I heard this statement from a very astute entrepreneur whom I respect a lot. When he made this statement I asked him to explain what he meant.

In a simple sentence he said, “Say Goodbye to former competitors.”

A bad economy causes a lot of pain. A lot of people and industries are suffering as never before, and there is nothing positive about that. However, I see a silver lining in the economic slowdown we are experiencing today.

When you get over the worry and fear, you will discover that there are areas of opportunity and growth. In fact there are actually more opportunities than ever before.

In a bad economy, you can surpass your competition. You can win very easily in this economy, if you know how to benefit from bad times.

Others are dropping out of the race and looking backwards. They are terrified, and you are prospering. Not only because you apply the lessons from my Marketing Tip of The Week and from this blog, but because you are seeing opportunities and overlooked markets that they are not seeing.

As a business owner or professional, you should be anything but fearful in a bad economy. In a bad economy, other business owners become paralyzed. They don’t know what to do. They retreat and stagnate.

A small handful of businesses actually become strategic during hard times. By taking on a growth-minded frame of mind, they capture the vast majority of new clients in the market. But even more important, positive thinking companies will capture, “steal” in an ethical manner, 15-20% of the best customers from all of their competitors.

You can have your best years while those around you are facing disaster. You will come out of this down turn stronger, more prosperous, and ready to grow faster than you ever imagined.

What is your biggest challenge in this downturn? And if you have no challenges, why do you think that is? What did you do to eliminate challenges? What’s working for you?

I’d really like to hear from you on this. Getting a discussion going on this topic might be very helpful for all the readers of this blog, so let’s hear from you in the comments below.

And if you would like to get more people in on the discussion, go ahead and tweet this to your twitter list.

Technorati Tags: competitors, dealing with economic downturn, how to deal with bad economy, stealing customers, survive the recession, surviving the recession

There are times when a business goes from generating extra cash to generating not enough cash.  Any business that has been around for a few years will experience the ebb and flow of our economy…especially in a recession.

There are several ways to promote your business, whether you have an offline business, online business, or home business.

One way that comes to mind usually is to run a price promotion.  It is easy to do and will often fill the immediate need for short-term capital. It’s especially easy if you have an active, loyal email customer list.  Long range, it’s likely to hurt though.  I don’t mean to imply that price promotions are all bad.  They are often good. Close-outs or special promotions will help both the supplier and the customer. 

Another way is to create a fun event where you invite your A-list of customers to attend and receive offer discounts.  You could say that the new inventory is coming in soon, and you want to give them the advantage of saving some money in this terrible economy.  I’m sure if you put your mind to it, you can come up with ideas.

A third way could be as simple as creating new methods of advertising your product or service.  An ad, a poster, or even a new display unit, are some of the methods that could be used to boost sales and generate some quick cash.

I remember a friend who had an appliance store.  When he received a stove that had a dent in it, he advertised it at a low price and told his customers that the reason why was that it had a small dent in the bottom that they wouldn’t even notice.

When he had over 300 people inquiring about the item, he quickly realized that he could sell a lot more units, if he intentionally dented the units.  He did, and sold out immediately.  He does this all of the time now and makes a small fortune.  It’s a win-win…his customers get the units at lower prices and he gets sales.

What is important when business slows down is that you are willing to do something to get things moving. 

Let me know your thoughts.

Technorati Tags: boost sales, close-outs, generating extra cash, home business, offline business, online business, price promotion, quick cash, Recession, special promotions

What a question!   And what different answers!

Many individuals have a blank look on their faces.  And it’s understandable.  Many individuals who work for a company really don’t know what they are selling.

Let’s take a car dealer for example.  You can say he sells cars.  Or, I know all of you on this blog will say, “It’s the benefits they get from what they are purchasing.”  And you’d be correct.

A person doesn’t purchase just a car.  They purchase a car for what benefits they receive from it.  And the benefits will vary from car model to car model.  An example is a Corvette. 

Does a person really need a Corvette?  Is it economical?  Is it reliable?  I could go on and on.  The real reason someone purchases a Corvette, is because of the heads that will turn as he drives the car.  By the way, those heads will be mostly females. 

Another example is a fitness center.  Most of the individuals are members because they are overweight or want to keep fit.  One would think that what they are selling is weight loss and looking fit. 

