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Magicians never tell the secrets to their tricks. Once they do, the magic and wonder disappears, and the magician is no longer valid to anyone anymore. He can get replaced by someone cheaper or younger. In business, you can learn a lot from them. To someone that lacks your skill, your knowledge is extremely valuable. They will constantly try to pick and prod it out of you and if you let them, you lose your leverage and power. A lot of people want your knowledge, but they don’t want to do what it takes to get to that point. They want you to do the research, spend the time and test it out first then just give it to them. I wrote about this in an earlier post.

I also wanted to talk about another reason you should safegaurd your knowledge: creating competition. Sometimes people will see your success, and want to duplicate it for themselves. They will come off as a friend, in an attempt to take what you have inside that head of yours. To see what they can pry out of you. In my line of work, often people want to tap into my brain. They know I’ve spent thousands and thousands of dollars and years of time researching and testing tactics or products to find the best. Many try to see what they can get out of me for free. You must be careful not to give too much of your ideas and knowledge away… especially for free. Once you give away the farm, you lose your value and they will take your ideas, use it for themselves and forget you ever helped them. I’ve had to learn that the hard way. When I first started, I would give away too much. Pretty quickly I created competition for myself. You give man a fire, and he’ll burn everything down. I found out that if you create a titan, they will forget they were once merely human with you.

I am a pretty open book to most, but I rarely ever give out my best secrets and knowledge. I will hold back what I know. I may throw out some gems to them to help, but I keep the best locked away inside my head for my business and for my personal clients that hire me.

Never show anyone. They’ll beg you and they’ll flatter you for the secret, but as soon as you give it up… you’ll be nothing to them. – The Prestige

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Got an email today from a reader, Ken asking about how to deal with unhappy customers. His question: “I have a customer that I am constantly doing so much for, but they don’t see it. I give them extensions on payments, I add incentives, I give away free services, but still they are unhappy. I’m at a loss. What can I do to please them?” Ken, most likely you never will. Some people just will never be happy with the work you do. The meals too hot or cold, the design isn’t right, what they were happy with before, they aren’t happy with now. In business, it’s going to happen, no matter how good you are. There isn’t a lot you can do about it because they just can’t be satisfied.

When dealing with customers, I try to go above and beyond as much as I can. When by contract I’m required to spend 2 hours a month on something, I’ll spend a day or more. Sometimes a few days. When I’m required to build a 10 page website, I’ll build 20. When it would cost a client thousands to hire someone to shoot and edit a video, I’ll snap it and deliver it for free. Why do I do this? Because I care and try to over-deliver. I will often throw in extras at no charge just to do something more to show value for being my customer. This is often to my own detriment because many take advantage of the generosity. I believe those unadvertised bonuses make a huge difference, but you have to also be careful to not train them to expect free stuff and extensions all the time. Make sure they see the value behind the extras. Show them how long it takes, how much value you are giving them. Show them what you normally charge for the extras.

No matter how great a job you do, there are some folks that just won’t see the value though. Those types you need to get rid of. When you focus your attention on the people that do not appreciate what you do for them, you can’t focus on the ones that do. The extra 20 hours you spent trying to please that one person who will never be happy with you or doesn’t value what you do, could be spent going after a new client that will. How many phone calls to prospective clients could you make in 20 hours? Fire your bad customers. I have personally fired two in my life. It just wasn’t worth keeping them around. You shouldn’t waste time trying to validate them being a customer with you. If you did quality work for them, and they don’t see it, let them go hang themselves with a different business that won’t offer as much value. Let them see just how great they had it. Focus on getting customers that love your work. Ditch the ones that don’t. There is too much money to be made with people that will value what you do. Upfront, you may lose a little bit of money from that customer, but in the long run you will be happier, have much less stress and be more profitable.

 
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The other day, I attended a seminar where the speaker, multimillionaire Blake Mallen, said:

“You are either politicking or producing, but you can’t be doing both.”

Gossip or politics doesn’t get you any closer to your goals. Most of the time it keeps you from taking action and doing any real work. If you look at most true producers and achievers, they simply don’t have time, nor the desire to be apart of it. They are to busy creating value and taking steps towards advancement to care about whose dating who, or “showing” everyone how successful they are.

There are a lot of organizations where people get so caught up in the water-cooler gossip that they never produce any results in the process. They may be “in the know” or part of the “in” crowd, but usually no real production occurs from it. If you want to go after your goals, you must produce and leave the gossiping to the others that don’t really want success. What kind of a return does the drama between Sue and Charles produce? How closer to your goals does running around keeping up appearances get you? What money is made from gossip or politics?

