Selling someone else’s products

Have you ever thought about selling someone else’s products? When you sell someone else’s products,  parts of that vendor’s business obviously become a part of yours: their products and services. However, the reality is a good bit more complicated.

Be sure what business you’re in

When you consider selling someone else’s products, it’s critical to assess whether the product is germane to what you do.

For example, it isn’t hard to find stores selling fidget spinners. They’re an impulse buy that could add a small bump to daily sales, so grocery stores, convenience stores and the like could justify selling them back when they were hot.

However, it makes little sense to see these gadgets advertised on outdoor signage at pawn shops and musical instrument stores – which I’ve seen lately. The logic behind advertising out-of-context impulse items on a specialty retail store’s limited outdoor signage escapes me – particularly on high traffic streets.

Will it confuse their market? Will they lose their focus by selling a few $2.99 items? Doubtful. While they’re trying something to increase revenue, the emphasis on an out-of-context, low-priced impulse buy product is the reason I bring it up. It makes no sense for a specialty retailer.

When you start selling someone else’s product, there are questions you don’t want your clients and prospects asking. They include “Have their lost their focus?” and “What business is my vendor really in?”  These questions can make your clientele wonder if another vendor would serve them better.

Should you sell out of market?

I had this “Is it in context?” discussion with some software business owners this week.

One of the owners (not the tool vendor) is asking the group to sell the development tools they use to their customers & other markets. Ordinarily, this would be a head scratcher, since most software development tools generate their own momentum, and/or are marketed and sold with a reasonable amount of expertise. That isn’t the case with this tool vendor.

However, the discussion really isn’t about that tool vendor, even though they’re at the center of the discussion being had by these business owners. The important thing for you is the “Should we sell this product?” analysis.

Start the conversation by bluntly asking yourself if makes sense for your business to sell this product.

Adjacent space or different planet?

If your company sells to businesses that develop software internally or for sale to others, then you might consider selling a vendor’s software development tools to your customers. It might make sense if you sell into enterprise IT.

However, if you sell software to family-owned, local businesses like auto parts stores and bakeries, it makes no sense at all. You’re going to appear to be from another planet going to these customers to sell software development tools.

If you try to sell these tools in an unfamiliar market, then you’re starting fresh in a market your team probably isn’t used to selling and marketing into. The chance of losing focus is significant unless you’re leading your current market by a sizable margin and have plenty of extra resources.

Ideally, a new product line feels congruent to your team, clients and prospects. Even when it’s a good match, the work’s barely started as selling and supporting a ready-to-sell product requires a pile of prep work.

Your sales team needs training to sell the product and know how/when to integrate it into multi-product solutions. You need to include the product in your marketing and training mix. Your support team needs training to provide the level of support that your customers expect. Your infrastructure team needs to incorporate it into your CRM, accounting, website, and service management systems. Your deployment team may need training as well.

What if the new product’s vendor has problems?

Reputation damage is one of the biggest risks when selling someone else’s products, particularly if you have to depend on the other company to service and interact with your customers.

Does the product vendor provide support as good as yours? Do they communicate in a timely & appropriate manner? Do they service things promptly? Are they a good citizen in the developer community? These things are important in the software tools market. In your market, they may not matter.

The actions of the product’s creator reflect on you, since YOU sold the product to YOUR client. Carefully consider the risk/reward. Your entire clientele will be watching.

The premium price lesson taught by craft beer

The craft beer explosion in the US over the last 5 to 10 years is a great lesson in premium price / premium product / premium services and customer ascension.

So what is the big lesson to learn from craft beer? Is it that you could make beer that only a certain percentage of the market will drink? Is it that you can put anything from talcum powder to motor oil in your wort as an ingredient and someone out there will want to drink it? Is it that you can charge for one pint what previously would have been a tolerable price for a six-pack?

But I don’t WANT an $80 diaper!

Those answers are all accurate at some level.

However, the biggest lesson is that in any market (including yours), there is a percentage of the market that’s willing to pay a premium price for a premium product. Products and services have had “Good, Better, Best” for years. Despite that, there are still many businesses out there that only offer a single product line with very little variation or options, premium services, or the opportunity to “ascend” to the next tier of product buyer.

