Making money as an employee or leader or owner in the business world has a lot of similarity to financial investments that make money.
Two of those parallels are you must risk money to make money and you need a plan you stick with for the long-term.
For those charged with “Revenue Generation” as a goal you better have a plan you stick with. Today the world is so transparent, and everything is visible. People or organizations who have no plan or a new plan every month are not seen as a trusted partner.
The need to risk to achieve predictable growth of sales and profits is today’s focus. The following are four “Fears” that because they are seen as risky freeze too many leaders out of success and sometimes survival.
With understanding and knowledge Fear is recognized and intentionally overcome – even if it is still hard – at least you are on your way to success.
Change is risky – Our culture has taught everyone to get good at something, put your head down, and keep doing it over and over again. Don’t get distracted, don’t take your eye off the ball, and don’t fix something that isn’t broken.
As the twenty-first century rolls out these don’t sound as true as they once did. Where did Toys R Us go? What happened to Blockbuster, Pontiac Motors, Bell South, and Sun Microsystems. They all kept doing exactly what they were doing up to the point there were gone.
While many are afraid of change from the known to something unknown the one sure thing is sticking with status quo will end badly. Force yourself to fear the real risk – NOT CHANGING.
Who am I to tell my customer’s what they are doing is wrong – “The customer is always right” or NOT! When the customer says “can you do it this way” or “I would rather see it packaged different” or “we can’t consider a change this year” most of us stop talking and start to create an offer that gets in line with what the customer said they want.
The problem is often the customer never wanted it (even if they didn’t know they didn’t want it), they just wanted to see if you believed what you told them. If you don’t push back and review the value from your thought leadership, the buyer can only assume you were just going for a price increase like everyone else in your space.
Often buyers push you to see if you have integrity. If you change without a new scope of work the buyer believes you just want to get in their pocket as deeply as possible and must be challenged since you proved to be a selfish vendor.
On the flip side when you truly have value-adding thought leadership, you know how to make your ideal customers, in the niches you dominate more money, so you don’t compromise value just to deliver at a lower price to just win a deal. You are so committed to your buyer’s success you stand firm and teach them to make a better decision. All of the time you don’t change prices just because they ask and most of the time the value you bring the buyer is why the value the buyer pays you is greater than what they pay your competitors.
I must do the tradeshow and spend the ad money, or no one will know I am here – we have always done these shows and placed these ads. If we don’t do these traditional things our customers will believe we are in trouble or out of business.
Tradeshows, advertisements, gifts at Christmas, automatic discounts and box seats to sports are left over from past days of near monopolies, high margins, bubble-driven markets with purchasing practices long since gone.
Today, buyers demand you help them make more money, reduce risk and be more competitive. Every business needs to change practices and to add value to partners in the global, technology-driven, value starved market.
The old practices don’t add value, they drain the seller’s resources and damage the sellers brand. The new practices require new offers to the market, new skills and new process that will change continuously. To your buyers, you are leading change and providing valued added leadership or are stuck in the past with low-value products and business thinking. You get to decide what your ideal buyers see and experience.
I can’t charge more than my competitors – Old rules believe price trumps everything and without a low price offer the game is over.
Revenue Science™ tells us price and availability may drive the purchase of pure commodities where the buyer’s only value comes from getting the product exactly when they need it and at the low or nearly low price.
The pure commodity is about 15% of the products and services in the market. The other 85% wants elements of value right up to the point where only value is considered.
Buyers have this fear “that only low-price matters” to get use of this human fear to help the buyer negotiate. If you are in a pure commodity market you know it. You know you add no value and spend all your time on driving out cost and driving down price and contemplating bankruptcy. If that is not you (probably not you) get clear about the value you are adding and make sure the buyer understands the value, is compelled by it and has a roadmap to get that value.
These are just four of the most common places that fear holds business back and puts them at risk. Make sure you keep up with Revenue Science™, apply that knowledge to overcome the fears and turn those situations into opportunities because the other sellers on the field are still frozen by fear.
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