AV Matters
The Stimson Group Newsletter
Jan 2008
Vol 2 Issue 1
In This Issue
Survey Preview
Best Practices Installment
Reader Feedback
Q&A
Book Review
About The Stimson Group
Quick Links
Happy New Year,

I'd like to welcome our new readers and encourage everyone to use the confirm link at the top of the page to manage your subscription. If you would like to share this issue with someone else, use one of the forward links on this page.

Last month's cable article generated a lot of comments. There are a few in the Reader Feedback section below. This month's Best Practices segment is about customizing your proposals for the specific audience. I look forward to hearing your thoughts on this topic as well. 

Finally, I have added a brief section recapping last month's survey and previewing this month's. I am always open to suggestions for survey subject matter. What do you wish you knew more about? Thanks for reading!

Best Wishes,
 
Tom (TR) Stimson, CTS
My Direct Email
Website
R&S Monthly Trends Survey

December '07 Results
It wasn't that many years ago that we did business using the Yellow Pages and fax machines as primary business tools. My first email system only worked inside the office and being able to send faxes from the computer was absolutely the biggest timesaver ever. Now email consumes an inordinate amount of time when compared how much it saved when first introduced. The December 07 Trends Survey asked about how you are dealing with the unproductive aspects of this mission-critical office tool - email.

Half the respondents work at firms with over forty employees and half of all firms have either a dedicated IT person or a corporate IT department. Two-thirds either agree or strongly agree that Spam has become a major distraction. Spam filtering tools have become commonplace with rules based programs and blacklists receiving the most votes as either effective or very effective methods.

The final question was about digital security and the changes implemented at your firms over the past couple of years. In general the responses suggest that IT security has become a major focus. A few answers sound like things may have gone a little too far. Download the results and decide for yourself.

January Survey Preview
This month's survey explores suppliers, sub-rentals, and wholesalers in particular. Share your views and learn what everyone else is thinking. Take the January survey at this link.

Best Practices Installment
Better Proposals: Three Times Three

Get the bid out, win the job - that's how it works. Right? I have debated the nature of proposals with many people over the years, seen many of my former competitors' and even more from the industry at large, and come to one conclusion: any of those proposals would be right for somebody. There is no one correct proposal format, approach, or style because there is no one customer. The proposal you submit needs to be tailored for the particular customer, but it also has to mirror the way(s) that you do business. The options are theoretically limitless, but when you get it right - the results can be more of the business you want at a prices you can live with. Let's narrow down our options by delineating proposals in terms of three's. Three operational preparations, three client decision factors, and three proposal sections equal many more opportunities to close business.

Operations
Whether you are an Integrator, Rental Company, or a Manufacturer - you probably deliver three levels of operational services. The simplest thing we all do is a box transaction. We provide information to help the customer make a decision and minimize value-added services to keep costs down. At the next level some kind of integrated package is involved such as installation or rental delivery/setup. A manufacturer might need to do demos or create product packages to meet the client's needs. The third level brings all your resources to bear. A design & build installation project, a large staged event, or a customized manufacturing order would be typical operational responses. Three levels: Box - Package - Customization. More times than not, a particular project or request contains elements of all three levels. The logical operations manager is not going to treat a box pick differently just because it is part of a custom project. In other words, he wouldn't have a project manager count connectors just as a sales manager wouldn't have a multi-million dollar sales person take box orders by phone.

Customers
I parse customers into a parfait of decision factors made up of confidence, value, and control. There can be elements of all three in any customer, but in general one criteria is more important to them than the other two. Understanding the three styles is key: Confidence customers are looking to you too be the expert and make them feel comfortable. They want to know that you have things handled, but this goes beyond just telling them that you have it under control. They have to feel it. Value customers are more concerned about pricing and getting bang for their buck. Value customers want to see their options and make a judgment on how best to spend their money. These are not cost-is-everything customers, which are a breed unto themselves and another discussion entirely. The need to feel in control drives the third decision criteria. These folks want to be the expert themselves or at least minimize their dependence on your contribution. Control customers seem to be everywhere, but in my experience the control element of buyer personalities comes out most when their needs for confidence or value are not being met. However, there are specific buyers who are paid to be control customers - production managers, designers, and consultants.

Each buying style exists in varying degrees in each customer in an order of priority. You will recognize confidence as a relationship-maintainer in many of your best customers. When you slip up and cause them to lose some of that confidence, they will shift decision criteria to their next factor. They may become value-sensitive or turn into a control customer. It's at this point that we often give that customer a reason to look elsewhere. The bottom line is that if you meet their decision-needs, you have a much better chance of winning the work now and in the future. For potential customers your proposal will confirm for them whether or not you are capable of meeting their needs.

Proposals
Which brings us the three proposal elements: Cover, Scope, and Pricing. Proposals - regardless of the product - need to contain some aspect of these three elements. These are then used to address the three customer decision criteria - in whichever levels that customer needs. The cover letter can be a short introduction, but for a buyer who has a very high confidence need that has been well-prepared by the salesperson. It can simply say we understand your project and we can meet your expectations within your budget. Done deal, it just doesn't happen as often as we'd all like. The second element is the scope of work. This describes what you will do (and not do) in a way an itemized list cannot. The third element is the pricing itself in whatever level of detail is appropriate for the project. This is the traditional proposal order, but depending on the customer your proposal may need to be structured differently.