These opportunities are not limited to automobiles, cigars, locally brewed beers, or any other thing. You can buy cheap toilet paper and you can buy fancy toilet paper. Speaking of, there are companies making a living selling diapers that cost $80 each.

While I don’t want to buy an $80 diaper, it’s clear that some portion of the diaper buying public does. That’s the trap that you can’t let yourself get caught in. It doesn’t matter that you and I aren’t interested in an $80 diaper. All that matters is that enough people are buying them. The same goes for a bottle of craft beer that might cost $12, $29, or much more. The challenge is finding a product that fits a market.

Premium price changes everything

In whatever you sell, there is almost certainly a premium price product or service opportunity – or both. You’ll never know where the price ceiling sits until you test it. We’ve all been offered an up-sell (want fries with that?), but this is different. Successful efforts typically result in a new tier of products and/or services. Sometimes, it reveals a completely different type of customer. It also allows ascension for some of the customers you have now.

Testing new product / service / price tiers could result in a new way of doing business for a subset of the people you serve. It may also reveal that there are additional price / product / service tiers between your existing regular and premium-priced options.

A successful “bar” that closes at 8:00 pm?

Montana micro-breweries are a fascinating example of finding an undiscovered tier in a market. They operate under a number of restrictions that impede their growth, including (recently raised) limits on the number of barrels they can brew each year.

Two additional restrictions that would ordinarily seem fatal to a traditional drinking establishment have instead created a new market tier.

First, Montana breweries with a taproom / tasting room may only serve 48 ounces (three pints) per patron per day. This might seem like a rather punitive restriction, but it doesn’t work out that way. First, most craft beers have a higher alcohol content than “regular” beer. As a result, three pints per visit is usually enough. Ever seen a bouncer in a brewery’s taproom? I haven’t. You’re more likely to see families and friends meeting together with their kids. Yes, in a taproom.

Second, Montana brewery tasting rooms cannot serve beer after 8:00 pm – at least not without getting a more costly / complex alcoholic beverage license. The traditional thought process would presume the 8:00 pm close dooms the tasting rooms. Instead, they’ve become gathering places after work, or before/after shopping and/or recreation. You’ll often see groups in a tasting room that you’d rarely see at a bar.

Without the typical late night hours of a bar, employees get home early enough to do some homework, put their kids to bed, or get a decent night’s sleep before their “real job”  (or college).  Likewise, these businesses avoid the occasional negative late night bar behavior that some places have to contend with.

While these limitations are restrictive, they’ve created a consumption tier that all but eliminates the negative behaviors sometimes associated with traditional bars.

The question is – what could be the premium-priced craft beer in your business?

Accepting change: How can you help?

New technology is full of emotional change. Everyone finds their own pace when it comes to accepting the changes that come when adopting new technology. With brand new technology, the differences in adoption rates widen even more. Some folks won’t touch new technology. Other people prefer to wait a little while and let someone else take the punches that “first implementers” must often withstand. There are those who consider how the new tech can help them, and if it can, they’ll dive in wholeheartedly. Finally, some chase the Bright Shiny Object (BSO) – no, not the eclipse. The BSO distracts them just like a randomly reflected spear of piercing sunlight off a car windshield grabs your attention while driving.

This isn’t limited to technology

Segmenting the speed of accepting change isn’t new. A series of books by Geoffrey Moore, starting with “Crossing the Chasm“, examined this in detail. However, the phenomena isn’t limited to technology. Anything in our lives that introduces change tends to fit into these segments of how much (and how early) we’re willing to dive in. We’re creatures of habit, even in how we change. Our hesitancy or comfort to try new things impacts every purchase – including the uptake of anything new or different. Some of us love change. Some hate it. Most are somewhere in the middle. Many occupying the “fat part of the (Bell) curve” need a reason to change. Maybe not a big reason, but a reason all the same.

Ever tried to get a young child to try a new food? If so, you probably didn’t give them an adult-sized serving the first time you had them try it. As with the kid and that broccoli they (at first?) loved to hate, it’s often best to ease people into a new thing. Sometimes, you have to offer them something they crave (like ice cream for dessert) if they’re brave enough to choke down their broccoli.

