How to Sell Anything to Anybody Ch 11

Hunting with Birddogs

• Building a Prospect List: The author meticulously builds their own prospect list, not relying on mail-order lists. This is a gradual process, enabling them to afford the mailing costs for each contact. Mailings help bring prospects back, creating a self-sustaining system.

• Birddogs as an Investment: Birddogs are people who refer customers. The payment of $50 per referral is not an upfront investment but a cost of sales. The author calculates that from their tax bracket perspective, the payment is actually a 50% cost savings because it's a reduction in the previously payable income tax.

• Strict Payment Policy: The author prioritizes prompt and fair payment to birddogs. Failure to pay, or delaying payment, is considered dishonest.

• Customer Loyalty as Birddog Recruitment: Satisfied customers are valuable birddogs. The author targets influential individuals like shop stewards or union presidents for preferential treatment and strong commitment to their cause, as these people are highly likely to send more referrals

• Non-Cash Rewards: The author understands potential legal issues with cash payments. They offer alternative incentives for birddogs who don't wish to accept cash, such as dinner invitations or free car services.

• Establishing Relationship Value: A critical aspect of birddog effectiveness is to make the deal attractive for the birddog--this is crucial for building consistent, long-term relationships with people who can generate future business.

• Value Proposition for Birddogs: The author prioritizes the value of the $50 reward to prospects, making the referral incentives highly attractive.

• Importance of Persistence: The author emphasizes patience; building a consistent birddog system requires time and nurturing relationships.

• Customer Value Proposition: Birddogs add value both to the customers referred and to the birddog, giving both a positive reward for their services leading to further referrals.

Utilizing Diverse Referral Sources

• Targeting Various Professionals: The author seeks out professionals in various fields – from barbers and doctors to hospital staff, bank loan officers and mechanics – to act as birddogs. Identifying potential contacts leads to consistent business.

• Barbers as Birddogs: The author uses a simple easel sign (“ASK ME ABOUT THE BEST CAR DEAL IN TOWN”) to recruit barbers as birddogs, enabling a wider referral network.

• Leveraging Existing Customer Networks: Utilizing existing customers to extend the referral network is seen as an important element, with a focus on leaders.

• Partnerships with service providers: The author interacts with various service providers (garage, towing, car repair) to identify potential customers looking for new replacement vehicles.

Strategic Negotiation and Deals

• Strategic Pricing to Beat Competitors: The author frequently negotiates deals below the prices offered by competitors.

• Loss Leader Strategy: Recognizing the importance of business longevity, the author understands that there might be instances where certain sales and deals may need to be offered below the normal profit line. This is seen as a valuable investment, even if it incurs a small initial loss, because it helps to boost the overall volume of sales and build reputation amongst the target demographic.

• Focus on Customer Value: The key focus has been on delivering value even when a sale goes below the normal profit margin, since a satisfied customer is important for long-term success.

• The Value of a Satisfied Customer: Delivering a potentially high value, even below a normal profit margin, strengthens customer satisfaction, driving consistent business and repeat sales. Satisfied customers translate directly into loyal customers which leads to higher referral rates and business growth.

• Utilizing phone calls: Employing proactive phone calls to prospect clients and working out viable deals based on their needs, is an effective strategy to increase the rate of conversions, referrals and sales.

Strategies for Building Birddog Networks

• Continuing Engagement: Keeping in touch with birddogs via regular communication, cards, and ongoing incentives remains crucial.

• Developing Habits and Relationships: Recognizing that different people take different amounts of time to develop habits within their existing relationships, implies that the key is finding the appropriate method to help each birddog, strengthening their commitment over time.

• Adaptability and Continuous Improvement: The author remains proactive in seeking new opportunites and sources whenever possible. This demonstrates the necessity of ongoing engagement, adaptation and expansion.

• Avoiding Aggressive Tactics: Using appropriate strategies, as opposed to underhanded tactics, is key to ensuring long term relationships, as negative press from unethical deals can lead to substantial reputational damage.