When to fire a customer

We’ve all heard the saying “The customer is always right.”  While that philosophy may help when it comes to disputes or disagreements, it’s not ALWAYS true.  There are plenty of times when it’s wise to break off a relationship with a customer.  Some examples are when a customer . . .

• Never pays on time.
• Threatens to jump ship if you don’t constantly throw in a freebie or an extra.  An example, threatening to take their business somewhere else unless you reduce the price for them or give them a bonus item.
• Asks you to do something unethical or against your morals.
• Complaining to others about your services.  If there’s a genuine problem, definitely address it first.  If it’s someone who will never be happy no matter what you do to fix it, they are most likely complaining to others about you and therefore, hurting your reputation.
• Is extremely rude, belligerent, or aggressive to yourself or someone who works for/with you.

Consider the customer’s monetary worth to your business.  Are they your number one account?  If that’s the case, it might be worth discussing the problems between you to see if you can get it resolved.  Are they someone who doesn’t affect your bottom line?  Then let them go.  It will be easier in the long run.  It’s hard to consider letting go of potential sources of income in this economy, but think about the pros.  Your employees not having to deal with constant abuse or yelling from a customer can boost their morale.  It will increase their productivity.  Plus, it’s almost a guarantee that your most demanding customers are not the ones that bring you the most money.  They’re usually the ones who you work hardest for for the least reward.

So how should you go about it? 

1.  Be professional.  Don’t send an e-mail or leave a voice mail message unless that’s how you usually communicate with them.  It’s like a regular relationship.  It’s best done in person.

2. Don’t vent and get emotional.  That’s the first thing they’ll go complain to your competition about.  Let them know your reasoning in a straightforward manner.

3. Offer referrals.  Let them know of other people from whom they can obtain similar services or products.  It will help steer them in the right direction.

Firing a customer is not always an easy or black-and-white decision.  It’s important that you do your research on whether saving the relationship is worth it to your business.  But don’t let your customers run the show. 

For more resources on this topic, you should view this article or this one.

For help with your real estate or small business marketing needs, visit us online.

Make sure you schedule marketing time

We’ve talked the past few weeks about making sure your marketing messages were going to the right target, how to improve direct mail campaigns, certain mistakes not to make with your marketing.  While those are all important topics, it’s equally important to make sure you have time in your schedule to get your marketing done.  And we don’t just mean a few minutes on Tuesday and an hour on Friday afternoon if you get a chance.  You need to plan a schedule.  Just like anything else (an appointment with a client, a teleseminar on the housing market, etc.), you need to schedule time in your daily or weekly schedule to get your marketing done.

There’s two easy ways you can set this up.  The first is to break the activities up by working on a theme for each day of the week.  For example, Monday would be a day for communications.  This can be posting blogs, Facebook, Twitter, etc., catching up on e-mails for the past week, or creating a new telephone script.  Tuesday could be client day.  Meet with clients, schedule time to meet with clients, handle paperwork related to clients.  Other themes can be writing (blogs, newsletters, articles, ad copy), research (test new marketing, collect new e-mails for e-newsletter, develop new ideas, find articles for newsletters), administrative (paperwork, pay bills, create to-do list), Web site (new pages, collect new e-mails, respond to leads, add photos), etc.  You should have no problem breaking down your week into five days so everything can get done.  Then set time in your daily schedule to accomplish everything.  Try not to answer phone calls and e-mails throughout the entire day.  Block off two one hour periods (once in the morning and once in the afternoon).  It will help you to accomplish a lot more.

The other way to set up your schedule is to devote a day of the week to a particular marketing activity, rather than a theme.  For example, Mondays could be about sales.  You could spend that day working on e-mailing your lists about a new promotion, writing copy for your next direct mail piece about your monthly sale, or make every Monday a sale for your business.  One day could be about adding to your client database by collecting new e-mail addressesand contacting past clients for referrals.

However you choose to set up your schedule, the most important fact is that you have a schedule.  Don’t just say I’ll work on it in the hour you have free time.  Schedule it in there.  You’ve heard the saying, “It’s as important to work on your business as it is in your business.”  Make working ON your  business a priority.  Promise not to go home for the day until you’ve touched base with 5 past clients.  Jody Gabourie, the Marketing Plan Queen, offers more tips here. For help with your marketing pieces, please visit us online.

