How do you treat long-time customers when the economy is this challenging?  Are you tightening the rules to manage costs or are you more liberal in your policies?

I went to a business that I had purchased from for many years but not over the last year.  They greeted me warmly as if I had just talked with them yesterday, with no hint of criticism or complaint in their voice.

Later that day, I went to another business that I also frequent often.  They know me well enough to recommend new products they think I’d like.  And they know I’ve referred other customers to them. I was 90 minutes late in returning an item I had rented and they wanted to charge me another full day.  It’s their policy and it’s posted.  When I asked for leniency, the owner’s reply was, “It’s our policy and you need to pay.”

The next day I received a rather large bill.  I had made a mistake in understanding the rules so the bill was correct if unwelcome.  When I asked the Accounts Payable person for some flexibility, I was flatly turned down.  When I asked to speak to the owner, I was told that he refused to discuss these issues with anyone.  “Even customers who’ve purchased from him for 20 years?” I asked.  The answer was, “Yes.”

The economy is going to get better.  I will spend more money.  I will continue to make referrals to my vendors.  Which vendor mentioned above will continue getting my business and my referrals?

Tom Cafarella, Inquisix member, owner of accounting firm CMB Accounting and host of “Minding Your Money” on TV, interviewed Michael Kreppein of Inquisix recently. Tom and Michael spoke about the challenges facing small businesses, specifically how they can find new business.

I wrote about NetParty’s Business Networking event last August 2008.  Well, they’re back and hosting a new party in Boston on Tuesday, March 24th.  Their parties combine Business with Social Networking.  First h0ur or so is business networking with just light music in the background.  Then the social networking kicks off and the music gets turned up.

Will you attend?  Get your free invite here by March 23rd.

Boston not local to you?  They have other cities to choose from.  Wonder what the party in Buenos Aires looks like?

So I was trapped in a local selectman’s meeting recently.  If you’ve never done local or town politics, I can confidently say Dante would have reserved an inner ring of hell for what I experienced. 

I love efficiency. When I was taking French I often dreamt in French, but now I just dream efficient– probably because it has been beaten into me over time and sealed off when I had twins.  One can not be inefficient and have multiples.

So back to the meeting. I was there on a pretty serious matter– a stray bullet zippin’ across a neighbors’ yard, breaking a window and firmly entrenching itself in the bench the kids sit to take off their muddy boots.  Investigations, issues with the local gun club all found myself and my neighbors at the local selectman’s meeting.

Not the top of the agenda, I waited as the selectmen debated for an hour and half on boat hoists and a request for proposal for a new dock.  I was impressed with how thorough they were for the RFP, and was really not happy that I would, given the nature of my business, be there most likely for the long haul given the time and depth spent on boat storage (which I know now more than I ever hope to.)

So imagine my surprise when they spent a total of 20 mins on the matter and basically left it as a status update with no resolution. 

 What?

Yessir. 20 minutes and I was home before Ugly Betty was over.

The ridiculousness of the situation gnawed at me until I actually realized what was going on.  It’s only natural actually, I mean haven’t you found that the more important, more crucial the task, the more it gets put off until it reaches a “critical” level.  I’ve done it personally, because if I only had more information, waited until the price went down, or had more time to complete it, the best possible outcome would be achieved.  Right?  Wrong.  Usually I forget about it or postpone it (stressing all the while) until I realized I wasn’t ever going to get any more info or the price had going back up or it’s backordered, or I had so little time left that only “merely adequate” end product was derived.

Let’s give it a name: Inverse Proportion of Immediate Action to Importance of Task*  (*the exception being life-threatening instances where it is a direct proportion– we all seem to rise to the occasion when a tornado is a comin’.)

Do you suffer from IPIAIT?  Take a look at your day-to-day projects and I bet you’ll find at least three that are in a holding pattern while you’re waiting for some key piece of data that, given a second look-see, really might not be that key.  Waiting for the moons to align will leave one waiting longer than really necessary.  I know from personal experience that the times I’ve “just did it” were often my best work product.  So from an efficiency and a productivity perspective, when you know you have around 80+% of what you need* (*outside of something like the space shuttle or nanotechnology where this doesn’t work so well) just do the first draft.  Anything extra is gravy.

