Kaizen, the Strategy of Continuous Improvement

31 December 2008 Categories: Blog

Toyota-movingforww Toyota does it right

Nobody really wants to have their car serviced unless it needs to be serviced. Today mine needed to be serviced.

I heard a banging noise under my car several days ago and made a 7 a.m. appointment for today at  Lia Toyota of Colonie, located in Schenectady, New York. No, I don’t own a Toyota – I own a 1998 Lexus 300SL, and yes it gets serviced at Toyota. Why?  That’s the topic for another blog, but basically everyone at Lia Toyota is just smart, nice and they smile a lot.

Toyota-seating They don’t seem to mind taking me to the airport, answering my questions or giving me a loaner car while we wait for a car part. This is the third time Mark Wells has been my Service Advisor and he  treats me like a smart customer and tells me up front what I need to know. He is just plain good.

So, there’s a noise under my car, but worse than that on the way home from my cousin’s house I blew the fuse for my heater while trying to charge my cell phone. That is my humble diagnosis of the problem (I found out later I was correct and it’s common). Cold is not the word for my 1½ hour drive  home last night.  In addition, I had the pleasure of discussing my plight with a New York state trooper who pulled me over for driving erratically. I told him I was about to freeze to death and was trying to cover myself with blankets and newspapers and anything else I could find. Though assured that I was not impaired, he still checked to see that my car wasn't stolen and I wasn’t connected to the Bernie Madoff scandal. He then told me to be careful and get home.

Toyota-mngr It is now 8 a.m. and I am settled into the new guest lounge at Lia Toyota of Colonie. I am also connected to the Web under the Toyota guest program, drinking good coffee and watching the Today Show, pretty much like I would be at home. 

The showroom is about two months old, and the carpet design is pleasing to both men and women—according to a quick survey. It is a patterned rust, brown and beige loop carpet which coordinates with the brown and cream leather furniture.  Around the carpet is polished marble and porcelain throughout the glass cubicles. I must admit that I was somewhat amazed at the location of the lounge – in the middle of the showroom and within sight of the service area. This is different than most service areas where they keep you away and have big signs that say “no customers.” By the way, the service area looks as sterile as the operating room at the local hospital.

Toyota-showroom I have already had a couple of updates on my car from Mark and it doesn’t look serious. While waiting I take a trip to the ladies’ room—the TV is on and the walls are done in a light grey marble tile. Very nice. I am told there’s also a TV in the men’s room.

I ask Tom Sinkora, the Service Manager, if he would chat with me a minute. He is dressed in a white dress shirt and tie and says he is happy to talk with me. I ask him about the showroom, who did the design and the colors etc. He says it’s part of Toyota's Image II program as well as input from the Lia family. Tom is filled with great information and undoubtedly knows what’s important. First question is why did I bring my Lexus to the Toyota  dealership? I tell him my story about how the service sticker in my last Toyota had their name on it so I tried them out. After I got the Lexus I decided why go anywhere else? 

Toyota-otto I ask him about Kaizen, which is a term for the Japanese strategy of continuous improvement, and how that fits with Toyota.  I told him how impressed I was with the showroom and that I liked watching them work on my car. Tom tells me Toyota wants it that way. It’s easier to get it back to the customer, which saves time. And we all know time is money. He also tells me that the parts department is also located next to the service area, which saves time. This sounds like the strategy of continuous improvement.  Again I am impressed with his knowledge and friendliness and that his first words weren’t, "is there something wrong?"

By the way Toyota has a blog called Toyota Open Road blog.

What does this mean for other business owners?

  • Is there wireless in your showroom? Ok, maybe you don’t need a TV in the bathroom but how about one in the showroom with the news and weather?
  • Frequent updates on your customer’s order?
  • Good coffee or bottled water?
  • An explanation of how the process works and going out of your way to explain it to the customer?
  • Comfy chairs are a plus as well as the good coffee.
  • Do you listen to your customers?  I asked Tom about putting in a treadmill and he didn’t even snicker. He said he had an empty room where one might go and he had been thinking about it.

Well now, my car is done and it isn’t even close to 9 a.m.

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Hot Tips for Cold Calling

29 December 2008 Categories: Sales

Phone Well, Christmas has come and gone, and New Years is right around the corner, but don't wait until then to start finding ways to drum up sales!

