Posts Tagged ‘economy’

No one wants to be in a situation where they have to raise revenue quickly, but sometimes  that’s just a reality that decision makers have to deal with.  When a past client who does business in a service industry was facing a cash crunch due to price increases from two major vendors, the only solution he could come up with in two month’s time was to push his sales people to sell more contracts. After we spoke a bit longer, he admitted that he’d done the math and that in the back of his mind, he had serious doubts about the sales team’s ability to bring in the targeted funds in the time frame that he needed.

I suggested that he try instituting a nominal price increase to all his clients. He was concerned, stating that he had a client base of 4000 contract holders, and to make such a move would mean that he would have to have reps visit each client to rewrite their contracts, plus, he feared their negative reaction. But that was his assumption, not his challenge or solution.

We took a closer look at the client base and came up with a solution that would assuage his concerns, bring in the revenue quickly, and address any clients who might call to complain. He sent via regular mail and email a notice to clients that they would see a slight price increase on their next billing cycle. For clients who had small contracts of say $40, the price would move to $42. For clients of $400, the price would increase to $420 and so on.

Still worried that he’d have an onslaught of calls, he manned up anyway and braced for the worst. And then….nothing happened. A few dozen customers called and they made what ever arrangements necessary for the new amounts to be remitted. In the end. the client pulled in tens of thousands of dollars of additional revenue per month without much work.

I credit the success of this business owner’s across-the-board price increases to the tactics which included: a pricing model that would cause the customer to say to themselves “who cares,” a well written letter and email campaign, staffing for the ‘just-in-case complaints,’ the right name for the increase, and an accounting system that had no flaws in posting the increase.

There’s always a solution to every challenge. You just have to be willing to open your mind to new ideas and to swirl those ideas around ‘cyclonically’ until you find the best solutions to your challenges.

I know someone who spent a good deal of his summer lounging by a pool, vacationing with friends, and overall just kicking back and enjoying life.  Oh yeah, he was a manager, too.  How did he have time to manage his employees and amass so much leisure time, too, you may ask.  He didn’t.  He chose hanging out over working hard, but he had a good reason.

As he explained to his superior, a regional manager for the firm, the “economy” was bad in the area.  He was even generous enough with his time to take the regional manager, who was unfamiliar with the ins and outs of this particular city, on a joy ride through its worst slum…boarded up windows and gang-sign graffiti offered “proof” that the man with a tan couldn’t be blamed for his office’s poor sales.

The vast majority of the beautiful city was running quite smoothly, but the regional manager didn’t get that tour.  He was shuffled straight to the airport before he got a sniff of the truth that his local subordinate opted to darken his tan rather than increase his office’s sales.

Yes, I realize the economy has hit most of us in one way or another.  Some of us have gotten pummeled worse than others, too.  And while sales have taken a hit in many industries, I hope that you’re able to separate reality from perception.

Be careful not to discount your ability to perform on the job because the economy is suffering. There have always been and will always be those who bend with the times and create opportunity.

Also, be fair with yourself. The same assets you brought to your job are those that can help you now.  Don’t forget that you have those strengths and you might just need to change your perception of reality to begin to utilize those strengths today.

Companies like ebay and Amazon.com have to adjust to the economy and the current market conditions to continue to realize healthy profits; and adjust is what they do.  So where are you adjusting what you do to continue to thrive in today’s business environment?

It’s not just about persistence it’s about changing tactics to bring in new business.

On the program Hell’s Kitchen, the restaurant undergoing a business makeover gave away food as a way to announce the reopening of the restaurant. Their marketing tactic was successful, and the next day the restaurant was full.

If you suspect that the economy has become your crutch, toss it aside and take responsibility to walk on your own two feet again.  Adjust strategy and tactics, get creative with marketing and sales, and find ways to revive assets that have been nearly dormant since the downturn started.

Someone’s always doing well…it might as well be you.

A business woman I met named Tiffany told me that her business is doing well despite the economy due to both location and product offering.  The only problem Tiffany has is that  her marketing manager hasn’t for years performed up to expectation.

At one point, Tiffany started looking for a replacement over a year ago when the economy was bustling.  However, she found that hiring some one with the talent she wanted would mean paying anywhere from $80,000 to $120,000 more than she could afford.

Now that the economy has changed, her marketing manager stands out like a sore thumb and Tiffany’s patience has run thin.  Her challenge is how does she make the change without spooking the employee or even others within her organization?

Here’s an approach you might use.

Set up a phone line directly to your home or to a separate cell phone number where you can receive calls without anyone in the organization knowing what you’re doing.  Then set up an email account that’s not connected with the company.  This could be a gmail, yahoo, or earthlink account. Then start marketing in online sites. In 2009, you can expect people of high caliber to be searching all sources for a job.

*You also could act like a head hunter and call someone at a competitor since you really don’t know what’s going on in their business and they might be falling on tough times.

In the ad, forward all information to these private contact points so you have a buffer where you can review resume’s or screen calls without announcing it to your staff.  Once the desired talent is found, do a simple phone interview to start to weed out those marketing more than they really possess and schedule an introductory phone interview.  I always love phone interviews as a start, because you’re less limited by looks and can focus first on qualifications.

Next set up a meeting at a restaurant to  discuss what you’re offering.  The distance allows you to see how the individual works in an open setting.  I personally hate when people don’t say please or thank you to restaurant staff. The way one treats their waiter is often a great indicator of how they’ll treat subordinate staff within your organization.  If they’re not respectful during your restaurant meeting,  take their actions seriously into consideration.

Then finally, when you’ve closed in on your decision to hire, you can introduce the prospective employee to your organization.

This is not unlike how a head hunter might work.  They check out prospects, notify someone discretely, arrange a private meeting, and then announce the recruit.

The upside for people who want to hire new talent during this economy is that there are smart, talented people out there who have been displaced and need work.  They’re more willing to work for a reduced pay just to get the paycheck.  Now’s the time to swap out your non produces in this hirers’ market.