What do we really sell?

How can I hold on to my margins when I keep getting beat out in this "price war"?

This question was a question I saw posted on LinkedIn this past weekend. While a predictable question, the responses were surprising. In reading over 60 comments, almost all of them were an attempt to console versus offering direction. It wasn't a forum for advice...it was a support group. In fact, most of these individuals said they were encountering the same obstacles and were struggling to figure out what to do. Many of the ailing authors were extremely frustrated that "price" was their only leverage. The answers mostly came from individuals that felt their product was a commodity and "when all you offer is a commodity their is no way to secure your margin!".

It was very apparent, after observing this post for a few days, that the majority of these individuals felt they had lost all control because "selling has become all about price." The unfortunate issue is that many of us never consider our personal value proposition or the company's value proposition as part of the equation.

Too many times we let the product take the spotlight and we believe that the product will sell itself. If this was true then sales organizations would not spend near as much money on their sales professionals. After all, if it was just about price or the product would sell itself then we could just train monkeys to walk in and deliver the proposal. The reason companies invest a great deal of time and money in their sales force is because they recognize that the sales person can drastically impact the value of a product or service.

In times like this we must become clear on why what we, personally, bring to the table and what our company adds to the deal. When we struggle to identify the differentiating factors within our product we must focus on identifying what makes up our personal and company value propositions.

When we go into a sales call we are selling three things...

- Our product/service
- Our company
- Our personal services/relationship

The key to gaining ground when selling these three elements is to identify which ones we have an edge in and which ones we don't. If we acknowledge that our product is the same as our competitor's then we must focus on selling ourselves and our company's position in the industry.

ex.

"Susan, from what I have heard you say, you are really focused on expanding your business and eventually want to take it world-wide. You also mentioned that you are tired of having 10 different contacts within one company. The fact is, all of the companies involved are offering the same great product. However, we are the only world-wide solvent company in the area. When you do expand, we will be able to address your needs from Chicago to Tokyo. That being said, I will also be your only contact within our company. If we need to involve another department, I will do the running around so you don't have to."

As you see in the example above, the sales professional focused on the areas in which they had an edge and they did their best to exploit them. While the sales person in the story did not have an advantage in the product, they illustrated their personal and company's value proposition in a way that addressed the customer's needs. When we begin selling three elements and not one...we are not as easily impacted by factors outside of our control. This 3-tooled arsenal gives us the ability to sell in any and every situation.

Get Excited or GET OUT!

I am going to start off this post in a different way...

I will start by warning all of you, who are reading this, that this post may cause you a few sleepless nights! In this post I will challenge each of us to become more introspective toward our lives and our professions.


Now that I have addressed that...let's get started!

In my last post I made the comparison between fishing a sales. This post will take on a much greater topic!


A little over two years ago, as I was preparing for my final exams, I got a phone call from my Dad...


"Hey Bud"

- "What's goin on Dad?"

"Well I have good news and bad news for you"

- "Ok....go ahead"

"We I am in the hospital...but I am ok."


That morning, as my dad was getting ready to catch a flight, he started having severe chest pains. When my step mom asked if my Dad needed to go to the hospital my Dad gave her an overwhelming YES! For my dad to risk missing a flight to get checked out, she knew that something was seriously wrong! Being a nurse, she didn't take any chances and drove my dad to the emergency room immediately.

As they began performing some tests on my dad the nurse "attempted" to give my dad something for the pain. My dad quickly jumped in and said...


"If at all possible, I would like to avoid taking anything. I have a flight here in a bit and I really need to make it"


The nurse did not argue but she did return with the doctor...


"Mr. Jacobus...the nurse said you didn't want anything for the pain."

- "Well I have a flight here in a few hours and I would really like to catch it if I can"

"Mr. Jacobus...Sorry to be so blunt but you are not going home today! You are not going home tomorrow! You probably won't be going home this week! You have a bilateral pulmonary embolism!"

- "Is that serious?"

"Well Mr. Jacobus...IF you had made it to the airport....and IF you had made it on the airplane...I can GUARANTEE you would not have made it off!"


As I was hearing this story I began to realize...I was probably less than a couple of hours from losing my father, my mentor, and my best friend!



Over the next few days they treated him for his PE and eventually released him from the hospital. As my dad rested at home he received a phone call from one of our family members. It would be a call that would re-emphasize my dad's belief that "life is too short"...


"I just wanted to check in on you and make sure everything was going ok. Are you feeling better?"

- "I am. Just trying to heal up right now. I will probably be off my feet for a couple of days."

