The Freestyle Entrepreneur

Pain or gain?  That is why people buy – always! 

As Entrepreneur Dan Paulson points out in his book, Apples to Apples: How to Stand out From Your Competition, “every purchase is an emotional purchase.”

Your product or service either takes away the pain (I need a car or else I must walk to work.) or offers some kind of gain (My new phone does more and costs less.) 

Your job?  It is to help them either understand the pain of not taking a desired action (If you do not buy this product for your business, you will fall behind your competitors.), or to see how this new product or service will make their lives better/easier/happier/etc. (Investing in this class will show you how to get more done in less time, giving you more time for your family.) 

What to do:  When crafting your marketing materials and sales presentation, always keep the pain-and-gain concepts clearly in mind.  One or both are the reasons behind all decisions to buy or not to buy.   

Work hard.  Make money.  Have Fun.  And sell to the key elements of pain or gain. –

John R. Ingrisano

The Freestyle Entrepreneur

“Every purchase is an emotional purchase….  People are primarily motivated to buy by two factors – pleasure and pain.  A business has to offer products or services that reduce pain, increase pleasure, or do both.” – Dan Paulson, president, InVision Business Development

The Freestyle Entrepreneur

Want to build a loyal clientele?  Then sell “membership” in your special club.  No, you do not need an online enrollment (though airlines and hotel chains find this effective).  Nothing formal like that.  Just do like Starbucks does:  Make customers feel that, when they do business there, they are part of something special … and that in turn makes them special.

 We all love feeling special, unique, valued, part of something beyond ourselves.  That’s why I grocery shop where the owner calls out, “Hey, John!” when I walk through the door; why I bank where my dog gets treats; or why I like to stay in the hotel that actually has my first name posted in the lobby when I arrive, because I’m a club member.

 I also love getting the you’re-special discount.  Years ago, when I spent a year playing and working on St. Maarten in the Caribbean, all I had to do was say “I live here” to get five or ten percent off my purchase in an island store.  I loved it.  It’s not about the money so much as just feeling a part of something.  I belonged.

 That’s why I was delighted the other day to walk into a fairly new, laid-back-but-upscale restaurant (Skalliwags) in my home down of Algoma, Wisconsin, and see a small note on the chalkboard menu over the bar that said:  “10% discount for locals.  Not only was the food excellent and the service good, but I also felt appreciated, part of that club.  So, come February, when the tourists have all beat feet for Florida, I’ll make a point of going back to this restaurant.  Why?  Because they value my local business, and they understand that it is local business that keeps the lights on in the off season. 

 As a small-business owner, how do you create that club-membership mentality?  Here are six powerful yet simple ideas:

1. Give a discount to locals or to past or existing customers.  It need not be big, but make sure it is in your brochure and on your website. 
2. Start the buy-ten-get-one-free punch card.  Some people live for those kind of discounts.  And whenever they whip out their cards to get punched, they’re reminding you that they’re one of your priority customers. 
3. Acknowledge and greet every customer like he/she is your best friend and a truly valued customer.  A hearty “Welcome, come in!” helps build instant relationships.  Never let a customer wander in without a greeting.    
4. Learn their names.  No, this is not always possible.  However, every time you are able to greet someone by name builds the relationship that much more.
5. Ask their opinions.  If you are experimenting with a new recipe, offer a taste; if you are considering adding or discontinuing a product, ask what they think.  Not only does this provide instant market research, but it gives customers a sense of “ownership”  in your business.  (An alternate, highly effective approach:   Ask them  how you might improve a product or service.  The answers will be quite different from those to the standard question:  “How was everything today, folks?”  
6. Throw in a freebie.  In a restaurant, ask your valued customers once in a while if they’d like a cup of coffee … on the house.  Or in a retail store, throw in a 25-cent piece of candy for the kids at checkout.  (When my family wandered into a business supply store 26 years ago as we explored the new town to which we had just moved, the owner gave each of my children a little toy.  Neither they nor I have ever forgotten it.) 

 Most of all, do not – ever – take your customers for granted.  They are your lifeblood.  You need them.  Make darn sure you do not miss any opportunity to let them know how much you appreciate their business. 

