How To Research Your Competition

No matter what type of business you are in, sooner or later, there is going to be competition. Most will not be a problem to you but some can be formidable. Once again, living and working is a small town gives you a certain advantage over your competition.

If the competitor is a new business, it's hard for them to do the preliminary studies for starting the business without someone hearing about it and carrying the message to you.
If it's an established competitor, they too will have trouble rolling out a new campaign without your knowing it's coming.

You probably think you know your competitors. In most cases you only know the obvious ones. First, let's look at the two ways to identify competitors.

• Price contenders - These are the people who go after the consumer dollar. Generally low price is their key message. They are always going to get a certain segment of your customers base...the price shopper.
  
• Strategy contenders - This is a much stronger group. They make a case for doing business with them by the advertising and marketing strategies they use. These are much stronger competitors than the price contenders.
  

First of all, resign yourself to the fact that your competitors are going to get wind of what ever plans you have. They are going to adjust their future plans in proportion to how strong your plan is and what kind of threat you are to their business. Here are my suggestions for keeping them in the dark.


Concentrate your testing internally with employees and customers. Ask your best customers to fill out questionnaires regarding their perceptions of your competition. You don't need to mention your competitor’s names in the questionnaire but generically describe their services and procedures and get your customers reaction.
Evaluate the questionnaires and see if the competition is advertising where the target market says they are looking. If they aren't advertising there... why not? Have you missed something or are they just spending their ad dollars in the wrong place?

Next, try UN-ADVERTISED testing within your business. If you must test something, do it in-house so you are there to control any unforeseen negatives that might arise.
Most businesses rely on outside sources. Suppliers, distributors, salespeople, accountants, attorneys and customers. These people are a great source of information on your competitors. Let them talk about what they are doing. Sometimes they will let information slip about a competitors' plans or purchases.

Source: http://www.smalltownmarketing.com/competition.html

Avoiding Credit Card Fraud

The following tips may help you safeguard your business against credit card fraud:

Always ask for identification. You may ask for identification anytime you are presented with a credit card. Many cardholders even write "Ask for ID" on their cards to prevent unauthorized use. Most credit cards clearly state that they are not valid unless signed. Point this out to any shopper who has an unsigned card and say to the customer, "May I check your ID to verify your signature?" Address the customer by the name embossed on the credit card. If he or she does not respond, you should definitely ask for identification.

Learn to recognize a credit card's built-in security features. All credit and debit cards have distinctive characteristics that help protect consumers and merchants from forgeries. Each time a customer offers a card for payment, look for the following security features:
A hologram that changes color in the light.
A signature panel that resists erasure and protects the cardholder's signature.
A magnetic stripe that transmits specially coded information.
An embossed account number on the front of the card that matches the number printed on the back.
If you receive a credit card that seems suspicious, request a transaction authorization over the telephone by calling the code 10 (or "call for assistance") hotline number supplied by your payment service provider.

Utilize the Address Verification Service (AVS). Internet retailers, mail order/phone order merchants and other business owners who process card-not-present transactions should always use the AVS before they ship merchandise to customers. The service confirms numerical address information with card-issuing banks, and it returns codes that tell merchants whether the figures match.

Source: http://www.entrepreneur.com/article/0,4621,302952,00.html

Why Small Businesses Need a Brand Identity System

Experts urge small business owners to "brand" their business—to develop a logo and a set of consistent marketing materials. But, they rarely go into the reasons behind this advice. Here's a list of some of the benefits to having a professionally designed logo and marketing package:

To attract more clients: An eye-catching, professional logo and brand will draw more clients to you, because they'll be more likely to notice you! Some clients look for a well-defined company look-and-feel as part of their qualifiers for making a purchasing decision.

To brand yourself: If you're a consultant or an entrepreneur, you need a logo in order to build an image and a brand that's bigger than just yourself.


To convey that you are established: A logo and professionally printed materials show that you are committed to both your business and to your clients.

