Survive and Thrive Recession Part 2
Survive and Thrive Recession Part 2 from Direct Marketing Consultant Alan Forrest SmithThere are four words that changed my business. The powerful effect these four words had was to change everything in my business. Here they are “Here’s what I think”
Let me explain. After really struggling to get busy, make profits and stay afloat in 1989 and into 1990 with my first brick and mortar business I eventually took my very first business course.
The lecturer was a guy from California named John Paul Dejoria and his assistants from his company, Paul Mitchell Hair Care. I was shown something from them I have never seen before and frankly never given any thought to.
What I learnt took my brick and mortar business from almost sinking to not just staying afloat but also the ability to sail at full steam ahead. Within days of what I learnt turnover tripled and business grew. Here’s how.
You see we had clients coming into our salons but we charged very average prices. Our whole pricing strategy was based on what others were charging. At this time I decided to charge a lower price than everyone else whilst we were new to the village.
I feel almost embarrassed to write this but the price I charged for a cut and finish back then was £6.95.
During the training sessions I was told to take my prices from £6.95 to £25.95. Now I am talking about being told to do this overnight. Clearly as a young guy the thought of it freaked me out. I had a vision of clients simply walking away and not coming back.
The reality was though we were very good at the salon services we delivered to clients and knew if we were in the big city we could easily charge double of £25.95.
So going back to the training where he revealed how we could make such a huge jump in the charges. It was so simple.
He said do this.
Sit and consult with them like a doctor would consult with a patient. Listen very closely for any problems they have with their hair Then after they have spoken use these four magic words… “Here’s what I think”
Suddenly the power of the client telling you what they wanted turned into us showing the client that we are experts in our fields and as experts (specialists) we can now charge more.
The interesting thing was this… No one mentioned the price increase because they now understood that when dealing with experts, experts charge more. They loved the service of a one-on-one consultancy from a hairdresser and happily went from £6.95 to £25.95
Here’s what I didn’t mention at the start of this piece and its this, we did this in the deep recession of 1991. The results was astonishing. While other salons dropped their prices, we increased our services, our cleints care, our prices and the result was until I sold my salons 17 years later we remained at the number one position for hair and beauty within a huge radius.
How can this help you and your survival and thriving during this global recession?
Rather then do what most businesses will be doing – running around like headless chickens or sitting silent waiting it out – you can actually charge more for thr services you deliver. How?
Use the four words above and tell them, “Here’s what I think”! Why? Because people love to pay experts for expert advice, services or products.
Have you ever said this?
- “I know this restaurant is expensive but the food and service is amazing”
- “I know BMW are not cheap but they are worth every last penny”
- “I know Apple costs a fortune but once you have one you’ll never go back”
Ask what is recommended to the waiter and he’ll advise you with a passion after asking you back what you do and don’t like. Ask at BMW and they simply advise you to drive the car. Ask it Apple and you get a nerd that is absolutely totally in love with hardware, software and the clients. This is the power of saying to your buyers, “Here’s what I think”
So next time a client calls you and asks for a certain products or service can you say to them, “Are you sure that is what you need rather than what you want?” Then quickly follow thought after they share their feeling swith you with the words, “Here’s what I think”
I guarantee you’ll see sales increase as long as you always put your client before the sale! I’ll share more about that in another article.
People love dealing with experts, they love to be heard, they love to be advised, they hate to be sold to and can smell a rat a mile off.
Your results are closer than the so-called experts are telling you.
Do you need an expert to help you get to the next level fast? Shortcut success, shortcut sales or simply help you survive and thrive in this economy?
I’m here to service you. I’m here to listen to you I’m here to guide you. All you have to do is ask.
Click here to work with Direct Marketing Consultant Alan Forrest Smith