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About the business: ProfitDriver, founded by Tim Kaelin, provides Business Coaching and Business Consulting to business owners and business professionals all across the country. About Tim Kaelin: Entrepreneur, Business Professional and Student, that enjoys hot coffee, a good haircut, dirty jokes and crunching numbers. var myvizurl = 'https://vizibility.com/timkaelin'; BlogTumblr (3.0; @profitdriver)http://blog.theprofitdriver.com/Coaching Your Brand: Part 4 - Culture<p><p class="MsoNormal">If you missed the Intro to the series, <a href="http://blog.theprofitdriver.com/post/4778332385/coaching-your-brand-5-part-series" target="_blank">click here</a></p> <p class="MsoNormal">How does the culture of the Patriots organization contribute to the Patriots brand?<span> </span>When you think of the Patriots, what is the first thing that pops into your mind?<span> </span><img alt="Bruschi is a ProfitDriver" src="http://boston.sportsthenandnow.com/wp/wp-content/uploads/2010/05/tedy-bruschi-3-time-champion.jpg" align="left" height="178" width="231"/>Super Bowls, Brady, Belichick, Dynasty, Winning.<span> </span>Winning, that is the culture of the Patriots organization.<span> </span>Other teams and players in the NFL know this.<span> </span>Players sign with the Patriots because they want to win and they know that they will win when the play for the Patriots.<span> </span>Refer back to the part in this series on <a href="http://blog.theprofitdriver.com/post/5143187745/coaching-your-brand-part-2-employees" target="_blank">Employees</a>, the culture of the Patriots feeds the need for top talent.</p> <p class="MsoNormal">How does the culture of your organization contribute to your brand?<span> </span>When people think of your company, what is the first thing that pops into their mind?<span> </span>Implementing the right culture can be challenging, changing the culture is often difficult.<span> </span></p> <p class="MsoNormal">As a small business grows, changing the culture is often part of the <img alt="Zuckerberg is a ProfitDriver" src="http://www.notarealthing.com/wp-content/uploads/2010/11/social_network_heisler.png" align="right" height="128" width="180"/>company’s growing pains.<span> </span>I think of a scene from the movie The Social Network when Facebook is hiring new employees to come out to California and Zuckerberg oversees a hacking challenge/drinking contest to see who gets the job.<span> </span>Do you think they still do that at Facebook today?<span> </span>Probably not and that is an example of the shift in the culture at Facebook.</p> <p class="MsoNormal">As a small business coach and consultant, I help owners conceptualize the culture they want for their business and help them explore the internal and external impacts that their culture has.<span> </span></p> <p class="MsoNormal"><span>The Patriots culture revolves around winning, how about yours?<br/></span></p> <p class="MsoNormal"><span> </span><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/5393641843http://blog.theprofitdriver.com/post/5393641843Wed, 11 May 2011 12:49:02 -0400Coaching Your Brand: Part 3 - Resources<p><p class="MsoNormal">If you missed the Intro to the series, <a href="http://blog.theprofitdriver.com/post/4778332385/coaching-your-brand-5-part-series" target="_blank">click here</a></p> <p class="MsoNormal">I remember going to my first Patriots game when I was around 10 years old.<span> </span>Back then the Pats didn’t play in Gillette Stadium, they played in Sullivan Stadium and the experience was quite a bit different than it is now.<span> </span></p> <p class="MsoNormal">My first game was against Miami and it was in December, so we go into the concrete bowl that was Sullivan Stadium and take our seats on one of the long, frozen metal benches that filled the stadium (same as the field at my High School).<span> </span>At the end of <span> </span>the FIRST QUARTER the two guys sitting in front of us <span> </span>get in a drunken brawl, but no security comes and the guys fight for a good 5 to 10 minutes.<span> </span></p> <p class="MsoNormal">When they were done p<img alt="Sullivan Stadium is a ProfitDriver" src="http://www.stadiumpostcards.com/catalog/GRB-777.jpg" align="right" height="193" width="300"/>ounding on each other, they sit back down and continue drinking the giant bottle of Jack Daniels that they had brought into the stadium.<span> </span>This was accepted and expected behavior when you went to a game.<span> </span>It wasn’t the best experience for your paying customers and attendance was pathetic.</p> <p class="MsoNormal">The players had to deal with the same debilitated facilities and resources.<span> </span>The Pats had no practice facility, the weight room was non-existent and the medical staff was a joke.<span> </span>It was so bad that players wouldn’t play for the Patriots.</p> <p class="MsoNormal">How are you supposed to attract both customers and employees when your resources and facilities are so far below average that it is a risk to their health?</p> <p class="MsoNormal">Look at what Kraft did to change that.<span> </span>Gillette Stadium is a state of the art facility that caters to the customers and the experience they have during the <img alt="Gillette Stadium is a ProfitDriver" src="http://a.espncdn.com/photo/2011/0116/bos_a_gillettestadium_576.jpg" align="left" height="173" width="276"/>game.<span> </span>The players also have state of the art facilities, equipment, medical professionals, etc so that the players can deliver the best possible product on the field.<span> </span>Because of this there is a long, long waiting list for season tickets and players now take LESS MONEY to come play for the Patriots.<span> </span>It really is an unbelievable transformation in a relatively short amount of time.<span> </span></p> <p class="MsoNormal">As I mentioned in the intro to this series, Kraft paid 175 million dollars for the Patriots, today the Patriots are valued over 1 billion.<span> </span>Do you think this transformation has anything to do with the almost 500% increase in value?</p> <p class="MsoNormal">How are you using your resources?<span> </span>Do you use your resources to improve the experience that your customers have with your company?<span> </span>Do you use them to attract the absolute best talent?<span> </span>If not, why?<span> </span>How can you use your resources as a competitive advantage in the market place, like the Pats do with free agents?<span> </span>What is more important than the experience your customers have with your company?</p> <p class="MsoNormal">During coaching sessions I discuss these with clients, help them develop answers that best fit their business and then work with them to implement the solutions.<span> </span>In the end what you get is a more satisfied customer, a strong team of employees and a more valuable business.</p> <p class="MsoNormal">I’ll give you a simple example.<span> </span>A recent article in the Investor’s Business Daily was about customer service and how “many businesses have slashed human interaction…to reduce cost”.<span> </span>How did they do this?<span> </span>Offshore call centers.<span> </span>These offshore call centers are one of the drivers for customer complaints, yet companies still use them.<span> </span>The companies that have listened to their customers, invested their resources in US based call centers, have seen a steep decline in complaints and use their customer service as a competitive advantage.</p> <p class="MsoNormal">They listened to their customers, use their resources to address a major complaint, developed a competitive advantage and now these companies are more valuable to customers, employees and investors.<span> </span>Now, ask yourself, “Where are my resources being used?”</p> <p class="MsoNormal"> <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/5197580119http://blog.theprofitdriver.com/post/5197580119Wed, 04 May 2011 16:53:45 -0400Coaching Your Brand: Part 2 - Employees<p><p class="MsoNormal">If you missed the Intro to the series, <a href="http://blog.theprofitdriver.com/post/4778332385/coaching-your-brand-5-part-series" target="_blank">click here</a></p> <p class="MsoNormal">One of the most r<img src="http://www.boston.com/sports/football/patriots/extra_points/p1_sportsman.jpg" alt="Brady is a ProfitDriver" align="left" height="321" width="247"/>epeated phrases you’ll hear when people talk about quarterbacks is “the face of the franchise”.<span> </span>Tom Brady is clearly the face of the Patriots franchise.<span> </span>While Tom Brady is an employee of the Patriots (the most valuable employee, but still just an employee), he clearly encapsulates the values that Kraft has set for the entire organization.