To give clients a sense of stability: You may not have been in business "Since 1908", but if you've invested in an identity, your customers will think that you're much less likely to fold. It goes a long way toward building the all-important "trust" factor.


To look larger: Home-printed business cards with perforated edges, or cards printed with standard designs available through Microsoft software or online business card vendors (like Vistaprint) scream, "Small-time vendor!" to your potential clients—and you'll be similarly compensated.

To be more memorable: Forty percent of people better remember what they see better than what they hear or read. So having graphics associated with your business and having consistent graphics on your business materials make you more likely to come to the forefront of potential clients' minds when they have a need for your goods or services.

To increase your credibility: A professional look and feel makes you look more professional, and potential clients will assume that you're knowledgeable.

Source: http://www.work911.com/cgi-bin/links/jump.cgi?ID=5168

5 ways to generate leads with your website

Convenience – Allowing your customers to make decisions at their convenience is a very powerful element. Nobody wants to feel pressured or hurried into making a buying decision. When a customer can go to your website, browse your products and services, and make a purchase at their convenience, you are satisfying a crucial consumer obstacle -- time. They don’t have to keep returning to your storefront every time they wish to evaluate your value. In fact, most customers do not buy something the first time they see it. Instead, they must see and consider it several times before they finally talk themselves into purchasing. A website allows customers to quickly review their reasons to purchase something, leading to a greater number of impulse buys.

Information – A website can allow you to communicate much more information about a product or service than an in-store display or advertisement. You can also control the way the information is presented. Supplying information in an orderly step-by-step process can greatly improve the chance of a purchase.

Evaluation – Many customers will not purchase something without searching for the best value. The internet allows your customers to obtain the information they need to feel like they are making an educated buying decision. Make sure you are using your website to take advantage of this opportunity. Inform your customer why your product or service is of the best value compared to their other options. Always acknowledge the competition instead of acting like your product or service is the only one out there.

Guidance – The pages of your website should guide the customer towards the specific solutions they are looking for. They should serve to help them quickly locate what they came to find. Think of it as a store map located at the entrance of a department store. The customer can use this directly upon entering the store to get to the department they are interested in, instead of wandering around looking for it. Get their relevant information in front of them quickly while they are still the mood to purchase. People buy on impulse. If they have to spend 15 minutes searching for what they are looking for, that impulse may very well fade away.

Contact – The internet also allows for another form of contact with your customer. Some people can be hesitant about talking to a representative in person or on the phone if they don’t feel very knowledgeable about the product or service. Email allows them to carefully collect their thoughts before sending them. They feel less awkward about their lack of knowledge. Again, use this opportunity to gain an edge over the competition. Go out of your way to educate them about the product or service.

Entertainment – Use the informal atmosphere of the internet to entertain your customer. The internet is used by more people as a means of entertainment than as a means of business. If used effectively, entertainment can significantly improve the business relationship. Provide clever facts, amusing presentations or even a witty character or mascot to assist them. However, be sure that the entertainment is used appropriately. Be sure that is does not obstruct the information or value you are trying to bestow upon them.

Always use your competition to your advantage. Research how your competition uses these characteristics to improve their customer relations. Your website does not have to be boring just because it is informative. Create an appeal that will set you above the competition. The internet can be an extremely powerful tool for your business, reaching a greater audience than ever before. A successful business uses a complete arsenal to reach its market.

Source: http://www.smallbizarticles.com

How To Sell A Service Instead Of A Product

The two types of products most often sold are tangible and intangible. Tangible products are products that we can touch, taste or see. Intangible products are products the customer can't touch taste or see. We are here to talk about the latter group...the intangible products that are usually sold as a service.

People buy based on emotion not by logic. They would like to have you believe that they sit down and logically compare a product's features and make a logical decision.
What actually happens is they make an emotional decision and create a logical argument to justify the buying decision.

