How to Handle Business Issues?

Common Ground

• It is a state of overlapping interests between two or more parties.
• Think of the options available for you as a circle that surrounds you.
• Your prospects also have circles of restrictions.
• Your job is to find exactly where those circles overlap, and bring the prospect in that part of the circle.
• This will be easier when you understand what your probable customers want or need.
• Common ground is a precondition for any transaction to happen.
• Without any areas of overlapping interests there is no reason for a prospect to choose to work with you or purchase from you.

Financial Interest

• Every time you purchase from a retailer, they have a product you want to own.
• You have a certain amount of money they are willing to accept for the product.
• If you don’t want the product or the retailer wants more money than you are willing to pay, no transaction will take place.
• A customer will not accept the price that you offer, if it is not in their best interest. It is important to make the transaction financially beneficial for both parties.
• Selling is not about convincing somebody to do something that is not in their best interest.

Involvement

• Build a healthy business relationship with your clients, using emails, phone calls, face to face meetings and technical presentations of your product.
• Conduct warm calls to your existing clients, in order to assess the company’s current situation, and to understand if you are doing something that is making the client or customer unhappy.

• Also do this to assess your strengths, weaknesses, opportunities and threats (called SWOT Analysis) and ensure your clients are not being tempted by other competitors.
• Email your marketing material to existing and potential clients, within your target audience, to raise awareness about the latest products that you have added or new services that you are now providing.

Compatibility

• Ideally, you should want exactly what your prospects want.
• The satisfaction of their desire and the resolution of their problem.
• The more your interests are aligned with your prospects, the more they will trust ability to give them what they want.
• Good negotiation skills help in creating a situation that is beneficial for both and makes the customer feel valued.
• Exploring different options to find a resolution for the customer enhances the chances of overlapping circles.
• The more potential paths you explore, the higher more compatibility you create with the customer.

Price Elasticity

• If there is no difference between the gas of two gas stations, if one reduces the price of gas, they can attract more customers.
• Since most service stations may make more money from their convenience stores than they make in selling gasoline, discounted strategy may lead to higher profits.
• In introductory economic courses this idea is called price elasticity.
• Offers with high price elasticity experience major changes in demand when prices go up or down.
• Offers with low price elasticity experience little fluctuation demand when prices change.
• Economists love to draw downward sloping pricing curves that show demand increasing as prices decrease.
• In practice, sometimes raising prices can increase demand by appealing to a specific type of customer base.
• Automobiles are the best example. Some cars are desirable because they are expensive.
• The typical customer who purchases an expensive car is very different type of customer as compared with the one who purchases a not so expensive car.
• As you test different pricing strategies you will notice where you stop appealing to certain type of customers and start appealing to others.
• Price elasticity may completely change the experience of operating a business, and you should not take it lightly. There are two major considerations while setting your prices with prices transition shock in mind.

I will discuss those is my next post, so keep checking back, if the subject interests you. Did you know that people are 80% more likely to remember about your product or service if they watched a video? HyperEffects provides you with extravagant and enticing videos that will attract your potential clients and retain your current ones. Their custom-made videos offer state-of-the-art production and unique perspective, to give you the status you deserve. And remember, do not give up easily. 80% of B2B sales are conducted after the 5th encounter!