Discover how to sell at higher margins WITHOUT doing estimates as you use the Competition Annihilation Method
Dear Printing Colleague,
“Your quote is too high!”
Oh, the horror those dreaded 5 words can instill in even the most stout-hearted printer. They can send your entire world crumbling. It’s even worse when they are being uttered on a continual basis.
Most printers have had the same experience. Sometimes it’s from supposedly loyal and long-term clients. After the years of producing high quality print for them, solving emergencies and providing outstanding service, these can be the most frustrating ones you have to deal with.
Sometimes it’s your sales people coming back to tell you that if you want to win the business you need a lower price. You may feel like telling them to grow a spine and stick with the price, but deep in your heart you understand it’s getting tougher out there.
And it’s not that they want a lower price that’s so frustrating. It’s the fact that you can’t figure out how to get a HIGHER PRICE for the great work you produce.
You look around and see the presses are busy. Your staff feels overworked. Competition is more intense. You’re not selling enough. You don’t know what to do… you feel dead in the water.
It seems you are working harder and making less money. It can be profoundly frustrating and disheartening!
However… there’s a different profit reality out there. It’s a new game with new rules and it produces real, sustainable profits. It’s reserved for a small percentage of the print sector. Statistics tell us that only 20% – 25% of printers play in the new game. So… let’s look at how it works.
Get On The Profit Bus
Imagine you are at a bus station in your local town or city and you need to go west. Let’s say that in the west you can discover the keys to differentiated print, increased sales and improved profit margins. As you look around, you see buses going in two different directions – some east and some west. Which bus do you get on?
You get on the bus that’s going in the direction you want to travel
And you want to do the same in your printing company. You want to travel on the bus that’s going in the direction you want to travel. So, you may be wondering how this bus metaphor relates to print?
The printing sector is constantly changing. As you reflect on the changes you see about you, you begin to realize that the pace of change is accelerating because of advances in technology. And the speed of these changes means you need to adapt how you do business. Strategies and business models that worked 5 & 10 years ago, do not work today.
The world of Print 1.0 is fading into the dim and distant past.
If you are still trying to make money the old ways, you are riding the bus in the wrong direction. It’s a lot easier to make money if you are moving in the direction of the changes.
Show me how to do it on the video
To discover if you are riding the profit bus in the right direction, take this simple 3 point test.
Take This Simple Profit Test
# 1: Differentiated Printer OR Commodity Printer?
Imagine you are sitting in a room with 10 of your ideal prospects sitting in front of you. They each have a mouth watering print job ready to award to you. Unfortunately, 4 competitors have also been invited to the party! You have one of your letterheads sitting on your lap and you begin to jot down your core difference. Your Unique Selling Proposition (USP) if you will.
Test: If you removed your logo, could you place the logo of your 4 competitors on your USP and could they make the same claim? Be honest! If you are making claims that include great service, fast delivery and quality product, of course your competitors will be making similar claims.
# 2: Print For Quality - OR - Print For Performance?
When you own - or run - what is essentially a manufacturing company, it’s very easy to lose sight of the real purpose of your product. When you sit down to think about it, each printed product is produced to perform some task.
It’s far too easy to forget this fundamental principle. A brochure is produced… not to look really fantastic or impress the marketing folks, it’s produced to help sell products and services. That is the ONLY measure of success.
Test: Look closely at the last 10 print jobs you produced and ask yourself, how well did you understand the performance criteria for these jobs? How hard did you try to improve the performance instead of improving the quality?
# 3: Competing On Cost – OR - Increasing Return On Investment (ROI)?
The more that customers and prospects put pressure on you to reduce your prices the more low prices seem to be the MOST important buying criteria. It feels that way, but in most cases it’s not true. If you were buying stocks and shares are you interested in the price or the ROI you will get? If you are buying a printer are you more interested in the price or the productivity gains and new sales opportunities it might open up?
Sure, price is important, yet…it’s THE ONLY CRITERIA… unless you change how prospects make their decisions.
Let’s look at a simple example. It’s common knowledge that (a) direct mail is one of the biggest trends in print and (b) that 40% of printed products end up in the mail stream.
Imagine a prospect asks you to quote for a print job that is worth $1,000. Let’s assume that it’s going to end up in the mail stream. On average, the actual print for a job like this will be 10% of the total project cost. That includes the costs for; list purchase, creative, copywriting, postage / fulfillment and response management. Let’s say the total project cost is $10,000 for your prospect and she expects to get a total $15,000 return.
