Posts Tagged ‘sales’

Amazon Lending Library

Friday, November 4th, 2011

You may recall a few weeks back when I posted an article about how Amazon was, in my opinion, being reactive in the ebook space and not innovative. Well, some things have changed, and I wanted to update my comments.

Since that post, Amazon has come out with the Kindle Fire and several new Kindles, including a touch screen model. I had said Amazon needed to respond to the desire to have touch screens on e-readers, and I thought they needed a worthy competitor to the Nook Color.

Looks like they’ve done both, even though personally, there are some things about the Kindle Fire I’m not crazy about (like limited access to competitors’ ebook reader apps). Sure, it maintains their lock on content, but even the new Kobo Vox could load the Kindle app without rooting or otherwise messing with the operating system. At some point, you have to keep customers because they are loyal, not because you metaphorically locked them in jail.

But that’s a post for another day.

The new Kindles, however nice, are still reactive. They don’t push the limits too far. I closed my last post with requesting that Amazon answer a need no one else is answering, and they did that yesterday.

People have been asking for a “Netflix for e-books” for some time, and Amazon just released it yesterday. All Amazon Prime members have access to a limited selection of ebooks, for free, with no due dates.

No one’s really happy with it yet. The selection of books is tiny (about 5000), and you can only borrow one a month. Books by the big publishers still aren’t present, so you might not find that new best seller everyone’s talking about. In addition, it only works on Kindle devices, not apps, so I can’t take advantage of it. (But with the Fire so cheap, I might consider getting one in the future, even though it’s not the device I was hoping for.)

But think about it! Netflix had to build up their streaming content over time, and I’m sure Amazon will do the same. I believe in a couple of years, this will grow and be an excellent way to read ebooks. Publishers want to stop piracy. The music industry learned that the best way to stop piracy was to make content cheap and easy to buy.

Amazon has been trying to make that happen in the ebook space for some time. This is the next step in that process. Let’s see how it plays out, but I’m excited, even though I can’t take advantage of it right now.

Way to go, Amazon! You listened to your customers and are working to keep us happy.

Anyone else have an opinion about the new lending library?

Electronic Marketing Thoughts

Friday, June 10th, 2011

A couple of days ago, I received an email newsletter from an author. I’m not sure how I got on her newsletter list since a) she lives in another country so I’m pretty sure I haven’t met her in person, b) I’ve never bought one of her books and c) the email address she used isn’t on the web as far as I know.

But that aside, I didn’t mind receiving the newsletter because a) I thought I wanted to buy one of her books and b) the newsletter had some serious marketing problems, so she gave me an excuse to write a blog post.

This post focuses on the “I wanted to buy her book” statement. She made it about as difficult as possible. She was promoting a book starting a new series, which was good. She also talked about her other series and mentioned both the latest book and the first book. All that was good. I’m not interested in her new series, but I was interested in her existing series, and telling me the first book was excellent. Now I know where to start.

That was the good. Now the not-so-good. There were no direct links to buy her books. Bad! If you want us to buy your stuff, please make it easy on us. Links are good. Links to the exact site you want us to buy from are even better. What do I mean by that?

Well, her books are available on Amazon (US and UK), Smashwords and Barnes and Noble. Her best commission comes from Amazon, so she might want to direct us there. However, she said in her newsletter that the majority of her sales come from Amazon, so she might want to direct us to one of the other sites to boost sales there. Either way, the buyer will follow the link presented.

Since there was no link, I did my research. I went to all three sites. And that’s where she lost her sale from me. I found four different versions of her books with three different prices.

Which one should I buy? She’s self-published, so quality is an issue. Is the version with the latest publication date the most up-to-date and best version? Are they all the same? Am I getting anything different or better by paying $4.99 vs. $2.99 vs. $2.39?

Since I don’t know the answer, I opted to pass on her books for now. Maybe later when I’ve read some reviews and know what I’m getting.

See the problem? The unsolicited email newsletter could have turned me off. No link to buy could have turned me off. Not knowing which version of the product to buy certainly turned me off.

She made me, as a potential buyer, jump through unnecessary hoops. So instead of a sale and (hopefully) new fan, she got this blog post.

Probably not what she was looking for. What do you think? Should I email her an (unsolicited) link to this post? Think she’d read it and pay attention?

Pay Attention to Who Your Customer Really Is

Wednesday, April 27th, 2011

I don’t know if you’ve been following the ebook revolution, but if you are in business, you need to be paying attention.

Why you may ask? I don’t sell or read ebooks. Why should I care?

