Copyright
®1990 by Bob Bly
Reproduction of any portion of this booklet is
permitted for individual use if credit is given to
Bob Bly. Systematic or multiple reproduction or distribution
of any part of this booklet or inclusion in publications
for sale is permitted only with prior written permission.
4th printing
Recession
fighting strategy #1
Reactivate
dormant accounts.
To reactivate a dormant account means contacting a
past client or customer-someone you served at one
time, but are not actively working for now and getting
them to do business with you again.
The quickest and easiest way to do this is to sit
down with your list of past clients or customers,
call them, say hello, and see what's going on.
Don't make this a hard-sell call. Tell them, "Hi,
it's Jane. I'm calling just to check in and see how
you're doing, since it's been a few months since we
last spoke." Ask them what's new ...how they're
doing ...what's going on with their business.
You don't have to ask for work directly, but when
you end the conversation, you might say something
like, "Well, it's been good talking with you.
Keep in touch, and if there's anything I can ever
help you with, don't hesitate to give me a call."
This lets them know you are interested in working
with them again-without putting the pressure on them
to give you an order right then and there.
If you are uncomfortable phoning, you can send a letter,
perhaps calling their attention to a recent article,
literature on new products or services, or testimonial
letters from your other accounts. This accomplishes
essentially the same goal-to recontact the client
or customer and remind them of your existence, products,
services, and availability.
What kind of results will you get? It depends on whether
you catch someone with an immediate or upcoming project
with which they need help. On average, expect one
order or assignment for every 10 calls you make.
Warning: Don't call up and say, "I'm not
busy and need work right now; do you have any assignments?"
or "Things are slow; how about an order?"
This is a terrible approach-for two reasons.
First, the client or customer feels pressure, feels
he has to come up with an "excuse" why they
haven't given you an order lately. This is uncomfortable-and
awkward-for both of you.
Second, it makes you seem desperate, and you do not
want to seem hungry or needy.
In fact, a key goal of all of these 14 recession-fighting
strategies is to make it seem that your purpose is
to serve the client or customer better and more efficiently,
not fill a gap in your slow work schedule. Always
say you are calling to help them... and not,
as is really the case, because you need the sale.
Recession
fighting strategy #2
Reactivate old leads.
If you're like me, here's how you handle inquiries.
Someone calls. You send information. You call to follow-up.
They don't respond. You call again. After that, you
give up and forget about them.
But believe it or not, many of those leads you simply
gave up on can be turned into profitable business
for you ...with just a little extra sales effort.
In fact, a study by Thomas Publishing Company reveals
that most salespeople, regardless of the industry,
give up too early.
According to the study, 80 percent of sales to businesses
are made on the 5th sales call, but only 10 percent
of salespeople call beyond three times!
So you have probably not followed up on leads diligently
enough (for example, I almost never call more than
twice), and the new business you need may already
be right in your files.
The best way to reactivate these old sales leads is
to call them. Ask whether they got your material,
whether they have an immediate or future need, and
what the status of that need is.
This technique can be profitably used on prospects
who have inquired within the last year or two. The
best prospects, however, would probably be those who
contacted you within the past 6 months.
I find that one-quarter to one-half of the prospects
will encourage you to send literature, and perhaps
one or two out of ten will come through with an order.
Recession
fighting strategy #3
Help existing clients or customers
create new assignments or sales for you.
Usually, my clients come to me with assignments they
want me to handle for them.
But if they don't, and I want to generate additional
revenue, I will call them up and suggest marketing
ideas they can use-ideas which, if they go ahead with
them, they will ask me to implement for them.
Now normally I encourage you not to give away your
advice for free.
But if business is slow, there's nothing wrong with
tossing out a few quick ideas-things which may be
obvious to you and you didn't spend a lot of time
coming up with, but which will be extremely valuable
to your client or customer.
For instance, when one of my clients introduced a
new service, I immediately suggested a direct mail
idea he liked, which resulted in a $2,500 copywriting
assignment on the spot-a $2,500 assignment he would
not have given me otherwise.
