May 1, 2017

The Effect of Abundance and Scarcity on what Customers Value

Issue #469
Word Count:  1,420 

Estimated Read Time:  6  min.

Rabbi Avigdor Miller once marveled at the notion that “two gases [hydrogen and oxygen] — neither of which can quench thirst – can be united into a clear and sparkling liquid which pours down one’s throat in a life-giving stream.”  He added that “No liquid in the world can take the place of water for relief of thirst. This fluid is the most potent of all elixirs, although its availability and its inexpensiveness cause it to be overlooked. It is the universal solvent and the vehicle of digestion and of blood circulation.  If water could be obtained only from the pharmacist, it would be the most costly of liquors, both for its vital properties and for its enjoyment.”  And yet, most likely very few in the U.S. open a faucet and marvel as water pours out… precisely because it is so abundant and available.

Yet, in places like Somalia, South Sudan, Nigeria, Yemen and even places in the U.S. such as Flint, Michigan and drought-affected parts of California, water is very scarce and the cost (and value) of water has skyrocketed.  In such places, people have a genuine and profound appreciation for clean drinking water.   That’s because the value of everything is deeply affected by abundance or scarcity, whether the item is essential for life or not.  In the U.S., the abundance of water has caused the value of “this most potent of all elixirs” to be mostly taken for granted.  On the other hand, other commodities that are not essential to life – such as diamonds, gold, rhodium, platinum, plutonium, taaffeite, tritium, painite, californium – are highly valued because of their scarcity, even if they have no life-giving properties.  This value is subjective.   This is known as commodity theory, and it is something that every entrepreneur, business leader, and sales professional should understand thoroughly.  This is where the laws of economics and the actions of sales and marketing professionals meet. Continue reading →

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April 24, 2017

The Art of Negotiating Business Deals

Issue #468
Word Count:  1,565 

Estimated Read Time:  6  min.

One of the most challenging parts of working with a new client is finalizing the business agreement.  This is the process in which the parties hammer out the details of the contract.  The bigger the deal, the more complex the agreement.  And negotiating the final terms of a complex deal can have its challenges.  In those situations, a sales professional might find himself in a position where the customer holds all the cards.  The salesperson may have invested a lot of time and effort in developing the opportunity.  He may have even promised his boss that a commitment was imminent.  The salesperson may feel boxed in and the customer may think he can dictate the terms.  That’s a losing proposition for the salesperson and his company, even if they land the deal.  Business deals that start out very lopsided – a win-lose proposition – don’t bode well for a good long-term business relationship. Continue reading →

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April 3, 2017

Using Chess Strategy in Business, Part 2

Issue #467
Word Count:  2,292

Estimated Read Time:  9  min.

There are many benefits that come from playing chess.  Psychologists often cite chess as an effective activity to help improve memory function.  That is probably why chess is recommended in the fight against Alzheimer’s.  Playing chess can also help the mind solve complex problems and work through ideas.  It is also thought to increase one’s intelligence, although that’s not been scientifically proven.  And the effects of chess on children – which has been correlated to children getting better grades in school — has led to chess being introduced in schools in a multitude of countries.  That said, many are still intimidated by chess because it is perceived as a game for geniuses.  But while chess is a thinking-man’s game — one that requires a great deal of strategic thought and tactical reflection — it is not just for geniuses and savants.  Anyone can learn to play chess and improve through study and practice. Continue reading →

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March 27, 2017

Using Chess Strategy in Business, Part 1

Issue #466
Word Count:  1,804 

Estimated Read Time:  7  min.

Chess is one of the fairest games there is.  In chess, opponents start with an identical force.   The entire playing field of a chess game is out in the open.  A player can see every move an opponent makes as soon as he makes it.  And, in chess, no dice are used so it is never a game of “chance” and there is no luck of the draw.  Moreover, there is no referee involved in chess that might “throw” a game or be partial to one side over the other. Continue reading →

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March 20, 2017

How to Spot and Hire A Players for Key Positions

Issue #465
Word Count:  1857

Estimated Read Time:  7 ½ min.

