Preview of Cash Flow Tips Today for July

I have some wonderful content planned for the month of July and I'll be sharing my editorial format as well.

• Advice from a loan officer at a major bank
• A survey showing a business priority for Americans
• What does it really take to make money on eBay?
• What does it really take to invest in real estate?

Each month, I plan on an editorial calendar like this:

Week 1 Cash flow tips for businesses

Week 2 Personal cash flow tips - making money, saving money

Week 3 Cash flow, investing and real estate

Week 4 Tips from a business owner or financial professional

In this way, I can offer usable tips.

I'm always interested in interviewing others on their position related to a topic. Let me know and I can include you. It will provide visibility for your business, web site or blog as well.

Thank you for reading and I hope my Canadian readers had a wonderful Canada Day holiday this past week and my U.S. readers enjoy the 4th of July weekend.

Headaches at Work: Causes and Help

You’re sitting at your computer and you begin to feel the symptoms for headaches you know so well.

Are you powerless to fend off these headache symptoms as you rush to meet deadlines or do you have to keep relying on aspirin or prescription drugs?

Your headaches, whether at the office or working in the yard, might not start in the head.

Dr. Marina Banik, a chiropractor in South Pasadena, writes on her web site that headaches can start from spinal bones in the neck that aren’t supporting the head properly.

“You might not notice your reduced ability to turn your head,” according to what she has on her website, “But these subluxations [a stress response when spinal bones lock up] affect nerves, muscles and even the blood supply to your head.”

Dr. Banik writes that some are surprised to learn that their headaches are being caused by problems in their lower back. The upper spine compensates, putting the head off center, causing headaches.

So is the spine the source of all headaches? Not necessarily, according to Dr. Banik’s web site. The three most common causes are physical trauma, emotional stress or chemical toxins. Sometimes there may be a combination of factors. An examination process helps identify the most likely cause.

What can you do to ward off headaches so you can stay more productive on your job or even enjoy your times of recreation?

Paul Bacho, a certified trainer in Cleveland, Ohio, says simple exercises can help.

“Every 15-20 minutes or so, all you need to do is take your hands away from your desk, lean back in your chair and do a behind-the back stretch.

“Just put your arms around the back of your chair and try and squeeze your shoulder blades together so that you stretch out your chest muscles. At the same time, keep your head back so that you stretch out the front of your body.

“Whenever you do this (or any) stretch, try to hold it for three minutes.”
So what should you do if your doctor, someone at work or in your family tells you, “ah, it’s all in your head?”

Dr. Banik writes that the pain you feel is real. “And psychological sources of pain are common. However, this ‘diagnosis’ is often the last resort of health practitioners who have exhausted their possible explanations of the cause of your problem. In these cases, we’ve often found that undetected subluxations are likely culprits.”

While there’s no easy and immediate cure, Dr. Banik urges people with headaches or any ailment to eat properly, drink plenty of water, reduce their coffee intake and exercise regularly. And, above all, remain hopeful.

Cash Flow Today

How is your cash flow situation? Whether at work or home, I want to offer tips related to your questions about cash flow or tips you have for others.

I changed the title on the blog after many weeks of strategic thinking -- by taking into account a larger area of interest. Also, I figured I was writing about money on so many posts anyway.

Do you have cash flow tips to help others?

Those tips could be on saving money at work or home.

Those cash flow tips can be on helping others figure out how to increase their cash flow.

I hope you like the new title and I'll be getting back to posting regularly.

Marketing for Long Term Growth and Results

Marketing requires a long-term view and a marketing plan should be followed for long-term growth and results.

I say that since I've done so little writing this month on my blog.

Why? Circumstances at work and home.

I've finished managing a web site project that started for me last August. Since the middle of January to now, I've overseen more than 150 changes.

I've got a robust family and a granddaughter at home.

Meanwhile, I've invested in a property about 2,000 miles away from me.