So when things are slow, and the clients or customers
aren't calling, you can call them and help them come
up with assignments for you.
Key Point: Obviously, your approach is "Here
is an idea that can help you, Mr. Client (and by the
way, I'd be happy to implement it for you)."
Not- "Please give me an assignment so
I can keep busy and make money."
Recession
fighting strategy #4
Give a superior level of
service to your clients and customers.
In a recession, or during other times when business
is slow, you want to do everything you can to hold
onto your existing clients or customers-your "bread-and-butter"
accounts.
The best way to hold onto your clients or customers
is to please them. And the best way to please clients
or customers is to give them not their money's worth,
but more than their money's worth.
Now is the time to go the extra mile, give that little
bit of extra service that can mean the difference
between dazzling the client or customer vs.
merely satisfying the client or customer.
The best protection against a downturn in new business
is an active list of happy, satisfied clients or customers-people
or firms who give you a steady stream of continuing
assignments that pay the rent and feed the family.
So cultivate your current clients or customers. Nurture
them. Serve them well. Do everything in your
power to make them happy and keep them satisfied with
your product or service-so they keep coming back for
more.
Recession
fighting strategy #5
Quote reasonable, affordable
fees and prices in bid situations.
If times are tough for you, they may be tough for
others in your industry.
Clients know this and may seek to take advantage by
sending jobs out for multiple bids, where previously
they might have come to you only.
And if there's a recession, the cost of services or
products will become more of a factor than it normally
is; customers and prospects will be unusually price-sensitive.
The solution is to bid competitively, but reasonably.
If you are high-priced to begin with, and you insist
on getting top dollar, be prepared to lose out in
some bidding situations.
How should you price your products or services during
a slow period or a down economy?
Don't instantly lower your prices to rock-bottom.
You may never be able to raise them again.
Also, you don't necessarily have to reduce your prices
...especially if your rate card or fee schedule presents
a range of fees.
You should, however, bid toward the middle
or lower end of your published fee range, rather than
at the maximum.
For example, if you list $5,000 to $8,000 to write
an annual report, quote a price of $5,000 or $6,000,
not $8,000, to make sure you are not charging way
more than other firms bidding on the job.
As a rule, during a recession you probably want to
adjust your bids so they are 15 to 20 percent lower
than what you would normally charge in a healthy economy.
This gives your prospects the break they are looking
for, shows fairness on your part, but does not cost
you much in the long run.
Note: Do not tell clients or customers that
the fee is a special reduced fee. Simply present it
as your bid on the project. If customers and prospects
sense you are cutting fees because you are losing
assignments, they will take advantage and try to force
your prices even lower. So keep your pricing tactics
secret, and simply present the price as you normally
would.
Recession
fighting strategy #6
Use low-cost "add-ons" to
generate additional revenue.
One way to generate some extra profitable business
is to encourage clients or customers to add on to-or
expand-existing assignments or purchases.
For instance, if one of my copywriting clients is
doing an ad on a new product, chances are they need
a press release also.
I can upgrade the total project fee by offering to
do both jobs for a package price. For instance, if
my fee for the ad is $1,500, 1 may tell the client,
"You also should send out a press release to
all the publications in the field. I can write a press
release while I do the ad for you; the additional
cost is only $500."
Frequently the client or customer will accept such
a recommendation, and I get an assignment that is
$2,000 instead of $1,500. And it's easy to do the
small add-on project, since it uses the same basic
background information and material provided for the
main assignment.
This is an easy income-booster. Using this technique,
you can increase the average dollar value of
each project 10 to 40 percent or more with virtually
no extra sales effort.
I often look for ways to add extra or ancillary assignments
to the major assignment. It's good for me-and good
for my clients. I get more work They get a more complete
service. Try it!
Recession
fighting strategy #7
Avoid being a prima donna.
Let's face it. When you're busy, in demand, an, have
much more work than you can handle, it's great feeling.
