Economic Bracket Busters

Depending on which statistician you believe, the odds of filling out a perfect bracket – that is, correctly identifying the winners of each game in this year’s NCAA basketball tournament – are roughly 1 in 150 million. If you don’t believe me, or think I can’t be right, I invite you to Google ‘odds of a perfect bracket’ right now (I’ll wait.) What you’ll find is that those numbers are actually optimistic; they make assumptions about how likely you are to be right, instead of just filling out random entries.

Since I’m a big fan of math, and to put these odds in perspective, I invite you to think about it this way: if you had a 90% chance of choosing every game correctly, your odds of a perfect bracket would still stand at a hefty 1 in 763. In fact, if you go online right now, you can see how the experts – coaches, broadcasters, analysts, and even the President – think things are going to turn out for the 64 teams that began playing today. It’s a virtual certainty that most of them, despite their best efforts, will get large portions of the picture wrong.

If you’re wondering why I’m bringing all of this up, it isn’t just because my bracket is unblemished, so far, after more than half a dozen games. I’m mentioning it because just about any person living in North America has probably been subjected to an amazing amount of basketball opinions and data over the last week, all of it aimed at correctly predicting the tournament winners. But inevitably, once the games actually begin, we find that many of these predictions, assumptions, and ideas prove out to be false. Instead of scoring a few dozen points, that seven-footer from the South breaks his toe; a team that looked like a sure contender loses to another that’s never been on television before; a sixty-foot half court heave at the buzzer finds its way into the bottom of the net, and what we thought we knew turns into what we know we thought.

All of these twists and turns give the tournament some of its charm; not knowing what will happen makes the whole thing a lot more exciting. But it also serves as a great reminder that, no matter how much a thing is studied and dissected, no matter how much data is available, there are always a lot of unknowns in dealing with human endeavors. Keep that in mind as you listen to the daily floods of economic reports and predictions that seem to be coming at us from all sides. Yes, there are a lot of experts out there who have forgotten more about the economy than most of us will ever learn; but no, that doesn’t necessarily mean they’re going to be right about how long this recession is going to last, or how severe it’s going to be.

The best thing any salesperson can do in this economy is keep working to make sales happen and position themselves for the future. That’s what Selling in a Recession is all about. If you haven’t picked up a copy yet, I invite you grab one today. I might not be able to tell you when this recession is going to be over, or how bad it’s going to get, but I can share what I’ve learned about finding new business and increasing your income in a tough economy.

Finding the Openings

AIG – the undisputed king of bailouts so far – is in the news again today. Apparently, taxpayers were less than pleased to see that the financial giant, which is drowning under the weight of its own unrelentingly bad decisions, thought it would be a good idea to spend more than $165 million in bonuses. You know, for all the great work everybody’s been doing while the ship goes down.

The CEO is on Capital Hill today explaining that the bonuses were necessary to stay competitive and meet contractual obligations. I don’t know if there is any truth to these statements, and frankly I don’t care. Because regardless of what AIG is doing with the money, I can tell they’re already losing one big, important battle – the struggle for public opinion.

From here on out, every cent they pay is going to be scrutinized, and most anyone who can read a newspaper or flip on the news has decided that they can’t handle things very well. Obviously, this isn’t good for business. Bonuses aside, I’m guessing right now is not a great time to be a sales rep over there. AIG’s clients and customers can read the headlines, and they know the company is in all kinds of hot water. Think they might be open to hearing offers from competitors?

The fact of the matter is, bad news creates openings for smart salespeople. By finding out which firms in your industry are in the news for the wrong reasons, you can pinpoint exactly whose customers you should be targeting. Have a prospect who’s always been happy with XYZ Corp? Well, if XYZ is in the news for laying off staff, mismanaging money, or outright fraud, now is the perfect time to find out if they’re having second thoughts.

On the other side of the coin, there are going to be some of you out there who are on the wrong end of this dynamic. If your own firm is the one being torn to pieces in the media, use these weeks as a chance to get yourself in front of your customers for some one-on-one face time. Remind them that, even though things are a bit chaotic right now, your company has a long history and is going come out of the storm stronger than before (and if you don’t actually believe this, find a new job immediately.) At the same time, make sure they remember that you are the one taking care of their business, not some far away executive.

Recessions are all about challenge and opportunity, and the media is creating a lot of powerful openings for smart salespeople. Pay attention to the headlines – and what they’re saying about you and your competitors – and use what you read to find new customers.

How Long Will the Recession Last?

Ben Bernanke, Chairman of the Fed, voiced his opinion this morning that the current recession should ease up within the next 12 months and give way to some solid growth. Does this mean we’re out of the woods?

Well, maybe and maybe not. I certainly don’t have Bernanke’s background and resume, but if there’s one thing I do know about economics, it’s that it’s an uncertain science. In other words, spending and confidence might be back to normal tomorrow, but they also might not. What’s more, I know that it’s his job to help instill that confidence, so I’m going to take his statement with a grain of salt.