It’s no different with adults. Try to convince a pickup driver to change from Ford to Chevy or Dodge. Ask a golfer to change clubs. Ask a frequent flier to change airlines. In each case, you’ll probably face substantial resistance.

How is that different from you wanting them to switch to your restaurant, hardware store, dinner menu, or IT company from the one they’re comfortable with?

IT ISN’T.

Risk reversal reduces friction

If you need someone to make a change in order for your venture (or career) to succeed – you need to figure out where the friction comes from. Whether you’re trying to work with the pickup driver, golfer, or frequent flier, what creates the resistance that keeps them from considering a change? Risk is a common source.

When we wanted people to change to our software years ago, almost everyone had a 30 day money-back guarantee. A few had a 60 day one. We changed ours from 30 to a full year. The difference in refunds is trivial between 30, 60 and 365 days. The perception of who takes the risk, however, changes completely.

I was on several car lots over the weekend. Of maybe eight different dealers, I met one salesperson who was hustling. He clearly understood that the goal was to get a new customer, not simply to sell a car. Almost anyone can sell a car (or whatever you and I sell), a real salesperson is looking to create customers for life.

Anyhow, this guy offered to send a car home with me for a few days to make sure it fits. Sure, I know how this works. It’s like a test drive on steroids. If they get you to test drive it, they know how much more likely it is that you’ll buy (trust me, there’s lots of data). “Take the car for a few days and see how it fits” is the next step up from a test drive. Even so, it’s a proven risk reversal strategy. We know we’re likely to miss something on a test drive. When our neighbors see the car, when we see that it fits in the garage, & when the rest of the family reacts – it’ll be tougher to return it.

Your challenge: Determine what’s necessary to reduce resistance to the point that your prospects will consider making a change. What risk(s) must you take off the table? “Change” in this case means make a sale and get a new client.

Photo credit: Frank Winkler

When the smoke clears, will your reputation?

No one in the Pacific Northwest has to be reminded that this is the worst fire season since 2003.

Depending on what you do a bad fire season could be a boon, a bust or a non-issue to your business. Over the last couple of weeks, we had communications and marketing oriented conversations focused on the folks whose businesses are placed at risk by a bad fire season.

There’s a different kind of business impacted by fires, natural disasters and similar events: those who provide things like tanker trucks, field rations and related convenience items, construction supplies (lumber, drywall, tools etc) and so on.

If a scene like this summer means that you will be extra busy for the next year or so, perhaps more, good for you – particularly if you are a trusted member of your community (business and otherwise).

However obvious this may seem, it needs to be said…

A reputation setting recovery

The way you and your staff serve your clients from now until the recovery is over – regardless of what’s being recovered from – will set the tone for your business’ future.

Some will eventually give you a second chance, but for most, this is the one chance your business will get to show its colors. It will seal the reputation of the business, its owner(s), managers and staff.

Captain Obvious, you say? Perhaps, yet we continue to see examples where businesses have behaved so badly that governments feel obligated to put “no gouging” laws into place.

The thing is, pricing is the least of your problems. People understand that pricing gets a little crazy when resources are constrained. Supplies are often harder to get, and they’re often competing for scarce transportation facilities including berth time at port, dock time at warehouses, much less truck drivers or semi-trailers to haul those supplies. Qualified people are in demand, which tends to create overtime hours.

Do your clients want to wait or pay overtime-related costs? Ask them.

Communicating the challenge

When these situations occur and drive up your costs, communicate the situation as frequently, quickly and clearly as possible. Communicate what you’ve done to try and work around the situation. Ask your clients for ideas and connections in their network that could help you serve them a bit better.

You never know when a client might have access to resources or connections that could solve a problem that’s simply “killing” you – and those things may be out of reach without a little insider help. Even worse, if these clients know what’s blocking your progress and they know their resources / connections could help but you keep telling them you have things under control – how could that damage your relationship / reputation?

It’s OK to ask for help.

Resource problems aside, be sure that any abnormal delivery timeframes, costs, staffing challenges or other potentially damaging issues are communicated well. Transparency works. Small businesses use it as a competitive advantage vs. larger, better funded competitors during good times, why not use it during challenging, resource-constrained times for the same reason?

