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Finding solid ground
in an uncertain economy
Between trouble in financial markets and the
weak dollar, the economy continues to look grim. It’s
difficult to decide your next steps when so much seems
to be falling apart. Where to focus? What to do next?
Three questions below will help you quickly gain clarity
and find the next “best thing to do.”
What has changed
for me?
Media reports are good for big-picture forecasts. Now
is the time to put your business under a microscope.
Assess your situation from a blank page perspective.
Pretend you are a potential client; you have no vested
interest in the outcome. Ask yourself, “What is
my situation? Have my buyers changed? What is the marketplace
really telling me?”
The answers to these questions will help you assess
what’s going on now in your specific situation.
If you’re profitable, then you can take the general
gloom and doom with a grain of salt. If you’re
not, you need an objective wake-up call and a new plan.
Clarity is always a good first step to change.
What can
I control?
Sometimes we take on challenges that we don’t
need to, because we just have to “do something!”
Sometimes we throw our hands up and think, “It’s
just the economy. There’s nothing I can do!”
When you have clarity, the next step is to stop and
determine direction. Ask yourself, “In this moment,
what can I control? What can I influence? What is my
role in this situation?”
Drilling down to determine what we can and cannot control
empowers us and points the way. It lessens the panic
and gives us options. It also forces us to focus on
the things we can always be in charge of: how we feel,
what we think and what we do.
What can
I do right now?
The more uncertainty we face, the more grounded we must
be. The best way to get grounded: focus on what we can
do, now. So ask yourself, “Based on the clarity
and the path I see, what is the most logical next step?
What must I do right now to make my situation better?”
By focusing on the next step, we eat the elephant one
bite at a time.
The power in the above questions lies in what is not
asked. Don’t ask yourself what you “can”
do. Or even what you are “willing” to do.
If you have clarity from a blank page perspective, it
doesn’t matter what your comfort zone is. The
focus is on what is necessary, which could be difficult.
The failure to see outside what is comfortable will
spell disaster in uncertain situations.
When economic waters get choppy, those in the little
life rafts are the most vulnerable. Build a solid ship,
and you’ll be cruising along just like the ocean
liners.
Dealing with the bargain
buyer
A tight economy brings out the bargain hunter in all
of us. So how to respond when someone balks at your
fee? It depends on how you answer the question before
it is asked. Below are the two most common scenarios:
The wake-up
call
Most folks already have an idea of what they are willing
to spend. If your quote is bigger than the number in
their head, mental stop signs, immediately, pop up.
Once that happens, the “I’ll think about
it” excuses begin. This is the #1 cause of the
stalled sale.
The problem? Their mental budget is not based on reality.
It’s based on what they want to pay, or on the
bargain basement price they saw on the Internet. They
are blissfully ignorant of what it really costs to solve
their challenge. Your quote was their wake-up call.
That’s why it’s called “sticker shock.”
Your best response: cushion the blow as early as possible.
Most incoming inquiries include questions on what you
charge. Take the initiative and give a heads up that
your services can’t be purchased at the dollar
store. My favorite phrase: “The investment for
one-on-one relationships starts at $XXX.” It’s
too early to quote numbers or ranges, so use terms such
as three figures, four figures, five figures, etc. This
advanced warning allows prospects to opt out or change
their number. All before you quote a specific fee.
The price
is never right
There are people who roam the planet vowing never to
pay full retail. No matter your price, they will always
negotiate. Refuse and they get offended. Give too much
and they wonder what’s wrong with your services.
Most people like to negotiate because 1) they want
the best deal and 2) they want options. Decide how much
you want to play the game. If you like to haggle too,
then go for it. If you don’t want to negotiate,
then walk away with a face-saving way for the prospect
to return.
My favorite response: use options to find middle ground.
After you get emotional agreement on the desired outcome,
trot out options with the best one first. If they want
to negotiate, then go for the second best and state
up front what they are not getting. Give the pros and
cons for each alternative. Give options, but control
the choices available. This is negotiating without settling
for less.
New York City was
rockin’!
Just got back from speaking at the National Speakers
Association (NSA) Convention in the Big Apple. Thanks
to all who attended my session about the big changes
ahead. The message from the marketplace is demanding
and direct: buyers will pay top dollar only when they
have to. Experts in the “gotta have ’em”
category will transcend the economy. Those who aren’t
will tread water until they get tired and drown. It’s
just that simple.
Let’s stop
and think
It’s time to get real. When the economy isn’t
booming, blind spots become visible. Do you feel vulnerable?
Marketing efforts not paying off? If so, that’s
OK. There’s nothing wrong with you. It’s
just the marketplace saying it’s time for a change.
Don’t panic. Get help if you need an outside perspective.
A pair of fresh eyes can uncover all sorts of new opportunities.
I’m happy to help.
Things have a habit
of working out
I’m getting calls this summer from folks who are
worried. They know they need to change, but are confused
about what to do. The best approach comes from my mother,
who beat the odds but recently lost her battle with
ovarian cancer. No matter how dire the situation seemed,
she’d smile and say, “Things have a habit
of working out.” And they would. So take a breath.
Step back and think. And remember that given enough
time, most things do turn out just fine.
I’m getting more
prospects who want to work with me but won’t close
the deal. They cite budget cuts because of the economy.
Does it hurt my brand to discount my fees? Should I work
with them or let opportunities go?
A: One of my favorite
clients once said to me, “Go to Tiffany’s.
They have diamonds of every size. But every diamond
is a Tiffany’s diamond.” Even the biggest
brands have plenty of choices. And choices allow clients
to decide what they are willing to pay for, instead
of whether they are willing to pay for us.
The downside: confusion. The more options you give
the prospect, the riskier their decision. The antidote:
help folks decide. Go beyond giving the pros and cons
and give recommendations based on their situation. You’ll
become a resource instead of a vendor trying to make
a sale.
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