Most blogs don't make it past 6 months I've learned. Probably for the reasons I've just mentioned. Just like most marketing efforts.

But if you treat blog writing or marketing as a marathon, then you're able to accept interruptions as water breaks. Sure, you may lose some readers or lose some ground to competitors. But you can make it back.

This is the premise of the Tortoise and Hare fable.

So many companies and non-profits I've seen "need money now!" They're faced with such an immediate need for sales that the rush for sheer survivial is intense.

So now I'm back to posting on my blog. I'm treating it as a marathon. And I hope to continue having helpful tips for you relating to business, money and real estate.

By the way, if you'd like me to interview you about your company, product or service let me know. I can post an article on a few different sites.

Happy marathoning!

I Discovered the Economy, Stupid

Bill Clinton's line "it's the economy, stupid" will always resonate in my ears. Not that I like the guy, but before I digress.

We traveled to New York's Times Square and then to western Pennsylvania during Christmas and New Year which is one reason I haven't posted regularly to the blog.

I really saw how "local" an economy can be and I'll be writing about that during the next several days. It seems Westmoreland County is gaining population while nearby Allegheny County, home to Pittsburgh, is losing population.

My sister is a real estate agent in Latrobe, PA which I always saw as an economically hard hit area, but that's not necessarily the case. The strength of a local economy is swaying us to seriously investigate investing in real estate there. Plus, housing prices are still relatively inexpensive.

I'll be digging up facts to go along with my personal observations on how local an economy can be. So stay tuned.

Rose Parade - Big Bucks for Pasadena

The bands are getting ready to line up and start the Rose Parade. USC and Illinois are getting ready to bang heads. I love the crowds and the pageantry and I always make it a point to leave our house 2 miles from the route and watch the floats and bands pass by.

I interviewed the CEO of the Tournament of Roses association on the amount of money that flows into Pasadena and Southern California during the days leading up to the parade and Rose Bowl game.

The association has commissioned a study to determine how much money comes into Pasadena. But he told me about recent studies that show up to $200,000,000 flows into Southern California from the parade and the Rose Bowl game.

Survive, Thrive and Your Niche Market

MySpace has a competitor and I don't just mean Facebook. It's a start-up that has selected a niche in which to compete. I haven't looked deeply enough to find how many users the new social networking site wants to lure.

It's called Zubby and I read about it in this article where the goal is to become more "family friendly" with less advertising than MySpace.

The first 1,000 members to sign up will get a share of the profits.

It serves as a reminder that a niche is always available for competing against a larger, powerful brand.

We've heard how people protest against a Wal-Mart or Home Depot when they choose a prospective location in a town. The biggest fear is they'll drive out smaller competitors. Although I worked for Home Depot in outside sales briefly, and I enjoyed the store, nevertheless I often stop at a small hardware store to get my supplies. Here's why: it's closer, I can speak directly with the owner or an employee who are knowledgeable and I'm usually buying no more than 3 or 4 items to total about $20 to $30.

Look at the airline industry as another example where customers will shop price and select a no-frills carriers such as Spirit Air over a major airline.

Like I always say, where there's a niche there's a way to compete against a larger brand name.

Money in Los Angeles

I was researching business networking contacts and I came across this site for business loans called Where's the Money in LA? http://www.wheresthemoneyinla.com/. I accessed the site through the web site of the Valley Economic Development Council which is located in the populous San Fernando Valley.

Where's the Money in LA features many different types of business loans available from the federal level to the local level.

An interesting site. But a word of caution. Even if you take out a low-interest business loan with favorable repayment terms make sure you have a solid business plan, a demand for your product or service, and at least a few clients now allowing you to break even. That reduces your risk of getting caught in a business turn down and not being able to repay the loan.

Start Your Own Ecommerce Site

How can you start a successful e-commerce site?

Learn a few lessons from Michelle Lieck, founder of Ladylanguage.com and a related blog titled Ladylanguage.blogspot.com. Michelle has a technical background which has been an advantage for her. When you log on to her site, look at her tag line and you can clearly see the niche market she has targeted.

