December 2015 - Vol 10, Issue 12
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Ready for Whatever's Next?

Hard to believe that it is December already. On one hand I have spent the past three months working with clients on 2016 budgets, so my head is already in the new year, but on the other hand - it doesn't feel like 2015 is ready to end. So I find it difficult to write my usual December missive on what to expect for the coming year, but I am feeling pretty positive.

2016 is an optimistic year for business in general and the AV Industry in particular. In spite of the political machinations of a presidential election year (which started three years ago, but who's counting?) and the ever-present threat of the next recession, pipelines seem strong. Integration work appears to have legs well into 4th Quarter. Live Events' pipeline seems strong through 2nd Quarter - the longest lead times we have seen in a decade. Multi-year contracts are back in play too.

So what's an owner to do?

This is free advice, so use it at your own risk: Invest in growth. If your growth has been flat over the past two or three years, you are actually about 30% smaller because everyone else has grown. Make the investment. You have at least one strong year remaining where risk is low before you might need to draw back into your shell.

What does that look like, investing in growth? Take a look at this piece on my new website: Five Keys to Intentional Growth.

In other blog posts:

One of the key concerns of the sales team I advise is the increase in projects requiring multiple bidders. As a result, the cost of customer acquisition is on the rise.  We all talk about the commoditization of products and even services, but I think we should also focus on the commoditization of the proposal [...]...»

Do you want choices about where and how to grow, what
strategies to pursue, what products and services to include? Do you want to be attractive to new business, the best employees, and strategic partners? Are you ready to be profitable, have cash reserves, and access to strategic credit? [...]...»

Happy Holidays!

Tom

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AV Stumpfl USA is A Gold Sponsor and longtime supporter of AV Matters newsletter and website. Tom Stimson had a chance to catch up with Briana Yule, Sales and Customer Service Supervisor.

Tom Stimson: Briana, thanks for sitting down with me. You've become the face of customer service at AV Stumpfl US - anyone that has visited your booth at InfoComm or LDI has surely met you. What is it like to work in this crazy business?

Briana Yule: For being such a large industry, it feels very small. Our customers band together to help one another in a pinch, share ideas and stories which progresses the industry as a whole.

Tom: I take it that is not what you expected?

Briana: Coming from the opposite end of the spectrum with a background in medical, I was most surprised about the laid back atmosphere that comes with the Audio Visual industry. In a rush situation, they are still relaxed and focused on the details of the event/show as opposed to being in a tailspin.

Tom: Not everyone has heard of AV Stumpfl. What's your elevator pitch?

Briana: Ok, here it goes...AVS sells innovative, high quality projection screens and accessories. We work with our customers to provide everything from standard, portable folding screens to custom designed, permanent installs. We go above and beyond to exceed each client's expectations.

Tom: Brilliant! AVS is known as a game changer, but with the evolution of projection equipment, why are screens still important?

Briana: With all the changes in the marketplace especially in terms of technology, a superior projection screen will always be needed to give the customer the best image possible. When so much of content is now HD video, you want only the best in projection surfaces. Our customers look to our products to provide the durability and flexibility they need to ensure that content shines.

Tom: I have to add that AVS is really well-known for its frame technology. They are super-durable, right?

Briana: Our customers are most excited about the quality of our product. Our frames last a long time with little or no maintenance and your image won't develop a sag from prolonged use. Rental companies appreciate that! But in addition to that, we back that up with a five-year warranty. Our customers know that their capital expenditure will deliver great ROI for a long, long time.

Tom: For someone who didn't grow up in AV, you seem to understand what makes us tick. What's the hot product or latest trend in screens?

Briana: Our newer products, the borderless Full White, Curve, and Full White Curve are getting more and more attention each day. They provide custom designs for all applications and a level of elegance for any event.

Tom: Full White are the screens I am seeing that look like they float in space, right? Where can folks learn more?

Briana: To learn more about AV Stumpfl USA and our products you can visit www.avstumpflusa.com. To get the best personalized experience you can either inquire at info@avstumpflusa.com or call 800-553-0961 and speak directly with our expert sales team.
What's New from The Stimson Group


Video Series: Closing The Deal Without Negotiating Price

Selling is not just about relationships. It's about the complete customer experience. When salespersons struggle with negotiation and closing, the root problem might actually be your marketing. Before we blame the salesperson, let's make sure your brand message and value proposition have positioned your company (and salesperson) for success.

In this twelve-part video series, Tom Stimson explains the qualities of a brand, how to develop a brand promise, and most importantly - how to tell brand stories that elevate your value before you talk about price. Tom will share humorous lessons, provide helpful exercises to work with your sales team, and show how you can establish greater value long before the negotiation begins.


bestpracticesBest Practices Blog


 

It's not enough to expect better for and of yourself, you should anticipate more from your customers. I call this Getting Ahead of Customer Expectations. Indeed, you should be highly invested in anticipating what they will do next, what their expectations are, and how you are going to fulfill them. The fundamental mistake most small businesses make is believing that the product and business model they have provided is
 adequate for customers needs, and that customer demand can be altered through marketing and advertising. It's rather arrogant when you think about it. As small business owners, we are all inherently flawed and to presume that the customer should adapt to how we want to do things is insane. Yet, customers make accommodations all the time for poor business models thereby reinforcing these false assumptions.

