Corey Smith is the Vice President of Innovation at Fisher’s Document Systems where he maintains a blog on business and technology.
Two weeks ago I determined that I want a new, smaller truck. I need a truck because of my hobbies, but I want a smaller truck because of gas prices.
I went to the dealership and in about 15 minutes I had my truck picked out. I gave the sales rep my bottom line price - $325 per month. He told me that if we do business, he could meet that price.
I called him about an hour later and said I was ready.
The price came back to $367. Yup... he wanted a lot more. And he didn't even see it as a problem that I was already quoted almost $50 less.
I then called two other dealerships. This time I didn't tell them where I wanted to be but that if they could give me their best price for the truck and it fit my budget, I would buy before the end of the week. They never called me back.
Sale lost. continue reading...
If price isn't the determining factor in the purchase of something, but just a contributing factor, can we say that there is one, single, determining factor? I believe that the answer to this is a resounding "yes."
I think that one, determining factor is the value that a consumer places on a product or service. Value is the culmination of product, price, place and promotion. Value is the worth the customer places on a product as compared to the cost. When I say cost here, I don't necessarily mean monetary cost. I mean cost in terms of time, effort, money and energy. I mean cost in terms of what it actually takes for you to buy something.
How do you increase the value of the product you sell? How do you establish a greater worth to your "commodity?"
Is it by adding more, differentiated products?
I don't think so, I think that it is about providing the best customer experience.
The famous law of large numbers can work for you, and it can work against you. In sales it works for you when you visit or call upon hundreds of clients knowing in the end you will make the sale to a few of them. It can also work for you in your job search by applying to dozens of jobs looking for one open door.
The law can also work against you if you are not careful. One example comes from my field of recruiting. I regularly receive hundreds of emails every single day. This gives me some perspective when viewing emails from candidates. It is funny the tricks people use to hopefully make contact with someone that will give them a job. (At this point I could list several of the tricks. .but I don’t want to receive anymore of these type of emails.) The sad thing here is that it becomes so easy to see right through the ploy when I receive 10 or more everyday that read almost the same thing. It seems like someone out there has a blog where they post ideas for how to get through to a hiring manager and get that job. You better be first using the idea. .because give it 10 minutes to spread and you are just one of a dozen using the idea.
If you aren’t quick enough to be in the first few. .you may be a victim of the law of large numbers.
Jeff Bettinger is the Senior Vice-President of Human Capital and Investment at masterthebusiness.com and a Senior Recruiter for an International Engineering and Construction Firm.
It takes a really good meeting to be better than no meeting at all.
If you're going to schedule a meeting that lasts one hour and invite 10 people to attend then it's a ten-hour meeting, not a one-hour meeting. You are trading 10 hours of productivity for one hour of meeting time. And it's probably more like 15 hours since there are mental switching costs associated with stopping what you're doing, going somewhere else to do something else, and then resuming what you were doing before.