Because business history is repeating itself, and not in a good way. Remember all those years ago when the music industry fought piracy and customers wanting to buy tracks instead of entire albums? Well the book industry is fighting the same battle right now. And they obviously haven’t studied history because they are dooming themselves by making the same mistakes. And a few new ones.

I’ve blogged on piracy before, but that’s not really what I’m writing about today. Today I want to talk about remembering who your customer really is.

I read an article earlier this week on the authors and the publishing industry. It’s long and kind of repetitive, but it makes one excellent point. Readers are the customers of books.

Sounds obvious, doesn’t it? You wouldn’t be wrong to think “Well, duh! Who else would be the customer?” Actually, as far as publishers are concerned, until recently, distributors were the customers. But with the ease of self-publishing, readers are now waking up and realizing that they have power. Readers can choose to buy inexpensive, self-published ebooks instead of more expensive books published by the big publishing houses.

And publishers are starting to notice. But they are making the wrong conclusions. This is where the publishing industry has a different situation from the music industry. It’s relatively expensive to produce a song. Yes, that’s changing quickly, but it was still true when the music industry fought its battle and was forced to change its business model.

But it’s cheap to self-publish a book. Sure, it takes time (lots of time), but once you’ve put in the time, the rest is cheap. I’ve been researching, and you can get a good book with a striking cover, well formatted, up on Amazon for less than $1000. That’s well within almost anyone’s price range.

The conclusion readers are slowing starting to come to is that publishers aren’t necessary. Are they gate keepers? Not really. Look at the drek James Patterson and Dean Koontz are churning out. (They used to be two of my favorite authors.) Are they marketing whizzes? Not really. In the above-referenced article, they state that only 1 or 2 books in 10 do very well.

Now the publishers are looking at successful self-published authors as the “next sure thing.” They are wooing them by telling the authors they won’t have to market. They can focus on writing. If I were an author, I wouldn’t listen.

A lot of successful self-published authors are riding to fame (and fortune) on low-priced books that come out frequently. Will they be as successful on higher-priced books that come out less often? Doubtful. The recent poster child for “self-published author wooed by big publishers” has dropped dramatically in her Amazon ratings. And she only signed a contract about a month ago. What will happen in 12-18 months when her first traditionally published book is released at $9.99 or more?

The message here is clear. Know your customer. Know what they want, and give it to them. Ignore it and face extinction. Do I really think the big publishers will be dinosaurs soon? Not really. But I’m not sure how they are going to dig themselves out of the tar pit.

As a small business owner, learn from the mistakes of the big guys. You don’t have the time, or the money, to afford to make them yourself.

Review of So What?: How to Communicate What Really Matters to Your Audience

Friday, April 22nd, 2011

I recently read So What?: How to Communicate What Really Matters to Your Audience, and while what he writes is hardly rocket science, it was a good communication reminder.

How would you like to end conversations with people saying “I want that!” or “That’s great. How can I help?” Sounds good, right? Well, that’s what you’ll learn by reading this book.

His basic point is that we tend to forget to communicate what’s in it for the other person. He discusses the “So What?” philosophy of communication and talks very specifically about communicating value to your audience.

This goes along very well with my messages about networking. If you are thinking about the value you are adding to the relationship, you’ll be more successful than the people who always talk about themselves and how great is their product or service.

The book is a quick read, and it has lots of good information. I like the way he follows his own philosophy. In each chapter, he starts by telling us the value we’ll get from each chapter. In other words, he constantly communicates the “So What?” message to the reader.

One of the chapters I particularly liked was “Winging It vs. Orchestration.” In it he talks about preparing your message for each individual or organization by researching their needs before crafting your message. It’s a basic step that many sales people neglect, but often it’s the difference between sending a generic message or one targeted to make people say, “I want that!”

It also applies to networking and elevator speeches. If you do your research in advance on an event, you’ll know who will be there and how to present yourself and your services. A bit of preparation in advance can make an event far more profitable.

I could go on, but why don’t you get the book and start working on your “So What?” messages.

Cost vs. Perceived Value

Wednesday, April 20th, 2011

Since I will be publishing several ebooks later this year, I’ve been following very closely the debates and suggestions about how to price ebooks. I read an interesting blog post on the topic yesterday, and I think the author is looking at the situation from an emotional perspective, not from the perspective of his potential market.

First, go read his post on “Why You Won’t Find My ebooks In the Bargain Basement”.

Done? Okay, here’s my thoughts, from both a customer point of view and an entrepreneurial point of view. I think this is important for you to consider when you price your own products or services.

Just in case you decided not to read his post, Hutchins says he will price his full-length novels at $9.99, and he has real issues with authors who price theirs at $.99 or $2.99.

