Archive for the 'The Bottom Line' Category

04
Apr
13

If You Fly Internationally, Here’s The Secret To “No Jet Lag”

Lay-Flat seats really help!

Lay-Flat seats really help!

After numerous international flights over the past five years, there are a few things you can do to hit the ground running when you get there…

1. First, if at all possible, you want to fly business class.  If you fly often, you might have the points to do it – I’d recommend saving your points for this adventure rather than spending them on free domestic flights.  Especially if your international flights take you to far away lands like US to Asia (over 10 hours).  I no longer consider a flight to England to be a big deal when flying from the U.S. east coast.  It’s kind of like taking the red-eye from LAX to CLT (West coast to east coast).

2. If you don’t have the points, and your company won’t pay the upgrade fee (consider moving to a new company), see about going economy plus.  I’ve had some instances where this was all I could manage – the cost is often similar to economy.  At one point I even arranged for a meeting in DC prior to heading to South Africa, just to catch a flight through Heathrow so that I could take British Air – who at the time had an excellent economy plus offering.  It was well worth the extra time to avoid sitting at a 90 degree angle for over 10 hours.

3. Given you have a good seat – check the seat guru online.  I use Flight Tracker on my phone to see which seats work the best.  Not all seats are alike.  You really don’t want to be adjacent to the rest rooms on an international flight – especially at night time.  Upstairs on the 747 is most desirable.  Both of my Pacific crossings to Australia this month are upstairs.  On the other hand, when flying the Airbus 330, I like the window in Envoy class – its a single row so you don’t have to step over someone on the way out to the men’s room.  747 seats are coupled so the window seat means climbing over your flight partner at night.  Still, I take the window so it’s me waking up someone else rather than being stepped on.

4. Time change – immediately assume you are on the new time zone.   For example, when I flew back to the States from India last week, my flight left at 3 AM.  That’s 5:30 PM at home, so instead of going to sleep at the normal time, I took a nap the day of my flight, ate a late dinner, and stayed up until it was time to drive to the airport – around midnight.  With a Pepsi in hand, I pushed through until we boarded, ate dinner, watched about an hour of a movie, and figured I could go to sleep at 7:00 EDT.

5. Here’s the important part – the Advil PM.  Advil PM has about 30% more of the sleeping drug in it than the Tylenol equivalent.  Take two of these about 30 minutes before the movie is over, and you’re ready to sleep when it’s time.  I slept right through the 9 hour flight, woke up for the late breakfast, in time to land, and then it’s day time for me.  The next leg, I stayed upright – took a short afternoon nap, but otherwise used my time to read, watch a movie, listen to music, etc.  I landed around 8 PM, in time for bed at home.

6. Once home, I took two more Advil PMs – and slept through the night.  The next day I was refreshed and ready to go.  If I land in the morning, like I did going to India, or like I will this Saturday in Melbourne, I’ll have just finished sleeping (using the Advil PM), and will take a short nap in the afternoon, take that one day to recoup, and get to bed on time in the evening.  I’ll take the Advil that first night to make sure I sleep through till morning, and I’ll be good to go.

7. While flying, drink lots of water, avoid the heavy meals and alcohol, and resist the temptation to watch dozens of movies when you should be sleeping.  While sleeping on the plane, I use an iPhone with light adagio music, with ear buds.  The phone plugs into the handy USB ports available now in business class, and the ear buds provide the silence I need to sleep while others are getting up to use the rest rooms.

© 2013, David Stelzl

14
Jul
12

Chicago Business Leaders Conference; Day 3

Saturday was our last day – a few points worth noting from one of my talks:

We have three major resources at our disposal:

  1. Time
  2. Money
  3. People
  4. Opportunity

Time

How do you plan your time and what threatens to rob you of it?  Time management is a funny concept; can you really manage time?  Time keeps ticking, it never stops.  What robs you or your time?  I shared a funny backpacking story – a time I was out with some friends, heading out into the woods for three days.  When we started out it was cold and raining – it was miserable.  It was so miserable that we just set out as quickly as possible, without checking the map.  I thought I knew where I was going, but with our heads down and hoods up, to keep from getting too wet, we just plodded down the  trail, assuming we’d get there.  Over an hour of hiking had gone by and we were miserable.  Suddenly we spotted cars!  The highway was right in front of us…in fact, our car was parked just up the road.  We had somehow made a circle on a trail I didn’t know existed.  We were right back where we started!