The tendency is to get a swelled head. My advice is:
don't. And why not? Because when things are slow-like
now-it will court back to haunt you.
Nobody likes a prima donna. You don't. And neither
do your clients or customers.
Now, you may put up with a contractor, doctor,
or freelancer who's a prima donna because you feel
they are the best source of service ...and you know
they're so in demand that you need them more than
they need you.
But you don't like it-in fact, you resent it-and you'll
always be on the look out for another supplier or
professional to replace the prima donna.
Your customers feel the same way. And, when
the situation reverses-when things are slow for you,
and the client or customer knows you need work from
them, but they don't need you-they'll take revenge.
And you'll be out.
The solution? Always, always act like a pro-like
a helpful friend and consultant to your client or
customer.
Be useful, courteous, and accessible. Don't be a snob
or act high-handed.
If you give your clients or customers genuine reasons
to like you, and you are always helpful to them, they'll
stick with you ...and that can make a big difference
in your life when things get slow.
Remember, in a depressed economy, continuous business
from ongoing, current clients or customers
is what keeps you afloat.
Make sure you have that business when you need it
tomorrow by acting professionally and properly today.
Recession
fighting strategy #8
Postpone any planned fee increases.
A recession, depression, business downturn, or soft
economy is not the appropriate time for you to increase
your fees or prices-even if you feel you deserve it
and that a raise is long overdue.
During such a period, you should defer any
planned fee increase announcements until later, and
instead keep your fees at their current levels.
Note: Don't announce to your customers and
prospects that you are "holding the line"
on prices due to the recession and your desire to
help them through it. Remember, even though you are
feeling the effects of a soft economy, they may not
be going through similar difficulties. Thus, your
announcement would clue them into the fact that you
are in trouble ...and some may take advantage of your
perceived need of business by haggling on price with
you.
So leave your fee schedule as is and continue with
business as usual.
Recession
fighting strategy #9
Downgrade slightly your
acceptable client or customer profile.
You have a set of written or mental guidelines that
determine which clients or customers are desirable
to you ...and which are not.
During a depressed economy or personal business downturn,
you may want to be more flexible in this area than
you usually are.
For instance, if you normally do business with Fortune
500 companies only, you may want to consider taking
on assignments from smaller local firms ...provided
the pay is decent and their credit rating is good.
Or, if you normally work only on major annual reports,
you might consider knocking out some small quarterly
reports to generate needed revenue.
This doesn't mean you throw your standards out the
window and work for anyone who calls you. Far from
it. Instead, you are simply readjusting your acceptable
client or customer criteria during this temporary
lull to accommodate a wider range of prospects and
projects.
How far should you take this? It's up to you. If,
for example, you normally have a minimum project fee
of $1,000, you might accept $500 assignments, but
you probably should stick by your guns and not take
on $50 assignments.
Recession
fighting strategy #10
Plan an aggressive
new-business marketing campaign.
This strategy has two parts to it.
The first part, which seems blatantly obvious, is
that when things are slow, you increase the percentage
of your time spent on marketing and prospecting for
new business.
For instance, if you usually devote 10 percent of
your time and energy to marketing and sales when things
are fairly busy, you might increase this to 25 percent
when things are slow. During a lull in business, you
need to make this extra effort to attract clients
or customers, follow up on leads, and close sales.
The second part of the strategy may not be so obvious.
It's this:
To prevent a lull in business from ever happening
in the first place, you should market consistently
and aggressively all year long, every week-not just
when you need the business.
Planning an ongoing marketing campaign ensures a steady
stream of new business leads. Marketing done today
begins a selling cycle that will result in new business
when you need it six months from now.
What types of marketing work best in a recession?
Use a combination of result-getting direct marketing
(direct response print ads, sales letters, self-mailers,
postcard decks, special offers) plus low-cost/no-cost
visibility-enhancing publicity techniques (press releases,
articles, speeches, booklets, seminars, newsletters).