Call volumes are unexpectedly high, but your call is important to us…” – something you’d never say to a client before putting them on hold. Yet you only get this greeting when reputation damage is most likely to happen.

We don’t remember that the cable internet met their 99.9% uptime goal last year, but we remember each of the 43.8 minutes of downtime per month that this uptime goal allows for – and that the downtimes happened at inopportune times.

We remember when we consistently get a transparent answer or explanation.

The mindset that risks it all

The “they have no choice, I will get (and keep) the business no matter how I act” mindset can infect everything from sales and service to receivables and delivery. Once observed in one part of the business, it’s a matter of time until it crawls elsewhere.

I won’t belabor this, because the kind of business owner or manager who would let this behavior happen wouldn’t likely read my work. Despite that, check out the short 30 seconds it takes Vince Lombardi to describe the obligation that team members have to do their best on every play of every game.

Print readers, see https://www.youtube.com/watch?v=HKN3rvrWyvg&feature=youtu.be&t=0m50s

 

Why do they want to disrupt your market?

The big word in the startup world is disruption, as in “We will disrupt the what-cha-ma-call-it market.” Thinking about last week’s discussion about buying a new vehicle, let’s talk about what disruption is and why “they” want to disrupt our market.

Some examples of disruption

Paypal disrupted the credit card merchant account market. Old news, but it’s a good example. At the time, it was a substantial effort for a small business to get setup so their clients could pay them with a credit card – particularly if there was a web site or phone sales involved. You could do it, but the fees and the startup obstacles put in place by the banks offering merchant accounts were a time-consuming hassle. The assumption was that you weren’t as “real” as a business selling hard goods out of a retail location. Paypal knew better and treated these businesses with honor rather than suspicion and contempt.

Ultimately, Paypal made it easy to get a merchant account. They made it easy by allowing you to manage it online. Finally, they made it more secure by creating a layer between the client and the small business taking the payment. The client gained because they didn’t have to reveal their card number to the small business. The small business gained because the “layer” that kept the card number out of the hands of the small businesses meant Paypal took on the security requirements and many of the risks of card payment fraud. More secure equals less hassle. Easier and less risk for all involved.

You can find many other examples of disruption in the finance-related sector – all of them based on eliminating the annoyances and artificial barriers established by long-term players in that field.

Other examples include Uber (Is the cab business focused on being a high-quality customer-centric experience?) and SpaceX (Is the defense / aerospace business is designed to provide the best bang for the buck?).

Why do they want to disrupt my market?

Simply put, because doing business with you or your peers (or both) is a pain in the keister. When you make it hard to deal with you, you create opportunities for startups that don’t mind doing things differently.

How do they disrupt my business? Mostly by taking the hassle out of it. Those who disrupt your market talk to your clients and identify the things that drive them crazy about working with you. What keeps you from doing that? Nothing other than you being stuck in “We’ve always done it that way” mode.

The real estate market is a great example of how businesses get disrupted. Zillow produced a website that allowed would-be buyers to identify properties for sale before they were ready to contact a Realtor. Will they still have to work with a Realtor at some point? Probably. Before they “get serious”, are they required to deal with the barriers that most real estate firms put in place? Before Zillow and the like, it was all but a necessity. At that point, you did things their way on their terms. Today, you don’t have to engage a Realtor until you’re ready to take some action.

Could Realtors have opened up MLS to web access before Zillow appeared? Yes, but they didn’t. Could they have made it easier to shop before getting signed up with a Realtor? Yes, but they didn’t. Instead, the MLS was used as a wall around the property-for-sale inventory. Until Zillow and similar vendors provided access to this data (or a subset of it), there was little if any pressure on real estate firms to implement such systems or radically improve their processes to make them more client-friendly.

Eventually, they figured it out and created a new Realtor.com that competes with Zillow and similar sites.

Realtors are not the target

These types of problems are not unique to Realtors. They are common to many businesses.

If you look at these disruptive new businesses, they’re usually focused on eliminating the market’s pet peeves.

Referring back to last week’s car lot experience, consider the business model that Vroom.com has put together. It’s not perfect, but it does a nice job of eliminating the horse biscuits from the buying process. And yet, there’s not a single thing they’re doing that local car dealers can’t do.