"Well Jim, I guess this is a pretty good sign that you need to slow down!"

- "Slow down?!?! I think it is a sign that I need to speed up! There are still a ton of things I want to accomplish and I was only a few hours away from never having that opportunity! I will never slow down...and do you know why? Because life is too short!"


That was turning point in my dad's life...and in mine! That day taught me a lot about life, work, and relationships.

A few months later my dad and my step mom started their marriage ministry and began pursuing many of the dreams they put off. It also drove me to ask myself, "What do you really want to do? What is that that you could not imagine NOT doing?

It was the ultimate awakening for me!


Jason...Why this topic? Why now?


Over the past few months a number of people have lost their jobs or taken pay cuts. While unfortunate, it reveals our true passion by removing money from the equation. It also allows us to ask ourselves...


Do I really enjoy what I am doing?

Is this really what I feel called to pursue?

If this was my last day, week, month, or year on Earth...would I want to spend that time in this office?


My guess is that there would be some of us that are right where we need to be. We wake up excited to go to work. We feel that we are leaving our mark on this globe and we couldn't imagine doing anything else.

But...

I would say that there are probably more individuals out there who dream about doing something else. We may have jumped into a job without any passion or lost it somewhere along the way. If this is you I encourage you to ask yourself a few questions...


If I hit the lottery tomorrow, would I stay where I am?

What would I do if money, power, recognition, and/or pride was not an issue?

What am I teaching my children by pursuing something that I am not passionate about?


3 Reasons We Should "Get Excited or GET OUT!"


1. Life is too short. One thing that is certain is that life is uncertain. We don't know how long we have so we must find something we love to do and give it everything we have!

2. We will never reach our potential if we are not passionate about what we do. Passion is what keeps us working and pushing when things get tough (ex this economy).

3. It is the greatest gift we could ever give our kids. I am not a parent but the greatest gift my parents have given me is to show me what a passionate professional can accomplish!



Are you passionate about what you are doing?

If you experienced what my dad experienced, how would that change your career path?




I hope this post has encouraged you to "Get Excited or GET OUT!"

Do you only fish when the weather is nice?

Yesterday, as I was getting off the plane in Corpus Christi, Texas I was struck with disappointment! We were planning on leaving the airport and heading straight to the marina to go fishing...but the weather was horrible. Windy, rainy, and chilly! Not exactly what I had hoped for. As we made the 30 minute drive back to Rockport my dad asked me, "Well bud, you wanna give it a try? You never know what is going to happen. All I can say is that are chances of catching fish only increase if we give it a go!"

That was all I needed to give him the thumbs up!

As we jumped onto our boat I looked around...only 3 cars in the parking lot (normally filled with 100 cars).

What were we doing?

The weather is not good and the chances of catching fish are slim to none. Why are we going to go out there in these conditions...just to waste our time?

As we puttered out of the marina we were both second guessing our decision to go out. We had no idea that our decision would pay off in just a few short minutes!

We eventually made our way to our first stop and shut the boat down. I decided to start with a top-water (a lure that floats...always one of my favorites because you can see the fish attack it).

It was only a few minutes, and a few casts later, that I would learn a great lesson.

On my 3rd cast my lure exploded. It was one of the biggest hits I had ever seen! As I began to fight the fish I could tell that this was a BIG fish. After a few minutes of watching the fish distance itself from our boat, I began to gain some ground.

The fish was only 30 yards away now!

Now 15!

I could almost see it!

As the fish came up to the boat and I could finally see it, I quickly realized that it was the biggest speckled trout I had ever caught!

The 30" monster (a giant in the world of speckled trout) was quickly scooped up by my "net man" (my dad).

Catching this kind of fish...when the conditions are this bad! What are the chances?

more like...

Catching this kind of fish...when the conditions are this bad! What is the lesson?


Do you "give it a go" when the conditions are bad?

Now, I am not going to sit here and tell you that the conditions are great in the economy right now...because they are not! What I will say, is that shutting down and not "fishing" is not going to help our chances.

There are a number of individuals out there that believe the effort is not worth it because the economy "won't allow us to be successful"!

I mean, "what are the chances of bagging an elephant in a time like this?"


The conditions may not be great but there are a few things this "monster fish" taught me about fishing when the economy is sub-par...


1. We will never know unless we "give it a go!"


2. Opportunities surface in bad times. We were able to fish wherever we wanted to because there weren't any other boats on the water. A rough patch in the economy can occasionally take our competitors out of the game!


