Goodbye Flip & A Thought on Focus

April 12, 2011 · Filed Under Creating Value, Value Proposition · Comment 

20110412-065054.jpgToday, Cisco announced that it was closing down it’s FLIP camera unit. Cisco bought the company in 2009 for $540 million dollars. Less than two years later, FLIP is no more.

I still remember when I saw my first FLIP video camera. I was so impressed that I bought one that day, and then bought one for each of my employees for the holidays. When I started using my FLIP people couldn’t help but talk about it. It did the nearly impossible – it was cool and practical.

Then Cisco bought them, in the pursuit of “diversifying” its revenue streams, with consumer oriented products. No wonder that analysts often refer to diversification strategies as deworsification ones.

The acquisition was doomed from the start, as it violates the cardinal rule of focus. You can delight one type of customer, but you can’t delight them all. Cisco was a great company when they focused on their core business.

Then they made a critical mistake that tempts companies of all shapes, sizes and industries. They began to believe they could make anything successful and began focus on what was good for them, rather than focusing on value creation.

I can’t promise that FLIP would have remained successful had they remained independent (and maintained their focus), but I sure would have liked to see them try.

Avoiding A Damaging Sales Mistake (Part 2)

In yesterday’s post I shared a critical designation, and strategic sales decision, that must be made early in the sales process.  Are you making a “status quo” sale, or a “change” sale.  Now I’d like to share part 2 – the implication of each sale and how to tell the difference.

In many ways, a status quo sale is easier than a change sale.  But, as with anything, “ease” has its trade-offs.  Status quo sales are far more susceptible to competition, commoditization, and price/margin pressure.  It’s very hard to stand out when making a status quo sale, so the sales/marketing focus is much more tactical, with the tactics shifting frequently.

Change sales are harder to make, if for no other reason than change is involved.  The upside is that they can have greater impact to the buying organization.  Selling organizations that master change sales are able to avoid commoditization by bypassing the competitive environment and becoming a true resource to their prospects/customers – as I’ve written before – they’ve made The Shift from selling to stuff to selling results.

The danger here is that sellers frequently attempt to make change sales to people in the buying organization who worry about the present or past.  This is just as damaging as when companies try to sell total value propositions to fundamental value buyers.

In a typical business organization 80-90% of the people are responsible for the present or past.  If they’re who you are counting on to drive the sale, then you need to be making a status quo sale.

Only 10 – 20% of people in a company are responsible for managing and allocating resources to address what could be happening.  They should be the focus of your sales efforts if you are making a strategic, change sale.

Be careful, while title is an indicator of one’s time frame it is often misleading.  So, how can you tell if you’re talking to a future-oriented person or not?  Two cues:

  1. Listen to them.  If they spend most of their time talking about what could be, they’re future oriented.  If they spend time talking about what is or was, they’re status quo.
  2. Look at their resource allocation authority.  Do they allocate resources to deal with future possibilities or present-day realities?

Going forward spend a little extra time to make sure you are aligning your selling proposition to your buyer’s time frame.

Avoiding a Damaging Sales Mistake (Part 1)

In 2004, I wrote about the need to align your sales proposition with the value definition of your buyer.  Over the last seven years, I’ve become increasingly aware of another critical misalignment that occurs in sales efforts every day – timeframes.

Far, far too often, sellers are bringing superior value propositions and promises of better futures to people who do not worry about the future.  There are two types of people who work within companies:

  • Those who worry about the future.
  • Those who worry about the present (and past).

As a seller, you must make a critical decision early in the sales cycle (and in many cases even before the sales cycle begins):  Are you making a “status quo” sale, or are you making a “change” sale?

A status quo sale requires very little change in behavior or approach on the part of the buyer.  While there are too many possibilities to describe all status quo sales, you are promising an improvement in an area of work where your customer/prospect is already paying for something – be it a key process, a resource or even people.  When your new customer makes a status quo purchase from you, they do the same basic things they did with their previous “solution.”  The status quo sale is aimed at addressing the issues/problems/worries in the “now.”

