The Budget Step

The second, and most often skipped step in the selling process  is the BUDGET.  As soon as the customer realizes that they have a NEED, they start worrying on how much the solution will cost.  And yet, they hesitate to breach this topic because people are reluctant to talk about money.

In the Guerrilla Selling Seminar, I ask a volunteer:

Orvel Ray:  “Bob. How much money did you earn last year?”

Bob:  “Well, let’s see, if you mean after taxes, then it would be somewhere in the range of, oh, I don’t know exactly, but,. . . uhmmm … something like. . .”

Orvel Ray:  “That’s OK Bob. What kind of underwear are you wearing right now?  Boxers or briefs?”

Bob: “Briefs.”

Orvel Ray:  “Well Bob, would you agree that we have just effectively demonstrated that you would rather discuss your underwear in public than to talk about money.”

This game ALWAYS produces the same response.

While more pronounced in some cultures, this resistance to discussing money is universal.  And salespeople are not immune.  If you ask, point blank, “What’s the price?” most will stutter, stall, and stumble rather than say it out loud.  Guerrillas inoculate this resistance by bringing up the topic of price, and establishing a budget based on the potential value of investing in their product or service.

Once you’ve identified their NEED, you can ask, “How much would it be worth if we could solve this problem?” and, “How much will it cost if things remain the same?”  It’s important to ask both of these questions, because about half your customers will be motivated Toward some future outcome or reward, while others are motivated Away From the threat of some cost or loss.  (People who are Toward motivated buy lottery tickets.  People who are Away From motivated buy life insurance.)  Guerrillas are adept at selling both ways.

Generally people are more motivated to keep what they have than to acquire something new, so another very useful question to determine their budget is, “What have you used in the past?”

Budget Rangefinder

It may be easier to start out by establishing a range, and then narrowing down the budget.

Guerrilla: “What kind of budget do you have in mind for this project, in round numbers?”

Customer: “Somewhere between $1,000 and $2,000.”

Guerrilla: “Closer to $1,000 or closer to $2,000?”

Customer: “Closer to two.”

Guerrilla: “How close?”

Once you have gotten a specific amount, it will be easy to position your product as a good investment, compared to the alternatives, and then focus on benefits.

It’s also useful to ask, “What alternatives have you considered?”  Don’t be naive.  They are talking to your competitors, and if you know their pricing (and you should) then you will know how competitive your offering may be.  Remember that doing nothing may be an attractive option.

Verify their ability to pay by asking, “How do you plan to finance it?” If they say, “I’ll pay cash,” that’s a very strong buying signal.  If you can accept installments, or arrange financing for them, you’ve gained an advantage.

Be prepared to offer strong rationales for the price you charge.  Is it made from more expensive materials?  Is it built to tighter tolerances?  Does it have a longer useful life-span?  Is it labor-intensive?  Does it require special handling?  Is it more environmentally friendly, organic, or Fair Trade?  Does it require less maintenance, or have a higher salvage or re-sale value?

Cost of the Alternative

Recently, I did some sales training for a bearing services company in Houston, and as part of my research, visited one of their customers, a factory that makes cake mix.  This factory is nearly fully automated.  Tanker trucks loaded with flower pull up at one end of the building. Hoses and blowers move the flower into storage hoppers.  Augers measure and feed it, together with all the other ingredients, into big mixing bins.  Huge mixers churn it into the final product. At the other end of the building, machines fold and glue boxes and send them along a conveyer.  In the middle, the product is measured into a plastic liner, sealed, trimmed, slipped into a box, closed, glued, stacked in cartons and then piled on pallets, ready to ship.

This machinery is made up of dozens of motors and servos and thousands of bearings.  And if just one bearing fails, the whole line grinds to a halt.  It costs this manufacturer $90,000.00 (ninety thousand dollars) an hour to shut down, so Mean Time Between Failures is much more important than price. To buy a cheap replacement, or save a few cents on lubricant, simply isn’t economical.  In fact, they want to buy the most expensive, highest quality bearings and lubricants available, and they want them backed up by a technician who is available 24 hours a day!

By focusing on the value rather than selling on price, the guerrilla changes the arena of competition, and virtually eliminates cheaper vendors from the running.  This actually makes it easier to sell at higher prices.

Most salespeople, when challenged about their price, will simply cave.  And nearly two thirds of salespeople will volunteer to cut their price, without being asked, because they do not believe in the value of their product or service.  That’s just stupid.

A simple way to gain confidence when quoting prices is to double your price, whatever it is, then practice roll-playing with a colleague as you justify why they should pay that much.  Then, when you roll the price back for a real customer, it will feel like a bargain.

Stop Waving a White Flag 

As soon as you say, “Our normal price is . . .”, or “Our list price is . . .” then you have already surrendered to the negotiation.  Quote your price in the same tone as if you were telling the time.

“What time is it?”

“Two twenty-five.”

What’s your price?”

“Two twenty-five.”  No hesitation.  No qualifiers.  No equivocating.

One exception: if you put the word “only” in front of any amount, it sounds like a better deal.  “I bet you could buy the Nairobi Hilton Hotel for only $300 million.”

The About Face

The customer may balk, and say, “Your price is too high.”  Don’t fall into this trap.

Recognize that you do not know what this customer means.  It could mean that he has a cheaper quote from a competitor, or it could mean he can’t afford it, or perhaps he’s just testing to see if the price is negotiable. You don’t know, so don’t guess.   Before you go any farther, ask, “Too high? (pause) When you say ‘too high’, what do you mean; too high relative to what?”

