Leading Market and Product Strategies. Minnesota’s Thomas Winninger, The Business Expert

Thinking Big is better than thinking small even if you are wrong.

It is amazing to me that in these times of economic challenges the mentality of the left brainer (bean counter) is unfortunately falsely validated. How many times have you been confused by some one who said that it is time to cut back. Cut back mania is revenging the innovative nature of our potential today. There has been a 2000 old cyclical historical process that of putting a bean counter at the top of the empire for 3-4 years then in desperation because there is no real market growth and not a lot of fun. So in desperation the parliament or board kills off the bean counter and installs a market maniac. Suddenly there is great market growth and fun and energy but the bottom line doesn’t leap up. So what do you think? Which is better?

Most independent enterprise types chose the latter that being market maniac. But what I am saying is the most prosperous growth come under this type with a good dose of bean counting.

So what? This is not the time to cut back to protect yourself and you business.

So what? The point is what should you do now not only to protect you assets but also protect them by getting moving forward.

1. Focus on what makes you money. Which products/services make you money and which don’t? If is a service, which service creates customer value and which don’t? A store carries 4000 items and the customer in 12 months only buys 35 items on a regular basis. Is this ridiculous our what? Think of all the space, cost that goes to those that make you no money. Get rid of the bad stuff. It is getting in the way.
2. Focus on which customers make you money. This is not being insensitive. Absolute Truth: While you are trying to serve the disloyal customers you are losing the loyal customers. I call it “lose the best and keep the rest.” This is a very unfortunate, devastating position to be in and you are probably guilty of this, we all have been.
3. Get rid of employees who are not helping you grow the business; they are too expensive no matter how little you are paying them. No matter what it is, it is too much! Now is the time to define each person’s job description in terms of growing the business.

Truth: You cannot save your way to prosperity.

Thomas Winninger “The Business Growth Guy”

Want to learn more? Visit Thomas Winninger’s webite

Successful Business Techniques! Have Meetings With Your Employees That Work!

Are Your Business Meetings Set Up To Fail?

The truth is that your meeting didn’t work! Don’t feel bad it wasn’t because the focus and content were wrong. And that speaker you picked wasn’t too bad even if it was you! But most meetings are set up to fail. By fail I mean that they could have blow the roof off, but there are truths that if followed, make every meeting even better. I can’t not cover much in this brief note but I will add to it from time to time. Several years ago to help my friend and speaking clients I put together the 101 meeting Planner Idea Book. It was so popular that we ran out before we realized that we had none left. I mean none. We can’t even find the original artwork or database but alas my feeble brain still remembers much of it so here goes.

Never start a meeting with the state of the state. The best way to suck the energy out of a potentially great meeting is to state facts and figures for an hour unless the facts and figures are interspirced with award for those who make the facts and figures happen. How about bagpipes, or an energetic speaker who has caught the theme of what you are trying to say. How about the series of pictures with verbal captions that tell a story about how the year has been, or quarter or whatever. How about a quiz based on little known facts, trivia. The point is the kick off to any meeting be in the national sales conference, International IT gathering or Monday morning run of the mill needs energy, not time wasted on protocols of the meeting. Kick it in the ( | ), you know what, right off the bat, then when you have everyone’s attention back up for the protocols.

Perhaps using Google Images for classic pictures that depict the theme of the meeting of the Star Spangled Banner. It has a great beat and a great theme.

Thomas Winninger “The Business Growth Guy”

Want to learn more? Visit Thomas Winninger’s webite

Helpful Business Strategies to Increase Your Business’s Sales!

Thomas Winninger’s Successful Business Strategies!