What they are really selling is the feelings and benefits the customers get when they lose weight and look fit and trim.  The looks they get when they walk down the street. Or the whistles one gets.  The confident feelings that they get as they strut down the street. Or how about the special look in her husband’s eye, when……….

Just in these two examples, you can see the real things the two of them are really selling.

Spend some time thinking about your own company and what you are really selling.  The answer you get will lead to much success and just might explode your sales.

Let me know any other ideas you might have.  Give me your input on your own company and what you think you are really selling.   I’ll work with you on improving it, and as I said before, so that your sales will explode.

Technorati Tags: increase sales

Too see a larger version of the ad below, click on this link: http://www.kenvarga.com/Oregon_Fishing_Person_Ad.jpg

Technorati Tags: ad copy, ad story, ad writing, story telling

Last evening, I had the opportunity to visit my local Chamber of Commerce’s meeting, whereby they had approximately 52 tables set up by various local vendors.  They called it “Sizzling Summer Business Expo 2009.”

They also invited all of the restaurants in the area to rent a booth and created an area outside the exhibiting area, just for those nibbling on the offerings from the restaurants. 

Here are a few lessons from this experience…

The companies there paid $250 for a table, and no one…and I do mean NO ONE…thought to offer a response mechanism…something that would prompt the attendees to communicate with the vendor.  Sure, they gave out many items as gifts with their name on it, but nothing to prompt anyone to do business with them. 

Also, there were 22 local restaurants, which created 3 or 4 various dishes.  There were lines for the food, but guess what?  The attendees got their food and moved on.  Why didn’t these restaurants offer a coupon, for let’s say 20% off your dinner when you come in?  They didn’t have anything to give out to generate a customer.  Sad!

But let me tell you about a million dollar idea I gave one of the exhibitors.  His company does pest control.  Two years ago, I was having a problem with birds nipping away at the caulking around my skylights, and I put an item called a Bird Repellent Spider on the roof near the skylight.  In fact, I put 4 by my skylights.  This exhibitor had one of these on the exhibiting table and when I mentioned to him that I also had Spiders on my roof, he was happy to hear that someone had installed the them.  He asked me what pest control company installed them. I told him none.  I googled bird repellants, found and bought 4 of them, and hired someone to install them on my roof.

When I asked him how many homes his company had installed these units on, he said “None.”  He mentioned how difficult it was to convince a homeowner how important it was to install these spiders.  To make a long story short, his company had no way of convincing a home owner about why they needed these Spiders and how they would benefit by installing them. 

Here’s what I said to him.  Research the damage birds do to a home, or building, and the health ramifications that would result when someone catches a disease that many birds ccarry, then present it to the homeowner as a health and safety issue.  He and the others at the table loved the idea.

I then told them to research articles or studies that were done where birds have done serious damage to light posts along the road, light posts in Marinas, or any kind of poles.  They can create a new market to sell to by extolling the reasoning that the Spiders installed atop the light posts will stop birds from destroying the metal, and over the long run save the township, or marina, money.

This product, the Bird Spider, can be used in many other areas as a deterrent, so I told them to think of other areas to create a new market.

I asked them what this idea meant in money to them, and they said over a million dollars and that is why I titled this article “A Million Dollar Idea.”

Let me know your thoughts on this or any input you might have.

Technorati Tags: create a new market, creating a new market, lead generation, restaurant lead generation

Whenever I do a seminar, or when you look at the questions I receive from my subscribers, there most often is the question of what is more important, Selling or Marketing?

I receive statements such as, “I’ve been going to various seminars, reading many books, and as a result I’ve been collecting marketing ideas over the years.  I also have a stack of promising leads that I’ve accumulated over a period of time thru networking at my local Chamber of Commerce, Direct Mail, and Advertising.”

“I realize how important it is to continue networking, but then I create more and more leads.  How should I prioritize all of the leads and marketing ideas I’ve accumulated?”

Have you ever asked yourself this question?

If so, you might have lost sight of a very important truth.  The way to win in the marketing game is not to collect the most leads.  It’s to make the most sales.  Without sales, marketing is just another exercise.

Marketing that increases your number of sales is very good, and activities and things you do that don’t result in sales, aren’t good, even if they bring in plenty of leads. 

If you don’t follow up immediately on the leads you gather, you are just wasting your time and money.

The primary purpose of all marketing strategies like writing articles, networking, advertising, public speaking, etc., is to gain visibility and credibility.

Ask yourself this question. “Why do you want to be visible and credible?”

