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Things an Old Man Knows

Things an Old Man Knows

FromWizard of Ads Monday Morning Memo


Things an Old Man Knows

FromWizard of Ads Monday Morning Memo

ratings:
Length:
9 minutes
Released:
Oct 29, 2018
Format:
Podcast episode

Description

Ten days ago, at the annual meeting of the most innovative and successful small business owners in America,* I was handed a series of questions to answer during the problem-solving session. Most of the questions had to do with recurrent frustrations in business.When I saw the group excitedly taking notes, I was a little bit surprised. Then it hit me, “I’m a lot older than most of these people, so they haven’t learned these things yet.”If they were glad to hear those solutions, maybe you will be, too.Here are a few of the things I told them:Your work doesn’t always speak for itself.Explain what you did and why you did it. Talk about a couple of ideas you considered, but rejected, and explain why you rejected those solutions. Only then will your client understand the thought and planning and effort you put into what you are delivering to them.You have maximum credibility when you put the sale at risk.Agreements established before money changes hands are the agreements that will forever guide the relationship. The time to explain what will not be included is when the sale hasn’t yet been made. Clearly and memorably emphasize anything you need your customer to remember in the future. To gloss over a possible disappointment during your presentation – or to bury it in the fine print – is to deceive your customer and poison their future trust in you. So say the difficult thing up-front. Don’t wait until later.When your customer rejects the solution you have prepared, don’t argue with them, even when they are clearly wrong.Just do the extra work. Only after they have approved your second solution will you have the credibility to convince them not to use it. To debate with them earlier will only make it look like you’re trying to avoid doing the extra work. But don’t be surprised if your second solution is every bit as good as your first. When that happens, just go with the second solution. Remember: it’s not about “winning.” It’s about making your customer happy.Never be afraid to charge more than anyone else in your category.And never be afraid to pay the highest price, either. The only company that can fund a customer’s hoped-for experience is the company with a fat profit margin. The services you get for half-price aren’t the same services you get for full price.It’s harder to get attention in larger cities because there is so much more happening.Ad campaigns take longer to get established in large cities due to the customer distraction caused by marketplace noise. The upside of large cities, however, is that the market potential is so much higher. Businesses in smaller towns often take off quicker, only to later face a sharply limited market potential due to the smaller population.Growing a local business from 2 or 3 percent of the market potential to 20 percent of the market potential is easier (and more fun) than lifting it the next 5 points, (from 20% to 25%.)The reason for this is because you will have picked all the low-hanging fruit by the time you are making 20 percent of all the sales in your category. In other words, you’ll be selling everyone who likes to buy the way you like to sell. Growing the 8 points between 25 and 33 percent of market potential will likely require you to make some changes you have long been reluctant to make. And growing a business beyond 33 percent of market potential is virtually impossible. The only exception to this is when the category has a shortage of committed competitors.Here are a few different ways to calculate market potential for any business:(Try to do it three different ways and see if the numbers...
Released:
Oct 29, 2018
Format:
Podcast episode

Titles in the series (100)

Thousands of people are starting their workweeks with smiles of invigoration as they log on to their computers to find their Monday Morning Memo just waiting to be devoured. Straight from the middle-of-the-night keystrokes of Roy H. Williams, the MMMemo is an insightful and provocative series of well-crafted thoughts about the life of business and the business of life.