A change sale requires the prospect/customer to change their approach is some way to be able to fully take advantage of (and therefore, fully value and pay for) the value proposition.  A change sale can address key process or resources, just as a status quo sale can, but the issues/problems/worries it addresses occur in the future.

Tomorrow, I will share the implications of a status quo vs. change sale and how to tell what type of buyer you are dealing with.

Understanding Your Customer’s Time Scope

September 24, 2010 · Filed Under Creating Demand, Sales Strategy, Value Proposition · Comment 

Most organizational charts are broken down, and viewed, from the perspective of position and authority.  While this can be very helpful in developing sales strategy, an even better way to break it down is by what I refer to as their “time scope.”

For some people, one week is a long-term, while others spend little time thinking about anything happening in less than two years.  Here is an example (albeit oversimplified) of how typical levels break down to time scope:

Level Time Scope
Senior Executives Beyond a year
Upper Management 6 mos – 1 year
Middle Management 3 – 6 mos.
Front Line Management 1 month
Front Line 1 Day – 1 Week

When you have a clear picture of your customer’s time scope, you’ll be able to gain insight into what it is they really worry about, where the value you can create lies, and whether the issues you are dealing with are big enough to get them to change their approach.

Looking at your customer from this perspective also aids you when you are selling to smaller companies where individuals (especially owners, CEOs, and other executives) play more than one role.  Knowing their natural scope can be a great advantage.

The longer your buyer’s time scope is, the more opportunity there is for you to create value and radically differentiate the results you can provide.  Shorter time scopes significantly limit, or even eliminate, any opportunity to differentiate yourself in a meaningful way.

Unless you are selling a pure commodity, your first “sale” is to ensure that you are talking with the person with the proper time scope.

Can You Be Indispensable?

My post on Wednesday focused in on the importance of understanding your customer’s business model to develop a selling proposition that can make you indispensable.

For three years now, I’ve been speaking around the country talking with CEOs and salespeople evangelizing the idea that in a world where discretionary budgets have all but disappeared, the only sustainable strategy for long-term business growth is to become non-discretionary or indispensable. For three years, no one disagreed with me.

Then Wednesday I got a tweet in response to my post from Arié Moyal saying that there was no such thing as indispensable. This led to the conversation you can see on the left.

The conversation got me thinking – is @amoyal right? So I went to dictionary.com and looked up the definition – absolutely necessary, essential, or requisite.

My short answer is a clear “yes.” While indispensability is not a permanent status, nor is it an entitlement, it can be achieved and maintained.

When you make The Shift from selling “stuff” to selling results, you can become absolutely necessary. The nature of competitive markets and changing environments means that you have to work hard – often extremely hard – to maintain that status, but if you continue to practice the rules that got you there, you can stay there.

What do you think? How do you attain indispensable status?

The Most Important Thing to Know in Sales

Anyone who has heard me speak knows that I believe business acumen is the most important capability for a successful selling.  One of my goals in writing this blog is to support the development of business acumen in the sales process.

I started reading the book Seizing the White Space: Business Model Innovation for Growth and Renewal.  I found the title interesting because I often advise executives to “seek the white space.” I’ll provide a more detailed review of the book when I’ve finished reading it.  However, regardless of the rest of the book, Chapter 2, The Four-Box Business Model Framework, is must read for everyone.

Mark Johnson provides one of the simplest and powerful descriptions of what a business model is, how to understand it, and how to affect it.  Looking briefly at the four elements from the four box business model, they are:

Customer Value Proposition (CVP) – An offering that helps customers more effectively, reliably, conveniently, or affordably solve an important problem (or satisfy a job-to-be-done) at a given price.

Profit Formula – The economic blueprint that defines how the company will create value for itself and its shareholders. It specifies the assets and fixed cost structure, as well as the margins and velocity required to cover them.

