Business Black Belt
Include your price in your advertising
When I become interested in a product or service, the next thing I want to know is its cost. One school of thought is to not state your price in your advertising. The theory goes that customers will be curious and call or circle the number on the reader service (“bingo”) card. Then you have a chance to get in front of your customer and give them your pitch. As a customer, I’m seldom that curious. I’m more concerned that the price is indeed out of line, the seller is playing games or is holding out on me (what else aren’t they telling?). I’m a big boy, I expect to pay for what I get. The way I figure it:
The following ad from Lamborghini demonstrates they have no fear of the price of their automobile. Everyone knows it’s one of the most prestigious cars available in the world—the big question they answer is “What does it take to have one?” If they aren’t afraid of their price, why should you be afraid of yours?
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Business Black Belt
$2,999 a Month / $52,000 Down
I want one! The price actually gives me a goal to shoot for. On the other hand, a wealthy person may look at this ad and think, “Hey, I can afford that!” Until then, they may have only wondered in passing what it would take to have a Lamborghini and may have even been embarrassed to ask! (The people at Lamborghini request that you call for an update on price and financing.) Not printing your prices in an expensive color brochure makes practical sense if you will be changing your prices, making special offers, or using the brochure for resellers as well as end-user customers. At least, include a current price list somewhere along with the brochure.
A common pricing calculation mistake As long as we’re talking about pricing, let’s look at the math. You have several ways to price a product. You can base it either on cost or mark it up based on a target profit margin. (Remember that if you want to earn 30 percent on the selling price, you would divide your cost by .70 (1 – .30 = .70), not multiply your cost by 1.30. 175
Business Black Belt
conditioning for success. “Action” under these conditions comes with incredible force, very efficient use of energy, and precise targeting. That’s what it looks like to me four nights a week when I practice Tae Kwon Do. It’s far more than the punching and kicking, it’s the physical application of a philosophy. It seems to have direct applications in business. When your body and mind are so tuned, then your nerves are in excellent condition—something any well-prepared businessperson can use as much of as possible.
Application When we were negotiating with the purchasing and marketing managers of a large software retailer, one of their tactics was to ask us to increase our advertising allowance to $100,000—an amount they thought would generate sales of $1 million through their stores. This was great leverage of our advertising investment with this reseller. I felt like I was on the hot seat. When I’m sparring in Tae Kwon Do, I flow with an attack—it works for me—it worked for me here too. The merchandising manager was shocked when I responded with “OK, what if we committed to $200,000 in ad co-op, would you commit to $2 million in sales?” I was serious. I didn’t have the money at the time, but I had all year to get it. If they were so sure of the marketing programs they were pushing, this shouldn’t have been a problem. Now they were on the hot seat. We passed the test as a player in the business and they took us seriously as a vendor who would play ball. (We actually invested about $125,000 that year.) We continue to allocate 10% of our retail sales to retail marketing co-op programs. Sales have been skyrocketing ever since.
Why we sponsor karate for our employees Why not Jazzercise, horseback riding and other sports or activities? Here’s why: I’m interested in eliminating fear. The first step I’ve found is that by eliminating physical fear, it makes it much easier to eliminate other fears. Fear of what?
Trying new things Failure Making phone calls Approaching people Taking charge Speaking your mind Asking for an order
We need to move fast to take advantage of opportunities to build this business and these are crucial things that must be done every day with no unconscious hesitation. As an entrepreneur, this may seem obvious and painless to you, but the people you hire are not likely to be entrepreneurs and need a little assistance. I owe it to my vision to hire the right people who will support my vision. I will support education for any employee who wants to develop their skills in the direction of furthering the vision. I have a big vision and I need people with the skill and the nerve to accomplish it.
In your head and insecure There are those who accuse me of being out of my mind. In fact, by being in your mind (in your head), you miss much of the reality that is happening around you. I just don’t buy into most of the fears of others. So, if I don’t act afraid of the same things they are, I seem out of touch—with their reality. I’m just not afraid of many 98