At first glance you might be tempted to line up the decision criteria of Confidence, Value, and Control with the proposal elements of Cover, Pricing and Scope. There is some correlation; Value customers will gravitate the pricing, but they also have to understand the scope of work in order to make their judgment. Control buyers will scrutinize the scope to make sure you understand what they asked for, but they want their value needs addressed as well. Knowing how they will make their decision should help you focus your proposal to best meet those needs. Completeness and price are the ante for any proposal to be considered. To close more orders your proposals need to show your customers how you will meet their unique needs and address their decision criteria.

Tom Stimson, CTS
Comments or Questions? Send me an email.
Reader Feedback
Last month's article on cable management generated some responses - mostly from freelancers and other support folks. They want you to know that they see this problem everyday, but I will let you see it in their own words:


"Tom: Nice essay on cables in your latest newsletter. As a person on the other end of the supply/labor chain, I can vouch for the points you make. I can remember holding up a desperate-for-time load-in with a crew already on overtime, just because a shop had left out a critical control cable. Everything was delayed, and the shop had to send out a person with the cable, plus they ate some of the costs incurred. Just as you said, the cable, though not particularly cheap, easily would have been paid for by those costs, and the shop would have had an extra to live with the equipment. We on the labor end, although criticized for escalating costs, constantly see inefficiencies like these that could save us lots of time, and lots of the clients' money."
- James W. Utterback, Training Director, Local 22, I.A.T.S.E.
 
"TR, Always good to read your articles. Can you send this piece to every company that I work for (other than [omitted] and maybe one other)? We all get so tired of showing up on site to find woefully insufficient cable there, while you dig through the one combined BNC/RGB/XLR/AC cable trunk? Then, when you tell the AE that you don't have the cable to hook his (stuff) up, they look at you like it's your fault. Makes for a pleasing show site vibe . . ."
-Dave Young, Video Engineer and Projectionist

"Right on! I once watched an owner's eyes open up when he saw 5 shop guys on OT on a Friday looking for one adapter to complete an order.
Hum...5 guys on OT vs. a $20 adapter.....
Light bulb going off in owner's head...Priceless!"
-Bill Magod, Michael Andrews Audio Visual Services

"Here is a lesson I learned from my Broadcast days.  Each news shooter was assigned a truck and camera.  He was responsible for all aspects from cleaning the truck to camera maintenance. That included a cable case. If he lost a cable he had to requisition a new one.  If he lost a lot of them he had to answer to the CE (Chief Engineer). In Audiovisual (someday I will explain why I hate that word) each truck or each technician should have a cable with various cables and connectors.  That creates a sense of ownership and responsibility. One thing that amazes me is that freelance TV/film Techs always carry their own case or "diddybag" full of misc. tools, cables and connectors.  Most freelance AV techs in Seattle do not even carry a Leatherman on their belt."
-Richard Mcleland-Wieser, Presentation Rentals

Have a comment about anything you've read? Email it to me.
Q&A

Hi Tom,
We've been discussing the cable article and beefing up our inventory to cover the cross rentals. My question is what you would suggest in the "package"? We've kicked around several suggestions but I don't really think any of them is going to save us the time I would like in preparation.

Glad to hear that the cable article provoked some discussion. There is no short answer to your question, but I suggest that you start with whatever your operations staff considers a typical order. I would look through the past several months orders and pick a group that are basically the same. For instance a one screen breakout with podium mic, two wireless, and two client computers.  Could you agree on a stock package of ac cables, power strips, VGA-VGA, BNC, XLR, RGBHV, gaff tape, etc...? For small packages like this , figure out what you know you'll need and add 25% (which may be only one cable, but you want to have some contingency).

Depending on what your business mix is like, you may not need blended packages with multiple cable types. In my background at a large stager, we had small, medium, and large of everything. A small AC kit would handle a small meeting or two breakouts. It also contained power strips and gaff tape with its selection of AC cables. A small mic cable kit would support a 16 ch mixer or a couple of breakouts. It was not unusual to send two mediums of a particualr kit
if we were out of larges or supplement a large with a small or medium.

Cable kits are important, but you want to create accessory kits as well. You might call it a work box, show kit, or crash kit - but in every sense it is all the little adpaters and specialty cables that you MIGHT need. These need to be defined and QC'd just like everything else. Once you start neglecting your show kits the process of searching for little items starts all over again. Remember, the time to re-stock kits is in between - in between show pulls, in between busy days, in between now and when you go home. And the key to making this all work is investing in enough cable and accessories that you always have stock to keep the kits in service.

Have a question? Email it to me.
 
Another Must-Read Book
What Clients Love

What Clients LoveHarry Beckwith has written several great books including another I recommend called Selling the Invisible. This month I want to profile What Clients Love because it is so accessible. Anyone can pick this up, open to any page, and find something that will make them think. It contains hundreds of short chapters ranging from twenty-word snippets of wisdom to simple essays on everyday business challenges. I often use it to research an idea or just to get inspired. To sum up, Beckwith is a marketing genious and if you want to punch up your sales and marketing efforts this is a great place to start.

Order this book on Amazon
Art of SalesAbout Thomas R. Stimson, MBA, CTS

Tom Stimson is celebrating over twenty-five years in the communications technology industry.  As a Consultant, Tom helps companies build smoother operations, focus sales, and increase profit. For more information visit the website.

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