With business being so stinky, it’s time to get out of your comfort zone and go look for some new leads — and the earlier you start, the better. One of the best approaches for this is to simply cold call, which literally means to go out and call on people you don’t know. All you need is a phone listing and some thick skin.  While cold calling can be grueling and disheartening sometimes, it also is the most time-efficient way to reach new people. And you don't even have to have the "gift of gab!"

My friends used to tell me how they got this new great job and they were going to make millions. They told me they had great products that would sell themselves and all they needed were customers. Of course, I was intrigued. What a great job!  Making millions appeals to me quite a bit.  But as I watched them, I saw that most of them never made it past week three. Why? Well, no customers and no pay checks.

When I was about 14 years old I got my first sales lesson. Our neighbor, whose name was Bela, was a salesman for Nat Pack selling freezers and frozen food. His job was to get an appointment in the "right" customer’s house; the right customer being the "woman of the house." His theory was if he could get into the house and talk to her about cooking, recipes, budgets and food, he could get her. You see, the freezer was free if she bought enough food. Bela used to affectionately call his approach “win-win.” The women got the food and the freezer and he got a sale. The problem, however, was getting a customer—this required a lot of cold calling.

Bela taught me his approach one summer. He'd pick a city block in a medium size town and I would knock on the doors and tell women about my friend in the food business. I would give them a gift, a set of knives, and ask if it was okay if Bela came back later. If she was married he preferred to come back when her husband was home. Sometimes I would bring flowers as a gift, which, I’m ashamed to say, I'd sometimes pick from a neighbor’s yard. But I was friendly, sincere and was able to make plenty of appointments. Oh did I mention I got 5% of the first month’s order! These days, a lot of people think it's impossible to get anyone to open their door to a stranger, and most people would blanche at the thought of sending their 14 year old out selling door-to-door.

Here are some other tips to consider to help make cold calling easier:

  • Find someone to introduce you to the person who is the decision maker for your target company. This could be someone who knows the person in your industry or who's within the company. It could even be a friend. Start asking around!
  • Put on a seminar and invite people you want to meet. A color and design seminar for designers, a marketing seminar or advertising seminar. How about a “meet and greet” for people who could benefit meeting others in their field?
  • Read the newspaper for articles about companies that might be prospects for you. Drop a note complimenting them on the article or the award they received. Tell them you will follow up with a phone call on such-and-such a date. When you call tell the gate keeper you promised this person a call and he/she expects to hear from you. This will get you past the gate keeper. 
  • Know what you have to say but don’t memorize a script. Just call to set up an appointment–not to sell anything.
  • Go online and find out as much about the company as possible. Find out about their community connections, what boards they sit on and where they send donations. Cold calls are never cold if you know who you’re calling on.

For more on cold calling:

Happy holidays!

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A Holiday Gift: Share an Experience and Build a Life

24 December 2008 Categories: Blog

One day I asked my sister about her childhood. You might think it a funny question, considering we grew up in the same house. But her recollection of growing up is so different than mine — the people who influenced her life were different than mine; and the experiences that she had growing up were different than mine. What is similar about our childhood is that we each had people who made a difference in our lives.

I think of a friend of mine telling me how his grandmother gave him his first trombone when he was 15 and it changed his life.

I think of my next door neighbor who taught a 10 year-old with cerebral palsy how to swing a bat. The boy's name was Norman and he became a successful and vibrant member of our world.

Holidays-tony I think of the teenager down the street who taught a skinny kid with braces — me — how to dance.

Holidays-2 I think of my dad, who balanced the back of my sister’s bike and and yelled “I’m still holding on” as she sped down the road.

I think of our neighbor who laced up my skates one cold winter day and held my hand as we sped across the lake. While sitting on a plane last week, I read about a new skating rink opening up in Houston.  Oh my gosh, I thought, next week I'll be in Houston! I must  go there. The memories of skating and the frigid cold were in front of me as if it were yesterday. Who could I go with though? It'd be a shame to go alone.

Holidays-1 I shared my thoughts during a seminar when a young woman by the name of Annette said, I’ve never been, I would love to go! Two hours later we were laced up in rented skates for our first trip around the rink. I watched as she held on to the side of the rink laughing and then as she ventured out with her arms flapping like a small bird about to venture out of the nest.  As her confidence increased she darted off across the rink, yelling, I’m going to take my nieces! I thought suddenly of the movie “Pay it Forward.”  Maybe life isn’t that complicated… A series of events linked together by emotion.  Time with friends, family, children, and lovers creating memorable experiences. 

What will make a difference this holiday season… more stuff?  Please, no more sweaters!