Before you can sell or present your service to a customer you must have an understanding of the selling process. You need to understand the process of why customers buy the things they do.Customers buy your service because they expect one of the six benefits explained in "Why Customers Buy." If one of more of those benefits are there most likely you will have a sale. If you don't you will probably lose the sale.

But there is an even more important aspect of the selling process. And that is....getting the customer to contact you in the first place. Service businesses have an additional burden and that is they not only have to somehow sell a service that the customer can't see, taste or feel.......But they must also convince the customer that they can perform the service to the customers satisfaction better than other similar services.

Source: http://www.smalltownmarketing.com/sellservice.html

Types of Cold Calls

Before we discuss how to make your calls successful, let's explore the different types of cold calls.
Several years ago I worked for Victor Business Machines. One of the largest makers of adding machines and calculators. This was, of course, long before a $5.00 calculator was available at every check-out counter. They had a very simple sales procedure.
Every Monday I made seventy-five, door-to-door cold calls on local businesses. I had a canned paragraph that I memorized and recited to every business owner regardless of the type of business. It went something like this:

"Hi, my name is Tom Egelhoff with Victor Business Machines. We carry a complete line of adding machines and calculators for all your number processing needs.
However, the only way to determine if our products will be of help to you is to try one on your own figure work. I will be placing 20 machines in your area in the next week.
Would Tuesday morning or Thursday afternoon be the best time to deliver a machine for you to try?"
Do your homework - Research the companies
Can the companies you are considering even use your products or services? You need to know before you waste your time and theirs calling on them. If they are valid customers then put them on your list. If not, move on.
Here are some suggestions for researching companies;
Do they have a website? Check out their site and look for any weaknesses that might make them vulnerable to their competitors. Don't stop there. Also check the web sites of their customers and competitors. Remember, they are trying to beat the competition just like you are. Find a way to help them do it and they will meet you at your office.
The Internet - You aren't done on the net...yet. - Do searches of on-line newspapers/e-zines for articles on their industry and products. If they are a public company to to investment sites and get the latest advice about company plans, new products and expansion plans.


Source: http://www.smalltownmarketing.com/coldcalls.html

How To Advertise And Market A Service, Rather Than A Product

Although the rules of marketing apply pretty equally to most products, the advertising and marketing of a service has a few differences. The biggest difference is that there is no product for the customer to touch, smell or see.A service is whatever the customer perceives it to be.The owner of a service company may see the finished product in an entirely different light than the customer.For example, a carpet cleaner knows certain fabrics and colors may not clean as well as others. Heavy traffic may have worn the carpet. Cleaning will not make wear disappear.

The customer may not understand these things. The customer may unrealistically expect the carpet to be exactly like new. The owner of a service company has a much tougher selling job than the person with a product. He may have to offer to clean a portion of the carpet at no charge to convince the customer of the quality of the finished job.
Most service businesses live on word-of-mouth advertising, and referrals. Satisfied customers who will be happy to write testimonials of your service and quality of work. If possible use these testimonials in all your advertising.

Put them in your brochures, radio, TV, flyers, newspapers and yellow pages. Some of your advertising efforts will not have space for all your testimonials but, a one line quote takes up very little room. Pick a good one and use it often in your ads.
Your workers are part of your package. Most car dealership mechanics wear company uniforms. They may be covered with grease but they look more professional than the guy working out of a garage somewhere.

Again the cost of shirts can be a small price to pay for a superior image in the eyes of the customer. Very few customers think, "Gee, they're in uniforms, they must be expensive." Most customers think, "Gee, they sure look like they know what they're doing."
Instead of just a brochure consider using an information package. This package consists of: business card, several testimonials on company letterheads if possible, any articles from newspapers, magazines or newsletters about your company. Studies that educate the customer about your industry or about the type of job you are going to do for them.