Will they notice and adopt the best parts?

And in your market, will you?

Take bad competition seriously

I don’t talk much about competitors.

I avoid it for a couple of reasons. First, because you have far more to gain by investing time and effort into improving your own business. Second, worrying about what someone else is doing is usually a waste of time since you have no control over their behavior.

There are a couple of exceptions:

  • When a competitor does something smart.
  • When a competitor repeatedly damages the reputation of your market.

We’re going to spend most of today focused on the worst of these.

When a competitor does something smart

When you do something smart, a competitor will copy what you did – perhaps. Other times, competitors will watch what you did and fail to see value in it, fail to understand it, or decide that it’s not a good fit for their business.

Sometimes, you’re the one watching that happen. You owe it to yourself to pay enough attention so that when a competitor does something smart, you can analyze what your action would be. For example, if you run a high end hotel and the other high end hotel in town adds valet parking,  you’re going to need to think about how to respond.

The key here is not usually the thing being done. It’s seeing the move for what it is. Deciding why it was done and what it accomplishes isn’t always obvious. Consider it carefully.

Competition damaging the market

Usually a competitor who can’t get out of their own way will find a way to go out of business. This allows us to ignore them and let them flame out on their own.

Sometimes we aren’t that lucky. When that happens, what we’ll find is a business (and owner) who damages their own business, but not bad enough to make it fail. You’ll see this in markets with enough demand that even a poorly run business can find a way to make enough to survive.

The problem is that a business run this poorly creates a reputation that can damage every business in the sector. If there’s more than one of them, it’s a matter of time before their combined reputation stains an entire market full of businesses.

Including yours.

Don’t take it.

Are you willing to let your competition destroy the reputation of the market you’re in? Of the business you’ve worked so hard to build?

Think about the effort you invest to market and sell what you’ve worked so hard on. What would it take to accomplish the same thing if your reputation wasn’t what it is right now?

How many times have you heard people discuss putting off a transaction with a vendor because of prior experience with another vendor? You know of markets that already have this problem.

How would you cope with a business or group of businesses that do things to cause the public to think less of the rest of the businesses in your market?

Are you sure they don’t already exist? If not, how do you find them?

Finding bad eggs

Whether these reputation-damaging competition exists or not, you’re likely to find the scoop on the social review networks where your clients report their experiences.

In general, Yelp is the best place to start since their reviews aren’t limited to any single type of business. They do have more restaurants (for example) than many other types of businesses, but their coverage is quite broad.

In some cases, you’ll find more industry focused social review services, such as TripAdvisor. Finally, if your client community includes students, their school / university may have a review service, ombudsman or similar.

You should be reviewing and responding to comments on these services on a regular basis, but in this case, you’re looking for your competition.

If you find consistent patterns of client abuse and reputation damage that span a number of your competitors, you have a decision to make.

What to do

If you can take the guilt-by-association reputation damage, or you don’t think it will affect you, stick to working on your business – but keep an eye on it.

If it’s more than you can take or it gets worse, you have a few choices:

  • Buy them out.
  • Turn up the competitive heat.
  • Decide what you’re willing to do to save your business. Remember, your business and its jobs are at stake.

Are you willing to lose your business because they don’t care about theirs?

Do you value your clientele?

Business demonstrate what they value through their behavior.

Some businesses value what they do, those they work with and most of all, those they serve. They work hard for every lead. Every client. Every order. Every payment.

They work to improve their craft every day. They learn from the best of their peers, while extracting and fine tuning strategies and tactics observed in other industries.

They “over-communicate”. As a result, their clients have no doubt what’s going on during a sales process, an order, a refund, much less construction, manufacturing, delivery, repairs and ongoing maintenance.

When there’s a problem or miscommunication, they pick up the phone, they email or otherwise communicate all the necessary details, then work as a partner with their clients to create a win-win resolution.

When they market, good businesses do their best to create want, evoke need and make an irresistible offer without being slimy. The ones who value their clients most also talk about the importance of the everyday things they do for their clients that other businesses might also do, but never bother to mention (Example: Northern Quest’s housekeeping and security team commercials).