3. When we decide to give it a go...and it works...that type of success feels so much better. We recognized the challenge, we battled anyway, and we came away triumphant! It also gives us the strength and drive to endure it in the future because we tell ourselves, "You know, it was like this the last time...and I bagged that huge account! Today could be another one of those days! I won't know unless I give it a try"


4. Most importantly...We go out in "bad weather" because that is what a professional does!


I hope you are enjoying our YOUNG GUN BLOG! If you are, encourage your friends to join us. We would love to have them!

Hammer or Nail Gun?

I posted an article the other day that obviously generated some thoughts...so I figured I would re-examine the topic. After posting "How To: Incorporating Twitter Into YOUR Business" I received this email...

"Jason,

After reading your article it made me think. I am a 52 year old sales manager and I am getting a little fed up with young people getting rid of old fashion networking for this new "social media". Back when I was starting out we put our nose to the pavement and sought out valuable relationships. Now you "young guns" think that it can all be done on the internet. Not meaning to bash your article but I think this Twitter and Facebook crap is just that...CRAP!"


While confused (given that the individual found me on a BLOG), I was not up upset. Sometimes the best learning occurs when we take our views and allow others to critique them. Being an introspective person is a great foundation for continuous growth.


So what I will do now is give you, and this anonymous author, my thoughts on why I feel that this technology is so important...


Earlier today I was speaking with Donna Fisher (www.DonnaFisher.com), one of the leading experts on networking, and we were discussing the direction networking is going. Donna is an active user of Twitter, Facebook, and LinkedIn and she believes that while networking is still built around the same framework, there are numerous tools on the market that allow us to reach a community that was previously unavailable.

After thinking about Donna's point of view I decided to share some supporting thoughts of my own...


What do you mean "Hammer or Nail Gun"?


Networking is much like building a home in the fact that it takes a great deal of time and there are not many shortcuts that can be made. When building a home, time and quality have a strong correlation with one another. We must still pour the foundation and begin piecing together the frame. If it is something that we want to last, then we must give it the appropriate attention and focus it needs.

The difference in building homes now is, we are using nail guns...not hammers! Using a nail gun does not change the way a home is built or eliminate the need for a solid foundation...it just makes us more efficient at our task.

Would you say that using a nail gun takes away from the structural integrity of a home?

I don't believe so.


The key is not whether we are using a hammer or a nail gun. The most important factor is that a professional is the one placing the nails.


If we take an unprofessional person and give them a LinkedIn account then we will, more than likely, see the development of shallow relationships. That beings said, if we give that same unprofessional individual a face to face meeting, I don't think it will increase their potential for establishing long term relationships.

It is not the mode by which we make the connection...it is our purpose when pursuing the relationship!


Simply put...

If we take a genuine interest in other people and seek out ways to help them, we will be build lasting relationships!


Thoughts?


Thank you to all of you for your feedback, whether it supports my view or not! Both groups impact my growth and the growth of those around me. I hope you have a great week and feel free to offer suggestions for future YOUNG GUNS blog posts!

Jason@aplayersonline.com

Tricks, Tactics, and Techniques...5 Things Purchasing Professionals Do To Influence YOU!

A little over a year ago I did a month-long research project on the "Purchasing" profession. In that month I interviewed over 25 purchasing professionals, went through numerous online classes, and read every negotiation/purchasing book the national association recommended. When I decided to start this project, I had no idea what I was getting myself into. In this blog I am going to share, with you, a few of the tactics and strategies that purchasing professionals, around the world, use to influence sales professionals!

Some thoughts to consider before we start...

1. This information is not industry specific. I interviewed purchasing professionals from wide range of industries.

2. Not all purchasing professionals fall into these categories. When searching for purchasing professionals to interview, I asked for the toughest, most aggressive purchasing professionals out there. The reason for doing so is so I could illustrate the extreme...which would make everything else a cake walk!


That being said...let's get started!


Who are these "purchasing professionals"?

- They are some of the most intelligent and passionate professionals I have encountered.

- Purchasing professionals live, eat, and breathe negotiating. This is not a hobby for them...it is their life!

- They are some of the most consistent learners I have ever seen. Purchasing professionals are regularly reading, going to workshops, and listening to industry audio programs.

-They are extremely competitive! Almost every individual I interviewed had some history of playing a highly competitive sport. They don't only want to beat us...they want to dominate us!


In the next section we will discuss 3 things...