How about the look of delight on someone’s face as you laugh and create a new experience; the look on your own face as you share that experience; taking the hand of a small child as you take a ride on the bus; a dinner with friends to celebrate good food and the gifts of the past year; delivering a dinner to a shelter; rescuing an animal from the cold.

Holidays-3 We don’t realize how much we influence the lives of others. It could be your neighbor, the 16 year-old kid who works on Saturday in your warehouse, or simply a stranger. All of us have the ability to change a life for the better. All of us are looked up to by someone.

You probably won’t have to think hard or too long to determine what you can do this holiday season. Let me know what you’ve done this holiday season, send the photos and we’ll post them.

Hey did I say my amazing dancing friends dragged me out to learn to Salsa last night?

Happy Holidays!

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Partner With Your Customer for the Best Results

23 December 2008 Categories: Blog

These days, products are only part of the equation.

Gone are the days when reps and companies were all about products and delivery. Offering the right price and a speedy delivery is a given.  The key now is being able to deliver the elusive added value. Good feelings, honesty and caring are components of added value. With the volatile economy, your customers — if you're a manufacturer — are probably having a tougher time attracting and getting their products into their customers' hands. 
 
So how do you tap into this added value and position yourself in front of your competitors? First, by recognizing that you are your product's added value. Your ability to empathize with your customers/distributors and their challenges will deliver as much value as any product in your bag. Empathy is about understanding the customers' situation and then determining how you can best help them build their business. Here are some tips to keep in mind.

Become the right partner. Do some homework. Find out exactly what challenges your customers face and have an open discussion about how to address them. Be positive. Come up with ideas to challenge them.

Know your customers. Are you throwing something against the wall and hoping it will stick — or do you really know what customers you're after? Research who they are and what will make the loyal to you.

Know Your Products. Read magazines like Fabulous Floors, Floor Focus, Floor Covering Weekly, Floor Covering News, and National Flooring Trends and don’t forget industry trade shows such as Surfaces and Coverings

Go outside the industry to look for solutions. Who also caters to your customers and what are they doing? Maybe you can come up with something new. Home Channel News is a great out-of-industry market with lots of information on the big retailers.
 
Have high ethics and morals. Being honest is one thing, but acting in an honest fashion may be different. Gossiping about the competition and their problems does not support honesty. In fact, it gives your customers an uneasy feeling. Don’t carry tales from one customer to another; give each one of your dealers the support and care that they deserve.
 
Respect your customer and how your customer runs their business. Everyone has their own way. Just because you're in the marketplace doesn't mean you know what's right. There are benchmarking standards published yearly by the World Floor Covering Association that would be helpful to your customers. Don’t forget the fiber people and their expertise on color, style and design.
 
Remember your alliance is to your industry and your company. If your company fails it won't help your customer. Do your best to help your business thrive.
 
Do a self-assessment. What do you bring to the table? What do you really know about your customer and your customer's customer? You may be a product mavin but can you convince a retail customer to buy your product? Do you know who your customers' competitors are? Have you attended a Chamber of Commerce meeting with your customer? Polish those networking skills.
 
Take advantage of classes being given for your partner. The right manufacturers are partnering with your customers by providing classes in sales, marketing and business 101. Not only should you be pushing your customers to attend these programs, but you should be attending these classes too. No one wants to go out of business.
 
Hang around in the retail store with your customer. Wait on a few customers, work a private sale, understand how their private label credit card works and how it builds business.  
 
As Ben Franklin once said, "We must all hang together or assuredly we shall all hang separately."
 

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Convert Customers Who are On the Fence into Buyers

23 December 2008 Categories: Sales

Istock_confused-indecisive Customers often have trouble making decisions. Fear is one reason, guilt another. A few people have recently told me they aren't sure how to approach indecisive customers — especially in this economy. Is it appropriate to push them or not?  Should they offer more discounts or not? My thoughts are: why would the economy change the way you sell? If you pushed before, why not push now? If you gently guided before, why not continue to gently guide? The economy — or any other external factor — shouldn't dicate how you approach sales. Do what you've always done, just strive to keep doing better.

Remember, a customer's decision to not buy has more to do with uncertainty than price. Work to remove their fear by talking about your product's benefits, warrantys, and how well you're doing. Customers want to be sure that you will survive to be able to continue providing them what they want. Discounts might work–but offering gifts will work more in your favor. "A gift with purchase" around the holidays is what the fragrance manufacturers are currently offering.  It certainly has an appeal. On the other hand, huge discounts yell huge desperation.