<span> </span>Because Brady perfectly represents the Patriots, each time he goes to work, whether it is on the field, in interviews, or public appearances, Brady always adds value to the Patriots brand because fans (customers) and advertisers see the Patriots values in action.<span> </span>Many of the Patriots players fit this mold and those that do not are usually not with the team very long.<span> </span></p> <p class="MsoNormal">Who’s the face of your franchise?<span> </span>The face of your franchise is each employee who interacts with people outside your organization, whether it is customers, vendors or competitors.<span> </span>If your customers have a difficult time dealing with one of your employees, that is what your customers will associate with your brand.<span> </span>But the reverse is also true.<span> </span>Let me give you an example.<span> </span>One of the co<img src="http://www.bruguru.com/Tremont_Winter.jpg" alt="Tremont is a ProfitDriver" align="right" height="247" width="267"/>mpanies that I was fortunate to help build was a brewery called Tremont.<span> </span>A large portion of our customers were restaurants and pubs in Boston that were either owned or managed by people from Ireland.<span> </span>What we did at Tremont was have interns from Irish universities come and work as customer service reps so each time a pub owner called they heard an Irish accent on the other end of the phone.<span> </span>Was our brand Irish? No, but our customers were and “the face of our franchise” was too. By enhancing the experience that our customers had when they called the brewery greatly increased the value of our brand to our customers.<span> </span>How can you improve the experience that customers have with your brand?</p> <p class="MsoNormal">One of the best pieces of advice I’ve read about matching employees to company values was about the rules that companies have in place to control employee’s behavior.<span> </span>If you have rigid rules that dictate how employees are to behave, then you are hiring the wrong people for your company. If you hire the right people, you won’t need rigid rules, you’ll need loose guidelines which help employees make good decisions.<span> </span>When you hire the right employees, you trust them to make the best decision for the company. If you don’t trust them, why did you hire them?</p> <p class="MsoNormal">Employees are an integral part of your brand image and they are the face of your franchise.</p> <p class="MsoNormal"> <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" href="http://www.theprofitdriver.com/" target="_blank">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/5143187745http://blog.theprofitdriver.com/post/5143187745Mon, 02 May 2011 18:29:00 -0400Coaching Your Brand: Part 1- Management<p class="MsoNormal">If you missed the Intro to the series, <a href="http://blog.theprofitdriver.com/post/4778332385/coaching-your-brand-5-part-series" target="_blank">click here</a></p> <p class="MsoNormal">How do you implement your vision and values throughout your company? By hiring and promoting the correct management team who share and can implement your vision and values.</p> <p class="MsoNormal">Kraft found the peop<img align="left" width="264" src="http://gridironfans.com/forums/attachments/latest-nfl-headlines/20089d1303003695-bill-parcells-drew-bledsoe-up-patriots-hall-drewbill122.jpg" alt="Parcells is a ProfitDriver" height="190"/>le who would give his brand credibility and the people who would best implement his vision.<span> </span>Kraft also let go the people who didn’t fit his vision.<span> </span>It started with Bill Parcells.<span> </span>Parcells is a Hall of Fame coach who brought instant credibility to the organization.<span> </span>Parcells began implementing Kraft’s vision of the Patriots being looked at as the hardest working football organization in the NFL.<span> </span>After Parcells, Kraft hired Pete Carroll.<span> </span>Carroll did not live up to “the Patriot way” and after 4 seasons Kraft recognized the misstep and let go of Carroll. This opened the door for Kraft’s most successful hire, Bill Belichick.<span> </span>Belichick is considered a lock for the Hall of Fame, but not so when Kraft hired him.</p> <p class="MsoNormal">When Kraft hired Belichick, Kraft was widely criticized.<span> </span>Belichick’s only other head coaching experience was in Cleveland and it was a disaster ending with Belichick being fired.<span> </span>Kraft looked beyond this, had confidence that Belichick wo<img align="right" width="195" src="http://www.bostonsportspulse.com/wp-content/uploads/2010/12/01-Bill-Belichick.jpg" alt="Belichick is a ProfitDriver" height="176"/>uld learn from his experience in Cleveland and named Belichick head coach in 2000.<span> </span>Belichick’s success on the field is well known, but off the field, from a brand/business standpoint, Belichick’s role has been equally important.</p> <p class="MsoNormal">Belichick’s philosophy of “just do your job” mirror’s Kraft’s vision of the Patriots being the hardest working organization in the NFL.<span> </span>Even more important is Kraft has given Belichick the authority to run the team and the organization on a day to day basis.<span> </span>In other words, Kraft does not micro-manage, he hires the right people for the right jobs and then lets them do their jobs.</p> <p class="MsoNormal">Let’s translate this to your business.<span> </span>First, what is your vision for your business?<span> </span>What do you want people to think when they hear your company’s name?<span> </span>This first step is critical, without it is like trying to drive a car without a steering wheel.<span> </span>This is an area that I spend a good amount of time on with clients because a clear vision will help guide your strategic decisions.<span> </span></p> <p class="MsoNormal">Second, hire leaders who embrace your vision and will take your company to the next level.<span> </span>I know, I know, simpler said than done. Two ways to find leaders is through internal promotions or external hiring.</p> <p class="MsoNormal">The Patriots hired externally, first with Parcells.<span> </span>This is one possibility for your business, hire someone who is a well respected in your industry and adds value through his or her reputation.<span> </span>However, if this person is not a fit, you should act quickly and make a change. </p> <p class="MsoNormal">Another avenue is to promote from within.<span> </span>Some businesses prefer this route because you can train employees on how your business operates and develop them into leaders.<span> </span>Belichick prefers this method.<span> </span>He promotes coaches up the ranks because those coaches have been trained on how to do things “the Patriot way”.</p> <p class="MsoNormal">Both methods are effective, just be thorough in your hiring process and hire the person who is the best fit for your organization.</p> <p class="MsoNormal">Next segment on Employees will be available on Monday 4/25</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/4809747002http://blog.theprofitdriver.com/post/4809747002Thu, 21 Apr 2011 13:12:00 -0400Coaching Your Brand: 5 Part Series<p class="MsoNormal">I’m a football fan and my favorite football day of the year is quickly approaching, the NFL Draft.<span> </span>What does this have to do with your brand? I was watching some draft coverage this weekend and the draft analysts (what a job!) kept referring to “the Patriot way”, even when they were talking about other teams.<span> </span>When the analysts said “the Patriot way” football fans, coaches, players, etc. all know what they mean because of the way the Patriots organization has built the Patriot brand.<span> </span>In this 5 part series we will look at what Robert Kraft, owner of the Patriots, did to build the Patriots brand and how you can apply those strategies to your business.</p> <p class="MsoNormal">If you do not know about the history of the Patriots, here is a quick synopsis.<span> </span>Robert Kraft bought the Patriots in 1994 for $175 million, at the time the most ever paid for an NFL franchise.<span> </span>When Kraft bought the Patriots, t<img alt="Kraft is a ProfitDriver" src="http://images.forbes.com/media/2009/09/02/0902_Robert-Kraft_400x280.jpg" align="right" height="187" width="268"/>he Patriots were not only the worst team in the NFL, but they were an embarrassment off the field, with drug troubles and allegations of sexual misconduct towards female reporters.<span> </span>All of these contributed to the Patriots being the least valuable franchise in the NFL.<span> </span>So why did Kraft purchase the team for a record sum?