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Are You a Taco Stand?

August 5, 2009 1 Comment

Someone shared a hysterical video on Twitter recently about negotiating fees with clients. The facial expressions alone are priceless.

But the words and sentiment behind the comedy–frighteningly familiar!

Here it is if you haven’t seen it–then keep reading to see how you can avoid situations like this in the future!

I’ve written a whole series on pricing strategies for small businesses to help avoid situations like these.

But when you’re faced with a ridiculous request to reduce your fee, the best strategy is to follow Nancy Reagan’s advice and “Just say no…”

  • No, you are not a taco stand
  • No, you’re not interested in any “opportunity” where they pay you a fraction of your fee and and “make it up to you” later
  • No, you won’t work for free until they decide if they like the results

I could share some doozies about the crazy proposals I’ve heard over 5+ years of being in business, but suffice to say they all shared one common theme…the only “opportunity” was for the prospect to get something for nearly nothing.

Good Copy Can Help You Avoid Negotiating Fees

But you can prevent inane conversations like these by learning how to maximize the perception of the value you provide…and communicate it in everything you do. Here are a few ways to do that…

Dare to be different. In our corporate white-washed world, personality can be a BIG differentiator because after all, people buy from people and not companies.

Dan Kennedy is a great example–whether you like him or not, his tough-love “tell it like it is” style attracts legions of members to “Planet Dan” who buy nearly everything he puts out. That kind of loyalty doesn’t come from merely delivering good products and services.

Specialize in a market. It’s simple, if you specialize in web sites for lawyers, it’s silly for any lawyer NOT to choose you–because you already have a good sense of what they’ll need as well as what works and doesn’t work for their market. That will save them both time and money, plus make the chore (in their eyes) of getting a new website much easier.

Compare apples to grapefruit. What could it cost them to get the same type of results? For example, you could point out that your teleseminar series is a fraction of the cost of a live workshop or working with you one-on-one. You can also compare your fees to what the gurus’ charge to do the same thing.

Either way, there’s certainly something more expensive you can use as a benchmark to highlight how reasonable the price tag is for the value they’re getting.

Inundate them with proof. What you say you can do for them is MUCH more believable when other people are saying it for you as well. That’s why testimonials and case studies are such powerful persuaders. Because the more confident prospects feel that they’ll get great results, the less prickly they are about.

Highlight your personal experience. If you’re a restaurant owner trying to drum up more business, who would you trust more–the consultant who’s been in the greasy trenches of owning a restaurant before or someone who hasn’t?

If you have experience in your market, be sure to tell your story on every marketing piece, every teleseminar, every everything you do–even if you think they’ve heard it before (you’d be surprised how quickly people forget)–because it tremendously ups the appeal and value of working with you.

Connect the dots for them. Most websites barely scratch the surface when it comes to talking about the benefits clients will receive. Don’t assume they’ll make the connection on their own–I can promise you they won’t!

Whenever you talk about what you offer or what they’ll get, keep mentally adding “which means that” to the end of the sentence until you get to the essence of how it will ultimately improve their life or business. Because those ultimate benefits are what they’re really hoping to achieve…and are very willing to pay for.

Taking the time now to brainstorm about the full value of what you provide and how to weave it throughout everything you do will go a long way in keeping prospects from negotiating fees and mistaking you for a  taco stand later.

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When They Want Something for Nothing & Filet for Free

July 14, 2009 7 Comments

If you’ve ever gotten push-back from prospects about your prices, you’re going to LOVE this video.

There are too many good lines for me to pick a favorite.

But seriously, it underscores how important it is to effectively communicate the value of what you do so you can avoid these types of situations!

By the way, if you like this you may like the follow-up post Are You a Taco Stand? which has the video plus some thoughts on how not to be, well, a taco stand!

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How to Communicate Difficult Information

May 9, 2009 Leave a Comment

The fire in North Myrtle Beach on April 23 (which actually is still going at this point) struck awful close to home for me as my parents live in Barefoot, where most of the damage took place.

I spent all day glued to the fire & rescue scanner via the internet to find out if their home would be spared. Thankfully, their home was although many neighbors on the same street weren’t so lucky.

