Herman: John L. Herman Jr., Author

Herman School of Business

Where Did All That Money Go?

During the late 1990’s when the Dotcom craze took over the stock market millions of people bought stock as prices went through the roof. Literally billions of dollars changed hands as the Average Joe borrowed money against his house to take part in the capital give-away as any stock you bought just kept going up. The experts said forget Earnings Per Share ratios…we were in a “New Economy” where math didn’t matter anymore. HUH? Who were they kidding?

They were kidding the Average Joe. Who ended up watching his stocks free fall and his investments become worthless. OK, so we know the Average Joe lost a lot of money, but where did it go? Judging by the size of homes in The Hamptons it looks like those smart guys spouting off about the New Economy were sellers, not buyers, and they got a lot of that money other people lost.

In recent years mortgage companies didn’t just make loans to people wanting to buy a house. They stuffed money down the throats of speculators worse than the way animals are fed to give us some of that fancy food restaurants sell for a hundred dollars a plate. Lenders came up with new schemes to let you borrow not eighty percent or ninety percent of the homes true value…hell…you could borrow one hundred and twenty five percent. The Average Joe had recovered from his stock losses of ten years ago and his memory didn’t pick up the cues that those smart fellows making the lending rules were some of the same guys who told them math didn’t matter in the Dotcom Era.

With all that money being given away a lot of Average Joe’s started making money flipping houses that went up so fast in price it made your head spin. But why were they going up so fast? Because as one Average Joe started boasting to his neighbor about the cash he was grabbing as he flipped houses more Average Joe’s lined up at the front window of the Hampton House guys window and said they would love a loan and would pay any price for a house so they could keep up with their neighbor. Forget the paperwork. Forget the math. Give the sucker the money and let him pay hundreds of thousands of dollars for a house he couldn’t afford. The Hampton House guy sold the loan the minute he made it and cashed out. His wife needed to add ten thousand more square feet to their Hampton House because their banker neighbor just did.

Pop goes the weasel. Kids might not get that phrase today. BOOM went the bubble. Young people might get BOOM because they seem to spend a lot of time playing video games where stuff is blown up. In any event…the housing bubble burst. The guy with the house in the Hamptons ran out of suckers buying the bad loans he was making.

Did you ever play musical chairs as a kid? Imagine the home buyers were running around as the music played looking for the next house to land on, like the chair you need when the music stops…but it starts up again and again until only one person is left with a chair. Listen, the guys in the Hamptons aren’t the last one in a chair. They are the ones playing the music. They never lose.

If you want to know where all that money went…twice now in the last ten years…just look at CNBC and watch shows like HIGH NET WORTH. Take a ride to see the President of Countrywide’s new digs. His tan alone must have cost ten million dollars. The Average Joe is sometimes a pig, trying to get ahead. The heads of the companies bilking the Average Joe’s are hogs and they should be slaughtered. We will be digging out of this mess for years, and the guy in the Hampton’s will be sitting on the beach, sipping a Mai Tai with his rich buddies laughing all the way to the bank.

Read Comments and Add Your Own

Your World versus The World

Not every day is a bed of roses. Not every day is picture perfect. But for the most part positive thinking people can focus on that which makes them feel good. And you have two worlds to choose from. You have the tiny world you live or work in where issues affect you on a daily basis. Maybe your business is having a great day, or your kid did something wonderful…or things at home just “clicked” for you. Or, maybe not.

The big world challenges us lately as we see earthquake damage causing death to millions, or storms reeking havoc and causing death across the Southern portion of our country. The war rages on and thousands of families are worrying about loved ones in Iraq with no end in sight. Barak appears to be the winner but Hillary plows ahead perhaps making it easier for John McCain to waltz into the White House…where he has promised to support a hundred more years of war. Gas prices are ramping skyward. OK, you get the point. This damn country could use a victory or a feel good story, or a day away from all the mess.

