Forums: Discussions for entrepreneurs and small business.

Actually, I lost a big order,900 baskets, because I just couldn`t do them for $5 each. And I could not see anyone else being able to, and making any profit, or possibly even losing money. But the one thing I learned, I should have done it.
So, you win some, you lose some, right?
Karen


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kkrafts
"Treat every day as a new adventure"

Ouch! Sometimes you eat the bear, sometimes the bear eats you. I`m curious. What were you willing, at the time, to sell them for? If you sold them for $5 would you have made any money? As I like to say "what money I lose on this deal I can make it up in volume" (smile). Kind of like when my wife goes shopping and tells me that the stuff was 1/2 off. If she was really serious about saving money, she should have bought two (smile). Other questions: Were your competitor`s baskets "apples to apples" (comparable)? Why do you say now that you should have done it? What would you expect to gain? Could you, perhaps, agree to do this first order at $5.00 with a written agreement that future orders were at "X" $`s. Rule #1 - never give anything away without getting something in return.

Hard for me to say much more not knowing the whole scenario. Rule #2 - people will spend more than they planned on spending if they recognize some sort of benefit (real or otherwise) that makes it worth their money. Just ask me every time I buy a new car (smile). Rule #3 - people will always go with the lower price if they do not see a benefit of paying more. That`s where you come in. Let`s say they would do it for $5 and you wanted $6. If this is obvious, I apologize. But, you don`t have to justify the $6, only the difference. Why is your product and service worth the extra buck? I`m betting there are reasons besides staying in business (smile).

Keep plugging away. Also remember that every time they say "no" it is worth exactly the same amount of money as when they say "yes". This is kind of a quiz. I`ll let you chew on it a bit but, it is true (smile).

Craig

 

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Craig M. Jamieson
Sales Results LLC
NetWorks! Boise
http://www.networksboise.com
http://www.linkedin.com/in/craigjamieson

If it were me, I`d go in and ask the "sweet volunteer ladies" who their boss was and then ask to speak to that person. I would have 2 or 3 baskets with me. If you get  to speak with that person then find out who is responsible for purchasing. Just get names but be prepared to meet in person on the spot. If you get to the decision maker, offer the 2 or 3 baskets for free as a trial run. Tell them you`ll come back in a week and pick them up if they don`t sell.  100% profit for them on two or three baskets with no obligation. If they sell you`re a shoe in for more orders, if they don`t you`ve only lost your time.

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Get Out of Debt

Hi Craig, just to let you know I haven`t been ignoring you or your question, but I have been busy. Not with work though. My Dad (he`s 83) fell 3 weeks ago while he was in WA. So he drove all the way back to CA to go to the drs. He was afraid they would put him in the hospital. So, I have been going back and forth to his place helping him out. Luckily business has been slow, (which means I should be out pounding the pavement) As to your question,  For what they wanted, it would have cost me $6 per. I ammended the proposal and created something comparable, that I could give them at $5 per, but they had their mind set. It was for a major hospital in the area and would have brought in more orders for special events. (nurse`s conventions, employee appreciations, etc.) Not to mention the fact that my business cards would be in 900 baskets. The lady I was negotiating with, ended up purchasing small items, and putting them together in a small plastic tote bag as the employees walked into her office. She had boxes stacked to the ceiling. I wasn`t up against any competition that I know of.  I create my baskets from start to finish myself. From the basket or container used, to arranging the items, to shrink wrapping, and putting on the finishing touches. Every basket is hand done. And every one is going to be unique, even if they have the same items in them. I take pride in what I do, and if it doesn`t look right to me, I take it apart and start over. I feel my time is worth that extra buck.

Better go.

Karen

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kkrafts
"Treat every day as a new adventure"

I disagree (a different Craig). You have to set a price that gives you an acceptable profit margin. Even if someone comes along and tries to knock you down, promising all sorts of high volume, so what? If you`re convinced nobody can offer a similar product for that price, then just say no. If they really want the item, they`ll come back to you. Otherwise, they`re just trying to take advantage of you.

There`s an important concept in sales, which I`ve learned about here on SuN. It`s that you have to be very careful not to "degrade your brand." If you sell cheap-o product just for the volume, soon people will come to assume you`re a flea-market company, and will avoid you if they want quality, unusual, well-crafted merchandise.

