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>What I’ve written in this post may seem like >teases—just enough information to get you interested >in doing some things—buying products & services. I >won’t deny that aspect in what I’ve written. I also >want to encourage you to not give up or only try to >maintain your status quo. Your status quo will >probably get worse if you don’t proactively make it >better. > >There are probably a few solutions for each of your >marketing problems. Each problem could be solved by a >range of solutions, which would vary in effectiveness >& efficiency depending on the problem severity & >distinct differences. > >Some “solutions” may be “proven methods” from specific >case studies. I cringe & laugh when I hear & read >about “proven methods”. Why? > >Example: It’s been proven by a retailer, it’s less >expensive & more efficient to own trucks & pick up >products directly from factories or shipping piers, >then haul those products to stores. Relying on >trucking companies costs more money & causes problems >from lack of control. > >NOTE: It’s been proven by Wal-Mart. If a small >retailer does it, it’d be more expensive & less >efficient. So, please be careful about using proven >methods. There are many variables involved, which >aren’t always described—or even considered—in most >case studies. > >There’s an art & science in determining which methods >to use without changes, which to adapt & which to >avoid. > >I don’t have space to fully define & describe what I’m >introducing. Some of it is complex because there are >unique variables in each situation. To cover each >possible nuance would require a long book. I doubt >most of you would read all of it even if I wrote it. > >I want you to realize there are solutions, so please >don’t give up. > >It may seem like I’m trying to blow your mind, but I’m >not. If I were trying to blow your mind, I could add >more variables for you to consider. You probably don’t >have enough time to run your business, serve clients & >figure all of this stuff out. I’m just giving you an >overview of what should happen. You can probably have >marketing consultant figure it out for you & be paid a >percentage of the sales revenue. Otherwise, if you can >afford to pay an employee, s/he could do it for you. > >You may be pleasantly surprised to find you probably >can afford to hire a marketing consultant. Considering >economic fluctuations & growth of big competitors, you >probably can’t afford to not have a marketing >consultant. > >Much of this is universal, but since I specialize in >small retailers, I’m mostly focusing on retailing. >Oops, I almost broke the surprise by revealing I’m a … >(you probably realize it already) > >It’s common to make a discount offer for 1st time >customers/clients to lower the mental & financial >barriers to buying. It’s a legitimate method, but >there are some drawbacks. >1a- If you use discounts like this, you need to be >sure it’s clear you’re doing it as a promotion, it’s >not your regular practice. But unless you explain it >well, people may think since you gave them a discount >once, you can & will do it again. >1b- People are apt to forget the details; you may end >up reminding them why you made a specific offer. There >are general reasons, so you don’t have to memorize >complex reasons. >2- If current customers didn’t get a discount on their >1st transaction with you, it’ll seem unfair to give it >to others. > >Some businesses also give discounts to reactivate >customers. It’s legitimate, but then why wouldn’t >customers stop buying, just so they can get a >reactivation discount again? If they don’t need what >you offer every month, they can afford to wait & may >feel they’re better off if they wait. > >You should do your best to limit optional products & >services to 50% or less of what you offer. If you only >offer luxury items, offer products & services people >need to preserve their investments. Market these as >necessities so you & those who buy from you get the >highest sustained benefits. Remind them-it doesn’t >make sense to let their luxury items deteriorate. > >As Jay Abraham advises—treat those who buy from you as >clients because clients are under your care & >protection. My corollary is--Customers may buy from >you occasionally. Clients have professional/business >relationships with you because they know you care >about them. > >When you know who wants & needs specific >products/services & why, you’ll have a strong basis >for making offers. > >It’s better for you to keep clients buying. Hopefully, >it’s more important for clients to keep buying from >you. By correctly using database marketing, you can >avoid the need for reactivation offers. > >You could probably buy or share an inexpensive used >computer with a basic (inexpensive, easy to learn & >use) database or mailing list program. > >There may be secretaries who’ve been laid off or who >quit to care for young, disabled &/or elderly family >members who could maintain your customer database. As >long as the work is done on time & the right way, it >shouldn’t matter what time of day a person does it. >Ask a lawyer about laws covering independent >contractors. You could make it possible for an >independent contractor to survive financially & care >for loved ones too. S/he could also type & make copies >of your letters, post cards or flyers. > >You need to consistently offer & provide values people >will want & hopefully often need. You probably can’t >afford to keep selling based on low prices, unless you >can sell a high volume or get money for introducing >offers from other businesses to your clients. There >are ways to set up arrangements like this so your >costs are low & your profits are high. > >Some business owners get more profit by introducing >their clientele to other businesses than they do by >selling products & services. This is called “Host >Beneficiary Relationship Marketing.” Here are URLs you >can use to get explanations- >http://www.voy.com/31049/2/263.html >http://www.voy.com/31049/1/386.html >http://www.abraham.com/articles/Win_Win_Joint_Ventures. >html >http://www.crbec.com.au/Resources/HB%20Marketing.htm > >There are also ways in some businesses to offer lower >prices in exchange for more value from clients. >1- You can reduce a price when a client refers >somebody else who buys from you. (Be careful about the >“referred” person returning what s/he purchased for a >refund. S/he may’ve just bought from you, so the >prior—referring--client could get a discount.) >2a- You can have clients buy in bigger volume, even if >they get others who share the lower price & value. >Example- You could price product A at $2 for 1. If a >customer or group buys 50, you may charge $1.50 for >each. >2b- You may wonder how you could afford to do this. If >a supplier of product A will give you a volume >discount, you can still get a profit while selling >product A for a lower price. > >Maybe you were going to order 100, which would >wholesale for $1 each. If 2 groups of clients buy 50 >(per group), you could order 200 & maybe get each for >75¢ at wholesale. This way you get price shy people to >buy, when otherwise they wouldn’t have. Plus you get >more profit from each individual $2 sale because the >volume wholesale price was lower. Plus if you sell the >product in boxed lots, you won’t have the stocking or >displaying labor costs. > >The volume transactions should be faster & cheaper >because 50 products are sold at once, instead of >individually. You’ll be serving & satisfying more >clients in less time. > >If you have these clients (who preorder) also prepay >or at least make a deposit, you may be able to pay the >supplier in full when you order. Then you won’t have a >finance charge to pay & the supplier may give a >discount for paying upfront. > >So, if you’ll offer new clients a 1st time discount or >offer reactivated clients a discount, you can preserve >your price credibility by having them preorder or buy >before a date so you can make bigger orders & get >volume discounts &/or reduce the other costs I wrote >above. > >There are more ways to preserve your price >credibility, but I won’t go into them now. This >article is getting to be too long already. Please >remember, what price credibility means. If people >think you’ll lower your prices eventually, they’ll >wait to buy at lower prices. It means you have little >or no price credibility. Price credibility means you >know how valuable your products/services are & how >much money you need to stay in business. So, you won’t >keep lowering prices to get more sales, unless >something else (positive) happens. > >I plan to continue this discussion thread later. >Please submit your comments, insights & questions. > >Dennis S. Vogel >thrivingbusiness@email.com >Being in business is risky enough; please don’t >increase your risk by doing ineffective & inefficient >things. You can learn many of the right marketing >methods from my free information web site & this blog. >http://www.lakefield.net/~thrivingbusiness/ >http://www.voy.com/31049/

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