One of my favorite responses is, “We have no argument with those who sell for less.  They know best what their products and service are worth.”

In future installments of this series, we’ll explore each of the steps of “NaB & CaPTuRe” in more detail, and perhaps double or even quadruple your sales.

(This article is part of a series published by Marketing Africa magazine.)

In the last issue, we discussed how Guerrilla Selling maps the steps customers take when making a purchase decision. In the next six installments, we’ll use the consonants in the words “NaB & CaPTuRe” to help you remember those steps: Need, Budget, Conviction, Presentation, Transaction, Reward.

By understanding the psychology of this process, then matching your strategy to each customer, you can make your offering practically irresistible.

The NEED Step

The first, and most often overlooked, is the Need Step. Find people who need your product and they’ll be easy to sell. Selling something they don’t need is much harder. So understanding each prospect’s individual needs is the most critical step.

Instead of selling features-and-benefits, position your offering as the solution to a problem. It’s easier to sell the solution to a problem than it is to sell an advantage or a benefit. You can discover new sales opportunities by asking, “What PROBLEM does my offering solve?” Write a simple elevator pitch by completing the sentence, “We solve the problem of _______.” For example, at The Guerrilla Group, “we solve the problem of selling against low-priced competition.”

Look for prospects who are likely to experience that problem. When a stranger who asks, “What do you do?” you can answer, “We solve the problem of:

•  ”. . .giving your products a lift to market,” (air freight), or
•  ”. . .employees who call in sick (temporary help services), or
•  ” . . .tire-busting potholes (off-road tires designed specifically for matatus).

Anyone who says, “That’s interesting, tell me more?” is a hot prospect.

Things Every Customer Needs

Sometimes the problem you can solve has nothing to do with your product. Think about some of the basic things that every buyer needs from their supply chain:

• Two or more vendors. Offer to be their second choice. Even if you’re more expensive, when their primary supplier can’t deliver, you can step in.
• Technical and engineering help. Offer advice on how they can improve. Do on-site training for end-users on how to get the most benefit from your offering.
•  On-time delivery. Manufacturers want vendors to reduce stocking and inventory costs by delivering just-in-time.
• Minimize downtime. Shutting down a single machine can cost thousands of dollars an hour. If your offering helps them keep their systems up and running, you have an edge.
• Reduce service and repair costs. Can you offer longer product life-cycles, faster, easier repairs, or place a stock of replacement parts on-site.
• Avoid over-engineering the solution. Sometimes a less-expensive, lower-quality product is actually a better option.
• Buy what they’ve been told to buy. If engineering has specified a particular component or part number, ask them to certify yours as an equivalent.
• Timely and accurate billing. Nobody wants to argue with accounting.
• Predictability and consistency. Even minor variations can wreak havoc in their assembly line, computer systems, or testing equipment.
• Responsive, courteous and timely action by vendors when they have questions or problems. Give them your personal mobile number. Gain a competitive edge by being available, 24/7.
• They need to look good to their boss. Help your customers document the savings, the increase in productivity, the boost in their sales, or other metrics that they can brag about.

Ask, “What have you used in the past?” and, “What problems have you experienced with that?” Then look for ways to solve those problems.

Criteria Words

Another very powerful weapon for determining customer needs is Criteria Words. Your customer is going to base their decision on a specific set of criteria, and if you can determine what those criteria are, and then match those to your offering, they will buy from you every time.

The difficulty is this; I’m sure you have 100 good reasons why they should buy from you, but your customer’s decision will be based on the three or four factors that they feel are most important. If you get three of them right, but miss just one, it will kill the deal. Making this even more difficult, the decision criteria will vary from one account to another.

The good news is that the customer will always tell you exactly which criteria are most important, if you ask the right questions, listen carefully to the answers, and then use those exact words in your presentation.

Effective questions include:

• “What are you using now?”
• “What do you like most about it?” and
• “What do you like least about it?”

Listen carefully, and write down their answers, verbatim. Then adjust your presentation to cover those particular criteria. If you can deliver the things they liked most, while fixing the things they liked least, then it’s easy for your prospect to switch vendors.

To use criteria words with even greater precision and impact, ask the question, “What are you looking for in a _________?” or “What do you want ________ to do for you?”

For example, a customer  shopping for paint might say, “I need an exterior paint that is easy to apply, has vibrant color, and won’t fade.”

They’ve given you three criteria words: “easy,” “vibrant color” and “fade.” The guerrilla strategy is to use those same words when describing your product.
You might say, “We can make this really easy for you. Crown-Berger makes the most vibrant line of paints that you can buy. And while any color will eventually fade over time, our exterior formulation contains special UV filters, so those colors will stay vibrant for years, even under intense African sun.

Notice that I did NOT talk about “long-lasting” or “weather proof” or even mention that “Crown-Berger is Africa’s leading paint manufacturer.” These may all be important features, but not for this customer. On the other hand, if you simply address their criteria, and ignore everything else, you’ve made it much easier for the customer to accept, understand, and buy your proposition. (BTW, you can also incorporate these keywords into your web site to improve your findability on the Internet.)

