United States, the vice president, the secretary of state, the secretary of defense, and others, without a proper congressional declaration, and led to believe that Saddam Hussein was both willing and able to launch so-called weapons of mass destruction against us on 45 minutes’ notice?

How else to explain that hardly anyone notices that with respect to criminal suspects the Constitution has been all but consigned to the paper shredder, with American citizens and others being held indefinitely without charge and without the right to go before a judge to challenge such treatment?

How bizarre that for most people, sticking American flags on the car and front lawn is the highest sign of love for America, and questioning the president’s honor and veracity is the surest sign of treachery. After years of fruitless WMD searches in Iraq, the politically comatose are satisfied with their leaders’ and the media parrots’ inane responses: “We’ll find them eventually.” “We know Saddam Hussein had them back in 1988.” Or: “Hussein was the real weapon of mass destruction. Besides, we liberated the Iraqi people, didn’t we?” Didn't we? How many years has it been?

The question that takes the cake is, “Don’t you support the troops?” The non-comatose would know that to oppose sending Americans into unnecessary war is support. But that question is only supposed to change the subject. It’s the kind of thing the politically comatose say when threatened by the reality of facing responsibility.

Do you realize it has been eight years since Islamic terrorists flew hijacked planes into the World Trade Center towers and the Pentagon? It’s one of those defining moments in time when you’ll always remember where you were and what you were doing when you first heard the news. Do you remember how our nation responded in the days and weeks following 9-11? Although tragic, it was a time that made us all proud to be Americans.

Fast forward eight years to 2009 and we now have a country that thinks we shouldn’t be at war with Muslim extremists, and a country that elected a President named Barrack Hussein Obama and thinks that we should end this war. In 2001, Barrack Obama was unknown to most Americans outside of Chicago. What would you have thought, if on September 12, 2001, you somehow were able to peer into the future and see a newspaper from January 2009 with the following headline: Barrack Hussein Obama Sworn-In as 44th President of the United States. I know what I would have thought. The terrorists have won with a name like that.

So what happened between 2001 and 2009 that caused such a u-turn in the American psyche? Are we no longer the nation that fought for freedom from British oppression and defended Europe from Nazi and communist schemes to conquer the world? What happened to that America?

The truth isn’t pretty these days. But there it is. Look for yourself. If you can feel proud about it, I don’t understand you.

....enough said about America....

What the hell happened?-part 3

Understanding Craftsmanship…’what happened to America?’

So, what are the attributes of a craftsman? What makes a craftsman a craftsman? There are three basic attributes described herein:

1. Possesses the necessary knowledge and skills to perform the work

The craftsman is an expert in his field of endeavor; so much so that he could easily serve as an instructor in the subject matter. But the craftsman is also smart enough to know that education is not a onetime thing, that his world and field evolve as new tools and techniques are introduced. As such, the craftsman is a student of his profession and is constantly looking to improve himself. This is exercised through such things as continued education, routine certification, studying books and trade publications, and industrial groups. The craftsman willingly participates in trade groups, often at his own expense, in order to network with his peers.

It is Important to note that the craftsman does not need to be told he needs periodic training to sharpen his skills. Instead, he takes the personal initiative to stay on top of his game. Further, the craftsman has no problem with a periodic job review; in fact, he welcomes it for it might bring out a weakness in a skill he needs to sharpen.

2. Attention to detail

The craftsman understands and respects the process of building/delivering a product or service and is acutely aware of the penalties for cutting corners. Earlier (in part 2) we discussed the need for a methodology that specifies 5W+H. The craftsman is intimate with all details of his scope of work, so much so, he could probably write the methodology himself. Further, his intimacy of the work process means he can produce a reliable estimate of time and costs to perform the work.

Although many of the craftsman's tasks may be repetitive, it doesn't mean he easily falls into a rut. Instead, he is constantly looking for new tools and techniques to improve the work process. As such, he plays the role of Industrial Engineer who is normally charged with such a task.

The craftsman's attention to detail also means that he demonstrates patience in his work effort. Again, wary of cutting corners, the craftsman must possess such patience in order to produce the product the right way.

3. Views professional life as an extension of his personal life

The craftsman identifies with the end product which is where pride in workmanship comes from. In his mind, the craftsman has been charged with the responsibility of producing something, and wanting to satisfy the customer, puts forth his best effort to produce it. In other words, craftsmen take their work personally. This is a difficult trait to teach particularly in today's society where the focus is more on financial compensation than on the work product itself. It may sound naive, but the craftsman believes he will be suitably compensated for producing superior results.