As for my fair Selectmen.  Seeing local politics in action I don’t envy the job one bit.  Of course there maybe other reasons at play so it might not be absolutely fair — but I will say it was my first impression… and, as far as I’m concerned… they count.

And just because, an inspirational little video for your viewing pleasure:

I was invited to a local business networking party. It’s only for “…young business professionals…” so I’m not sure I qualify anymore! The events are hosted by NetParty and they promise (and I quote):

• The first two hours of our events are like an extended “cocktail hour” with passed hors d’oeuvres at many events, drink specials, and low music conducive to business networking and making new connections.
• Later, our events take on a more social atmosphere, with great music, dancing and conversation.
• Our events are held at the hippest and most interesting venues. However, the music is never so loud that you cannot talk and our crowd is generally comprised entirely of young professionals.
• We do request “business” or “business casual” dress for our events. With that and a fun spirit, you’re good to go

Well, I wonder how much networking will be business and how much will be social. Guess I’ll have to go! If you’re interested in the Boston Event, it’s next Tue August 26th at The Estate in Boston.

Here’s a free invitation. They also hold networking events across the United States so check out the location near you. If you’re coming to the Boston event, come say, “Hi!” But find me early, I’m not much of a dancer!

With 15+ years of sales experience, often working for small companies with no brand recognition or large marketing budgets, I’ve learned that a repeatable process for selling is a must. At the beginning of the sales cycle, giving and getting referrals is key to my business. Cold calling is a necessary evil in sales but it’s less and less effective every day with caller-id and spam filters.

Many sales reps want to GET referrals or will only GIVE a referral if they get one in return. But the most successful referral-based sales reps, business owners and rainmakers know that giving referrals without expectation of one in return is the best course of action in the long term.

My Karma Keys to a Referral-based Business are -

* It’s better to give then receive

Yes, this seems counterintuitive for a sales person but try to give referrals without the expectation you’ll get one in return. That doesn’t preclude you from remembering who behaves the same way you do and networking with them more than others.

* Give referrals to enhance your reputation

Don’t give referrals just as a favor to the person asking for one. Instead, give a referral to enhance your reputation and trust with your colleague that you are making the referral TO. (Often known as the Giver’s Gain theory)

* Get referrals from Customers, Vendors & Sales Colleagues

Don’t limit asking for referrals from customers as your vendors and sales colleagues often have great connections they’d be happy to introduce you to.

* Reputation Matters

No surprise but the better your reputation, the more likely you are to get referrals and be asked for referrals. If you say you can give a referral, make sure that you follow through with that warm introduction. If you get a referral, treat your colleague’s contact with the utmost respect.

How long do companies survive when they are difficult to do business with? Even worse, how long will they survive when they were innovative and easy to do business with and then decide to be difficult?

VS

My favorite airline is American Airlines. My dad flew for them for almost 25 years so I naturally prefer to fly them. They have decent airfares and they’ve been first with some big marketing programs, like frequent flyers. They even developed the 800lb gorilla of ticketing software, SABRE. Their website is pretty decent to pick flights from, especially if you’re trying to use those frequent flyer miles. I have over 1M miles on American and no more than 50K on any other airline.

So then why the decision to make it difficult for Kayak customers to purchase AA tickets? They sent me the email yesterday telling me that they’re ending their association with Kayak. But they don’t tell me why it’s good news for ME. Just some marketing blather as they try to spin this as good for me. Ridiculous. Especially when Kayak shows the AA and Orbitz fares side by side and the Orbitz fares are the more expenive one.

So, Kayak makes it really easy for me to find the flights I want and then shows me that the AA flights I want are cheaper on AA then elsewhere. But AA is concerned that I might choose Orbitz and a more expensive ticket for the same flight? So not only are they difficult to do business with but they think I’m stupid. Thanks for the memories, AA.