FrontLine Results : Business Coaching

What Should You Charge?

I was looking through my newsletter archives at the weekend and came across this article from 2005! The topic is just as valid today - and I think the tips are too... let me know what you think

 What Should You Charge?
The answer to that question is simple – you should charge what you’re worth! The explanation will take a little longer....

Many businesses bump along the break-even line because they don’t charge enough and unfortunately many go out of business for the same reason.

Whether you’re selling products or services, you have to believe in what you have to offer – or you’ll have an uphill struggle expecting people to buy. If your prices are too low, the perception of your products/services is that they are inferior in quality and durability to those with a higher price tag. In other words, cheap.

If you’re tired of customers trying to beat you down in price or saying you’re too expensive, try something radical – raise your prices! Let me explain a bit more ….

What sort of customers do you want? Those who are just looking for the best price deal or those who appreciate the quality you can offer?

Something most of us forget when setting prices is how much studying, research & development, expertise and experience has gone into our products and services. They need to be factored in, they cost you time and money to acquire. Be proud of what you have to offer, you’ve worked hard for it.

Be First Class
If you’re going to raise your prices, you’re going to have to deliver the goods. Make sure that you give a first class service to each and every one of your customers, for each and every purchase they make. Go further and delight them with great follow up and add value wherever you can – you can afford to as this is now included in your higher price.

I recently bought a new car. The young salesman was very eager to please and personally made sure all my requests (including enough petrol to get home!) were carried out. As I drove away, I thought that was the last I’d hear from him....

However the next day, he called to make sure everything was OK and said to be sure to call him if I had any problems. He called again after a week and yet again after 4 weeks – just to check that I was still completely happy with the car. Now I know I paid for this service in the price of the car but how often do you actually get it? I was and still am a delighted customer.

Two Quick Coaching Questions
What can you do to delight your customers?  And when are you going to raise your prices to reflect what you’re worth?

5 ways to handle objections to sales!

When you hear objections from prospective clients, take heart because it's actually a good sign! It means that, although they could be interested, they still have some unanswered questions. The problem is that they sometimes don’t know what those questions are! So they say things like “You’re too expensive”, “I already have a supplier”, “Send me something in the post and I’ll think about it”, or even “I need to ask my boss”.

I’ve seen many business owners stopped in their tracks because they thought they were sure to get the order. They didn’t see the objection coming and now need to scramble to retrieve the situation.

If this has happened to you when you’ve got as far as meeting up with your prospect, you'll know it can be very frustrating. It also means that you’ve missed out a vital part of the preparation you should have done before the meeting.

You may not always encounter objections but you do need to be ready for them – just in case. Here are a few ideas to help you do this:

1. What are the most common objections you’ve come across so far in your business? Write them down. What other concerns might your prospective clients have? Write them down too.

2. Now note down your answers to each one, based on the benefits your products or services provide. Every business owner or sales person needs to do this exercise before they start making appointments to call. Keep your notes for future reference.

3. You can minimise objections and concerns by raising them yourself. For example, you can include your answers in your marketing materials and on your website.

4. During your initial conversations with a prospect, ask questions to find out what their concerns are, so you can address them straight away.

5. Check if anyone else needs to be part of the buying decision so they can be included from the beginning, and you can prepare answers to their questions too.

Don’t be caught out by objections, be ready for them!  What tips would you add?

Do you ever think yourself out of picking up the phone?

The other day I called a prospect who had been referred to me. The call went well and I have an appointment to meet with them soon. However, it took me over a week to pick up the phone. Why?

I made so many excuses to myself, like “It’s too early/too late in the day, he’s probably not in.” “I’ll just make a cup of tea first.” (and then do something else). “It’s Monday/Friday, he’s probably really busy.” The fact is I didn’t have a single valid reason not to call, I could only come up with pathetic excuses – and I know I’m not alone in doing this.

When we feel uncomfortable about picking the phone up (either for cold calling or following up) it could be because we:

• Lack in confidence
• Have already decided that the call isn’t going to go well
• Remember that last time we spoke to that person, it went badly

One technique to use is to visualise the call going well - this will help get you into a more confident frame of mind. Also, think back to past achievements and how good you felt when you succeeded at something difficult. You can do this :)

Just as it’s possible to think yourself out of picking up the phone, now you know you can think yourself into it!  Let me know how you get on.

How are you growing your business in 2010?