Work hard. Make money.  Have fun.  And make your customers part of your special club.  — JRI

The Freestyle Entrepreneur

Smart marketing:  I just did a neat interview with one of the owners of Nutorious, a specialty nut company.  (Look for the amazing story of this zero-to-60-in-five-years Wisconsin start-up in the January 2011 issue of NEW North B2B Magazine.)  They sell high-end snack nut products, and have walked away with top awards in the snack food industry. 

One of the things that caught my attention during the interview was that they usually include samples with every order … often including a baker’s dozen in every dozen ordered.  Makes sense for them, of course, because the ultimate sales factor for food vendors is the taste.  Still, it’s a cost … or more like an investment.

Dumb marketing:  When I was a neophyte, I worked for a small marketing firm that was struggling.  I sat in on a meeting where one of the partners announced we had no money for a needed marketing trip.  As new as I was to business, I knew it was time to begin dusting off my resume.  And, yes, they were out of business within two months.  They had tried to save money by NOT doing the one thing that could have made them money!

My point:  Sure, these are tough times, but it makes no sense to cut back on the very activities that will build sales. 

Some people joke about skipping lunch and, instead, walking through Sam’s Club and scarfing up the samples.  Joke all you want; it works!  It’s the same with online sites.  Many give away a low-level product, and then earn big bucks by inviting visitors to go to the next level.  It works.        

Or then there are the business owners who make a point of putting in some face time with their clients at least once a year, but are flipping the coin over whether or not they can afford it, especially if those clients are scattered from New York to Tampa to Kansas City.  The fact is that maybe they can’t afford NOT to make the trip.  I believe it is crucial to remind clients/customers just how much they need and love you.  (They forget so easily.)  Staying in touch keeps you in mind when they need something you have to offer.

Spend your marketing bucks wisely.  Review results.  However, do not stop doing the very things that will help build up your business.  Keep on marketing!

Work hard.  Make money.  Have fun.  And maintain quality marketing activity. 

The Freestyle Entrepreneur – winner of the 2010 Top 35 Entrepreneur Blog awards from OnLine MBA.

John Ingrisano

The Freestyle Entrepreneur    

209  Church Street

Algoma, WI 54201

(920) 559-3722

www.TheFreestyleEntreprenuer.com

In order to be successful in any business, you must first have a high-quality product or service. But how do you define quality?

It’s simply the degree to which you meet customer needs, and the dollar-for-dollar value that you deliver. But the problem with “quality” is that only your customer can set the criteria that define it. As a marketer, you have very little say in the matter.

The customer will say “I want a faster, lighter widget,” and all of your competitors will begin announcing that they’ve discovered the “Fastest, Lightest Widget On The Market.”

Announcing the quality of your product is really no way to market your offering. It just sets you up as another commodity provider. The quality of your offering should just be assumed.

Your customer already has an expectation of what they want from you. And if you don’t meet that expectation, you won’t succeed. So don’t even bother talking about it.

So if I don’t sell based on quality, what do I promote?

When people buy things, they usually do so with double-intentions.

First, they have an irrational, emotional need that they want to fill. And once they’ve spent their money, they justify their actions with rational quality-based arguments.

This is the essence of consumerism in a nutshell.

• Make-up companies know that young women are insecure about their looks, so they use anorexic models and digitally altered photographs to set up a standard of beauty which is impossible to attain. And then, they link their product to it.
• In their advertising, Apple portrays their customers as creative, artistic trend-setters. And the people who buy their product want to align themselves with that lifestyle. Almost as if a computer could make them seem more interesting to others.
• One of my clients is a <a href= “http://ontariocleaning.com”>cleaning company in Toronto</a>. They understand that corporate customers are secretly terrified of having their cleaning person steal from the office. So their interactions are heavily focused on reinforcing trust, security and reputability.
• Record labels know that poor urban youth crave money, cars, jewellery and women, so they portray rap artists as the sort of people who consistently have easy access to those things (although it’s almost never true).
• Beer companies know that men want to be desired by women. So beer commercials usually take place at cool parties where the drinkers are seen having lots of fun, surrounded by beautiful women.
• Fashion and jewellery designers know that rich people crave exclusivity and “authenticity” (whatever that means).  So they make their products very expensive and difficult to buy. That’s why some of the best luxury products require you to sit on a waiting list for months, or even years.