</p> <p class="MsoNormal">As an outsider looking in I would argue that Kraft had a passion and a vision for the Patriots and he was extremely confident in his abilities to turn his passion and vision into reality.</p> <p class="MsoNormal">At the core of the Patriots success has been the Patriots brand and what that brand means.<span> </span>Let’s look at 5 ways that Kraft built the Patriots brand to align with his vision and passion and how these can be applied to YOUR business.</p> <p class="MsoNormal">Part 1 on 4/21/11</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/4778332385http://blog.theprofitdriver.com/post/4778332385Wed, 20 Apr 2011 11:50:38 -0400Video<iframe width="400" height="243" src="http://www.youtube.com/embed/wg7fQKVL5gs?wmode=transparent&autohide=1&egm=0&hd=1&iv_load_policy=3&modestbranding=1&rel=0&showinfo=0&showsearch=0" frameborder="0" allowfullscreen></iframe><br/><br/>http://blog.theprofitdriver.com/post/3903722133http://blog.theprofitdriver.com/post/3903722133Wed, 16 Mar 2011 16:00:08 -0400Exceed Expectations<p><p class="MsoNormal">On a scale of 1 (worst) to 10 (best), how do you rank your company’s customer service?<span> </span>How many of you answered 10?<span> </span>How many of you know, deep in your gut, that it is not a 10?<span> </span>How many of you exceed your customer’s expectations?</p> <p class="MsoNormal">On a scale of 1 to 10, your minimum customer service goal should start at 11 and go up from there.<span> </span>Most customers EXPECT a 10 when it comes to customer service, you need to exceed that.<span> </span>Meeting your customer’s expectations cannot be your goal, exceeding your customers expectations is necessary.</p> <p class="MsoNormal">How do you know what your customer’s expectations are?<span> </span>One simple way to find out is to simply ask them.<span> </span>If I walked into the coffee shop next to my office and they asked me what my expectations are when I get my coffee, it would be simple, smile, ask me how I’m doing, and keep the line moving so I can get in and out quickly.<span> </span>Those are my base expectations, or a 10 on the customer service scale.<span> </span>What can they do to exceed that?</p> <p class="MsoNormal">I’d like to share a recent terrific customer service experience I had.<span> </span>I needed to have a couple diplomas plaqued so I called a trophy shop, <a href="http://www.embassytrophy.com/" target="_blank">Embassy Trophy</a>, that I’ve been to a few times before.<span> </span>I called on a Thursday around 2 and talked to Larry, the owner.<span> </span>I couldn’t make it to the shop when they were open, so Larry asked if I could <img align="right" width="271" src="http://o2.aolcdn.com/dims-shared/dims3/PATCH/resize/273x203/http://hss-prod.hss.aol.com/hss/storage/patch/1fc742073247eced73a0ca447040eb81" alt="Embassy Trophy" height="203"/>drop the diplomas off at his house on Saturday (shop is only open M-F) and he gave me his HOME address.<span> </span>Saturday morning I went over to Larry’s house, rang his door bell, he answered and APOLOGIZED for the inconvenience (he lives 2 minutes from the shop). <span> </span>It gets better.<span> </span>2 weeks later when the diplomas were ready to be picked up, Larry called me and told me that he would leave the diplomas on his front porch so that I could pick them up on Saturday and for me to leave my business card in his mail box so he could send me an invoice.<span> </span>He remembered that I couldn’t make it during the week and took it upon himself to fix this before I even brought it up.</p> <p class="MsoNormal">This, to me, is a 15 on the customer service scale.<span> </span>Here’s the power of customer service that exceeds expectations, I will go to Embassy Trophy every time and I will not shop for a better deal.<span> </span>To me, Larry showed me he values me as a customer by exceeding my expectations, and now, I <em>like </em>giving Larry business.<span> </span><span> </span></p> <p class="MsoNormal">What can you and your business do to exceed your customer’s expectations so that they <em>enjoy</em> the experience of doing business with you?</p></p>http://blog.theprofitdriver.com/post/3625197963http://blog.theprofitdriver.com/post/3625197963Thu, 03 Mar 2011 16:00:27 -0500Pricing Power<p class="MsoNormal">I recently read a blog post from <a title="Seth Godin ProfitDriver" target="_blank" href="http://en.wikipedia.org/wiki/Seth_Godin">Seth Godin</a> (author of <a href="http://www.amazon.com/Purple-Cow-New-Transform-Remarkable--/dp/1591843170/ref=sr_1_4?ie=UTF8&qid=1298569603&sr=8-4" target="_blank">The Purple Cow</a>) titled <a href="http://sethgodin.typepad.com/seths_blog/2011/02/on-pricing-power.html" target="_blank">On Pricing Power</a> .<span> </span>In his post, he talks about pricing, specifically not being paid what you are worth.<span> </span></p> <p class="MsoNormal">Godin makes a few good points.<span> </span>He says <img alt="Purple ProfitDriver" src="http://ecx.images-amazon.com/images/I/51KdD8DUWSL._BO2,204,203,200_PIsitb-sticker-arrow-click,TopRight,35,-76_AA300_SH20_OU01_.jpg" align="left" height="201" width="201"/></p> <p class="MsoNormal">“Cheaper is the last refuge of the marketer unable to invent a better product or tell a better story.”</p> <p class="MsoNormal">Yes!<span> </span>I have had this conversation with clients many times.<span> </span>If the only way you and your business can compete is on price, close your doors because it is a battle you cannot win.<span> </span>There will always be someone willing to do it cheaper, and even some who are willing to do it free. H&R Block will do your taxes for free…you get what you pay for, but it shows that you can get almost anything for free.</p> <p class="MsoNormal">Godin also says</p> <p class="MsoNormal">“The goal, no matter what you sell, is to be seen as irreplaceable, essential and priceless.”</p> <p class="MsoNormal">I agree, but I think the most important thing about your price is it needs to reflect the VALUE that your product or service adds.<span> </span>For example, you are putting an addition onto your home, you get two quotes from General Contractors you have never met, one quote is for $15,000 the other is for $800, which are you going to accept?<span> </span></p> <p class="MsoNormal">The part of Godin’s post that I <strong><em><u>REALLY </u></em></strong>disagree with is:</p> <p class="MsoNormal">“A cheaper substitute might mean buying nothing.<span> </span>Personal coaches, for example, usually sell against this alternative.<span> </span>It’s not a matter of finding a <em>cheaper</em> coach, it’s more about having no coach at all.<span> </span>Same with live music.<span> </span>People don’t go to cheaper concerts, they just don’t value the concert enough to go at all.”</p> <p class="MsoNormal">A cheaper substitute is ALWAYS to buy nothing, no matter what you are thinking of buying.<span> </span>If I wanted to buy a book, say one titled after a colored farm animal, my choices are to buy that book or to buy nothing.<span> </span>I don’t find a cheaper book titled after colored farm animals, I just don’t value books about colored farm animals enough to buy them.<span> </span></p> <p class="MsoNormal">Everyone sells against the buy nothing alternative.<span> </span>You could buy a Ferrari and drive or you could buy nothing and walk.<span> </span>You could hire an accountant or you could do your own taxes.<span> </span>In the insurance industry, the buy nothing alternative is known as “self-insured”. Buying nothing is an option in every single purchase that every single person has made and ever will make.<span> </span></p> <p class="MsoNormal">Price based on the value that your service and/or product provides to the customer.<span> </span>Now, the hard part is finding what that value is.</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/3489038101http://blog.theprofitdriver.com/post/3489038101Thu, 24 Feb 2011 16:29:52 -0500Negotiate Value<p><p class="MsoNormal">How often do you negotiate?<span> </span>I bet it is more often than you think.<span> </span>Negotiating happens every day and in every facet of life.<span> </span>Most people associate negotiating with price.<span> </span>How much can I get the other party to come down on price (or how much can I get the other party to pay)? While getting a good deal in your eyes may make you feel good, this type of negotiating can leave a better deal for both parties on the table.</p> <p class="MsoNormal">Instead of negotiating price, negotiate VALUE.<span> </span>Look at the negotiations as if you <img alt="ProfitDriver Negotiate" src="http://www.parabolicarc.com/wp-content/uploads/2009/07/putin-perm_10_07.jpg" align="right" height="175" width="275"/>have already agreed on a price. What else of value can each party add?<span> </span>Maybe price is very important to one party, but delivery time is important to the other.