A listing of customers who have given permission to be called for a reference. Pay attention to the quality of your advertising materials. That's right, business cards are an advertising expense. So are letterheads and envelopes. A good business card will make you look as big as your biggest competitor. Is this expensive? Lets look at some of the costs.
A double sided, four color brochure will cost around .60¢ each for printing in quantities of 1,000.00. Go to 5,000 and it's even less. For the savings by going to a two color brochure you can make a lot of information packages. Be selective in who you give them to.

Make sure they are a qualified customer who has the resources to use your service. Full color business cards are around $150.00 per 1,000 or .15¢ each. That may sound expensive when compared to specials at $15.00 per 1,000, but the impression a good business card makes is priceless. Don't skimp in this area.
How do you get jobs? Do people call your office. If so, do you have someone with personality answering the phone... with a smile in their voice? If I am hiring someone to deal directly with customers I could care less about their knowledge of the business or their experience. I can teach them all that.

What I can't teach is how to be a genuinely friendly, kind, considerate person to my customers. They bring that trait with them. I can demand they be friendly and give good customer service but if they aren't that type of person I won't get it.Some people are good with machinery, others are good with numbers and some are good with people. Those are the ones you want dealing with your customers

Source: http://www.smalltownmarketing.com/service.html

Why Do Your Customers Complain?

Let us find out about some of the operational issues within your business which could give your customers cause to complain. Take a look at these and examine each part of your business. How do you stand up?

“You didn’t do what you promised.”
When did you last review your advertising material or web site? Do they contain service promises which sounded great at the time but have since been forgotten? For example, do you promise to deliver within 24 hours but changes in processes have met that is no longer possible? No one may have complained yet but sooner or later someone will.

“Your product didn’t do what it’s supposed to do.”
When did you last undertake a quality check of your product? Random checks can help weed out poor quality workmanship before a customer spots it. When buying your stock or finished item do you test it?

‘You’re never open when I need you.”
9 to 5, 5 days a week may have been acceptable when you first started out, but is this still what the customer wants? Check with your customers – they may want to open later and close later.

“It’s a long time before someone answers the phone.”
Hanging on the phone while it rings and rings is very irritating. It conjures up images of staff sitting there drinking coffee and chatting; not the impression you want to portray and not the way to put customers in a buying mood! Do your staff understand the importance of the phone being answered promptly?


Source: http://www.smallbusinesssuccess.biz

AIDA

AIDA is the original sales training acronym, from the late 1950's, when selling was first treated as a professional discipline, and sales training began. AIDA is even more relevant today. If you remember just one sales or selling model, remember AIDA. Often called the 'Hierarchy of Effects', AIDA describes the basic process by which people become motivated to act on external stimulus, including the way that successful selling happens and sales are made.

A - Attention
I - Interest
D - Desire
A - Action

The AIDA process also applies to any advertising or communication that aims to generate a response, and it provides a reliable template for the design of all sorts of marketing material.

Simply, when we buy something we buy according to the AIDA process. So when we sell something we must sell go through the AIDA stages. Something first gets our attention; if it's relevant to us we are interested to learn or hear more about it. If the product or service then appears to closely match our needs and/or aspirations, and resources, particularly if it is special, unique, or rare, we begin to desire it. If we are prompted or stimulated to overcome our natural caution we may then become motivated or susceptible to taking action to buy.

Source: http://www.businessballs.com

The Pros and Cons of Network Marketing

Multilevel or network marketing is a fast-growing alternative to traditional retailing, in which products are sold through a chain of distributors. You will make your money by selling products and by recruiting new distributors. Each person makes money on the sales of the people in his or her “down line”, thus it's to a distributor's advantage to sign up as many people as possible.

The network marketing concept isn't bad. In fact, many well known companies use this form of marketing. Unfortunately, dishonest businesspeople often use the concept to scam people by closing down a company suddenly and taking distributors' money with them. Another common problem is that some network marketing companies make unrealistic promises about earning potential.