1. I sold on ebay for a year and enjoyed it and I have followed fashion since I was 12 years old - I guess I wanted to fulfill a childhood dream. My prior gig was computer support, database design, and building internet sites as a business analyst for a large corporation - to which I owe most of my technical savvy. You really have to be technically inclined to work in e-commerce.

2. Ladylanguage.com has been live since Dec 1st 2006.

3. The store is beginning to meet my goals financially (the past few months have seen the biggest increase). I am not making millions, but building the company name alone has been fun and it could prove to be lucrative in time. I love what I do, but owning your own business is hard - I work nonstop at all hours, every day of the week - you have to be committed and relentless. You have to follow the books and file your taxes, etc.

4. Advice? Get in now - it’s getting more competitive out there. Develop a good business plan, make sure you are well funded, find an under served niche and become an expert in that area. Develop your social networks and get listed in directories (especially DMOZ and Alexa). Read, read, read - about your customer, products, technology - travel the same avenues your customer does to learn about them. Take care of your customers first and everything else next - they are your life so don’t make them mad!


Thanks, Michelle.

Okay, let's say you don't have a strong technical background - like me. There is a site where you can open up a store and begin learning. Try http://www.zlio.com/ or get started selling on e-Bay. Are there others of you who have successfully entered the world of e-commerce? If so, email me to share your tips.

Can Hotels Keep Guests Happy?

In this digital age, can hotels stay on top of technological updates to keep their guests happy? Take those heavy, boxy clunky televisions that are soooooooooooooo 2006! If you check into a room, wouldn't you rather have a modern-day flat screen high definition television?

I read about technology challenges facing the hotel industry on Blizzard Internet Marketing. Read here about tech challenges in the hotel industry.

The article was a summary of The BITAC Tech & Operations 2007 conference which included this excerpt:

The bandwidth debate was especially spirited. Basically, guests are using dramatically more bandwidth to do things like:

Download music and video.
Watch TV (Slingbox was called Evil)
Use VOIP like Skype or Vonage.
Use VPN to conduct business.
Apparently, when a few (or few dozen) guests start doing this all at once, they use up the available bandwidth, slow down the network, and complain with righteous indignation.

What are hotels doing about it?

Trying to prioritize certain usages (like VOIP and VPN)
Upgrade their entire network infrastructure… an expensive proposition
Choose between hiring a housekeeper or buying more bandwidth
Give away a low-level of bandwidth and charge a premium for true high-speed
Pray that high-speed cellular becomes common among travelers


This need to re-tool and meet customer expectations reminds me of a quote I heard the other week regarding trends - it was about trends in the non-profit arena but it will impact for-profit companies, too.

Big companies will get bigger, the small will survive and the middle will get squeezed out.
Here is where the concept of "economies of scale" plays a role.

The cost of upgrading wiring, furniture and etc in a resort or hotel chain must be enormous. However, a small, tiny independent bed and breakfast may be able to absorb the cost. The other advantage is customers may not want a mom-and-pop bed-and-breakfast in the mountains to have the latest digital upgrades and toys.

But the mid-size chains, or an owner of several franchises, may feel a pinch if an investment is made and tourism drops in the foreseeable future.

This scenario reminds me of the road-side motels I saw as a kid, and still do on occasion, where motels have signs outside advertising "Color TV" among their amenities. You wanted to stay away from those places.

So now is it upgrade to the latest digital devices or watch your customer base slowly erode?

Do you drive a truck or car?

Nissan car sales are up I saw as I scanned the business horizon today.

From NissanNews.com:

Nissan North America, Inc. (NNA) today reported sales of 84,947 units in October, up 8.8 percent from the prior year. Nissan Division sales increased by 9.8 percent over last year. Infiniti Division sales increased by 1.8 percent versus the prior year.

I did a quick search on the state of the automobile industry and saw in 2006 that light truck sales were outpacing car sales.