<span> </span>In this scenario, negotiations can be based on “I can sell you this for $2, but I can’t deliver it for 3 weeks, but at $2.50, I can special order it and rush ship it for $3”.<span> </span>One party gets price, the other party gets quick turnaround.</p> <p class="MsoNormal">In order to negotiate value it is critical to understand your opponent’s needs.<span> </span>Do not assume you know what their needs are, do some research.<span> </span>How has their business been performing?<span> </span>Are they strapped for cash?<span> </span>Who is the decision maker?<span> </span>What is the decision maker’s reputation?<span> </span></p> <p class="MsoNormal">Another effective way to gain an insight into the needs of the other party is to role-play with a partner.<span> </span>Have the partner play devil’s advocate and have them focus on the other side’s possible interests.</p> <p class="MsoNormal">Also consider this when you are negotiating inside your business with employees.<span> </span>I think most people assume that salary in the most important thing to employees.<span> </span>What if it isn’t?<span> </span>What if education, or career advancement, or benefits, or 401(k) matching, etc are just as important as salary to an employee?<span> </span>Think of the employee’s needs and negotiate on meeting those needs.</p> <p class="MsoNormal">Helping people prepare and improve their negotiating skills is part of my consulting and coaching services.<span> </span>In a small business, effective negotiating skills can be an enormously beneficial tool that can help business owners not only add value to their business, but also add value to their clients businesses.</p> <p class="MsoNormal">Are you negotiating value?</p> <p class="MsoNormal"><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/3326270594http://blog.theprofitdriver.com/post/3326270594Wed, 16 Feb 2011 08:10:54 -0500All Publicity Is Good Publicity…Unless You’re Groupon<p class="MsoNormal">I’ve mentioned before that I am not the biggest fan of Groupon.<span> </span>As a consumer, I love them. Why should I ever pay full price for anything ever again?<span> </span>For business owners, I think Groupon is a terrible idea.<span> </span></p> <p class="MsoNormal">Quick example – I got a Groupon email that <a href="http://www.redbones.com/" target="_blank">Redbones</a> was offering 50% off your check – to 10,000 people!<span> </span>I love Redbones, some of the best BBQ I’ve had, they have an outstanding beer selection, and the restaurant has a cool atmosphere.<span> </span>Every time I’ve been to Redbones there has been a line.<span> </span>Why are they giving 50% coupons to 10,000 people when their restaurant is packed almost all the time?<span> </span>And who is going to use the Groupon?<span> </span>I’m guessing people (like me) who already go and love Redbones.<span> </span>Groupon makes me angry.<span> </span>Why would you do this Redbones??</p> <p class="MsoNormal">But karma has a way of coming back and it came back hard on Groupon. In case you missed it, Groupon aired a few commercials during the Super Bowl that have caused quite a bit of outrage out there on the internet.<span> </span>The Groupon ad below makes fun of saving whales (Do you think Cuba was screaming “Show me the money!” when he filmed this?).<span> </span>They had another one that made fun of the atrocities taking place in Tibet.</p> <p> <object height="349" width="560"> <param name="movie" value="http://www.youtube.com/v/fboyGZm_IdM?fs=1&hl=en_US&rel=0"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/fboyGZm_IdM?fs=1&hl=en_US&rel=0" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" height="349" width="560"></embed></object> </p> <p class="MsoNormal">Are they offensive?<span> </span>That’s up to you.<span> </span>Are they funny?<span> </span>Not in the least. <span> </span>Are people angry?<span> </span>Absolutely.<span> </span>You would think that a company that was just valued at $10 Billion would have a shred of common sense.<span> </span>Or a couple of focus groups to test the ads on.<span> </span></p> <p class="MsoNormal">While the Groupon ads weren’t funny, Conan’s spoofs were.</p> <p> <object classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" id="ep" height="375" width="442"> <param name="allowfullscreen" value="true"><param name="allowscriptaccess" value="always"><param name="movie" value="http://i.cdn.turner.com/tegwebapps/tbs/tbs-www/cvp/teamcoco_432x243_embed.swf?context=teamcoco_embed_offsite&videoId=243533"><param name="bgcolor" value="#000000"><embed src="http://i.cdn.turner.com/tegwebapps/tbs/tbs-www/cvp/teamcoco_432x243_embed.swf?context=teamcoco_embed_offsite&videoId=243533" type="application/x-shockwave-flash" allowfullscreen="true" allowscriptaccess="always" height="375" width="442"></embed></object> </p>http://blog.theprofitdriver.com/post/3234177542http://blog.theprofitdriver.com/post/3234177542Fri, 11 Feb 2011 10:00:07 -0500Opportunity Cost <p><p class="MsoNormal">How much is your time worth?<span> </span>$10 per hour?<span> </span>$50? $500? For a business owner, this is a critical figure to know.<span> </span>When you know what your time is worth you are able to calculate how much time-consuming activities cost you in terms of dollars and cents.<span> </span></p> <p class="MsoNormal">Here are two ways to calculate:</p> <p class="MsoNormal">1. Replacement Cost:</p> <p class="MsoNormal">How much would it cost in salary, taxes and benefits per year to hire someone to replace you?<span> </span>Take that salary, divided it 2,000 (50 weeks x 40 hours = 2,000) and this will give you an hourly rate.<span> </span>Then take that hourly rate and double it (you’re not looking to break-even on this new employee, you need to make some money)</p> <p class="MsoNormal">For example:<span> </span>To pay someone to do your job would cost $100,000 in salary, $12,000 in taxes, and $20,000 in benefits for a grand total of $132,000.<span> </span>$132,000 divided by 2,000 = $66.00 per hour x 2 = $132 per hour is a fair estimate of your hourly rate</p> <p class="MsoNormal">2. Your target salary</p> <p class="MsoNormal">How much do you WANT to make per year?<span> </span>As a business owner, you are in direct control of this.<span> </span>Whatever you WANT to make, you are capable of achieving it.<span> </span>Do not shake your head, yes you are.</p> <p class="MsoNormal">For example, say you WANT to make $300,000.<span> </span>Simply divide $300,000 by 2,000 = $150 per hour.</p> <p class="MsoNormal"> <img align="left" width="222" src="http://images.huffingtonpost.com/gen/76405/thumbs/s-SUMMERS-SLEEPING-large.jpg" alt="ProfitDriver Opportunity Cost" height="163"/>Now you have some perspective on how much your time is worth.<span> </span>Next time you’re questioning whether you should attend a seminar, sit in a meeting, go on a sales call, or any other time consuming activity, you can ask yourself “Would I pay $150 per hour to do this?” Because if you do go, that is what you are paying.</p> <p class="MsoNormal">You can also use this information to delegate responsibilities.<span> </span>You can use your time, which you value at $150 per hour, or you can delegate it to someone who you are paying $25 an hour.<span> </span>This allows you to focus your time on activities that justify a cost of $150 an hour.</p> <p class="MsoNormal">I use this concept for myself, and I add an additional 25% onto my calculated hourly rate.<span> </span>I do this because not only do I want to cover my cost, I want to get additional value out of activities that consume my time.</p> <p class="MsoNormal">This is an example of a coaching exercise I use to help business owners look at their business with a different perspective. With this different perspective, I hope you have a tangible feel for the cost of your time.</p> <p class="MsoNormal">So I ask again, how much is your time worth? </p></p>http://blog.theprofitdriver.com/post/3206885970http://blog.theprofitdriver.com/post/3206885970Wed, 09 Feb 2011 19:13:00 -0500SundayDriver<p><p class="MsoNormal">Each Friday I’ll be posting something not related to business and coaching, I’ll be writing about the hot topic of week.<span> </span>Topics like “What did Steven Tyler say on American Idol?” <span> </span>The things that <strong><em>really</em></strong> keep us up at night.</p> <p class="MsoNormal">This week’s topic:<span> </span>Super Bowl Sunday</p> <p class="MsoNormal">The Packers will win 31-28.<span> </span>Why?<span> </span>BJ Raji.<span> </span>Seriously, he could be Super Bowl <img alt="SundayDriver" src="http://t2.gstatic.com/images?q=tbn:ANd9GcRD7nmy0s0bDxiW8QPE2_GEik-DjhXOpTdEZ2qf_BJILtp3PicVWQ" align="right" height="268" width="188"/>MVP.