We should all be excited when someone walks in our door to buy from us, especially when we see they are serious about buying.  Nothing screams “I’m serious about buying” like a shopper that has done the necessary homework and is standing at the point of sale waiting to hand over some money.  In fact, it bodes well for us that they are standing at our doorstep with the competitors ad and not vice versa.  (And it’s even better when you consider that’s your competitor’s ad dollars that were spent to get a customer in your door!)

So how do we handle situations where the customer is obviously knowledgeable about the product or savy enough to know how to negotiate and shop around?!

Simple.  We have to know our product or service and we have to know our industry.

If the product is something very unique and hard to reproduce, it’s easy to distinquish your product from the competitions’ and therefore you can focus on that during your sales pitch.  Move the conversation away from price and focus on the characteristics of your product that make people want to buy it.

Ah, but what if you’re in an industry where price sells?  Let’s face it, anyone can sell something so unique and desirable that they have to go through you.  But when you’re in an industry, say car sales, where the customer can easily walk out the door and over to another store there has to be more than just a good product.

Smile.  Being friendly and engaging customers promptly when they arrive shows that you are sincere about helping them.  They will quickly push price to the back of their minds if they perceive that the service is better at your establishment.

Be interested.  Ok, so even with your bright smile they haven’t forgotten about that lower price in the ad they’re holding.  Ask questions and listen intently to what they say and how they say it.  If that price is so good, why are they coming to you?! 

During the conversation, casually repeat some of their important points…  “so you want to find something similar to this (pointing toward the customer’s ad) but in a red or maroon color?” and then once the customer acknowledges your understanding of what they want, immediately follow it up with some comments about what you can do beyond selling the same product to them.  “I think you will find we have the same product as XYZ Company but we also want you to know….(insert your selling point here!)  i.e. we have a great customer loyalty program, we have a more liberal return and exchange policy than XYZ Co., etc.”

Have a plan in place and be ready to ask the customer for a committment.  At some point you will have to ask the customer if they will accept your price and terms.  Do whatever you can to get a sale closed before the customer walks out the door.  You don’t want the customer to have second thoughts and go back to the competition.  Present your best offer and regardless whether the customer accepts the offer or walks out the door say Thank You and be sincere. 

Saying something like “I’m sorry we couldn’t be of service this time, but we hope you will give us another shot in the future” or “Thank you for bringing in that ad, we appreciate knowing what the competition is doing and we certainly value our customers.  We would be happy to honor their price and we appreciate your loyalty.“ 

Ok, some of this can sound rather canned and insincere if not expressed properly, but you have to make your best offer and no matter what the customer’s decision, thank them for coming to you before making a purchase.  Every one of us has been in that customer’s shoes and we all enjoy being told thank you.  Sometimes your politeness and sincerity can even lead to referrals or future business with the customer despite this particuar sale not being closed. 

Why are you still sitting here reading?  Go sell something!

Thomas Goodwin is an Ohio licensed real estate agent (Realtor) and insurance agent.  He is the Founder and CEO of Northern Pine Properties, Inc., a real estate investment, development, and management company in Cincinnati, Ohio.

Regardless whether you have a retail store or provide a professional service, recognize your customers and show appreciation for their business.  You could accomplish this any number of ways: a sale, giving out free samples, holding a seminar or luncheon, giving out coupons for future purchases, and giving or requesting referrals.

Create a profile of your customers.  Why do they come to you instead of your competitor?  Ask for feedback from your customers regarding what they like about your business and what things they wish were different.  Asking the customer for suggestions and feedback is a great way to build goodwill and show the customer that you value their input without having to spend a single dollar to earn that feeling of trust and appreciation.  Feedback cards or online feedback can also be a great monitoring technique when you are not there to supervise your employees.  

Focus on your customer this month and make March a mad month for your business!

Thomas Goodwin is an Ohio licensed real estate agent (Realtor) and insurance agent.  He is the Founder and CEO of Northern Pine Properties, Inc., a real estate investment, development, and management company in Cincinnati, Ohio.

• The phrase Do you want fries with that? is actually a great example of two things: suggestive selling, or “up-selling”, and knowing your customer.  In this case, the customer has approached the company and said I would like to buy a burger.  The company knows its customers like fries with their burgers. 
  The suggestion that the customer try some fries will sometimes be met with a positive response and sometimes a negative response.  Either way, the customer is already at the point of sale so it costs the company no additional money to market the fries to this customer.  Amazon is a great example of a company that knows its customers and practices this suggestive selling.
• Responding to customer requests quickly will only be met with disappointment if it sacrifices quality and accuracy.  I have yet to see someone unhappy when his or her order is delivered quickly and correctly in a fast food drive through.  I have, however, seen many people sigh, cuss, frown and so forth when they open the bag and discover the order is incorrect or incomplete.  Regardless what industry you are in, responding to customer requests quickly and accurately will help build goodwill – that intangible quality that helps give you the edge over a competitor with a similar product.