Let’s look at this from a consumer point of view. I estimate it takes me about 5 hours to read an average-length novel. So, I can buy his book for $9.99, three books at $2.99 each (with a bit of money left over) or 10 books at $.99 each.

Admittedly, the quality of books at the lower price point vary widely. To make this a fair analysis, based on my experience, I will throw out (as unreadable) 1/3 to a 1/2 of the $.99 books, and I will probably read and enjoy all of the $2.99 books.

So do the math on my almost $10 “investment.” A $9.99 book will get me 5 hours of enjoyment. Three $2.99 books will get me 15 hours, and ten $.99 books will get me between 25 and 35.

Where’s the best value for my $10?

Am I saying I never buy books for $9.99 (or more)? No. I’ve been waiting for The Winds of War to come out as an ebook for years. I will buy it, even at $9.99. But I know the book, and I know I will re-read it many times, which makes its perceived value very high to me.

An author, however, can’t rely on that perception of value from every reader, so let’s look at it from an entrepreneur perspective. Assuming I am not a lone voice in the ebook reader wilderness (and I know I’m not), then there are probably lots of readers who feel as I do and would rather buy more, cheaper books. In fact, several people have done an analysis of the “best” price for an ebook to maximize revenue to the writer. Here’s just one article.

The conclusion always comes out somewhere between $2.99 and $4.99 as the price to maximize revenue. As an entrepreneur, isn’t maximizing revenue the goal?

Hutchins seems to take the approach that if readers aren’t willing to pay $9.99 for a quality book, then they can take their business elsewhere. (Actually, I’m being pretty nice in saying that. What he really said was kind of insulting to me as a consumer.) It’s okay. He can price his book however he likes.

But my advice to an entrepreneur will always be to maximize revenue. Hutchins seems to be making an emotional decision based on what he thinks his book is worth. If his readers agree, super for him. But the data strongly indicate that readers will go elsewhere, so I’d recommend he, and other authors, go with the data and price their books based on their potential readers’ emotions, not their own.

And if you sell something other than ebooks? I’d give the same advice. Don’t rely on your emotions for pricing decisions. Do some basic market research and listen to your customers.

Any other ebook readers/authors out there want to chime in to agree or disagree. Or entrepreneurs in other areas?

Listening and Connecting in Sales

Wednesday, February 9th, 2011

I was meeting with a client, and she told me about two sales calls she’d been on recently. She landed one client and lost the other one.

Not a bad ratio, actually, but there was more. She got the client she thought she wouldn’t and lost the client she thought was a no-brainer.

When she told me more, I quickly understood why.

The one she lost was a perfect fit for her. She had worked with a very similar client in the past, and both are in a very specialized field. The likelihood of finding another writer/editor with experience in genomics was very slight.

So why did she lose the job? Because she didn’t listen enough. The prospect spoke for a couple of minutes and then my client jumped in with why she was perfect. But what she said was just a bit off target, and the prospect declined.

Listening is the most important part of a sales call. If you listen and ask the right questions, the prospect will usually tell you everything you need to know to make the sale. But if you don’t listen, you’re guessing, and the odds are good that you’ll guess wrong.

What about the other prospect?

My client thought she hadn’t done very well on the call. She felt like she’d fumbled her words. She’d tried to tell a client story and lost her train of thought half-way through. She wasn’t the perfect fit for the client’s needs. But she got the work.

Why? Because she connected with the prospect. They spoke on a personal level and shared some non-work related stories. You don’t want to spend too much time in a sales call on fluff, but connection is important.

Given the choice, we’d rather do business with people we like. If you can find some common ground to connect on, you’ll be more likely to be hired than the “perfect” candidate who isn’t likable.

It won’t save you if you can’t do the work, but it can definitely level the field.

Anyone else have a good connecting or listening story to share?

Credibility and New Entrepreneurs/Salespeople

Friday, February 4th, 2011

I need your help.

I was having a great discussion yesterday with a friend about new entrepreneurs and sales. She said that new entrepreneurs have a lot of credibility with family and friends and should use that to their advantage in their early days in business.

Interestingly, when I started as a window sales person seven years ago, I had the opposite experience. My friends and family all liked and trusted me as a person. But they had NO trust in me as a sales person and refused to refer me to their friends and family.

So I’m wondering. What was your experience? I think I know why my friend and I had different experiences, but I don’t want to make assumptions. I’d rather hear multiple views before I propose a hypothesis.

Thanks in advance for the help. What we discover will be extremely useful for a class I am preparing.

