Is a business better off giving their employees an incentive to increase sales? Should that incentive be a financial one.

For many years now I’ve been a big supporter of incentivizing employees to motivate them to produce above average results.

A recent trip to two electronic stores got me thinking about this topic.

Store 1 has its salespeople on commission.
Store 2, doesn’t.

What I found was that Store 1’s salespeople were much more knowledgeable on the products they carried.

Where as Store 2’s employees, while having a general understanding of what they were selling, knew little when it came to the finer details.

You see, I’m the kind of customer that pays attention to those finer details. Not to cause trouble or give anyone a hard time, but for 2 reasons:
1. When I’m putting down a big chunk of money on the latest flatscreen LCD or Blu Ray player with surround sound system - I take the time to learn about the products and technologies … to make sure I’m getting something that best suits my needs.
And 2, I live and breathe sales, marketing and customer service, so you might say I have discerning eyes and ears.

But there is a twist to this story. While the salespeople at Store 1 had better product knowledge they came across like a bunch of pushy car salesmen. Their style was more aggressive, and though not overly so, the atmosphere felt more rushed … a bit uncomfortable if you will.

What these two companies need is to blend their approaches. To incentivize their workforce, give them a reason to learn more about the products … and then support them in understanding how to make customers feel comfortable.

Pushy sales don’t work for long-term success. Making your customers feel comfortable, as welcome guests that can confidently show up whenever they please and consistently be greeted with the information they need produces amazing results.

How does your business go about this?

Michael Zipursky

Lobster for everyone!! Come and get it … this time in a most unusual way.

Two brothers in Maine have created a new program where you can own your own lobster trap. Everything that is caught in that trap during a whole year’s season is yours. 

They guarantee you’ll get at least 48 delightful crustaceans weighing on average 1.5lbs each.

Plus, you also get clams, mussels, and other wonders from the Atlantic.

Don’t eat seafood? Hey, that’s okay. And I won’t even ask why. But there is a big marketing lesson here.

These two brothers have run with a classic strategy that works. They’ve take the structure and model of “own your own olive tree” or apple, or vineyard section, etc. These biz models are popping up all over the place.

People like to call something their own. It’s impressive, and if you like wine, apples, olive oil, or lobsters it’s a good deal.

They definitely charge you a premium here. In the case of the lobsters they charge $2,995 a year. 48 lobsters minimum at $15/lb (let’s say standard price), that’s $22.50 per lobster and $1080 for 48. But these guys give you so much more, a long list of goodies (see their website here).

When you ad it all up does it equal the $2,995 price tag. Probably not, but you’re getting a piece of “ownership” and this is what people love buying into. 

You see, these guys have recognized that they’re better off not just selling a product. They’re selling a whole experience and memories around that … and people are happy to pay good dollars in return.

Ask yourself, can this model be used in my business in anyway?

To your success,

Michael Zipursky