Getting ahead of customer expectations is the process of thinking like a customer, for the customer. This is nothing new, but small businesses are the least equipped to embark on an unbiased exploration of consumer perspective. Nonetheless, our success depends upon understanding how buyers think, which means unlearning that what we want to do for customers is somehow more important compared to what they expect or need.

Let me share an example. I had been invited into a large media production company to address operational issues, when I was suddenly pulled into a meeting about pricing. An Account Executive had requested a budget from one of the production teams for a video and was upset that the price they came back with was outside of "customer expectations". The fact that the AE had not provided a budget or even asked the customer for one was curiously not a point of contention. At this point no pricing or proposal had been presented to the client. This meeting was to convince the production team to do the work for less money.
The AE had read a blog post of mine about getting ahead of customer expectations and she felt that she was doing exactly that. She was sure the customer would only spend $10,000 on the requested project and the team had developed a $15,000 budget. She was cleverly leveraging my blog to help her win this debate. The conversation went something like this:

Account Executive: "In your blog you said that we should stay ahead of the customer and anticipate their needs."

Me: "Yes, but didn't my blog also say that we needed to ask what those needs are? What budget did the client give you?"

"Well, I didn't ask - it's our job to create the budget."

"I see we have a semantics problem. What is the value of this project to the customer?"

"I just told you, they do not know. We haven't told them what it will cost."

"Then why can't you tell them that it is $15,000 - isn't that your team's estimated budget?"

"I know the customer won't go of that! It's too much."

"Did you and the customer have a conversation about what they were willing to spend? Were any dollar figures addressed?"

"No, but we did a project for them last year and it was about the amount of money, but it was a much bigger job. So I know that they won't spend that this time."

"Did you share that with the production team before they put together this comprehensive proposal?"

"Well no, but..."

This went on for a while until we agreed that our lack of information about what the customer expects would dictate a three-option proposal and an in-person presentation to close the deal. The point of sharing this awkward conversation is this: unfounded assumptions of customer expectations will adversely influence our response to customer needs.

You might not be surprised that the production team make the same mistake in their budgeting process. Let's look at the conversation on the other side of the table.

Me: "I know there's more than one way to produce a video. How did you come to this price?"

Producer: "This is what it takes to do it right."

"Were there clues in the request that indicate the customer needs this level of finish?"

"Not really. We don't want to do schlock work and have that out there where it reflects poorly on our company. We want to be known for high quality videos."

"So, if the client really only has $10,000 to spend, you do not have a $10,000 solution?"

"Sure, but they won't like it."

"How do you know?"

"I just know..."

I wish I could say that the AE and the Producer were out of the ordinary, but alas, no. What I can say is that they both fervently believe that they are doing what is best for the customer.

By now you have probably realized that "Getting Ahead of Customer Expectations" has two meanings. The first is when we assume what the client will think as both of these characters have. Both the AE and the Producer have taken on the responsibility for interpreting what the customer wants, without properly involving the prospect. The second is the more useful interpretation, that we learn enough about the customer that we can see where their expectations are going and position ourselves there. The former assumes that the seller knows more than the buyer. The latter recognizes that no one better understands the customer than customers themselves.

Clearly this meeting was not about the customer. It was an example of the internal battles within this organization - a power struggle over who has the best interests of the customer in mind. My conclusion was that both the AE and the Producer were ignoring their responsibility to the customer by projecting their own expectations on the project.

The lesson here is that we cannot bend customers to our will. Rather, our job is to flex in order to meet their needs. Too often we set ourselves up for rejection, but then carefully engineer the timing of the rejection so that it doesn't occur in person. How often have you sent a proposal without knowing for sure whether it met customer expectations? And did that failed proposal strengthen or weaken your position with that buyer for next time?

Tom Stimson MBA, CTS helps owners and management teams rediscover the fun and profit that comes from making better decisions about smarter goals. He is an expert on project-based selling and a thought leader for innovative business processes. Since 2006, Tom has successfully advised over two hundred companies and organizations on business strategy, process, marketing, and sales. Learn More at 

Closing Thoughts


Getting things right is not good enough. The goal is to get closer to what the world needs. It all starts with making mistakes quickly.
- Tom Stimson

Who's Tom Anyway?
About Thomas R. Stimson, MBA, CTS

Tom Stimson helps small business owners and management rediscover the fun and profit that comes from making better decisions about smarter goals. Tom's clients learn how to move past the bad math and stagnant thinking that overcome so many entrepreneurs. 

"My clients often struggle with day to day issues, which hinder their ability to focus on strategic goals or even try new ideas. Together, we will learn how to set aside the noisy distractions of past decisions and make stronger, more strident choices. Before we are through, you will learn to love your business again." -Tom 

For more information visit the website.