How to handle the tough objections

Anybody who has ever tried to sell a product or service before has run into the problem of dealing with objections.  You know, those few words that can pull you right back down after you felt so good delivering a presentation sure to close your sale.  Jeff Wuorio is a small business writer, and he offers suggestions on how to deal with some of the more popular objections that occur in a business setting.

1. I’m already working with your competitor.  First of all, know that no matter if the customer is happy in that relationship, they may feel particularly loyal to the competitor for a number of reasons.  It could be a past sale with them, a family relationship, etc.  And you don’t want to destroy that loyalty.  What you do want to do, is try to get them to listen to what you have to say.  The customer can’t lose anything from hearing your sales pitch.  Worst case is they don’t leave your competitor.  Nobody got hurt, and you got to practice your sales pitch again. 

2. You’re too expensive.  This could be another reason why they choose to go with a competitor.  When they say this, they often don’t understand the concept of the value you’re offering them.  They’re focused, instead, on the price.  Show them how your product or service will offer them a return on their “investment.”  Don’t automatically bring down your price because it takes the value out of what you do.  Instead, try to find out what they’re willing to pay and offer them a replacement product that will equally suit their needs for less money. 

3.  I don’t have time to talk or meet with you.  At least they’re taking the time to let you know that.  That’s a sign that you’ve already gotten through to them.  Wuorio’s article says, “”They may be dealing with something you’re not privy to,” says Chris Deren, CEO of SellMasters Inc., a Boston sales performance consulting concern. “Help them understand that what you do may help with what’s soaking up all their time.” Deren also suggests networking with colleagues, other people within the prospect’s company and others to try to get a personal feel for what your prospect may be dealing with. If nothing else, any extra insight may impress your prospect: “He may decide that you’re one of the few people that he does have time to talk to,” says Deren.”

4. I don’t see the value in what you offer.  Again, this is another misunderstanding because the customer knows that your offer does have value, they just don’t see it.  Try to sit down with them to show them how your service or product will help them.  Whether it saves them time, saves them money, keeps employees working their longer, etc.  Try to do research on the customer ahead of time to find out what’s most important to them, and then figure out what the value you’re offering can do to help.

Knowing these objections ahead of time won’t leave you tongue-tied when it comes out of your customer’s mouth.  It’s best to know the proper way to handle them to appear in a most professional manner. 

Visit us online to see the value and the time savings we offer for all of your marketing materials!

Cut costs and save money

We’ve talked about how the recession is having an impact on small businesses and real estate businesses across the country.  Here are some great ways to cut costs without losing business during the harder times:

1. See if you can renegotiate current contracts.  And this doesn’t mean just with your employees if you have them.  Look at what you’re paying monthly for.  It could be telephone service, postal services, advertising, etc.  Talk to your vendors to see if they’d be willing to adjust your fees.  Maybe you’ve been a customer of an advertising company for 10+ years.  Let them know that and see if you can get a discount.  Try using an e-fax instead of paying out of pocket to send faxes nationwide.  Get an Internet-based phone system like Vonage. 

2. Get rid of travel expenses by not traveling!  With the technolgy that we have around us today, this is a lot easier than it used to be.  We now have access to Web conferencing, conference calls, etc.  If you do need to travel, look online for great deals.  If you have an Entertainment Book, you can often find cheaper hotels and travel packages through there.  Are you a member of AAA?  A lot of hotels offer discounts to members.  Be sure to ask.

3.  Save money on having an office by letting employees telecommute.  You won’t be paying rent or utility bills this way.  If you do have an office, try going green.  We talked during Earth Week on ways to save money.  Some great ideas include purchasing fluorescent bulbs.  They last longer and use a lot less electricity.  Bring reusable bottles to work with water instead of buying bottled water.  Use and rinse mugs instead of using Styrofoam cups.  Print on both sides of paper before you toss it (or recycle it!)  Turn off computers when you leave for the day.

4. Barter.  See if you could exchange your product for a service or product somebody else offers.  Own a beauty salon?  Give free haircuts in exchange for window cleaning.  Have a real estate business?  Advertise local businesses in your newsletter in exchange for gift certificates for client closing gifts.  Get creative!  You’ll see how quickly these changes add up, and you can get new customers and clients this way!

5. Repair instead of replacing.  Have your ink toner refilled instead of going out and buying a new one.  Did your Xerox machine break down?  Have it checked before you shell out cash for a brand new model.  It’s always worth a try.