Rather than concentrate on The World, concentrate on your tiny world where you can have a more profound effect on your personal happiness. Plan a summer trip right now. Hit an amusement park and watch your children or grandchildren laugh. Go bowling one night and smile. Get a plan going to exercise more and make yourself feel better almost immediately. Write a note, a letter or an email to a friend or relative. Click over to the Buy A Book section of my website and watch me giggle when your order hits.

Look, I have been a staunch Republican for years. I believe we have stolen from generations of poor people with social programs that are failing. But in this election I want change. Radical change. Let’s shake it up. No more same-stuff-different-day. Let’s elect Barak because of the three candidates left standing he represents the biggest change. That is significantly different thinking for me…but the country needs a break and maybe he can help start a shift away from our norm.

As for your tiny world…be rational. But why not go-for-broke a little. If I can support a new force Democrat why can’t you make a radical departure from your norm. And by the way…I lowered the price of the books on the website so you can save some money while cracking me up.

Read Comments and Add Your Own

Control What You Can...

Next Monday I will be speaking before just over 100 people at the Austin Radisson in Texas. The attendees are professionals who work with almost 60,000 business owners throughout the State. I am honored to have this opportunity.

Seth Godin says the enemy for writers is obscurity and this speech gives me a chance to become known to many people who can then share my message with even more people. To help jumpstart my leap from obscurity with this group I sent down a copy of HERMANISMS for every attendee. Yesterday practice began in earnest.

As any regular reader knows my barn is one of my favorite places. Few barns have fireplaces, chandeliers, built-in bookcases filled with autographed books, the obligatory big screen TV and a full kitchen where last Friday we steamed some of the biggest shrimp ever. But I digress. The barn is also a wonderful place for me to practice my upcoming speeches. I stand behind a table and belt out the speech over and over again as if 100 people were sitting in front of me. Start. Stop and start again. And again. The upcoming talk is supposed to be between 30 and 40 minutes long and I did the speech about eight times yesterday. Scratching out and scribbling in parts that needed editing. The audience must have loved it because no one groaned, fell asleep or got up and left. Of course no one was there either.

I kept my cell phone with me and my wife called from the house (100 yards away). I asked her if I was being too loud and could she hear me? She said, “What…are you down there snoring?” What a comedian. Around the house I have burst out with the opening several times…maybe too many times…because Maggie was filling in the next part when I left off. Look, this speech is an audition. I also applied to speak at this organizations’ national convention later this year in Chicago. And while this audience will be just over 100, the national convention will have an audience of over 1,000. Being able to come out of obscurity for 1,000 people that matter to me all at once is a hoot. But the national rep told me they were holding off on my booking in Chicago…until they see how I do in Texas. Oh, OK…no added pressure there.

I have to be honest with you. Most people hate speaking in Public. I say give me the microphone and get the hell out of the way! I love it. It feels like home to me. Being able to share in front of a group means my work alone in that barn has some meaning. I practice over and over again because that is what I can control. Getting the timing down. Making the words just right. You see getting the gig was beyond my control. An article appeared in SPIRIT and I got a call to consider being a speaker. That led to emails, talks on the phone, applying to speak at the national convention and now my preparation for the main event. I want the audience to learn something…to be inspired…and to remember to recommend my books to their clients when they go back to work. And I want the national people to see the value of having me in Chicago later this year. I can’t control what they decide. I can only control what I do. And that means simply making the best speech I can next week.

Honey…I’ll be in the barn all day.

Read Comments and Add Your Own

Control What You Can...

Next Monday I will be speaking before just over 100 people at the Austin Radisson in Texas. The attendees are professionals who work with almost 60,000 business owners throughout the State. I am honored to have this opportunity.

Seth Godin says the enemy for writers is obscurity and this speech gives me a chance to become known to many people who can then share my message with even more people. To help jumpstart my leap from obscurity with this group I sent down a copy of HERMANISMS for every attendee. Yesterday practice began in earnest.

