How do the best businesses develop long term sales success? Get people to buy what they need.

Why is it that sales are such a hard thing to develop and drive? It’s as though consumers feel that they are always being ripped off. I believe this is because most managers put an emphasis on sales and profit as opposed to why customers and clients need what they have to offer.

The art of sales is about relationships and developing trust with your client. This, in turn, builds a long term big money clients.

But how do you develop an environment that fosters this kind of behavior from your employees and sales staff?

Change the culture of your business for the better

The way you and your employees perceive your company and the way you project your feelings onto the customer plays an important roll in developing a sales relationship.

For example, pawn shops tend to do better when the products are displayed randomly all over the store under dim lighting while the help is a casually dressed cashier. This gives customers the feeling that it’s a laid back atmosphere where they also believe they could essentially find some sort of amazing deal mixed in with the junk.

On the other end of the spectrum, when you walk into Saks they give you the feeling that everything in their store is precious as if it were diamond encrusted (and sometimes it really is). Everything is in its very own specially designed display center; giving the impression that the products and people who shop in the store are upscale and therefore higher class. Furthermore, the staff is educated about the products they sell, and are expected to adhere to a strict dress code while giving customers the maximum service possible.

Develop a sales strategy based on needs and benefits

Once you have everyone in your company on the same page and you have a strong grasp of the culture of your company you can build a sales plan.

The first step is to sit down with as many people as possible (preferably within your target market) and develop a few lists.

Remember don’t limit your lists to only a few ideas that you feel are the best ones. Write them all down. A bad idea to begin with can end up being a gem with some love and imagination.

There will be four lists to make:
• The benefits of the product
• The problems of the product
• What, when and why the consumer feels they need to buy your product or service
• How does it compare it to your competitor

As far as the list of problems and competitors: think deeply on why these factors keep people from buying from you.

Then find the solution that only your product offers, the very thing that makes it a superior solution to your competitors. You can also come up with a sound reason why the “problem” shouldn’t even be a factor when the consumer is making their buying decision.

Once you have collected the information, you want to choose your product’s key benefit and the most common reason the target market is in need of the product.

Train your staff to know these factors inside and out. This way when they make a presentation or a pitch they’ll highlight the factors that will move the customer to buy while not feeling as though they were conned into it.

The best thing to do next is to write a training manual based on the facts you have accumulated and consistently educate your staff. This education will give them confidence and a more relaxed approach to the sales process and keep them from being too “salesy”.

It will also give your staff a sense of pride and accomplishment because they will know for certain they are selling something beneficial to the client.

New ways to motivate staff

Bonuses for top sales are great but I think we should praise the staff that has the most consistent record of happy clients. Make all staff responsible for getting a review from customers and offer incentives for customer satisfaction and returned reviews.

Focusing your advertising and developing an effective marketing plan

Using the information from the newly written training manual, you now have focus and specific goals in your advertising. You can now effectively move your target market to buy from you.

All you need is good creative and an intuitive marketing plan aimed at showing the consumer, who already needs your product, why they need it.

If you don’t have the experience or resources to do focus groups or marketing plans you can always hire out. Many companies including Assurance Advertising offer these services for much less than what it would cost for you to do it in house.

So go for it; take the extra few hours this week and find out what it is that really sells your product then use it. Your pocket book will thank you!

Managers have the daunting task of trying to stay on top of all day-to-day activities, training staff and servicing clients; developing a good tracking system for your staff can give you the time and the edge necessarily for success.

Keep your staff in the loop

First organize your sales process into steps, if you have not done so already. For example: Step one- meet and greet. Step two- needs assessment; and so on.

Next develop a system of organization that you can be comfortable checking. It’s always good to have instant access from anywhere at any time.

Also remember that sales never end; even when you’re not on the sales floor you are looking for prospects and handing out business cards. Logging these prospects into your system at any time of the day or night can keep you and your staff on top of these prospects.

The next step to good organization is having everyone on the same page. If you are already using a system make sure you train everyone on the specifics of the program as well as how you specifically want them to use it. This type of training is essential to avoid any employee from veering too far from what you expect from them.

In the rare case your system is still analog make sure everyone knows when and how to log their info. If your system is digital make sure pass codes are up-to-date and that all staff receives continuous training.

The best way to incorporate the continuous training is to hold weekly training and progress reporting for your staff.

First, ask everyone to explain where they are in the sales process and how they plan to find more clients.

Next ask if everyone is current on their logging of new prospects. Make sure to check and see if everyone has completed what they said they did.

By making this a weekly habit and making people responsible for their actions you’ll find that after a while your staff will police itself; putting an end to the constant nagging that is the biggest culprit of staff burnout on the sales floor.

Another benefit is that you yourself will have greater access to your staff and will be ready for problems before they come up.

In conclusion; management sales and organization can bring you more money

Give your staff the cutting-edge in sales tracking and organization and you’ll surely see an increase in sales that means bigger paychecks for all.

Remember great businesses are great because of the systems they use to making things efficient. This is one of the fundamental ideas companies like Walmart and Mcdonalds used to get to the top. It’s time to put these ideals to good use, don’t you think?

A great book that goes over this is “The E Myth” by Michael E Gerber. If you haven’t read it, I do highly recommend it. It’s easy to read, fairly short and has some of the finest management and business tips to this day, and the book was first published in 1985!

If you have any questions on types of programs or organizational tools feel free to leave a comment. We are, after all, here to help you learn and make more money!

Have a good plan for your business -Part 4

Planning for a good business location

Avoid the fatal mistake of a bad location

Some years back, when I was opening my first business, I made the near lethal error of leasing a business location without a plan. All I planed for was how much I felt I wanted to pay in rent and who would be my realtor.