Hopefully, we’ll never have to share that kind of devastating news. But I noticed a few important lessons to consider anytime we do have to deliver difficult news to a client or someone we work with.

Deliver the News as Soon as Possible.
Residents affected by the wildfires are understandably angry about how poorly local officials kept them informed. Residents were told on the evening news the fire was contained a “safe” distance away.

So it was a complete shock to awaken to either a house on fire or a neighbor pounding on the door and having to evacuate with no time to grab even their shoes.

Local police didn’t send a warning voicemail until 5:30AM—long after most had already been forced out. Officials claim there wasn’t time to notify anyone because it only took 4 ½ minutes for the fire to jump the road and start burning houses. (Um, does that sound like a “safe” distance to you?)

So, don’t put off bad news. Many of us do that, hoping that something will change at the last moment. I admit, I’ve done it myself.

But while it’s rarely a life-and-death situation such as this, waiting only makes the client’s situation worse by limiting their options or forcing them to disappoint someone else. They’ll be much less annoyed if they have a little time to figure out a plan B.

First, Do No Offense.
NMB Mayor Marilyn Hatley gave a press conference Thursday afternoon at one of the shelters to reveal the damage numbers that had just been released. But before ending it she said added a note for tourists, “Certainly come on to the Grand Strand area and enjoy yourself.”

As you can imagine, that ruffled a few feathers and the media took several swipes at her for it.

Yes, they need those tourism dollars right now. But she could have been much more tactful and subtle about it—or waited to release a written statement to the press later.

The lesson here–always plan what you say, and get a second opinion before you say it. When you know what you mean, you can’t hear how easily your words can be misconstrued.

Manage Expectations.
This is the one area I’d give NMB officials high marks. They did keep people updated throughout the day as to the number of homes affected. But the smartest move was releasing a map showing the amount of structural damage plot by plot just before the late night news.

Few of the affected residents were actually staying in the shelters (pets weren’t allowed), so most could grieve their loss or let out a huge sigh of relief in private. It also reduced the shock-factor a bit by giving them a good idea of what to expect when they finally saw their home the next day.

It’s not always easy to set boundaries on your availability or realistic expectations about potential outcomes. Those conversations can be a challenge as well. But managing client expectations upfront will go a long way in reducing friction and preventing even more difficult conversations later.

After all, no one minds if you exceed expectations. But they sure do when you don’t.

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Referrals for the Asking–Just Do It!

January 20, 2009 Leave a Comment

Who wouldn’t love to have a business 100% based on referrals? But it’s not going to happen by magic. You have to make referrals a consistent part of your marketing strategy.

Obviously, the best way to get referrals is to ask. But if you’re like me, the words can get stuck in the throat. So let’s first talk about making the asking easier.

Get to the point. The simple, direct way is to say something like, “I’ve enjoyed working with you and would love to help any other [insert client type] you know get more clients as well. Is there anyone you think I should talk to?”

DON’T: Ask for referrals in your first meeting. Most people will want to see how it turns out first. You could also end up coming across as too eager to “bag the next one” rather than serve the clients you do have.

DO: Ask for referrals when you’re wrapping up the project, or before then if the opportunity arises. The longer it’s been since the project finish, the further from their top-of-mind awareness you’ll be.

Start with them. If they’re a fellow business owner, you could also approach with something like, “I’d love to know more about what kind of clients you’re looking for, in case I meet someone I can refer to you.” Most likely, they’ll reply and ask you the same.

Other tips for getting referrals….

  • Givers gain, so don’t hesitate to give a referral to your client first.
  • If you use evaluation forms or send out newsletters, you could also include a box with a short paragraph to periodically remind readers that your business grows through referrals and you appreciate any they can send your way.

Should you use incentives?
Coupons or certificates for clients to pass along can work well but they feel like they’re giving their friend something of value. (You can also track where the referral came from more easily). But to be most effective, keep these things in mind:

  • Make sure the incentive is something the prospect can’t get just anywhere. A client is less likely to pass along a free first visit certificate if she knows anyone can print one from your website.
  • Include “no strings attached” on your message accompanying the incentive to increase response.

