Hero's Code

Middle means mediocrity

Many service companies have challenges knowing how to price their offerings.  They tend to set their rates by looking at the both the high and low figures for their marketplace and then making a decision influenced by how they see themselves on the quality spectrum.  If they are a new business they might just rationalise that by seeking the middle ground they will be on safe territory.

There is a trap here that many fall into.  Following this recipe will tell their customers exactly how good the company really thinks it is.

Think about it. If that's how you are setting your price what you are saying to prospects is probably that you are not that great.  The high price position is actually pretty good because it says to clients - we are really good! And now all you have to do is live up to that.

The low price position is probably pretty good too providing you really can make a profit at that level.

The problem with a middle ground price is that you are saying "We aren't the best - and neither is our price - but we aren't the worst either."  Not the most compelling business position to be in.

If you price at the top end you are occupying a niche position and compete with relatively few if any competitors.  If you price to be cheapest - well there can only be one cheapest supplier and who really wants to be down there.  If you price in the middle the sad fact is you compete with just about everyone.

Unlearning what we know

Have you noticed how people and their organisations trap themselves firmly in what they know?

"This worked in the past and it will work now."
"The trend has always been upward and  I will bet this company's future that it will continue."
"Customers have been happy with this in the past - it must be what they want now."

Knowledge and experience are so appealing, especially in a changing and unpredictable world because they feel comfortable and secure.  That is why they are so dangerous.  They become habits.

But which way are you supposed to go in the strange unpredictable future?  It takes a special person to trust themselves to unlearn the habits of the past.

Salespeople can trap their prospects in knowledge too.  They might say "My job is to educate the customer on our products." 

Whilst there is always value in providing customers with information that matches their needs, too often "education" takes the form of a canned speech or a Powerpoint presentation designed by head office - exactly the type of non-learning that put us into a trance at school.

If you love to sell for a living there is probably a different edge to what you do.  Call it "confidence" or "trust" or "state management".  I like to trust myself to say whatever seems appropriate in the moment but I am never in a hurry to speak.  As your breathing matches your customers breathing remember to smile.  Say to yourself "Everything that comes to mind now is a gift to share with this person."

Resisting the impulse to speak as soon as something comes to mind gives you a curious power.  When you have something to say - pause - speak only when something to say has you.

Leading by following

People follow popular leaders like sheep

They flee from harsh leaders like frightened birds.

They crouch under the feet of cruel leaders, waiting for their own chance to bite.

With the best leaders, people say, "Just look at what we did ourselves."

Popular leaders use words like candy, offered to innocent children by a stranger.

Harsh leaders use words like a whip

Cruel leaders use them like a knife.

The best leaders say little, but are impecable with their words and allow their actions to speak.

Based on a paragraph from Thomas Behr in The Tao of Sales.

In sales - guilty until proven innocent

If we are in  sales we should seek to understand a client's needs before we seek to be understood.  For many of us this can be easier said than done.

Nothing happens until someone sells something. 

This is the slogan a friend of mine has had on his desk for the last 10 years.  A constant reminder that if you are not meeting the needs of clients in exchange for money you won't stay in business very long.   And of course we can't meet the needs of people if we can't communicate with them first of all.  This can be a challenge.

The trouble is that company buying practices tend to be dysfunctional.  And they are this way because of the perceived need to combat dysfunctional selling practices.  If you are in a sales role, the reality seems to be that you are guilty until proven innocent.  Try phoning any corporate contact of significance when they don't know you and you don't know them.

A sales manager friend expressed a view that "I often see buyers who would rather continue with  an inferior product backed by inferior service than risk trying a new vendor." 

The reason for this is that the  buyer's view of the world is that sales people  can be ignorant, arrogant and incompetent.  As a result barriers are erected.  They are saying in effect, "Don't let them near me, I can't afford to waste my time."

Maybe at some point in your life you have seen a doctor test someones' reflexes.  For example, a gentle tap to the  patellar tendon just below the knee will create a knee-jerk response if the limb is free to move. It's a cause and effect reflex.  Hit the point in a certain way and the response is inevitable and predictable.

In dysfunctional sales situations the behaviours can be just like this reflex behaviour. 

The trouble is, if we have a great product or service this is a waste of time - for both parties.

If you are a consultant or a coach, how you sell is a covert and free example of how you solve problems or bring clarity.  But if they never get to see you in action or how you can work with them in person, it's  understandable that they might never choose to buy from you.

In sales we do first need to understand and then be understood.  Trying to meet with the people who make a sales decision is a point at which we have potentially switched from inquiry to advocating a solution.  This then is not a time to be asking more questions - if you do you are likely to trigger some reflexes.

You say "Can I speak to the members of the selection committee?"
They say "No"
You say "Well, can I speak to the Managing Director then?"
They say "No"

The client might ask us to spend considerable amounts of time and money on developing and presenting a solution.  It's reasonable to assume that the effort we put in is valuable to them.  If not, why are we bothering?  All we really want then is a value exchange.

We will be happy to put in the time to develop a solution, without a guarantee of winning the business, as long as we have access to the information we need to make our suggestions relevant and meaningful. 

Why not say, "Ms Buyer, our goal is to get you a solution which is a perfect fit for your needs.  Before we can make an intelligent proposal I need to have information and perhaps access to people who are stakeholders  for these needs. Now you know the organisation better than I do.  How can I make this happen?"

In the complex world we live in, organisations face constant change and dysfunctional buying and selling seem to be barriers for both  parties.  An antidote more and more of us use is to develop our networks and personal profiles - by giving of ourselves  and being of service to develop relationships based on trust .  One of the things that we are learning is that networks and relationships penetrate any organisation.

Let me be honest with you!

Whenever someone says, "Let me be honest with you" there is a presupposition there.  You might be inclined to think, "Oh dear, they have been lying to me up until now."

Now I know that this expression is often heard and in common use - and you might argue that I'm reading too much into these few words, yet the truth is that when it comes to communication, the words used are just the tip of the communication iceberg.

It has been said that our words form only 7 percent of the complex messages we send each other.

One of the useful lies that is often given in communication courses comes from the work of Albert Mehrabian conducted between the 1960's and 1980s.

He described a much quoted statistic about effective communication. What he did was research the relative effectiveness of 1) the words that are spoken 2) the way the words are said (tone, volume, pitch, pace and 3) the way the words are conveyed through body position, gesture and facial expression. If we were to put a relative percentage on these three elements it is that 7% of the meaning is in the words that are spoken. Some 38% of meaning is paralinguistic and 55% of the meaning is in the facial expression and body posture used.

The real message here is that the impact of communication is much deeper than the particular words that are used.

At some  deep level I want you to understand that clients will know if you treat them with honesty or if you are out to manipulate then.  The feeling that they have may not take conscious form but it will definitely impact upon the relationship.

I read this exercise in the book The Tao of Sales by Thomas Behr.
Imagine the next time you negotiate that there are actually two negotiations going on.  The "outer" negotiation is a verbal one - the domain of demands and offers.  The "inner" negotiation is emotional and all about the balancing of self-respect between the parties.

If we insist on beating the other person, we are attacking their power and sense of self-esteem.  This will create instinctive resistance - sabotaging what could have been a good agreement.

Practice letting them win the inner negotiation of trust and self-esteem so you can make progress on the outer deal itself.  The Tao of Sales describes this as like playing chess on two stacked transparent boards in which the goal is to win the game on both boards: but vertically not horizontally.