Even with ever-increasing gas prices, pickup trucks continue to outsell cars. In fact, the top three best selling vehicles since 2001 have been trucks. One reason for the popularity of trucks in recent years is their increased size and cabin space, as well as the increased availability of four-door crew-cab pickups. Due to the increased interior space, crew cabs make pickup trucks more attractive to families. The pickup truck is no longer regarded as a utilitarian vehicle. Rather, it has become a multifunctional family vehicle.

And today there was this report on General Motors and Toyota with light truck sales still brisk.

General Motors posted improved October sales, outpacing gains at Japanese rival Toyota Motor, as Americans turned back to light truck models rather than the car models that had be gaining ground.
GM (Charts, Fortune 500) posted a 3.4 percent gain in passenger vehicle sales compared to a year earlier, helped by an extra sales day this year.

So what do you prefer? Cars, trucks, SUVs or CUVs (Cross-over vehicles). I drive a 1996 Nissan Pathfinder with 126,000 miles that I bought in January this year from my mechanic. I expect to get another 100,000 miles from it and I drive an average of 30 - 40 miles a day right now.

My wife drives a 2001 Chevy Astro van with about 130,000 miles.

And we have a 1987 Nissan Maxima that has 157,000 miles we use to putt-putt around town.

By the way, here's a link to a report the Federal Reserve did in September on the auto industry.

And the other item in today's news came from Chrysler, which is eliminating up to 12,000 jobs.

Business Priorities: Sales Appointments and Final Proposals

Check your business priorities to determine your overall business strengths and weaknesses. The previous post focused on leads. Let's talk about appointments.

Leads

Appointments

Sales Appts and Final Proposals
The number of sales appointments you go on per month, or need to go on per month, will vary greatly depending on your business and your function. If you're a salesman then the sales appointment, proposal and asking for the order is an everyday task. In the home improvement industry, you've got to ask for the order when you're with the customer so you often eliminate the proposal stage as a separate stage.

If you're a consultant then the challenge is juggling sales appointments with the projects you're working on. How many sales appointments should you go on each month? It depends on how much money you need to earn and how large your current client base is.

Let's try to arrive at a simple formula you can adapt. For this scenario, let's say you're running or helping with a small company and you get to determine the company's projected income for the year, and ultimately, the income you need to take home.

You want the company to earn "x" dollars per year. Let's say $500,000. Is that from one product or one service or is it a combination of small orders and large orders.

Then ask yourself, "what's your current average order size?" Is it $10,000 to do a complete web site, for example. Or if you're a restaurant, is your average tab about $15 - $20?

Project in the next 6 months to 12 months, how many "average" size orders do you see maintaining? Do you have repeat business or a solid client base? If so, count on that income and then subtract it from the $500,000 total.

So let's say you want to make $500,000, and let's say you have a current customer base of $300,000. So now you need enough sales to generate $200,000 more. You might even want to be conservative and count on losing 10% of the $300,000 through attrition or unfavorable circumstances.

If your average order is $10,000 and you need to earn $200,000 you need 20 sales.

How many sales appointments do you need to make 20 sales? It depends on how strong a referral base you have and how well you close sales. If you're closing percentage is 20% then you'll need 100 sales appointments spread over the course of a year. So that's about 9 per month or 2 per week.

Go back one step and ask "how many leads do you need to generate 100 appointments?"

Tailor the number to fit your specific situation, and use the total number of monthly sales appointments you need to prioritize your schedule.

Proposals Accepted
Projects underway
Projects Completed
Invoices Sent (Billings)Invoices Collected

Check Your Business Priorities: Appointments

Check your business priorities to determine your overall business strenghts and weaknesses. The previous post focused on leads. Let's talk about appointments.

Leads

Appts
Social appointments
Networking appointments
Prospective client appointments

I believe there are 3 types of business appointments that aren't sales appointments. Social appointments can be meeting someone simply to say hi over coffee, play golf, etc. No business is expected. But these can also lead to networking for prospective clients and customers.