<span> </span>Vegas has him at 35-1 to win.<span> </span>Tempting….</p> <p class="MsoNormal">Papa John’s will give away a free pizza to everyone in America if the game goes into overtime.<span> </span>I hope for the sake of America’s health that the Packers win in regulation.</p> <p class="MsoNormal">The Black Eyed Peas will be performing at halftime.<span> </span>Is this the best the NFL can do?<span> </span>The NFL is a multi-billion dollar corporation and all they can get is the Blacked Eyed Peas?<span> </span>I don’t get it.<span> </span>What, was <a href="http://www.nkotbsb.com/" target="_blank">NKOTBSB</a> booked?<span> </span>Just so they don’t kill the suspense, the Peas are keeping their set list a secret.<span> </span>I think their set list is in the same vault as the recipe for the Colonel’s fried chicken.<span> </span>It’s a vault that nobody wants to break into.</p> <p class="MsoNormal">I read in the Wall Street Journal that there will be around 34.9 million Super Bowl parties on Sunday.<span> </span>I’m guessing you’ll be at one of them – have fun, don’t drive, and vote for BJ Raji as MVP.</p></p>http://blog.theprofitdriver.com/post/3107146248http://blog.theprofitdriver.com/post/3107146248Fri, 04 Feb 2011 12:54:36 -0500Coaching doesn’t come in a can<p><p class="MsoNormal">In small business I think it is important to have an enemy, the Goliath to your David.<span> </span>Goliath is a competitor (usually much bigger with many more resources<img align="right" width="258" src="http://www.creativeroots.org/wp-content/uploads/2009/06/tiananmen-square-protesto-001.jpg" alt="David and Goliath" height="146"/>) but is the polar opposite of what your business stands for.<span> </span><span> </span>For example, for years (maybe decades) Apple (open, fun) was David and Microsoft (ridged) was Goliath, now those roles might be reversed.<span> </span>When I was at Tremont Brewery (locally made) our Goliath was Sam Adams (contract brewed in Ohio) and when I was at Zoe Foods (small), Kashi (corporate) was Goliath.<span> </span></p> <p class="MsoNormal">At ProfitDriver, my Goliath is franchise coaching businesses, like AdviCoach.<span> </span>What they offer is “21 proven strategies” that are suppose to have an immediate impact.<span> </span>Really?<span> </span>So every business problem can be solved with one of 21 canned AdviCoach solutions?<span> </span>I shouldn’t be getting my MBA, I should just call AdviCoach since they have all the solutions!<span> </span>Warren Buffet, Jack Welch, and Steve Jobs be damned, they don’t stand a chance against these 21 canned solutions.</p> <p class="MsoNormal">Here’s how I see it.<span> </span>When you are buying a T-Shirt, it is ok to have only 4-5 sizes to pick from because it’s just a T-Shirt. It doesn’t have to fit great, you’re just wearing it to fart around the house.<span> </span>That’s what AdviCoach is, a T-Shirt with 21 sizes.<span> </span>You’ll find one that kinda fits, but who cares, it’s just your business and you’re in it to fart around the house.</p> <p class="MsoNormal">ProfitDriver provi<img align="left" width="156" src="http://4.bp.blogspot.com/_-3XQPAAeQFA/TSYCB3awCQI/AAAAAAAAAGY/riA0rQJLszw/s1600/tailor+made.jpg" alt="Suit" height="221"/>des well made suits that are tailored to fit you perfectly.<span> </span>Those franchise coaching models may provide 21 proven strategies, ProfitDriver provides an unlimited number.<span> </span>Why?<span> </span>Like each suit is tailored to fit you, we tailor our services to perfectly fit your business.<span> </span>So when people come in contact with your business, you look professional, not like you’re farting around the house.</p> <p class="MsoNormal">Ask yourself - Who is my Goliath?<span> </span>How can your Goliath provide you with motivation to succeed?<span> </span>What can you do differently and deliver a higher quality product? What are they doing wrong that you can capitalize on?</p> <p class="MsoNormal">See, questions like these aren’t in the 21 “proven” strategies…</p> <p class="MsoNormal"><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/3067574034http://blog.theprofitdriver.com/post/3067574034Wed, 02 Feb 2011 09:49:00 -0500ProfitDriver and the Boston Business Journal<p class="MsoNormal">I am quoted in this week’s Boston Business Journal. If you don’t have access, here’s the quote. (If you have a tough time reading the text, right click on image and click on view image).</p> <p class="MsoNormal"><img alt="ProfitDriver" src="http://i209.photobucket.com/albums/bb302/tooltko/BBJ128.jpg" align="middle" height="187" width="530"/></p> <p><img alt="Salem5" src="http://i209.photobucket.com/albums/bb302/tooltko/Salem5.jpg" align="right" height="212" width="250"/></p> <p class="MsoNormal">While I was reading this week’s Boston Business Journal I saw an ad for Salem 5 Bank. The headline in the ad says “Because running a business is no day at the beach”.<span> </span>Really?<span> </span>Says who?<span> </span>I love running my business.<span> </span>I love working with my clients and coaching my clients.<span> </span>Is it a day at the beach? No, it’s better.<span> </span>You know what’s no day at the beach…going to the bank.</p> <p class="MsoNormal"><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/2978753394http://blog.theprofitdriver.com/post/2978753394Fri, 28 Jan 2011 13:56:00 -05007 Networking Tips<p><p class="MsoNormal">You hear it all the time “It’s not what you know, it’s who you know”.<span> </span>That’s great, but useless, advice. I think a common feeling with people who are new to networking is: What I know is who I don’t know. What I don’t know is how to meet the people I want to know at a networking event.<span> </span><span> </span></p> <p class="MsoNormal">As a business coach and a small business owner I am always looking for new networking events and strategies.<span> </span>I recently saw these 7 Networking Tips at a seminar and I thought I would share them.<span> </span>They are easy to remember and are effective.</p> <p class="MsoNormal">Before we get to the 7, let me touch on my BIG 3 Rules of Networking.<span> </span>These are critical and when I coach a client on networking, this is what we focus on.</p> <ol><li class="MsoListParagraphCxSpFirst">Listen – When you ask the other person a question, listen to their response.<span> </span>I’ve been at networking events and I get asked a question and when I start to answer it becomes clear the other person is not listening, they are just waiting for me to shut up so they can tell me how wonderful they are.<span> </span>Don’t be this person.<span> </span>And just a helpful hint, most people’s favorite topic to talk about is themselves, so let them go on, the more they talk, the more you learn.</li> <li>Follow-Up – If you meet someone at an event, send them an email, a card, a handwritten note within 1or 2 days just to let them know you enjoyed meeting them and would like to learn more about them and their business.<span> </span>Add something personal that you learned while you were listening in #1, this shows you w<img align="right" width="253" src="http://www.impactlab.net/wp-content/uploads/2010/09/couchpotato.jpg" alt="Get Out and Network!" height="186"/>ere paying attention and that you were interested.<span> </span></li> <li>Get out there – You can’t network from your coach.<span> </span>Get out there, meet some people, press some flesh, flash those pearly whites, tell some bad jokes, maybe offend someone, so what, and just get out to some networking events!!!!</li> </ol><p class="MsoNormal">OK, now that we have those rules established, here are the FABULOS Networking Tips.<span> </span>Keep in mind that the BIG 3 Rules from above apply to each of these 7 tips.</p> <p class="MsoNormal"><strong>F</strong> – is for Family.<span> </span>Ask about their family.<span> </span>Listen to their response.<span> </span>This will give you ammo for your follow-up note.<span> </span>If you get important dates (birthdays, anniversaries, etc.) write them down and send the person a note or card on their big day.</p> <p class="MsoNormal"><strong>A </strong>– is for Activities.<span> </span>What do they like to do besides work?<span> </span>If you share a favorite activity, maybe you both are huge soccer fans, this will build rapport between you and give you something that you both are passionate about to discuss.</p> <p class="MsoNormal"><strong>B</strong> – is for Business.<span> </span>This is the nuts and bolts of networking.<span> </span>Look for ways YOU can help THEM, not the other way around.</p> <p class="MsoNormal"><strong>U</strong> – is for Unique.<span> </span>What makes them unique?<span> </span>Just ask them.<span> </span>What makes their business unique?