Two turkeys read the advertisement for Flying Lessons. Excited to fly, they spent the day at the flying lessons flapping, and soaring and seeing life from a new vantage point. At the end of the lesson as they were walking home, one said, "that was great. When's the next lesson?"
Too often we read or hear great advice and then WALK home.
Jason, a reader of this blog, took what was said in the previous post on negotiating and the same week put it to the test. He had a product that he was trying to find out if there was a market. Jason did the following very right things:
1. He immediately asked the customer what he needed. The customer also stated that his budget was very small and couldn't afford even $100 to $300.
2. Jason then met with him with solutions to the customer's problem. (In person is always best.)
3. Jason established the value he could bring and got the customer excited about the possibilities. (You do that by knowing what he needs and showing him how you can do it.)
4. Once the value was establish and the desire was high, the customer asked the price.
5. Jason astutely said, "I've asked another professional what he would charge and he said his fee would be $3,000 to $5,000." He stopped and let the high price sink in. The customer gasp a little and said, "Ouch. $5,000 is beyond my budget."
6. Jason heroically stepped in and said, "That's okay. I can do it for about half that." A 50% discount is always compelling.
7. The customer was quite pleased to get such a good deal.
8. Jason was quite pleased to have gotten the job for $2,500. Better than the $100 to $500 the person originally thought was their maximum.
The same principles work on any product or service.
The same principles work on any amount -- $1 to millions. I'm working on a deal right now worth greatly in excess of monetary imagination and the offer has been tendered for far more than I first thought. Happily.
The prime lesson here: Go do something. Go fly. Don't walk home.
Saturday, May 29, 2010
Tuesday, May 25, 2010
How high up is up?
"So," says a potential buyer of your product, "How much do you charge?"
No doubt you've been asked that. Often we are quite sure of the price we want but just saying it causes palpitations because we really want the sale.
Here's a tip on how to make this less painful and more profitable.
Remember that prices are just numbers and with numbers there is no such thing as a big number. No such thing as "priced too high." It's a matter of establishing value. If you value high, and the customer highly values you or the product, then a high price is just the right price.
One way to get there from here is to use "the big number." Here's an example:
A singer sang her heart out every day in the subways of New York. Not a very glamorous place, but, she had a spot the subway system reserved for her, people came to listen and they left paper money, not coins, in her tip box. She was making pretty darn good money and the experience helped her in many ways. But that's beside the point. The point begins when a rather dapper fellow who'd been listening through a number of arias introduced himself. He was the personal executive secretary for a wealthy gentleman out of Boca Raton, Florida. One of his many duties on this trip to New York for his boss was to find a wonderful singer who could organize and produce a production of La Boheme at his home in Florida.
The singer said she'd staged operas and would have no trouble. Then he asked, "How much do you charge?" Fortunately this singer had learned some of the things I teach on negotiating and made sure she 1) established her value 2)asked lots of questions about what would be expected, 3)didn't say a price but instead, 4)stated, "Operas are not cheap to stage. You know the Metropolitan's budget for an opera begins at $4 million." She stopped and let there be a poignant pause.
"Oh," he said, "I can't spend nearly that much..."
Of course not and the singer had no intention of getting that much. But, what she did was determine how high "high up" is. Everyone has a price in mind when they're negotiating to buy something. Your job is to break that ceiling and establish a new ceiling. She had taken a ceiling of probably $20,000 or so and raised it to $4 million. NO... it doesn't mean the person thinks the price is going to be in that neighborhood, but, in his mind the ceiling was $4 million and everything he was now going to pay would be less than that. Now you're discussing value on your terms.
Someone asked my brother how much it would cost to buy a corporate jet. I know the person who asked had in mind that $3 million would be a high price, but could accept a price of $2. My brother began by saying a new jet, fully loaded could exceed $10 million. "Ouch. Wow. Whew. That's a lot of money," said my friend. But in saying so his ceiling of $3 million was broken. When my brother showed the guy a plane for $8 million he still thought it was too much for him, but, understood the ceiling. When my brother showed him a very good jet, that because of the bad economy the company was selling for less than $2 million, the friend thought it was a steal. In a matter of minutes the price he considered unreasonable had become reasonable by using a high ceiling.