When organizations hire employees for key positions, they want superstars.  They want rainmakers and movers-and-shakers.  Basically, they want A Players.  They certainly don’t set out to hire 10 % A Players, 80% B Players and 10% C Players.  But that’s what most companies have.  Still, it is fair to say that no recruiter ever hired someone knowing he would be a C Player, nor could he have known with certainty who was an A Player and who was a B Player.   If only 10% of the employees at most companies are A Players, then clearly HR departments are hiring lots of B and C Players.   That implies that it must be hard (or should we say nearly impossible) to distinguish between A, B and C Players. Continue reading →

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March 13, 2017

A-Players vs. B-Players: Understanding the Value of Each Type of Employee

Issue #464
Word Count:  1546
Estimated Read Time:  6 min.

Employees are the most valuable resource of any company.  From Apple to DeBeers to Walmart, employees are the ones who lead, manage, create, innovate, implement, interact and engage with others on behalf of the company.  Only in the smallest companies do the owners perform the majority of the work.  In most other companies, employees do most of the work that generates profit.  For that reason, recruiting and hiring individuals with the skills and qualities to fit specific openings is the hardest thing any company does… even in the most successful organizations.  And it doesn’t matter if the position is an entry-level receptionist, a seasoned salesperson, a highly-technical professional position, or C-Suite executive.  Each opening has an ideal set of skills and qualities that would be the best fit for that job at that company.   But the more remarkable the skills and qualities needed in an employee, the harder it is to find the right person to fill that job. Continue reading →

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March 6, 2017

When “Company Policy” Creates Lifelong Customers… for the Competition

Issue #463
Word Count:  1739 

Estimated Read Time:  7 min.

There are three little words that help businesses create lifelong customers more effectively than practically any other phrase:  “It’s company policy.”  The problem is that those words create lifelong customers for the competition of the company saying that to its customers.   For businesses that want to drive their customers to the competition, have at it.  Use that phrase to your heart’s content.  Better yet, just close your doors now and save yourself the time and slow agony of going out of business the old fashioned way… failure to make money. Continue reading →

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February 27, 2017

Content Marketing: Quality vs. Quantity

Issue #462
Word Count:  1,570
Estimated Read Time:  6 min.

By now, most everyone has probably heard someone harping about the need for businesses to “tell their story” or “engage consumers with content” or “connect with customers on a personal level”.  For over a decade, the mantra among marketers has been that Content Is King.  Content is meant to attract and keep the attention of customers and potential customers.  As the saying goes, “Be careful what you ask for; you might just get it.”  Everyone jumped on the content bandwagon.  Ad agencies, marketing firms, public relations firms, SEO firms and media vendors all rushed in to help.   They all touted the need for “MORE CONTENT.”  The goal was quantity.  Tell stories.  Share information. Continue reading →

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February 20, 2017

How to Become an Industry Insider or Influencer

Issue #461
Word Count:  1367
Estimated Read Time:  5½ min.

In general, an “insider” is a member of any group that is limited in number and generally restricted in access.  The person – by virtue of being a member of this group – has access to secret, privileged, hidden or otherwise obscure or complex information or knowledge.  The insider is a member of the “gang” and hence knows things outsiders don’t, including insider jargon.

The term “Industry Insider” has various meanings.  For example, in the world of securities trading, the term “Industry Insider” is generally used to describe someone who works for a publicly-traded company, or trusted advisor to that company, and possesses key information (often non-public information) about that company.  They know things because they are on the “inside.”  That information, if shared and/or used to influence stock trades, is illegal.  The Securities and Exchange Commission considers that a form of illegal insider trading. Continue reading →

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February 13, 2017

Industry Insiders and Influencer Marketing

Issue #460

Reaching customers during their decision-making process is one of the most coveted goals of sales and marketing professionals.  Reaching someone at just the right time with just the right information can have a profound effect in influencing a purchase, especially if it is coming from a person of trust.  Say, for instance, a man is looking to invest money.  There will be many steps that go into the decision-making process of what to invest in.  He might read some recent articles about the stock market in reputable investment magazines.  He might get some advice from blogs written by investment gurus about investing in real estate.  He might hear a radio commercial featuring a celebrity recommending investing in bonds.   And he might get advice from friends and family members who have successfully managed their own investments.  Some of this advice will be considered and some will be discarded.  The man is more likely to listen to someone who is a trusted advisor, friend or colleague, especially if he is in the midst of the decision-making process. Continue reading →

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