Years ago, Dick Butkus of the Chicago Bears (NFL) confounded sports writers who could never understand why Butkus played as hard as he did year-after-year for a losing football team. True, Dick loved the game, but beyond that, the sports writers didn't understand one thing about the seven time All-Pro linebacker: Butkus took his job personally. It was important to him that his opponents know that they had been tackled by the best player; as he said, "When they get up from the ground I want them to say 'it must have been Butkus that got me'." Dick Butkus was a craftsman.

The craftsman has a burning desire to produce a superior product/service because he sees it as a reflection of himself. As such, the lines delineating their personal life and professional life are blurred. This is a significant characteristic that clearly separates a craftsman from the average worker. The craftsman's work is his life. He does not shirk responsibility, but rather embraces it with confidence and embosses his name on the finished product. Conversely, making a work related mistake of any kind pains a true craftsman.

Job titles are normally inconsequential to the craftsman who is more interested in delivering a quality product/service enjoyed by the customer. Instead, the craftsman takes pleasure in being touted as the best in his craft. He appreciates recognition; when someone makes a compliment about a product, the craftsman views it as a personal compliment. This too runs contrary to today's corporate world where people desperately seek recognition through simple job titles. Want someone with an inflated ego? Give them a big title.

Want something done right? Call a craftsman.

....more to come......

What the hell happened?-part 1

When I got into the work force back in the mid-1970's it seemed everyone dressed in a suit and tie, drank black coffee, smoked their brains out, and worked their butts off.

Today, golf shirts have replaced suits, herbal tea and bottled water have replaced coffee, nobody is allowed to smoke, and rarely does anyone work beyond 5:00 pm. And when did the tide turn when I now need Rosetta Stone to order something to eat or get a software technician's help on the phone?

More importantly, we used to care about the work we produced; there was a sense of craftsmanship, regardless of the job.

When I was much younger I went on a tour of a Cincinnati company's machine-tool shop and watched how they could take a block of aluminum and convert it into a high-precision machine tool. It was a pleasure to watch them work, as it is to watch anyone who knows what they are doing, be it a waitress.....a programmer.....a laborer or a clerk.

Quality and service used to be considered paramount in this country. If it wasn't just right, you were expected to do it over again until you got it right. We cared about what we produced because it was a reflection of our personal character and integrity. But somewhere along the line we lost our way and craftsmanship has fallen by the wayside. Why? Probably because most employees no longer care.

In today's society, employees are acutely aware that it is difficult to be fired due to poor performance. They know they will still get paid and receive benefits, regardless of the amount of effort they put forth. Consequently, there is little to encourage people to perform better. Money isn't a motivating factor anymore. People now expect bonuses, raises and other perks to be paid out regardless of how well they perform during the year.

We've also become a nation content with doing small things. America used to be known as a powerhouse that could tackle large projects, such as building skyscrapers, designing innovative bridges and tunnels spanning substantial bodies of water, engineering transcontinental railroads and highway systems, conquering air and space travel, and defending freedom not just once but in two world wars. If you really wanted something done, you talked to the Americans and no one else. Now we get excited over iPods, cell phones, and other electronic trinkets.

Many believe Craftsmanship is in decline due to the general apathy found in today's society. Maybe.... I tend to believe it is due to an erosion of our moral values. Let me give you an example. My interest was piqued recently by an article describing the pervasiveness of cheating and plagiarism in our schools. It is not my intent to make a political statement here but many of the students mentioned in the article rationalized their cheating on the fact that one of our past Presidents cheated and lied under oath, and got away with it. They figured if it is okay for the Commander-in-Chief to act this way, it was an acceptable form of behavior.

Arnold Toynbee, the famed English historian, observed, "Civilizations die from suicide, not by murder." If the moral fabric of our society dies, our story is told as evidenced by other great civilizations that long preceded us. Our perspective needs to be realigned: Our personal and professional lives must be viewed as one. As Toynbee remarked, "The supreme accomplishment is to blur the line between work and play." By doing so, we identify more closely with our work and assume a greater pride in workmanship. We do not need to hear this from our boss, but rather from within. As strange as it may sound, I see Craftsmanship as being patriotic in nature; doing a good quality job is part of leading a good and honorable life and builds on the individual's esteem, the company he works for, and the country he lives in.

The biggest problem though is that we have forgotten how to manage people. The manager's primary goal is to create the proper work environment for employees to produce the desired work products. Simple right? This is different than a supervisory capacity that directs how each person performs the various tasks of a job. In fact, I encourage managers to manage more and supervise less. I cringe when I see a manager try to "micromanage" an organization.

Yes, people need to be trained in order to properly perform their work but following this; employees should be mature enough to supervise themselves. In the old days, management stressed discipline, accountability, and structure; three ugly words in today's workplace.

....end part 1....

It's over!! End of the road....

I don’t know about your experience, but I’m hearing so much economic doom and gloom that I think it must be time for me to give up and quit.

