I credit my education to two men. They taught me more than the graduate professors in college. One was a self-made man, the other a hard core business man. The later was involved in retail and it’s his principles of business that this section of the website is dedicated. Thank you Crosby.
First rule: THERE ARE NO RULES!
Second rule: WHEN IN DOUBT, REFER TO THE FIRST RULE.
The answer is straight forward, get the customer to want to buy it, but also, get him to believe that you are the best source for the product. How do you do that?
First, know the product well, understand its history, current technology associated with the product, be aware of the manufacturing process and how it is shipped. You need be fully engrossed in the product you sell. There should not be a question you can’t answer. Even your staff needs to know the product inside and out. I’ll give you an example. I had to buy a dozen baseballs for a Little League team. One of my clients sold sporting gear. I went to him, while there I asked the question, ‘Why is this leather ball $2.99 and those leather covered balls $5.99 each?’ He went on to explain how each is made and the material used to make the ball. It turns out the more expensive baseballs use a different type of center and winding to withstand the strike force of high school students and they have to comply with the National Federation of High School standards to be used in high school games. Wow, he knows his stuff. I had no idea that there needed to be a difference in baseballs and before this, I didn’t really care. But, now I do care and it makes sense that baseballs meet certain standards to be used at the various levels of the sport.
Why would I want to go somewhere else to save $.25 a baseball when this guy can answer my questions?
Secondly, become the expert in the product. My client not only knew about his baseballs, he purposely went out to teach others about the sport. Within his marketing area, there were seven Little League systems or chapters. He knew each President and the assigned Equipment Manager for the league. He made contact with those managers and set up a teaching clinic for the respective team managers. There he would teach the coaches about the respective bat rules, catcher’s gear, and even the umpire gear. He became the expert on the subject matter. Because the coaching staff changed every year, he made it a part of his marketing plan to educate at the same time each year and receive his orders for equipment. From baseballs to landscaping equipment to uniforms, he got the orders. He was able to pitch his sales to not only get the customer to want to buy it, but that he was the best source.
The coaches got it right away. They also realized that his price was a little more than that national sports retailer; but the deal was much better because my client came with the package. They knew that if they went to the local national sports chain that the 19 year old kid in the baseball section did not have a clue. Worse yet, the clerk has never played the sport! Why would you want to buy your baseball equipment there?
Remember, THERE ARE NO RULES! Act on Knowledge.
Do you want to learn how to get returns like this?
Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.
There are four key principles used with value investing. Each is required. They are:
- Risk Reduction – Buy only high quality stocks;
- Intrinsic Value – The underlying assets and operations are of good quality and performance;
- Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
- Patience – Allow time to work for the investor.
If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above.
Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:
- Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
- Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
- Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.
Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:
- Lessons about value investing and the principles involved;
- Free webinars from the author following up the lessons;
- Charts, graphs, tutorials, templates and resources to use when you create your own pool;
- Access to existing pools and their respective data models along with buy/sell triggers;
- Follow along with the investment fund and its weekly updates;
- White papers addressing financial principles and proper interpretation methods; AND
- Some simple good advice.