You can either be politicking or producing, but you can’t be doing both. Me… I’d rather have the results.

 
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It amazes me the amount of businesses that battle on nothing more than price. When your businesses success is based on price then you will eventually fail. You can’t sustain it for long. Eventually someone will come along that has more resources and money than you or is willing to go further underpriced just to beat you out. The Walmarts out there have the ability to go further under for longer than you. They can price a baseball bat for less than you paid for it, just to start the cycle of putting your sporting goods store out of business. So why try to fight them on price? That battle you will lose. Further, why would you want to cheapen yourself? Obviously you have to compete with competitors, I understand that. But with super cheap prices that means less funds to operate off of. Your business has to eat. Cheap prices usually means you will have to sacrifice in other areas.

Instead of being the cheapest out there, why not focus on being about something else? You may not be the best price, but you can be the best in many other areas, like customer service, having superior products or building a community around your brand. Perhaps you can be the fastest delivery, have the longest lasting products, the best customer service or maybe bring together the culture of people that want to interact with others like them. Why do you think Apple has such raving fans? They are about something. They started a movement. Be about something bigger. Cheapest price is a losing battle. It’s easier to offer a better product or service and be known for offering more value than to fight on price alone.

Tom’s shoes nailed this. You don’t buy Toms for its style. You buy them to give a pair to a child in need. It’s a statement that you care about other people. You can easily buy shoes just like theirs elsewhere. You buy toms because you give a pair of shoes to a kid that doesn’t have any. Great concept.

Be about something more than just price. If you don’t it will become a race to the bottom. You’ll fight a losing battle. Win the war with areas you can be great in, not in price.

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IMG_0169Not too long ago I was on vacation in Atlanta where we stopped at the Coke museum. Coke had created a museum of nothing but old coke memorabilia, history, taste testing and the process to create Coke. It was really interesting stuff. I mean wow, what a great way to build its brand recognition also! Hundreds and hundreds of people were standing in line to go inside to learn about and see all things Coke.

There was one thing that stood out to me. I noticed a secret stealth marketing tool by Coke that was brilliant (whether it was intentional or not). Just about everyone was taking pictures. Everyone was taking pictures with stands, logos and mascots of Coke. These pictures are all tiny advertisements for Coke. Social networking websites like Facebook, Myspace, or Flickr all offer free picture uploading. What do you think these people are going to do with all those digital camera pictures from their trip to the museum? They are going to upload them to the internet for their friends and family to see. See what I mean? I uploaded them to my blog. Now they are here for you guys to see!

Here’s an idea for your business: Find creative methods to get people to take pictures with your company. Perhaps you could put up a cool background that they could feel like a celebrity on the red carpet, or bring out a mascot or someone famous in your industry. Maybe you could go a step further and hire a photographer to take pictures and put your logo and website on the bottom. It could help spread your brand through social media like facebook, myspace and flickr.

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russian-rouletteAre you playing Russian roulette with your business? Well, you could be if you aren’t marketing to women. Not too long ago a study found that women control 83% of purchase decisions and are the chief purchasing officer in most households. This mammoth-sized market has become a 4.7 trillion dollar machine (and that does not account for teen spending). Women are a majority, not a niche market. Another study found that women are responsible for more than 89% of bank accounts, 80% of healthcare, and 51% of all electronic purchases.

There is, however, one big problem: communication to them. A lot of marketing is aimed at a male audience and does not account for the large market of women. Women are a much tougher crowd to convince to purchase. What can you do to make your business speak her language? I have assembled a FEW concepts to help over the next few blog entries.

To begin: If you are going to market to women, you must understand the differences between the men and women and how they shop. Men buy while women shop around a bit. For example, a man and woman go to purchase a particular item. The man is going to walk in, find it and buy it within 5 minutes. Women however, are much more complicated. A woman is going to seek information first to learn the ins and outs of the product or service. In a recent study, 70% of women do research on a particular product before they purchase. Women like to find out all the nitty gritty first. They do this because they want to make informed decisions about a product or service. She, for instance, might Google a review of a restaurant or ask a salesmen a few questions. Ever notice how women will read the instructions, while men tend to just try to put it together? Similar concept. Women want the info first before acting.