Well it’s not what it use to be! The market that is! For many, the hay day market activity has paused and many of you are realize that in you were making money in spite of ourselves. That means you weren’t really running a “Best Practices” operation and still making money. Well now you are not making that money and you are still trying to get by without “Best Practice”. I call them absolute truths. My dad always told me that you don’t learn much in a great economy. It is when things get a little tough that you learn how good you really are, that is when you realize that some of you sales came because you were reducing your prices, giving away you product? That’s when you discover that you are servicing the customer that didn’t make us any money. That’s when you realize that you have been putting up with unproductive employees and suppliers who really didn’t know your business and didn’t care. They just took you money and didn’t do a real good job getting you the stuff. (That is the stuff that you paid for and even if they did get it to you and on time that is all that they did for you. There was not other support.

Well it is time to buckle it up and get smart. It is take to save yourself from the revenging tendency of this market. Five things that you must do now are the five things that you always should have done but you were just too busy going to the bank. First, fire you worst customers. (Now you have heard that before.) Time to wake up. The Absolute Truth is that the best companies (that is the most profitable companies) have the best customers (that is the most profitable customers). Second, focus on you core business and what attaches to your core business. For example is you sell balloons, why are you trying to sell soap. The Absolute Truth state that the most profitable sales are from groups of related products. (I call those convergent products). It would be better to sell the string that the soap, sell greeting cards rather that the soap. If you sell paint in this market you better be selling the paintbrushes and drop clothes. Why because if there are fewer customers you better have each customer buy more of what they need from you. OK so now you are beginning to see the light. Third, take the clogs out of the process. Make it easy for the customer to buy. Quite telling the customer what you don’t do and start tell them what you do, DO! If you find that there is something a number of customers are asking for figure out a way to carry it. Quite saying we don’t do that or we don’t carry that. WHY NOT Forth, reorganize so that the stuff that makes money is easier to find and buy. Quite making the customer work to hard to get to the good stuff and if they don’t know what the good stuff is that is you fault. Fifth, why do you continue to employ people who barely are on the job? Don’t fall into the trap of declaring that “you can’t hire good people” anyone who says that “can’t hire good people” because it is a self-actualizing statement. Always ask yourself, “would you work for you” or “would you buy from you” good chance you wouldn’t. Absolute Truth the best most committed people want to work where they have opportunity to advance, where they have an opportunity to grow, where they can become a psychological partner. Now that is a big idea that you will have to embrace at some time in the near future.

So soak a little of all this in and let’s talk.

Thom Winninger “the business growth guy”

Want to learn more? Visit Thomas Winninger’s website!

Increase Your Business’s Sales!

It is not time to run for the boat!

My father said the only time to get real growth is in a tough market. Well here it is! So what are you going to do?

Run for the boats? But where would the boat take you that things would be any better. The Truth is…your competitors are running for the boats right now. Boats to nowhere. That leaves many market opportunities for you. Starbucks is closing stores, banks are not making loans, but gas prices are falling. This is what I call WOO time. That is “Winninger Observes Opportunity Times!” Some of the biggest and best companies are those who weathered the economic storms of the past. Just think of Walgreen and Target. Each stayed to their courses, kept focused on what they did best or at least got back to what they did best. Look where they are today.

So can you. There are Truths that you must not miss. Customers are still buying. Well some customers are and all your resources should be aimed at them. 1. What can you sell them that they are buying somewhere else? 2. What other things should they be buying with what they are buying?

How about thinking of the paint can principle?

What goes with a paint can? That’s right, brushes, stirs, drop clothes, ladders, rollers, and masking tape! The problem with markets like this is that you cannot afford to miss the sale of the accessories. They will keep you in business. Think of the most frequent purchases you customers or clients make. What 5 things should they buy with that purchase? Yes get you average customer purchase up even though you traffic is going down. By the way, many find that even though transactions went down profit went up. Put items together that go together so that they get the idea. Ignorance is a bedding store that doesn’t display the pillow and other bedding accessories on the mattress. How are you doing? I assume that like 89% of the other businesses in you market you are letting needed sales walk out the door while trying to chase customers that aren’t even buying.

No longer! Not for you anyway! Start tracking the average customer purchases, display items that go together, together. Make clumps of choices. In other words, put together you 3 ways to something.

Don’t run for the boat. This is the time to own the island!

Steps To Control Your Customer’s Buying Cycles!