Once I got in the location I had to do three times the amount of marketing necessary just to contend with the competition. I spent more on marketing than I would have spent on the extra rent of a better spot on the street I was on.

But you live and you learn so here are some things I learned that I hope you can make use of.

Understanding and matching your needs with a business location.

When planning for a new location keep in mind your business specifications.
• Will you need a warehouse, store front, office…?
• Do the clients come to your location?
• Are your clients upscale or bargain bin (rich or poor)?
• How much space will you need?
• Based on projections, how much income do you expect this location to make?
• Will you need to renovate?
• How much are you prepared to spend for renovation?

Targeting cities for your business

If the clients never come in to see your location, I think it’s ok to get a location that’s as inexpensive as possible. Cut out all extravagant expenditures to save on overhead and start up/renovation costs.

Just don’t skimp on safety, or peace of mind. Make sure you and your staff can be comfortable working there.

If you are a store front selling to the local market, the locals must make the type of income necessary to purchase your products. You’ll sell more authentic Luis Vuitton items in Beverly Hills than you might in Compton.

Some cities have areas specifically for certain types of businesses which can help cut at very least marketing costs.

Take for instance a city with a farmers market or two. A produce company will get exposure to hundreds, if not thousands, of people and for much less in rent than opening a small market near a residential area.

However you should always keep your business mission in mind. In the example of the produce company imagine they want to sell upscale food without the haggling customers associated with farmers markets. Well they’d have to get their own store, in a very specific city or part of town, to target a particular market and income level.

Note that it is always a good idea to visit any prospective locations and spend some time there. Find out if the businesses nearby are beneficial to your company. It’s also a good idea to talk to the neighbors and see what they are like. What they have to say about their experience in the area can save you time on research.

If you want to be even more sure the location gets the type of traffic you’re looking for go there at different times of the day for one week and count traffic.

Once you have decided on the area, size, and amenities of a location find out the going lease rates or property values (and interest rates) if you plan to purchase.

Try and understand what will be included or excluded in your lease agreement. Will the lease include triple net payments? If not what services (like trash or maintenance) will be covered by the Landlord and what is the tenant expected to cover.

Once you get the numbers mapped out, make your cost projections. Include projected utility and finance costs along with regular expected maintenance costs.

Now you’re ready to write out a strong plan that will land you the location your business needs. You now know the “who, what and how much” of the location. The next step is to call a good realtor or agent.

If you need help finding a good business real estate agent don’t hesitate to email us for guidance. We have some excellent resources that may help you get your dream location.

As for the rest of my lovely readers out there in blog-land, we’d love to hear from you! Contact us with any questions or concerns regarding today’s topic.

Best of luck on your business endeavors.

Planning for your products, services, and Intellectual property

In our last entry we started the Organizational Plan section of your business plan. Your assignment was to develop your Business Summary.

Hopefully you now have a good grasp on what your company is, what it does well, and a basic strategy on how you are going to reach your goals.

Today we will begin discussing specific sections of your business to help you develop a strong in-depth organizational plan.

Describing your products and services for a business plan

There are three main categories your business can fall under:
• Distributor (wholesaler) / manufacturer
• Retailer / e-tailor
• Service provider

Manufacturing

As a manufacturer you will need to describe the process of creating the product and explain whether you will need to employ the work of humans, machines, or a combination. Explain the parts that will play in manufacturing your product.

Elaborate on the process including materials you will use, how many steps are involved, how long it takes to manufacture the product, and the amounts you wish to produce.

Don’t forget to describe how you will be getting the materials and machines needed for manufacturing. Find out how available those materials are to you and if the material needs to be shipped to you; figure out the costs and turnaround time.

Retailing/e-tailing

As a retailer you will most likely sell a variety of products so it is important to get organized. Make a list of the products you plan to sell. Describe their usefulness and the specific target markets they are sold to.

Decide on and list any vendors and distributors you plan to use. Once you have chosen the right vendors explain how the products will be shipped to you.

Does the company deliver the product ala drop shipping? Do you have to or want to handle picking up the product? How much will it cost to get the product to you?

Make an analysis describing the way you will handle your inventory. Decide when you plan to refill stock, and the amount of specific products you will need for your inventory.

Find out your wholesale costs for each product then decide on your mark up.

Lastly, if it is your job to ship the products, explain how the customer will buy the product. Will they buy in-store or online?

What will you charge for shipping? How long will it take to ship to the customer? Will you make overnight delivery available?

Providing services

If you provide a service or an entire selection of services, this section is extremely important because as a service provider you will use much of the information you write here in your procedures. Try to be as detailed as you can.

First, list the services you will provide to the customer. Describe how clients receive the service as well as how long these services will take to be distributed.

Second, explain the process that you and your staff must undertake to issue the service to your clients. Describe the amount of staff needed to perform these services.

Third, describe the payment process; for instance, do you offer continuous service with recurring fees? Or perhaps the client pays before or after the job has been started, half now half later, etc…

Developing intellectual property

Mo matter what type of business you are in you must develop and protect any ideas specific to your company using copyrights, patents, fictitious business names, logos, trademarks and procedures.

Unfortunately, the world will live in isn’t perfect and there are some people out there who would like to take advantage of companies through frivolous lawsuits.

Make sure you protect yourself by registering any intellectual property to the right government agencies. Another option, if you are not sure where to register your intellectual property would be to get legal advice from an attorney.

Make sure you get and keep all supporting documents in an easy to locate reference file cabinet. You never know when you might need them.

Please feel free to email us with any questions you may have on this section or contact Assurance Advertising for a consultation.

Join us next time when we talk about location, location, location.
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