The Value-Added Proposition

to increase your fees or prices?even if you feel you deserve it. You should probably defer any planned fee-increase announcements until later and instead keep your fees at their current levels during such a period. This is the time to make creative, value-added offers that further enhance how well your product is perceived. Obviously, you want to be sensi- tive to the market, use it to demonstrate this extra value, and encourage people to do business with you.

Note: You are not going to make an announcement to your customers and prospects that you are ?holding the line? on prices due to the recession because of your desire to help them through this time. No one will do business with you because you showed sympathy for them. What you will do is add value to the same services that you have sold in the past by bringing extra attention to the things your product or service does. You need to get even more creative than you have before and strongly emphasize how you and your company are going to support, service, and stand behind your products, services, and proposals. This doesn?t mean you give anything away nor should it be con- fused with using the second-sale strategy. However, it does mean that you?ll need to highlight the other services that are included with your offer that don?t cost the company

or your client money. In addition to your product, you are going to offer what is referred to as value-added proposi- tions, also known as unique selling propositions. A unique selling proposition is a real or perceived benefit of a good or service that differentiates it from the competing brands and gives buyers a logical reason to prefer your good or service over other brands.

So, maybe in addition to installing a product, you hold initial meetings for the entire group to whom you?re selling, motivate and ensure buy-in from them, and con- duct follow-up trainings after product installation. You can follow up further by holding teleconferences with clients throughout the year to continue to answer questions and make sure that they?re familiarized with the new product. Though these unique selling propositions may be things you were willing to do last year, you really have to promote now in order to make your proposition appear unique. You don?t reduce the price, but you do sweeten your proposal by building value.

In my experience, one of the reasons people stall when it comes to decision making is due to negative past experiences. The more unique you can make the proposi- tion appear, the more success you will have in overcoming people?s tendency to delay making a choice.

For example, I own apartment buildings, and when things tighten up, people shop more diligently. They want the most apartment for the least amount of rent. Because other apartment owners are feeling the pressure, they will start to reduce their rents, which puts downward pressure

on my properties and their rental incomes. I don?t want to be compared with the apartment building down the street and be forced to drop my price. Therefore, I look for cre- ative ways to add value to my property so that we keep our occupancy high and don?t erode our revenues. I distinguish myself from my competition by offering unique value- added options. When you start thinking of how to solve problems creatively?without lowering prices?you will come up with great propositions.

We did this exact exercise with one of our proper- ties when our competition was lowering prices. Since we wanted to maintain income, we knew we would have to come up with something to differentiate our offering. We knew, for instance, that people love their animals and that many apartment complexes don?t allow them. So we added fences to each of our downstairs units that allow our tenants to have dogs of any size. Because of this proposi- tion, rents and occupancy at my building are now higher than at my competitors? properties, and I raised the overall value of the building by increasing my cash flow. Because I was creative and found distinctive ways to build value, my apartment product stands out from the rest of those in the marketplace.

Here?s another example. Let?s say that you own a salon and want to offer some kind of value-added proposition that makes it more attractive for people to spend money on getting their hair cut from you. You don?t want to drop the price, though, since this will only remind them how tight money is and possibly keep them from coming to see you.

Instead, you call your clients and let them know about a new initiative:

?Hey, I wanted to call and tell you that we are now offering wine and cheese in my shop for anyone who comes in to get a haircut in the next two weeks. It?s a lot of fun, and you?re past due for a cut anyway, aren?t you? We?ll also be giving out free head and neck massages?so come on in for some relaxation time!? The cost of wine and cheese is almost nothing compared with the income you will gener- ate from this creative value-added thinking. All you have to do is make the call, bring the wine and cheese from your house, and take an extra five minutes giving a head massage when you shampoo clients? hair.

Regardless of the type of business you run, you must build value, communicate that you are doing things differ- ently by providing even more service, and highlighting how unique your proposal is. People want to feel good and receive special treatment, and they want to be told about what you?re doing. There are endless ways in which you can add value without decreasing price and create more business for your- self and your company?even in a contracting marketplace. Selling is all about building value, so in order to create your own economy, you must become effective at selling. And to do any of this successfully, you must be completely sold on what you offer and have a complete commitment to your expansion?and a fierce disregard for contraction.

Remember: The value-added proposition should increase revenue without costing your company any addi- tional money. Do not confuse this with the second sale

or use any of your second-sale opportunities to make the unique value-added proposition. Now?more than at any other time?is when you promote and show excitement about your products, services, company, and yourself in a manner that adds value to each of these things and makes them unique in the market.

CHAPTER

Act Hungry

Instead, you want to ?act ftungry to make sure you don?t end up ftungry.?

