The Business Master (3rd Edition)

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CHAPTER 9 SECRET SUCCESS STRATEGIES If you take a look around, you'll quickly agree that people who run their own business fall into three catego- ries. There are those who are struggling to keep going, and have done so for a long time. There are those who are moderately successful and seem content to drift along riding the waves of the national economy, sluggish sometimes, cresting at others. Then there are those who have all the obvious signs of success. The luxury car, the vacation home at the beach, the designer swimming pool, the boat, the well tailored clothes, and surrounding them at all times, the healthy look of wealth. Now ask yourself why there are three categories. Is it that those who are struggling actually like it that way? Is it that they don't know how to move up the success ladder? The middle category is apparently easier to understand. Sometimes they are elderly people whose needs are easily satisfied. It could be they have had their success in life and are winding down. Perhaps, beneath the surface, unob- trusively, they are paving the way to increase their busi- ness. I suspect that none of those explanations are really true. People who are in their own business always want that business to be better and bigger, no matter how long they have been in business. Usually, the truth of the matter is that they don't know how to go that extra yard, how to climb those last few rungs. Your climb must be steady and relentless, so it's the third category which is of greatest interest to us. The remainder of this chapter will look at the truly successful people in this field and determine how you can stand up there beside them, and as quickly as possible. We will look for shortcuts, for secret techniques, for previously unpublished knowledge. The first step is to decide who these people are, who are the true entrepreneurs of the Mail Order business. You have already gained much of this information when you re- searched advertisements going back over a number of years. The successful people are those who have conducted the same business over many years and appear to be as efficient and organized today as they were when they started. You can't always point a finger at a large newspaper advertisement and say, "That ad must have cost several thousand dollars, they must be successful." Sometimes those ads are a one-shot deal, a desperate last minute throw. Other Mail Order people run their business through catalogs instead of/as well as newspaper advertising, people such as Drew Alan Kaplan of DAK Industries Inc., Lisa Anderson of Colorful Images, and Joseph Sugarman of JS&A Group Inc. Why are these people so successful? What are they doing that you can emulate? My answer is this. Write and ask them. Take a look at the advertising you receive through the mail, make notes of the magazine advertising you consider effective and then write to the presidents and owners of these companies. Tell them that you are trying to get a foothold in the Mail Order business, tell them what your product is so they will know there is no conflict of interest, and ask them how they got started. At the worst they can only tell you to mind your own business, but I doubt that any of them will. People at the top of their professions, especially in the Mail Order business, are invariably very willing to share their knowledge. People like Joseph Cossman and Melvin Powers hold seminars and write books telling other people how to follow in their footsteps. Write to these successful entrepreneurs. Make it easy for them to answer by enclosing a questionnaire which re- quires short, simple answers. Write a cover letter explain- ing why you are requesting this information and be sure to enclose a stamped, addressed return envelope. The questionnaire could ask such questions as: How long have you been in business? What work did you do before you became so successful in the field of Mail Order? Why did you determine on your present range of products? Have you written a book I could buy or hold seminars on the business of Mail Order? To which two major factors do you attribute your suc- cess? The answers you receive are not going to make you a millionaire overnight, but they will direct your thinking, and they will give a tremendous boost to your desire to succeed. Jay Conrad Levinson in his book Guerrilla Marketing says that the greatest secret to a successful advertising campaign is the concept of Commitment, Investment and Con- sistency. His thoughts on Commitment, and they are endorsed by all advertising specialists, are that once you have decided on a course of advertising, which would include the budget, the media and the theme behind the copy, you should give it a chance to work. This idea of commitment is essential. Whether you call it commitment, determination, doggedness or just pure obsti- nacy, your resolution to stick with your opinion based on careful thought and calculation, is the secret behind all success. Whether your business is Mail Order, Computer Programming, Dress Designing or Building Dog-Houses, the stick-to-it attitude is a must. Having a good product is, after all, only fifty percent of success. Selling it is the other fifty percent. Most experienced Mail Order