How can you associate a fantasy with your brand? What sort of emotions are your customers looking to feel when they hire you or buy from you?

• Love
• Acceptance
• Danger
• Lost
• Belonging
• Hope
• Safety
• Power
• Protection

For example: Let’s assume that you’re selling a time management application, and most of you buyers are career-oriented males between 20 and 30 years old. These people clearly want to be more productive at work so that they can get noticed by the boss and promoted at work.

It’s not about saving time. It’s about social status.

How could you use your advertising to build a fantasy around this?

Figure out what your customers want to feel, and then see how you can associate your brand with that image as a means of differentiating yourself. If you can plant a “gut feeling” in your client, it sets you apart in a very positive way and allows you to charge a higher price.

About The Author:

Paul Rudo is an independent marketing consultant and blogger. He’s currently working with http://ontariocleaning.com to help with their online marketing efforts.  He can be contacted at rudoconsulting@gmail.com.

If you own a local business in a small town (or if you’re a small biz in a big city competing with WalMart, etc.), you have to give locals a reason to buy local. 

Example:  When I lived on the island of St. Maarten, there were two prices:  One was the list price … and that was for tourists.  The other was the island price. When I’d walk into a store, I’d mention the magic words, “I live here,” and would get a discount.  It was as simple as that. 

My point, and perhaps I did not make myself clear earlier:  If you want to promote the buy-local concept, you’d damn well better give locals a reason to do business at your business.  And the best way to do that is through the local discount.  No coupons.  No magic cards.  Just a “Hey, how are you?” and a discount on the price.  It don’t get no easier or simpler than that!

 Remember, it’s a two-way street.  Want local loyalty? Give local loyalty.  It is a two-way street!

So, work hard.  Make money, and give your locals a reason to buy from you rather than bitching that they won’t!  –   John R. Ingrisano, The Freestyle Entrepreneur

I have a client that specializes in securities licensing test preparation.  They wanted to build market share, so we spent a lot of time identifying strengths:  they are a dedicated company, in that test prep education is all they do; they are the oldest company in their field; they are family owned; they continually update their materials; their instructors are available 24 hours a day; and their customer service people respond to all contacts within 24 hours.  In short, they do a lot right.  

These were all great strengths, but we learned from our research that none of these was the number one reason customers came to them.  These strengths didn’t pass the TGSWWC test.  What did was one specific fact:  Their students have a 15-20 percent higher pass ratio than the national average.  That was their number one competitive advantage.  Armed with that knowledge, they had the opportunity to retool their marketing and, like a rifle-shot, promote their number one competitive advantage.  

Many of us could learn a lot from this.  Too often, we seize on some clever feature (or more commonly, a vague cliché) that WE think is neat … and then promote it to death, even if no one else cares.  A better idea:  Identify and promote the daylights out of one or two key competitive advantages. 

So, what makes a competitive advantage a competitive advantage?  It is a specific (and honest) claim that answers the question:  “Why would/should I buy from you rather than from the other guy?”  Key features may include: 

• It is quantifiable, not vague:  The more specific, the better.  Examples:  “75% of our customers have been with us longer than 10 years!” rather than “We build strong relationships with our clients!”  Or “We have the largest selection in the county, with more than 125 choices!” rather than “We have a huge selection!”  Or “This is our number one best seller!” versus “This item is very popular!”
• It is unique, involving a claim your competitors cannot make.  This can be as simple as “We deliver,” but only if your competitor does not.  
• It focuses on the customer, not on us.  It passes the TGSWWC test.  Remember, customers don’t care about us.  They care about what we can do for them!  So, change that page on your website from “About Us” to “Why Buy From Us!” 

Other examples of clearly stated competitive advantages: 

 “95 % of our business comes from referrals” versus “We have high customer satisfaction!”

“Our customers return and buy from us three times a year, on average!” versus “We build customer loyalty by exceeding their expectations.”