6. Look for discounts where you shop.  Spend the money to become a member of Sam’s Club or Costco.  You can save a lot of money by purchasing office supplies in bulk.  They even sell ink cartridges for printers.  Look to buy postage stamps on Ebay.   We always Google where we’re shopping before hitting the stores.  Oftentimes you’ll find coupons you can print.  Just search for the store and “printable coupons” or “online promotional codes” if you’re shopping online. 

What other ways do you know to cut costs?  We’d love to hear them for a future blog.  Leave a comment or visit us online.

Going from the office to a home-based job

So you’ve decided that it’s time to work from home.  You either have the opportunity with the company you currently work for, or you decided to start your own company.  Good for you!  Working from home can be a great chance to earn tax deductions, save money on gasoline and eating out, and be more flexible in your time to get things done.

Christine Ng, a professional coach, wrote a great article on how to start out. These tips should help make your transition from the office to the home a little easier. 

1. Figure out where you’re going to work.  While it might make it easy to place your computer in the kitchen, you’ll want to dedicate a space where you’ll be spending most of your time.  If enough of a space in your home is dedicated to a home office, you may be eligible for a tax write-off.  You’ll want to check with your accountant.  Make sure your space is equipped with all the supplies that you need so you’re not constantly running up and down stairs when you need something.  Be sure your computer is networked, printer has ink, phone gets a dial tone all before opening for business.

2. Figure out when you’re going to work.  You’re going to want to devote a certain amount of time each week for working.  You don’t want to say you’ll work from 9 am until 3 pm and then realize you’re working from 6 pm to 2 am.  Try to keep it consistent so your customers and colleagues know when to reach you.  This will also help you to build your business and not keep from getting behind.  It’s so easy at the beginning to realize not going into the office means more freedom.  Just don’t let it get too far out of control.

3. Figure out how you’ll get paid.  Try to work out a plan with your budget so you’re giving yourself a salary bi-weekly or monthly.  As a salaried employee, you’re used to getting a paycheck.  It will be difficult to adjust if you only pay yourself when you make a sale.  So do your best to pay yourself consistently, even if it’s not that much.  Try to separate your personal expenses from your business expenses with a different credit card and checking account.  This will make your life much easier when it comes time to filing taxes.

4. Determine what your goals are.  Once you do that, you’ll want to post them in a place that you can see them every day so you know what you’re working towards.  If you’re constantly looking at it, you’ll know what you have to do to accomplish that amount, and it might mean making a change in your work hours.

View Christine’s article for three more great tips. Once you’re set up and ready to go, please visit us online so we can begin marketing for your new business!

How to save everyone’s time working with new clients

As a Realtor, you know how hard it can be meeting a client for the first time.  You don’t want to waste your time showing them homes that they can’t afford, or their time, either.  Real Estate Trainer Craig Proctor offers some tips on how to qualify clients correctly before you agree to work with them.  In this slower economy, you want to make sure you’re spending all of your time working with clients who you know will guarantee you a sale. 

The first step is to get a face-to-face meeting in your office or the client’s home.  You want to be able to sit down with them and get comfortable with each other, rather than just meeting at the first house they want to see.  During this meeting you want to explain how to get pre-approved for a home loan and how you can email or mail home descriptions that fit their needs. 

Craig uses what he calls the F-I-R-M approach.  This first appointment is meant to find out if this particular prospect will be profitable.  He says you should only agree to work with clients who are:

Financially stable
Interested in signing a buyer’s agreement
Realistic in their purchase expectations
Motivated to purchase a home

Obviously, you have to make sure they can afford the type of home they’re looking for.  Do not take anyone out to see homes until you have a pre-approval in hand.  Most Realtors won’t even look at or accept offers where buyers don’t provide this to begin with. 

If they won’t sign a buyer’s agreement, how do you know they will remain loyal to you?  If you’re going to remain loyal to them by sending them daily emails and remaining in contact, you will need to expect the same from them. 

Make sure you stress how you want to be sending them listings.  It works as a benefit to them for several reasons:

1. They won’t be wasting their time viewing homes that a Realtor has picked out for them that don’t interest them
2. Someone will take the time to go through the huge MLS database saving everyone time
3. No more viewing properties online or in the paper that are already under contract or sold.  They’ll only receive homes that are still active on the market
4. By being the first buyer to see a home that is new on the market, they could save money and not overpay for a home

For more tips from Craig on qualifying prospects, please click here.

Are you a Realtor that needs help getting all of your marketing and prospecting done?  Please visit us online.