What’s YOUR why?
What’s your customer’s?
Fellow Business-Builder,
My driving passion is water and boats. I was born in the prairies and on the edge of the Rocky Mountains. We have a few lakes within a two-hour drive.
And yet, I am one of the statistics.
Calgary, land-locked as it is, is #3 in North America and #1 in Canada for boat sales per capita. So there are a LOT of us that have a passion to be on the water.
I took the plunge and bought my first boat in 2007. Rather than spending a fortune, I decided to buy used and learn my docking, towing and driving lessons on a boat that doesn’t care if I put a ding or two into it.
As soon as I bought it – my passion intensified and grew.
Rather than my typical one week vacation, I took three weeks – ALL on the water.
This year, another three weeks is planned.
To me, water is my way of rejuvenating the soul and experiencing true relaxation and freedom.
It is my true passion.
And it is driving me towards my dream faster than ever.
I want more water – more often – and I am busting my butt in business to experience it.
WHAT’S YOUR PASSION?
You must find it if you don’t know it.
It will empower you to attain your dreams faster.
It will keep you going in the bad times.
It will keep you motivated in the sluggish times.
It will keep your dreams alive and keep you on track to achieve your goals.
Without a driving passion, you become one of “the 95% group.” People without goals, dreams or ambitions. People who will retire dead broke. People who will constantly go through life whining about their circumstances and “bad luck.”
You’ve heard the stats about what goal setting does – so have you set yours?
Maybe your first goal right now – by the end of the day – is to list out 10 things you have always wanted more of. Once you have those 10 listed, rank them in order of personal passion to you. Which one of them (or two) feels the most empowering to you? Which one starts that weird feeling either in your gut (the intuition area), or in your heart? When you hit on the right one – you can FEEL your body change. You become more awake – more passionate – and more driven to actually experience it.
But, until you find your own driving passion – you will remain in the 95% group.
The choice is yours – find your passion and use it to live your dreams …
… Or bumble through life hoping and praying for the lottery winnings to come through so you can do something bigger and better (but you don’t know what because you have never taken the time to think it through).
Find your driving passion and everything will start happening MUCH FASTER.
I promise.
Make it your priority.
Speaking of priorities, here is some exceptional information that ties into this theme – information I hope you use …
Why do I love the Shuswap?
It’s a magical place that we usually visit once or twice a year for some R&R.
This time around, I have learned some very important lessons on how to deliver the true experience that people want to buy.
This is tourist country.
During the summer months, the quiet little roadside towns turn into bustling business metropolises that truly get how to deliver what people really want.
People here are incredibly friendly and helpful – as they should be! Their yearly incomes depend on the tourists that flood their towns for four or five months a year. If tourists stop coming … so does the money.
So how do you get people to gladly put out
thousands of dollars a day
for a distant memory?
The ski boat and Sea-Doo rental business is amazing.
People travel for hours to get here, have already invested hundreds or thousands in a cabin or condo – and as soon as they get here, their credit cards are whipped out and ready to spend a lot more money.
For only $500 per 8-hour shift you can rent a ski boat. Or $300 for a Sea-Doo.
There is no price shopping here for rentals … they all know what the going rate is – and they all stick to the ‘unwritten rule.’
Sea-Doos are harder to rent than boats – it seems many more people prefer the simplicity over versatility.
To me – I LOVE BOATS!!
There is no better feeling than to hit the open water in a powerful boat that can take you to whatever kind of experience you are looking for.
You can go skiing, boarding, tubing, cruising, shopping, people watching or beach hopping … the choice is yours … and they are all a great way to spend the day or week.
As I sit here writing this, there is a Cobalt Cruiser sitting docked not 50 feet from me – one of my FAVORITE boats.
The Cadillac or Mercedes of ski boats.
The one boat I have plastered on my wall in front of my desk … but I digress.
Now, what does all this have to do with you and growing your small business?
Let me walk you through a scenario I have seen take place day in and day out since I got here.
Customer “A” shows up in Armstrong. After their 8-hour trip with the kids in the car, they are tired, cranky, and ready to explode when any little thing happens that detracts from their holiday from here on.
They have already put out $1,000-$2,000 in the condo rental for the week.
Their kids are bouncing off the walls to get to the beach and swim.
And their kids last a few hours doing just that before the complaining starts …
… ”Let’s go jet skiing”
… ”I wanna go tubing like those kids”
… ”I’m bored, can we go somewhere else?”
… And the list of requests goes on.
So they decide it is time to get a rental … and off they go to the rental shop.
Remember, the people in these rental shops
run businesses just like you and I do …
They are MASTERS at the upsell though!
“So, you want a boat for the day … or for the week?”
“Do you want tubes … or would you prefer wake or knee boards?”
“How many lifejackets?”
“Have you driven a boat before?”
“Would you prefer a driver for the boat?”
“What type of boat is best for you? Are you skiing, cruising, or beach hopping?”