Increase Repeat Business for a Successful Business!

Securing repeat business and building a strong referral base is one of the most critical challenges business owners face today. Although the last sale you made may have been very rewarding and brought you a good margin, there is a great probability that customer will never buy from you again.

We have spent a great deal of time in these articles discussing strategies and techniques to build successful sales through defining our customers, identifying their highest needs and becoming a specialist in any industry. All of those things are vital and necessary but will not go far to building continued success unless we learn how to control the buying cycle of our customers. It doesn’t seem to matter much in these flush economic times how good your product is, or how great your service, loyalty is hard to secure. In fact, most customers are not committed enough to return to you for a second or third purchase.

That is sobering to those who recognize that repeat business and referrals are essential to growing a successful business. The current economy just offers too many options and choices for customers to feel any great loyalty to one business. Unless we daily remind ourselves that we are value merchants, industry specialists, not just another store, hoping for a piece of the business. Through a series of well planned steps we can very effectively take control of our customers’ buying cycle, therefore greatly increasing our probability of repeat business.

Before launching into any of the steps we must first identify in what type of sales environment it is that we exist. Most businesses will fall into one of two environments– small or large. Because of the investment factor in most large ticket items, (people don’t purchase automobiles or copiers twice a month like they do groceries) we will place large ticket businesses in the large sales environment. It’s important to know your environment because the number of contacts you will have with your customers during a transaction will vary greatly and will affect the way you approach your “control”.

However, before we can take control of the buying cycle, we must first understand the seven steps customers will go through before they reach the point of purchase. Whether large or small sales environment, these steps exist in both and are essential to the sales process.

Need Identification: A need for products or services is required to stimulate interest in making a purchase. Does anyone really need a snowmobile? Yes! Although many of us purchase them to satisfy an emotional need, there are those who because of the type of country they live in, depend very heavily on snowmobiles for their daily lives. It’s up to us to create the need in the minds of our customers.

The Search: Once need is identified, customers will search for a source. If you are the industry specialist who can offer two or three choices to your customers, it will be most beneficial to you.

A Source is Found: Once the search for a solution is started, eventually customers will find a source that can satisfy their need.

Comparison: Although customers have found a source to satisfy their need, they typically are unable to commit to a purchase yet. They may compare you to a previous purchase they’ve made with you in the past or they may compare you with a competitor. However they do it, most customers will insist on making a comparison before moving towards a purchase.

Decision Time: After comparison, customers are usually confident enough to make a decision – not necessarily a commitment – but this decision will eventually lead to a purchase.

Affirmation: After customers have made a decision, typically they want affirmation before making a purchase commitment. They need assurance that they have made the right choice in purchasing a your product or service. This is when it is critical for salespeople to be able to offer hard facts that affirm a purchase based on the benefits after the sale.

Relationship Established: This final step is critical. A relationship is based on how you relate with your customer. Without “relationships” repeat business will be tenuous at best. Realize that one sales transaction typically does not secure a relationship. This happens when we do something after the sale to create an ongoing need for our customers to return to us.

It is important to note that in a large sales environment, these seven steps will occur through a series of contacts with your customers, often over a period of several weeks. In contrast, in a small environment, several of the steps will be covered in one contact. As value-added merchants it is up to us to manage the steps most effectively. There are three things to consider when trying to control the return of a customer. First, since many items are not consumables, we must have vertical products or services our customers can purchase. Second, consider timeline. How much time usually occurs between the first contact and actual purchase? Third, what is the time line for re-purchase? Do you receive referrals that create new business in between purchases?

Thomas J. Winninger, CSP, CPAE, and member of the Speaker Hall of Fame is the president of Winninger Institute for Brand Strategy and over 70 major companies in North America depend on him to assist them in maintaining their market dominance. Thom is the author of best selling “Price Wars”, “Sell Easy”, and new in 2000, “Full Price!” Contact the Winninger Institute at (612) 896-1900; E-mail: thomas@winninger.com; www.winninger.com.