Let’s talk about that for a moment… These businesses set standards for these seemingly mundane details and train their employees so they can attain them every day. Rather than tell us about the food or entertainment, why do they remind us of tasks performed by staff who are all but invisible to some of their guests?

The everyday things that these staffers do may not be what makes you decide to make an initial reservation (or purchase) or choose their resort over another. Even after a visit, you may not remember these details weeks or months later, if you notice them at all. What they might do is make you notice the next time, draw attention to that aspect of your experience with them and/or provoke you to think more about them on your next visit to another facility. These mundane things are often the tipping point between going back to resort A or choosing their down-the-street neighbor, resort B. They’re the kind of things done by businesses who value return clientele.

These business will do any number of things to monitor and improve the things they’ve know will cause their clients to return.

They will systematically call their clients and ask for 20-30 minutes a couple of times a year (at least) to discuss not only how their performance has been, but what the current and upcoming expectations of the client are and what else they could do for that client in the future.

When confronted with a reality check about their service, rather than come back with a confrontational reaction, they ask how they could improve that situation – and others.

These businesses don’t show that they value their clients by thinking that they’re done improving. Instead, they are constantly looking for ways to improve – even if they can’t immediately implement the change.

These businesses don’t focus on the worst of their clientele. In some cases, they fire the worst, in others, they implement programs that raise the worst to a better place. They see it as an investment to help their clientele become better individual clients, whether their clientele consists of consumers, businesses or both.

These businesses invest in education internally and demonstrate the importance of delivering educational value to their market, which not only improves the market, but establishes their position as a leader in that market and builds their credibility.

These businesses don’t have a moral ambiguity about selling. They know that they have an obligation to their business, their employees, their employee families and their communities to make the effort to see that every possible prospect who can benefit from their solutions does so. They understand that this obligation to sell to the best of their ability isn’t just about them, but that it connects to the well-being of their clients’ businesses, their clients’ employees and their families and ultimately, to the communities where those families live. They understand that this obligation does not mean that everyone with a heartbeat is their prospect, so they carefully qualify who does and doesn’t get the opportunity to benefit from their products and solutions.

Do you value your clientele?

Looking to disrupt a market?

2015 is shaping up to be a big year in Montana for Startup Weekend. With the Billings event already under our belt and three more scheduled this year (Great Falls, Bozeman, Butte), lots of people are looking for startup ideas.

One place that gets a lot of interest is “stodgy” established markets that are lucrative but neglected from a modernization and/or innovation perspective.

It’s easy to point out markets whose former leaders felt things were good enough. Those markets now have to compete with Craigslist, Uber, Airbnb, SpaceX, Apple iTunes, Spotify, Netflix, Amazon, Expedia, Kickstarter, Zillow and so on.

Ironically, some of these companies have awakened their markets to the point where they are now being disrupted by startups and in some cases, by the original leader in the market.

Things are as they should be in these markets. We earn the privilege to stay in our market every day. When we don’t, we often expose opportunity we’ve ignored, provoking someone to disrupt a market.

Resting on laurels

It’s easy to look at existing markets for disruption candidate because so many existing businesses invite competition simply by virtue of how they treat their clientele.

For example:

  • Do you work with businesses that take you for granted?
  • Treat you poorly?
  • Treat you with disdain?
  • Treat you like they’re doing you a favor?

dWhen a business leaves you feeling like one or more of those, it’s difficult not to consider what it would take to disrupt them out of the picture.

Want to disrupt a market? Disrupt yourself

Look back at that list. Does your business you make your customers feel that way? If they do, one way to fix it is to disrupt yourself. So where do you start?

Four ways that startups disrupt an existing business (or market) are through speed, improved customer service, decoupling and unbundling. Two of these are forgone conclusions that you simply cannot avoid, speed and improved customer service, while the other two are rapidly becoming assumed competitive angles.

Speed – No one’s resistant to the market’s need for more speed at the same or better level of quality. Conventional wisdom says that it can’t be done – “Pick any two: cheap, fast or good“, but conventional wisdom rarely considers what the startup list at the top of the page not only tried, but accomplished.

Improved customer service – To be sure, there are companies out there that do well both in revenue while treating their clientele poorly, but their days are numbered. One by one, they will be picked off – and I’m happy to help their competition do it.