Next thing you know, old dad or mom in the rental shop is looking at another $2,500 to rent the ski boat (with all the water toys) and a jet ski for the week.
They just DOUBLED the amount
their vacation cost them
– and it only took 10 minutes listening
to the sales person’s ‘pitch.’
Not only that – this happens day in and day out for these rental operations in the high season. They have this down to a step-by-step system … asking a hundred questions and figuring out all the other options that their prospect needs to make for a memorable vacation.
Oh yeah – speaking of memories – they have that down pat too!
“Don’t forget – you should get some extra sunscreen (the water reflects the sun so you need more screen, you know) … you should get some waterproof disposable cameras so you don’t miss little Johnny’s first time on a tube … you may want some snorkels and fins to go explore the little cove over here … and don’t forget to buy all the ice, water, and cold beverages from our store next door – stock up now – you never know if you will find what you are looking for elsewhere.”
Whoops – there goes another $175!
This is an amazing thing to watch if you pay attention and note how it can apply to your own business.
There are ALWAYS ways to upsell your prospects
from one option to another.
You have to figure out what works best …
Maybe they, ideally, should be buying the middle of the line option rather than the entry level, which most people do.
Maybe they should be buying an upgraded warranty for better backend service or faster repair/trade-in upgrade.
Maybe they are better off buying in blocks of time, product quantity, or extra service levels.
Maybe they are better off buying in advance for the year ahead.
Maybe there is a whole-enchilada package that you should be offering them that has one of everything you sell?
Maybe they should join your membership club which gives them extra incentives, bonuses, and preferred client buyer points?
Yes, this DOES apply to your business – every single business in the world can (and should) offer upgrades or upsells.
- Perks for buying more and more often.
- Better levels of service or access to the experts.
- More one-on-one consulting time with those in the know.
- More exclusivity than others get.
- More privacy than others get.
- More bonuses.
- ‘Members-only’ lunches and get-togethers.
If you were to create a client pyramid – how are you escalating them up the pyramid to the top?
One thing has been proven over time in this area – 20% of your customers WILL want to move to the top – those 20% can easily double, triple – even quadruple your profits – all because you gave them what they want.
Your high end offering can be 10 TIMES the price
of your low end offers – 20% will buy it.
With money like that on the line – are you giving your upsell process the attention it deserves?
Right now – write out three or four options you could upsell to your new clients.
Write out an option for 50% more in price (and why it is a good choice for them to upgrade to), 100% more, even 1,000% more (with appropriate benefits to each).
Write out a script you can practice and use either via phone (if you take phone orders – or your team does) … via face-to-face meetings, or via the Internet.
Test the script and measure the results you see.
Try subtle changes in the script, the offer, how they are positioned, and the prices you are offering the upgrades at.
Find the optimal combination and make it the cornerstone of doing business with you and the total customer experience they take part in.
Master this process, like these rental operators have, and those slow months will be a thing of the past while you sit on all the extra money and profits you could ever ask for.
Upsells are a sure thing – but you have to ask for them – and you have to give them a good reason to buy in.
Hasta La Vista.
To your success,
Troy White
Editor, Small Business Mastery
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A Final Note:
If you have specific subjects you would like addressed, or have any comments on what you have seen here, please submit a comment below and I will see how I can help.
"A man to carry on a successful business
must have imagination.
He must see things as in a vision,
a dream of the whole thing.”
– Charles Schwab
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7 Comments »
Join the Discussion!
Let us know what you think. Or ask us anything. Or offer your own sage advice.
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Comment by Rick De Lima — August 1, 2008 @ 10:49 am
Hey Troy,
Great post as usual. It’s interesting how you point out things every entrepreneur and business owner should be aware of, yet so
many never do or even think about doing.
Keeping things simple is keeping things straight. I agree with you whole-heartedly about finding new ways to build your customer pyramid.
Upselling is key to long term business success. As you mentioned, 20% will buy whatever you have to offer. Price is no object for these loyal customers.
When you over-deliver…When you’ve satisfied their hunger for new and better products and service they’ll go out and spread the word for you. This will build you a solid reliable profit producing herd. And the profits could come in virtually forever.
Good stuff. And Happy boating.
Take care
Rick
Comment by Brian Duvall — August 1, 2008 @ 11:08 am
Hi, Troy.
Great reminder. Here’s a challenging question for you…
How do I apply these concepts to my non-profit organization?
We’re a multi-million dollar "business". Actually, we’re a food bank providing 70% of the food to more than 360 other non-profit feeding programs like the Red Cross, Salvation Army, YMCA, etc. They pay a small yearly "membership" type fee and then they provide a "shared maintenance contribution" to help offset the expense of acquiring 12 million pounds of food per year. We’re not actually selling them products. They are our service customers.
I work in fund-raising. How do I package our mission of feeding the poor so that donor prospects will want to donate bigger amounts and more often? I have no products to upsell them. It’s all about emotion and feeling good.