Key Resources – The unique people, technology, products, facilities, equipment, funding, and brand required to deliver the value proposition to customers.

Key Processes – The means by which a company delivers on the customer value proposition in a sustainable, repeatable, scalable, and manageable way.

Understanding your customer/prospect’s business model is critical – I repeat CRITICAL – to becoming indispensable.  If you don’t understand, you cannot make The Shift to selling results, and you’ll find your company, your offerings, and your sales efforts increasingly marginalized.

When you do understand their business model, you can begin to answer important questions like:

  1. Which boxes do we impact?
  2. How do we impact them?
  3. How will our customers business model improve as a result of our impact?
  4. What is that worth?

With those answers in place, your customers will be far more interested in talking with you and far more open to sharing their needs with you.

When Free Isn’t Sustainable

There’s an interesting post on my friend Gini Dietrich’s blog, SPIN Sucks.  I found it and one of the comments both interesting and insightful.  It actually created a bit of a visceral response from me (you can read my comment here).

Writing about The New York Times’ plans to start charging for its digital subscriptions through Kindle (which it already does and plans on raising), and the iPad (which, apparently, it’s going to start to do); guest blogger, Nick Harrison, and a commenter put forth an idea that is commonly accepted, and inherently wrong.

The idea is that you cannot charge for information on the web.  Mr. Harrison, says, “My first reaction at the time was, if you are already losing subscriptions and advertising dollars, is actually charging for content the best strategy?”  My answer – Yes!

The commenter added: “This is an example of a company not understanding that they have to change with the times. The Internet has made nearly everything free, and people aren’t willing to go back from that.”  Outside of the fact that this isn’t true (The Wall Street Journal has been charging for content online since it started providing it), it doesn’t address the ability of a company to create a new experience worth charging for.

The reason I share this is because these thoughts are symptomatic of what is silently killing really good businesses – the idea that you cannot charge for what others are doing for free, or for less than you.

One of the first business lessons I learned (ironically from running a lemonade stand for a couple of days) was that if you charge less than it costs you to produce your products and services, you cannot make it up in volume.  If raising your prices means selling less volume, than so be it, because if you’re not making money – WHO CARES?!

The fundamental job of marketing is to create enough value so that people would be willing to pay more for something.  If all The New York Times does is charge for the same information and experience that other newspapers are giving away for free, then the author is right – it’s a bad strategy.

However, if you’ve had the opportunity to sample The New York Times’ iPad application (which I have) it will take you less than a second to realize that this is not the same experience as others.  Would I pay for it?  Yes I would.

Would everybody who reads The New York Times online pay for it?  Of course not, but who cares!  Would everybody pay for a phone that costs $600?  Hell no, but Apple made more than $1.5 billion doing it!

As I’ve been writing a lot lately, the newspaper or the information in the newspaper is the commodity.  The Internet has placed the value of that commodity (what I call the left side value) at zero. The Intelligence or Enterprise Value (what I call the right side value), however, is unlimited.

The New York Times was one of the first partners to jump in with Apple to develop meaningful applications for the new iPad, so much so that they were one of the few content providers highlighted in Steve Jobs’ announcement of the device.  I give The Times a tremendous amount of credit for their willingness to innovate and experiment.  I give them even more credit for asking people to pay for it.

Agree or disagree with The New York Times editorial slant, you cannot deny that they provide superior content and their new app provides a superior experience.  My only fear is that they won’t have the guts to stick with the plan.  Sure, maybe they’ll be smaller as a result, but I’d rather be smaller and profitable than larger and broke!

What’s the lesson for fast growth businesses?  Stop focusing on The Left Side (commodity) Value of your business and start building The Right Side Value.  If you don’t reinvent your business, some upstart in a garage will.

What do you think of The New York Times Strategy?

Beyond Price

Earlier this week, I wrote that the price you charge for your products and services is the signal that says more about you than anything you can do.  I also shared the formula for determining what someone is willing to buy something for.  Today, I’d like to go deeper into part of the formula, so that you can get paid more for what you do – even in difficult markets.