Scenario A: The prospect puts pressure on you to reduce your price. You agree because you need the work and cut the price to $900. If you were making $350 gross profit initially, your profit is now down to $250 – a 28% hit to your GP and the client saved $100.
Scenario B: You change the focus of the conversation and work with the prospect to improve the ROI on the project. By testing some lists, offers, guarantees, testimonials and headlines, you improve the ROI by 10%. The prospect makes an additional $1,500.
RESULT: In scenario ‘A’ you lost 28% of your profits and the client saved $100. In scenario ‘B’ you kept all your margins and the client made an additional $1,500. That’s a BIG difference for you and your client. Now you are both HAPPY.
Test: Look back through the last 10 projects you’ve quoted on. Now…mark which ones you competed for on cost - and which ones you moved the conversation to ROI.
Introducing The Competition Annihilation Method
If you want a systematic approach to make your competition irrelevant… and explode your profits… go check out this video. It explains step-by-step how the Competition Annihilation Method works.
This is the ONLY system our salespeople are allowed to use when sitting in front of a customer… or prospective customer. ALL our salespeople are over target, and as a company, we are on track to double sales this year.
This system is key to our growing success
It's taken me 24 years to get to the stage where I can explain this system in a way where anybody can get it. If you need to boost your profit margins… or close more sales - this could well be the most important video you watch this year.
In it, I'll reveal five different – easy to use - frameworks that you can instantly apply to explode your sales and profits. Your competition will be confused… your prospects will be delighted… and you'll be richer.
Take me to the Competition Annihilation Video fast
My webmaster is itching to lock this video away in our member's vault. He’s nagging me already! Go watch the video before he takes matters into his own hands.
Sales... Profit... & Cashflow Strategies For Printers
Nick Devine
Founder and Publisher
www.ThePrintCoach.com
www.PrintersProfitSystem.com
{ 99 comments… read them below or add one }
Thanks for the help
I need a new approach
Very interesting. Hard to imagine a Printer with better ideas for sales, profits, customers than the prospect himself.
Thank you for this!
Very helpful. Something one knows intuitively, but is harder to implement because it requires planning.
I do not see how Print 2.0 will be adopted by Procurement Managers & Supply Chain Consultants whom by nature are category focused and target price as the common denominator within their portfolio. They usually do not have a budget (not spenders but savers) and are measured on the amount of savings generated. i.e: The cheapest room rate in a hotel; best fleet car deal or cheapest print via a matrix style price-list. How can they be measured in a Print 2.0 environment?
This is indeed great
For Colin
Your comment about Procurement Managers and Supply Chain Consultants is accurate. Our position in our company is we are not going to be the low cost supplier. We're not geared up that way and we can't make money with that business model. Our position is this – if we can't add tremendous value to the prospective customer - or they are not willing to pay for the value we bring - we don't do business. We make this clear to prospects early in the process if we ever get a hint they are only interested in price... and nothing else.
We let them know we would not be a good partner for them and they should look elsewhere for a different partner. One of the things that means for our business is we don't do business with procurement managers and supply chain consultants as a rule of thumb. We also avoid purchasing departments in large organisations until we have articulated the value we bring to the company thought a different department – usually the marketing director.
Hey Nick,
I can't wait to turn down my first estimate request.
How would you use this beautiful selling model with clients who are already giving you business? To penetrate deeper into the organization and build greater trust without hurting their designers,marketing directors, etc?
Thank you.
David
For John Broadrick
Hi John, yes... it does work in a small business market. I've used this method selling all kinds of products and services for years, in a variety of markets. It works every time. The trick (if there is one) is to find a unique way to add value. The first step is to understand the fears / frustrations & dreams / desires of your target market. That helps you understand the pain. When you understand a prospects pain points, then you have a way of adding real value. Starbucks did it with coffee! Good luck.
For Julian Workman
Hi Julian, all sales people are capable of getting it. It's a decision to change a habit and a commitment to adopt a new one with the required discipline. The technique / selling approach itself is not that difficult, though a lot of people like to pretend it's more difficult than it is.
For Scott Davis
Hi Scott, see the comment for John above. You can (and should) take this approach with all products in all markets. If you are not creating and selling value, then you are selling a commodity. Commodity buyers usually go with the low cost provider... especially true in a recession.
so far this sounds logical
These approaches seem so matter of fact yet so jarringly revolutionary!
How do I enthuse my older salespeople who are entrenched in what they do and get them to come around to a new way of thinking and selling??