There are many more examples of things we should do and things we should NOT do but I wanted to focus on the two items listed above.  Feel free to post your own thoughts and experiences via the comments section of this blog.

Thomas Goodwin is an Ohio licensed real estate agent (Realtor) and insurance agent.  He is the Founder and CEO of Northern Pine Properties, Inc., a real estate investment, development, and management company in Cincinnati, Ohio.  He also had the joy of working in a Dairy Queen restaurant when he was 16.

Kathy Sierra of Creating Passionate Users provides a great list of ways to Be Provacative

• Be Visual
• Be Different — Break Patterns and Expectations
• Be Daring
• Change Things Regularly
• Inspire Curiosity
• Pose a Challenge
• Be Controversial and Committed
• Be Fun
• Be Stimulating. Be Exciting. Be Seductive.
• Help Them Have Hi-Res Experiences

The full article goes into detail about each of these tactics. Definitely worth reading: Be Provacative

There are plenty of small businesses that need invoices that look professional, are easy to manage, and easy to send out. Blinksale, Freshbooks, and Simplybill caught on to this market and have developed websites that offer small business owners an easy way to deal with invoicing (amongst a few other things). On the outside it looks like they are all doing the same thing, but if you dig a little deeper there are some key differences that may help determine which ones are going to sink or float.

• SimplyBill � “Nothing really stood out as unique, different, strong, or with much impact.“
• BlinkSale � “They picked their battle and stuck to it with outstanding execution.“
• FreshBooks � “They target their solution well and have enough options to keep people happy, but not so many that it loses its simplicity.“

Read the full review of these three services: Online invoicing, the contenders

I�ve just landed at La Guardia Airport in NY, and in the taxi on my way in, my favorite hotel, which recently put in a system to track flight arrivals of its preferred customers, sends me an email on my Windows Mobile device �Mr. Straumann, we see your flight has arrived and you are most probably in the taxi on the way to the hotel. You are checked into Room 1625 on our preferred floor, a single, non-smoking room with a king-sized bed, and we also assumed you would like the Tempur-pedic pillow you requested on your last visit here, so we took the liberty of putting one in your room. Please enter key code 1066 on the keypad near the door handle to enter the room, that code corresponds to your month and year of birth and should be easy for you to remember. We also note that the last time you visited us, you ordered a late dinner of a club sandwich. Would you like one sent to your room after you arrive? If so, please reply to this note and when you enter the code in the room lock we will be notified of your arrival and have your meal brought up right away. Thank you for visiting us again.�

[Via Johnz Space]

Method 1: Same Line Item

1. Description: Replacing light bulb / Quantity: 1 / Price: $10.00 / Total: $0.00

Total Balance Due: $0.00

Method 2: Separate Line Item

1. Description: Replacing light bulb / Qty: 1 / Price: $10.00 / Total: $10.00

2. Description: Light bulb discount / Qty: 1 / Price: ($10.00) / Total: ($10.00)

Total Balance Due: $0.00

Important keys to remember:

• Invoice everything! Doing this “makes it official” in the customer’s eyes.
• Always make sure to clearly state the regular price of every product or service. This establishes the value of everything you provide.
• Explain to your customer why you are providing this product/service for free. Optionally, explain that this is a one-time offering.

Giving away things for free is fun and rewarding, sacrificing value to do so is not. Make sure your customers understand and appreciate the value of the product or service that you are providing them at no cost. Your life will be easier for doing so.

Reading a business magazine in the doctor’s office inspired Joseph Tantillo to try his hand at online retailing. At the time, he and his wife were expecting their first child and wanted to work from home. An article about starting an online store jumped out at him, he recalls—and, as a member of a fraternity in college, he decided to sell personalized Greek apparel to that market.

…

Using the strong Greek network worked, as he’s built GreekGear.com’s yearly sales to $1.9 million.

Read the full post about GreekGear.

1. Seek transparency and understanding with your partners early. Issues get harder as time passes

2. Startup founders work long hours for a reason. There’s more work than there are people. If you’re seeking balance, seek it elsewhere.

3. Bad customers will drain you of passion. Really bad customers will drain you of both passion and profits. Unfortunately, most bad customers will degenerate into really bad customers if you don’t do something about it.

4. If you’re changing directions too often, worry a little. If you’re changing people too often, worry a lot.

5. It’s lonely at the top, but even lonelier at the bottom. In the early days of a startup, hardly anyone wants to talk to you (except some desperate vendors).

Read the full list of insights.