Take a mental picture of a few small business clients with whom you work and ask yourself truthfully, “Will this Small Business Client Exist in 10...
How to Become a Local Business Expert Part #4 – Return on Investment
In this mini-series I’m discussing how to sell small business owners. I mentioned in previous posts that it’s most important to become a small business expert. One key mentality adjustment is the realization that small businesses do not have “expenses;” every expenditure is an “investment.” CC Sales Pro has a new solution we’ve rolled out […]
In this mini-series I’m discussing how to sell small business owners. I mentioned in previous posts that it’s most important to become a small business expert. One key mentality adjustment is the realization that small businesses do not have “expenses;” every expenditure is an “investment.” CC Sales Pro has a new solution we’ve rolled out which is a retail solution. You can sell a touch screen point of sale solution for free. There is a $399.00 set-up fee, but the hardware is free (a $4,000.00 savings at least.) We only charge $149.00 for software support.
The purpose of this post is not discussing our solutions specifically, but the purpose is helping you understand local retail businesses in your market. Our sync solution includes web design, content marketing, the e-commerce solution, and the physical point of sale system all integrated together for $399.00 per month. You may find it difficult to pitch something which costs that much per month. Do not think, “How can I get them to SPEND $400 per month?” Think rather, “How can I get them to INVEST $400 per month?” The small business owner needs a confident salesperson to walk into the business and talk about the return on investment. Believe me, $1,600 to $2,000 a month is already being spent on every employee of the business. I promise the owner does not feel like there is good return on investment in the case of every employee; yet the business continues to employ them.
The business HAS this much money available to invest. Assure the owner the money is a wise investment rather than a waste. Break the total investment down to an hourly amount and find out the hourly cost of operating the business (this was discussed in the two previous posts.) If the business is open 5 days a week, the investment amount is only $20 per day or approximately $2 per hour. That’s not a big increase. Find a way to add $2 an hour in value to the business owner. Keep in mind the business is continually hiring new employees for $8 – $9 per hour. We only charge $2 per hour to provide the point of sales system, the web site, the e-commerce solution, the e-mail marketing, and the content creation. Does that sound very expensive to you? When you break it down and begin speaking in an educated fashion to your clients about this investment, it doesn’t sound like much money even though this is the most expensive solution we sell! Just the point of sales system is $149.00 which breaks down to about $.25 per hour. You can see quickly that these fixed cost investments break down by how many hours the business is open, and the business owner must see value.
In the next segment of the mini-series “How to Sell Small Business Owners,” I will discuss four ways which business owners generate revenue. Generating revenue is the way in which small business owners see return on investment. Revenue must be generated and must have profit. Each of these will be discussed in upcoming posts.
- Getting a first time customer.
- Repeat purchases.
- Increasing the average purchase.
- Increasing the profit per purchase.
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