But beware! If you use your own words to describe your product, the customer may, or may not, equate those words with their criteria. Notice that I said “any color will eventually fade,” not “any paint will eventually fade.” When your customer hears their exact criteria words, they automatically attach their intended meaning. So while it’s not important how you incorporate them into your presentation, it is important that you use their exact words.

Also notice that we didn’t promise the color would last forever. That would be unethical. But by including this customer’s criteria word, we’ve per-empted this potential objection by promising that the color will remain vibrant.

The beauty of using criteria words is that, no matter how the motivations may vary from customer to customer, you can always adapt easily and instantly to give them exactly what they NEED from you.

In future installments of this series, we’ll explore each of these steps in more detail, and perhaps double or even quadruple your sales.

(This article is part of a series published by Marketing Africa magazine.)

That was early spring of 1963. We lived in a little stick house in the burbs, between the oil refinery and the stockyards.  I was eldest of three children of a single mother who worked nights in a rubber factory.  And I had long since given up believing that Santa would ever bring a bicycle.

Soon a box arrived from The American Seed Company, full of little packets of garden seeds.  The instructions said I was to go door-to-door and sell them for 25¢ cents a pack (even though you could by the same seeds at the corner store for 10¢).  But I was 9 years old. What did I know?

There were all these rules:  ALWAYS walk on the sidewalk; NEVER walk on the grass.  ALWAYS step back after you ring the doorbell.  ALWAYS say, “Yes ma’am,” “No ma’am,” “Thank you, ma’am.”  I rang every single doorbell in our neighborhood.  Then I crossed that busy street that mother told me not to cross, and visited every house over there, and by 2:00 in the afternoon it was obvious I had no future in sales.  I hadn’t sold a single pack of seeds.

Of course it’s easy it is to give up when you’re discouraged, tired and hungry.  I was taking a shortcut across a vacant lot, and there was this woman in her back yard working the dirt with a spade, putting in her garden.

I yelled at her across the field, “Hey lady!  You don’t need no seed for that garden, do ya?”

She stopped her work, leaned on her shovel and shouted back, “I don’t know; whadaya got?”

“Everything from asparagus to zucchini; what do you want?”

And her next question, of course, was, “How much?”

“Twenty-five cents.”

“Twenty-five cents!!?  Why should I pay twenty-five cents when I can buy them at the corner store for a dime?”

That’s when I started to cry.

“Because I’m trying to win a bicycle, that’s why!”

She bought $9.00 worth.

And what I learned from that one transaction was,  crying works.

The more important lesson was that people who buy seeds, buy seeds.  People who don’t buy seeds, don’t buy seeds.  That’s just the way it works.

And if you want to sell enough seeds to win a bicycle, you have to find all those people.  You look for that hump of dirt in the back yard where they had LAST year’s garden, and if they don’t answer the door, you go back again and again and again, because there are only so many of those opportunities in the neighborhood.

Not only did I sell enough seeds to win the bicycle, (it was a red Huffy, with 20 inch wheels, a banana seat and high-rise handle bars with streamers) but by the end of Spring Break, I had $100 in the bank.  My mother didn’t have $100 dollars in the bank.  And that, for me, was the beginning of what has been a lifetime career in sales and marketing.

Many of those early lessons have served me well.  One day I was showing my box of seeds to a woman and she asked, “How many for a dollar?”

Well, I was only 9 years old, but I could do the math.  “That would be FOUR for a dollar.”

She said, “Okay, I’ll buy a dollar’s worth.”

So at the next door, instead of 25¢, I said, “four-fer-a-dollar.”  And almost everyone bought at least a dollar’s worth.  That simple change doubled my sales.  And I learned that changing one tiny thing can multiply your success.

The next big lesson came when an elderly neighbor asked, “Well, son, what’s this for?”

“They’re seeds for your garden?”

“No, no. I mean, are you raising money for Boy Scouts, or maybe summer camp, or. . .”

“I’m trying to win a bicycle.”

“Okay. Here’s $5.00.”

“But I didn’t get to tell you about the seeds.”

“Oh, that’s alright. I’m too old to keep a garden.  But I’m happy to help an enterprising young man like you.”  (WOW! She called me a “young MAN!”)

So, at the next door I said, “Hi, my name is Orvel Ray Wilson and I need your help.  I’m trying to win a bicycle.”  And sales doubled again.  What that taught me was it wasn’t about the product, or even the price.  It’s all about the customer.

In 1989, I was a touring speaker for CareerTrack, one of the world’s most successful seminar companies, teaching Sales and Customer Service in the US and Europe.  I was approached by Michael Larsen, a literary agent representing Jay Conrad Levinson.  He explained that, in 1984, Jay had written a book called Guerrilla Marketing, and the publisher wanted to do a sequel and call it Guerrilla Selling.  Michael asked if I would be interested in ghost-writing this book.

“Sorry,” I said, “I don’t want to be anyone’s ghost. I want my name on the cover.”

“Jay will never agree to that.”

“How do you know?”

“I’m his agent.  It’s my job to know.”

One of the principles I taught was to never take “no” for an answer unless you’re talking to the real decision-maker.  That’s not always the person who can say “yes.”  It’s the person who can say “no” and make it stick. I said, “Give me Mr.  Levinson’s number and let me hear it from him.”

Of course Jay agreed immediately, and Guerrilla Selling became an instant best-seller, and one of the most successful books in the series.  Jay and I went on to collaborate on six more books, and many other projects.  I’ve made a career of making Guerrilla Marketing the most successful marketing series of all time.