Bingo! Someone’s got a referral for you…

The way you handle referrals is important as well, if someone has a name to give you…

Ask if they’ll introduce you. Otherwise, they’re just giving you a lead and you’re essentially going to be making a cold call to that person.

Immediately thank the referrer. Seems obvious but far too few do it. Even if they give you a casual, “I told so and so to call you,” it warrants at least an email thank you. But mailed notes are nicer.

Keep the referrer posted. Always let the referrer know what happens and thank them again. It’s only natural they’re curious to know if it panned out. And even if the referral DIDN’T become a client–thank them again. Some people have a weird idea that you only need to thank a referrer when it works out.

Grey areas…
But what if someone tells you they passed your name along and that person never contacts you? It’s a little awkward to keep them posted when all you have to say is “Your referral never called.”

Personally, I prefer to include a “Thank you again for the referral–I’ll be sure to let you know if he contacts me” with some other communication I’m sending them. It softens the message, they’re not left wondering what happened, and hopefully they’re encouraged to keep referring people to you!

What do you think?

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How to Build Business with Print Newsletters

January 5, 2009 Leave a Comment

At last month’s Triangle Glazer-Kennedy Inner Circle meeting, IBA Ben Thole talked about how print newsletters can be a highly effective small business marketing strategy.

Print newsletters are actually back in a big way because they allow you to reach people who may be missing your email newsletter or to simply reach them in a different medium. Print newsletters also have a higher perceived value and a longer shelf life.

4 reasons to start a print newsletter:

  1. Build relationships. People buy from those they know, like and trust so make sure to include a little personal information and personality along with the business tips.
  2. Cross-sell or up-sell your products and services. You’d be surprised how often clients don’t know that you offer anything besides what they offer. This gives you a chance to educate them about that.
  3. Encourage referrals. It’s easy to include a reminder that you appreciate referrals or run special promotions to encourage more of them.
  4. Provide value for your prospects and clients. (Depending on who you’re mailing too.) People love getting helpful information.

So now that you’re all revved up and ready to fire up that Publisher program that came with Microsoft Office Small Business (actually MS Word 2007 could do it too), how do you maximize your results?

Here are Ben’s tips for creating newsletters that boost your bottom-line:

  1. Tell them what else you do. Like I said, they’re probably clueless that you offer anything other than what they buy.
  2. Tell them what’s new. Not just new offerings, but new staff, new happenings. They’ll feel more a part of your business.
  3. It’s not about you. Guys, think of it like marriage–other than your personal note or update–what they want is FAR more important than what you want. Keep that in mind as you decide what to include and how you write it.
  4. Your back page is prime real estate. Your back page is the page everyone will automatically see (especially if you fold your newsletter) because Mr. Postman is going to deliver it mailing label-side up. So use the other half or two-thirds wisely!
  5. Frequency, frequency, frequency. A random when-I-get-my-act-together newsletter just says, “I suck at time management.” On the other hand, if they see that newsletter in their mailbox like clockwork, they’ll assume you’re dependable in everything else you do as well. PLUS, it keeps you on the short list of people they’ll think about when they need your services.

Worried about the time it’ll take? One solution he suggested is to join forces with another business owner. You run an article one month, then the next your friend runs it and you run his. Half the work, double the exposure. There are also services that will create, print and mail it all for you.

Next meeting is January 22, more info at www.trianglebusinessleaders.com.


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Finding Clients that Fit Like a Glove

December 30, 2008 1 Comment

Clients are a lot like pants.

  • Some seem fine in the store but then constantly rub you the wrong way until you can’t wait to rip them off.
  • Some require a lot of fussing and tugging—and they never stay comfortable for long.
  • Many fit fine, there’s just nothing particularly special about them.
  • And then there are your favorites…a few that seem to be tailor-made just for you. You’re always happy to put them on because you know both of you will end up looking good.

Getting dressed would certainly be easier if you had a closet full of the made-for-you pants…And so would your business.

The trick is finding out who those perfect-fit clients are. Here’s one way to do it:

1. Print out your client list—the ones who have actually hired you to work with them. (Skip any who have just bought products from you.) Include past clients too.

