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Volume 2, Issue 3    

      60 Seconds with Achievers Group        

                       Your Fortnightly Vitamin

 

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Dear Friends,

 

Here is an extract from our 1st book, The Pillars of Business Success.

 

This extract is a parable which is common amongst most businesses. I hope this inspires you to change your habit of discounting.

 

Tony Gattari

Arriving

 

2 April 2007

 

 

The Pillars OF BUSINESS SUCCESS

Pre-Order Now!

$24.95 +p&h

Foreword by Peter Irvine

Co-Founder of Gloria Jean's Coffees

 

The 12 Commandment – Thou Shall Not Discount

The office furniture industry is extremely competitive. Some businesses treat the purchase as non-essential to the business, and always try to get the lowest price possible. A lot of people see office furniture as no more than a commodity – chairs, desks, filing cabinets, etc – so the value proposition is greatly reduced in the mind of the buyer.

 

There is a legend told in the industry, how one office furniture supplier went broke trying to win a major contract at all cost. The contract that was up for tender was one of the largest office developments in Australia, and all the companies that were involved in the pitch, knew that it would give their company great leverage in using it as a reference for future pitches.

 

Ego prevailed over sensibility for one of the office suppliers. After each company has submitted their tender, the purchaser was open to who had the best bid, and at what price that bid was placed at. Most of the field dropped out knowing that they could not afford to lose money on the deal. One of the office suppliers took the bait, and sharpened the offer. The fame was too great for the supplier, and they reasoned that the contract could be funded by future bids that they could win.

 

This office supplier, who gave the lowest bid, won the contract. The rest of the bidders wondered how on earth that this supplier was going to afford such a deal. They did not have to wait long to find out their answer. The company installed the furniture, and a sea of red started to appear on their books. On the completion of the installation, they had reduced their workforce by half, and shut down a couple of sites to reduce costs.

 

Eventually they went broke.

 

Why Discount?

 

Discounting is even more prevalent when times are tough, such as when interest rate or petrol price spikes reduce the amount of spending in the marketplace. Why is it that when times are tough, we lose faith in what our business is, and take on the poverty mindset and start discounting? The reason is very simple, business owner panic when sales are down, and feel that to compete in the marketplace, their prices must be below their competitors. Where do they get this information? “Our customer’s are always asking for a discount!” is the common response that I hear.

 

“The customer always complains that the price is too high, but then goes off and boasts about the bargain he got”

Proverbs 20:14

 

Activation

 

If you normally make 40% margin on a unit sale and you discount your price by 30%, how much do you have to increase your sales by to maintain the same margin?

 

A. 125%                B. 150%          C. 200%          D. 300%         

The answer is what? Well if you are struggling with the amount of time that you are working in the business at the moment, I hope you enjoy working nights as well, if you keep going at this rate.

 

Answer: D (300%)

 

Pre-Order Your Copy Now!

Only $24.95 +p&h

 

Articles

Rebuild for the Season

Master the Stress Test

Discounting and Killer Categories

How to Build a Top Sales Team

Get a Better Deal From Your Suppliers

Lead Generation - Are you Creating Enough Heat?

Business Masters Academy - Secrets of Achievement

Imagine if you could increase your profits, whilst reducing the amount of time that you work in the business. Imagine if you could improve your cash flow, so that you never have to go begging to the bank.

 

The Business Masters Academy works on reducing all of your major headaches, and turn your business into a highly profitable turn key operation.

 

Click here to view all 10 workshops

 

 

Workshop 1: Secrets of Achievement

This workshop focuses on the qualities, characteristics and beliefs that make successful people and their businesses. In this workshop we will explore the eternal truths that always lead to success. Truths like vision, clarity, teamwork, faith, purpose and self belief. An abundance mindset is essential to future business and personal success.

 

 

When:

Wednesday 28 February 2007

Where:

C2 Connection Centre

Cnr Silverwater Rd & Egerton St

Silverwater, NSW

 

Registration - 4.45pm

5.00pm - 8.00pm

Investment: $195.00
Click Here to Book Your Seat Now!

 

Marketing Mastery Program

Achievers Group has put together an all-day program which will give you immediate practical marketing strategies that will multiply your bottom line. In this workshop you will take away to your business:

  • Over 260 marketing strategies that will multiply your bottom line

  • How to develop a marketing plan that can be implemented with immediate results

  • A powerful unique selling proposition that will increase your value to the consumer

  • How to develop a pricing strategy that will increase sales and profitability without the need for discounting

  • The 5 core marketing principles and strategies that drive your results

  • Learn the 3 step process that will convert more customers and keep them purchasing time and time again

Click Here for more information on the Marketing Mastery Program

 

 

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