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Added value will get your price
It was raining on Bromley High Street this Saturday morning, a light shower wetting the market stalls, sending shoppers scurrying for shelter. A long line of people pressed up against two sides of a corner shop in Market Square, extending out into the open. The final dozen places in the queue were unprotected from the rain, so clearly they were not just aiming to keep dry.
“Why are you queuing?” I asked the lady who joined the end of the line.
“That jewellery shop is closing down,” she said, implying that there would be bargains.
People who might not normally buy jewellery from that shop were lining up to pay less than the regular price. The original asking price is the starting point, so any discount represents a gain for the buyer, who considers the item’s value to be at least as much as the original price, and possibly higher.
We all have two prices in our heads for any item of value: the price we’d set if we were selling (the true value) and the price we’d be willing to pay (the tipping point). In a closing down sale, you get both, the tipping point price that gets your wallet out, and the verified true value, represented by the original price.
In business, the gap between the two prices is the added value. It can be an actual figure or a perception. The perception can be enhanced by adding more items of value. That’s why US sales letters pile on bonuses, each with a stated cash value (worth $750).
Now imagine your product or offering can be placed in one pan of a pair of scales. The other pan contains the amount of your client’s money represented by your price. Initially, the client will feel that his pile of money weighs more than your offering, so no deal.
Now add as much (perceived) value as you can to your pan. When your pan weighs more than his pile of money, he’ll be glad to make the exchange. Recently I bought a camera in Singapore. I was prepared to pay £500, but the salesman wanted me to pay a little more. Not much more, just enough to feel he’d pushed me beyond my self-imposed limit.
So he added an extra SIM card, then a spare battery, then a battery charger, and something else. We reached the tipping point. I said I wanted one more incentive, so he added a lightweight tripod. I bought the camera. Win-win.
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Debasing the currency of compassion
I was on a train to London in the middle of the afternoon when an attractive but slightly scruffy honey blonde came through from the next carriage. She placed a packet of facial tissues on the seat in front of me, together with a small printed note that read, “Please help. I have two children. Buying these tissues will help. God bless you.”
She walked the length of the carriage in silence, placing tissues and notes by every occupied seat, then turned and retrieved them on the way back. I gave her some money and she smiled, saying “God bless you” in an East European accent.
Alighting at Elephant and Castle, I noticed her ahead and followed. At the foot of the stairs she stopped to speak to a young brunette in their common language. I noticed they were both carrying similar bulging shoulder bags in which they had the packets of tissues.
The brunette went up to the platform I had just vacated, while the blonde carried on to the cafe in the shopping centre, presumably to tap the customers there. She left me with an unanswered question: was she genuine? It looked like a well thought out plan, smoothly executed. Admirable if both ladies were genuine. But no one likes being conned.
Inevitably I thought of the many money-raising activities attributed to the East European immigrants, from the aggressive windscreen washers (remember those?) to the baby-wielding beggars and the Rumanian prostitutes on Park Lane. I recalled also the young man who regularly addresses passengers on the Orpington train about his homelessness and refuses all help except hard cash.
Those activities have debased the currency of compassion. They do a disservice to those genuinely in need of help, creating a reflex of refusal and a hardening of hearts. Sad, that.
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Other cultures are different. Fact.
If you are doing business with people from other cultures, you need to understand (and accept) that they are different, they behave differently, their values and norms are not the same as yours. And that’s a fact.
Some years ago, a central African country obtained a large cash injection from the EU for a project that was never implemented. A couple of years later they applied to the EU again for aid for a different project.
On that occasion, the rotating Presidency of the EU rested with a certain northern European country, who asked the Africans, “Where is the money we gave you for the last project?” No answer.
The Africans repeated their appeal for aid, but made no reference to the previous grant. In frustration, the EU President said, “We are happy to give you the aid for the new project, but if you didn’t use the last grant, show us the money and we will top it up for the new project.” No answer.
The Europeans then closed down their diplomatic mission and pulled out of the African country. They saw things in black and white and could not understand why the Africans were unable to show them the money or explain where it was.
I was reminded of that incident when I sent a sum of money to India in support of a good cause. Even allowing for variable conversion rates, the sum that arrived was 15-20% lower than I expected. I asked for a paper trail, but nothing happened, but I gather that the money had travelled through two or three banks.
Pandit Nehru once said that cash transactions in India (as in government spending) were like passing a block of ice from hand to hand: it would inevitably be smaller on arrival than when it started out.