Any help is appreciated.
Thanks.
Brian
Comment by Travis Lee — August 1, 2008 @ 11:33 am
Great post Troy! I see this all too often myself (and I’m sure I’m guilty as well). Always offer an upsell or cross-sell. So many people will take it if you just ask. And guess what, if they say "no" you’re still where you are before you asked, with at least one sale!
Thanks again,
Travis
Comment by Mike — August 1, 2008 @ 12:00 pm
Excellent article."Noticing" the little details of how people buy things really pays off. I’m going to think on your article for a while, truly there are a lot of lessons in it.And Brian at the Food Bank–People have to believe that an organization is absolutely and undoubtedly the best place for thoroughly and completely helping people by making obvious differences in their lives. This ought to be shown in 52 different ways. Your organization is more than worthy. Donors shouldn’t give until it "hurts", but to give in order to really feel good. Not because of or through guilt, but because they want to give. And they want to give to the right organization. Your prospects need to see these qualities demonstrated again and again, in words and in pictures, in a respectful way…having them believe and having them imagine how good it feels to have given, to have been key to the wonderful results. Maybe something like the Wall Street Journal letter, two guys graduate at the same time, one excels, one doesn’t. Maybe a story about someone who gives a little versus someone who gives a lot more. Or a personal story of someone who never gave, then started, and really FELT the amazing difference that giving brings to ones life. It’s not the dollar amounts given, it’s knowing that flinging open your wallet or checkbook and giving what you can–feels great–so long as it’s flowing down the right channel.Perhaps you could tap a few of the top 20% of current donors to get their stories and then also get a few stories from those who give far less. (Maybe their stories are similar, maybe not) Ultimately indicating in your donation appeal letter that giving the most you can, feels best. And here’s why… (you give them the proof.)
Comment by Troy White — August 1, 2008 @ 1:04 pm
Great comments everyone!
Brian, the one thing I never understood about non-profits is why they don’t provide more updates about where their money is going. Some do - but most don’t.
I’ll start with a for-profit example that could easily be migrated to non-profits.
A while back I mentioned an interview I did with a 26 and 27 year old brother business team. They run a lobster fishing company with a very unique twist (they sell very expensive memberships instead of one-off lobster sales).
When a person becomes a member (think donates money), they get their lobster shipped to them when they want.
Here’s my point: WITH the lobster comes a DVD. They plop the dvd in and watch as their lobster fisherman gives them a personal update on their lobsters being caught, what it is like to be a lobster fisherman, what they love about it, why they love the company.
This is a HUGE differentiator for these guys. Their clients EAT THIS UP - and refer all their friends as well - their friends, in trun, come back with $3,000 check in hand wanting to be a part of this membership program.
Each lobster fisherman also keeps their own personal blog that they post to on a regular basis - and the customers love reading these too.
They develop a very personal relationship with their fisherman and it pays off in spades for the company.
Now, what it means to you – MORE updates about where the money is going. Personal videos from those that are getting help from your org. Case studies on who they are helping, and how the food is being divided. Not long ago, I took my daughters on a tour of the food bank in Calgary and I was fascinated with how it all worked. Why not do a video showing the people in your org. - how they work - what they do - how the food gets divided up - and their own personal stories.
Build more personality into your story. An org. like yours helps a lot of people through the tough times. Those that are donating need (and want) to know their money is going to people who really need it and are seeing the benefit.
So tell them. Show them. Help them (the donors) understand the story behing the people and where their money goes. Give them a GOOD STORY they can tell their friends. Have videos they can share with others (online works just fine) - get their friends excited about the way you share the stories of those in need, and those who are helping.
People love a good story. Especially when it comes to their money. Help them understand where their money is going and to who. Help them tell the story.
I think that will make a big difference in the number of people who donate, and the amounts they donate as well. You could even make it so certain levels of donation get certain benefits - more personalized communication and videos maybe?
Think it through.
A good story though will really help the numbers go up.
Troy
Comment by Glen Kohlenberg — August 1, 2008 @ 6:26 pm
Wow excellent post Troy! This is what I like about you always helping the little person. The food bank case study should take a lesson from feed the children TV commercials. They do excellent job showing where the donations are going and how just $12.00 a month can make the biggest difference.
I believe alot more donations are given because of the smaller amount. Everyone can afford $12.00 a month but I am sure they get more. So look at something that is already working and reach out from there.
Just telling there story like you say will help. Please leave there address here so we can help. I will make a donation in your name Troy because you give to us so much. Thanks
Comment by Jeremy Reeves — August 3, 2008 @ 11:09 am
Great post Troy
One question about the upsell.
Does it matter whether you start them off with a lower price then go to the higher price (foot in the door) or if you start off higher and go lower (can’t remember the name for that for some reason)?
Would that depend on the business, product, service, situation, etc.?
Jeremy
http://www.GetClientsIn20.com