As any regular reader knows my barn is one of my favorite places. Few barns have fireplaces, chandeliers, built-in bookcases filled with autographed books, the obligatory big screen TV and a full kitchen where last Friday we steamed some of the biggest shrimp ever. But I digress. The barn is also a wonderful place for me to practice my upcoming speeches. I stand behind a table and belt out the speech over and over again as if 100 people were sitting in front of me. Start. Stop and start again. And again. The upcoming talk is supposed to be between 30 and 40 minutes long and I did the speech about eight times yesterday. Scratching out and scribbling in parts that needed editing. The audience must have loved it because no one groaned, fell asleep or got up and left. Of course no one was there either.

I kept my cell phone with me and my wife called from the house (100 yards away). I asked her if I was being too loud and could she hear me? She said, “What…are you down there snoring?” What a comedian. Around the house I have burst out with the opening several times…maybe too many times…because Maggie was filling in the next part when I left off. Look, this speech is an audition. I also applied to speak at this organizations’ national convention later this year in Chicago. And while this audience will be just over 100, the national convention will have an audience of over 1,000. Being able to come out of obscurity for 1,000 people that matter to me all at once is a hoot. But the national rep told me they were holding off on my booking in Chicago…until they see how I do in Texas. Oh, OK…no added pressure there.

I have to be honest with you. Most people hate speaking in Public. I say give me the microphone and get the hell out of the way! I love it. It feels like home to me. Being able to share in front of a group means my work alone in that barn has some meaning. I practice over and over again because that is what I can control. Getting the timing down. Making the words just right. You see getting the gig was beyond my control. An article appeared in SPIRIT and I got a call to consider being a speaker. That led to emails, talks on the phone, applying to speak at the national convention and now my preparation for the main event. I want the audience to learn something…to be inspired…and to remember to recommend my books to their clients when they go back to work. And I want the national people to see the value of having me in Chicago later this year. I can’t control what they decide. I can only control what I do. And that means simply making the best speech I can next week.

Honey…I’ll be in the barn all day.

Read Comments and Add Your Own

Know When To Fold Them...

In the last posting we talked of a shop owner who is questioning whether to stay or go? This posting will not specifically discuss her shop…but rather talk about what business owners must consider when pulling the plug becomes a possibility.

How do you know when it is time to go?

If the thought even enters your mind as a business owner it is at least time to look into your business and find out why that thought has found its way into your cosmos. When you start to question why you are there, and how you can make it going forward, and what to do if you do need to get out…it is time for a reality check.

These thoughts seldom come to the business owner drowning in customers and cash. Nor do they come when your firm has just landed the biggest account, or recently cashed a check from the largest sale you ever made. Let’s face it, these thoughts are for the lost, the floundering, the over-worked and undercapitalized owners. These thoughts creep in when the family starts to remind you that they are second place to the time jailer your business has become…and did they mention that the cash shortage around the house seems to have something to do with your company? The one they have no say in, but pay dearly for?

OK, these are the emotional pulls on you. Stay strong. Bend but don’t break. These are not the reasons to run away from what was your dream not long ago. Although it now may have turned into a nightmare…it ain’t over yet.

Business is about controlling your own destiny. Owning a business is about being in charge, about calling your own shots…and oh yeah…it’s about the money. Remember, you started this whole thing because of the money that would come rolling in when you made it work. And you surely didn’t expect it to start rolling in right away did you? Unfortunately most owners never give themselves enough time to succeed. So, let’s talk some facts about the money.

Look at what you owe right now. All of it. Every freaking penny of it. Not just the original loan, but the vendors bills and the taxes, and the wages, and the rent, and the credit card debt you knew would put you over the top. Wow, the hole is deep isn’t it? So what…that’s just the downside. What about the value of what you have?

Value the inventory, look at the store fixtures, the office furniture, the manufacturing equipment, the customer base you have built. Add it up. Now look at what you are doing and why it isn’t working. Is it the right merchandise you have, is there enough of it? When your customers leave do they leave empty-handed because you didn’t have what they want? Is that open space in your business available for more stuff to sell? Have you really done all you can to make it work? Only when you can say that there is no more cash to infuse…and that even if you had it that wouldn’t make the business work. Only when you say you can’t find more customers and the ones you have aren’t buying enough. Only when a partner with new ideas or some cash wouldn’t help. Only when you have done all you can do. Only then can you throw in the towel. Or you will regret it.