It is, of course, easy to condemn. However, I as explained in my book, “Communicating Across Cultures”, different nations have different values and different ways of doing things. In the book I defined culture as “the way we do things around here”. And, of course, each nation has its own way of doing things, which will often be very different from your own.
Accepting that is the way to cross-cultural understanding. It’s the starting point.
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Why make a speech?
Recently I attended the local Toastmasters Area and Evaluation contests. It was a revelation.
Almost all the speeches delivered that day were without purpose. Or, to be more precise, they had little relevance to, or value for, the assembled audience.
This is not intended as a criticism of the speakers, all of whom are at various levels of the learning process. They cannot know unless they are told what a speech is for.
Their speeches were either self-centred or simply narratives. In the evaluation contest, for example, a speech was delivered by an invited speaker who told a charming tale of her time in Japan. She told it well, and it was interesting, but it was not a speech.
In simple terms, the purpose of a speech should be to bring about Change — in the thinking, attitude or behaviour of the audience. What passes for speeches most often could better be described as an entertainment, a confession, or a declaration. If the audience thinks, “Why do I need to hear this?” or “How is this relevant to me?” it fails as a speech.
When I am training people in public speaking, I sometimes don a surgical mask and tell them how people in Tokyo may be seen in public places wearing similar masks — not to protect themselves from that city’s infamous smog, but because they have head colds or other infectious ailments. They wear the masks to protect others from their germs.
So my question is this: is your speech for your own benefit, or for the sake of others? That’s a good starting place for any speech. Or presentation.
Filed under: Presentations, public speaking, speaking
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10 Tips for dealing with business cards
Here are 10 tips that will be particularly handy when doing business with people from other countries and cultures.
1. Exchanging business cards should ALWAYS be done with respect and decorum, whichever country you are in. It is so easy to make a cultural gaffe.
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PRE-PACKAGING REMOVES CUSTOMER CHOICE
Everywhere you look these days there are special offers and incentives to buy more, through BOGOF and 3 for 2 offers. On the face of it, customers are getting good discount offers. But not always.
Two factors are working to shift the balance of power away from the one with the money (aka the customer) towards the one who needs the money (aka the trader).
Both factors are contained within the same retailing practice – pre-packaging. It actually reduces or removes customer choice.
For example, I wanted to buy a packet of cream crackers the other day. The only cream crackers available in the supermarket that day were in twin packets. I had to buy TWO packets, like it or not. It is the same story with a wide range of products. Retailers are seeking to increase the average order value.
Some offer genuine reductions if you buy multiple units, such as 4 six-packs of dog food for £10, but still allow you to buy single units.
Where I take issue with some supermarkets is when a pre-pack includes rubbish. Take large oranges. They are pretty expensive, and come pre-packed 4 in a net.
In my experience, a significantly high percentage of these nets will contain one orange that is past its best, and may even be uneatable. I then end up getting 3 for the price of 4, which is the very opposite of a discount offer.
It has happened so often that I believe the suppliers set aside the ‘bad’ or ‘old’ oranges and arrange for the packers to include one in every net. It gets rid of produce that would otherwise be wasted, and relies on some customers not complaining.
It’s the same principle as production line manufacture, such as cars. By setting a standard that is short of perfect, the manufacturer speeds up output and accepts that a calculated percentage of cars will be returned for repairs under warranty.
But when applied to fresh produce, it is cynical and similar to the sharp practice that got some street traders a bad name. And it removes from customers the right to pick and choose the fruit they want to buy.
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Over-exposure is a nuisance
On the timeline of one of my social media networks, one person has 30 (almost consecutive) posts, each with that person’s photograph. Another person has 11 such posts on the same page. Scrolling down the page I am faced with seemingly endless exposure to those two people.
My initial two reactions were (a) too much and (b) not the best choice of photos.
I’ve noticed a number of people adopting the strategy of multiple posts to bring themselves to the notice of their contacts. The fundamental weakness in this approach is that each post carries a link to a website elsewhere. Effectively they are saying, “Go somewhere else and read what someone else has written.”
But will that gain them the reputation as a source of interesting material? Hardly. Who has the time or the inclination to explore 30 suggested sites just to find an article of interest?
It actually diminishes the person’s credibility. He or she is seen as someone who is simply spraying out a random collection of links for the sake of attention. He or she has no obvious connection with the recommended articles. The term ‘content farmer’ springs to mind.