Unbundling – Unbundling involves separating the sale of an item from the delivery of that item. Expedia is an unbundler. They took services offered by travel service providers and unbundled them from the provider who delivers them, made it easy to buy and search for what travelers needed, sold them and collected their cut. Expedia got substantial market share because they made it easy to find and compare flights without having to deal with each provider’ web site and/or phone tree. Unbundling has somewhat limited scope because it only happens at consumption / purchase time, which is why decoupling businesses started popping up.

Decoupling – A decoupler pulls apart the evaluate-select-purchase process that used to be performed at one established business. Decouplers focus on radical improvement of a single part of the process. For example, retailers face competition from decouplers who might mail samples to someone’s home, allowing them to skip a trip to the mall to decide what they want. Once the mall trip is eliminated, another step in the evaluate, select, purchase process might be removed elsewhere. Any point along the evaluate, select, deliver, purchase process is a candidate for decoupling. While the social aspects of that trip to the mall can’t yet be delivered to your mobile device, there are plenty of other ways to address shoppers’ social needs.

Try Startup Weekend Therapy

Stuck on how to disrupt yourself? Take part in a Startup Weekend. I’d be shocked if a weekend in that environment didn’t provide you with ideas and mindset adjustments to bring back to your business.

Want more? Here are a few links to startup idea resources.

http://ideamarket.com/founders.html

http://www.paulgraham.com/ambitious.html

http://paulgraham.com/startupideas.html

http://www.inc.com/rahul-varshneya/4-places-to-look-for-your-next-startup-idea.html

http://old.ycombinator.com/ideas.html (this list is aging, but they might seed a useful idea)

http://www.ideaswatch.com/

Exhibiting at trade shows – Why do it?

Should we go to every trade show every year? Some of these shows cost us well over $7000. The one show that we want to skip this year is part of an association. They have about 300 members. We know just about all of them and know what they are using. Of course, a bunch of them use our product.

Anyone who has attended a trade show knows why this question is being asked.

Avoid the knee jerk

Our thoughts first jump to the time, trouble and expense of trade show travel, time away from “real work”, conference center shipping and logistics, being on your feet all day for three to five days, skipping meals and sleep as you work 6:00 am to midnight while your friends, family and co-workers think you are “vacationing” in Orlando or Las Vegas, much less the general aggravation of things like paying $300 to rent a 10′ x 10′ piece of cheaply-made, unpadded carpet.

Trade shows can be a hassle. They require a sizable investment in time, money and people to participate, so the natural response might be “Let’s think of reasons not to go.

Don’t do that.

Why go when you own the market?

If you don’t go to a show or association meeting because you feel you own the market, what message does it send?

Here are a few possibilities:

This vendor doesn’t care enough to show up and talk to us.

This vendor only shows up when they think they can close a bunch of deals.

This vendor takes us for granted.

If your competitors are there – these are some of the ways they might position your decision not to attend, or they might simply say “Think about why Company A wouldn’t show up.

Think about the show from the point of view of the attendees who invested in your products and services. Will your absence tell them you’re taking them for granted? Remember, these people helped you gain your dominant market position by investing in what you sell. By attending these events, they’re identifying themselves as the ones who care enough about their business and their industry to step away from the office, learn what’s new, learn what is (and isn’t) working in their industry and brainstorm with peers and vendors about solutions.

Do you prefer to listen to the ones never involve themselves in such things?

Seth calls these people your tribe. Dan calls them your herd. The concepts are different, but their needs are similar. Herds require attention and care. Your clientele does too.

Herds? Really?

I don’t refer to “herd” with the mindset that your clientele is a mindless bunch of cattle. Instead, consider “herd” from the viewpoint of a rancher. How do they attend to their care, oversight and feeding?

Do they let the herd eat what they want? Deal with the weather without concern?  If a predator appears, do they simply let that predator kill off a few of the herd? If someone shows up to rustle part of the herd, do they sit back and let it happen?

Ranchers provide the right forage and plenty of fresh, unfrozen water, while protecting the herd from predators, rustlers and other threats.