Successful network marketers put a lot of time and money into their businesses. And they can sell. So you'll need to have some sales ability and believe in the product. Have a sales strategy in place before you join. Check out the amount of training and back-up you'll be given. In addition, be sure the company's main focus is on selling its products rather than on making money by having people join up.

Source: http://www.life.ca/hb/mlm.html

Finding More Business

Every business needs more business. That's an accepted fact. The unaccepted fact is that most businesses don't use all the opportunities available that will bring them additional business. When one looks for additional business, the primary goal should center around getting "second sales. Very few firms make a profit on first time sales. The costs associated with getting a first-time sale are far higher than the costs associated with making a second sale. Hence, second sales are profitable because the costs of getting the customer in the door and to buy are eliminated.

REPEATS are the goal for any business gaining "customer loyalty." While it is often spoken of, it often is not pursued.
The opportunity to create add-ons and repeat sales is often overlooked. The opportunity everyone should be aware of is ways to sell new ideas, services and/or products to old customers; sell old ideas, services and/or products to new customers; and sell old ideas, services and/or products to old customers.
Repeat customers can be an indication that, in these customers" minds, the firm sells good quality and value, and gives good service. This, then, very often leads to referrals.

REFERRALS are profitable because the person doing the referral offsets the need to spend marketing dollars to get the customer in the door and to buy.

PROSPECTS: Prospecting for customers has kept the advertising business healthy for years. It has been their key to vendors' pocketbooks because it takes repeated use of the media to move prospects to researched leads and researched leads to current users.


Source: http://www.woopidoo.com/

8 Key Questions to Ask in Every Sales Situation - Mark Smock

Solving people’s and organization’s problems is ultimately what business is all about. Effective selling involves defining your existing or potential customer’s problems. If properly “sold”, a sales prospect will have his problems solved with your company’s products or services. To be successful at selling, you must systematically approach customers with a proven repertoire of qualifying questions that allows you to clearly understand your customer’s current business challenges.
In order to most effectively solve your customer’s problems you have to ask questions, the “right” questions and most importantly, listen to the answers you get. The best source of information about a sales prospect’s business problem is the prospect themselves. However, any seasoned salesperson will tell you that the customer does not always know what their problem is, how it happened or how to deal with it. Without a proven list of problem definition questions, a salesperson has little chance of achieving sales success.In every selling situation, there are eight fundamental questions that must be answered to ultimately generate a purchase commitment, a solution to your customer’s problems:

Are they giving you symptoms of a problem or the problem itself?
Is this a temporary situation or an ongoing challenge?
Short and long term ramifications should be explored
This answer could be your “door opener” later!
Actions taken and money spent should be quantified here Here you can determine what it cost them NOT to have your company’s products If there aren’t, why not and will there be? If not, good luck! You must clearly understand who the decision makers are and how the commitment decision is to be made. If you do not, there will always be “someone else” who will kill your deal within the organization!

Once you have valid answers to all these questions you can accurately determine whether the products or services your company has to offer can cost effectively solve your customer’s problems. If your products or services can solve your customer’s problem you now have something to talk about!

When you know your product or service can solve your customer’s problem cost effectively, and it is clear they understand and sincerely appreciate the value of your product or service offerings to a level of justification that they can, and will, make a reasonable purchase commitment to you, you have AN OBLIGATION, not only to your company, but to your customer, to ask them to buy what your are selling! A simple way to do this is to ask: “What do you want to do next?” … say nothing more until they respond.

Source: http://www.woopidoo.com/articles/ms2-sales.htm

Planning your ecommerce website

More and more small businesses are looking to ecommerce as a way to expand their business. If you are one of them you need to do a little homework before you start investing your money. You don’t want to be in the unenviable position of having all of your money invested in a loosing proposition. Following these basic guidelines will help you avoid that pitfall.