It’s not because you want people to know who you are and what you do.   It is so they will do business with you.

Use this rule.   Follow up on hot or even warm client leads immediately.  Customer leads are always more important than marketing for more visibility.  They result in profits.

When you have promising leads that could result in customers or clients that you aren’t contacting, then the follow-up stage is definitely stuck somewhere.  Gather your stack of leads and sort them into three categories.  Prospective clients, useful networking contacts, and others.

Then sort them into groups of Hot, Warm and Cold. Stop here and follow up with the Hot and Warm leads.

Action is the most important part of this exercise.  I see many individuals who sit on qualified leads and never turn them into sales. Don’t be one of them.

Technorati Tags: lead generation, marketing, selling

Now and every day, you need to be out there in front of your clients, showing them exactly why they should shop or visit you again.

Here are a few more ideas for Holiday Promotions.

Create a package of your products or services that your customers can’t refuse. Why should you do this?  Since the Economy is tanking, your customers and clients are looking for ways to save money and are also looking for deals.

It doesn’t have to be the cheapest price.  It means the most attractive offer that appeals to them. Do you have multiple products and/or services? List every product, service, report, package, or incentive you have for your clients.

Then package products that fit together.  For example many advisors have three levels of help.  A Silver, Gold, and Platinum level.  Create your own Silver, Gold or Platinum package arrangement that could go from inexpensive to a high-end price tag. 

For example if you were in the health field, say chiropractic, you can offer an adjustment, a book on stress relief, soothing music to relax your client, and whatever else you can add to the package. This could be your silver package. This could be a $100 dollar package.

For a Gold package, you could have 6 months of adjustments, candles, aromatic oils, and all of the above. This could be a $500 package.

Your Platinum package could be one year of adjustments, plus a facial and pedicure every other month, (done with someone you Joint Venture with), plus all of the above.  This package could go for $750.

Try massaging this idea to your business and create packages.  Joint venturing other businesses’ products and packaging them with your products/services can create a win-win situation for everyone.

Most of all, put a time limit on the availability of the package.  Make sure that they know that each package is only available for X days.  Anytime you can create a deadline and scarcity situation, you will immediately increase your response rate.

You might also think of giving your customers a Platinum membership and upgrade for Free.  Give them a gift for being a devoted customer.

If you are in the real estate business or insurance, think of joint ventures you can do with restaurants, accountants, and others.   The list is almost endless when you start thinking about it.  This not only keeps you in touch with your client, but it also allows you the opportunity to get them involved in thinking about the need for insurance or investment real estate.

As usual, let me know your thoughts.

Technorati Tags: holiday sales, increasing sales, promotions, seasonal promotions, seasonal sales

The beaches are almost empty, and from what I hear from the Aruba Hotel Association, the island is experiencing a 45% reduction in tourism. 

Besides the hotels low occupancy rate, the restaurants are virtually empty.  The deteriorating world economic condition is affecting everyone.

So you might be asking what do season tie-ins have to do with the economy?  Well I was there during the holiday season and I didn’t see any businesses taking advantage of season tie-ins.  Yet, in looking at the state of affairs on the island, it is indicative of most of the countries in the world. 

The various businesses, whether they were catering to the local Arubans, or the tourists, should have been capitalizing on the season to increase sales.  Unfortunately, they didn’t.

People are very aware of holidays and the seasons and tend to be very responsive to offers that logically are linked to any of them. 

There are dozens of holidays you can choose from.  Think of ways to tie your business or products into the seasons or holidays.

Here’s one example.  Send out a mailer to your customer data base and say that because of the spirit of X-Holiday, you would like to give them a special gift.  Take whatever you have to offer and package it into an offer that your customer can’t refuse.

Or let’s say you do home cleaning.  You can make a tie-in with Spring, which is just beginning.

Here’s what you can say: “We will give your home a complete spring cleaning for ‘half price’ and help you to permanently ‘resign’ your position as home cleaner at a surprisingly low cost.” 

Again, the same approach can be used at any time.  In September, for example, you can make the same offer for getting the home ready for Thanksgiving. 

I’m sure you get the idea.  So start thinking of ways to tie in the seasons with your product.  Let me know some of the ways you implement this idea.

Technorati Tags: holiday promotions, holiday tie-ins, seasonal promotions, seasonal tie-ins

Remember, a Joint Venture involves two or more professionals or businesses, who have common prospects, or possibly complementary services.   These entities now join together for mutual marketing and sales, usually for specific prospects. 