Fantastic, we are print managers and do this exact selling approach we we work with the client to "reduce their cost of doing business". We deliver the services online and offer lots of other online services but at the end of the day through helping our clients get what they need and not what they want allows us to achive great profit results and very loyal clients. Cheers
Neil Clark
Sounds very interesting - Must look into it further...
I found the presentation very interesting. The concept is not foreign to me, print audit method does work. Interested to learn more about Print 2.0
Thank you for giving me thinking material. Not sure it would work in a small business market, but like to try it.
I am sick of clients who ask for "cheap".
Great tips Nick. We always remind our sales people that selling is not about telling, it's about asking. By asking you move into their world, find out what they are buying and sell it back to them.
Keep up the tips.
makes sense probably about 3 % of print sales people capable of getting it.!
another Ahh Haa! Moment
Loved the article by Nick Devine, and yes the key to success is to move with the times.
Your presentation via Print21 was very good and on the mark. I look forward to receiving the slides.
Thank you
Nick,
Thanks for the tips via Print21. Your method is great and I support your approach. Please send me your slides and we will research further
Nick,
Read your article on Print21online. Excellent stuff. Will look at the slides with interest.
Looking forward to learning more about the process. Thank you.
Thankyou, it certainly gives me a different way of thinking about the market.
Rgs Michael.
Excellent process different from the normal selling process.
Very interesting perspective on print selling
I have just listened to the video - has changed by views & am excited to learn more on changing my 15 year habit of selling product!
it all sem common sense but may people fall for the reduction in costings without spending the time to consult with clients if you have only agencies to deal with your out of he negotiation loop.
Cheers' Nick, Just checking to see what the punters experience.
Patrick
Makes perfect sense. Thanks for sharing this with me.
I found your presentation extremely informative and a strategic reminder to involve and evolve the print company closer to their customer. A separate minor comment would be the spelling of the word "buy" being incorrently spelt as "by" in your presentation.
really struck a nerve for where we are at. I have been trying to implement value add and ROI selling for some time with our sales force but having difficulty in getting them to changre their habits. Your insights are very relevant-it takes a lot of discipline to refuse a quote
Will be using this method for selling of Printing machinery. Is this advisable?
I am the CFO at Finsbury a small printing business. I am new to the industry. The name "Competition Annihilation" caught my eye. I am half way listening to your video and I find it interesting. Would love to get a copy of the slides.
Very thought provoking! I will be preparing for my next customer meeting quite differently now. Looking forward to trying these techniques.
Excellent to see such a well grounded and informative presentation.
About time too
Can't wait, we really need this input.
Revenue is the reward for a job well done!
I do not see how Print 2.0 will be adopted by Procurement Managers & Supply Chain Consultants whom by nature are category focused and target price as the common denominator within their portfolio. They usually do not have a budget (not spenders but savers) and are measured on the amount of savings generated. i.e: The cheapest room rate in a hotel; best fleet car deal or cheapest print via a matrix style price-list. How can they be measured in a Print 2.0 environment?
This was very interesting. I like your style of selling and want to teach it to my sales staff.
Unable to access the video and would love to show to our sales team for inspiration as heard its great.
Great insights very helpful
Excellent
For Colin
As a rule, we stay away from procurement managers. You are right in most circumstances... their job is to save money. We've made this work successfully in a couple of situations. We have build relationships at a higher level in the organization and demonstrated our value add and our differentiation. When we do that we are an 'orange' and everyone else is an ‘apple’ - we can't be commoditized. If you have packaged your services and developed a customized solution for the client... it's hard for purchasing to price shop you. Our simple rule is... sell unique value to business people and not purchasing folk. This goes back to the fundamentals (a) decide who you are selling to = your niche market / ideal client and (b) decide what you are selling = your unique value proposition. This takes time and effort but the alternative of selling commoditized print is worse.
' and everyone else is an apple - we can't be commiditised. If you have packaged our services and developed a customised solutions for the client... it's hard for purchasing to price shop us. Our simple rule is... sell unique value to business people and not purchasing folk.
Hi, Very interesting
and has given me ideas as all printers get tired of doing quotes and not getting the work
customers do shop around and we don't get a good return especially for our investment on plant.
We would rather print for good margins which goes to your bottom line.
Thanks Nick for the video
Hi, Nick very interesting your video gives one more ideas.
Thanks
Great methodology
Great presentation
Interesting. Please send me the slides to study further.