So for those of you who haven’t seen this formula, here it is:

Commodity Value  + Intelligence/Enterprise Value = Price

Now, take a moment and think about the factors or contributors that your prospects and customers should use to establish the commodity value (or fundamental value) and the intelligence/enterprise value (the factors that you or your company bring to the table).  Feel free to download the sheet below to use for this.

In my experience there are only five factors that drive the commodity value:

  • Distribution costs
  • Need (both the amount and the timing)
  • Supply or Access
  • Quality
  • What someone else is willing to sell it for

When I was at Merrill Lynch I used to keep a sign above my door that said, “Don’t confuse brains for a bull market.”  And don’t get me wrong, I’d much rather be a bad salesperson in a favorable market (i.e. lots of demand, tight supply, and not a lot of competition) than a great salesperson in a bad market (i.e. light demand, lots of supply, and intense competition).  But here’s the thing:

We have no control over the left side (commodity) contributors of value!

In my post Monday, I referred to Todd Sattersten’s ebook on pricing.  He discusses the choice companies have in setting their price and one of the interesting insights he provides is the difference in price and profit cell phone handset makers Nokia, Blackberry (RIM), and Apple experience.

Why does RIM get 4 times what Nokia gets for their cell phones?  Why does Apple get 50% more for the iPhone than RIM gets for the Blackberry?

I can tell you this, the difference lies almost completely on the right side (the Intelligence/Enterprise Value) of the equation.  It doesn’t cost Apple 50% more to make an iPhone than it costs to make a Blackberry.  And because of that, almost all of the price difference goes right to the bottom line.

Go back and look at the right side contributors for you.  What makes you a better choice for your prospects and customers?  Why specifically should someone buy from you?  Now, answer this question:

What are those contributors worth?

Are they worth 1%?  5%?  15%?   50%?  More?

Whatever it’s worth, remember that every dollar you earn from the right side of the equation is highly leveraged for you (it also works against you if you make price concessions).

Your job is to focus all of your go-to-market efforts on supporting the “what’s it worth (right side of the equation)” conversation instead of the “what’s it cost (left side of the equation)” conversation.

Price Is A Signal

It has always amazed me how selling organizations and salespeople deal with the emotional aspects of price.  If I were in a room with all the business executives and/or salespeople in the world and I asked the question, “How many of you would like to get more for your products and services?”  I’m pretty confident that 100% would raise their hands.  Yet, when you watch their behaviors in the market, I’d be surprised if more than 50% of them behaved in accordance with that desire.

In the last couple of months, I’ve written often about price, pricing, and its importance in creating demand.  While virtually everyone claims to desire premium margins, I’ve come to realize that most people fall into three camps when it comes to getting a premium price:

  1. The first group is comfortable and confident pursuing premium pricing and margins.  They feel they earn them, they deserve them, and, albeit on the more extreme side, believe they are doing a disservice to their customer base if they are not paid.  They believe that these premium margins are what support a superior promise and experience.  Companies like Apple, Fedex, BMW, Four Seasons, and McKinsey immediately come to mind when you think about this.  In my experience, this group accounts for about 10% of people or companies.
  2. The second group pursues premium margins, but they view this more as a tactic than a belief.  This results in an attitude of “we get a premium because we can,” and it leads to an awful lot of internal conflict and sometimes even guilt.  This, ultimately, becomes a major barrier in making such pricing sustainable.  In my experience, this accounts for 25 – 50% of people or companies.
  3. The third group simply doesn’t believe that they deserve premium prices or margins.  They may pursue them, but it’s always a struggle, and these people and companies are more likely than not to be the cause of price sensitivity in the client/customer base.

In almost all cases, the underlying reason for someone falling in the second and third group is because they focus is on the commodity being sold, not on the value being created.