Networking appointments may be chamber of commerce luncheons, your business networking group or any group where you're seeking to network for the purpose of a lead.

I knew a mortgage broker named Roy who reversed the networking process. He would make it a point to sit down with a business owner and learn about their business, then he would make a deliberate effort to network the owner with a customer. He was a match-maker. And he often never asked for networking contacts himself. This was a "soft" marketing approach for him.

I asked him why he did this and his reply was simple. He didn't make home loans every day so rather than sit around and try to continually pass out his cards he truly wanted to learn about others and help them. But he knew this also kept his name and business in front of others.

Prospective client appointments, that meeting right before the proposal or sales appointment, is what we strive to put on our calendars. However, if you're coming in cold then you almost have to go through the "get to know you" stage. The more effectively you can network and the wider your social network then prospective client appointments are more warm.

Don't use this as the time to sell yourself. Just like Roy the mortgage broker asked about others and their needs, this is your chance to learn about the needs of your prospective client. Ask them questions, lots of relevant questions since people generally like to talk about themselves. This is also the first step in the sales process.

Sales Appts and Final Proposals

Proposals Accepted

Projects underway

Projects Completed

Invoices Sent (Billings)

Invoices Collected

When are marketing costs and design costs worthwhile?

You don't want to be bothered with the cost of marketing materials or a marketing cost. You're a typical business owner or manager who wants new materials quickly and inexpensively. But wait!

Marketing costs are strategic decisions. And they can pay off if they help you capture new customers or clients. Yesterday, I was reviewing a web site that I'm writing and managing for a company that supplies bedding to mattress manufacturers. It's going to be a basic site. I was asking them assessment questions to get the best text possible.

We finished a brief interview and then the wife of the owner was showing me around the facilities and she said how a new competitor was undercutting them on prices to take away some of their customers. Her husband was willing to try and match the prices but on some deals he refused to go too low or they would lose money and the customer would get an inferior product. She told me the customers eventually come back to them because of their quality.

I got an idea. The wife told me how their components are sold to the customers so I thought "why not make a brief flash presentation or at least a static graphical representation." The prospective customers could see the process and get a better understanding of the price.

It would cost them more but it would tackle one of their business problems: being undercut. It would also serve a second purpose: to show manufacturers that this small company is able to fully service them. In other words, give them an image of strength to show their full capabilities.

I feel good about presenting the option to them. It's not just upselling but it will be a strategic cost for a specific reason. The additional costs could easily pay for themselves with just one or two new orders.

Alice DiPirro of the PR Store in Pasadena, California thinks the same way. She told me about a customer who walked into her store and at first was hesitant to spend money on marketing collateral. But the investment paid off with new business.

In summary,

make sure the money you spend on marketing materials - whether print or on the web - have a specific purpose or tackle a specific business problem.

If you're new, you want materials to show you're knowledgeable.

If you're a small company but produce quality services or products, then you want an image of strength that rivals larger competitors.

If a competitor is undercutting you on price to take away your business, then you want materials in print on the web to show your processes, your knowledge and why your price is the best value.

Remember to think strategically. If you'd like to read up on business strategy, pricing and other issues please visit Donbizbooks.

Leadership Dilemma, Part 2

Career Coach Joan Schramm writes an excellent post in response to a recent blog posting on "Does Leadership Suck?" which was posted week before last by John McKenna.

Joan Schramm on Leadership and Following Leaders

Read Joan's post on traits and qualities of leaders. She even references General George Patton. Her blog is well-designed in my opinion, too.

Thanks, Joan, for contributing such a worthwhile post on the qualities of leaders.

Business Plan and Personal Development

Here's a link to an article on why you should write a business plan from the folks at NAFASG. It includes the tedious but important step of collecting input from others.

I'd like to point you to the blog of Mel Kaye who posted an updated version of the Personal Development List. Please take a look. There are excellent resources available to you.