entrepreneurs make their decisions on the most effective approach to potential cus- tomers based on their knowledge of their customer interests and the product. Sometimes they will use the shotgun technique, blasting at a very diverse section of the population figuring on a ten percent response as an acceptable number. At other times, the use of the High Powered Rifle Technique is required. Here, after careful consideration, the potential customer profile is selected and then that narrow segment of the public is mailed advertising material prepared specifically for that group. A frequently overlooked way to increase sales is the follow-up. This technique can be in the form of telephone calls, or further, more persuasive literature, mailed to those potential customers who have not replied to a previous mailing. A more indirect, but equally effective means of build- ing business, is the follow-up on sales already made. These calls, made by telephone or by mailing, make sure that the customer is satisfied with their purchase. This solicitude will help to persuade the customer that you are truly interested in pleasing them. Once you have established that rapport, future sales to that person are much easier. One final technique to help you build your business quickly is the letter of recommendation. If you receive letters from customers telling you of their pleasure or satisfaction with one of your products, write back thanking them for the trouble they have taken in writing to you and ask for permission to quote part of that letter in future brochures or sales presentations. Sending them a small promotional item at that time would help clinch their loyalty to you. Similarly, if you know of a customer's satisfaction through personal contact or through one of the follow-up calls, ask for a letter of recommendation. To summarize, these are some of the most important considerations you should give your Mail Order business:- Determination: - You are going to build a successful, highly profitable Mail Order business. There must be no doubts, no qualifiers. You will be successful - successful and wealthy. Find time to read: David J. Schwartz - "The Magic Of Thinking Big" Napoleon Hill - "Think And Grow Rich" Ben Sweetland - "I Can" David S. Viscott - "How To Make Winning Your Lifestyle" Claude M. Bristol - "The Magic Of Believing" Thought: - Determine the type of product you will be selling. Is it exclusive? Is it consumable? Are you certain of continued supplies? Is the price extremely competitive? Do you like the product? The Product: - If you have a hobby or pastime that you can turn towards Mail Order, so much the better. If you are devoid of ideas on where to discover new products, you will find a listing in the appendix of places to search for new items. Advertising: - Decide on an advertising budget. No matter how small, know how much you have to spend. If, at the beginning of your enterprise, your advertising budget is extremely modest, find ways to produce your advertising inexpensively. Think about - hand bills distributed door to door, - college newspapers, - supermarket notice boards, - letters or brochures mailed to addresses obtained from the telephone directory. In some cities, the Water Company will include a small flyer with the monthly bills they mail out. The fee they charge per thousand is usually far less than you would pay any other distribution service. Sales: - Reply to orders for your product as quickly as possible. The average person who sends an order to a Mail Order house starts looking forward to receiving the merchan- dise about two days later. They know it will take longer, but they hope it will be quicker. People like to spend money on things other than life's basic essentials. Help them to make the money they spend with you as pleasurable as possible. Enjoy their purchase with them. Be enthusiastic about the products you sell. One of the reasons, if not the main reason, Amway is so successful in their door to door selling, is because the sales people are so enthusiastic about their product. As I said earlier - Like Your Product. If you don't, how can you expect anyone else to? If a customer is dissatisfied with one of your products and returns it to you, immediately refund the amount paid together with any mailing costs incurred by the customer, no questions asked. (Assuming that it hasn't been deliber- ately tampered with). There is no greater way to restore confidence and build future sales than by fast response to complaints. The expenses you incur handling your business this way will be repaid many times over. In the normal way, I would include a chapter dealing with the assembling of Mailing Lists and methods of keeping a check on product stocking, mailings and business bookkeep- ing. I am, however, very conscious that this booklet is directed at computer users with a profusion of database management tools readily available from software manufactur- ers. There are, as I'm sure you know, many business manage- ment systems available though Shareware. A chapter dealing with that aspect of Mail Order would be superfluous. There follows an Appendix of names and addresses you may find useful. I wish you well in your Mail Order venture. If I can help with further information, please write or contact me through DELPHI (Billham).