Thank you!
This will take some bravery and possibly some different employees...
Very good, I look forward to using your idea and advising how it is working
Great slide program, this gave our sales team some insight on new ways to separate ourselves from the
competition.
Competition Annihilation is the true essences of "Solution Selling"…great work.
Nick this makes so much sense to me. How do I go back to current clients who are accustomed to dealing mainly on price and change up the way we do business together?
I enjoyed the video and was enlightened by this strategy. It is interesting to have a company polcy to refuse quotes and go after the big picture.
Very interesting - makes good sense. Will give it a go straight away.
Headed for the blog to ask about a meeting Fri.
A valued client today is one that allows you to meet the lowest quote. Too easy to reduce to meet, we will take a new approach now.
Great stuff, clearly outlines what we all know we need to do but lose sight of when standing in front of a client asking for a quote!
Your timing on this is perfect! It fits exactly what I decided over the weekend the direction I want to take my company
The information on the video confirmed our strategy as a print manager to differentiate ourselves from those who provide printed products rather than a complete package where print is but a small part of the value. The difficulty we find is locating potential customers willing to look at the bigger picture and treat their print needs as more than just a competitive price negotiation.
This is one of the parts of the business I truly enjoy - helping clients to get the best ROI on a print job. What is the goal of the print piece you need done? That's a valuable question to ask our/your clients.
very informative, thanks
Thank you for giving me the Opportunities and material. I'm excited to give it a try and share with my sales group
The initial information in this article generates quite a lot of curiousity due to the fact we are continuously beaten on price even though our customers are complimentary on our quality and service
great philosophy
Thanks so much for sharing your thoughts! I am new to sales and have been struggling to get past the commodity aspect! Your thoughts about being out in front of the customer make a lot of sense to me!
Thanks for the video, I like the angle. I've been a trade printer for 10+ years but have lost work to the gang run printers. How would you apply these principles the wholesale market?
Great ideas to advance the company culture from product to Customer level 4. Should be compulsory for print companies trying to get out of the pack.
I hear this will make all the difference
Very nice presentation. Great way to look at selling from a very different angle.
This exactly addresses the broken selling processes we have. Luckily our competition has these same problems, so now we have an opportunity to leapfrog them!
Great presentation, it certainly is a positve approach to build a stronger consultative approach.
sales , sales and more sales
very apropriate and interesting
Excellent. More information on securing a positive meeting with the decision maker in the first place required.
Video was excellent. I look forward to implementing this system in our sales cycle.
Can't wait to implement with sales team
I am new to the industry and found the video very helpful.
our company needs a program like this
Very good ideas and not rocket science either!
Seen a sample and would like to see more
How can I apply this process to long-distance customer prospects which whom I can only schedule advance appointments over the following 60 days, instead of the next immediate 1-2 weeks?
Thanks. Good stuff
Hi excellent work. We have a very simular way of working called Stategic Value Selling and find mixed success mainly due to quality of salespeople and thier ability to change. What are the key competencies required from Sales people? Again excellent!
Please send me the slides and details of the other video presentaions in this series. I can't wait to try this out. Thank you!
great
can i apply this method in recruitment and HR Industry
Is it possible to download the video presentation?
Thanks Nick. It was very enlightening and different.
I sold my equipment and building earlier this year. Loving being a print brokerage but need help in making the business take off. I still have a hangover from many years of losses and would love to learn how to make a lot of money for a change.
Response for Vicki
It's actually easier than you might think. The key is to reduce the amount of time you discuss print and increase the amount of time you spend talking about their business objectives. Sometimes that can mean you need to be talking to someone higher up the organization.
Response for Donald Turner
That was a good questions and I'll give you a short two part answer
What is selling? Selling is the ability to find (lead generation), win (sales conversion), keep (customer loyalty) and grow (account development) the best customers in your market. Anything that sales people do that is not one of those for activities is costing them and the company money.
How do you hire sales superstars? You hire based on performance and not based on emotional estimation. Most recruiting is done on the basis on 'I have a good feeling about this candidate'. Successful recruiting is based on your ability to hire based on what people can and have done and not on what we and they would like to think they can do. That recruitment process is very different to the traditional recruitment sales model.
Thanks for getting involved in OUR blog.
Nick
Seems like a nice system
will review again
Competition Annihilation is quite a mind stretch. I think I see the point, but this will be a whole different approach. I see the advantage in not quoting. I hate quoting. So I need to change the approach. Here goes!