The Leadership Dilemma

Does Most Leadership Suck? I'll answer this in the business world I've been involved in.

That's the title of a post "challenge" of John McKenna at Leadership Epidemic. Great question or thought, John.

My view isn't "does most leadership suck" but rather "when does leadership suck?"

Here's my short answer.

Leadership "sucks" when:

#1 The leader doesn't develop strategic, long-range thinking but only responds with a "do what I say or else" attitude to an immediate crisis situation.

#2 The leader uses people simply to advance the aims of the organization and has little regard for personal or professional developement of the people around him or her. I've seen this happen in the non-profit arena.

#3 The leader takes too much responsibility on his or her self and doesn't make others take responsibility. I've been guilty of this.


Okay, now the longer answers.

#1 An organization where I worked had a sudden change in presidents. It was a non-profit where for a few years there had been jockeying of power to replace the founder. An outside person was chosen but then had to step down because of inappropriate advances toward a key employee he had hired. The founder's son finally had the chance to take over and immediately announced that if people didn't like how he was going to run things then they could leave.
I might add, this was a Christian organization.

#2 It's distressing when the organization uses people to advance its own aims. Perhaps it's understandable in the business world when corporations are fighting for market share, etc. But building long-term value in any organization requires a respect for the people power available to you.

Okay, another non-profit where I worked served families. And the leaders, both paid and board members, were glad to have parents share their stories on how the organization was a benefit to them. However, there was no reimbursement of time or travel expenses for the parents. The push was to add activity in order to attract funding.

In my mind, the people were being used to advance the aims of the organization.

#3 Taking responsibility. Okay, I can look back to a time when I had other people reporting to me and I covered for their faults or weaknesses and took it upon myself. Or the time when starting a business and having someone else who wanted an equal share but didn't have the money to be sustained during the start-up phase. I "generously" gave up my shares early on and never got paid back. But in the meantime, I took on too much responsibility for the success or failure of what we were doing and felt like I was responsible for the other's income.

I should have said, "look, if you can't sustain yourself during this period then let's work out some other situation until we build a client base where you can take on an equal share. But until then, don't put the pressure on me." Eventually, I felt like the rise or fall of what we setting out to achieve was resting all on my shoulders. Big mistake of mine!

Thanks to John McKenna at Leadership Epidemic for raising this thought-provoking topic.

When do you believe leadership "sucks"? But more importantly, share times when leaders succeed and inspire from your real-life situations. We can learn from both.

Are You Giving Customers What They Want?

I had some thoughts on what people want from your business - it doesn't matter what industry you represent or whether you're a multinational conglomerate or a one-person office cleaning company.

First, stop and think about what you want when you're a customer:

timely service

good value

helpful or knowledgeable people

respect

What items would you add?

Thursday morning I was rushing to the office where I'm managing a few projects and the gas company was going to stop in and turn on our gas service. I had just enough time to make the office and greet the gas company technician, but I was passing a little bakery and figured I'd stop for a quick cup of coffee.

I pulled over, dashed in and I told the woman behind the counter I wanted a small coffee. I had to tell her twice. I was looking at the pastries and the coffee wasn't brewed. So she got the coffee started. I asked how long it would take and she replied about 2 minutes.

I waited and then she poured a cup and I bought a pastry, too. She asked if I wanted cream and I said, "sure." She walked back in to the bakery area while I started fidgeting. I thought, "they must not sell much coffee to people walking in off the street."

She came back and said she couldn't find any cream so would I want milk.

"Hmm," I wondered. "Could you get it fast?"

She dashed in to the kitchen, got the milk and I paid then ran out.

The coffee tasted good, the pastry was fine and both were $2.00.

I'll likely stop back when I'm in the area.

But all I wanted was a cup of coffee and it would have been nice if the coffee had been ready, or if she told me right away, "sure, but it'll take a couple of minutes. Do you mind?"

Because of the pressure on me, I was applying pressure to the business.

