Let’s start by reviewing the purpose of the business. I’m sure you’d agree with me that the aim of any business is to generate profit, and lots of it.

Before that can happen, the business needs to have cash flow. Cash flow comes from making sales. Sales come from customers and repeat sales and referrals come from satisfied customers. Profits are generated when overheads and costs are less than the revenue generated from sales.It stands to reason then that in order to make profits, the business needs to get and keep satisfied customers.

Customer generation and retention come as the result of the interaction between your staff and your profit source. Yet typically we don’t share our visions for service standards with our staff; neither do we spend time training them in how to do it well.Yes, OK, we might do some sales training (although my experience is that little is really done) but what about training the accounts staff and the technical staff? They all interact with customers at some time or other and it only takes one negative experience for the status quo to be interrupted.I’ve heard it said “Why train staff; they’ll only leave and go somewhere for more money”.

My perspective is this “Why take the risk of not training and having them stay?” The answer to the question “Just whose job is customer service anyway?” is this: It’s everyone’s.

Let me leave you with this question: Are your profits in the hands of poorly trained staff whose main motivation is their next paycheck, or is it in the hands of motivated, profit-conscious staff who know the game plan and how to achieve it?

Want to know more? Here’s a booklet you can read at your leisure. It’s called “How to Gain and Retain More Customers - essential sales skills for everyone.” It’s a customer service primer. To download your copy, simply subscribe to my 7-part e-course “Why Customers Don’t Buy - and how to fix it” The booklet comes with the first part of the course. Simply complete this form, click “Submit” and watch your inbox for your confirmation request.

A common question asked by self-employed service providers, consultants and coaches is “How much should I charge?”

Let’s take a look at this one…

I always start from the bottom line of the P&L. At the end of the day, you’re in business to make a profit, yet when I look at profit and loss statements, either I don’t see wages or I don’t see profits.

If you’re in business for yourself, the first thing to do is decide how many hours per week you can invoice and how many hours it takes to sell and prepare the work.

A bookkeeper can invoice as many hours per week as they are prepared to work. That may be as many as 40 hours per week and at $55 per hour, that means the weekly revenue is as much as $2,200 per week - but that’s not waht they earn of course. Take GST, Superannuation, PAYG Tax, motor vehicle expenses, depreciation, phone, Internet service, Insurance etc, etc, away and they may be able to draw $600 per week. Not much better that a wage is it?

Life or business caoching is the same. Clients are all too frequently shocked when told the fee is $300 per hour, yet they don’t consider the incurred costs. A coach may be able to sell 20 hours per week; the remaining time is spent in research, driving, customer generation and the day to day management of the business. Yet they still want to take $75,000 pa in wages out of their business. To do that, they must charge $200+ per hour which does look like a lot of money when you do the basic maths but when you do a P&L on the business, it works out at a little more than a wage.

$15,000 per month turnover across 11 months equates to $165,000 pa. Draw $75,000 in wages and pay the usual expenses and your profit is about $7,000.

Do the exercise for yourself; create an Excel spreadsheet and use these basic inputs:

Accounting
Bank fees
Bartercard fees
Bookkeeping
Car
Equipment leases
Insurance
Internet service
Legals
Marketing
Professional Development
Phone
Postage
Printing
Rent
Rep & Maintenance
Stationery
Subscriptions
Superannuation
Venue hire for promotional previews
Wages inc
PAYG
Website creation and fees

Now calculate the monthly and annual costs and compare with your revenue.

Let me ask you, are you charging what you should be?

The Difference Between The Best And The Also-Rans…

As a consultant and trainer in sales and the sales process, I’m often asked the question, “What makes a top-performing salesperson?”

As with most things in life, the answer can be summarised in just two words, Attitude and Activity.

Attitude determines the difference between the best and the rest. The best don’t necessarily know more, they just do more and do it better and more frequently.

Activity is the manifestation of their desire to succeed.

Combined, they become Actitude - activity conducted with a positive attitude.

The 14 characteristics are essential reading for business owners, sales managers and salespeople…

Here are 14 of their characteristics…

1. They focus on their outcomes and don’t get distracted by trivia.

You won’t find them around the coffee pot or water cooler talking weekend sport on Monday morning at 9:30. They’re either on the phone or with a customer. They know and understand that quotas / targets are there to be exceeded, not something to aim for. They focus on achieving their target as early in the month as possible because they know that the bonuses they earn by exceeding them support their lifestyle. That’s why they go overseas on holidays when you go camping or spend a week at the beach!

2. They are determined and persistent.

They maintain a positive attitude and always stay “Up” even when the chips are down. On the occasions when it does go wrong, they bounce back quickly and ask themselves, “What did I learn from this, and how do I prevent it happening again?”

3. They always act “On Purpose”.

Every call, every letter, every visit is conducted for a reason. They know their intended outcome and fall-back position before they make contact with their prospect or customer.