There are many things that set us back; heading down the wrong path due to a wrong reaction, misinformation, lack of research, lack of listening, and stubbornness.  When we lack discernment we make unwise choices in hiring, designing, or engaging in a sale.  Fear throws us off as we continue to sell to the influencer, afraid to move up.  A lack of planning, jumping into our day without a plan, or heading into the year without one (something many business owners do).  These and other unwise choices cause us to waste precious time.  I spent time explaining exactly how I plan my year, quarter, month, week, and day…something we all need to be doing.

Money

Money is another resource.  Sometimes we see it also as a reward for making the sale, but then it becomes a resource to the business or to us personally.  There are many robbers of money – debt is a big one.  How much money are you personally spending on interest.  If you own the business and have small business loans, I bet it’s heavy.  If you have credit card debt is criminal – but it’s your fault.  Addictions – what is an addiction?  Something that causes you to purposely choose an unwise road to fill the need.  For instance, you don’t have a lot of extra money but you can’t help stopping at Starbucks each morning, so you don’t tell your spouse, but you need your fix.  This might seem like a silly example, but the addictions get bigger and more expensive.  The mind has a thing called the pleasure center – dopamine is released under certain circumstances, like when you eat some chocolate, giving you a sort of high.  It’s a good feeling and it’s normal.  But when people do things in excess, too much dopamine is released – giving you 3 or 4 days worth of that high, and it’s not replaced as quickly.  Over time you deplete your natural resources and you’ll spend all of your money trying to get back to that feeling by moving to harder substances.  This is what drug addiction is – it’s the far extreme, releasing all of your dopamine at one time.  This is why addicts need stronger drugs over time…the same is true of thrill seekers.

Relationships

People are also resources in a sense.  I spoke about the things that cut off these relationships causing us to lose clients, employees, and even spouses.  I wish I had time to give lots of detail here, but the major cause of lost relationships is character deficiencies.  For instance, arrogance, greed, and selfishness will rip a relationship apart. Marriage problems are often a result of two people bringing their character problems into a relationship that is just too close to hide them (like they did while dating).  Now, cramped up together in a jail cell of sorts, there is no hiding the bad.  Unwilling to yield and work out these issues, the couple cries, “we’re incompatible.”  It’s really just a battle of the wills (Not to make it sound simple, it’s not.  But it is a will problem, not one of incompatibility according to my marriage counseling friends) .  Demonstrate your arrogance with a customer and you’ll be reading about it all over the Internet tomorrow.  It’s not worth it.

Opportunity

Finally, I spoke about opportunities.  What causes us to miss out on opportunities?  Lack of money, time, and relationships – all of the above, can kill an opportunity.

This was a great conference – what are you doing to take your business to the next level?

© 2012, David Stelzl

21
Feb
12

Selling Your Way Out

Selling your way out – it seems like common sense, yet I see this more often than you might imagine.  Selling more at a loss never profits.  You can’t sell more of something that just isn’t profitable and expect a return.  This is likely one of the most frequent causes of business failure.  This past week I reviewed financial reports of several resellers, all selling managed services offerings.  In once case the numbers were all above 50% margin, with over 300 individual contracts – and for SMB (Small-Medium Business) contracts, reasonably large monthly commitments.  In another case, a company who had converted many to managed contracts, using an ROI (return on investment) model – in other words, they sold their clients on moving to a monthly commitment, but didn’t do the math, and tried to save each client some money.  The client is now saving money, but the contract isn’t profitable as we look back over the past 12 months.

Blindly pursuing sales, without a clear picture of the efforts involved in filling the contract is like chasing technology.  Companies that will create any offering on the spot, or take on any new product, just to fill a contract, as destined for trouble.  One of my clients made the astute comment in our weekly meeting, “It is so tempting to just cut the price when it looks like a sure thing,” and he’s right, but then he followed up with, “But it doesn’t make sense to do it – it won’t turn a profit by the end of the year.”

Managed contracts are like that.  There is little in the way of upfront cost, so the temptation is to believe you can pull it off – manage it closely, do it more efficiently.  But in the end, you will be squeezing the client, trying to get by without actually responding, just to make up for the loses.  On the other hand, you might not realize your contract is a loss until it’s just too late.  At that point, there’s no turning back.  You can’t raise prices across the board  and expect everyone to stay with you.  Instead, you will be handing over clients that have taken years to build, to your nearest competitor.

Copyright 2012, David Stelzl

09
Feb
12

Chasing Sales People…Away.

Good Sales People Won’t Stand On Unemployment Lines

Talking with my son the other day (he’s sixteen right now), I was telling him, “Regardless of what you do in life, learn how to sell”. Unemployment numbers are high in the US, yet all of my clients are looking for sales people!  So there are jobs, but not jobs for just anyone….there is always a job for an excellent sales person.