If you figure a 50-50 split is reasonable and desirable, begin with an example of someone who did well with a 90-10 split (you get the 90 and they get the 10). Chances are the person will be very thrilled with a 50-50 split when all is said and done.
It's a matter of understanding the human mind. Wal-Mart understands it perfectly. They advertise "cutting prices" and show a number like $9.57 and slash the price to $5.01. Wow. What a slash. Never mind that the object has changed. The perception of price has so we, as the consumers, believe we're getting a value. And you probably are. But now you're leaving the store, with the product, and feeling very good about it because the high ceiling price was smashed.
Thought for the day: Because all prices are based upon PERCEIVED value, the first thing you must do is establish your value. The second thing is show more value. The last thing to discuss is price... and only have value has been established.
No doubt you've been asked that. Often we are quite sure of the price we want but just saying it causes palpitations because we really want the sale.
Here's a tip on how to make this less painful and more profitable.
Remember that prices are just numbers and with numbers there is no such thing as a big number. No such thing as "priced too high." It's a matter of establishing value. If you value high, and the customer highly values you or the product, then a high price is just the right price.
One way to get there from here is to use "the big number." Here's an example:
A singer sang her heart out every day in the subways of New York. Not a very glamorous place, but, she had a spot the subway system reserved for her, people came to listen and they left paper money, not coins, in her tip box. She was making pretty darn good money and the experience helped her in many ways. But that's beside the point. The point begins when a rather dapper fellow who'd been listening through a number of arias introduced himself. He was the personal executive secretary for a wealthy gentleman out of Boca Raton, Florida. One of his many duties on this trip to New York for his boss was to find a wonderful singer who could organize and produce a production of La Boheme at his home in Florida.
The singer said she'd staged operas and would have no trouble. Then he asked, "How much do you charge?" Fortunately this singer had learned some of the things I teach on negotiating and made sure she 1) established her value 2)asked lots of questions about what would be expected, 3)didn't say a price but instead, 4)stated, "Operas are not cheap to stage. You know the Metropolitan's budget for an opera begins at $4 million." She stopped and let there be a poignant pause.
"Oh," he said, "I can't spend nearly that much..."
Of course not and the singer had no intention of getting that much. But, what she did was determine how high "high up" is. Everyone has a price in mind when they're negotiating to buy something. Your job is to break that ceiling and establish a new ceiling. She had taken a ceiling of probably $20,000 or so and raised it to $4 million. NO... it doesn't mean the person thinks the price is going to be in that neighborhood, but, in his mind the ceiling was $4 million and everything he was now going to pay would be less than that. Now you're discussing value on your terms.
Someone asked my brother how much it would cost to buy a corporate jet. I know the person who asked had in mind that $3 million would be a high price, but could accept a price of $2. My brother began by saying a new jet, fully loaded could exceed $10 million. "Ouch. Wow. Whew. That's a lot of money," said my friend. But in saying so his ceiling of $3 million was broken. When my brother showed the guy a plane for $8 million he still thought it was too much for him, but, understood the ceiling. When my brother showed him a very good jet, that because of the bad economy the company was selling for less than $2 million, the friend thought it was a steal. In a matter of minutes the price he considered unreasonable had become reasonable by using a high ceiling.
If you figure a 50-50 split is reasonable and desirable, begin with an example of someone who did well with a 90-10 split (you get the 90 and they get the 10). Chances are the person will be very thrilled with a 50-50 split when all is said and done.
It's a matter of understanding the human mind. Wal-Mart understands it perfectly. They advertise "cutting prices" and show a number like $9.57 and slash the price to $5.01. Wow. What a slash. Never mind that the object has changed. The perception of price has so we, as the consumers, believe we're getting a value. And you probably are. But now you're leaving the store, with the product, and feeling very good about it because the high ceiling price was smashed.
Thought for the day: Because all prices are based upon PERCEIVED value, the first thing you must do is establish your value. The second thing is show more value. The last thing to discuss is price... and only have value has been established.