Showing genuine concern for your customers will always take you far. Call them up to see how they're doing. Call as a friend. Ask your customers if they're planning on entertaining at home for the holidays or if they're going away. They'll appreciate the concern and your interest.

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Selling at its Best – Country/Western-Style

18 December 2008 Categories: Sales

The other day I was talking to my friend J.D. Green about sales. 

J.D. has been a territory manager as well as trainer and I consider him a long-standing friend. J.D. always has an interesting take on sales and life so I thought I would share a conversation we had recently.

“Lis," he said, "no matter what you’re selling or who is buying, customers all want the seller to put them in the picture and make it be perfect. Perfect. Just the way they want it in their mind. If you can do that, whether you are selling person-to-person or business-to-business, you will be successful because you have shown empathy and you will have catered to their emotions. It’s summed up in a country and western song by Tracy Lawrence called 'Paint me a Birmingham.'" 

Here are some of the lyrics:

He was sitting there, his brush in hand, 
Painting waves as they danced across the sand. 
With every stroke, he brought to life 
The deep blue of the ocean against the morning sky. 
I asked him if he only painted ocean scenes, 
He said for twenty dollars, I’ll paint you anything. 

Could you Paint me a Birmingham
Make it look just the way I planned 
A little house on the edge of town
Porch goin’all the way around
Put her there in the front yard swing 
Cotton dress, make it early spring 
For a while she’ll be mine again 
If you can Paint Me a Birmingham.

I guess Tracy says it all. Maybe we all need to learn how to Paint Me a Birmingham. Thanks, J.D.
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Status Quo is Latin for “The Mess We’re In”

17 December 2008 Categories: Change

Yesterday I was speaking with my friend Tom Ramsey about the economy, and asked him what he thought about the current state of affairs. His response was memorable: “Status quo is Latin for 'the mess we’re in.' Nothing good will happen unless something or someone changes — for the better.”

Tomramsey Tom is not only my friend with a marvelous sense of humor, but comes with the best credentials.  He has an MBA from Georgia State, is currently Sr. Faculty and Curriculum Coordinator at De Vry University's Graduate Division, and has spent 12 years in the Georgia House of Representative and two years in the Georgia State Senate.

As far as I'm concerned, it’s almost like talking to the President himself! Sure, the president has a headache as a result of everything that's going on, but it’s not all his fault. Part of the problem seems to be that everyone wants things to go back to the way things were when things were good. “The big three,” you may know (and I’m not using capitals anymore for them), want bail out money so they can feel better, keep their lifestyles the same and basically pretend that they’re not in the dumpster.

Wouldn’t it be wonderful if we could have someone give us money too so we could turn back the clock to better times?

If anything is to be different with your businesses, you will have to bite the bullet, get focused and hire someone who thinks differently. It amazes me how often business owners hire someone who thinks like them. That reminds me of the old sentiment, “misery loves company." When times are good, why listen to anyone? We know it all, and why break it if it works?  When times are bad, a business might find out how really off the mark it is. Over the years, I have hired several coaches during both challenging times and good times. I always feel energized after meeting with them — my ideas get validated or questioned and I'm able to find some new options. In any event, I see that there's the possibility of change.

New Sign on the Door

The game around us is changing these days and the rules are changing. Things are not like they were. I might venture to say they might never be like that again but I’m reminded of when I wrote we would never see gasoline at $2.50 a gallon — and last week I saw it for $1.89! So who knows? 

If you’re losing money, the first thing to figure out is why. What has changed for you? Yes, the economy has changed, but more importantly have you been changing along with it?

I saw a TV ad the other day for Best Buy where the salesperson was talking about how they were located near a military base and they had special offers for military personnel and their families. The salesman also spoke about how proud he was of our military forces. Obviously, the opportunity was there and they grabbed it. 

Are you losing money? If so find out where the loss is coming from and stop it. Stopping it is different than hoping it will stop. It's the difference between being proactive and reactive.

A highly respected business owner told me recently he was losing business in one of his stores at the rate of x number of dollars a month. He said, “If this continues I will have to close the store next year. I’ve tried all kinds of things but it’s just not getting any better.” He was essentially asking me, what should I do?

I looked at him and said, why not just close the store?

He was somewhat taken back by my statement but I continued by saying, look at all the money you would save if you closed? Of course there were other issues involved – a building lease and a centralized warehouse. But this alternative created new opportunities that he hadn't considered – opportunities that could turn out to be more profitable than he though.

