Kill The Frills!

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Economy-crunched small businesses, stampeding to reduce payroll, need first to pull back the bells and whistles.

S C A L E   I T   B A C K.

Ideas, Proposals, Recommendations, Products, Services

                               

                                                  

Stop to think about it: If YOU are having trouble affording employee costs, your CUSTOMERS may be having trouble affording your product and service “extras.” [Restaurants have been scaling back since 2008 by offering better quality in smaller portions on slightly smaller plates!]

Let’s say you’re a consultant, and know in your heart of hearts that a client organization you work with needs to develop three new levels of consumer goods and services to stay competitive, but you also know that their naive management has failed to get its arms around the budget stranglehold that White House pressure has put on them.

You can lay it all out for them , knowing they will never pay your fee, and go down with the ship . . . or chunk up your recommended action plan to address just one new level, leaving the other two to simmer until the first of these can produce enough revenues to cover the investment and your fee, setting the stage for a level two proposal.

It’s worth the reminder that, as my father was known to exclaim and as Giovanni Torriano was first credited with recording the phrase in his Second Alphabet in 1662, “You can’t get blood out of a stone.”  And while we’re on the subject of hard subjects and difficult feats, you may want to accept the inevitable and just agree to “bite the bullet.”

In other words, when you can see that your proposal carries with it the hand-wrenching anguish that forces your client to back away from the table, scale it back. What can be accomplished by eliminating the bells and whistles and still manage to develop a new first level that’s acceptable, that can be expected to perform adequately?

Does this put a burden on you? Of course. When you may have been thinking you could do a $15,000 fee project, you find yourself settling for a smaller $4,995 fee project. What’s the answer? Do it with a $15,000 fee attitude, and use the extra time to get out and sell another client or two on projects that total $10,000.

So, now what? You lose $5? Ah, but now you have three clients and can more safely hedge your bet. If you work at it you may also generate $45,000 total a short way down the road, instead of just the opening effort for $15,000.

You can do this. The point is that everyone in business has reached a point of struggle (or at least substantial concern). How much further can this go? Will we have to go belly up? How can we pay the bills? 

Bottom Line: WE HAVE TO RISE ABOVE THESE KINDS OF THOUGHTS AND FOCUS ON HOW TO GET INCREASED SALES NOW BY OFFERING DECREASED FRILLS.

                                                                       

Force yourself to take a good hard look at what you’re selling and to whom. Can it be streamlined and priced lower without losing value or impact or safety? Can the excess packaging be eliminated or relaced less expensively without risking damage? Can you use 2-day Priority Mail instead of more expensive overnight shipping? 

Can you make arrangements to package the cars you sell with a gas or routine servicing giftcard? Some lawyers are doing reduced price packaging of basic family and couple’s wills. Some chiropractors will do basic 2 for 1 adjustment visits. The travel and hospitality industries constantly offer discount incentives that strip away luxury cost extras.  

                                                               

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Hal@Businessworks.US 302.933.0116 

 Open minds open doors

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