Bring in someone to share the financial and physical load. Give them an option to buy you out in three years. It may be better than walking away now with nothing but debt. You know what the entry obstacles are to owning a business? Almost nothing. People start companies all the time on a wing and a prayer. It isn’t until later they realize how much it might cost them. Starting is easy. Getting out requires real work.

Read Comments and Add Your Own

Should this Shop Owner Stay or Go?

Got a call last week from a woman who happened upon my book by way of her husband. I mail out copies of HERMANISMS every week to a variety of people that I believe could use my consulting services, hire me as a guest speaker or simply buy a quantity of books for their clients or workers. One recipient took the book home to his wife. She read it and emailed me the next day.

Step One on her way out of a problem. She knows she is struggling and is reaching out for help. You gotta love that. Near one the country’s most prestigious Universities a block of houses was knocked down so a new High Rise structure could serve as a residence for students. The building is on a main street and the first level of the building has an array of shops and a “Plaza” with tables scattered in front of the eating establishments. Yesterday was perfect weather wise and I took a drive to visit the business. People were everywhere. And a few were even in this woman’s store.

She sells a beautiful line of stationary, offers custom orders for invitations and letterhead, and the upscale look is quite impressive. The square footage is just over 1,100 feet and with a few racks of cards, the stationary displayed, and the checkout counter there isn’t much room for additional merchandise. I think differently. I think there is enormous room for more merchandise. One wall is completely dedicated to paper and envelopes that match. It is a gorgeous display of color. My first thought is…how much does it contribute in sales and profit? Other than the glass front there are only three walls to use for merchandise and one whole wall dedicated to this paper and envelope display better be worth it from a sales perspective.

The store has been open 18 months now…and I would want to see a breakdown of what categories of product bring in the bucks. While the custom stationary and invitations surely bring a sweet profit margin…what do the causal shoppers buy when they come through the door? Being on the “Plaza” as I call it means that meandering customers stumble in because the window displays are inviting. But what awaits them when they have time, money, and are actually inside the place looking around? Casual customers are not seeking out new stationary…and while they discover that service and may use it later…the space is high cost rent because it is on the main walkway where you expect to get high people traffic. Not having a way to relieve the shoppers of some of their money is one of the reasons the shop isn’t doing better. This place screams for small “gifty” items, a display of small inexpensive costume jewelry, or maybe even a little glass case of chocolates or cupcakes shoppers could nibble on as they stroll down the street.

In reality the premise for the shop is the stationary and invitation service…but to increase that business people need to know you are there and that takes advertising, which isn’t practical. Unless…you hold an event for Wedding Planners, Event Planners, and offer half off their first order which might cost something for a cookie/candy tray and a few bottles of wine…but you would let those marketing to people who need your product who and where you are. And, how about getting some local artists or photographers to display their product…at no cost for inventory…and take a cut for any items sold? Combine the new art/photography opening with the Event Planners Open House and the cost should be limited.

There is a large family owned gift/book/stationary business about twelve miles away that grew from a shop about this size to a multi-million dollar enterprise over a thirty year run. Why not ask to meet with the owner to ask for help. I happen to know the owner would bend over backwards to give advice. Don’t think that asking an owner in your same field would be laughed at. To the contrary, successful people love helping others as a way of giving back.

