The Lifeblood of a Business

Yesterday I watched a news report about a fascinating individual. Everyday he sets up a table and a chair on a curb in New York City and sells $5 potato peelers to passersby. Seventy-four years young, he rises at 4 a.m. every morning and sets up shop in time to catch the early crowd. He warehouses his inventory in one room of his Park Avenue apartment. Yes, he lives in a Park Avenue apartment. He sells enough of those $5 potato peelers to live in an expensive apartment in New York City and to save for his granddaughters' college education.

"Never underestimate a small amount of money," he says.

Obviously, this gentleman is an excellent salesman. Once someone has purchased one potato peeler, he suggests that the person buy three more. "Why should you buy three more," he questions, "when they last a lifetime?"

"Because you've got three friends, that's why!"

Although he never takes a vacation, he views life as one. "The secret to success," he notes, "is not doing what you like, but liking what you do."

We can learn a great deal from him.

Take a look at how much he does without a storefront, a business name, a permanent location, and employees, except himself. How does he do it? He focuses purely on the revenue-generating function of his business. He sells potato peelers, preferably more than one, to everyone who passes by. His entire day is spent taking in money.

Now I realize that not every business can function this simplistically. Most businesses do have storefronts, employees, and permanent locations. Most businesses must attend to many other functions of the business other than just selling their products or services. Most businesses, even small ones, have many systems which require regular attention.

What concerns me is that in the midst of tending to all of these functions and systems, many businesses lose their focus on generating revenue. They get "caught up" in the daily routine of tending the non-revenue-generating functions of their businesses and unintentionally neglect the revenue-generating activities. They set aside marketing, customer development, and publicity, instead taking care of building maintenance, inventory control, and accounting problems. Perhaps business people feel more comfortable with these activities or perhaps these activities seem more urgent because they are right in front of them, demanding attention.

In contrast, revenue-generating activities are acknowledged to be important but often do not seem urgent. At least, they are not urgent until the business needs revenue. Then, they become urgent. Then marketing gets attention. When the bank account is low, marketing, the business's revenue-generator, becomes important and urgent.

That's always too late.

Everyday a business does not work at generating revenue, the business loses money. The gentleman selling potato peelers recognized that fact, which is why he focused on generating revenue everyday. Although many other functions are important to running a business, the lifeblood of a business is revenue. To generate it, you must give it your attention.

Do you give attention to your marketing everyday?

The Importance of a Piece of Pie

Yesterday I had lunch at a restaurant which is famous for its pies. As I was looking over the menu and while I was eating my lunch, I heard the wait staff over and over again ask customers who had finished their meals, "Would you like a piece of pie?"

Many customers declined, and several asked what flavors were available. As those in the restaurant business know, most customers don't order dessert. They focus on their meal and don't think of having dessert.

They don't think of it unless they are asked.

This asking is suggestive selling, which is a powerful marketing tool. When you suggest an additional purchase which is of benefit to the customer, you enhance that customer's experience. Suggesting a piece of pie caps off a meal in a delicious fashion. Yes, I know that it can also add to a waistline, but the customer always has the power to say no. However, by suggesting the piece of pie, you give your customer that choice. If you don't offer the piece of pie, your customer must think of the choice, and, as mentioned earlier, that is unlikely.

Some businesses view this as "pushy." If the wait person's question, tone of voice, and attitude when making the suggestion is aggressive, then, yes, this could be pushy. I have never seen that, nor have I ever felt "pushed" into having a piece of pie. Although I usually decline the offer, I have never been offended to have been asked.

What this small suggestion does for the business is enormous. One of the two most profitable ways to grow your business is to increase the amount that a customer spends with your business in each transaction. Adding a piece of pie to a customer's ticket does just that. Over a period of a week, a month, or a year, these extra pieces of pie add greatly not just to the restaurant's revenue but also to its profit.

While you may not be operating a restaurant, you have opportunities to sell suggestively in your business. Are you doing that? Can you do more of it? Take a look at the way you and your staff interact with your customers and see if more suggestive selling is feasible. You can do this verbally or nonverbally. Rather than verbally asking a question, you can suggestively sell a customer on paper or on your Web site. How you communicate the suggestive sale is open to your imagination.

As you consider this, do not be hindered by thinking you will offend your customer. Today more than ever, customers love to be informed. Suggestively selling them by giving them information about an additional product or service is appreciated by your customers. What offends them is not knowing about a product or service that you offer which they would like to have. When you share this information, you give them the opportunity to make a choice. Customers like opportunities. They also like choices. Most of all, they like the attention that they receive while a suggestive sale is being delivered. That attention will bring them back.

Suggestive selling not only increases the customer's transaction today, but it also develops your customer for future business.

Therein lies the importance of a piece of pie.