January 2016 - Vol 11, Issue 1
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Happy New Year?

Are folks really happy about the arrival of a new year? After all it's just an arbitrary recycling of the calendar. Sure, the Earth rotates daily and circles the Sun annually - but let's face it, nothing actually changes overnight between December 31st and January 1st. Well, except for maybe things related to income taxes.

Still, with a New Year there is the hope of renewal and perhaps the resolution to try something new. We renew in business by restarting the counter. Most small companies begin their fiscal year on January 1 and, much like a sporting match, start keeping score anew. In the hopes of getting a better outcome in the coming year, many of us initiate fresh plans and ideas or redouble our efforts on the old ones. 

The rest of us of simply hope that doing the same thing will lead to a better outcome. 

I am not someone that makes personal resolutions (I seem to write about that every January!) because I have learned that if something is really important to me then I will get around to doing it. The fact that these decisions have occasionally occurred in conjunction with a new year is perhaps more statistical than intentional. Nonetheless, I am in support of anyone that creates New Year's Resolutions and strives to fulfill them.

To that end, I share my thoughts on what I believe are some timely business resolutions for 2016:

Here are my top five resolutions for my consulting clients in 2016: 

1)  Stop talking about price:
I know why your customers want to talk about price - it's because YOU do. Stop it. Most negotiations introduce the subject of pricing far too early in the conversation. Your top priority is to establish the expected value,..» continue reading

2015 was a great year for cutting edge articles, blogs, and webinars from AV Matters. Bookmark this page to revisit the pieces that inspired you, made you laugh, or said what you needed to hear. 

In closing, thank-you for reading and commenting on AV Matters. I am overwhelmed by your support and never tire of meeting folks that tell me that they set aside time each month to read the latest issue. 

I want to share a special thanks for our Sponsors. While AV Matters may be a labor of love, their ongoing support means it will never be a burden! I hope you will visit their websites and learn how they support you. 

Wishing you a Happy and Successful New Year!

Tom

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bestpracticesBest Practices Blog

The reason your sales and business development outreach isn't working...is attributable to a increasing lack of customer compliance. They are supposed to take your call, listen to your pitch, and by golly - just give you a shot at the order. Everyone gets the same consideration. Everyone gets a chance. These are the rules. Of course if customers followed the rules, you would always win because you have better people, products, and a nifty catchphrase.

At InfoComm AVEC 2015, author B. Joseph (Joe) Pine spoke about the realities of a frictionless marketplace. In his book The Experience Economy: Work Is Theatre & Every Business a Stage, he talks about how companies must form unique connections with customers in order to thrive and thereby he makes a direct connection between the customer experience and the economic vitality of the supplier. As market friction reduces, the importance of the customer experience increases. Personalized attention and customization has intangible value.

The Sears Catalog appeared in 1894. It was written in plain language, accessible to everyone, and made consumer and commercial goods more accessible to the average consumer. It was the Amazon.com of the time.
 
The promise (or threat) of the frictionless market is that buyer and seller, producer and consumer will be able to do business directly with each other. The consumer will seek the least resistant path to goods and services. Resistance can be measured in price, fit, and sensation. A fairly priced product that meets the consumer's needs can be overcome by a positive experience. A cup of coffee at the local 7-11 is inexpensive and arguably drinkable. Why would anyone pay twice as much for a Starbucks? If you are going to stop anyway, why not enjoy the experience of Starbucks? Isn't that the value proposition?

If you want customers to do business your way, then your way had better include something of value to the customer. Amazon Prime does this by offering the perception of savings on shipping costs for a modest increase in purchase price. The user interface is improved when Amazon identifies which products are eligible for the savings. The experience is enhanced even more when the most popular items are listed first, saving the shopper even more time. As a consumer, you can crowdsource your shopping, find the best price, verify availability, lock in shipping costs, get an estimated delivery date, and pay - all at the same time. Compare that to 'everything you have ever bought before.'

Conforming to how the chain does business is part of that experience. "Iced Half-caf Double Tall Non-fat Peppermint Mocha Without Whip" Anyone?
 
Great companies can convince consumers to conform, but how can the rest of us do this? Translating the kludgy transactional user interface of the AV Industry to an experience-savvy consumer is challenging, but increasingly necessary as margins for undifferentiated business continue to fall.

As Joe Pine said in his presentation at InfoComm AVEC, "Protecting the old-school rules of business accelerate stagnation." In other words, customer compliance comes from exceeding current expectations with fresh experiences, not from pulling the buyer backwards to your model.

Uber commoditizes transportation at a high service level - certainly higher than trying to wave down a taxi in Manhattan at five o'clock. And how has the market reacted to this service? Uber is now one of the largest companies in the world and traditional transportation is reeling. In the meantime, taxi services are battling to keep Uber out of airports, at least to keep Uber drivers from picking up fares. It's not working. Dedicated Uber business travelers will tell you that they get around municipal restrictions to protect taxis by taking a free shuttle to a nearby hotel or rental car lot and direct their Uber driver there. How bad does your taxi service need to be for customers to go to such lengths?

If your response to market change is to blame the customer, you've gone off the rails.
 
My point is, customers don't conform. They are remarkable in their ability to expect suppliers to change. However, not all customers want change. Many have learned how to leverage the status quo to their advantage. Some subset of sellers will always pander to the price shopper because the supplier believes that price represents the greatest friction in the marketplace. What warrants consideration is whether the price shopper would respond positively to a better experience? And, what portion of buyers are truly unbendable in their quest for the best price? Ask Amazon and Uber what they think.

What does this mean for the AV Industry? Given that audiovisual products and services are experiential in the first place, isn't it time we let the creative people that apply them help us better understand how to sell them?

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


Good Ideas are easy to come by. Figure out what to do with them so they won't get in your way.

How do you differentiate between good ideas and important ones? 

- 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.