No one likes people who act like they are better than others or so important that they don?t need your business. Everyone appreciates someone who goes the extra mile and really shows others that he or she wants, needs, and val- ues others? business. You will never create a powerful, sol- vent, prosperous, and abundant economy with an attitude of arrogance. You better have your best game face on when economies tighten up; people who are looking for reasons not to do business with you won?t tolerate any egotism. In almost every seminar I conduct, someone will say to me, ?I?m afraid I might seem weak if I act like I want the busi- ness too much.? My response is always the same: ?The big- gest mistake you can make is not to act like you?re hungry for the business!? You cannot afford to make mistakes in tftese times. Let your competitors act like tftey don?t need tfte business, wftile you make it clear tftat you do.

Let?s face it: You need clients more than they need you in any economy, and just because you were a hotshot in the past means nothing now. I know companies, executives, and

individuals that are still acting like they?re top in their indus- try because they used to be number one in their market, yet their current sales are off by 40 percent. Being number one doesn?t pay bills?and your position is only as valuable as the degree to which you are profitable. What you did last year means nothing in the market today. History is laden with companies that were number one in their field but who only exist nowadays between the pages of books. Sears and Kmart are two perfect examples of these. Both dominated their fields at one time, but their arrogance cost them their positions?and now they?re struggling in the market.

The primary goal in a shrinking economy is to close the gap in lost sales and keep finding creative ways to do so. There?s no time to brag about your position or discuss yesterday?s fortunes and successes. Spend all your time, energy, creativity, and resources in advancing your goals and getting so far ahead of the pack that you seize your competitors? business along the way. The real world of busi- ness is the most brutal battlefield in the world; it will not tolerate conceit or people who are living in the past. Cus- tomers don?t value excuses, timing, reasons, ratings, yester- day, position; they only value results. If you want to create your own economy, you have to know what you are dealing with. The only way to impress the marketplace is to gain market share going forward?at which point, it will grant you all of its gold and treasures.

It?s easy to act like you are invincible when you?re busy, in demand, and have much more work than you can handle; however, it?s not attractive. Knock off the arrogance and start acting hungry. Acting ftungry means that you?re aggressively

ambitious or competitive. Perhaps it stems from a need to overcome poverty or past defeats or it is because your desire to succeed is so great. Regardless of your position in life, if you want to stay on top, you have to be willing to do wftatever it takes to earn more business?during good times and bad.

You need to show great appreciation and gratitude for every opportunity you get. Be willing to bend over back- ward, sideways?even do handstands, if necessary?to let people know that you?ll do whatever it takes to earn their business. Don?t let yesterday?s successes give you a false sense of security and make you feel like you don?t need suc- cess today and tomorrow. You must ftave your attention on tfte future to create one and you must do things now that you didn?t do before the slowdown.

If your market is down 40 percent and you are still operating with the same energy, effort, and actions that you did before the pullback, you are going to move backward? because your efforts have not adjusted to the reduction in business. Your absence of effort is likely due to a lack of awareness, an abundance of arrogance, or a combination of the two. So wake up and make the adjustments necessary to tweak your business to the economy?s new realities. You absolutely must (1) make the mental adjustment that things are different and start acting accordingly; and (2) increase your activity. Just because you won the Super Bowl last year doesn?t mean you don?t go to spring camp and train next year. As any sailor knows, ?yesterday?s winds won?t fill tomorrow?s sails.?

Always, always, always demonstrate your hunger and desire to grow your business by displaying how service

oriented and interested you are in your clients on a daily basis. Follow up relentlessly and do anytfting you can (ethi- cally and professionally, of course) in order to obtain some- one?s business?especially when things tighten. Be useful, courteous, accessible, humble, and now more than ever, willing to go the extra mile. Surpass any and all expecta- tions, act like you really want someone?s business?and do whatever you can to earn it.

Adjust your actions to match the reality of the situation; make sure potential clients know how much you do want their business. An attitude of ?they need me more than I need them? always fails; treat your customers as though they?re more valu- able than you and your company?because they are. If you give your clients genuine reasons to like you, demonstrate an authentic willingness to do anything for them, are consistently helpful, and never quit, they will want to do business with you, whatever your business is.

Any time someone who serves me continues to exhibit that hungry desire to do anything humanly possible to earn my business, I find every reason possible to support him or her. I stick with that person as long as he or she keeps exhibiting that kind of hungry attitude, and I don?t think I am unique this way. Most people want to be taken care of and paid attention to, and they crave this type of service from people because it is lacking in our culture. People wonder why their businesses fail in a country with count- less citizens barely making it financially who are subject to the whims of the economy, dependent upon credit to pay their bills, and enslaved to someone else?s economy.

If you want to expand and conquer and create a per- sonal economy that allows you freedom and control, then make sure everyone knows how badly you want their busi- ness. Act like your life depends on every transaction, every moment of every day. And if you have to tell someone that you really want his or her business, well then, you probably aren?t acting hungry enough!

CHAPTER

Date: 2016-06-12; view: 106