Saturday, May 15, 2010
Steps to creating an Advertisement that Works
PS. After writing this I wondered if, when you read the blog, you might question whether or not this applies to what you're doing. It does. At least it applies in all of the ads I've created in the following areas: 1)non-profit fund raising; 2) construction and real estate development, US or abroad; 3)consumer goods like books, pearls, investment grade numismatics and philately, flags; 4)concerts, recital, stage productions, voice studios, compositions; 5)Internet and computer products; 6)educational courses (live, taped, printed); 7)franchises; 8)billion $ transmission project--currently nearing completion; 9) international tours; and 10) health and diet products. I left stuff out. But, in all of these, the following steps to creating an advertisement apply:
Now for the blog...
You have a new product or service. How do you get and keep clients?
1. Firmly establish in your mind the ideal customer’s profile.
2. Find one of those ideal customers and speak with them, face to face, about what you do. See what “turns them on.” Listen. Ask questions about what they would like. What would compel them to come to you for this service. What bothers them about the last product like yours they tried? What are the final results they want from you? Listen, ask, listen, ask and listen some more. Never tell them what they need or disagree with their expectations.
3. In a quiet, tranquil place and time, write that person a letter. Begin by saying, “You want _____ ... and you want ______ . Your goal is _____. You like ______ and love ______ and desire to have ______. Here is how I can help you get what you want...____________... Tell me if you think I can help you. Please call me (write or email me or let me come by and talk to you) so I can better understand if I can be of assistance to you.
4. Put this letter aside and repeat step 2 and then step 3. Repeat this process several times. If you have a sales force, get them to do the same thing.
5. Once you’ve repeated this enough, you should be ready to sit down and examine the letters and see what benefits to the customers keep coming up, and which come up with the most passion from your customers. You’ve now found the universal desires. You’ve discovered that no one wants your product, they only want what your product does for them. You may have also discovered how you must change your product to fit what the customer needs it to do for them. Change your product so it now fits the universal demands from people. They have to buy it because it is exactly what they want.
6. Armed with this marketing intelligence report, you’re ready to ask for the sale. Write it down in a letter. Write to ONE person. Think of just that one client. Begin as you did in step 3. Begin at the beginning – with the greatest benefit they have demanded. Then go to the next until you’ve gotten them so excited with what you are doing for them. Notice we don’t begin by talking about YOU, but about THEM. And we keep focusing on THEM until they are so enraptured they’re demanding to know who going to provide all of this for them and how they can get your product.
Notice price is not part of the discussion. It will come, but don’t be too anxious to discuss that. Establish the VALUE over and over. At some point price will be mentioned. The less of a feature the price is the better. It should be a natural conclusion that is accepted as a matter of course. If they’re hung up on price, you haven’t established the value or the overwhelming benefits. People will afford what they want. Value is about what they want. They will then trade value for value.
7. Once you’ve written – and I mean written, not spoken, or discussed or thought about – this logical letter that gets them emotional and demanding to have your product, NOW you can begin to think about what vehicle would best carry your message. Today you have many choices: face to face discussion is usually the most effective. Telephone is next. Emails and letters follow. Space ads in “affinity” publications where you rifle-shot your pitch are next. At the bottom, last resort are broadcast media or general advertising. It’s the least expensive per sale.
Now for the blog...
You have a new product or service. How do you get and keep clients?
1. Firmly establish in your mind the ideal customer’s profile.
2. Find one of those ideal customers and speak with them, face to face, about what you do. See what “turns them on.” Listen. Ask questions about what they would like. What would compel them to come to you for this service. What bothers them about the last product like yours they tried? What are the final results they want from you? Listen, ask, listen, ask and listen some more. Never tell them what they need or disagree with their expectations.
3. In a quiet, tranquil place and time, write that person a letter. Begin by saying, “You want _____ ... and you want ______ . Your goal is _____. You like ______ and love ______ and desire to have ______. Here is how I can help you get what you want...____________... Tell me if you think I can help you. Please call me (write or email me or let me come by and talk to you) so I can better understand if I can be of assistance to you.