Marketing and Selling are often confused, but Sales is really a subset of Marketing.  We define Guerrilla Marketing as everything that represents you in the market:  your name, your logo, your reputation, even how you answer your phone.  It’s ALL part of your marketing.

Guerrilla Selling maps the steps customers take when making a purchase decision.  By understanding the psychology of this process, then matching your strategy to your customer, you can make your offering irresistible.

People always go through a six-step process whenever they buy:

1. Need
2. Budget
3. Commitment
4. Presentation
5. Transaction
6. Reward

First, they recognize a Need.  For example, there might be several reasons for buying a new car.  The old car is broken down and not worth fixing. Or they have a baby and need more room. Or they need to transport clients and need something posh. Or they have to travel long distances on rough roads and need a reliable car that won’t leave them stranded.

Many salespeople make the mistake of focusing on the product (the car) while ignoring what the underlying need (basic transportation, more space, more comfort, more reliability). Guerrilla Selling teaches you how to ask just the right questions to reveal their real motivation.

Next, the customer considers the Budget.  How much can they afford?  What’s the payback?  Many salespeople make the mistake of delaying the discussion  about price to the end, while their prospect is worrying on, “How much is this going to cost?”  Guerrilla Selling shows how to deal with prices right up front, then build value for the investment.

Eventually the customer makes a Commitment.   They decide to definitely buy a car from someone.  Guerrilla Selling shows you how to discover the commitments that your customers have already made, and align your offering so that you win the sale.

Next, the Presentation step. The customer makes comparisons, reads ads, visits dealers, takes test drives.  This is often the first time they interact with a salesperson.  Guerrilla Selling teaches you how to recognize where your prospect is at in their decision-making process, and give them just the information they need to move forward.

The Transaction is usually thought of as “closing the sale,” but Guerrilla Selling recognizes that this is only the beginning. Guerrillas follow up meticulously to build a long-term relationship with a customer who will buy from them again and again.

Finally, the customer experiences the Reward (more space, more comfort, more safety).  Guerrilla Selling recognizes that this is the real reason people buy, and it’s different for every prospect.  Guerrillas constantly ask, “How did you benefit from this purchase?”  The answers may surprise you, just as I was surprised by my elderly neighbor, who just wanted the satisfaction of seeing “an enterprising young man” achieve his goal.

You can achieve YOUR goal by remembering NaB & CaPTuRe.  The consonants in these two words will help you remember: Need, Budget, Conviction, Presentation, Transaction, Reward.

In future installments of this series, we’ll explore each of these steps in detail, and perhaps double or even quadruple your sales.

Guerrilla Selling author Orvel Ray Wilson earns Prestigious
Top5 Speaker award three years straight

Boulder, Colorado
January 17, 2012

Boulder, Colorado author Orvel Ray Wilson, CSP  has been awarded the prestigious “Top5 Speaker” designation in 2012 by Speakers Platform, one of the United States most prominent speakers bureaus.  Out of hundreds of nominees, Orvel Ray has risen to become one of the world’s most respected and compelling speakers in the areas of Sales and Customer Service.

Each year, Speakers Platform recognizes five speakers, within ten popular topic areas, based on: expertise, professionalism, presentation skills, original contribution to the field and public votes cast at the Speaking.com Web site. Over 13,000 votes were cast from business leaders, educators, association members and others from around the world for the 2012 nominees.

Orvel Ray, who lives the mountains west of Boulder, is an international keynote speaker, sales trainer and best-selling author on sales, marketing and negotiation. His take-no-prisoners approach is unconventional, entertaining, and devastatingly effective.

A 30 year veteran of the platform, he has addressed audiences large and small in more than 1,000 cities and 42 countries around the world. He’s a coauthor of the legendary Guerrilla Marketing series, with more than 22 million books sold worldwide in 67 languages, including Guerrilla Selling, Guerrilla Trade Show Selling, Guerrilla TeleSelling, Guerrilla Negotiating and Guerrilla Retailing.

In 2001, He was recognized as “Speaker of the Year” by Meeting Professionals International, San Diego. And he was voted one of the world’s TOP 5 SALES SPEAKERS for the past three years running.

Top5 Speaker honorees receive a distinctive crystal award, are highlighted at the Speaking.com Web site and are permitted to use the distinctive Top5 graphics and designation in their marketing. Best of all, most honorees also enjoy a boost in their event bookings.

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If you’d like more information about the Top5 Speaker award and/or to schedule an interview with Orvel Ray Wilson, please call Denise at 800-247-9145 or email OrvelRay@GuerrillaGroup.com.

DoIt Marketing

With all the buzz about “Social Media Marketing,” you can understand why I was intrigued when a fellow speaker, David Newman who promotes himself as a marketing coach, called with a pitch for his new venture, DoIt Marketing.  He had assembled a crack team of experts who, as I understood their promise, could improve my SEO and make my phone ring.

No stranger to social media, I’ve been teaching “Social Media as a Guerrilla Marketing Weapon” for years.  I just lack the bandwidth to manage it for myself.  So I made a few calls, and his references were for-the-most-part, positive.  After meeting for lunch, I was skeptical.

Then, one afternoon David called in a panic; “Can you cover a keynote for a group of financial planners, in Denver, at noon?  Tomorrow?”  The speaker he had booked for this event was grounded in D.C. by thunderstorms.  The fee was less than rack, but I agreed to help him out, delivered the speech, and the client was thrilled.

