Are your quotes losing you business?

You may have heard me say before: ‘tear up your quote forms!’

Now, that's a fairly provocative statement.  And for many businesses, doing quotes is the only way they get business.  Or that’s what they think.

There is a better way.  Not only that, it will earn better margins, win MORE business, and serve your customers better.  A different positioning in fact, that will leave your lower priced competitors scratching their heads as to how you're winning the business.

First, what does the word quote mean to your prospects?

It means: "Check my competitors. Shop against me. Find the best price."

Think about it.  If that's how you're positioning your business, solely focusing on price, then your business will forever be fighting an uphill battle.  Now more than ever, given the increasing influence of the Internet and the 'global village' market.

Let's re-think the way you position your 'quote'. 

Start by not seeing it as a quote.

See your quote as a job specification, an action plan, a specification sheet...  Call it what you will, but don't call it a quote.  Get that word out of your vocabulary, and the vocabulary of your team.

Second, where do you put the price on your quote now?

Right at the bottom, at the very end?

Hmmm, what does the prospect do when they receive the quote?  They go straight to the very bottom and take a look at the price before they read the details.

So how might you address that?

Think about putting it right up the top.  Thank them for the opportunity to work with you on this project, state that their investment will be x, and then take them through the value they'll receive - list out the benefits.  Like this:

"Based on our discussions and your specifications, your investment will be x dollars.  Let me spell out exactly what you will get for your investment..."

Guess what your prospect is focusing on now?  Suddenly you've turned the whole focus around.  They're focused on the value they'll be receiving.  And the price is out of the way.

And importantly, when you write your proposal, assume that you've got the job.

Now I don't mean you don't have to try.  Instead, have the mindset, the 'belief system' that your solution IS the right one.  And that your prospect would be crazy to go anywhere else.

And in truth, if you've done your fact finding and set up expectations correctly with the client, there's no reason you CAN'T be confident you've got the best price/value solution.

One final point...

Even in a struggling economy, buyers are more concerned with the value of what they're getting than the cost.  There's a bit of wisdom here:

The seller often has more problem with price than the buyer ever will.

Hard to accept but true.

Until next time,

Chris Newton

P.S. If you'd like more help on re-working your 'proposals' or 'job specifications', take a look at this article on our Results Corporation website:

http://www.resultscorporation.com.au/Articles2.html

If we were to believe some online 'experts' ...

Some experts would insist you won’t listen to an audio message online for anything longer than six minutes.

Well, here goes THAT rule!

We’ve just spent three days editing down these nuggets of ‘pure classic gold’ for you from 8 hours of our most treasured audio archives, which in turn were distilled down from three days of a professionally recorded Australian marketing event.

Click this link to discover more: http://www.chrisnewtonblog.blogspot.com

Enjoy!

P.S. If you have any problems with this link, try:
http://www.marketinghelponline.com.au/bms-sampler.mp3

World's Most Successful Business for his Industry

Sometimes in our rapid pace technology driven world, we miss the most obvious basics that can create a competitive leap.  Now I know you’re NOT in the dry cleaning industry.  But when someone in a crowded industry with 8% of the outlets has 40% of the business, maybe the ‘basics’ have something to teach us ...

Mel Shapiro was a superstar in the crowded US dry cleaning industry (he had 126 competitors across the country!). Even though he had just 8% of the outlets, he managed to secure 40% of the business. 

In fact, his main location did more business than any other single outlet in the WORLD!

So what's the secret to his extraordinary SUCCESS?  It's not the way his factories are run.  It's all about his customer interaction.

Some brief examples. His competitors have their management desk out the back. He places his IN FRONT of the counter. On the CUSTOMER’S side! His competitors' teams make do with casual clothes (consistent with the industry). He wears a suit. 

It's his mindset, and the mindset of his team, that creates success, and it can work for any industry.  He gives four rules of success:

No. 1 KEEP A SMILE ON YOUR FACE.

“Happy people work better. They convey that message to the public. (It’s as if) you are the conductor of an orchestra… What are you conducting? Is it a funeral march? Or is it a happy tune? You must have a positive morale and everything you do must give that feeling…”

No. 2 KEEP YOUR PROMISE.

There’s that “DO-WHAT-YOU-PROMISED-YOU-WOULD-DO” again. Yes, there’s that “DO-WHAT-YOU-PROMISED-YOU-WOULD-DO” again.  By the way, not only should you ‘deliver’ as promised, make sure your clients KNOW you delivered.  That’s a key distinction.  TELL them or how can they value what you’ve done for them?

No. 3 MAKE A GOOD PRESENTATION.

“What does that mean? You have to clean up your stores or office. Your sign programs have to be good. Get rid of that cluttered look. Develop a 'distinctive' look. Hire a graphic artist, and be prepared to PAY for quality…”

No. 4 DO GOOD QUALITY WORK.

“Yes, it’s important,” stresses Shapiro. “But, the difference between one supplier and the next isn’t THAT great. The secret is to capitalise where you can project a dramatic difference.”

What are the messages in all of this?

From an advertising perspective, it’s clear that until ALL these things are in place, the advertising proper can’t do its long term job. As well, it’s evident that, unless you have a particular flair in the area, it pays to call in professionals to look at your image… décor, signature, uniforms… and staff training.

Wouldn’t it be nice to steal the march on your competitors… suddenly appearing one day with a brand new “packaged image and marketing thrust” that’s ten years ahead of them? I don’t know about you. But the idea is irresistible to me.