Tips from the Top®: Small Business Tips From Business Owners For Business Owners
Are Your Sales People Scary?
Have you ever wondered if your salespeople may be scaring off buyers? The fact is that most salespeople are downright frightening. The list of scary behaviors goes on forever, but here are five of the most popular ways salespeople scare away your new business…Read more
Are Your Leaders Listening? Really?
I wish I had a quarter for every time I’ve heard from managers and employees that "we’re just not being heard." We hear a lot lately on all of the key traits of effective leadership. Yes, a leader must have drive, determination, and commitment to be at all effective…Read more
I recently analyzed my existing business from a geographic perspective. I was updating my marketing plan and wanted to focus appropriately. I was a little surprised when, after sorting my customers by zip code, it became apparent that I had a very strong cluster of business in one relatively small geographical space. I had been leaning toward focusing on an outlying area where we had virtually no business. Instead we will focus our limited resources in an area that will be less expensive to serve and where we have the potential to be a dominant force.
Leave the Fires for Later
I recently discovered that because I knew cash flow was important, I would come into work and first deal with the financial calls, although I wasn't at all motivated to do this. The phone would ring and I would have one call after another – all fires that I needed to put out. What my fellow TAB Board Members suggested was that I turn the phone off until 11:00 A.M. so I could then accomplish many of the things that I wanted to get done first. From there, I could then work on the fires with more motivation and better attention to the cash flow priority.
Offer Three Prices
In many customer proposals, pricing will vary with the level of service or the quality of the products presented, which can result in more than one option being available to the customer. The higher the level of service or product quality, the higher the price.
When presenting pricing to your clients, consider offering three options versus the customary two. With two pricing options, the client is likely to assume they are overpaying with your higher priced option, and instinctively selects the cheaper one. As an alternative, consider offering a 3rd option by including a significantly higher priced option that is likely to exceed their budget or need. Wanting to naturally avoid overpaying, the client is now more likely to choose the middle option. Of course, the middle option is the higher of the original two, and the one you hoped they would select all along.
Kanban for Inventory
We have found that putting Kanban systems in place for parts inventory replacement works very well. Kanban is generally a system to control the logistical chain from a production point of view and is not an inventory control system, but if you employ Kanban techniques, it works very well for parts inventory replacement.