They will work together to create joint marketing materials, joint sales calls, referring of prospects, joint direct mail, e-mail or advertising campaigns.  They might even combine their services, talents and assets to create a larger base of potential customers. 

When I had my Insurance Agency, I would do Joint Ventures with accountants, financial planners and various attorneys.  Each individual professional benefited from wider exposure, more referrals, and marketing that is more efficient.

I would venture to say that every professional and company has many opportunities to create joint Ventures.

Here’s an important part of a Joint Venture.  Both parties must assume responsibility for marketing the joint venture. A Joint Venture Partner who expects to ride the back of the other partner will quickly find themselves alone. 

Here are a few things to keep in mind:

1. When you form a Joint Venture,  your partner will define your company and will directly impact your sphere of influence and reputation.  Each Partner’s reputation “rubs off” on the other. So make sure that you take care when approaching someone as a Joint Venture Partner.  As the initiator, you have the advantage of choosing who you want to join forces with. Do Joint Ventures only with those partners that have the reputation you want for yourself and the market reach that you desire.

2. When you approach another business to become your Joint Venture partner, you will have to sell them on the idea that the partnership will be beneficial to them, not just for you.  They will have a real profit benefit. You must always be ready to give before you receive.

3. You must also be the one to assume the responsibility for the Joint Ventures success and you will have to do the vast majority of the work, at least at first.  You will be approaching individuals who may like the concept and want it to work, but they will also be skeptical.  You will have to carry the ball and show them that you are committed to the Joint Venture and that you will produce results for them.

If you follow thru, the Joint Venture will be an ongoing marketing strategy that will create more and more new customers for you and your business. 

Technorati Tags: joint venture secrets, joint ventures

Here are a few examples:

I consulted with a company which had 6 restaurants.  It catered to different groups of individuals.  4 catered to local residents, and 2 were in locations that catered to the business community because the two were located among office buildings and hotels.

If you’re going to do a direct mail promotion, the questions is: should you mail the same offer to both groups?

My answer is no.  For the restaurants located in the business community, I would get a list of the executives and managers who worked in the office buildings.  I would then send them a mailer that contained a brief cover letter, a brochure stressing that the restaurant was the perfect place to stop for dinner with visiting executives whom they have to entertain, or the perfect place to stop after work for Happy Hour.  I would mention that it was a great place to meet, greet, network and mostly relax in a great environment.

I would also enclose a few coupons for a 2-for-1 executive lunch and/or dinner.  I’d would also have something in the envelope for the secretary to use for lunch.  It would offer a 50% discount for lunch.

For the neighborhood restaurant I would get a list of the area homeowners with families and I would mail them a letter, but with a different brochure.  I would also create a small booklet of coupons.  Perhaps two offers for 50% off of lunch, and depending on the day of the week that we are slower than usual, I’d offer a 2-for-1 dinner, early-bird dinners for two, or all-you-can-eat for spaghetti on the slow days.  This could be only for the hours of 4 thru 6PM. 

John, here’s one for you for your dry cleaning business.   Because you have a few locations, I’m going to assume that they are located in different neighborhoods.  If you are like most dry cleaners and advertise in the local community weekly newspapers, and since there are quite a few newspapers to choose from, you must be selective.  Let’s assume there are two newspapers and one goes to the high-income neighborhood and one goes to a middles-class neighborhood.  The questions is, “Should you run the same ad in both papers?”

In looking at the papers in my area, I find that most merchants run the same ad in both papers.  They are wrong to do so and here is why.

Just as I mentioned in the restaurant example above, there are different groups of individuals you are trying to convince to visit your establishment.  Therefore, the messages should also be different. 

To the high-income neighborhood, I would write an ad that stressed how important it is to be looking your best for upward mobility and how individuals would see them as well dressed. I would then offer them one suit cleaned and pressed free, with another suit at full price or one tie done free with each suit.  You can create other offers for other garments

For the middle-class neighborhood, I would write an ad that stressed quality cleaning at a very modest and affordable price.  I would also create a small booklet entitled, “How Dry Cleaning can Help Certain Clothes Last Longer,” and just as above, offer discounts to get them into the store. 

I’m sure you can think of others, so let me hear some of them in the comments section.

Technorati Tags: attract customers, more customers