Training Expense and Profits

It is essential that money spent on employee training be spent wisely. Far too much money is wasted on unnecessary or inappropriate training. In some organizations, there is no training plan, no training budget and/or little understanding of what training is most important to the success of the employee and the business. Does your business have a training matrix that shows what training is needed for each employee based on gaps in their skills? Or does your business paint all employees with the same brush and put them all through the same training? It is important to understand that not all employees need the same type of training. The impact on profits is twofold; 1) excess money is spent on unnecessary training, and 2) the employees are not trained to enhance performance in areas they are weak in. Look closely at how you are spending money on training. Is there waste? Is the training applicable?

Good Luck & Good Selling!

Russ

Price For Long-Term Relationships

There are many factors that enter into relationship development. One of those is pricing. If a customer feels that you are constantly trying to sell them something at an inflated price, there is a good chance you will eventually lose that customer. In their zeal to pad their commission checks, sales people will tend to go in one of two directions; 1) quote a price that is too low, or 2) quote a price that is too high. It is important to have a set of consistent pricing guidelines for your sales force and anyone else quoting prices. While sales people shouldn't overprice to take advantage of a relationship, they shouldn't under price either. Under pricing establishes a bad precedent in terms of their expectations for future purchases unless they clearly understand it is special pricing of some sort. Also, under pricing negatively impacts your gross profit. Prices should be established in a market/customer-driven manner with an eye toward generating reasonable gross profits.

Good Luck & Good Selling!

Russ

Do you have a product or service view of the world?

Do you view the world from the standpoint, "I sell (product or service) and I want to sell more of them." Or do you take the viewpoint, "I want to acquire and retain loyal customers." If your objective is to retain customer loyalty, you must ask yourself three questions:

1. How do I organize my marketing plans to achieve this goal?
2. How can I provide customers with what they want and need?
3. How can I solve customer problems and deliver value to them?

Developing a Customer Perspective

Effective marketing programs start from the customer's point of view. To operate an effective, customer-centered marketing program, you must:

- Know your customers. Develop the capability to record and store customer information, starting with a customer profile on what their environment looks like, who they are, where they are, what they buy, and what they plan to buy.

- Address your customers’ specific issues.

Segment your top customers into targeted categories that allow you to address their specific problems and interests.

- Talk to those who will listen. Prioritize or score your database to make sure you’re contacting those customers or targeting those prospects that have the most potential.

- Qualify prospects for interest. Don't just purchase any list or lead for prospecting. Be selective; match it to your customer profile. You increase the efficiency of your marketing dollars and sales time when prospects are more qualified.

Good Luck & Good Selling!

Russ

Principles Of Knowing Your Customers

There is no 'typical' customer. Each customer is a person or a business with individual needs, buying pattern and history. You must develop individual relationships with each customer.

Know your customers from your contacts with them. Marketing information goes deeper than marketing surveys or general market analysis. Database marketing provides detailed information about your customers and their business on an individual businesses, such as:

- Business name, title and job function, size and number of employees, phone number (enterprise-and specific site-based)

- Demographic, econographic and technographic characteristics

- Past product purchasing behavior and planned purchases

- Installed systems, equipment, software, etc.

Good Luck & Good Selling!
Russ