MARCH 20, 2008

** Become a High-Powered Negotiator to Get the Best Deals
By Adrian Newman, Founder of e-Wealth Daily

As a business owner, every day involves doing battle: you
battle your competitors, your suppliers — even your customers -
- to make or close a deal that will bring in the money. Whether
you like it or not, every transaction requires — in some way,
shape or form — the fine art of negotiating.

If you're looking to make money or even to save money, it's
rare that you can walk up to a client or supplier and offer them
the price or cost that suits you. When price becomes the issue
that is holding up the sale, then you'll need to bring out those
high-powered negotiating tactics to get one step closer to
sealing the deal.

Here are some ideas I've used personally in my business
dealings that have worked well.

1. Try to avoid dropping the price: This is never an easy-way-
   out approach. If you're the seller, you'll lose out on your
   bottom line; if you're the buyer, you may not get the price you
   want. Add value to the deal instead. In other words, get more
   bang for your buck — something that will add a perceived value
   to the transaction. Price is always a bottom-line matter and,
   unless volume is involved, neither party will budge.
   
   
2. Never give up more information than is required until
   necessary: A business owner might get desperate, suggest that
   it's too soon to make the sale, and say that he/she is willing to
   work with the price or offer at the beginning of the
   negotiations. You always want to let the other person lead the
   way; this will allow you to respond to their offer when you are
   ready and to be on the defensive. Remember that it's always
   better to have your back to the wall with no chance of being
   surprised rather than having a fast one pulled on you.
   
   
3. Splitting the difference is amateur: You see it on TV; you
   may even do this with friends and family, but in the money
   game, avoid meeting the other person halfway unless it's to
   your benefit or as a last resort. This will cost you money,
   especially when you're the seller. Again, you want to get as
   much of your asking price as possible. To offset the negotiating
   rally, again add value to your offer. Give your customer the
   sense that the price isn't only fair but also loaded with
   premiums as well.
   
   
4. Get insider information: The more you know about someone
   else's business, the better an edge you will have in negotiating
   an improved price for something. If you discovered that your
   supplier is adding a suspicious mark-up that the industry
   doesn't generally call for, then subtly mention it to him/her
   during the talks. This will put the other person in a very weak
   position and, in turn, give you the upper hand. At the same
   time, you want to play fair and not punish the other person for
   his/her blunder. You don't want to make the person feel like a
   thief or a cheat. You'll want to move on to closing the deal as
   quickly as possible.

One final note about high-powered negotiating — everything is
negotiable! However, to be a pro, you have to know the limits;
be aware of when it is okay to continue and when to stop in
your negotiations with another person. When dealing with the
same people, the last determined price can become the new
benchmark for the next deal. Reset the counter every time and
negotiate every deal as if it could be your last with the other
person.

For a small business owner, you ultimately have
to be a salesperson in order to bring in money. But, as we all
know, not everyone was born to sell. If you're one of those
people who are more inclined to be at the "back end" of the
business (taking care of production, research, development,
etc.), then here are some selling techniques that I've used in the
past that can help you become a better salesperson and get
more sales.

1. Build your selling muscle: Believe it or not, you are selling
   something every day — you just may not realize it. Selling is
   just another way of convincing, enticing, encouraging,
   motivating, educating, or informing someone of something that
   they should buy, do, find, change or discover.
   
   To build your selling muscle, you have to incorporate the same
   qualities mentioned above into the product or service that you
   are offering. Don't think of it as selling — think of it as
   convincing someone that they need your service because you
   are their best option in the market. Now, how you convince
   them is another story and that's where your selling muscle
   comes in. You want to be able to seal the deal. Find books or
   other resources to help you refine the correct selling process for
   your type of business. When you can stop thinking of selling as
   "selling," and think of it as a daily exercise or ritual, you should
   see your business posting bigger profits at the end of the day.
   
   
2. Build your industry knowledge: You'd be surprised how
   many small business owners get into business without knowing
   the A to Zs of their industry. When you know the ins and outs
   of your industry, you are building background knowledge that
   gives you much needed power, control and confidence in the
   selling process. When you know your industry well, you will
   always have an answer for your customer, even if it's not
   detailed. And your customers will appreciate — and respect —
   your commitment to your business. You'll never need to worry
   about your cash register going silent.
   