But then David didn’t want to pay the speaking fee.  Instead, he insisted we put it in my “bank” and use it (after deducting a 25% “bureau commission”) to fund his proposed social media campaign. And lucky for me, they had one slot open.

Instead of a check, I got a 10-page questionnaire, asking all about my books, my business, my clients, and the passwords to all of my social media accounts, website, and blog.

As instructed, I sent DoIt Marketing everything they asked for: market analysis, book manuscripts, articles, audios, videos, top-performing keywords, and passwords for my blog, LinkedIn, Twitter, Facebook and YouTube and other accounts.  I should have known better.

My understanding was that the DoIt Marketing team would take clips from my books and other material, and systematically post them all over the web: multiple daily Twitter tweets, multiple daily Facebook updates, article submissions, new LinkedIn groups, two blogs a week, and more.

I thought it was expensive: $1,500 just to “set it up” (never mind that all these profiles were already set up and optimized, with thousands of fans and followers.)  Add another $1,800/month to launch, with a minimum commitment of three months.  Just enough in my “bank” to cover the setup and two months in advance.

Maybe my expectations were unsually high, given my background as a Guerrilla Marketing author, but I felt disappointed right away. Like when they couldn’t spell my NAME correctly, let alone, “Guerrilla”.  The first (and only) blog they put up was a duplicate of one that had already been published.  They signed me up for five article hubs, two of which I was already writing for.  I believe I could get this level of work from a college intern! The only results I noticed was a dramatic increase in SPAM.

I sent David an e-mail with detailed feedback and branding standards, and agreed to give his team a chance to prove themselves once the campaign rolled out.  I should have known better.

I felt that the work was not only sloppy, but in some cases, downright inappropriate.   Most of the Facebook postings were dead-ends with no breadcrumbs.  One tweet that I felt was very inappropriate simply read, “24 Reasons Why Sales is Better than Sex.” And the last straw, a book review I hadn’t written, of a book by ANOTHER speaker, with a link back to HIS bookstore.  Sorry, but I thought I was paying DoIt Marketing to review MY books and drive traffic to MY website and MY bookstore, thank you.

So, I complained directly to the young woman assigned to my account, pointing out examples from specific posts that I felt were wanting.  Within minutes, I got a call from David Newman, not to apologize, but scolding me for being “abusive” and “impossible to please.” Deaf to my complaints, he threatened to just drop the whole project, in effect, chopping down the tree before it could bare fruit.

My response was, “In that case, I want a full refund.”

“That’s not even on the table.” Instead he sent a check for the unspent balance of $1,800.  He did NOT, however, keep his scheduled appointment for a reporting call,  send the promised written reports, or do any of the setup work for which I had already paid so dearly. When I repeated my demand for a full refund via e-mail, and threatened to take my story public, I got a letter from his lawyer threatening to sue for libel.  That’s certainly ONE way to discourage customer complaints.

The Lessons:

• Check references thoroughly.  Anything less than glowing isn’t good enough.
• Never agree to trade out.  Collect fees for your services, then pay as you go.
• Never pay in advance.  You’ll want to cut your losses quickly if they bugger it.
• Understand what social media can, and can’t do for your business. Don’t expect miracles.
• Exhaust more affordable resources like Craig’s List or elance.com before engaging a boutique firm.  Smart people are out there, and they’re hungry.
• Vet everything before it goes live.  It’s your good name at stake.
• Insist on visible, measure results, reported weekly, in writing; not double-talk.
• File reports on Ripoffreport.com,  ScamBook.com, and the Consumerist.com if you’ve been the victim of one of these scams.  I did.

Throwing $3,300 bucks away on useless marketing really hurt!   And I had to change all my passwords.   Social Media, managed correctly, can certainly boost your business.  But there are FAR too many vendors making wild claims that they can’t fulfill.

And when they ask you to give them “The Keys to the Kingdom,” just don’t.

If you would like to share your experience with David Newman or DoIt Marketing, I encourage you to comment on this post.  You may call me directly at 800-247-9145 with any questions.

This article is not intended to disparage or defame  David Newman or DoIt Marketing in any way, but solely to warn readers about the potential pitfalls of working with vendors in general, and  Social Media Marketing vendors in particular.  The contents of this article merely express my personal opinion and point of view on this topic.  Use the links to his website to make your own assessment.

PostScript:  April 4, 2012

The April edition of Speaker Magazine contains, on page 4, an announcement that BOTH of us have been “sent a letter of censure” for “unprofessional conduct.”  Now that the Ethnics Committee’s findings are public,  I can  CONTINUE to warn everyone I know about DoIt Marketing.   It also raises the question, “WHY is NSA intervening to prevent a customer from complaining about an inept and incompetent supplier?”  –OrvelRay

Here’s a list of ten ways you can bring more value to your offering.  Find three that you can apply right now.

1. Quality

People will pay more for quality.  The Maytag repairman isn’t just lonely.  He’s old and lonely.  Show your prospect that the lifetime value of your offering is far superior to your competitors’.

2. Service

People will pay more for superior service.  Why do you think people pay twice as much for a suit at Nordstrom’s then they would at Men’s Wearhouse?  They value the service – expert tailoring, multiple fittings, free monogramming – and all this makes up for the additional money they will spend.