Here’s the problem…

If you have great sales people, make sure they are happy!  Here’s a trend I run across frequently, and today is no exception.  I was talking with a top sales person for a large high-tech company this morning (one everyone who know the name of).  His sales last year were great – many of the reps I see on a daily basis would give a lot for the accounts this guy calls on, and would be living well if they closed the business he closed last year.  But 2011 is over, and 2012 is on us – so as you might have guessed, his quota is higher.

Raising quota is normal, so neither one of us are surprised.  The problem is, his management feels like they should double his quota, not because it’s low (and in fact it is far from low), but because he did well.  He shared with me, that the remaining money to be collected on just one of his Q4 deals would have bought a small house in 2011, but with the new comp structure, he can buy a half-decent used car with his Q1 collections.   What’s happening here?

A sales team has big hitters, those with potential, and a handful (which might be big or small) of non-performers.  Sales managers have a hard time letting people go, so instead of promoting large commissions for big winners, they tend to spread the wealth by propping up low performers.  By propping up, I mean setting ridiculously low quotas for one rep, while imposing astronomic quotas on their high-performance colleague.  Helping one person to make enough to live on even if they produce almost nothing, while controlling another’s income because if “just seems to high”.

Why This Never Makes Sense

When this happens, and it happens all the time, the bad performers stay, while the superstars look for new jobs.  For some reason, many sales managers are making choices to have a large sales team of mediocre performers, rather than a smaller team of big hitters.  Big hitters will always outsell the mediocre team – while costing the company far less to maintain – why would they do this.  I believe it’s fear.  It’s hard to fire people, especially when they are great people (great to spend time with on social occasions), with a forecast that always seems to sound good.  Everything is at 50% and is supposed to close next month…but every month, that same list rolls over to the next month.

The Goal Should be…

The goal of the sale team is to sell.  When managers choose to meddle with comp plans rather than replacing low performance sales people, they are making a trade.  It seems easier to change the comp plan, rather than sending someone out on the street in a bad economy.  But the trade off is this…sales managers can either fire the low performers, or the good people will leave.  You can’t have it both ways – you just can’t afford to keep everyone happy.

© 2012, David Stelzl

23
Nov
11

Happy Thanksgiving – How Well Do You Know Your History?

1. Did the Pilgrims depart from England to come to the new world? Well, yes and no.  They started in England, but spent about 14 years in Delftshaven, Holland before sailing back through Southhampton, England to America.

2. Did they head to America for freedom?  Not really – they went to Holland for freedom.  In fact, they found freedom in Holland, however, having left their wealth behind, life was difficult there, and the pressures on their children to abandon the family where great.  Wanting to keep their families focused on God and their religious practices, they decided to leave as a group and head for the new world.

3. Did many die on the trip over?  No, only two – one of the sailors who continually troubled the Pilgrims, and a servant named William Butten, who died from scurvy (should have drank his lemon juice.)

4. Did they land at Plymouth?  No, they initially landed at Cape Cod…however they were supposed to be landing down near the mouth of the Hudson where people had already established towns.  The plan was to land among an established people.  Instead they landed at Cape Cod, but due to the shallow water, were forced to head south to Plymouth where they agreed to establish their new homes.

5. Did they immediately celebrate Thanksgiving for a safe trip over? No, they worked hard to build shelters to get them through the winter, and to protect them from Indians.  Their first winter brought 47 of the 102 original voyagers (including Pilgrims and sailors) to their death due to sickness.

6. Where does the Thanksgiving feast come in?  As winter turned to spring, Samoset, an English speaking Indian arrived, who a week later returned with Squanto, another English speaking Indian from a tribe who had completely died from a mysterious illness.  It was Squanto who taught the Pilgrims how to plant, fish, and make medicine from the local herbs, and who introduced them to pop corn!  That fall, after the harvest, more than enough food was brought in to take them through the winter.  Thankful for Squanto, and thankful to God for bringing them through the winter and providing through the summer, they agreed to hold a feast which lasted three days (the first Thanksgiving was held in October).  They served wild turkeys and deer, vegetables, fruit, pies, and other treats, calling this celebration “Thanksgiving”.  The day began with prayers of thanksgiving, led by their pastor, William Brewster, followed by games, feasts, and expressions of thanks. Enjoy your Thanksgiving, and recall the good things around us…

© 2011, David Stelzl

 

10
Oct
11

The Fear of Man

Taken By Tina Stelzl - Yes this is a wild bear!