Here’s the thing – price is merely a signal.  It’s the tangible component to what is, inherently, an intangible offering (your intelligence value is, by definition, intangible).  Charging a higher price is merely making the declaration that you provide a better offering.  Pricing is a choice, and buyers will buy a higher price if you back it up with actions.  Great companies get that pricing is strategic – not tactical.  McKinsey studied pricing in the 90s and found that a 1% increase in price led to an 11% increase in profits.

It is absolutely critical that everybody in a client-facing role understand, truly understand, the importance and rationale about price.  Every business executive and salesperson should stop what they are doing right now and download Todd Sattersten’s amazingly simple, engaging and perceptive ebook on pricing.  Further you should read it consume it before the day is done.  While I’ve read a lot (too much really) about pricing, I’ve not come across anything that puts it in perspective as well as this eBook (it’s also where I learned the tidbit about McKinsey’s study).

It’s your choice – what are you going to do?

Don’t Have Time To Blog? Thanks!

Last night, I spoke to the Baltimore chapter of The American Marketing Association.  The topic was blogging and its place for businesses.  One of the attendees came up to me after the presentation and said what I’ve heard many, many times – “Everything you said was great and I agree with it all (okay, I don’t hear that all the time), but we just don’t have the time to do it.”

Side note: For purposes of this conversation, I will use “blog” and “content” interchangeably.  I think a blog is a great way to distribute content and support engagement, but whether you or your company “blog” is less important than do you create meaningful, valuable content for your market on a regular basis.

For those that say you don’t have time, I share three simple responses and a bonus thought.

1.  Today there are only two types of companies – which are you?

Best companies and people do things that me-too companies don’t – and they get rewarded for it.

2.  There’s a HUGE conversation taking place…

… are you participating in it?

3.  Here’s the difference blogging and content marketing has made for Imagine, you tell me – is it worth it?

Final Thought

If after all this you still can’t bring yourself to make the investment (of time and energy to do it yourself or money to have others do it), then on behalf of all those who are blogging, we say thank you.  The more people who don’t take it seriously, the greater our advantage is.

What do you think?

Breaking Through The Noise

Anyone who has worked with me knows that I’m a maniac for messaging.  In today’s world, where good is now nowhere near good enough, a solid message is no longer a valuable bonus – it’s an absolute must have to compete.  The foundation of a great message is a well articulated value proposition.  The challenge here is that creating a value proposition that resonates is extremely hard (it’s one of the reasons that The INTELLIGENT GROWTH Blueprint process is so valuable).

And, even after you’ve created a powerful message you have to translate that through the words and deeds of your salespeople.  It’s no wonder businesses overlook these steps – wouldn’t just be easier to get in the market and sell?  If you realize this challenge, I’ve got good news for you.

My friend, consultant, advisor, and author, Kevin Daum, is coming out with a new book Roar! Get Heard in the Sales and Marketing Jungle that will lead you and your salespeople to do this successfully.  I’ll provide a full review when we get closer to the release date (and I’m working with Kevin to have him write a guest post or sit down for an interview).  Kevin’s a great guy to learn from (I learn from him every time we talk).  Kevin gets it – he understands strategy, messaging and the sales process.  Most importantly, Kevin understands that theory is nice, but it’s profitable revenue that matters.

Kevin is offering a free preview of his book (and he’s giving away his formula for creating a powerful value proposition – and please know this is must-read stuff).  I realize that this sounds like hyperbole, but you’ll note I rarely say something is must-read, Kevin’s take on creating value proposition is.  After reading this portion of the book, we refined our process as a result.  Kevin’s given me permission to share the preview here, so take advantage and download a copy.

Great Wine

If you follow me on Twitter, you know that I just got back from 10 days in Vancouver speaking with companies about Creating Demand.  I met and talked with CEOs and senior executives from a wide variety of businesses who are all taking up the challenge of moving beyond good to great with gusto.