Key Customer Care for Business Owners!

Effectively Answering Your Customers Questions!

When a customer asks us a question with resistance built into it, how do we respond? Do we start defending our prices, our business or ourself? The successful business leader today learns how to respond to customer questions by building functional responses that come naturally and convincingly.

People are conditioned to expect a certain response in a given environment. For example, when we go through a fast food drive through and order a sandwich, we can count on hearing, “Do you want fries with that?” The same thing applies in the sale of value product or services. Sooner or later most customers are going to ask, “Why are your prices so high?” Our choice is to determine how we will respond. The right responses will bring the savvy business owner more “Yes!”

If the customer says, “Your prices are high!” we can choose to start defending our price, blaming the industry or the high cost of advertising. In that case, the focus will remain on price and we stand to lose our customer to our competition. On the other hand we could use a functional response that would encourage the customer to respond much more positively. With the proper functional response we might be able to say, “Yes, I understand our prices are a bit higher than others, but we offer only the finest brands with the best selection and choices. We guarantee your satisfaction. That is what our customers pay for – and they get it.” It is important to immediately follow up with, “Please, tell me, what are you specifically looking for?”

In any business, whether we are selling to the retail consumer, or business to business, the challenge is to know what to say, when we need to say it, and in a manner that creates a connection between our customer, ourselves and our product or service. Since we ourselves have trained consumers to shop price it may seem awkward and foreign to respond to a price question with something other than, “Well, let me check with the boss and see if we can come down on that boat.” Another functional response to price might be, “I appreciate you bringing that up, Mr. Adams. You see, we customize our approach to our fine items. We want to know your specific objectives in purchasing to ensure you get the results you want. Our customers are willing to invest a little more of their dollars to get these kinds of results. Aren’t you?” A functional response is something we have predetermined to say in response or in reply to a specific question or resistance.

Creating A Functional Response
Have we ever taken the time to analyze the types of questions and resistance we most often get from your customers? There is valuable information in this research. If we do the work we will likely find several common areas of concern. By being aware of the types of objections we may get and we can be more prepared for them!

The second step is to create a response to use in those very situations. Practice responses until they become natural. Our responses need to be functional in our system, not in our delivery of them. Sincerity is critical and will be very evident to our customers.

In addition, we should be aware of several important “Sell Easy Rules” to follow when building functional responses.

Building Functional Responses Make Our Presentation More Spontaneous
When a customer asks a question or raises an objection, having a functional response prepared will keep us alert and reactive. We won’t have to stumble around, trying to figure out how to respond. You will have several options planned.

Practice Will Improve Confidence
The longer we work in specific industry the more we will recognize the similarity in objections. We will have the opportunity to practice if we anticipate what might come up during a presentation. The more often we use our functional responses, the smoother and more confident we will sound.

Ask Questions To Maintain Momentum
By asking carefully guided questions, we can alleviate concerns or doubts. We must talk with customers to analyze what it is they need to make a decision about before moving ahead. Asking a question like, “Would you please share with me some of the things you still have questions about?” will generate information and can prevent us from getting “stuck” on one issue or concern.

Put Functional Responses On Cards
It may sound silly, but the best way to achieve a level of comfort with functional responses requires practice. Just as in school we learned multiplication tables through practice, practice, practice, the same goes for sales. By practicing our responses and by writing them down on cards, we will make them second nature. Also, in writing them out we can discover how they actually sound to our customers.

By following these tips we can build functional responses around the most common situations we encounter in our particular industry. When customers bring up an issue that’s important to them, we will know how to respond so much more effectively.

Thomas J. Winninger, CSP, CPAE, and member of the Speaker Hall of Fame is the president of Winninger Institute for Brand Strategy and over 70 major companies in North America depend on him to assist them in maintaining their market dominance. Thom is the author of best selling “Price Wars”, “Sell Easy”, and new in 2000, “Full Price!” Contact the Winninger Institute at (612) 896-1900
E-mail: thomas@winninger.com; or visit our website