Socialmedia Social media is a geat way to change your business. And in this environment, it's critical. Do you know what customers are saying about you? Are you controlling what they say? Is blogging still out of your vocabulary? Check out Remarkablogger or Duct Tape Marketing. Both are great sources.

Are you so entrenched in who you should be, could be and want to be that you can’t see who or where you are? I think of a musician friend of mine who continues to talk about the success he had 10 years ago and how he wants the same thing. What may be missing in the equation is: what’s changed since then, and where can you go with it?

What many businesses need is to get hit with “a dose of reality.”  I’ve heard people respond to this by saying: you’re stealing my dream! My thoughts are, unless you are going to live in your dreams there are very few options there. I just picked up a copy of the December 2008 issue of Entrepreneur. There's plenty of information on trends that will help you with reality. It really is the best place for you and your business, as it provides you with the most options. Start reading, talking and tuning into your reality – it’s possible success is hiding right under your reality nose! Do whatever it takes. Invest in training programs that help with reality and change. Remember, in bad times, word of mouth is still your best bet. 

"Change alone is eternal, perpetual, immortal." – Arthur Schopenhauer

Additional Resources

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Tough Times Demand Tough Leaders

15 December 2008 Categories: Blog

Leadership "Leader" is More Than a Title

This morning I had a call from a CEO who I admire very much. He wasn’t as upbeat as usual and for the first time in months I could feel some despair in his voice. The economy was finally taking a toll on his psyche.

Getting through these times and staying on top requires putting aside friends, family and even co-workers. As a leader, you might just feel plain alone—outside by yourself. Leaders work harder in tough times as the workload gets even heavier, which adds to the stress. It’s the kind of job that doesn't have much room for vacation.

To be a great leader you have to be able to balance it all. In order to balance it all, you have to understand yourself, where you’re going and what you want to achieve–in all parts of your life.

Why, you ask? Well, if you don’t understand yourself and your values, you will always be doing things for others, trying to please everyone, feeling pushed around and never knowing where you’re going next. If you don’t get it for yourself, how will you be able to get it for the people who depend on  you?

It’s important that you start with your core being. I’m not going off into therapy talk, but it’s your core values that will keep you connected and make it easier and allow you to focus on your business.  Asking yourself some questions about who you are and what you need will enhance your productivity and improve your relationships.

Some questions to ask to develop your leadership style:

  • What floats your boat? Do you thrive on change or do you thrive on challenges?  Are you motivated by recognition or is helping people what you’re into? Through these tough times you will have to build closer relationships with people that count.  You will need people you can count on who will move forward and who are not paralyzed with fear. This includes your family and friends.
  • After you interview yourself, interview the key people in your life. What is motivating them during these tough times? What are their expectations? Do they match yours?  Most likely not; that’s why you need those with the same values on your side.
  • Who are the “key advisors” in your life? This does not mean your whole management team. In times like these, not everyone is capable of being part of the solution. Some of your team members are struggling with their own sense of loss and panic. This is the time for levelheadedness, change and forward-moving habits. These are truly the times that "try men’s souls." And women's. 
  • Are you open to feedback? Maybe you’re used to operating in a vacuum, but I doubt it. Your salesmen need to be on top of it, finding out what advertising and promotions are working.
  • Do you know your staff? Identify your liabilities, who’s calm, loyal and sensitive. Stop the loose cannons.
  • Are you rewarding your producers?  Meet with key managers,  your best salespeople, the ones  who are  bringing  in business and closing sales, bookkeepers, customer service people, installers and truck drivers. Combine your residential team with your commercial group. Get everyone on the same page and tell them you want ideas that will work. Get their ideas on business and what are customers saying.
  • Control the rumor mill. Hold a meeting with your company; not pep rally but one where you can assure everyone that you are in charge and you will get through this together. Be honest. You don’t want them to learn details through the newspapers or your suppliers. Keep your meetings on schedule and stay on track.

Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were. – David Rockefeller

Resources:

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The Truth About Male vs. Female Customers

08 December 2008 Categories: Reaching the Consumer

According to a recent Shop Smart Survey, 76% of women will ask for help when shopping vs. 37% of men. This tells me that men would rather buy the wrong item than ask for guidance. Knowing this, you may not want to ask a man if he needs help in a retail store!

Also, 76% of women are likely to return an item they don’t like and for men it's 34%.

Oh, and men and women who shop together have closer relationships, how about that? As they shop they discuss their goals, their ideas and how they make decisions. They may also hold hands, which is considered a very intimate experience for women.