They care for the members of the herd because they know each member of the herd is returning a ROI. They know what it costs to lose a head. Do you?

While members of a cattle herd don’t choose to be there, clients can choose to leave, as can tribe members. The care and attention you provide has a great influence on their choices.

What opportunities will exhibiting at a trade show present?

Find out what concerns your market today – from the current perspective of the leaders in your market, rather than from insights and perceptions that may have been formed years ago.

It’s an opportunity to talk with someone who uses another vendor’s product. If they won’t switch to yours – isn’t it important to know why? A face-to-face, eye-to-eye discussion may yield critical insight, or it’ll confirm that those people aren’t your ideal clients. Either way, it’s valuable info.

What will you gain from a stronger relationships with your clients and other vendors in your market?

Trade shows are unique gatherings of the best clients, prospects and vendors. They’re a big opportunity – if you work shows strategically and execute them with a plan.

How to make a good upsell

Thanks to cloud services, my hardware needs have shrunk substantially in recent years. This makes it easy to pace and plan hardware upgrades for what little hardware I have left.

However, reality sometimes gets in the way. Yesterday, my wife’s laptop died so I had to take immediate action.

It was a lesson in fulfillment, point of sale retail and how to make a good upsell, or not.

Bad upsells undermine trust

Every time I update Java, the Oracle-owned technology’s installer offers to install the “Ask Toolbar” as an option.

The default is “Yes, install the Ask Toolbar” and may also ask to change your home page to the Ask search engine page. My guess is that Doug Leeds (CEO of Ask) doesn’t even use Ask as his home page.

According to three different independent references in Wikipedia, the Ask Toolbar is considered malware: “Ask.com is noted for a malware toolbar that can be surreptitiously bundled in with legitimate program installations, and which generally cannot be easily removed from most common browsers once installed.

Every time I update Adobe Flash Player, the Adobe-installer offers to install McAfee anti-virus. Naturally, the default is “Yes, install MacAfee.”

Since Microsoft bought Skype, the Skype installer now asks to switch your default browser, switch your default search engine and install a browser plugin that changes what happens when you click on a phone number. Of course, “Yes, please make all those changes.” is the default.

In all three cases, these defaults are the last thing you want to do.

The point is that these actions give the impression that these companies are willing to damage their reputations (and our computers) and undermine any trust we might have in them by injecting these out-of-context (or damaging) upsells into the process of using their products.

Why bad upsells annoy us

As long as we’re paying attention, these things are easy to bypass and only take a moment to do so. Anytime we’re installing software on a computer, the prudent user should be paying attention. We should not be clicking through the install to “just get it over with”, yet many do exactly that and find themselves victims of these unscrupulous install processes.

They amount to bad upsells.

These situations annoy us because they change our experience with the vendor’s product and make us be on our guard at a time when the vendor’s trust should be assumed – when we allow them to take brief control of our machines so their software can be updated.

It’s the worst possible time to do something to undermine trust, yet that’s exactly what these and other vendors do. It’s the worst kind of upsell, even though we aren’t being asked to open our wallets.

So how does that relate to a new laptop?

Good upsells are helpful

Deciding what to upsell is as important as the act of asking about it. When someone asks me how to make a good upsell, I suggest that they focus on being helpful.

If someone brings a couple of cases of canned drinks to the checkout stand, a helpful suggestion is “Do you need any ice?

If they bring five quarts of motor oil to the checkout, it makes sense to ask about the kind of vehicle they have so you can help them select an oil filter.

Even though we buy gifts for people all year, only jewelry stores tend to ask if if we’d like complimentary gift wrap for a purchase made January through October. Gift wrap is an upsell, even if it’s free.

We get distracted or forgetful in these situations by thinking beyond the moment, so the right kind of upsell can save us time, fuel, frustration and embarrassment by reminding us about important but briefly forgotten items.

As with any marketing, you should test your upsell to see what works so you can stop doing what doesn’t. A better ice question might be “Do you have enough ice to keep these cold all day?“, but you won’t know this unless you test different questions and measure the results.

Does the upsell help the customer remember something that compliments their purchase? Does it help them make the purchase more effective, more productive, more valuable to them?  Does the upsell build trust or undermine it?

Bottom line: Does it help them?