4. They manage their time and guard it zealously because they understand the difference between Urgent and Important.

Important is their priority; achieving quota by providing efficient and exemplarily service to their customers. They recognise that Urgent is someone else’s priority thrust upon them. They treat other people’s time with respect. Always on time for meetings and appointments, they don’t disrupt proceedings with irrelevancies or idle chatter.

5. They perform all tasks quickly and efficiently in the minimum of time, always working to pre-agreed timelines.

It’s true that the tasks you have to perform can easily expand to fill the time available to complete them. It’s also true that if you want to get something done, give it to a busy person. It’s easy for a salesperson to become bogged down in detail and paperwork. Often a cluttered desk is a display of someone trying to look busy, or at least busier than they are. The clutter acts as a block to prevent new work responsibilities and ideas entering the workspace.

6. They establish clear communication rules.

Their peers and customers know how to contact them and the need to keep messages and information exchange short and precise. Their customers know that their calls will always be returned and that phone tag is unnecessary. Likewise, top performers treat email as efficiently as they do phone calls. Their golden rule for both written and verbal communication is, “Less is More.” When handling enquiries and responses, they do not get hung up on emotion, they focus on logic.

7. They are effective networkers.

They know that when networking, they’re not selling, merely establishing and maintaining relationships with others who support them with information. When networking, they are active listeners rather than active talkers. Their positioning is that of trusted friend instead of active promoter. 

8. They always keep their eyes and ears open, constantly looking out for opportunities.

They notice adverts for Companies they could become suppliers or partners to. They write down prospect’s phone numbers from their ads, vehicles and street signage and make contact with them. They are always prospecting and can never have enough prospects in their pipeline.

9. They are pro-active, especially when things are slow.

Instead of moaning and complaining that sales are down, they get on the phone and call past and existing customers as well as prospects to seek business or information.

10. They provide their upline managers with detailed, accurate and timely sales reports.

Successful sales don’t mask the truth of their calls with meaningless comments. Instead, they paint an accurate picture of the conversation, the outcome and the next step they intend to take. This means their managers can identify marketplace trends and issues without needing to waste face-to-face time with their team or with customers.

11. They never waste customers’ time with needless, irrelevant product pitches.

Indeed, they always take the time to understand their customer and their business needs before even thinking about presenting their offering as a solution or opportunity. Their mantra when presenting their product or service is, “Prescription without diagnosis is malpractice.”

12. They negotiate from “No” instead of from Win: Win.

Always prepared to walk away from a bad deal or a poor quality customer, the most efficient of salespeople expect the sale to be made on 100% agreeable terms rather than a compromise.

13. They look, act, think and behave as someone their customers will look to for advise.

They dress well, are careful of their personal habits, and proud to represent their Company.

14. They invest in their own education.

Every highly successful salesperson has their own library of quality self-development materials and invests time improving themselves, their skills and their product knowledge. They know that their attitude delivers their results and focus on the positives. They diligently attend sales training whenever offered and pay attention to new and different techniques and processes. They constantly seek to improve their knowledge of their own products and industry.

Do you think you have what it takes to be a top sales performer?

Take another look at this list and ask yourself the question, “How good am I really?”

If you’re not achieving the results you should be, chances are that the answer you’re looking for lies somewhere in this list.

If you’re a sales manager or an employer, and your sales people don’t exhibit the characteristics outlined in this list, we need to talk! Call me for an obligation-free discussion about what we can do to help.

Here’s the number: 07 3112 5033.

James.

With 2007 rapidly concluding, it’s really time to consider what your marketing efforts will be into the New Year; which begs the question, have you written your 2008 marketing plan yet?

No? Maybe it’s because you’re stuck for ideas? Chances are you’re relying on only one or two different lead generation methods right now. And that can be dangerous because it’s unstable, like a table with only two legs! To be solid and stable enough for you to use reliably, a table really needs four legs. And it’s the same with your marketing. If you only rely on say, networking and referrals, if one or both dry up, you’re stuck. So the more you have, the better.

Not sure what you can do? Ok, well here are a few ideas to get you started…

Consider these ideas…

Postcards
Google Adwords
Search engine optimisation
Article distribution
Press releases
Promotional seminars
Joint ventures
Endorsed mailings
A new referral program
Printed newsletters
Increased networking activity
Telemarketing

You need some help with some or all of these?

Ok, here’s an idea for you. For just $495 inc GST, we will provide you with a 2 hour planning session to clarify your 2008 marketing plan. We’ll discuss your target market, offers. sales aspirations and guide you to a simple 12-point plan you can immediately start to implement. If you’re in SE Qld, we’ll meet or, if you’re interstate, we’ll do it by phone (call charges to your account.)

Interested? Here’s what to do: Simply call me on 07 3344 6566 and leave your contact details. I’ll call you and set up the time and place and we’ll get it done.

Let’s make 2008 your best year ever!

Cheers,

James.