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THE TOP 10 Business Rules You Must Know About

Discussion in 'BlackHat Lounge' started by HostStage, Oct 19, 2012.

  1. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Hey Folks,

    You'll find below a few useful rules, i've learnt from my years in doing business. I'll try to remain as broad as possible, so it could apply to all of your ventures :


    1) Customers are after the famous TRIANGLE : Price - Quality / Scope - Time / Delay

    Reaching the perfect triangle isn't possible. That a unquestionnable fact!
    If you get that part, you'll understand better how to target your prospects.
    Also, if you happen to talk with your prospect, you'll know if you'll have the sale once you are aware of which part of the triangle he is after. Of course, it involves that you know perfectly well your weaknesses / strenghts.

    For instance, if the customer is after the delay as top priority and you answer with quality - price arguments, you won't crack the sale in 99.9% of the situations.
    Moreover, don't talk about the price if the customer is all about quality. Customers will of course want the cheapest possible, but if quality is his main requirement, then the price is secondary.



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    2) When you negociate on the price, never give a discount / an additional service without having something in return ! (if you don't it isn't negociation but weakness)

    This is for 2 reasons :
    a. You might create the opposite effect, your customer might question the value of your services, if you give up on a few % easily. He would wonder how the heck is he able to push on a price that he can change on the fly.
    b. Negociation has to be hard for the customer, as the harder it is, the more he will be proud about his negociations skills and he could more likely spread the word around him (free advertising ;)). On another hand, you reduce the probability that he will come with further claims later on.

    Of course, it assumes that you are perfectly aware of what factors you can play with in negociation and how far you can go to make a profitable sale. If you think on the fly, you increase the risk of a maths mistakes and with the feelings you might express you may go too far.



    3) The customers which pays the less are the most demanding

    It sounds illogical but it is true. I've been around the block for a while and i happen to make freebies to promote my services. The freebies sniffers were the ones which were harrassing me the most to get always more.
    There is this pragmatic say in my country and this is exactly what it is about:



    4) Don't Run after a customer.

    This is more a psycho effect rather than a business rule. But if you are involving yourself too hard to go after a customer who said no to you, you'll feel personally rejected and you'll be in the "captivity of the negativity".
    Propose your product, Test a few times in a row with a few arguments on how hard is the propsect's denial and move on to the next.


    5) There is a buyer for all kind of products !


    I happened to watch "The Devil wears Prada" with an old GF a few years ago. I wouldn't recommand you to watch it, quite a cheezy movie, but there were this so meaningful sentence i'll never forget :


    Of course, not all products are created equal in term how juicy is the market, but if you communicate accordingly to what you sell, you'll optimize your sales.


    6) The Maslow Theory / Pyramid :

    Okay this is a very important point in B2C (Business to Customers =! Business to Business), it is a real marketing basis.

    Basically this pyramid is classifying all the people on earth according to their needs.

    There are 5 kinds of needs only : Physiological, Safety, Belonging, Esteem, Self-actualisation.

    There are classified in the way that you can't want something in the upper ladder. If you don't have some food, you won't want a bed. If you don't have a bed to sleep, you won't have to have a computer.

    It seems obvious, but if you sell some products you need to match the category of products you sale to the customers you have.


    [​IMG]




    7) Never Do a Discount / Change your pricing without changing an offer even slightly :


    Weird right ? Yeah, but so necessary to keep your current customers happy or to keep your old prospects in the loop.

    I'm going to illustrate this by a mistake of Link-assistant.com and my raw feeling about it.

    I've bought their enterprise version and paid for updates. It is a pricey software which i believe have some value.
    However, they made a 63% discount ($600 off) on their exact same suite with same features ! I was like WTF ?? and i questionned the value of the tool and made a shortcut: "so the price i paid was over expensive then". Therefore, i'm on the edge to cancel the monthly fees. I feel like a cash-cow.
    Maybe they are loosing money on this discount, but the mistake is they didn't change the offer , if they would have removed even a silent feature, i would have emphasized it and make my peace with it.



    8) "The First to talk, cash the most"

    I should have put this rule in top 3! This is a MUST-KNOW!!!

    Marketing's history has shown that the first to come out with an idea/product/concept will be the one who cash the most in 98% of the cases! Even if they are more expensive, even though the quality isn't good, those doesn't impact the success of the first. Of course, there is a coefficient to your success, on the how you promote your offers and the scale of the promotion.

    The first will be perceived as the referral of a market.

    You can take the example of the Buy Sales Section.



    9) A Golden Investment Rule

    That would answer to all threads of the following kind : "I have $XXXX how can i turn it into $XXXXX - 100% safe required"

    Investements are divided into 2 categories :

    a.Risky ones
    b.Safe ones


    The riskier, the higher are the profits.

    We all know that money calls money, well this rule is one of the reason. The most you can afford to loose the more chance you'll make a killing in investments.

    A safe highly profitable and non risky investement doesn't exist but in your wildest dreams!



    10) Your Mind should always be a RISK ANALYSER :

    All of your payments / strategies must be analyzed.
    It never hurt to grab a piece of paper and a pen, and to throw down the pros and cons of a situation.

    The more complex, the more you need to overview properly the facts. What do i risk ? What would i gain in risking ?
    For instance, you want to propose a new line of product but you don't master the process yet.

    Doing a risk analysis can only improve your idea, and even find answers to questions you had.



    To conclude this thread, it is all about knowing yourself, your product and your targets !

    I hope you have enjoyed the read!
     
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    Last edited: Oct 19, 2012
  2. GiorgioB

    GiorgioB Supreme Member

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    Interesting points.. I wouldn't agree on all points but most are valid. The part about the not giving away a discount easily , etc.. I guess it depends on your field but I give very nice discounts to my long time customers and I think that's a crucial part of retaining customer loyalty.
     
  3. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Entirely agree with that. +1 :)

    I meant discount solely for new customers where you forget totally your current loyal customer.
     
  4. embro1

    embro1 Newbie

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    very good rules..

    it is all about knowing yourself, your product and your targets !
     
  5. HostStage

    HostStage Jr. VIP Jr. VIP Premium Member UnGagged Attendee

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    Yep, but yet hard to diggest / apply ;).
     
  6. mohammad.omer42

    mohammad.omer42 Newbie

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    Great information!