<span> </span>What makes their product, service, marketing, hiring, firing, blogging, tweeting, anything UNIQUE?<span> </span>Again, give them a chance to tell you how great they are.</p> <p class="MsoNormal"><strong>L</strong> – is for Love.<span> </span>What do they love about their business, their industry, their customers, products, etc?</p> <p class="MsoNormal"><strong>O</strong> – is for Organizations.<span> </span>What organizations do they belong to? <span> </span>Again, much like activities, you may have something in common.<span> </span></p> <p class="MsoNormal"><strong>S</strong> – is for School.<span> </span>Where did they go to school?<span> </span>Is you found out that they are football fans and they went to BC, ask them where they were when Flutie threw the Hail Mary against Miami.</p> <p class="MsoNormal">Use FABULOS for topics of conversation, listen to the persons response, and use that info when you follow-up.<span> </span>Simple.<span> </span>Now go do it.</p> <p class="MsoNormal"><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">ProfitDriver</a></p></p>http://blog.theprofitdriver.com/post/2962503384http://blog.theprofitdriver.com/post/2962503384Thu, 27 Jan 2011 15:05:00 -0500To BNI or Not To BNI - Nine Networking Tips<p class="MsoNormal">Looking back on my career, one area that I did not focus nearly enough time on is networking.<span> </span>I am not going to preach about the importance of networking (it is VERY important) and I am not going to give you common sense pointers (always have business cards).<span> </span>What I am going to do is use my experience with BNI (Business Networking International) and provide some guidelines for picking a chapter and setting expectations if you choose to join.</p> <p class="MsoNormal">If you do not know what BNI is, you can check out their website <a href="http://www.bnimass.com/" target="_blank"><a href="http://www.bnimass.com" target="_blank">www.bnimass.com</a></a>.<span> </span>BNI is a networking organization that has chapters throughout the country.<span> </span>In Massachusetts there are between 90 and 100 chapters.<span> </span>Each chapter is its own networking group, consists of anywhere between 15-60 members, and each chapter can only have 1 person from a given profession (each chapter can only have 1 Business Coach, 1 Business Consultant, 1 CPA, etc.).<span> </span>The chapters meet once a week and the idea is that the members of each chapter act like a sales force for the other members and refer business to members.<span> </span></p> <p class="MsoNormal">Great concept, but it requires some work.</p> <p class="MsoNormal">I joined a chapter over a year ago and here are some of the things I have learned.</p> <ol><li><span> </span>Most of the chapters meet from 7 to 8:30am once a week.<span> </span>Plan to be there for 2 hours.<span> </span>BNI has strict rules on attendance (some groups enforce them, others do not) so if cannot make the commitment, do not join.<span> </span>As my business has grown, it has become more difficult for me to attend.<span> </span>If you need to miss a meeting, you can get a substitute (which there are rules for) but this becomes one more thing to manage.</li> <li>Write a list of the types of professions that would generate the most referrals for your business.<span> </span>Are you looking for B-to-B or direct to consumer referrals?<span> </span>Who is your target market? What other services do they use?<span> </span>For me, as a Business Coach and Business Consultant, CPA’s and payroll reps are best for my business, ProfitDriver, because they work with small business owners.<span> </span></li> <li>Visit chapters.<span> </span>You can visit an unlimited number of chapters before joining and I suggest you visit as many as you can stomach.<span> </span>When you visit, pay special attention to the members in the professions that you identified in #2.<span> </span>Ask yourself – Would I do business with this person?<span> </span>Would I refer a family member to this person?<span> </span>If you cannot answer these questions with a resounding YES, do not join that chapter!</li> <li>I have found that most BNI chapters are 60-40 chapters.<span> </span>By that I mean that 60% of the members are serious professionals and 40% are hobbyists/weekend warriors.<span> </span>Just be aware of this.</li> <li>After you have narrowed down your choices, Google members of each chapter you are considering.<span> </span>Each chapter has a membership committee that is suppose to research each new member to validate their professional credentials.<span> </span>Do not rely on their research.<span> </span>The membership committee of my chapter approved someone with a very questionable background and some serious legal issues and did not share this information with all members of our chapter.<span> </span>That member has been removed, but not until someone googled that person and found out for themselves.<span> </span>Remember, you will be referring these people, so make sure you can refer them with confidence.</li> <li>Pick your chapter <strong><u>carefully</u></strong>.<span> </span>You will be spending 2 hours a week, plus individual meetings, with these people for a year.<span> </span>As much as BNI downplays it, you will be EXPECTED to refer people in your chapter so be sure that you are comfortable referring people from the chapter.<span> </span>Also, keep in mind that these people will be representing you and your business.<span> </span></li> <li>After you have joined a chapter, be patient, the referrals will come.<span> </span>Since my business is a service (Business Coach and Business Consultant) that involves intimate knowledge of my clients and their businesses, referrals have been slow for me, but I expected that because of the nature of my business.<span> </span>A hairstylist joined our chapter and had more referrals after 3 weeks than I got in a year, but that is because her business is easier to refer.<span> </span>Temper you expectations based on the types of services you offer.<span> </span>If you are in the financial industry, referrals will take time.<span> </span>If you’re in retail, they will come quicker.</li> <li>Concentrate on building relationships with the members that can refer business <strong><u>to you</u></strong>.<span> </span>As I said, each chapter has between 15-60 members, so concentrate on your business sphere.<span> </span>Do not waste time on members who will rarely refer business to you or members you most likely will not refer business to.</li> <li>Do not join the Leadership Committee or the Membership Committee or any other committee that they may have.<span> </span>Even though as a member of the Leadership Committee your annual fee is waived, it is not worth it.<span> </span>Why?<span> </span>Here’s why:</li> </ol><ul><li>Once you join one of these committees your per week time commitment almost doubles.<span> </span>The 2-hour weekly meetings are 5% of a 40-hour workweek.<span> </span>Join a committee and now you are spending 4 hours, or 10% of your workweek on BNI.</li> </ul><ul><li>As a member of a committee, you become involved in politics and relationships of the other members.<span> </span></li> </ul><ul><li>Being on a committee adds no value to you or your business.</li> </ul><p>Lastly, enjoy the experience!<span> </span>If you choose to follow some of these suggestions, you will greatly increase your chances of having a positive experience with BNI, meeting some great people who will be champions of your business and who will help you grow.</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/2815322425http://blog.theprofitdriver.com/post/2815322425Tue, 18 Jan 2011 15:42:00 -0500Don’t Turn Groupon – Turn Groupoff <p class="MsoNormal">Groupon is not all it’s cracked up to be.</p> <p class="MsoNormal">6 Billion.<span> </span>That’s the amount that Google offered to pay for Groupon.<span> </span>Let’s look at that figure another way.<span> </span>Google offered $6,000,000,000 (9 zeros) to buy Groupon.<span> </span>The Groupon co-founders turned it down.<span> </span>I sent an email to Eric Schwartz, CEO at Google, and let him know that I would take 6 billion for my company, but I haven’t heard back.<span> </span>I sent Mr. Schwartz that email because I believe my company adds more value in the long term to small businesses by helping small businesses acquire new customers and increasing revenue more than Groupon will.</p> <p class="MsoNormal">One area that I work on with my clients is designing their ideal customer or client.<span> </span>If you could go into a lab and build your ideal customer, what would they look like?<span> </span>How old?<span> </span>Education? How much money do they make?<span> </span>How much do they spend annually on your products?