2. Rate your clients. Jot down a few positives and negatives that immediately come to mind by the client’s name. Consider things like:

  • Were they easy to work with? 
  • Did they know what they want from the start, or change their mind a lot?
  • Were they knowledgeable or need a lot of educating?
  • Did you look forward to doing the actual work? Why or why not?
  • Were they enthusiastic about your work?
  • Did they follow-through (if relevant)?
  • Did they get good results?
  • Did you work with one person? A team?
  • Did they balk at your estimate? Pay promptly?
  • Did they volunteer a testimonial or refer others to you?
  • Are there ongoing opportunities to work with them? Or just a one-off project?
  • How would you feel if they called today and had more work for you?

3. Pick your ideal client. Maybe none of your clients really get you jazzed. Then who would you LOVE to work with? Pick a specific person you know of and jot down all the reasons why.

4. Now analyze your notes. What consistently came up in the negative or positive columns? Overall, which projects and clients did you like the best? Why?

Which of those traits could be easily found in others? Do people in their industry or profession need (and want) your services? Or people with similar life experiences (e.g. working moms, people nearing retirement or who practice yoga)?

Finally, once you’ve identified some concrete traits to look for then get busy finding more clients just like them…and soon you’ll be looking at a closet full of clients that fit like a glove!

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Thank Everyone Who Keeps You in Business

November 26, 2008 3 Comments

Given the state of the economy these days, it’s easy to get wrapped up in chasing down new business. But showing your appreciation for those who contributed to your current success is JUST as important–if not more so. After all, happy customers are your best prospects and your best potential sources of referrals. 

You should definitely be showing your appreciation to:

Customers. Nearly 70% of the time customers leave a business it’s because they don’t feel appreciated or valued, according to a study by the Technical Assistance Research Project. Obviously, you should send a thank you right after a client comes on board (which is also a good way to stave off buyer’s remorse), but also keep thanking them–at least once a year.

Referrers.  If you don’t thank people who send you qualified prospects–whether or not they end up becoming your client–they’re not going to keep doing it very long.  Consider a special thank you for top affiliates and joint venture partners as well. 

Your Team–Real or Virtual. It’s simple–anyone who makes your business life easier is worthy of a thank you. This goes for social media friends and others who go out of their way to help you as well.

Prospects. Thank those who have shown serious interest in working with you.  Even if they choose to go a different route at the moment, they’ll remember your gesture. And you never know what they’ll need or who they’ll meet down the road.

How to Say Thank You

1. A handwritten “thank-you” note always makes a powerfully positive impression. Even if your handwriting could be more accurately called chicken scratch, the fact that you took the time to scribble a note says “You’re important to me” in this email-addicted age.

But write it yourself (or if you must, have someone else write it out and address it for you). Skip the online greeting-cards-that-really don’t -look- real services. Put a stack of notecards in your bag, your car or even by the sofa and you can easily find the time to do it. Three to five sentences–that’s all it takes:

  •  
    • Say why you’re thanking them. If they gave a reason for why they chose you, it’s good to reaffirm that. But no sales pitch!
    • Refer to a personal detail you noticed or comment they made. It’s flattering to know someone actually was paying attention.
    • Mention something about the future–say, you look forward to working with them, seeing them at an upcoming event, or returning the favor at some point. 
    • Include your business card so they have your full contact information handy if they have a question or want to contact you again.

2. Rewards and bonuses can wow your customers and affiliates with little upfront cost. Free information products, significant limited-time discounts, or exclusive special services are just a few ways to recognize their loyalty.

3. Gifts of gratitude say “thanks!” to those who really deserve the rock-star treatment.  Avoid the typical Harry and David or fruit basket route and go thoughtful, by sending a favorite book from Amazon. Choose something fun such as the awesome cookies and brownies from Dancing Deer Bakery.  Go for extraordinary with a nice desk accessory or portfolio from Levenger (always beautifully boxed). Or opt for exquisite, with a box of artful chocolate from Artisan Confections.

Whether you believe in the law of attraction, good karma, or just good manners–saying thanks will definitely be a rewarding experience.