I mention all of this today because there are lots of salespeople out there who are taking a ‘wait it out’ approach to the recession. Hold on long enough, they figure, and things will get better. In the long run,  of course, they’re absolutely right. But burying our heads in the sand, or waiting for better economic weather, entirely misses the point: a recession is a great time to grow your business!

So while the rest of the world is hanging on every word that the big name economists utter, take a more proactive approach and get busy selling. There are a lot of small buyers, bargain hunters, and underserved clients out there. Now is the perfect time to add them all into your client list. Certainly, the recession will end, sooner or later, but the question you should be asking yourself isn’t what month or year it will be over – but how much money are you going to make in the meantime, and how many new customers you’ll have when it is.

Changing the ways we buy

CNN reported this morning that auto mechanics are seeing an uptick in business lately, as consumers are deciding to keep their cars on the road rather than lay out the cash for a newer model. As a few of you noticed already, this was exactly what I predicted in my book, Selling in a Recession.

Unfortunately, this doesn’t make me a genius (the whole thing is pretty much common sense, and it’s happened in past recessions) but it does underscore the changing way that the public is thinking about the things they buy. Most people, instead of checking out that new Lexus or planning a trip to the Bahamas, are thinking of ways they can cut back. As a salesperson, this information is incredibly important – people are telling us not only that they’re worried about holding onto their money, but that they’re willing to spend a little more on what they already have, if it means that they don’t have to fork over a bucket of cash for something new.

I don’t know what business you’re in, but this shift is probably starting to show itself in your orders, too. Factories are being refurbished, but new facilities are being delayed; used office equipment and extended warranty plans are more appealing than brand new models; upgrades are looking better than new pc’s and networks. There are still sales to be made, but you should be following your customers’ needs, not trying to get them to make bigger investments than they can afford.

Take a look at your industry – and your clients – and try to figure out where you can help them save money by making their previous orders last a little longer. Once you’ve done that, ask them who else they know that could use some help trimming their budgets. In most businesses, the commissions on add-on plans or accessories aren’t much, but making a small sale today is better than not making one at all, and it leaves you in a better position to move big-ticket items down the road when things pick up.

Back to Basics

Raise your hand if you were sitting around this morning shopping for a new yacht, or a private jet to match the one you already got your spouse for the holidays… Ya, me neither. But here are some things I did buy this week: gas, groceries, office supplies, and even a few new socks.

The point to be made here is that even though the economy is slow, there are some things I that you and I still buy. And regardless of whether you sell to businesses or consumers, there are things your customers are still buying, too. One of the best ways to stay afloat and grow your business in a recession is finding those everyday staples and using them as a springboard to something bigger.

I wrote quite a bit more about this in my book, but for the moment, think about it this way: making small sales is usually a lot easier than making big ones. But if you can get your foot in the door, no matter if it’s $10 or $10 million, then you get a chance to show the people who buy from you what kind of pricing and services you can give. Pretty soon, that one small order could turn into two or three, along with a referral to somebody else who has a little bit of business to do.

Are all of these tiny orders going to make you wealthy? In most industries, probably not. But they will keep the cash register ringing, and keep you in a strong selling rhythm. Besides, when the economy starts to turn around, who do you think these folks will turn to for their bigger purchases? Some vendor they found on the internet, or the committed professional who stuck with them and did the hard work with them while they were struggling through a recession?

Remember, there are three parts to selling in a recession: adapting your approach, outselling the competition, and positioning yourself for the future. Making small sales is a great way to do all three at once. 

It’s never polite to brag…

…but I want to take a moment to thank everyone who took the time to preview my book prior to its release. Here’s what a few of the experts had to say:

“Matt has uncovered the secrets to selling in this tough economy. If you haven’t read Selling in a Recession, then you’re probably losing business to someone who has.”
-Jim Pancero, Author of You Can Always Sell More

“The single best resource available for a salesperson facing a stiff economy.”
-Carl Henry, author, sales coach and creator of The MODERN Sales System

“…spot on with its recommendations and tips.”
-Jim Cathcart, author of Relationship Selling

“This book is an immediate must-read. This economy is a challenge for anyone who has to sell. Matt doesn’t just help us understand the situation, but also what to do about it now.”
-Thomas J. Winninger, Best-Selling Author of Price Wars

“This book is a real life-saver for any salesperson working in this tough market.”
-Brian Tracy, Author of The Psychology of Selling

“If EVER there was a right message at the right time, surely it’s Selling in a Recession. This book can help you!”
-Joe Calloway, author of Becoming a Category of One

“If you’re in sales, then stop worrying about the economy and pick up a copy of this book NOW.”
-Debbie Allen, author of Confessions of Shameless Promoters

“Recessions always produce the sweet smell of success for salespeople who are paying attention. Read Matt’s book and become one of the survivors.”
-Ed Brodow, author of Negotiation Boot Camp

It’s Time to Break the Rules!

