TAB president, Jason Zickerman, discusses some ideas for weathering the economic crisis.

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I found this recent blog posting by Dave Kurlan extremely interesting.  As you read it, give some thought to the Sales and Branding messages YOUR Company is sending into the marketplace.
Last week I received an email from my Dell representative’s sales manager.  It was five paragraphs, and started out great:

“Many of our customers have told us that, in the wake of this financial crisis, their IT budgets have been reduced, and that their finance organizations are requiring several competitive bids for every purchase.  Let us help you get the most out of your end-of-year budgets.”

If he had stopped there it would have been good for him, for the rep, for Dell and for me.  But he didn’t.  He kept going and wrecked everything!  He wrote:

“Our ‘refuse-to-lose’ commitment to you is to lead with the best pricing we can offer, taking into account your company’s total spend with Dell.  We promise to work hard to get you the best value for your company at the best price available.  Our goal is to BEAT every competitive bid you send us.  We’re still in search of a bid that we can’t beat!”

Again, if he stopped at “best value for your company” he would have been fine but no, he also went so far to offer the “best price available”.  Even that wouldn’t have been fatal - Dell’s best price, as opposed to the best price on the planet - but he finished with “beat every competitive bid”.

I’m having a difficult time believing that this is Dell’s new strategy.  If it is, it is surely a sign of the times.  It’s much easier for me to believe that this is the manager’s strategy.  Either way, if you don’t have any money, best price, lowest price, lower than that price is still something that you can’t afford to pay for. If you do have the money, and you were going to purchase technology before the year ended, Dell would have probably earned this business anyway (this went to loyal Dell customers) at their regular prices.

If you sell by undercutting, you erode your value, modify your market position, change what your brand stands for and turn the market into an even more price sensitive, commodity driven horror show.

What do YOU think?

© Copyright 2008 Joe Zente

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	Small business owners who are members of The Alternative Board (TAB) get hands-on interaction with other owners who are dedicated to solving your business challenges. By working with your peers to create, implement, adjust and stay on track to meet your goals, you will learn new ways to run your business more efficiently and effectively. With TAB, there is strength in numbers. In fact, 4 out of 5 TAB members are optimistic about their business in their local economy.   When you become a TAB member, you can expect: Different and refreshing perspectives on the common challenges all owners face Accountability to and from a board of peers to help you develop and maintain your results-driven momentum Accountability to and from a board of peers that help you achieve your personal and professional goals
Start solving your business challenges today.
Call Joe Zente today at 512-331-1822 or visit TheAlternativeBoard.com/investinyourself.
© 2008 TAB Boards International, Inc. All Rights Reserved  |  www.thealternativeboard.com  |  1.800.727.0126

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Christa Tuttle is founder and president of Launch Marketing, an Austin based marketing services firm, which works with technology oriented businesses to generate leads and drive revenue. Launch’s high impact and cost effective services range from developing and implementing integrated marketing plans to completing one time projects including company or product launches, demand generation campaigns, events, websites, collateral and more. Started in 2001, the firm has over 70 clients to date ranging from early stage to public companies. In 2004, Christa was a recipient of the Austin Business Journal’s Rising Star Award and in 2008, Launch received the Silver Award for Best Integrated B2B Tradeshow Campaign by Event Marketer Magazine.

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A Client’s Bill of Rights

Three Key Points to Consider When Selecting a Firm or Consultant

Typically, a company engages a firm or consultant when it lacks time or internal resources to accomplish certain tasks. While this reasoning is effective and can deliver results, the most significant value of working with a third party is the opportunity to gain an unbiased perspective and deep subject matter expertise. Once you’ve identified the need to bring in a third party, where do you begin? How do you ensure maximum value over the lifetime of your engagement?

Launch Marketing interviewed numerous executives to discover common pain points and successes experienced when working with a third party. After analyzing the results, the following are three of the top points:

• The Right to be Understood. It is often seen that some firms ramp up for a client pitch by preparing their resume of accomplishments instead of taking the time to do the homework necessary to gain an understanding of your company, products or solutions. The best pitches ‘feel’ like the firm is part of the company, so much so that it should be seen as extensions of your company’s internal team. The further the firm is along on that path of alignment in early stages, the better your odds are that it will add value to your team.