4. Put this letter aside and repeat step 2 and then step 3. Repeat this process several times. If you have a sales force, get them to do the same thing.
5. Once you’ve repeated this enough, you should be ready to sit down and examine the letters and see what benefits to the customers keep coming up, and which come up with the most passion from your customers. You’ve now found the universal desires. You’ve discovered that no one wants your product, they only want what your product does for them. You may have also discovered how you must change your product to fit what the customer needs it to do for them. Change your product so it now fits the universal demands from people. They have to buy it because it is exactly what they want.
6. Armed with this marketing intelligence report, you’re ready to ask for the sale. Write it down in a letter. Write to ONE person. Think of just that one client. Begin as you did in step 3. Begin at the beginning – with the greatest benefit they have demanded. Then go to the next until you’ve gotten them so excited with what you are doing for them. Notice we don’t begin by talking about YOU, but about THEM. And we keep focusing on THEM until they are so enraptured they’re demanding to know who going to provide all of this for them and how they can get your product.
Notice price is not part of the discussion. It will come, but don’t be too anxious to discuss that. Establish the VALUE over and over. At some point price will be mentioned. The less of a feature the price is the better. It should be a natural conclusion that is accepted as a matter of course. If they’re hung up on price, you haven’t established the value or the overwhelming benefits. People will afford what they want. Value is about what they want. They will then trade value for value.
7. Once you’ve written – and I mean written, not spoken, or discussed or thought about – this logical letter that gets them emotional and demanding to have your product, NOW you can begin to think about what vehicle would best carry your message. Today you have many choices: face to face discussion is usually the most effective. Telephone is next. Emails and letters follow. Space ads in “affinity” publications where you rifle-shot your pitch are next. At the bottom, last resort are broadcast media or general advertising. It’s the least expensive per sale.
Wednesday, May 5, 2010
Making Your Advertising Work
Advertising is a pain. We see so many advertisements everyday that the thought of adding to the congestion and information overload is nauseating. But, if no one knows you have something to benefit them, then you'll stay where you are -- business wise.
The trick is to somehow make advertising that doesn't look, feel or seem like advertising. That's counter-intuitive because of all the ads we see and figure we've got to be like them. But no one wants to be sold something. They want what you have and you just need to let them know how you can benefit them. Keep it simple.
It's not easy. So... I've decided to do something about this malaise you might find yourself in. I'm going to help you write your ad. Help you apply the principles.
Bring your ads to my office on Wednesday, June 9, at 6 PM. I'll have some food there so we won't starve. Bring a magazine that you like and we'll look at their ads and see which ones would be appropriate for you to emulate. I'll have some of my associates there who know how to write great ads and together we'll make an ad that will get you the business you need.
Just call my office at 801-228-1510 and ask for David Sefcik. He'll give you directions. I have to pay my guys so there will be a small fee. David will help you with that as well.
In preparation, begin making a thorough list of every way you or your product can help someone else. Even the most trivial sounding benefit might be used. This is all about letting someone get what they want and make their life better. In turn, you get what you want. Put them first.
See you there.
The trick is to somehow make advertising that doesn't look, feel or seem like advertising. That's counter-intuitive because of all the ads we see and figure we've got to be like them. But no one wants to be sold something. They want what you have and you just need to let them know how you can benefit them. Keep it simple.
It's not easy. So... I've decided to do something about this malaise you might find yourself in. I'm going to help you write your ad. Help you apply the principles.
Bring your ads to my office on Wednesday, June 9, at 6 PM. I'll have some food there so we won't starve. Bring a magazine that you like and we'll look at their ads and see which ones would be appropriate for you to emulate. I'll have some of my associates there who know how to write great ads and together we'll make an ad that will get you the business you need.
Just call my office at 801-228-1510 and ask for David Sefcik. He'll give you directions. I have to pay my guys so there will be a small fee. David will help you with that as well.
In preparation, begin making a thorough list of every way you or your product can help someone else. Even the most trivial sounding benefit might be used. This is all about letting someone get what they want and make their life better. In turn, you get what you want. Put them first.
See you there.
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