The newspapers and television networks have convinced me (and almost everyone else) that we’re in a hopeless situation. I really wanted my business to prosper and grow in 2009, but I must be an idiot for believing there is any chance for success. I guess it’s time to turn off the lights, lock the doors and wait patiently for the economy to improve.

Or is it? Maybe business development professionals everywhere need to answer these four questions (honestly) before tossing in the towel.

#1. How does this “recession” actually affect you? (No, really?)...How does this “recession” actually affect you? The National Bureau of Economic Research defines a recession as three quarters of falling real gross domestic product. This might be fascinating stuff to some people, but I can’t directly correlate “real gross domestic product” to my sales effectiveness. Can you? Even during a recession companies still have to buy goods and services. They may buy different, they may buy less, but they still have to buy. If you can’t convince prospects that what you’re offering is a solid investment with meaningful return, then maybe the problem lies closer to home.

#2. Do you really believe you’re on your customer’s speed dial? Are you 'the man?' (No, really?)...Do you think they do not buy from others? Customers are nervous just like everyone else; they’re reading the same headlines that you are. Sitting in the office waiting for them to call you isn’t going to help you meet your goals. Reach out and contact everyone you’ve ever done business with. Show up with valuable ideas, offer help, look for referrals and ask for their business. This isn’t open season to “call and check-in” but it’s a great time to re-connect and nourish all of your existing relationships. This may sound like a lot of work because it is.

Very few people ever drift into greatness; it requires action. What are you waiting for?

#3. Are you as good as you could be? (No, really?)...Are you the best?...not what you tell yourself "barista boy"...but are you the best?  Many sales people think that once they’ve taken a professional selling course or had a little success at sales, they’re essentially done with learning. That may be OK if someday your closing question becomes: "Will that be paper or plastic?" or "Would you like fries with that?" Success as a sales professional requires skill, knowledge, attitude and purpose. If you’re not consistently developing yourself in these areas then you’re going backwards. There is no status quo....and sometimes...'daddy can't find the sales for you!' Being the "low-bidder" on a bid is not the definition of sales....anyone can give the product away.

There are more development tools available for today’s sales professional than ever before. Books, podcasts, tele-seminars, live training programs, webinars, personal coaches, downloads, sales portals and much more. You can’t wait for your boss or organization to take responsibility for your success. It’s up to YOU! It takes courage to admit you can be better and confidence to believe you can change. It takes nothing at all to create excuses. "It's the economy...yea, that's it...that's why I totally suck!"..."When my boss was GIVING me leads...I could close them regularly...what happened?"

#4. How much energy are you wasting on things you can’t control? (No, really?)...Do you worry about others, the world, the auto industry....don't....WORRY about whether you are part of the problem...or part of the solution.  The world surrounds us with headlines about inflation, bailouts, credit crisis, mortgage fiasco, recession, debt, jobless claims and on and on. Are you concerned? I know that I am. But I don’t have much control over what is happening in the headlines, so why get tied up in knots? And running your sales business isn’t much different.

----Monday, I start as the new Business Development Director for the largest moving, storage, and office furniture company in the state. Everyone is looking for a "leader" to help them in this economy. I am that person. It started when I was a little boy...playing baseball. In one game, our team was losing and with 2 outs....in the last inning...and our batter had 2 strikes against him....I listened as my team member (who was on deck to bat next) said, "oh my, I hope he actually strikes-out....I am afraid to be the last out."

As fate would have it he received a base-on-balls...and my timid team member walked slowly to the batter’s box....only to be hit in the leg by the next pitch. With both teammates now on base....it was my turn to 'win or lose' the game....all eyes were on me....a total 'hush' of anticipation. Can I make a difference?

That is exactly what motivates me in the morning....

Why barista training won’t work….(part 2)

Part 2 of: Barista training just won’t cut it…

Last time we visited why the 'top-notch' salesperson is actually disappearing before our eyes. Reasons? It is simple. No one wants to 'hone their craft' like they did in the old days and the "cool" building doesn't "sell" anything...anymore.

What if a barista didn't have a cool building? Would you still pay 4 bucks for a cup of coffee? What do you mean Tracy? Look at "all" the crafts in the world today that have been watered-down to a fraction of what they were in the peak of U.S. economy. Oh, and that reminds me!

Rule one—don’t blame the economy. Companies still have to buy goods and services no matter what the economy is doing. They may buy differently, they may buy less, but they still have to buy. If you can’t convince prospects that what you’re offering is a solid investment with meaningful return, then maybe the problem lies closer to home. Let’s look at this a different way. The major objection most reps face during slow times is, “I have no money.” How is that possible? If your customer has no money then they’re out of business. What they are really saying to you is, “Your ideas stink.”