“We deliver in fifteen minutes or less … or it’s free!” versus “We have speedy delivery.”

Here’s the kicker:  Your competitive advantage can be tougher than you think to actually identify.  It’s said that fewer than two CEOs in a thousand can actually articulate their competitive advantage.  Most companies don’t even bother, preferring to stumble along promoting the same, old, tired features, the ones that cause customers to yawn, think, “That’s Great!  So What?  Who Cares?” as they give their business to a more savvy competitor. 

So, work hard, make money, have fun … and practice the TGSWWC test! 

* * *

Let me explain by asking a question.  What’s the difference between the various banks in your community?  Or the grocery stores?  Or even the fast-food joints?  Too often, darn little, just enough to motivate customers to keep moving their business … playing each business off each other.  (When it comes to restaurants, my friends and I know just where to find the “buck-a-burger” night on Monday, “Taco Tuesday,” and “Fabulous two-fer Friday” specials.”  But that doesn’t buy our loyalty for the rest of the week.)

So, why lock yourself into an exhausting, low-profit, head-to-head, toe-to-toe competition over weekly specials and tiny price differences?   (“Mortgage rates at our bank are .25% lower!!!” or “Peas this week only, save 7 cents!”)?  Big woof!  They do not work.  Let me repeat that:  They do NOT work.  Sure, they keep you from falling behind the herd, but they sure do NOT put you in the lead.  (And remember,  “Unless you’re the lead sled dog, the view never changes.”) That’s kind of like having air conditioning.  Big deal.  You have to.  But it doesn’t bring in business.)    

Instead, let me take the example of grocery stores and show you how the lead dogs do it, starting with Fairway Foods in New York/New Jersey.  Fairway is a fairly small, privately-owned mini-chain, with a funky personality that turns shopping into an adventure.  One of their owners, Steve Jenkins, travels the globe periodically to find unique products and purchase them directly at competitive prices.  (I could be wrong, but I think they have the biggest olive section in the world.  And their cheeses.  Well, Jenkins has become a self-taught — and world-famous — cheese expert, and finds cheeses that make you want to go to Fairway for them alone.)  It’s a quirky, cramped, friendly place … and people love it.  Yes, their prices are competitive, but their real competitive advantage is the experience of just wandering the aisles and discovering foods you’re not going to find at the Super-store chains.

Then there’s Trader Joe’s, another funky grocery store that tends to place their stores in inconvenient places, offer limited choices and provide gourmet selections at reasonable prices.  They have created loyal followers that are the envy of every grocer.  It’s not the products (well, it is, kind of), but the experience.  They do limited advertising, offer no weekly specials, and drive the other stores crazy.

Finally, take Aldi foods, which I used to think of as low-quality, low-rent stores.  I was wrong.  First of all, Aldi’s owns Trader Joe’s, bought them back in the late ’70s, and their owners, two German brothers, rank among the top five richest people in the world!  Aldi’s dominates the grocery business in Europe.  They have made their fortunes by offering excellent quality at up to one-third lower prices, with limited selections (see why they bought Trader Joe’s?) and a no-frills atmosphere.  They succeed by buying directly, managing overhead ferociously and providing quality.

The point:  If you want to compete (and you’d better want to), get outside the box and find a way to make you and your products and your business unique.  Give yourself a special competitive advantage and skip the weekly specials.  As with Fairway, Trader Joe’s and Aldi Foods, make what you have to offer so compelling that customers come to you … and keep coming. 

So, work hard, make money, have fun  … and learn to compete on your own terms.  [Mini-ad:  Need help finding your marketing groove and your unique competitive advantage. Call me.] 

How to survive and thrive in a tough economy:  It’s not the big things; it’s not the little things.  It’s both the big things AND the little things that will make it a slam dunk.

Example:  Recently, a friend needed a new alternator for her car.  I shopped it around.  One place charged me $37 to do a diagnostic (since I wasn’t sure it was the alternator going in) and then said they could replace it for $460. 

Business # 2 said they could look at it, no diagnostic charge, and if it needed a new alternator, the cost would be $370.

Business # 3 said they’d look at it, no charge and, if the work was necessary, the cost would be around $350. 