Know the market: The chance of you being successful on the web is far greater if you can successfully compete with the other sites you find on the web. If your inventory is smaller, your prices higher, your site less professional, your marketing budget smaller… your chances of success are far less.
Full featured shopping cart: The shopping cart is second in importance only to your site navigation. A full featured shopping cart will allow the shopper to add, update and delete products and will maintain that list of products if they should leave the site for any reason and return later. At a minimum the cart should allow for multiple billing and shipping addresses that are maintained even after the customer leaves the site. The cart should also show exactly what the person is buying, what the shipping costs will be, any sales tax and the exact amount that will be charged to their credit card. The cart should also include a detailed receipt with complete order information that can easily be printed without loosing any information.

Source: http://www.letmeshop.com/

CREDIT CARD FRAUD

Avoiding Credit and Charge Card Fraud
Credit cards have fast become a popular means of doing transactions in place of hard cash. Its usage has also given the notorious community an opportunity to nourish their insatiable lust for money. While theft is the most obvious form of fraud, it can occur in other ways. For example, your credit card number maybe accessed by someone without your knowledge. Credit card fraud costs card holders and issuers hundreds of millions of dollars each year.It's difficult to prevent credit or charge card fraud from happening. But steps can be taken to ensure that it becomes more difficult for a crook to capture your card or card numbers and minimize the possibility.

Guarding Against Fraud
Here are some tips to help protect you from credit and charge card fraud.
• Put your signature in ink on the card as soon as it arrives.
• Carry your cards separately from your wallet.
• Maintain a record of your account numbers, their expiration dates, and the phone
number and address of each company in a secure place.
•Keep an eye on your card during the transaction, and get it back as quickly as possible.
•Notify card companies in advance of a change in address.
•Carry only one or two cards so if you lose them or are robbed, you have fewer to report missing.
•Write down the toll free numbers for reporting your credit cards lost or stolen and keep
the number at home, in your purse or wallet and at your office so that you will be
prepared to call immediately if you have to.
•Do not leave your purse or wallet unattended in public.
•Make sure to check that you get your card back after you make a purchase.
•Never lend your card to anyone.
•Keep track of when new and reissued cards are to arrive, and call the credit card issuer if
they don't come on time.
•Destroy all credit card receipts. Keep your billing statements in a safe place.
•Cut the card in several pieces before you send the card back to the issuer to close your
account.
•When you use your credit card online, make sure you are using a secure web site. Look
for a small key or lock symbol at the bottom left of your browser's window.
•Never give your card number to strangers or telemarketers who call you on the phone.

Reporting Losses and Fraud
Loss of your credit card needs to be registered in the earliest with the issuer(s). Many companies have toll-free numbers and 24-hour service to deal with such emergencies. According to law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.
If you suspect fraud, you may be asked to sign a statement under oath that you did not make the purchase(s) in question.

source: http://www.consumer-action.org

Debit cards

An alternative payment option to credit card could be debit cards. Debit cards are one of the fastest-growing forms of e-payment. They are promoted as safer than cash and more convenient than paper checks. The following paragraphs will take a view on this topic.

Two types of debit card transactions occur:
online and offline.
Online debit transactions require consumers to submit their personal identification numbers (PINs) at the point of sale. In brick-and-mortar stores, customers initiate online debit payments by swiping their ATM cards through magnetic card readers and then entering their secret codes into terminal peripherals called PIN pads. These transactions are processed in real time through nationwide ATM networks. Funds in customers' accounts are captured immediately and transferred into merchants' accounts in two to three business days. Merchants typically pay discount and transaction fees based on rates set by the ATM networks.

Unlike online debit transactions, offline debit payments do not involve PINs. Offline debit cards--aka check cards--are typically issued by large credit card companies through their participating banks. Consumers today make the majority of their offline debit purchases with the Visa Check Card or MasterCard's MasterMoney card. These enhanced ATM cards carry the Visa and MasterCard logos, respectively, and may be used everywhere the credit cards are accepted, including over the Internet.

Debit card is an attractive alternative to credit card and one should consider whether this payment method is the best for business.