That day, I dealt with a client who was waiting for us to deliver their web site. I was the go-between from our side to the client's contact person. He wanted to know when certain elements were going to be due since they had a trade show and I was in the position of finding out.

How would I relate some of the delays and then ask for what they owed?

I softened the news by saying things will look great and it will function. But we'll need time to test the database.

Now, I was like the woman in the bakery waiting on the customer who wanted information.

I stopped myself: was the customer getting what they wanted from my team? And how would I diplomatically handle the situation?

Fortunately, we're delivering and continuing to do so today while they need to turn around information. I just want to make sure I can provide them with the best experience possible and the best service so they feel involved and respected in the process.

How have you made sure customers (or those who depend on you) get what they want from you?

Finding Customers: What to Expect

Customers have expectations and so do business owners, corporate or one-person shops, who launch a new service or product.

Background
I got a phone call from a friend of mine, Bryan, last week. He's employed by another contractor and paints murals and logos mostly in schools. He wants to run his own business for many different reasons so he recently got his own contractor's license. He told me he was going to exhibit at a trade show but after he wanted to talk with me about his marketing needs.


Dilemma
He called me up and complained how the trade show was a bust. He spent more than a $1,000 and had turned down a few jobs in hopes of landing his first potential customers. He had 16 people sign up and only one person seemed interested. Bryan called him later and the man explained he wanted to wait a few months to save his money.

He was discouraged and wondered what he should do.

I tried to explain how I wasn't surprised by the trade show results and it wasn't necessary at this point to spend money or time like that.

"But it was a home show," he protested. "I know a woman who's been painting murals for homeowners for 15 years and she gets her clients through home shows."

I countered by saying "I'll bet she also gets lots of referrals. And it may be some people at the home shows recognize her if she attends the same ones regularly."


Plan of Action
Bryan eventually settled down and I made the following suggestions. He does have a web site, by the way, but I haven't asked his permission to post it here.

I asked him to clarify his target audience: homeowner is too general. So we broke it down into a few different categories with one being upper middle class to wealthy young homeowners with children who want their children's rooms decorated in murals.

Now, where do you find those people without spending a lot of money on direct mail?

Where do homeowners with disposable income go?

Furniture stores
Carpet stores
Paint stores

These came to mind quickly. People who go there are often remodeling. I told Bryan he could leave his business cards with the owners and salespeople to pass along his service as a referral. Plus, he'd probably get some informal market research on the need for referrals.

Of course, there are particular zip codes where a nicely designed post card can be printed for about $100 and circulated easily.

He also started thinking of markets beyond homeowners and considered retirement homes where the administrators might want the property brightened up.

I told Bryan to give me a call in a few weeks and let me know how his search for customers is continuing.

I tried to boost his morale by not getting discouraged but letting him know that the first 6 months could be spent trying to get his own few customers.

Let's hope it's sooner.

Marketing takes perseverance.

Pricing and customer expectations

Setting the price and customer expectations seems pretty obvious, doesn't it? That's what Rlowe from Blast of Clarity wrote in his comment about my previous post regarding customers and price. And I agree.

However, sticking up for your price can be a daunting experience and we need those reminders.
It was for me when I was an outside sales consultant for Home Depot and our prices were much higher than independent companies. However, Home Depot is always going to be around. And they don't budge on their pricing aside from a few occasional discounts.

And when I sold for small businesses, I started adding up the hours for the web sites, etc., we were providing and I saw the dollar-per-hour fee plummet.

Customers can sometimes refuse to budge because they always want a better deal. And if you're in a business running on cash it's tempting to give in and then get stuck in the mire of "I'm now working for minimum wage! This project isn't worth the hassle."

And then you and your client lose.

Here's a good reminder even to myself for charging a higher price and sticking with it.

"We build into our pricing the ability to service you should anything happen. We'll be around."

Or, "we're able to take care of you."

Charge too low a price and you won't be happy taking care of the customer.