Know-How Exchange : Strategy

Oops, editor wouldn't return in Firefox - this is a repost, please delete!

I think you have a problem with your product/service.

I am not doubting your competency but the truth is that your offering is too broad.

It is very very difficult for companies to justify paying for services.

Lawyers, Accountants, SAP Consultants - All of thee they will pay for without too much thought.

But your service is already stepping on a lot of toes. You want to go to an organisation or company and tell them that the products and processes that they have been working with for years are all wrong and need to be improved.

This is a very very tough sell - I now, I have tried it myself in the past.

You have to remember that these companies have already paid millions to build and or acquire processes and products, they have hired and paid too much for consultants to advise and fool around with the processes and now you want to come with a 'better wheel' :)))

You may well have the 'better wheel' but in order to sell it you have to be able to quantify for the buyer the real time dollars and cents value that it brings.

1. How long will it take to implement
2. How many additional people will have to hire to implement it?
3. What additional equipment (capex) will have to be alloted to implement it?
4. Regardless of 'cost' - what will be my ROI for this new 'wheel' that you want to bring to us?
5. Can I see your track record/reference projects. Can I speak to a CEO who used your services and is now thrilled about how much simpler his proessess are or how much money he is making/saving compared with before your implementation.

These are the types of questions that you will have to be ready to answer before you get through the door

Selling an intangible service or product such as a 'better mousetrap' is really really tough. The key is that you have to prove yourself with some key clients first and you have to have a specialised knowledge that cannot be replicated by others. If you do one job and the employees learn your techniques and secrets then they don't need to hire you the second time :)

Sorry to be blunt about this but it is a common problem that very very intelligent people face. if you go through the door saying 'I can do everything' then no one will believe you.

Sometimes, it is better to limit initially the scope of your service to one particular area and prove yourself in that. After you have built a solid reputation in that - then you can start to expand to a second area.

Always remember that regardless of how intelligent you may be - you are up against BIG ego's who have to justify their position and their salary. They feel threatened when a very smart guy starts to tell them they have been doing it wrong so you have to find a very very delicate way to approach customers.

Find out first 'if they know they have a problem' (it is no good if you know it but they don't)
Once you have identified what problem they need to have solved, come forward with a very simple and nice proposition with steps to improve the problem. Make sure that you have fully understood the cost / value ratio from the clients perspective.

Be very very patient :)

Hope some of this is helpful,

Matthew

Matthew,

Your response really gives me confidence in this site, and leads me to appreciate the people that I have met over these short two days. Your observations are right on; naiveté' runs rampant in the "I have an idea and it is better than anyone has ever had" world. I appreciate your clear understanding of my endeavors and your warnings regarding doing business with those who have significant investment in their own efforts and typically respond with the pejorative "Not Invented Here". Prior to this endeavor, I spent better than 25 years working in the design development organizations of some of the largest companies in the U.S., with the goal of learning both what does and doesn't work, as well as making contacts with individuals in a position to seek outside sources for important internal development projects - these relationships have allowed my current company to "relatively" prosper, but I am seeking to engage in much larger challenges that I feel my new organization can easily and effectively handle. I don't think that it would be wise for me to relate some of the companies and projects on this forum as it could taint the great observations and comments that you collectively are presenting, but please understand that I have considerable experience and reputation which I can leverage but which have not been leveraged in my current/past business due to inefficient and ineffectual sales/marketing. So, really, what I am looking for is someone or some group able to take these "pieces" - the reputations, the experience, the pre-exist relationships, the creativity, the abilities, and the motivations - and make a successful marketing program which will promote "IT".

Matthew, you stated "You want to go to an organisation or company and tell them that the products and processes that they have been working with for years are all wrong and need to be improved." Well, whether or not that is what is happening, I always try to present it as "We are excited to participate with you on this project and are more than happy to work with your team as best and helpfully as we can"...there typically is no success that I know of that is related to slapping your customers in the face (boxing?), but many (in my experience) are happy to have you "help" their development group get through a difficult task or two. Being sensitive to their hierarchical structure as well as their need to prove their abilities, I have found that people are more than happy to pay for services as long as I don't threaten their job nor their apparent competency.

Now, think about this - if I REALLY DO have the crew that has the ability, history, background, and reputation of being able to do what I am setting out to do, what would YOU do to market it?

I doubt you go in and tell an org what they are doing is wrong. That would be insulting to your prospect -- if someone is selling like that no wonder they'd think selling an intangible is tough. Cause you'd be shown the door.

The way I sell my intangible services is via a consutative sell. Business to business, and one on one. I am here to solve a problem, make you money or save your time. I will work within and compliment their system, not tear it down. And so will you.

Your challenge is finding their pain-- and I imagine they have no idea they are in pain. Its like I just had a problem with a toe-- and I had no idea how much it hurt till it quit hurting.

I imagine its a short list that you'd see a match to your service- there is no easy way other than making some calls-- and selling the appointment and the appointment only. Look at manaonline.org for independent reps-- I have seen more industrial type of reps there. And the most professional. An established rep has the contacts already in place and can shorten your sales cycle. They are only paid on performance. Don't micro manage them, but support them.