• The Right to Accountability. As a client, you have the right to receive work from a firm or consultant that is of absolute value to your company. If a firm is running up against obstacles on a project for a client, it is the responsibility of the firm or consultant to notify the client of the situation, and proactively provide an outline of alternative solutions to implement to help achieve projected goals.

• The Right to be Number One. Most importantly, you have the right to feel like you are the only client; the top priority. Regardless of how busy your point of contact is, he or she should always be responsive and accountable to your needs. If your point of contact can’t immediately start working on your request, he or she should at least respond with a phrase such as, “I can’t get to this today, but I can do so tomorrow.” A quick response to let you know they received the message and will work on it as soon as possible is priceless.

Know Your Rights

Make sure whichever firm or consultant you choose can meet these and any other needs specific to you, your internal team and your company. The expectations you outline up front can help you build a successful and long-lasting relationship with the third party you engage. To read the expanded version of this article, visit www.launch-marketing.com/company/articles.aspx

About the Author

Christa Kleinhans Tuttle, a TAB member since 2004, is founder and president of Launch Marketing, which acts as a virtual marketing organization primarily for technology companies, and offers a range of services from developing and implementing integrated marketing plans to completing one time projects including launches, conferences, tradeshows, Web sites, print materials, online campaigns, direct marketing and more.

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A Recession-Proof Sales Pipeline

After every big party, there is often a hangover.  At least twice each year, many Salespeople, Sales Managers and Business Owners find themselves on the headache side of vacations.  In September, they return from a summer of sun and fun, only to learn that their pipeline from June isn’t going to cut it.  They must start filling it from scratch.  In January, they return from the holidays, only to learn that their November pipeline was deficient and the filling process must begin again. 

This pattern is so common that it has become boring.  During good economic times, managing this pipeline roller coaster can be costly.  During tough economic times, managing this way can spell disaster.

Why do we let this happen?  What about urgency?  Lack of urgency prior to vacation is why the opportunities are still in the pipeline instead of closed, and the elapsed time since then may have been enough for your prospects to forget about their compelling reasons for wanting your help in the first place.  We know this phenomenon as The Law of Diminishing Pain.

What can you do about a measly and inconsistent pipeline?  First and foremost, RAISE YOUR EXPECTATIONS and COMMIT to fixing things for the near term and long haul.   Get on the phone now, call former and current clients and learn what they’re struggling with today.  While you’re at it, get some referrals or introductions.  Plan your next 3 prospecting events, set dates in stone for the next few months and take immediate proactive action to fill the top of your funnel.  Finally, commit to refuse to accept mediocrity and to upgrading your sales organization for good.

Today’s activities are your leading indicator for tomorrow’s results.  Take control of your destiny by developing a right-sized pipeline.  What is a right sized pipeline?  It is a funnel that is the correct size and shape to withstand any external or economic force.   It requires contact definition.  Here is a guide: 

Suspects (obtained an initial appointment)
Prospects (have need, pain, compelling reason to buy, you are differentiated)
Qualified  (you meet their criteria and they meet yours)
Closable (indicated they will buy)

As an example, John Q. Salespro calculates that 3 closed sales per month are required to achieve his goals.  If John closes 60% of his closable opportunities a right sized pipeline would have 5 at the closable stage.  If half of his prospects don’t make it to closable, he might need 7 qualified and 10 prospects.  If half of his suspects don’t convert to prospects, 20 suspects are required.  So John needs a minimum of 42 opportunities in his pipeline at all times (even during vacation)

Now it’s your turn. Using the criteria above, complete the 3rd and 4th columns.

Is your actual much better than your desired?  If so, congratulations.  You are prepared to start 2009 with a bang.

Is your actual as good as desired?  If so, congratulations. You’ll probably outpace your competitors.

Are you short of where you need to be, or do you need help figuring out how to create a right sized pipeline?    Email me and I’ll try to help you get you where you need to be.

© Copyright 2008 Joe Zente

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