1. I will illustrate the strategy used....

2. What the purchasing professional hopes to gain by using it...

AND

3. How we, as sales professionals, can defend these tactics!




Price Is Too High - This is one of the most used and most effective strategies used in the purchasing profession. This might as well be an introduction for some PAs. Purchasing professionals sometimes have not even considered the price but they feel it is a great way to start the conversation!


Goal of PA- To get the sales professional out of their comfort zone. The number one goal of a purchasing professional is to identify 3 things... - Will the sales professional break on their price? - How fast will the break? - How far will they break? The more price is addressed or defended...the more power it has in a negotiation!


Our defense- stand our ground. If we break on our price right out of the box, the purchasing professional will say to themselves, "Wow, they are breaking already! If they are dropping the price this fast then they must have some significant room to move!" In response, we can also ask one of these three questions in response... PA Statement - "Mary, I am sorry but you product is too expensive!" Our Answer- 1. "Ok John...help me understand how you evaluate price. Is it cost of ownership or the initial cost? 2. "Compared to what?" (definitely an edgier answer but will let them know we are holding firm) 3. So! It's worth it! (very edgy response...but can be extremely effective in the right scenario)





Nice Guy- This is where a purchasing professional will attempt to create a friendly relationship right off the bat. They may ask about our family, compliment our professionalism, or even ask about our hobbies. They will do whatever they can to get us to like them!


Goal of PA- To get us to let our guard down. It is a very effective tool to get us to compromise our position...because we enjoy working with them. They feel that if we like them then we will be willing to give up a chunk of the margin.


Our defense- Think about our family, our home, our car. Will that individual send our children to college? Will that friend pay our mortgage? We get up each day to tend to our business and that is what we must focus on...our business. If that person has a genuine desire to establish a relationship with us, they will understand our position.





The Guilt Trip- Have you ever made a mistake during a meeting? Have you ever showed up late to an appointment? Quoted a customer the wrong price? Didn't know an answer to a question you should have? Have you ever forgotten to call a prospect back? If we have answered yes to any of these then we have given the purchasing professional a gift. They will take our mistake and use it as leverage in the negotiation.


Goal of PA- To make us feel so bad for our mistake that we are willing to drop the price just to make it up to them. This one is not used as often but, when used, is almost always effective! - Salesperson- I'm sorry...$150 is as low as I can go. - PA- That is as low as you can go?! You showed up 30 minutes late and you are lucky to be sitting in my office right now...and now you are saying $150 is as low as you can go? - Salesperson- I apologize for being late. I guess I can do this for you for $140. (their forgiveness becomes a concession they have given us. Now that they have given us a concession...they want one from us!)


Our defense- Apologize and move on! We will make mistakes and it is crazy for anyone to believe that we will be perfect. That being said, should we give away $10,000 of our company's profit for being 15 minutes late? I don't think so. We must apologize and jump right back into the negotiation...without baggage!





The Nibbler- is when we have come to an agreement, we are about to sign papers, and the purchasing professional says, "You do have a rebate program don't you? Do you give discounts for paying early? Training for our people is included in this price, right?


Goal of PA- is to give us a taste of the sale and drive us to start giving things away. They use this tactic to get us right on the cusp of the sale and begin asking for a few more things. Sales professionals can be much more giving when the salivation begins.


Our defense- When we begin giving things away it can become a slippery slope. Part of the reason this tactic is such a success is because is is almost never recognized, in the heat of the discussion. We must focus on the big picture and not get tempted by the idea of closing a sale. At this point in time we must pause and say, "Are these things important to you? If you would like, we can re-work the contract to make sure that you get everything you want. Would you you like me to begin re-working the contract?"





The WOW!!- If we have a product that is relatively pricey in the industry the purchasing professional may say..." $60,000?!?! WOW!!"


Goal of PA- To get us to begin lowering the price or start giving away concessions. They want us to feel like we are about to get kicked out of the office. This is really just a strategy to get us to question our position...and it is very effective.


Our defense- Stand our ground. We may say something along the lines of, "Yup $60,000 is right. I would sell it for $75k if they would let me." If we are confident in the price of our product they will hear it in our voice. If we second guess the price...so will they!






These are just a few of the many tactics used in the purchasing profession. I hope this helps and please let me know if you have any questions regarding the material.

Jason@aplayersonline.com

How to: Incorporating Twitter into your business!

I know most of us have heard of Twitter but many are still asking themselves a few important questions...

Why should I use Twitter?

AND...

How can I incorporate this tool into my business?

In this blog I will share with you a few keys to maximizing Twitter and using it to create a "following"...