Avoid costly "image-building" marketing-such
as large space ads, slick corporate brochures, expensive
annual reports, and other marketing communications
that drain your budget without producing measurable
results.
Note: For specific recommendations on the combination
of these marketing techniques that will work best
for your business, call me at (201) 385-1220.
Recession
fighting strategy #11
Repackage your services
to accommodate smaller clients
or customers and reduced budgets.
When you're busy, there's a whole group of prospects
you probably turn away without a second thought.
These are companies that are too small (read: too
under-budgeted) to afford your product or service.
But when things are slow, it pays to look for ways
to generate revenue from this normally overlooked
market segment.
This is best done by repackaging your service or product
line to accommodate smaller clients or customers and
reduced budgets.
For instance, the client or customer who cannot afford
to pay you $5,000 to write his direct mail package
can afford to pay you $400 to critique a package
he writes himself.
He can also afford to pay you $100 an hour for your
consultation services, take your full-day direct mail
seminar for $200, or buy your book for $25.
Freelancers, consultants, and other service providers
can repackage their expertise and services in a variety
of formats including hourly consultations ...critiques
...telephone consultations ...newsletters ...special
reports ...booklets ...audio tapes ...instruction
manuals ...books ...seminars ...etc.
Manufacturers and other product sellers can offer
compact models, economy sizes, no-frills versions,
special discounts, payment plans, and smaller minimum
orders.
These alternatives may not provide as complete a solution
as the deluxe package. But they give the smaller client
or customer the help he needs at the price he can
afford.
When the big companies are not giving you the big
orders at the big prices, selling these alternatives
to the less affluent segment of the market can put
lots of extra dollars in your pocket.
Recession
fighting strategy #I2
Add value to your existing service.
In a recession or soft economy, clients or customers
in all areas are more concerned with price than ever
before.
Actually, though, their real concern is making sure
they get the best value for their dollar.
You can win new accounts and retain existing clients
or customers by enhancing your service and providing
your clients or customers with more value for their
dollar.
For instance, if you are selling a commodity item,
you could add value by offering faster delivery than
your competitors. Or a larger selection. Or more colors.
Or more options. Or easier payment terms. Or a better
guarantee.
There is no need to "give away the store"
and promise an excessive amount of extra service.
just a little extra effort or service on your part
will be perceived as a significant increase in value
by the client or customer.
The "extras" you provide need not take a
lot of time or cost a lot of money.
Always look for ways to give the client or customer
not just their money's worth but more than
their money's worth. These "little extras"
always pay big dividends in client or customer goodwill
and ongoing future assignments.
Recession
fighting strategy #13
Keep busy with ancillary assignments or accounts.
A slow period in your business is a good time to busy
yourself with other projects. Such as cleaning out
your files. Developing a new marketing strategy. Making
technical improvements to an existing product or service.
Auditing your customer support procedures. Revising
your standard proposal or sales letter. Redesigning
your slide presentation. Or any of a hundred things
that need doing but never get done.
Now you have the time. So do them.
Don't waste the extra time moping. Instead, put it
to good use. Be productive.
Another strategy is to take on ancillary assignments
to fill in gaps in your work schedule. This keeps
the money coming in until your regular business picks
up again.
For example, a carpenter who is normally busy with
major home improvement projects saw business fall
off during the slowdown of the early 1990's. His solution:
Call old customers and offer to do odd jobs, small
projects, and general "handyman" work to
generate income until he got calls to do large remodeling
jobs again.
Recession
fighting strategy #14
Be positive.
The most important thing about a slow period is not
to be depressed by it. If you are depressed, prospects
can sense your desperation and fear, and it has a
negative effect on your dealings with them.
Remember that everybody in business has slow
times; those who say they never do are liars. You
are talented and successful. The lull is temporary.
People will call you and hire you again.
Don't despair, and don't give up too soon. It is possible
to have 2, 3, even 4 or more slow months. But if you
follow the 14 strategies outlined in this booklet,
you can turn things around and become busy and profitable
once again.