The next concept is that you must understand that a woman goes through what I call a “shopping process.” She first, will find the product or service she wants. She then will think about it and then will think about it some more. She goes through a collaborative process where she will ask questions like, “what do you think about this?” or “does this look good?” Make your store a place that allows for collaboration from friends with things like couches in the dressing area. Or your business could offer “consultants” to offer free advice. Here is an example: There is a great women’s clothing store that has style consultants that show women how to dress for their body shape, skin tone and much more. They establish a connection with her and reassure the woman that they look good in that dress they tried on. Imagine the difference in a place like that over shopping at Wal-mart. Also, make comparison-shopping easy. Show her that she is making the smartest decision with testimonials and benefits of purchasing from you. She needs to know her purchase is the right choice. Teach your salesmen or employees objections she may have and how to respond to them properly. Women are very detail-oriented. She next has to feel good about her purchase. She will consider factors like: how will this affect me or my family? Lastly, if she feels completely satisfied, then she makes a purchase.

Don’t play Russian roulette with your business and start marketing to women. More concepts to come soon!

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Do You Have Stupid Rules?

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angry1Every business has rules. It uses them to make life easier and “run smoothly.” However, just about every business has stupid rules as well. Recently, I went to a restaurant that had only a few people eating there. I asked for a booth instead of a table. The hostess told me that the booths were sectioned off because they were low on staff.

What does that mean exactly?

What does it matter whether a server walks an extra 3 feet (literally) to serve me at a booth over a table? This is a stupid rule. Was it really worth it to start me out with a bad opinion of the restaurant by being uncomfortable over a few extra feet and a stupid rule? Here’s another one: I watched as a couple requested a specific server and were denied during a slow time. They ended up walking out of the restaurant. The hostess let them go! Had she just granted their request for the server they wanted they would have stayed. Is it worth the cost of losing a sale? Companies set “rules” to make operations run better but often end up hurting themselves in the process.

Think about your policies and determine if they are stupid and could be costing you sales. Are they more likely to make a customer upset rather than satisfied? Is it really worth potentially losing a customer for some stupid rule?

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IMG_0179 I love this picture. I snapped it at the coke museum a few months back. It’s a door that says “not an exit.” with an exit sign above the door.

Brilliant.

I thought it was interesting because it illustrates a point you need to be careful of in business: Be Careful Not To Confuse Your Customers.

I watched amused as several groups of people tried to exit out the door while debating whether or not it was an exit. In your marketing, never assume that they can figure it out on their own. The more difficult your process, the more it will be misinterpreted and will lead to more problems. If it is difficult to navigate on your website, they won’t make a purchase. If you have to go through a process, they will go elsewhere that’s easier. Try to make it easy as can be on your customer. If you can do little things to make the process simple, DO IT. Don’t let it take an act of congress to buy from you. Government entities are perfect examples of this. Ever notice how they make it so blooming hard to buy from them? You have to have certain papers to make a purchase (that you can never find or forgot at home) and it literally takes hours just to accomplish simple tasks like getting a license plate. They might as well make it to where you need a sample of blood just to pay for car registration. Secret shop your business and see how easy it is to make a purchase from your business. See what it feels like yourself. Note the hang ups and where it can be made easier. Today’s customer won’t buy where it’s difficult or confusing. Your customer needs to trust you are the right person to spend their money with. They can buy the same product from someone else in minutes. So make it easy on them.

What can you do right now in your marketing to make it easier on your customer?

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gps_satellite_650Have you ever seen a fly that tries to escape outside only to be blocked by a window? What does the fly do? It keeps flying right smack into the window. It doesn’t try a new route. It stays on the same path and fails constantly. Is your business that fly? A lot of businesses have really poor marketing. Even worse, they keep doing the same thing over and over again without realizing it’s not going to work. They are like the fly that keeps flying into the window.

“Half of my money is wasted on advertising. The problem is I don’t know which half.”

One reason why so many have trouble is they do not track their marketing. Why not create systems where you can track your advertising dollars and see returns from your advertisement to a sale from a customer? By inserting promotional codes or offering coupons with your print ads, you can directly see that your marketing dollars are working effectively. Technology has made this extremely easy with Internet advertising. With Google Adwords, Facebook, and Analytics, you can find out what ads are working, and all kinds of useful information like what keywords potential customers are clicking on.

Trackable marketing tells you that because you spent X amount on marketing and advertising, you received X amount in return. Don’t just think your ads are working, KNOW they are working. One time I told a client that he should stop running an ad, that I was sure it wouldn’t have any effect on the sales of his business. Eventually, I convinced him to stop with the guarantee that if it had effect I’d pay for the ad’s next run. Sure enough, no change. This ad was completely worthless! He was shocked because he was sure it had worked! Had he had a way to track it perhaps he wouldn’t have wasted tons of money on that ad that wasn’t doing anything at all for him!

What can you do right now to start tracking the results and effectiveness of your marketing?

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