If you’ve been in sales for more than five or ten minutes, you’ve already heard that selling on price is one of the deadly sins. Great salespeople, we’re told again and again, fight price with value, realize that it’s never the real objection, know that customers are always willing to pay more than they say, and so on and on.

Well, with the economy in the tank – and not coming back any time soon – I think we can all finally agree that price is an issue for most of the people who buy from us. Some of them simply don’t have the budgets they used to, and others have been waiting for this exact moment to buy. That’s right! There are actually men and women out there, families and households, who relish the fact that the fabric of capitalism is showing its frayed edges. It’s not that they’re communists, or that they enjoy watching the misery of others… it’s that they want the very best deal they can get. And now that the world’s on sale, they’re going to get it.

Think back through your prospects for the last few years. I’d be willing to bet there are a handful of folks who never bought from you because, no matter what you did or tried, the price was just too high. Well, the fact that these folks didn’t buy is good news now, because they’ve been hoarding cash, and they’re probably ready to spend some of it.

Making a deal isn’t going to be as simple as calling them up, however. You’re going to need to let them know it’s the deal of the century – and mean it. Remember, these are the folks that wait for fire sales, look through estates and foreclosures for hidden gems, and stay up late scouring the internet for good deals. They can boost your bottom line in a recession, if you only approach them in the right way. And what would that right way be? Well, in the interest of space, not to mention my own sales skills, you’ll have to check out the book.

Take advantage of the recession by doing something most of us never get to do – selling on price! Done the right way, it’s a great way to pad your commissions while having some fun in a rough economy.

The Beginning of the End, or the End of the Beginning?

A poll of 47 leading economists was highlighted on CNN.com today, and it revealed that the overwhelming majority of them expect things to get worse before they get better. (you can check it out here: http://money.cnn.com/2009/02/23/news/economy/nabe/index.htm?postversion=2009022300)While specific opinions were mixed, as they always are, the general consensus was that we should continue to expect job losses and decreased profits to keep coming at us throughout most of 2009. The majority of those polled were optimistic about 2010, but then again, many of them thought six months ago that we’d been a better spot by now – and we clearly aren’t.

As if that weren’t enough, a separate poll showed that three out of four Americans also believe that the economy is getting worse. And while these people might not have Ph.D.’s after their names, you’d better believe their opinions matter. Because if your prospects and customers believe that money is tight, then it’s going to be, no matter what you say to the contrary.

So what should we make of this? Is the sky really falling? Readers of my book know where I stand on this, but for now, let’s just take a look at the facts at hand: we are in tough economic times, and things are probably going to get a bit choppier before the sun comes out.

For the smart salesperson, though, this isn’t necessarily bad news. That’s because you and your company might be hurting, but the competition could be hurting a lot worse. In fact, the huge degree of fear that exists around board rooms and kitchen tables across the globe at this moment make now an excellent time to start picking up business you might not have been able to win when things were easy. While other companies are going to be dropping personnel and products left and right, who’s going to be there to meet their customers’ needs with simple solutions and personal service? That’s right – you are.

The best way to deal with the bad economic news coming out these days is to take it for what it is. Yes, there’s still a recession out there. But then again, if you needed to read that on CNN today, then you probably weren’t talking to your customers enough anyway. So after you’ve taken a few minutes to grumble about the state of the world, take a few more to think about what this means for your customers and clients, and then use your recession selling strategies to start winning new business.

Selling in a Recession: 21 Tips and Strategies for Finding New Business in a Tough Economy, or Sales Prospecting Secrets, Sales Motivation, Negotiating Tips, & More to Increase Sales

Now available on Amazon: Selling in a Recession: 21 Tips and Strategies for Finding New Business in a Tough Economy, or Sales Prospecting Secrets, Sales Motivation, Negotiating Tips, & More to Increase Sales

Are you worried about the economy? Is the thought of bringing in new business in this environment keeping you up at night? Do you wish you knew how to survive – and thrive – in a recession? If so, this is the book for you. Selling in a Recession is the definitive guide for any salesperson, sales manager, business owner, or self-employed professional who needs an edge in this tough economy. Written in a brief, easy to understand format, it’s designed to fill you in on everything you need to know about finding business in a recession, including: What a recession really means Where to find new customers How to negotiate in a tough economy And ways to actually increase your income You won’t find academic discussions or feel-good messages in these pages, but you will find real-world advice on how to tackle a recession head-on. Times might be tough, but with the right skills and mindset, you can not only survive, but come out the other side with more customers than ever!

“This book is a real life-saver for any salesperson working in this tough market.” -Brian Tracy, author of The Psychology of Selling

“Matthew has uncovered the secrets to selling in this tougher economy. If you haven’t read Selling in a Recession, then you’re probably losing business to someone who has. Matthew has uncovered the secrets to selling in this tougher economy.” -Jim Pancero, author of You Can Always Sell More