<span> </span>These are just a few examples of the questions that I ask clients.<span> </span>Knowing your ideal customer is critical for small businesses because once you know who your ideal customer is you can better manage your business.<span> </span>How?<span> </span>Here a just a few examples:<span> </span></p> <p class="MsoListParagraphCxSpFirst"><span><span>1.<span> </span></span></span>You can structure your marketing campaigns to reach those people</p> <p class="MsoListParagraphCxSpMiddle"><span><span>2.<span> Y</span></span></span>ou can research how large of a market you can reach</p> <p class="MsoListParagraphCxSpMiddle"><span><span>3.<span> </span></span></span>You can design products and services to meet the needs of your ideal customers</p> <p class="MsoListParagraphCxSpMiddle"><span><span>4.<span> </span></span></span>You can control customer acquisition cost and understand you ROI for each customer</p> <p class="MsoListParagraphCxSpLast"><span><span>5.<span> </span></span></span>You can profitably grow your business</p> <p class="MsoNormal">Groupon does the complete opposite.<span> </span>Think, who is Groupon good for? <span> </span>Most would argue that Groupon is good for both customers and for small businesses.<span> </span>Customers get deep, deep discounts and small businesses get access to a large pool of possible new customers.<span> </span>That is usually not the case.<span> </span></p> <p class="MsoNormal">The Wall Street Journal had an article about a toy store that had 2,800 takers for an offer through Groupon.<span> </span>The deal was $10 off a purchase of $20.<span> </span>The store was very pleased with the response, until the Groupons were redeemed.<span> </span>Here is what the CEO of the toy store had to say “It didn’t drive in new people, and the people that were coming in didn’t spend even our average sale.<span> </span>It was just sad.”<span> </span></p> <p class="MsoNormal">What happened was that 90% of the people who took advantage of the Groupon deal were ALREADY CUSTOMERS.<span> </span>And I would bet that out of the other 10%, 7 out of 10 were coupon hunters who just went to the store because of the deal and will never go back.<span> </span>So the store, at best, got 84 new customers in the store.<span> </span>Not bad, until you consider the cost.<span> </span>The toy store had to pay Groupon $5 for each redemption, so $5*2,800 redemptions = $14,000.<span> </span>Then if you add the $10 discount given to each of the 2,800 Groupons ($10*2,800) you get $28,000.<span> </span>Add $14,000+$28,000=$42,000 and that equals a $500 cost of acquisition for those 84 new customers ($42,000/84=$500).<span> </span>And that is assuming that all 84 become customers.<span> </span>What if the store only retains 25%?<span> </span>Then the stores cost of acquisition is $2,000.<span> </span>How long will it take a toy store to recoup that cost, 1 year? 2 years?<span> </span>5 years?<span> </span></p> <p class="MsoNormal">So who is Groupon good for?<span> </span>Obviously cost conscious consumers, consumers who hunt out the best deals, consumers who cut coupons and live for triple coupon day, and if these are your ideal customers, Groupon is probably a good strategy for your business.<span> </span>If not, then don’t Groupon, Groupoff.</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/2729826762http://blog.theprofitdriver.com/post/2729826762Thu, 13 Jan 2011 10:55:00 -0500The Golden Voice…what’s yours?<p class="MsoNormal">The homeless man with the “god given gift of a great voice” has been an overnight internet sensation, getting worldwide media attention and job offers from MTV, MSNBC, the Cleveland Cavaliers, and many more (I just saw a Kraft commercial that he did).<span> </span>I have been joking with people for years that everyone has one god given gift, but I do it when they do something routine.<span> </span>For example, when my friend brags about getting a great parking space, I tell him “Your god given gift is finding parking spaces, congratulations!”</p> <p class="MsoNormal">This Golden Voice story got me thinking about what really is my gift. <span> </span>Thinking about that for awhile, what I I realized is:</p> <p class="MsoNormal"><span> </span>I believe my given gift is to help small business owners and business professionals get what they want and what they deserve from the investment they make in their businesses and careers.<span> </span>And to help them find their Golden Voice.</p> <p class="MsoNormal">Now, ask yourself, What is your Golden Voice?<span> </span>How do you make it an “internet sensation” with your target market?<span> </span>How do you let your target market know about your Golden Voice? <span> </span>How much more compelling would your messaging be if when people asked you “What do you do for a living?” instead of saying “I own a business” or “I work at company x” you told them your Golden Voice?<span> </span>When someone asked this homeless man, Ted Williams, what he did for a living, his answer was “I have a god given gift of a great voice”. That’s powerful.</p> <p class="MsoNormal">Don’t wait for the local news to do a story on you, aggressively pursue, market and use your gift.<span> </span>In other words, Stop Stalling. Start Driving!</p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p>http://blog.theprofitdriver.com/post/2700430248http://blog.theprofitdriver.com/post/2700430248Tue, 11 Jan 2011 13:41:00 -0500What if it works? Inbound marketing can be too successful. <p class="MsoNormal"><span>When speaking with business owners about marketing strategies, specifically inbound marketing, I can sometimes see the revenue dollar signs dancing in their heads.<span> </span><span class="GramE">Why?</span><span> </span>First off, they think their products and message are unique and really connect with consumers.<span> </span>Second, they think that inbound marketing is an instant fix to drive revenue for their business.<span> </span>My first follow up question to them is always “What if it works?<span> </span><span class="GramE">What if your marketing strategy is successful beyond your wildest expectations and within 1-3 months your revenue has doubled, tripled, quadrupled, or more?</span><span> </span><span class="GramE">Then what?”</span><span> </span><span class="GramE">And</span> the most popular answer I get “That would be great and I’ll deal with it then.”<span> </span>This is the most disastrous approach you can take.</span></p> <p class="MsoNormal"><span>This week the Associated Press published an article called <a href="http://www.google.com/hostednews/ap/article/ALeqM5j68Aqv3m2sJHJGmoIcOpvoxXANAwD9HBCNQG0" target="_blank">Shops grapple with fallout from group coupons</a>.<span> </span><span> </span><span> </span>The article is a perfect example that a successful marketing program can destroy your business if you are not prepared.<span> </span>My favorite part:</span></p> <p class="MsoNormal"><em><span>At <span class="SpellE">Bikram</span> Yoga Milwaukee, owner <span class="SpellE">Bron</span> <span class="SpellE">Gacki</span> had a very un-yoga reaction last month after selling nearly 2,500 <span class="SpellE">Groupon</span> coupons, when he expected to sell 1,000. He almost panicked.</span></em></p> <p class="MsoNormal"><em><span>“What if 2,500 people show up tomorrow? What’s going to happen?” he recalls thinking.</span></em></p> <p class="MsoNormal"><span>Great example, he signed up for the program with complete disregard for his yoga studio’s capacity.<span> </span>Well, what does happen if 2,500 people show up tomorrow?</span></p> <p class="MsoNormal"><em><span>“They have this one opportunity to enhance an experience for a customer and if they fail then you might not be coming back,” says Courtney <span class="SpellE">Smolen</span>, 29”</span></em></p> <p class="MsoNormal"><span>What happens is you have just underserved 2,500 people and their first (and likely only) experience with your business is negative.<span> </span>Then they tell their friends, post about their experience on <span class="SpellE">Facebook</span> or tweet about it, and give your business a negative review on Yelp (your negative reviews before you ran the promotion: <span class="GramE">0</span>, after the promotion: 2,500).<span> </span>Within a matter of hours, those 2,500 people spread their negative experience throughout your entire market and your business is toast.</span></p> <p class="MsoNormal"><span class="GramE"><span>Or</span></span><span> maybe you’re a candy bar company and you offer a 50% off coupon for all the people who follow you on Twitter. <span> </span>You expected 10,000 new followers and you got 100,000.<span> </span><span class="GramE">Now what?