You’ve probably heard of the three long-established ways we are taught to grow our business.  You can:

-         Raise your prices

-         Sell your product or service to more clients

-         Sell more of your product or service to your existing clients

Method 1 sounds simple but has a few pitfalls to look out for.  Check what your competitors are charging if your product or service is just like theirs - then work out how to do it differently or better.  Or, you could add value so that you become known as a ‘premium’ provider, thus justifying the high price.

You may lose a few clients but, research shows that your ‘best’ clients (the ones who really appreciate you) will stay and pay the higher price.  The defectors will be those who were the hardest to satisfy, so you won’t miss them too much!

Method 2 involves increasing the number of targeted prospects you have and marketing to them as well as to your existing list of prospects.  This is probably the most labour intensive method for you and will take the longest to achieve results.

Method 3 is often overlooked because we don’t want to be ‘pushy’.  Do you know what you’ve sold to whom?  Do your existing clients know what other offerings you have? You need to have this information close to hand.  Someone who has already experienced your service or purchased your product and who has had a good experience is much more likely to want to buy from you again.  Make it easy for them.

There you have three ways that you can grow your business in 2010.  But then, you already knew about them last year didn’t you?  Did they do the trick in 2009?  Possibly not, because they are only half the story......

How can I charge what I’m worth ...

Here’s a question from one of my coaching clients:  How can I charge what I’m worth when everyone seems to want everything free or at a discounted price?

Great question!  Firstly, as I teach in my Selling Skills workshops – never ever discount your prices.  You will feel resentful and your clients won’t value what they buy – and they’ll expect a discount for ever more.  Here are three tips for you to try:

• A much better strategy is to repeat all the benefits they’ll get from working with you (or buying your product); remind them of all the great results which will be more than worth the price you’re asking.
• Offer to take away certain parts of the service (if that’s possible).  Ask them which bits they’d be prepared to forego – that usually works because they don’t want to lose any part at all.  In fact, it’s a good idea to put together your products or services in such a way that you can add or take away elements according to different offers or circumstances.
• Something else to try is to add a bonus that isn’t going to cost you anything – and won’t involve you spending any more of your time.  This will make your client feel they’ve negotiated a good ‘deal’ and you’ll get your asking price.

Plan these responses out before you need to use them so you get comfortable saying them!  Let me know how you get on.

How are you today?

I don’t know about you, but those 4 words are guaranteed to get my back up when uttered by a total stranger on the phone.  In fact, they’d be better off saying “This is a sales call and this is what I’m selling.”  At least that would be genuine and I might not feel the urge to hang up the phone.  Whatever sales training course the ‘how are you today’ people go on, is actually teaching them how to antagonise the very people they want to establish rapport with. 

I’ve been getting even more unsolicited calls than ever recently and, to keep myself amused, I’ve kept a note of all the sales clangers – here are some of them.

 ‘This is just a courtesy call.’ No it isn’t.  What would be courtesy is to ask if this is a good time to talk and if I’m interested in (fill in the blank) before launching into their pitch.

Have you ever noticed that if you interrupt them in full flow, they pause before speaking again?  That’s because they nearly lost the place in their script - and they’re absolutely determined to read the whole darn thing!

Another lesson they’re taught in Sales 101 is to repeat the person’s name a few times, which of course they diligently do, over and over and over again.

And what about the background noise because they’re wearing a headset?  Even if you were interested in listening to their spiel, they’re packed so close together, like battery hens, that all you can hear is their neighbours shouting to try and make themselves heard.

‘We’re contacting businesses in your area.’ Well that makes me feel really special, I don’t think!  At least have the intelligence to find out who you’re calling before you dial.  Nearly every business, large and small, has a web presence nowadays so there’s no excuse for not doing the research.

I’m (usually) polite to sales callers because they have a job to do after all.  But oh how I wish the companies who employ them would teach them better selling techniques!

Have you heard any telesales clangers lately?  Do share!

More Sales: Sell what they want to buy

Do you know what your prospects want?  Do they want to buy your product or service?  Actually they don’t.  But all is not lost!

People don’t wake up in the morning and say “I must get a business coach today!” Of course I wish they did!  But once I realised what it was they wanted, it became much easier to sell my coaching packages.

What they really want are more clients, more time to spend with the family or to build their business to provide financial freedom so they can have more fun!

Your prospects want to buy results, so make sure you‘re selling them. 

Let’s look at another example.  People don’t want to hire a virtual assistant, they want the mailing campaign envelopes to be stuffed and posted, and their drawer full of business cards to be entered onto a database and filed neatly away.

What do you have that your prospects want to buy?