3. Authenticity

Authenticity means the real deal – the genuine article.  At the Louvre Museum in Paris, you can gaze upon what is perhaps the most famous work of art in the world: Leonardo Da Vinci’s portrait of Lisa Gherardini del Giocondo, commonly known as the Mona Lisa.

For all the hype, it was quite a disappointment. The painting hangs alone in a large hall in dim light, cloistered behind thick plates of bullet-proof Lexan.  And it’s small; only 21 x 39 inches.  Mrs.Gherardini has not aged well over the past 500 years. The paint is cracked and the colors are smoky and faded.

However, scientists have analyzed the pigments and digitally recreated this masterpiece just as it would have looked standing wet on Da Vinci’s easel in 1506.  The reproduction is ascetically superior in every way, and you can buy the poster-sized print in the museum gift shop for only twenty Euros, while the original, of course, is considered priceless.

4. Stability

Company stability means a company that’s been in business since the landing at Plymouth Rock.  Do you tell the story about how your Grandfather came from the Olde Country and started the business with his brother and cousin in the back of their barn?  You share that history because people put a high value on stability and longevity in business.  No one wants to be a beta test.

5. Reliability

People are busy and when they find a vendor they can count on, they buy from them again and again. How do you demonstrate to your customer that you’re reliable?  Does someone answer the phone on a second ring? Do you show up for appointments exactly on time?  Everything you do (or don’t do) sends a message about your reliability.

6. Social or Ecological Values

Do you recycle? Do you use recycled paper in all your packaging and correspondence? Are you running alternative fuels in your fleet?  These issues have become more and more important in recent years.  Seventy-eight percent of consumers said they would pay $2,000 more for a car that gets 35 miles per gallon, even though that only makes economic sense if gasoline is in the range of $4.00 a gallon (that’s more than I pay for wine!).  Meanwhile, the Prius was voted Number One Most Ecologically Sensitive Product of the last decade.

People routinely pay hundreds, even thousands of dollars for a knick-knack at a silent auction raising money for a scout troop, church group, or political cause.  At this year’s Cigar PEG celebrity auction, the three-day elite speaker coaching package I donated raised $22,500.00 for the National Speakers Association Foundation.

7. Delivery

This is why you pay fifteen dollars for FedEx instead of 52 cents for first-class mail. People want the product in their hands immediately.  Whether it’s delivering a customized pen in less than the time promised, or completing their project a week ahead of schedule, people don’t just want what they paid for when it’s expected, but BEFORE it’s due.

8. Financing

Even Time Magazine, offers “Three easy payments of $9.95.”  So, when you have a good customer who’s shopping for terms, you can say, “Well, we can give you 2% net 30, or 90-days net. Take your pick.”  This also proves to the customer that you value them enough to be flexible on terms.

9. Local Sourcing

Eighty-two percent of people surveyed have consciously supported local or neighborhood businesses.  People like to be a part of a community, and will pay higher prices to support local vendors.  Need proof? Compare prices at your local farmer’s market with those at a big-box store.

There’s a two-pump garage and gas station in the tiny Colorado mountain town where we live called Carl’s Corner.  I’ve been buying gas from Carl for more than 20 years, and my wife is always giving me a hard time about it.  She says, “Why buy gas at Carl’s when we can get it cheaper at the Conoco in Boulder?”

“Because we need more than just gas,” I remind her.  “We need Carl.  We need him when we have a flat.  We need him when we have a dead battery.  We need him when we slide off the snowy road and get stuck in a drift.  We even need him when we run out of gas for the grill.  And if we don’t keep his garage open, then we won’t have a mechanic in the canyon at all.”

10.  Fun

Regardless of what someone is buying, or how much they pay, they want to have FUN and feel good about their purchase.  How can you add a fun factor so your buyers enjoy the experience and keep coming back?

You’ve seen this guerrilla tactic in action if you’ve ever bought fish at Seattle’s Pike Street Market.

What can you use from this list to justify your higher price?  Many of these are things that you’re ALREADY doing, but not taking the proper credit.  Make certain that you explain ALL the aspects of your product or service that makes you more valuable to your customer.  Focus on your uniqueness and what you bring to the table that your competitors are ignoring.

This is only part of a list of 31 Reasons Customers Will Pay More.  Watch the new seven-part video, “Guerrilla Tactics to Sell at Higher Prices,” at:  http://vimeo.com/user6769112/videos

The most universal complaint I hear from business owners is, “We just can’t find good people.”  Well, let me encourage you. They’re out there, and your mission is to track them down and then persuade them to join your team.

Guerrillas know that their team is the glue that holds their business together – from their sales associates to their cashiers, bookkeepers and delivery drivers. So you have to put the same effort into recruiting a stock clerk as you would when hiring a merchandising manager. Although the specific example we’ll illustrate here refers to sales guerrillas, these techniques will work to help you hire the cream of the crop for any position.

Because the best predictor of future sales behavior is current sales behavior, guerrillas are always on the hunt for good people. You’ll find them serving you in restaurants, shops, hotels, spas, museums and cafes. Whenever someone really impresses you with their sales or customer service skills, ask for their name and number. Let them know that, while you may not have an opening right now, you’re always looking for good people, and you’d like to have permission to call them if something opens up. This way, you’ll always have a backlog of qualified candidates.

This is also a good reason to regularly shop your competitors. We know it sounds a bit mercenary, but you would be appalled at how poorly some companies treat their best people! And when you hire away one of their best, you win twice – you gain a skilled employee at your competitor’s expense.

