Thats Why They're Broke

[sonny_1080]

You might find this little story beneficial.

The pandemic has obviously affected a lot of people financially (including myself). Some beneficially, most burdensome.

A few years ago I marketed and sold financial plans. After 6 months I started to see a pattern:

The people who most needed the services and products I offered, were the people who least wanted my help. The people who were pretty solid financially -- the well-educated and established -- could definitely do without what I offered, and they were the most interested.

It was the strangest (and most frustrating) thing.

That was a valuable lesson that I just remembered after reading a quote that @Andy Black sent me:

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

In my experience, those that see the cost in something fair far worse than those that see value. For example, if I only saw the cost of TMF or Unscripted , instead of the value... I would most likely be in a far worse position than I'm in now.

So instead of marketing my services (I generate customers) to those that I think are broke and really need it (ah, therein lies the problem), I'm starting to think I should focus on helping the businesses that are booming and probably want it.

What are your experiences with this?

How have you pivoted your sales strategy as a result?

 

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[Odysseus M Jones]

Yup, when you're loaded they throw money at you, virtually free but when you're broke it's double digit interest.
Stores in low income areas charge higher than affluent areas because the rich will hop in their X5's travel across town to save a few cents whilst the poor have no option.
Tried offering an altruistic option in one of my businesses, it didn't work so decided it's better to charge those that can afford it & distribute the proceeds as charity to those that need it.

 

[alexkuzmov]

You might find this little story beneficial.

The pandemic has obviously affected a lot of people financially (including myself). Some beneficially, most burdensome.

A few years ago I marketed and sold financial plans. After 6 months I started to see a pattern:

The people who most needed the services and products I offered, were the people who least wanted my help. The people who were pretty solid financially -- the well-educated and established -- could definitely do without what I offered, and they were the most interested.

It was the strangest (and most frustrating) thing.

That was a valuable lesson that I just remembered after reading a quote that @Andy Black sent me:

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

In my experience, those that see the cost in something fair far worse than those that see value. For example, if I only saw the cost of TMF or Unscripted , instead of the value... I would most likely be in a far worse position than I'm in now.

So instead of marketing my services (I generate customers) to those that I think are broke and really need it (ah, therein lies the problem), I'm starting to think I should focus on helping the businesses that are booming and probably want it.

What are your experiences with this?

How have you pivoted your sales strategy as a result?

Well this sounds logical.
And it may be that this discrepancy is by design.
Meaning that people who seek to improve their finances are the ones with improved finances.
I dont think thats a coincidence.

However, are you communicating the value properly?
Maybe the people who most need financial help are the least able to understand what that means?
Then again, maybe thats why they are in that situation...

 

[Digamma]

People buy what they want, not what they need.

Showing people how the two are the same thing is what we call "sales".

 

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[The-J]

So instead of marketing my services (I generate customers) to those that I think are broke and really need it (ah, therein lies the problem), I'm starting to think I should focus on helping the businesses that are booming and probably want it.

Meaning that people who seek to improve their finances are the ones with improved finances.
I dont think thats a coincidence.

I'd say you're onto something there.

What gets measured gets done, as they say.

With a broke business, you have to convince them of the value of your work. With a booming business, they know why your work is valuable: you have to convince them of the value of choosing you specifically.

Of course there are no hard and fast rules but it helps to understand the motivation of your prospect. Many prospects that are struggling might not think there's even a problem.

 

[alexkuzmov]

I'd say you're onto something there.

What gets measured gets done, as they say.

With a broke business, you have to convince them of the value of your work. With a booming business, they know why your work is valuable: you have to convince them of the value of choosing you specifically.

Of course there are no hard and fast rules but it helps to understand the motivation of your prospect. Many prospects that are struggling might not think there's even a problem.

I wonder if there are studies done on this to confirm or disprove it.
It might be the same case as the scam emails/phone calls.
The most gullible people are the only ones likely to be scammed that way and those are exactly the people which the scammers need and target.
Hmm, I wonder if @sonny_1080 has uncovered a legit problem that needs solving.

I know that this sounds stupid, but: How can we provide financial help to those that most need it given that they are the ones that least seek it?

 

[Black_Dragon43]

Interesting thread...

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

Yes, that is correct. But there is also a more "ruthless" way to phrase this same idea which is less politically correct, but perhaps closer to the truth. Namely:

"Your job is to find out if the person in front of you can and would pay you what you want, and if not, then quit talking to them right away"

In my experience, those that see the cost in something fair far worse than those that see value.

This is not clear cut. In my experience, there are some incredibly hard bargainers and negotiators out there who will try to extract as much as they can out of every single deal. These are people who could be millionaires but still haggle over a small petty sum because every $ saved is a $ in profit, and it's much easier to save a $ than to earn a $. So the easiest way to increase your profit margin is by slashing costs.

However, you are right, that there can be downsides to this attitude when taken to extremes. For example, it can lead to alienating talent. Typically talent knows its value, so it will not accept working for too little $ for long, so it will leave. It can also make people less willing to deal with you, and customers more suspicious and on their guard when negotiating with you.

So I would say that the most effective entrepreneurs are those who can hide their ruthless negotiating skills.