What can you do to close more business in a slowing economy? Start by answering these three questions that will put you back on the path to success. I can’t guarantee that they will work for you, but I can guarantee that they work.

How much energy are you wasting on insignificant activities?

You’ve probably been told that business will improve if you just make more appointments, increase the number of demos, and give more presentations and ramp up your number of cold calls. Don’t get me wrong, there is nothing incorrect with increasing these selling activities; especially if you sell low-value products to one-time customers. Experience tells me that chasing everything that looks like an opportunity keeps you busy but makes you very ineffective. You’ll be working hard, but you won’t be working smart. Eventually you’ll burn out your prospects and yourself – toast for two!

Start today by re-qualifying every prospect and work on cleaning out your funnel. Focus on your best selling opportunities and put your energy there. You’ll create more success by investing the right resources into ten solid opportunities than you will by chasing twenty five half baked leads.

Are you making every conversation count?

Clients and prospects should be impressed with your preparation for every sales call. When you demonstrate that you’ve done your homework it becomes easier to have an open and honest dialogue with you. When the economy slows down, people get nervous. They don’t want to waste time meeting with sales reps unless they see some potential value. (Hint: A barista waits for an order ...)

The “smile-n-dial” mentality of simply pounding on more doors with the same pitch may produce extra appointments. But it also creates the fear that you’re going to sell them something that they don’t need. Open your next client conversation with this simple phrase, “In preparing for this meeting I took some time to…” Then simply highlight the two or three critical things that you did to prepare and watch what happens to the atmosphere of the call. You will blow away the last rep that opened their meeting by announcing that they were just “checking in” to see if anything new was going on. (Hint: A barista checks to see if you want whipped cream...)

The goal is to stop “educating” your customers. They don’t care unless they are engaged. Talking about your company, your products and your reputation will not engage customers. Talk about them, ask about them, provide ideas for them and communicate in terms of them.

Who are you talking about—you or them? Knowledge is a key ingredient to sales success, especially in a slowing economy. The more you demonstrate knowledge, the more prospects will take time to listen. And the best way to establish expertise is not by pitching features; it’s by asking questions. Questions that can differentiate the value you bring to every call.

(Hint: A barista concentrates on memorizing your order...)

.....more to come.....

It's Spring..."a time for change"

This has been a very, very long winter for me! I was snowed-in for almost a week...and after that...it seems to rain almost every day.

As soon as the sun peeks-out, everyone seems to run to the window like they have never seen sunlight before...pathetic. And besides that....the idiots that drive with studs on all 4 tires...in the rain....don't get me started.

Thank God it is spring! It's time for a new beginning...and time for me to find a new job. My 8 years are up!

Leaving a job isn't a crime. But many workers feel incredibly guilty about it and will even put off telling their boss, which actually makes it worse if it means your boss has less notice than he or she would otherwise have. The big thing to know is that you don't owe anyone an excuse or an apology for leaving. People leave jobs all the time -- it's normal. Any boss who isn't crazy knows its part of doing business. Simply be straightforward and professional about it, and you'll likely be surprised at how smoothly it will go....more to come.

WITH TODAY'S sluggish economy, most people who are employed can't help but breathe a little sigh of relief that they have a job--even if they don't really like it. Human nature is to retreat to the trenches in times of uncertainty, and those who would like to make a job change are left wondering whether it is safe to poke their heads out and take a look around.

The good news is that, despite the economic slowdown, it's still an "employees' market" in much of the U.S., with a significant labor shortage in many parts of the country. For example, a survey by the Connecticut Business and Industry Association and Andersen Consulting found that 75% of small and midsize businesses that responded are having trouble filling vacancies because of the shortage of qualified workers.

More to come....

What's so weird about it?

The fact that we actually put-up with this crappy weather is beyond me. The majority of the nation is dry and sunny…and yet we have the same drip….and ‘what color gray is this?’

The exciting thing is Spring is on it’s way with all the bulbs blooming. This is what it is all about. The ‘new beginning’ each year.

I know that if the economy cooperates…wait!! Let’s mention this “bad economy” for a moment….it took me time to find a parking spot at Costco as I passed the huge line waiting to get gas….as I stood in line for 20 minutes…..as the 12 people in front of me purchased flat screen TV’s and y2k-type food in their carts. The couple in front of me bought $600 worth of goods.

The economy will rebound! Americans ‘have to spend’ and people like to buy. Look around! Resturants are busy…Best Buy sales are up over 10%….STOP watching the news. The first 7 stories on the news tonight were ‘how bad’ the economy is…..as I listened to 6 straight commercials from drug companies….(the side affects out-weigh the reason to try the product)…..who runs this country anyway?