On my last night there, I had a terrific opportunity to take in a Vancouver Canucks game with one of the executives.  He’d just begun a new endeavor for a major western-Canadian organization with the edict to build a powerful brand from the company’s resources.

So in between goals, (the Canucks won 3-2 in an exciting game) we discussed how he may be able to do that.  This executive came from the premium wine business, so we talked a lot about wine as well.

Returning to my hotel I realized just how much great wine can teach executives about great branding.  So if you like wine or branding (or, even better, both), I share with you nine lessons great wines can teach us about building a great brand:

  1. Great wine is the result – not the process.  There is not such thing as “wine-ing” (except when my kids do it, and it’s spelled differently) and there shouldn’t be anything called branding – a brand is an end, not a means.
  2. The people who drink the wine are ultimately the ones that decide what a great wine is.  It is your customers, and the people who come in contact with you, who decide if you are a great brand.
  3. All the publicity in the world does not make a great wine.  All the publicity in the world does not make your brand great.
  4. To be a great wine, the wine must deliver the goods. Just because the winery says the wine is great doesn’t make it great.  Just because your website says your brand is great doesn’t make it so.
  5. The most powerful marketing component for a wine is inside the bottle.  The marketing component that actually drives and creates your brand lies in what you do and/or deliver, not in your advertising, brochures, or logo.
  6. Wines have good years and bad years, and while good years help, great wines find a way to be great regardless of circumstances.  Great brands deliver regardless of circumstances.
  7. When a great wine becomes popular and the producer or bottler tries to exploit it by ramping up production to “sell more,” the wine inevitably loses its aura, its specialness, and it fails.  When businesses start getting traction and they exploit their brand to drive short-term revenues or profits, the brand loses its authenticity and inevitably fails.
  8. As anyone who enjoys wine knows, it takes a certain amount of time for a wine to gain its flavor, and you can’t short circuit that time. If you open a wine “before its time,” you lose.  Building a company that becomes a great brand takes time and you have to give it that time.
  9. Great wines age well. It’s not about being the first, it’s about being best.  Great brands age well. It’s not about being the first, it’s about being best.

What do you think of these lessons?  Do you have any to add?

The Beginning of the End For Google?

January 10, 2010 · Filed Under Business Growth Strategy, Value Proposition · Comment 

Okay, I admit it – maybe that headline is a slight overstatement.  Uhm, on the other hand, I’m not so sure.

Google (and Bing) have gotten a lot of press and attention for their real-time search function.  I have to admit that I’m quite impressed by just how quickly I post something with my name in it, and Google lets me know it’s out there.

But, I’ve got to tell you – I don’t like it.  Frankly it’s increased the noise level, without providing any real value or benefit.  Sure, I get the value it may provide for “brands” who are trying to “listen” to what others are saying.  And if someone starts saying something bad about you, knowing sooner would certainly help.

However, Google has always succeeded because it focused on benefiting the searcher, rather than the searched.  Google’s famous algorithm was tremendously valuable because it filtered a lot out.  It made my life (and the lives of millions of others) simpler and easier.

The benefit of Google was very similar to the original benefit of mutual funds.  When they came into existence (in 1929), their fundamental value was that they enabled people to make sense of a very complicated investment world.  Paying attention to every potential stock was (more than) a full time job.  Amateurs just couldn’t keep up with it.

So, mutual funds filtered the stock world for investors.  While the average investor didn’t have time to research every stock, they didn’t have to.  They could simply select a mutual fund – and the mutual fund manager did the filtering for them.  Mutual funds are one of the primary reasons that America became an investment culture.

This worked great until the 1990s.  That’s when more mutual funds existed than stocks.  The product designed to simplify the world by limiting choice became more complex than the world it was supposed to simplify.  It’s no wonder that the underlying performance of these funds deteriorated.

I’ve always lived by the philosophy that just because you can, doesn’t mean you should.  I think Google could learn from this as well.  While Google focused on more (and focused on matching its competition), I think they’ve opened the world up for a competitor that provides the very proposition that Google originally offered.