For example, if I only saw the cost of TMF or Unscripted, instead of the value...

You are right, but these are highly affordable resources. If you bought TMF , and it ended up being crap, how much would you have lost? Whereas if you buy, say a funnel, and it's crap, there's your $10,000 gone.

So instead of marketing my services (I generate customers) to those that I think are broke and really need it (ah, therein lies the problem), I'm starting to think I should focus on helping the businesses that are booming and probably want it.

Yeah, focus on marketing to those who can pay, obviously. Those who are broke may need your services, but your services may be high risk as well for them. So there's also that.

What are your experiences with this?

I think it depends on the personality of the client. Some clients throw around $10,000 with such ease as if it's nothing. I've encountered such people, who would not negotiate at all and just accept whatever price you name. How they can do it and be successful, I'm not sure, but there are some such people out there.

Other clients are sharks and will try to pinch every penny that they can. So both extremes exist out there.

 

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[Andy Black]

People buy what they want, not what they need.

This.

This is why I like paid search. They not only want it, but they're searching for it. Whether they *need* it or not is kinda irrelevant.

 

[Andy Black]

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

Other great lines I like are:

"Help the people in motion." (Amy Hoy)

"Follow established cashflows." (the host at about 15:10 in this Tropical MBA podcast)

"Sales is a screening process." (Blaise Brosnan)


Basically... find the people who are already spending money to solve the problem you can help them solve.

 

[GravyBoat]

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

That's actually a really REALLY good quote.

Cut the time wasters and find someone who sees the value.

In my business, most people don't really care about the price. They need something done, period, end of story. If I charge 20% more? They couldn't be bothered.

Those are the customers and clients you want in a service business. You want people who want results. Price isn't much of a problem if you're getting them an ROI.

 

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[Andy Black]

That's actually a really REALLY good quote.

Cut the time wasters and find someone who sees the value.

In my business, most people don't really care about the price. They need something done, period, end of story. If I charge 20% more? They couldn't be bothered.

Those are the customers and clients you want in a service business. You want people who want results. Price isn't much of a problem if you're getting them an ROI.

I often say we're looking for the people who want to bite our hand off, rather than the people we have to "convince".

My take on "Always be closing" is to keep on moving. If the guy in front of you just sees the cost then politely back out of the room and keep going up the street.


I've other quotes and thoughts in here:

• HOT TOPIC - Andy's Inbound/Sales Braindump

 

[sonny_1080]

I often say we're looking for the people who want to bite our hand off, rather than the people we have to "convince".

My take on "Always be closing" is to keep on moving. If the guy in front of you just sees the cost then politely back out of the room and keep going up the street.


I've other quotes and thoughts in here:

• HOT TOPIC - Andy's Inbound/Sales Braindump

I feel like this strategy really depends on what you’re selling though.

If I’m a consultant, then this is probably the best strategy.

If I’m a car salesman, the guy who tries to convince everyone he comes across will probably sell more cars than the guy who doesn’t.

I don’t know I’m just finger painting here

 

[Black_Dragon43]

If I’m a car salesman, the guy who tries to convince everyone he comes across will probably sell more cars than the guy who doesn’t.

Still, even as a car salesman there comes a point when you should send someone on his way because they're not a prospect, and they're wasting your time. During that time, you could be talking to someone else, who was actually interested, and where a purchase was possible.

 

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[sonny_1080]

Still, even as a car salesman there comes a point when you should send someone on his way because they're not a prospect, and they're wasting your time. During that time, you could be talking to someone else, who was actually interested, and where a purchase was possible.

Yeah ofcourse

 

[Andy Black]

If I’m a car salesman, the guy who tries to convince everyone he comes across will probably sell more cars than the guy who doesn’t.

If the car salesman comes across those people in his showroom then I’d say that makes sense. They’ve already raised their hand to say they’re interested in a car.

 

[sonny_1080]

Very true

 

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[Kevin88660]

You might find this little story beneficial.

The pandemic has obviously affected a lot of people financially (including myself). Some beneficially, most burdensome.

A few years ago I marketed and sold financial plans. After 6 months I started to see a pattern:

The people who most needed the services and products I offered, were the people who least wanted my help. The people who were pretty solid financially -- the well-educated and established -- could definitely do without what I offered, and they were the most interested.

It was the strangest (and most frustrating) thing.

That was a valuable lesson that I just remembered after reading a quote that @Andy Black sent me:

"Your job is to find out as quickly as possible if the person in front of you sees the value in what you do, or just the cost." (Blaise Brosnan)

In my experience, those that see the cost in something fair far worse than those that see value. For example, if I only saw the cost of TMF or Unscripted , instead of the value... I would most likely be in a far worse position than I'm in now.

So instead of marketing my services (I generate customers) to those that I think are broke and really need it (ah, therein lies the problem), I'm starting to think I should focus on helping the businesses that are booming and probably want it.

What are your experiences with this?

How have you pivoted your sales strategy as a result?

I agree that people buy what they want, not necessarily what they need.

Because what they “need” is usually prescribed with a moral judgement on what should be done...if people buy what they need there should be no market for tobacco, alcohol and casino visit....