09:25 am | 0 recommendations | Be the first to comment

Discounting in slow markets

Should you offer lower prices to stimulate business in slow times...like we're in NOW?

I've always been against discounting. I always recommend doing "buy three get one free" or "$100 off your second purchase" or offers like that. I don't like offering a lower price, because that becomes the dollar figure people associate with your product. 

But I'm here today to make a confession... This fall, my speaking calendar is exceptionally thin. October, which has typically been my best month, was practically empty. So here's what I did: I emailed all of the prospects who I know meet in the fall, and who have previously indicated that they couldn't afford me. I offered a one-time deal that amounts to about half of my normal fee. I sent the email out yesterday, and within 24 hours had four dates on hold. "On hold" doesn't mean definite yet, but it means "highly likely." Two of them are sure bets. The other two are very likely to come through.

Before you tell the whole world that you're ready to lower your price, first go back to all of the prospects who have ever indicated that they were interestd, but balked at price. This reinforces the value and importance of a good database, and in having your sales and service people complete ALL fields every time they talk to a prospect or customer.

Targeted offers can be made quickly and inexpensively if you have good information. And you don't need an IT department to do it. I'm a one man band, and have excellent records at my fingertips.

So if you're suffering from this slow period in the economy, don't just start whoring yourself out to the general public. Look for the people who couldn't afford you before, and make them a deal.

By the way. The contract for my reduced fee deals demands confidentiality. I can't have them telling other meeting planners what a deal they got. 

02:07 pm | 1 recommendation | Be the first to comment

Where to advertise

I just spoke to a group of motorcycle dealers, and the number one question on their minds was "Where should I be investing my advertising dollars?"

The first question you have to answer is: "Who do I want to talk to?" Most small brick-and-mortar merchants like the group of dealers just kind of throw their advertising out to the whole public. They hope that the relative few real prospects out there will see it. When you do that, you pay for a lot of overflow advertising - dollars spent talking to people who will never buy from you.

Once you know who you're talking to, you can find media they read/listen to, places they go, events they participate in and web sites and blogs they're likely to be active in. The more clearly you can define your target customer, the more accurately you'll be able to find places to promote yourself.

Traditional media, like newspapers, radio and TV, can tell you exactly who their audience is. Radio stations have loyal listeners, and they can tell you how old they are, how much money they make, where they live and what their hobbies and interests are. TV is different. People are loyal to specific programs. Right now, there's a clear (and large!) demographic group that tunes in to American Idol. If the definition of their viewer closely matches your definition of a target customer, it may well be worth the exceptionally high price of their advertising spots.

You may have somewhat different target customers for different products you sell. You must go throught the same selection process for each one. You want to spend your money talking to prime prospects and not waste any more than necessary talking to people who aren't.

08:17 am | 0 recommendations | Be the first to comment

The Magic Formula for Marketing Communications

Whether you're writing an ad, a mailer, a web page, a flyer or a brochure, it's important to present your information in a sequence that will grab your prospect's attention, walk them by the hand through your communique, and demand response.

First, you have to have their ATTENTION. Appeal to a base emotion to slap them out of the fog of distractions you have to compete with. Emotions fall into two general categories: Fear and Greed. You've seen both used effectively. Which works for you depends on your product or service, your target customer, and how audacious you're willing to be.

Now that they're paying attention, you PROMISE a benefit. Something about their life is going to be better if they stay with you: They're going to feel better, be more attractive, wealthier, closer to their kids. Of course, the benefit you promise has to be something they really will get when they respond.

When you make a strong promise, you'd better PROVE you can deliver. This is where you tell them about your years of experience, credentials, peformance statisics, guarantee. This is the rational part of your arguement. (They make the buying decision based on emotion. They back it up with rational data.)

Now it's time to get them to make a move. It's time for a PROPOSITION, or offer. "Act right now and you'll get X in extra value." The more compelling your proposition is, the more response you'll get. Just make sure it makes sense with the product you'll eventually sell them.

It's time for ACTION. They have to be able to reach you quickly, easily, and at zero expense to themselves. And when they do respond, be ready. The person who answers the phone should know about the proposition and be able to fulfill the request immediately. If you are mailing something, get it out immediately. If it's a free download, make it happen fast and without the need for some exotic software to open it. This is their first experience with you. If it isn't wonderful, they won't be back.