This shop owner is battle weary. She has faced 18 straight months of an uphill climb and the top is nowhere in sight. Money for new product is scarce and the owner hesitates digging the hole deeper with more investment in something she may have to give up. Staring at the months ahead of rent, the cost of part-time help, and continued slow sales is stressful. Giving up now is being considered. What would my advice be in this situation? Assuming next to no cash is available for new inventory I would do the following:

1) An immediate post card mailer to every Event Planner, Wedding Coordinator, in the city AND include a card to every Business Office within her zip code to alert office managers of your “special half price off on your next order.”
2) Post a sign that asks for artists and photographers to come discuss a display of their work in her store. (Free Inventory)
3) Get on-line and find emails for every website in her area, as well as the various event and wedding planners and send a note about your special. (Free Advertising)
4) Call a small local “Chocolatier” or Baker to put in a glass case of items every shopper can buy and walk the plaza munching as they stroll. The person will want the opportunity to get the exposure and may front the cost of the glass case in exchange for the chance to be in the store.
5) Look into GIFTBEAT, an industry publication and call every company advertising something that could sell to the walk-ins…and again, find someone who will work with you to get the display in your place.

But what if the owner just wants out? Let’s address that tomorrow in another posting.

Read Comments and Add Your Own

Got Any Old Chevy's?

Over the years one of my passions has been cars. When my daughters went to sleep at night it wasn’t to stories from children’s books…because they scared me to death. Side note: can anyone tell me why seeing witches, fire-breathing dragons, and watching animals die in Disney films is good for kids?

OK, back to the Old Chevy. The kids always liked hearing stories about real life. And the life I knew best was my own. So each night we would pick a topic and night-after-night Dad would tell a true story about a list of things from my real life. For about a month we did a story every night about a different job I had. Another month was easily handled by the houses or apartments where I had lived. My favorite collection of stories was about the cars I had bought and sold over the years. Like the time I drove my Dad’s ’57 Chevy off the curb and tore the duel exhaust system right from the car. My Father heard me coming a mile away and as his anger built up he formed a plan. When I finally hit the driveway he was waiting for me and simply said…”Thanks…now we can get rid of this thing.” We drove it to a used car dealership back in 1967 and traded it in on a 1963 Green VW Bug. Oh, yeah, we got $75.00 for the pristine ’57 Chevy with no exhaust system.

But that’s not the Old Chevy we are focused on today.

Keeping up my love of old cars…when success came I would occasionally buy an old car to spoil myself a little. I used my kids as the excuse for the good thing I was selfishly doing by choosing a vehicle that would eventually be for one of them. Hence; eleven years ago after one particularly good deal, I bought a 1973 Caprice Classic Convertible in excellent condition. Sweet ride. I called it a Land Yacht because it was longer than anything on the road today…in fact, garages built today would not be long enough for this car if you actually wanted to walk in front of or behind it. My selfish excuse for the purchase? Kelly’s birth came in 1973 and this would be her’s one day and that was enough to encourage me to buy it.

Eleven years and as my wife said yesterday…maybe eleven rides. At least that is how many times she sat in it. For me it was quite a bit more. I love this big boat of a car. Someone had given this car the most beautiful paint job and it still looks gorgeous today. But as I move ahead in life I also understand that the Old Chevy requires attention each Spring and Fall for the maintenance and care of it. And so I approached my daughter Kelly and said…“It’s time for the Old Chevy to live at your house, so you and Jimmy can take care of it.”

Kelly sort of shocked me. “Why don’t you sell it and give us the cash instead.” Now this was a surprise, but one I came to understand and respect. As the mother of two small boys she saw the Old Chevy as something her family wouldn’t enjoy. It would consume her garage, pushing toys and storage shelves aside. It would require time and money to just stare at it once in a while. And, it would not get the boys to Disneyland in as much comfort as the money would. I admired her candor and put the car up for sale.

I live on a “country road” that wanders through small houses on large lots, established before builders started cramming large houses on small lots. Sunday morning I washed the car and parked it on the side yard with the top down. A small sign showing the price and my telephone number was standing next to the car. There would be no ads placed. No Hemmings Motor News needed here. In less than one hour it was sold. Unbelieveable.

I expected that the warm sunny day Sunday driver’s would stop and look. I knew a few would linger and wonder about the past and how much they wished they could drive this behemoth. I didn’t expect every person driving by to make an offer. Three people wanted it within two hours. Monday morning came and so did three more buyers. It wasn’t even on the side lawn anymore and people were still coming. One guy brought the magical fairy dust it took to get the car…CASH. It was all his, with final delivery of the car next week when he surprises his wife with this gift. (It’s Mother’s Day this week and I wonder if Maggie wants a new old car?)