Fear is disabling.  It’s easy to become busy with work, and then to wonder why the sales are slow.  Could it be that fear has refocused you on busy work rather than on reaching the goal?  Moving up to meet decision makers, presenting new ideas, and reaching out to new prospects, all lead to one of two things, either new relationships or rejection.  It’s always easier to call on those you are used to calling on, even if they have no money, and easier to keep meeting with those who cannot make a decision or create new budget than it is to reach out to new people, higher up the ladder.  Rejection is hard, and most of our sales successes from the past required us to go through many rejections before winning the prize.

Don’t get caught in the trap of working without a plan pushes you toward new business.  Assume people along the way will reject your offers, look down on your ideas, and shop your prices.  It takes many new prospects to lead to one new client, but then, if it were easy, everyone would be doing it and you might not have a job.  Start this last quarter with some goals; goals to establish new relationships, broaden your contacts within your existing accounts, and a strong focus on moving up in the organizations you serve.

© 2011, David Stelzl

27
Jun
11

Will They Buy From You?

There are thousands of sales techniques out there, but when you boil it all down, people buy from you (or don’t) because you are you.  So what value do you bring to the sale?  You’ve heard it said, “People like to buy, but hate to be sold.”  I’ve heard this for years, so whoever claims it is their unique tagline is probably lying…but the statement is true.  The question is, “Do they like to buy from you?”

© 2011, David Stelzl

09
Jun
11

Technical Sales Should not be Technical

By David Stelzl

 

© 2011, David Stelzl

02
Nov
10

The Technical Support Money Hole

When I was growing up my father used to refer to our boat as a hole you throw money into.  You probably have something like a boat; something that continually eats away at the bottom line.  When it comes to selling support work, there are several holes I’ve identified.  Things to avoid if you want to produce hard-dollar profit:

1. Selling managed services with a contractual agreement to be on site.  Make sure your fee is high enough to include the cost of staff augmentation if you do this.  In most cases it is unnecessary.

2. Selling on site support or engineering (staff augmentation) with a commitment to be on site two or three days per week.  This is especially bad when the person is to be there every other day – it is nearly impossible to fill the other days.  This is break-even at best.  Another trap is selling half days.  What will they do the other half?

3. Billing a client for three hours.  You’ll never recover that 4th hour before lunch or the end of the day.

4. Support calls with no minimum charge.

5. A close second is, too small of a minimum charge.  Consider two hours…if the engineer has to drive an hour in traffic one way, the support call will be break-even at best.

6. Not understanding burden cost.  If a support engineer drives two hours (there and back) between every two hour minimum time call, the profit is zero in most cases.  Move to contracted managed support with annual contracts, spread your risk, and make sure your fees cover your cost with the required profit.

7. Converting support calls to managed contracts without a clear understanding of your cost and profit.  Once converted, good luck increasing prices!  You should be making more on managed contracts, not less.

© 2010, David Stelzl

29
Sep
10

Customers want it now!

We want it now!  Why do companies still make us wait?  With the Internet in place, most things can be purchased any time of day and overnighted.  There is no waiting anymore, and that is what people have come to expect.  But this morning didn’t turn out that way.  First, I was surprised to find out that my Concealed Handgun permit is on the verge of expiring…this happens every 5 years, but why doesn’t the sheriff’s department automatically notify the card holder?  With today’s automation and the given tax rates, you would think this would be standard.  If the card lapses, you’re starting the process over (which means taking a class, taking a test, and paying a higher fee).  This is not customer focused!  (Thank you very much Union Country Sheriff”s department.

So luckily I happened to be flipping through some cards in my wallet and noticed the expiration is next month.  So I called – and actually got through.  The papers are easy to fill out (however you need a notary), no finger printing required on a renewal, but can you just mail the papers in?  No, you have to drive an hour to the next town, pay in cash, and then wait…not a few days, but up to three months!  Three months to process some papers?  What’s that all about?  Is this done locally or do they outsource this to India?

My final question was, “Will you then send me my card?”  You already know the answer.  No! You can simply drive all the way out here when we call you.  In the mean time your current permit will have expired so you can’t use it until you get the new card.

In  government we don’t really have a choice unless we want to move.  In business (expect when speaking of the airlines and phone company) we do have a choice.  How easy is it to do business with your company?  Are you monitoring your online reputation?  I’m sure the Union County Sheriff’s department doesn’t care, and I’ve never hear from US Airways, even though I complain about them online almost weekly, but for everyone else, this is a must.

Note: I am  sure some people won’t like the fact that I have firearms in the house…last time the police responded to our alarm it took 20 minutes to get here.  You do the math.

© 2010, David Stelzl




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