Sales Psychology: Fear of Loss and the Kindle iPhone App

Wednesday, February 2nd, 2011

I’ve been preparing for a workshop later this month on Ethical Selling, and in preparation for that class, I’ve been reading Yes! 50 Scientifically Proven Ways To Be Persuasive.

Then yesterday morning I saw an article about Apple rejecting the Sony Reader iPhone app.

What do these things have in common?

As I was reading Yes!, the authors were talking about how fear of loss is a major motivator, even when the loss is minor.

No way! I thought. If the loss is minor, then where’s the fear?

And then I remembered my reaction to the article about the Sony app. I don’t care about the Sony app, but the article had a lot of conjecture about the impact on the Kindle iPhone app. Lots of tech and ereader blogs contributed to the hue and cry.

I do use the Kindle app on my iPhone. In fact, I was reading Yes! on it. (Ironic, eh?) But I don’t use the Kindle app that much. I actually do most of my reading in iBooks, which obviously isn’t going anywhere. (If you must know, most of my reading is DRM-free content that I convert to ePub for iBooks. I don’t buy books through Apple.)

But when I thought about losing the Kindle app, my heart rate went way up, and I caught myself exhibiting other signs of stress. An odd reaction for someone who doesn’t use the app much.

Guess the authors knew what they were talking about.

What does this mean for you? Fear of loss can ethically be worked into both sales and networking strategies. Just think about the “limited time offer.” I know I’ve used it effectively in my own business.

My challenge to you is to decide on a good way to work fear of loss into your sales strategy. And then share in the comments. We can all learn from each other.

And by the way, it will probably be another six months before I offer my Ethical Selling workshop again. Just sayin’ ;)

Set Your Rate Right

Wednesday, January 26th, 2011

I was working with a client a few days ago. He was frustrated with not having enough time to market, write proposals and respond to client questions.

I asked him how many hours a day he needed to bill to make his income goals. The answer was “six.” No wonder he was frustrated! Needing to bill six hours a day definitely left him with little time for anything else.

So we discussed his rate. Did he have room to raise it? And the answer was “yes.” In fact, I wasn’t the first person to suggest he was underselling himself.

Look at this from a time management point of view. He has room to raise his rates by at least a third. That actually lowers his required billable hours by 2 each day! Two more hours to market his business and do all the other tasks he’s been putting off. Raising his rates makes sense there.

But what about from a perception of value view? When he told me his rate, my first thought was, “he’s pretty cheap.” Want to bet some of clients thought the same thing? Being thought of as “cheap” can be a selling point, but I don’t recommend it.

I had another client, several years ago, who was seeing about 5-7 clients a week. I urged her to raise her rate from $75 an hour to (eventually) $125 an hour. She was terrified that she’d lose clients by being too expensive.

What really happened? Her clients increased. Over the year we worked together, she increased her clients to 12-15 per week. She received most of her leads from an online profile, and she made only one change to that profile. Her hourly rate. I’d like to say she also did great networking, but I’d be lying. Most of the change in her clientele was a result of raising her rate.

Perceived value is huge. If something costs a little less than we expected to pay, we see a bargain. If it’s lots less, we see it as shoddy. When my client raised her rate to what people expected to pay for someone in her profession, with her experience, they believed she was competent.

See how it works? Doing a pricing analysis of your business is important. Charging the right amount will bring you more clients. Billing the right amount will bring you more time.

Anyone else want to share a pricing story?

You Can’t Afford Me

Monday, December 6th, 2010

I heard this story recently. The speaker was talking about wanting to hire a well-known speaker for a conference. The guy said, “You can’t afford me.”

Maybe he was right, but it was the height of arrogance. If you are expensive, say so, but tell your price.

When I sold windows, I made a sale because I told the price. A prospect wanted a very expensive window arrangement. I was mentally going, “Gulp,” but I was ready to measure and quote.

The prospect asked me, “Will you give me a price on these windows?”

“Of course,” I said.

“Good,” she said. “The last sales person told me it was too expensive and I couldn’t afford it. I told him to just give me the price and let me decide. But he refused.”

Stupid salesperson. I quoted the windows. They were expensive. But she bought, and when she filled out the financing paperwork, I saw her income. She was a single woman, but she made six figures. Never tell a person like that “she can’t afford it.”

The moral of the story? Don’t make assumptions. Maybe you are expensive. Fine. Tell us your price. Let us decide what we can afford. We might surprise you. But if you are arrogant and tell us we can’t afford you, I guarantee you won’t get the business. And you’ll leave behind a lousy reputation.

That way leads to business failure.