   
3. Try different sales approaches: Depending on your business
   concept, you will need to use a variety of selling approaches,
   tactics or techniques to get customers in the door and buying
   more. Again, there is an abundance of information out there, in
   print and online, which is loaded with ideas on selling. If you
   have a service-based business, such as a computer repair
   service, for example, there's a limit to how effective your
   newspaper or radio advertising will be.
   
   
4. Actions speak louder than words (sometimes):
   Demonstrations can sometimes replace the verbal requirement
   of selling because people are drawn to the visual characteristics
   of the item that is being sold. Rather than discussing the
   features of the item or service, you can demonstrate the
   benefits and get an instant reaction from your crowd. Demos
   relieve you of the pressure of speaking to people directly, since
   you are using the sample merchandise as a distraction.
   
   Let's be honest here, though — you still have to communicate
   when demonstrating, but it can be more scripted, concise, and
   strictly benefit-driven. A question-and-answer period should
   follow your demonstration, but look at it this way: if people are
   asking questions, then that means potential buying interest is
   building. If you're flexing your selling muscle, you should
   have no problem making the person who is asking the
   questions your next purchaser.

** Turn on Your Television and Learn
By John Hurd, Chief Wealth Researcher

It seems that whenever the television is on in my home, it's
usually tuned to one of two different channels.

Neither of these channels are CNN or any other news channel.
And it's not The Weather Network either.

You'll find the television in my home tuned in to a dedicated
cooking and food channel or the channel dedicated to home
improvement programs.

The reason I like these channels is that I find everything about
these shows entertaining. There's drama, comedy and every
now and then I even learn something.

And it's these lessons that any upstart entrepreneur can benefit from.

You see, the hosts, chefs and home improvement gurus
featured on these shows have been given the job as host of their
own shows for a reason.

There are a lot of good cooks, adequate hosts and acceptable
home improvement specialists throughout the country. But
there are a select few who have the ability to appeal to a
mainstream television audience.

You see, the celebrity is not just the expert, but they are the
product as well. When people call in to get their homes on
television, it's not just because they have a huge renovation
project that needs to be taken care of. What they want is the
extra reassurance that what is being done is being done by the best.

When it comes to your business, this is something you want to
achieve. Not only will customers come to you because you can
solve their problems, but once you're perceived as the best,
they'll keep coming back and sending referrals your way.

** How to Take Control of Your Credit Cards
By Michael Newman, Self-made Millionaire

Wouldn't it be great to stumble upon a genie?s lamp one day,
with the ability to grant you whatever wishes you desired at the
blink of an eye? I know what I would ask for, do you?

Of course, some people pretend like they carry a little genie
around in their pocket all the time. There are a number of
names for that genie, usually sounding something like Visa,
MasterCard, American Express or Capital One.

Credit cards are great because they provide convenience and
rewards programs for shopping. On the other hand, however,
they can be our worst enemy.

And exactly how can they become our worst enemy? Through
the instant gratification they provide. If you are in a shop and
see something you want, it's easy to pull out the plastic to pay
for it right then and there. Of course that sounds good at first,
but once it starts happening over and over again, you'll be in
big trouble before you know it, racking up debts and making
silly, impulsive purchases you don't need and will regret later on.

Getting away from the convenience of using a credit card can
be done, but it's not necessarily easy. Here are some of the
ways I've curbed my credit card usage to keep my bills at a
manageable level.

First off, I started carrying cash. By carrying cash, I was able to
look into my wallet and determine whether a purchase was
worthwhile. After all, if I needed $60 for groceries, I surely
wouldn't spend it on DVDs. It's also a nice feeling to see
money in your wallet, so you're more inclined to try to keep it
there. Not to mention the feeling of seeing it diminish makes
you think twice before spending it frivolously.

Next, I started to control the expenses I put on my credit card.
Doing this severely limits usage, so that you're not hit with a
big surprise when the bill comes in. I use my credit card for gas
in the winter (mainly because I'd rather quickly pay at the
pump than trudge through the snow and slush to pay inside),
and for car repairs or things like dental appointments. Basically
 (other than the gas), I use it for large, necessary expenses.

Finally, using cash instead of credit makes you feel good. By
using cash, each "extra" purchase becomes more rewarding
because you know you've worked and saved for it, which
instantly increases the value of your purchase.

If you've been having trouble controlling your credit card, try
using these tips to get yourself back on track.