When screening sales applicants you need to give them an opportunity to showcase their sales skills before putting them in front of customers. By seeing how well they sell themselves to you, you can predict with remarkable accuracy how effective they will be at selling others.

Here’s a simple system that can streamline the screening and ensure that you are getting the best of the best.  Set up a voicemail box on a DDE (direct-dial extension that only goes to voice mail; ask your phone company).  Then run your classified ad outlining the basic qualifications for the job, but do not mention the name of your business. Instead, in the last sentence of the ad use the phrase, “To schedule an interview call (the DDE phone number).”

The outbound recording should say, “Because of the overwhelming response to or ad, we’ve had to automate our screening process.  At the tone, please leave your name, a number where you can be reached, and a brief summary of your qualifications.  If your background matches our requirements, we may invite you for an interview.” BEEEEP.  Let it run for a day or two to accumulate messages.

When playing the messages back, be prepared with a pad and pen.  You’ll want to take notes.  Start by really listening to the voice. Is it warm, friendly and intelligent? Is this the voice of someone who you would feel comfortable representing your firm? If not, delete it and move on.
Then listen to the message a second time, and check:

• Did the candidate follow directions?

• Did they in fact leave their name, an after-hours number (or better still, several)

• Did they leave a summary of their qualifications, and in that order?

This will predict how easy (or difficult) they will be to manage.  Did they just rattle off their resume, or did they couch their experience in terms of skills? “I’m very good with computers,” or “I’d do a great job because I love working with customers.”

And finally, did this candidate close with some sort of call to action, “asking for the order” (or in this case the interview).  If they pass all four of these tests, then call back and interview them initially by phone.  You don’t want their physical appearance to bias your choice prematurely.

This process will give you a better idea of each candidate’s strengths before you waste time brining in people who are not a good fit. Implementing some sort of system to streamline the screening will help weed out the lazy and unqualified. This strategy will help you build the best possible retail team that will only improve your team morale and your business as a whole.

Orvel Ray presenting diplomas in Nairobi, Kenya

In September, speaker and consultant Scott “Q” Marcus did a program and workshop for NSA Colorado on an advanced audience-interaction technique called “Sculpting,” in which participants collaborate to build a living model of a problem or situation, then work to solve it. It was outstanding in every respect, and we all left the day eager to give it a try.

The opportunity arose in the opening hour of a two-day Advanced Guerrilla Selling Seminar that I was teaching last week in Nairobi, Kenya. After the opening story and overview, the room was just flat. At first I just chalked it up to my America accent; after all, their first language was Swahili. Or maybe it was a bit of a cultural thing (here’s another White man telling us what to do) but it just wasn’t connecting. Here were 90 Sales VPs and Managers, from three countries, representing the biggest companies in East Africa, sitting quietly and looking skeptical. I was in trouble and I knew it.

So I did a sculpt, based on the “Get through the Day” theme that Scott had demonstrated. I called for a volunteer to represent the role of the Salesman. Mark, who sells big transformers to electrical utilities, stepped forward, and we positioned him far stage left, and gave him the goal of getting across to the far end of the 20-foot stage, which would represent his goal of making the sale.

Then I asked the audience to shout out possible obstacles that could get in the way.

“Competition!”
“Traffic” (Nairobi is notoriously gridlocked)
“Infrastructure” (temperamental at best, or lacking altogether)
“Technology”
“Dead mobile”
“Corruption”
“Time”
“Price”
and so on.
As each participant spoke up, we brought them in turn up onto the stage, asked them to pose in a way that would show us what their obstacle might “look like,” and “where in the day” it should go. After arranging themselves across the stage, we set the sculpt in motion. “OK, Mark, time to go to work.”

It looked like a Rugby scrum as Mark struggled to push his way over, around, under and through one challenger after another. It was hysterical. When he finally made it to far stage right, the room exploded into applause and cheers.

“So, is this what it feels like to do business in Africa?” I asked.

A resounding, “YES!”

“Ok, then. Over the next two days, this seminar is going to teach you strategies and tactics to help overcome all of these obstacles, and more.”

It was as if someone had waved a magic wand. What they got from the sculpt was that, first of all, this was going to be a fun, collaborative, participative environment, rather than a formal stuffy lecture. (Kenya was a British Protectorate, and that culture still lingers. It’s subtle, but Kenyans are resentful of white authority figures). It also set their expectations that the content would be practical and street-wise. They could see that, “this guy gets it.” I think it gave them permission to relax, speak out and play along. And it humanized me in a way that bonded me to the group. From that moment on, they were fully engaged, relaxed, chatty and eager to speak out and participate.

Imagine my shock and surprise when this same group gave the program a standing ovation at the end of the second day. Absolutely unheard of for a long seminar; certainly a first in my career.

The sculpt set the stage for a successful learning experience that transcended language, race and culture. Scott, I can’t thank you enough for teaching us this very powerful technique, and I look forward to using it again in my next seminar.

Africa is like a whole other country, and it’s hard to find stuff.  The same could be said of Lincoln, Nebraska.

Every Professional speaker should take responsibility for their own comfort and equipment, and always be prepared for the inevitable catastrophe.