Let me now turn to the photographs. I’m not sure how some people choose their profile pics. Do they ever get feedback from trusted friends? Every headshot makes a statement – ask John Cassidy. There’s strong body language in the pose. And we are not always the best judges of our own photographs.
The two in question are OK as single images, which serve merely as identifiers. But when there are 11 or 30 of the same images in a row, you start to form an opinion about the people themselves. That’s when the choice of photo becomes relevant, and when it’s advisable to get feedback from trusted friends.
Once you alienate people through over-exposure of this kind, they will automatically dismiss anything you post in future. It’s overkill.
It amounts to being a nuisance.
Filed under: Blog Category, Marketing
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Long copy or short copy?
Depends on how you see it.
The debate in direct marketing circles is a long-standing and on-going one. Which works better – long letters or short ones? The answer may surprise you. It arises out of a significant shift in our reading habits.
I experienced it at first hand this week, when I found myself reading a number of blogs in a hurry.
I read them because they were discussions on topics that interested me, and had attracted quite a few comments from well-informed people. However, I struggled with them
The reason I found them hard going was this: the paragraphs were too long.
And there were too many paragraphs.
In some blogs, for example, the text is set in 10 point, with a line length of about 110 characters. That’s hard to skim read, and you have to move your head as you read each line. Too much work.
Easy on the eye
In contrast, some online sales letters from the USA run to many pages, but the paragraphs usually consist of a single sentence and are almost NEVER more than four lines long. The line length is short too.
Some paragraphs are one-liners like this.
They also have subheads like the one above, to segment the subject matter and break up the grey text.
Why that works
We all suffer from Attention Deficit. It may not be a Disorder (yet!) but it gets in the way when we are at work.
Every day, we are all assailed by huge numbers of messages and calls for our attention: radio, TV, emails, newspapers, magazines, advertisements, posters, tannoy announcements, traffic, phone calls, conversations, meetings …
We cannot cope with more than one thing at a time, so we have developed the ability to switch off. In fact, it’s a reflex that kicks in very quickly.
So what’s the answer?
The answer is to deliver your information in small bites. Like this blog. Make it easy for the reader to take in each new idea or piece of information, and it will increase your chances of being read all the way down the page. Page after page.
Filed under: copywriting, Direct Marketing, Marketing, Writing
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15 Top Tips for Public Speaking
It seems to me that the main reason why people get anxious about speaking in public is that they are not sure what is expected of them. If you have a speech or presentation to deliver, here are 15 tips to help dispel that anxiety by making sure you are well prepared.
These tips will help you feel confident that you know your stuff, and also that you know why and how it will be relevant to your audience.Tip 1: Imagine you are speaking just to me and answer this question: What do you want me to know?
Tip 2: Tell me why should I care about what you want me to know.
Tip 3: Why do I need to hear it from YOU? What’s your special connection with the message?
Tip 4: Would you pay to hear YOU speak? If not, why not?
Tip 5: Record your voice and ask yourself and some close friends if your voice is attractive. If not, make changes.
Tip 6: What’s your reason for speaking? Money? Influence? Ego? Passion? When you are clear about it you’ll be more focused.
Tip 7: When you have credible answers to tips 1-6, write your Core Message (the ‘carry away’) in a single sentence. That’s the message you should drive home when you speak.
Tip 8: Develop your message in 3 streams of argument or thought, e.g. Problem / Consequence / Solution.
Tip 9: Decide on your call to action. What do you want people to do when you have finished speaking?
Tip 10: Create an opening ‘Hook’ — something unexpected or dramatic that grabs attention right at the start.
Tip 11: Write out and learn your opening and closing paragraphs. Just use prompts for the rest, to sound more natural.
Tip 12: Decide on the ‘point of arrival’ or climax of your speech or presentation and build up the energy to that point. Your second ‘climax’ should be at the end.
Tip 13: Practise in front of a mirror or camcorder. Watch your gestures and body language.
Tip 14: When you are confident of your text, answer (aloud) the questions in Tips 1-3.
Tip 15: Unless you are in a speech contest, don’t try to give a world class performance. Just be sincere and passionate.
Filed under: Presentations, public speaking, speaking
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Aptitude tops the list
A well known triumvirate for success in business is Aptitude, Attitude and Altitude. According to a survey of UK executives from February to March 2013, talent management is far and away the most important corporate strategy. That places Aptitude at the top of the tree.
And yet, the same survey reveals, half the respondents said that their companies did not have a talent management strategy in place.