What is Twitter?
Twitter is another great addition to the social media "force" that has taken the world by storm. Twitter gives individuals an avenue to relay information to each other on a regular basis and in a rather timely fashion.

From my experience, there are two types of "Twitterers"...

1.The individual that will Twitter the morning "play-by-play" of how their teeth brushing is going. If a storm comes through you will be informed of the sounds, size, and direction of the rain fall.

AND...

2. Individuals that will send out numerous articles/videos/links to new information. Twitter has become a platform for professionals to share valuable information that is relevant to their industry.


My blueprint for incorporating Twitter into your business...


How to: Start "Following" Others

1. Locate as many industry contacts/experts we can and begin "following" them.

2. Once we have built up a list of individuals that we are following then begin to weed through the list by sorting out those that we would consider a "#1" (those that give you the play-by-play of their day). This "weeding out" is what will make Twitter a business tool and not a scheme to raise our text message bill!

3. (Optional) After we have identified the #1's and the #2's...then we need to set up our phone to receive Tweets as text messages. We do this so we can receive information whether we are by our computers or not (to do this just go to the Twitter homepage and click on "Devices").

- After we have set up our phones to receive "Tweets via Text" we then click on the list of who we are following. On that list we will see an "On" and "Off" next to the person. If we click "On" then we will be notified, by text message, when that individual has posted a new "Tweet". I started off by turning on about 20 people...and it became overwhelming! I was receiving text message every 20 minutes. I now have 8 people turned on and that is plenty of information for me. The key is to determine how much we, personally, want to bite off.


How to: Start Being Followed

1. Add our Twitter name to our email signature. (ex. Tweet me @ JJacobus). As simple as that sounds it can be a great way to generate a following.

2. Plain and simple...we must become a #2 ourselves! We need to post "Tweets" that bring value to others. Sorry #1's but no one is chomping at the bit to know what you are searching for in the grocery store! The people that are followed the most are the ones that are consistently sharing valuable articles and links to their community of followers.

- I post articles, my blogs, new statistics, quotes, stories, videos, etc...

3. Start following others. I don't know if it is out of respect or just an opportunistic reaction but people tend to follow us when we follow them!

4. Begin referring articles from other people and include their Twitter name in the post. (Ex. Just read a great article on vision and purpose @Champjj). This lets our followers know that "Champjj" may be someone they would like to follow. When we begin to spread the information of others then they tend to share our information as well.


These are just a few keys to start incorporating Twitter into your business! Have fun Tweeting!


Below you will find some people that I have enjoyed following...

Champjj
ScottMcKain
DonnaFisher
Steve_r_Gardner
Randy_Gage

Leading Change

CHANGE...It's a word we have all heard quite a bit of over the past few months! With Barack Obama moving into office we have been exposed to many different initiatives to make a "change". This blog is not my opportunity to jump on my political soapbox but, more so, an opportunity for me to address a key aspect of any leader's role...Promoting change!

While change can be encouraging, it should not be the focus of any leader! A true leader focuses on the vision...on the RESULT of the change! Too many times we hear of a vision built around change when the change should only be a bi-product of an inspiring vision!

Details...Details...Details, Jason...

What is the difference between motivating people through change versus vision?

The fact is, change can be very uncomfortable! Tommy Hopkins said "the price of progress is the pain of change!"

That being said, a follower will only endure the pain of the change if they believe in the vision!

Many times people may get excited about the idea of change but they quickly fade because they are blind to the purpose behind the change!

When I was in high school we had a very good golf team. Many felt that we would be a strong contender for the state championship. At the beginning of the year our coach asked us..."Do you want to win State? Do you want those rings?" It was on overwhelming yes! Our coach then said, "Well, that means that we will have to take our preparation to another level! We will practice in good weather and bad! We will outwork every other team...and we WILL win the State Championship!"

Pretty inspiring huh?

We wanted to started working right then and there! We welcomed the chance to "outwork" our competition!


Now let's cut the "vision" out of the picture and see how inspiring my coach's speech becomes...

"Today is a new day! We are going to take our practicing to the next level. Starting today we will be practicing in good weather and in bad! We will practice harder and longer than any other team across the state of Texas!"

Almost sounds like punishment doesn't it?!

When the "vision" of the state championship was set in our heads, we took ownership in the work that it would take to reach our goal! We focused on the purpose...not on the pain!

As a leader, we must promote the vision because it is the vision that will push us through the discomfort of change!


Are you focused on promoting change or communicating a vision?