The Professional Speaker’s Gig bag should contain:

1. Your laptop computer
2. A dedicated power supply that stays in your bag.  (I recommend the universal Targus AC70U.)  Leave the factory one at your desk.   That way you’ll never make the mistake of forgetting to pack it. And you won’t be too disappointed when you leave the universal one behind at a venue.  You can get another at most any office supply box store.
3. Your own PowerPoint controller (I highly recommend the Logitech Professional Presenter R800, which includes a green laser and a cool timer that vibrates to tell you when to shut up. )
4. A small portable mouse (a cheap one works fine; you won’t be using it that much.)
5. Copy of your install disk for Microsoft Office for when you’re sitting in a Kinko’s at 2:00 AM and need that obscure printer driver.
6. A 4 gig flash drive for backing up your presentation, and another for using sneakernet to transport it to another platform. Better still, carry a second backup  in your pocket or purse. It will save your show when your laptop dies or is stolen out of the meeting room while you pee.
7. Portable travel alarm clock with a display that you can read from across the stage.  (I also recommend the free iPhone app NightTime for its  big red-number display.)
8. Portable digital thermometer, to settle the argument between the hotel engineer and the whining guest who insists it’s too cold.
9. Fully loaded iPod, with royalty-free music that you can play during walk-in and breaks in your program, plus news podcasts, a movie and a favorite TV show or two.
10. iPod/iPhone USB connector cord and AC adapter/charger
11. A spare pair of Apple earbuds so you can listen on the plane
12. A stereo 1/8″ (mini) phone to 2 mono 1/4″ phone send return (insert) cable so you can plug the iPod directly into the sound system (ask the guy at Radio Shack).
13. Noise canceling headphones (I highly recommend the Bose Quiet Comfort 15′s.  They sound much better, and are a great comfort when strapped in next to the inconsolable crying baby.)
14. Three or four spare AAA batteries to power your remote and headphones.
15. Package of 2 spare Duracell 12V batteries for the wireless mics, even when the hotel supplies them. When they go dead, it’s always in the middle of your show.
16. Package of Halls Honey Lemon Cough Drops (the Cherry ones make your tongue look weird)
17. Pack of chewable Pepto Bismo tablets
18. Package of Imodium AD (for when Pepto Bismo doesn’t help)
19. Melatonin tablets. The absolute best herbal remedy for jet lag. Take two an hour or two before  sleepytime.
20. Blindfold (for airplane sleepytime. Also handy for terminating unwanted conversations with annoying seatmates. You can buy them in most airport shops, but they hand these out in first class, so ask the cabin crew for one on your next long haul.
21. Copy of your room setup instructions. The hotel will have lost the one you sent ahead. Trust me on this.
22. Copy of your standard introduction, printed in 24 point type. Your introducer will have forgotten the one you sent ahead. Trust me on this too.
23. Color copy of your passport (and applicable visas)
24. Color copy of your drivers license (enlarged 2x)
25. A crisp $100 bill (series 2000 or later; some overseas hotels won’t accept the older ones). Hide it in a pocket or fold of your computer bag. This can bail you out of a lot of trouble almost anywhere in the world.

All this, and more, fits neatly in my IBM Thinkpad’s little backback. Not only has it saved my skin, but it’s rescued more than my share of other speakers as well.

People often use this greeting without thinking, even when they don’t really want to know.

I didn’t realize exactly HOW often until recently. And lately, I simply say, “Better! Getting better every day.”

See, last Fall, while helping a neighbor with his roof, I took a nasty fall. Broke my back. Crushed my left foot. Broke my left arm so bad it required surgery. It now has enough hardware in it to set off the airport metal detectors. I spent a month in bed, a month in a power wheelchair, and another month learning how to walk.

Business flatlined. We canceled an eight-city tour for Oracle. That set us back fifty grand. Then there were the medical bills. Denise had just been laid off, so she stayed home and played nurse. I lost my hard-won chair with the Boulder Big Band. We almost lost our house. The pain and financial stress were awful, but the outpouring of concern, support and help from colleagues and friends was astonishing! There were cards and letters (and even checks) from people all over the country, all of them asking, “How ARE you?”

“Better. I have good days and bad days, but today, I’m better.”

The injuries are healing, slowly. It will take several more months to regain my strength and energy. But soon I’ll be back out on the road again, better than ever.

This experience has healed more than just the broken bones. Without realizing it, I had become jaded and bored with my work. I was tired and flabby. I was frustrated and impatient and short-tempered, until a moment of carelessness knocked me flat.

The restricted diet made me drop 20 pounds. Long days in bed gave me time to think. The time with Denise made us closer. As soon as I could type again, I started a new book. As soon as I could pick up a pair of sticks, I started practicing. I soon found ways to coach and help other speakers.

Now I laugh more and complain less. I’m more patient, less driven. Therapy and exercise made me stronger. My body and spirit are both lighter. The experience has deepened the love for my family, friends, colleagues, and even total strangers who were so generous and helpful. The coaching I’ve done has make me a better speaker. Focusing on time and grove has made me a better drummer. Bureaus are calling and bookings are up! I bounce out of bed feeling grateful and eager to greet the day.

The most important lesson in all this is that we must ALL work at getting better, all the time. Every day. Even when we’re not broken. Competition is fierce, and unless we work continuously to improve our products, our service, our marketing, our skills and our relationships, we can lose it all in an eyeblink. Being good, even really good, is not good enough. We have to get better.

So, THANK YOU for asking! I’m better. Better every day. And in more ways than I could have ever imagined.

–Orvel Ray