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How to Avoid the Clients You’re Going to Regret

October 7, 2008 Leave a Comment

Knowing who NOT to take on as a client is a vital part of keeping you sane—and keeping your business healthy. Nightmare clients inevitably end up sucking your time and energy away from other projects, and can cost you more than you make as well. Here are some ways to recognize them before you sign on the dotted line:

Warning Sign…He “forgets” about your appointment or reschedules it several times.

Potential Hazard…No respect for your time or schedule—or the project may just not be that important to him. Either way, it’s going to be like pulling teeth to get needed items and approvals (or even payment) from him. And of course, you’ll be the one scrambling to make up for the lost time. 

Warning Sign…She keeps you much longer than you planned.

Potential Hazard…She may think the sun revolves around her or she may need a lot of handholding. It’s one thing if your intial conversation runs over time because you’re both enjoying the conversation so much. But if she just keeps oblivously chattering away or is so disorganized that she has to keep stopping to hunt for things—proceed with caution.  You may find yoursel f in this position a lot.

Warning Sign…”I’m a good [whatever you do], I just don’t have time to do it.”

Potential Hazard…Hello, backseat driver. Be wary of know-it-all amateurs because they may a) question every single thing you do or b) be offended if you don’t take their suggestions. Proceed with caution.

Warning Sign…She badmouths your predecessors.

Potential Hazard…She’s the perfect PITA (pain in the arse) client. It’s a good idea to ask if the prospect has hired others to similar work before and gauge the response. If she sounds off with a litany of complaints about “all the times” she’s been burned in the past—and it’s always the other person’s fault—run. You’re almost certain to end up on that list.

Warning Sign…He asks you to reduce your price either “just this once” to try you out or because he promises to give you a lot of future business.

Potential Hazard…You’re being suckered. “Just this once” is rarely ever that. As for the promise of future work, even if he’s not trying to lie to you, remember that he may not remain in control of that decision—people leave and responsibilities get shifted all the time. But it’s usually just a gimmick to get a discount. When it’s time for the next project, he’ll just move on to the next person. Save yourself the trouble.

Warning Sign…She’s changing the game as you go along.

Potential Hazard…You’re going to get “screwed.” It’s sad to even have to include this, but if someone wrangles hard about the cost, sends you less of a deposit than you agreed upon, “forgets” to send the contract back or pulls some similar stunt to change the terms you agreed to—cut your losses and move on. It will only get worse when you try to collect final payment.

Warning Sign…You have a “bad feeling” about the prospect

Potential Hazard…Your intuition is right! I’m dealing with my first deadbeat and kicking myself because I had a bad feeling at the beginning and I ignored it. I researched him online and didn’t find anything bad so I took the deposit and went to work.  And I haven’t seen a dime since.

Are there any warning signs I missed? Feel free to post them on the blog.

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Days 13-16 Client Crunch part 2

August 22, 2008 2 Comments

Ok, ok, I fell down on the job again with posting. I was in the midst of another client project crunch. This time though, I knew it would be tough to make their deadline given the extent of the project and I said yes anyway.  That will not be happening again!

There are good and bad sides of having a former employer as a client and one of the downsides is they often forget you’re not working exclusively for them anymore when it comes to time expectations. But it’s my job to remind them and request more time.

But…

  • My ezine did go out on time and I sent a solo blast yesterday as well for my ebook.
  • I also firmed up details to start promoting a joint teleseminar on Sept. 3, which I’ll post about separately.
  • And I did get feedback from a Facebook friend who’s participating in that Private JV Club that they seem to still be working out some kinks and I may be better off waiting a month or so.

Although a bunch of invoices went out last weekend and I have a marketing strategy session set up now for next week, none of that income has come in yet so the daily income total was $0 each day. But I’ve reached 1/3 of my monthly goal at this point!

I’d love to hear from others (especially writers) how you handle getting that final payment. Deposits–which are required to start the work–are paid promptly. After the project’s over though, that invoice seems to hang out for awhile before it gets paid. Web designers have it easier, because they can keep the site from going live until the invoice is paid. But writers don’t have that kind of leverage–I’m certainly not going to send someone the final bill before they see the first draft. Any suggestions?

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