Business # 3 got the business based on the cost and because we knew them from previous work.  That was the big thing.

Now for the little thing.  A piece of molding on the driver side door, by the window, had been loose for some time.  About a week after the alternator work was done, we noticed that the molding had been fixed – at no charge and without even a word about it from the shop. 

Ding!  Ding!  Ding!  Talk about a neat, little five-cent extra that warmed our hearts and cemented our loyalty.  That was a little thing that made a big difference.  So, guess where we’ll be going for ALL our future repair work? 

The moral to the story:  Work hard, make money, have fun, and remember that it is both the big things and the little things that make you successful.

P.S.  Giving credit where credit is due, if you live in the Kewaunee County or Door County area of Wisconsin, the name of the shop is Sahs Auto, on County S between Algoma and Sturgeon Bay.  Check ‘em out.  

Want more biz tips and support?  Visit www.TheFreestyleEntrepreneur.com.

If that sounds like you, don’t feel bad.  Competitive advantage is one of the toughest things to lasoo in and wrestle to the ground.  Most of us have an instinctive sense that we’re the best at what we have to offer.  But it’s darn near impossible for most of us to articulate.  And until we can do that, how are we ever going to tell the good news to our customers? 

So, here are three things you need to know about identifying your competitive advantage:

1. It’s something that makes you unique and that sets you apart from the competition.  If you have a great product, but so does everyone else, big deal!  You have no advantage.  However, if you deliver or make house calls – and your competition does not – bingo!  This may be your competitive advantage.
2. It’s something customers value and desire.  You may be the oldest company in your field or have a brand new office building.  However, if your customers don’t care about either of these, big deal.  It has to be something they want. 
3. It’s quantifiable.  This is key.  “We have great customer service” is a non-starter.  It says nothing and has no meaning.  But if you can say, “Ninety percent of our new customers come from referrals from existing customers,” you have a winner.  This claim has teeth.  It’s something customers can appreciate. 

The bottom line about competitive advantage is that, once understood, it can direct your marketing efforts like a rifle shot, help you close more sales and make more money.  And that’s the name of the game.

Want to learn more about competitive advantage?  If you’re in the NE Wisconsin area, you’re invited to attend my dog ‘n pony presentation for the Kewaunee County Economic Development Corporation Power Breakfast series on Tuesday, May 18th (I know, super short notice; sorry about that) at the Northbrook Country Club in Luxemburg.  But KCEDC Executive Director Jennifer Brown says just show up.  No reservations required.

Work hard.  Make money.  Have fun.

No, this isn’t some touchy-feely community service announcement.  I’m a hard-nosed businessman.  But I also love to get away and relax every now and then and socialize, forgetting about business.  Plus, I love my little community of Algoma, up on the shores of Lake Michigan in northeastern Wisconsin.

So, when I’m not working, I wear a few different hats:  President of the Algoma Lions Club; volunteer tutor for the Kewaunee County Literacy Partnership; member of the Kewaunee County Economic Development Corporation marketing committee; quasi-leader of the Christ the King Episcopal Church Men’s Group.  And more.  

Now, I do this for fun and because I care about my community.  Nothing beats the feeling of being a part of something bigger than yourself.  I also love walking into any restaurant or store or bank in Algoma and running into friends.  It’s great.

Yes, I do it for the community and because I love being involved, and I NEVER discuss business at these times.  BUT when I’m back in biz mode and I pick up the phone to make an appointment with a community volunteer who is also president of a local bank, it’s not: “Hello, Mister Ross, I’m John Ingrisano,” but “Hey, Bob, John Ingrisano here.  Got a minute?”  And Bob knows me and is more likely to give me a shot.

Bonus points:  

1. Volunteering gets me out of the mindset of a businessman.  I’m not always thinking about business.  And that’s nice.
2. I get to make a difference.  As a member of the Lions, we raise money for local, regional, state, national and international projects.  What we do counts.  Sweet.  Very sweet.
3. I get to work with friends, people I know and like.  It’s not so much work as it is benefiting people I know and like.  Get it? 
4. It blends work and play, and that’s always fun.

 Bottom line:  Sell yourself by giving of yourself.