The study defined three male types and how women can shop with them.

1. Mr. Grab and Go!

This is the impatient man who just wants to get done with the shopping and doesn’t care what gets bought. You know what it’s like working with couples—he wants to run and she’s still looking. Give him something to do: television, wireless connection for his computer, magazines. If you don’t, most likely nothing will get done because she will get upset and just want to leave. Or he will be too antsy and insist they leave.

2. Waiter and Whiner!

This is the man that stands there and taps his toe, keeps looking at his watch and talks about what else he has to do. Again, give him a task, get your Wii system hooked up and running, let him clean the warehouse or run the forklift.

3. Mr. Money-is-No-Object!

Sure this sounds like the best customer for you but he may just be there to flex the muscle that says "I can buy anything I want!" In any case, show that you are concerned about the money he spends and you want him to still get what’s right for him. With customers shopping bargains these days it’s wise that you show you’re concerned about spending and value.

More About Saleswomen

Remember, if you send a man out for a pair of pants, he comes home with a pair of pants. He knows what they wants, gets it and goes home. Mission accomplished. Send a woman out for a pair of pants and she comes home with everything, including a suitcase if she sees one she likes. Why? because women like the chase, and the chase is in your store. Don’t push her or “qualify her," she’ll do that when she sees what she wants and she’s ready.

The other night I went into a local furniture store, Raymour and Flannigan, in Albany NY, to browse. I had nothing in mind to do but look at things as I find furniture shopping to be a great pastime.

I’m greeted by a female salesperson who immediately says "nice shoes!" My friend Mary laughs — I think the salesperson must have been in one of my sales training classes. Rena takes us on a tour of the store, casually gets our names and asks, "What are you doing to your house?" Great line! I spend the next 45 minutes looking, talking, thinking of showing her a floor plan of my house. She continues to give me the tour, after offering a cup of coffee. We part as new friends. She says she'll call, which she does, and we continue to discuss my living room.

No she didn’t try to close me. How can you close a customer that’s really looking and doesn’t know what she’s looking for? Well you can’t and you don't; you make friends, get a phone number and go from there. She didn’t ask if I needed help—what woman needs help shopping? Name me one, I dare you!

The Hunt vs. the Kill

Remember, women like the hunt; men like the kill.

Hunting takes time; we look under every bush, in the cabinets and the closets if they’re open. We might even look in your price book if it’s handy. By the way, where did you get those shoes? No we’re not ditsy or disorganized, we just like the hunt, the planning and the big picture.

Women buy the big picture, men by products. Women only care about features and benefits when they’re ready to justify the buy. F&B’s don’t sell us—they just confuse us. We’re after how it will all come together, how we’ll use the room and what it all means. Men buy the pair of pants.

Women see endless possibilities, men see the pair of pants. Men didn’t notice your showroom—they don’t need it to make a decision. Women noticed everything about your showroom—that’s where we hunt.

Hey, if you’re female, happy hunting!

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“Lean Out” to Find New Answers for Your Business

07 December 2008 Categories: Competitive Advantage

Black Friday was what we expected: lots of stuff got sold. We witnessed the crowds, the frenzy and even the frightening event at Walmart: crazed and desperate shoppers pushing each other to go after the bargains.

Black Friday might seem like a blessing to business owners, but any dummy can give stuff away. It takes a good salesperson and a smart business owner to make money when the whole world is saying: give it to me cheaper!

If we want to make it in this economy we have to learn to "lean out." That's a skiing term used mainly when skiing moguls. In order to maintain your balance you need to learn to lean your body out away from the mountain, into the unknown.  One of the reasons I never got to be a good skier was because I had such a hard time trying to "lean out." I could get into it sometimes but most of the time it scared me. But like skiing, finding the balance of your business requires leaning out into the unknown.

Where you've been in the past will not hold the answers to your business in the future. The place where you have never been will hold new ideas and possibilities.

Considering that, when concentrating on your retail profits:

  • Try not to drop prices. The influx of cash will make you think you're making money, but cash flow isn't profit – it's just cash. It won't keep you in business. 
  • Lowering your prices will take away value from your products. You'll begin to think that your products aren't worth it.
  • The only business out there will come from the customer with money. This customer is the one that will survive and send you referrals.
  • The cheapest price in town will not satisfy the better customer. The better customer is not looking for commodities.
  • Can't get rid of it? Raise the prices of the "dogs." Leave the prices there for a few months and then put them on sale.

Remember, you're planning not only for today's customers, but for future customers.

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