</span><span> </span>In the first couple of hours, 50,000 people use their coupon and your retailers sell out of candy bars.<span> </span>They call you placing rush orders for product, but you <span class="GramE">can’t</span> fill the onslaught of orders.<span> </span>You call your manufacturer in a panic and they tell you that they <span class="GramE">can’t</span> produce your candy bars for 3 weeks.<span> </span><span class="GramE">So</span> you have 50,000 people with coupons and no candy bars and you also have all of your regular, loyal customers with no candy bars.<span> </span>You push your manufacturer to produce your candy bars sooner, and they agree to do so after you place an order for 300,000 candy bars, three times the size of your typical order (you’ve got lots of people waiting) and they get you candy bars in 12 days.<span> </span>In those 12 days, the 50,000 people with coupons have moved on to the next deal of the day and your regular customers are not as loyal as you thought and they are enjoying your competitor’s candy bars.<span> </span>Now you are stuck with 300,000 bars (payment to the manufacturer is due in 15 days) and you have no customers.<span> </span></span></p> <p class="MsoNormal"><span>This happens.<span> </span>Check out <a href="http://slickdeals.net/" target="_blank">slickdeals.net</a>.<span> </span>This site lists all the freebies, coupons, hot deals, etc from anywhere and everywhere.<span> </span>Once your deal <span class="GramE">gets</span> listed here, buckle your seatbelt, product is going to start flying out of your warehouse.</span></p> <p class="MsoNormal"><span>How do you avoid this?<span> </span>Have a plan.<span> </span>Best case, worst case, expected case and what course of action you will take for each.<span> </span></span></p> <p class="MsoNormal"><span class="GramE"><span>Best Case – 100,000 new followers.</span></span><span><span> </span>Should I limit the number of coupons?<span> </span>I need to speak with my manufacturer about possibly scheduling a production run.<span> </span>I need to be sure my regular customers get product first.<span> </span><span class="GramE">Etc..</span></span></p> <p class="MsoNormal"><span class="GramE"><span>Expected Case – 10,000 new followers.</span></span><span><span> </span>I have the inventory to fill both the coupons and my regular orders.<span> </span>My next manufacturing run in 6 weeks is good. <span class="GramE">Etc..</span></span></p> <p class="MsoNormal"><span class="GramE"><span>Worse Case – 500 new followers.</span></span><span><span> </span>I have too much inventory.<span> </span>I need to reschedule my manufacturing run from 6 weeks to 12 weeks from today.<span> </span>I need new strategy to move product. <span class="GramE">Etc..</span> </span></p> <p class="MsoNormal"><span>Having a strategy in place can save you and your business.<span> </span><span class="GramE">What’s</span> your strategy?<span> </span>Do you put a plan in place when you implement a new marketing strategy?</span></p> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a><span></span></p>http://blog.theprofitdriver.com/post/899775582http://blog.theprofitdriver.com/post/899775582Tue, 03 Aug 2010 20:50:00 -0400Know all you can about your customers<p class="MsoNormal"><span>Who are your customers? Where are they from? What’s the best way to communicate with them? Do you consider their ethnic background when planning on speaking with them? If not, you should take in account their culture and the cultural differences that you have with them. What is culture? Culture, as defined on Dictionary.com is:</span></p> <p class="MsoNormal"><span class="GramE"><em><span>the</span></em></span><em><span> behaviors and beliefs characteristic of a particular social, ethnic, or age group </span></em><span> </span></p> <p class="MsoNormal"><em><span> </span></em><span class="GramE"><em><span>the</span></em></span><em><span> sum total of ways of living built up by a group of human beings and transmitted from one generation to another. </span></em><span> </span></p> <p class="MsoNormal"><span>Think of how differently someone from Japan acts compared to someone from India. Would you use the same communications strategies for each person? I would hope not. You need to consider and research what values and beliefs that that particular culture holds and tailor your communications to fit their cultural dimensions. If you do this, you will be speaking “their language” and your chances of success will be much greater because you will reduce the frustration and anxiety that both of you may feel.</span></p> <p class="MsoNormal"><span>A terrific website that explains the cultural dimensions for cultures all over the world is <a href="http://www.geert-hofstede.com/" target="_blank"><a href="http://www.geert-hofstede.com/" target="_blank">http://www.geert-hofstede.com/</a></a>. The site ranks each country in five cultural dimensions. Here’s a brief description of each from the site.</span></p> <p class="MsoNormal"><strong><span>Power Distance Index (PDI)</span></strong><span> Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that ‘all societies are unequal, but some are more unequal than others’. </span></p> <p class="MsoNormal"><strong><span>Individualism (IDV)</span></strong><span> on the one side versus its opposite, collectivism, that is the degree to which individuals are <span class="SpellE">inte</span>-grated into groups. (Does the culture value the individual or the collective group <span class="GramE">more</span>)</span></p> <p class="MsoNormal"><strong><span>Masculinity (MAS)</span></strong><span> versus its opposite, <span class="GramE">femininity,</span> refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. </span></p> <p class="MsoNormal"><strong><span>Uncertainty Avoidance Index (UAI)</span></strong><span> deals with a society’s tolerance for uncertainty and ambiguity. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. </span></p> <p class="MsoNormal"><strong><span>Long-Term Orientation (LTO)</span></strong><span> versus short-term orientation. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one’s ‘face’. </span></p> <p class="MsoNormal"><span>Let’s look at the differences between Japan and India, specifically the Uncertainty Avoidance Index (UAI).</span></p> <p class="MsoNormal"><span><!—[if !vml]—><!—[endif]—></span><span></span></p> <p class="MsoNormal"><span>As you can see Japan</span><span><img align="left" width="272" src="http://media.tumblr.com/tumblr_l6hainTCuH1qcr1qp.jpg" height="308"/></span><span> has a much higher UAI than India. This means that people from Japan are have a v</span><span> </span><span>ery low tolerance for uncertainty and ambiguity. Whereas people from I</span><span></span><span>ndia are more comfortable in unstructured situations, more open to bending the rules. </span></p> <p class="MsoNormal"><span>This is important information for you to have if you are making a business presentation to a group from Japan. With this group there can be no gray in your presentation, every point you make must be black or white. And the presentation must be delivered with confidence and conviction. If they detect the slightest bit of uncertainty, they could be very uncomfortable moving forward with you.</span><span></span></p> <p class="MsoNormal"><span>If you make the same presentation to a group from India, you would want some gray. By having some gray, you can encourage their input and have an active discussion and negotiate on how to move forward.</span></p> <p class="MsoNormal"><span>As you go over each of the five cultural dimensions you can design your presentation to fit how your audience is comfortable receiving information. If they value the collective more than the individual, maybe send a team to make the presentation to show how your organization also values the collective efforts of the company. If your audience values Long-Term Orientation, show examples of how your solution while benefit their organization long into the future. And so on.</span></p> <p class="MsoNormal"><span>Does it work? I have used this information when meeting with prospects and by incorporating this information into my presentation I strongly believe that is was a factor in converting those prospects into clients. </span></p> <p class="MsoNormal"><span>What do you think? Have you used this type of strategy before? If not, would you consider it helpful for future customer communication strategies?</span></p> <p><span> <p><a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">Tim Kaelin</a> - <a title="ProfitDriver" target="_blank" href="http://www.theprofitdriver.com/">ProfitDriver</a></p> </span></p>http://blog.theprofitdriver.com/post/888858079http://blog.theprofitdriver.com/post/888858079Sun, 01 Aug 2010 11:52:00 -0400