One guy offered to start bidding against the buyer and begged us to re-open the bidding. He knows my brother-in-law and he even played that card as Doug called to ask if there was anything I could do to get his buddy the car.

Kelly will be thrilled when she reads this. Her cash is coming. My wife is thrilled that one of the eight cars and trucks out back will be going down by one. The businessman in me wishes I had a few more Old Chevy’s because the buyers are everywhere and I have nothing left to sell them.

Read Comments and Add Your Own

Let's talk some Green...

While you worry about the planet warming and the Ice Caps melting you and your family are standing in quicksand and as you sink into the abyss everyone ignores the fact that soon you may be gone.

Green my ass.

Let’s start worrying about the real destruction of green that matters. The destruction of green that is pitting husband against wife, business partner against partner, tenants against landlords, and creditors against bankers. The green I worry about is the American Dollar. While you focus on trees and ways to waste time and money turning food into gasoline, I want a movie about the real inconvenient truth…Families are in financial trouble!

Wake up people. Get the “F” out of debt. Stop feeding the credit beast and start making your life simpler and less chaotic. Al Gore makes a movie about the planet imploding and suddenly we take every stalk of corn and shove it in the gas tank while people go hungry. It’s more important that we “get there” than that we feed people.

Kids in school have no practical life skills. They have no idea about history. Forget teaching engineering, we outsource that stuff. Spelling, hell no, they hit “spellcheck” if they feel like it. Our children know almost nothing about money, where it comes from, how to earn it, or the smart ways to spend it and most importantly why you need to save some of it.

We now put fuel ahead of food. Test skills ahead of real education. And we are trying to legislate ways to keep people in houses they should never have been allowed to buy in the first place. And the government wants to keep people in those over-priced houses, at your expense. We all buried our heads and let the market shift to higher prices over the out-of-control lending and appraising years and so today the local government needs the higher established tax base and they will never admit we should let markets collapse and re-settle at accurate prices, leveling the playing field again. It won’t happen. Ever hear of the government lowering the tax assessment value of every home?

Some people say if I want to succeed as a writer and speaker I must concentrate on being positive. People don’t want to hear anything negative. OK.

I am positive your life will be better if you stop spending more than you make. And I am positive if we don’t start getting better elected officials they will bankrupt the country. Is that positive enough?

Read Comments and Add Your Own

American's are Ostriches...

When the major manufacturers in America moved their plants overseas, causing hundreds of thousands of people to lose their jobs…American’s focused on the fact that you could buy products cheaper. Those losing their jobs could just be re-trained.

As the “Rust-Belt” became a reality and the tax base of those areas of the country grew larger some cities almost went bankrupt from the lack og industry and jobs. But look…the new Wal-Mart just opened and we can get a six pound jar of pickles for three bucks. Your neighbor is out of work for ten months but he can get a bottle of Tylenol with 1,000 headache tablets for less than a ten spot.

The bankers took care of everyone over the hardship of changing America by extending credit like you wouldn’t believe. That out of work neighbor just got a new car and he cuts his lawn on his new John Deere bought at the Big Box Store for cheap…on his new credit card. And looking for a job is tough when you have to be home to tell the swimming pool guy what you want done this week. Thank goodness your wife has a good job with benefits.

But as Americans have slept a funny thing happened to Corporate America. They moved out of the country. Not just the factories or the headquarters so they don’t have to pay taxes anymore. They even left the American Customer home alone. They found out the dollar is worthless and the Euro is King. So they started exporting their goods formerly made in America but now made in the Pacific Rim to the people in Europe who have cash and no debt, so they can buy whatever they want. Oh yeah, over there they also have jobs because they haven’t put their head in the sand like we have.