This isn`t much different than the same choices on eBay. There, people want the absolute most bottom-line price. They want to buy a car of $10. Fine. EBay has a huge market....but do you want to readjust your business mission statement to accommodate those low-level price-shoppers? Does Tiffany`s sell jewelry at Wal-Mart? Are they "losing" customers? No...they`re choosing their market.

Karen,

Sorry to hear about your Dad. My wife has been going through exactly the same thing with her father. She`s been flying back and forth to California trying to help out with her Mom in particular.

I`m going to throw in with Craig L on getting a fair price for whatever it is you offer. There`s always something for less and there is usually a reason for that (smile). In your case, like you said, you did not compete with anybody but rather with a "do-it-yourselfer". Now that your prospect has had a chance to savor the rewards of going it on their own, maybe she is ready for a change (smile). Certainly, her time must be worth something.

If not her, there are many others who would be willing to pay a little extra. Your challenge is to convince people that by "investing" in your product they will achieve a healthier bottom line. I did see some posts that suggested that you give away some baskets just to give them a chance to see how they sell. I would not reccomend that but you could put some out on consignment. If they sell within a given period they pay you your cost and keep the profit. If not, you take them back. That being said, I would be very careful about not setting yourself up to provide all your transactions on consignment. Lot`s of pitfalls!

Good luck and hope your Dad is feeling better!

Craig

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Craig M. Jamieson
Sales Results LLC
NetWorks! Boise
http://www.networksboise.com
http://www.linkedin.com/in/craigjamieson

Wow, I don`t know how I`ve missed this very interesting thread!

It is a shame that you lost out on 900 baskets, but I agree, you don`t want to sell yourself short.  That would have been a lot of work for you without much profit. Obviously the "do it herselfer" learned form you, what she could do, spending less.

Maybe at the next hospital try to learn from them.  Leave your baskets at home.  Just go in and talk to these people.  They might be more receptive to you if they don`t think you`re trying to sell them.  Be friendly, and ask them questions. Tell them what you love to do and ask them.... how would you get a gift basket into a hospital gift shop?, where do they buy the baskets from that are there now?, what are the best items to have in them for the patients?, do they know who makes the decisions to purchase these items?

People love to talk.  They love to be the ones with the knowledge.  If you start out asking for thier help, they might be more receptive, and really might want to help you. You also wouldn`t feel that you were being shot down on your sales call.

And if someone wants 900 baskets again, have them tell you their budget first.  Since you do make custom baskets, tell them you need to know what they want to spend per basket.  Then show them what you can do for  $5, so you don`t have to  change it later.

Just my thoughts...good luck!



 

Sound advice. And the "budget question". Good! Could start a whole new forum on that question alone. And the old axiom of "How can you tell when a sales person is lying to you? Their lips move." applies equally well to buyers (smile).

Craig

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Craig M. Jamieson
Sales Results LLC
NetWorks! Boise
http://www.networksboise.com
http://www.linkedin.com/in/craigjamieson

Actually, there is a thread on this forum, which I started, on proposals and budget.,(somewhere)

When I first started going after this particular sale. Just a basic rundown, I was placing baskets in the conciegre office at the hospital, and they were interested in my mug baskets, that were going for $12 -$15 ea. So, I assumed, (big mistake on my part), that was their budget, and nobody brought up that point, until after the proposal was presented. I`m learning from my mistakes.

I also knew, from my research prior, that nobody else could do it, at that price, either.

I went to Barnes and Noble this morning and picked up the book, "Selling for Dummies". I meant to get on this thread prior to going, so that I could look for the book that Craig (salesdude ) had recommended.

Craig, tell your wife tohang in there. As for my Dad, he`s back to his old cranky self.

Hope everyone has a great day.

Karen

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kkrafts
"Treat every day as a new adventure"

Karen,

You got the cranky part right (smile). But then again, he was cranky before (smile). "Selling for Dummies" eh? I should read that. Appropriate (smile). The book I recomended was "Relationshop Selling" by Jim Cathcart. Oh, and the budget" topic. I just started one (smile)

Thanks!

Craig

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Craig M. Jamieson
Sales Results LLC
NetWorks! Boise
http://www.networksboise.com
http://www.linkedin.com/in/craigjamieson