Fast growth companies can learn from this.  In today’s complex world, customers are looking to you to make some choices for them.  To filter the world a bit.  Sure, the decisions you make will annoy some (just ask Apple), but done properly they’ll delight a few.  The key to real growth – and real profit – in the future isn’t making everyone happy; it’s in delighting the few.

What do you think?

Making It Rain Even In A Drought

droughtUPDATE: in less than 24 hours we’ve “sold out” the Making It Rain Even In A Drought webinar.  Because of how much it has resonated, we are adding more dates – see below for details.

The last three weeks have brought a tide change in the economic outlook.  CEOs are looking at growth initiatives more than they have in two years. Despite the increase in optimism, there are still several challenges your selling team faces:

  • Discretionary budgets remain virtually non-existent at most companies.
  • Record layoffs have fundamentally changed the playing field at your buyer’s organizations.
  • The purchasing function has seized more control than ever in buying organizations – leading to even more acute commoditization.

So, the question you must be able to answer is:

How are we going to make it rain – regardless of the weather?

oasisOn August 27, 2009 I will be hosting a special webinar to answer this very question.  As a reader of this blog, I invite you and your guest to attend this webinar free of charge.  Here are the details:

When: Thursday, August 27, 2009-SOLD OUT  Tuesday, September 15, 2009 & Tuesday, September 29,2009, 2PM (EDT)

Where: Anywhere you have an Internet connection

How Long: 55 minutes

Registration Information: Click Here for September 15, 2009 or Click Here for September 29,2009

I am going to be keeping the number of participants on this call to less than 25 to ensure that it is interactive – allowing you to ask questions and maximize the application of the ideas I am going to discuss – rather than making it the typical “talking head” presentation.  While your questions will clearly impact what is covered on this call, I can promise we will address the issues:

  1. The 3 Critical Actions You Must Take to Drive Growth In High-Margin Areas
  2. How to create your own “Business Oasis”
  3. How to shorten the sales cycle – in any industry
  4. Monetizing the sales process by creating Cash Flow Farms
  5. The single most important focus to ensure you business thrives in any market condition

Why I am doing this for free, you may be asking?  Is this just a sales pitch in disguise? The reason:

With increased talk and focus on the possibility of recovery, we realized that many businesses are positioning themselves to make the very same mistakes they made that got them into this mess.  We want to start a new conversation and provide small and mid-sized businesses a newer, clearer direction that leads to more profitable business growth.

With only 25 slots available make sure you register now!  Click here for September 15, 2009 or click here for September 29,2009 to ensure you’re Making It Rain – no matter what.

It’s Not About The Product

June 30, 2009 · Filed Under Sales Strategy, Selling Skills, Value Proposition · 1 Comment 

freeimages.co.uk workplace imagesI’ve got a good friend who is an executive in the office supplies business.  His division sells to national accounts and he was telling me about a new client he had and a business review he was about to conduct.  I (sarcastically) replied, “Wow!  How much review do you need for paper clips.”

His reply was one that every salesperson and every business executive should know.  He told me that when your selling the volume, his division does to large accounts, office supplies has nothing to do with it.

He talked about the technology that ensures people buy within their policy.  He talked about logistics management, integration and other highly complex – value creating activities.  He talked about complex pricing strategies to ensure that a) his company was price competitive and could win the business, and b) that the margins would still be sufficient to be profitable.

He told me that in the entire sales process for a $12 million dollar account the topic of office “products” never comes up.

I have another client who is about to land their single largest piece of business ever.  We worked closely with them in designing their sales strategy for this opportunity and after the client asked to “skip the letter of intent stage, let’s just go to contract,” their CEO commented to me that they never even looked at the product that was being offered.  I replied, “That’s because the product isn’t really important.”
Remember it’s the results that are important.  So:

  • Stop talking about the product, and
  • Start focusing on the process you have to support the results you promise

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