Politicians scream about the shrinking middle class. And then they tax them to death and give the money away, sometimes to large corporations who owe taxes but don’t pay. There was a report this week that 80 Corporations with Government Contracts owe $800,000,000.00 in taxes, yet the government keeps sending them checks because one hand of the government doesn’t know what the other hand is doing. Medicare is going broke. Social Security is going broke. The banks now understand that Americans are going broke so they have cut off new credit…but people used to borrow on one card to pay off another card every month and now they can’t do that. Foreclosures are up 112% in one year. And the worst is yet to come.

Get your head out of the sand. And do something about this for yourself, don’t wait for someone else to help you. Stop digging the hole deeper and start climbing out instead. I have faith that in America you can achieve success in any kind of Economy. But your head can’t be stuck underground, you have to be in the real world to make it happen.

I plan on doing some things different. I am willing to elect people with no government experience. I may work a few hours for some new Office Seeker this year who isn’t burying his head in the sand. I will shop at a Mom-and-Pop place to give them a break. I will give away 1,000 of my books to business owners who need the information to make it. What will you do?

Read Comments and Add Your Own

Pre-Qualifying Leads...I bet you can't...

Why can’t we just go to the appointments where we can always close the sale? Wouldn’t that be far more efficient and make us so much more profit. Suppose we worked harder at pre-qualifying that lead and getting rid of the low probability ones that surely won’t close. I’ll tell you what…give me all the leads you want to throw away and I will out-perform you and make more money with your rejects than you make with the sure things you keep.

Bet me if you think I am kidding.

Of course it would be wonderful to spend all of our time just closing the sale and not actually chasing the sale. But that means you become an Order Taker and not a real salesman. My belief is that every aspect of the chase for those leads that don’t close adds something to your knowledge and helps you close more sales over time because you learn to deal with reasons why people say no. You learn more about your product, more about the value your company brings to the customer, and more about what the customer wants from those “no sale” appointments.

Now listen…my motto was always as follows: First you get the appointment…and then you decide if you want to go on the appointment. So, I do believe in a certain amount of qualifying before you spend time and money visiting the prospect. But, my qualifying has to do with whether or not the “suspect” meets the definition of one of our customers..period. I don’t ask if they are in a “buying” mood. Nor do I care if they have a budget for this expenditure. And I don’t care if they flat out say they won’t buy right away. If we have something they should be buying…and they are willing to give me the time to hear my pitch…I am going…and I am going to get the sale.

I honestly believed at every pitch I ever gave that the sale was mine…and no one else’s…whether I closed it that day or not. Every deal was “my deal” until you saw someone else advertising it. I believed this 100%. Every time. There were appointments that ended within minutes of my flying half way across the country…NO SALE…and there were some I walked away from knowing I didn’t ever want to do business with that prospect. But every trip taught me something. Every one. And I guarantee you there were shockers to me at some of the appointments…my first impression was, “Why am I here?” But because I was there and my Mantra was that the deal was mine…I worked hard to close it…and many times I did.

Pre-qualifying leads means you have a crystal ball. I didn’t have one. If you can see the future that well…start touting stocks for me. And please understand that the more times you hear NO the more you learn. Qualify the prospect enough to know they fit the definition of a customer for your business…but then accept the reality of the “numbers” in your industry and keep the appointments. I would rather see you establish the typical “closing ratio” for all salesman in your field and keep your personal score against those numbers rather than try to weed out the NO SALE leads, because I bet you can’t do it.

Read Comments and Add Your Own

Welcome

After 30+ years in business, I’ve decided that it’s time to share my hard knocks knowledge. Having worked in almost 200 bankruptcy cases and many other kinds of business failure situations, I have awarded myself a Ph.D. from what I refer to as the Herman School of Business. In this blog, you’ll read about starting a business, running a business, and, if the situation calls for it, selling a business; about being a business success and not a business failure. Welcome …

Categories

Archive of All Entries (155)

Recommended Books

Blogroll

Resources

Subscribe to the Herman School of Business

Subscribe by Email

Subscribe to the RSS Feed