Eliminating Sales Quotas May Stimulate Profits

The Stanford Graduate School of Business recently reported on a study conducted about the effectiveness of using sales quotas to motivate and reward salespeople. Based on an experiment at one Fortune 500 company, the researchers concluded that removing the sales quotas resulted in a 9% increase in overall revenues. 
http://gsb.stanford.edu/news/research/Nair_sales.html

Jim McIngvale is the founder of Gallery Furniture store in Houston, Texas. Many years ago, he called on W. Edwards Deming to help him improve his business. McIngvale often tells the story about Deming telling him to change his salespeople from commission-based pay to salary. After failing to convince Deming that it wouldn't work in the retail industry, he gave in and changed his pay practices and put his salespeople on salary. In The New Economics, Deming wrote about the results of the change. " . . . steady increase in sales. Older salesmen now help beginners. Salesmen no longer try to steal business from other salesmen. they now help each other . . . sales go up month by month. Moreover, profit per square foot of floor space advances even faster." McIngvale agrees.

Like so many elements in business, it goes back to effective leadership and hiring practices.

My question is What motivations are you offering your people by your rewards? Too many companies do not reward initative or superior success. Do you?
Steve

The 10 Questions You Should Never Stop Asking

Turnaround Tactics

 Really good article for anyone managing, developing strategy or entrepreneurs.
Steve

http://www.forbes.com/2009/11/20/ten-key-questions-entrepreneurs-management-kramer.html?partner=popstories

Political Uncertainty Puts Freeze on Small Businesses

Very Good Wall Street Journal Article about why small businesses are not hiring or may be laying off. Think this is a common reason businesses are not taking advantage of the economy to expand market share. The uncertainty of the new health care costs, increasing taxes in 2010 when the Bush tax cuts expire, and political new taxes like Cap and Trade are causing businesses to hold on to cash. The recovery may be slow in the current situation until some direction is clearly coming from Washington.
http://online.wsj.com/article/SB125659324579108943.html
The leaders who can see a way to expand their businesses will be rewarded when the recession ends. How can you affordability grow your business market share now? Your customers will thank you.
Steve Amos

Microsoft Marketing and Advertising

John Dvorak has a very good article commenting on Microsoft’s advertising. (See link below) His main point is Microsoft is only advertising for lowest price versus Apple. Microsoft doesn’t sell laptops, they sell software. This is a recipe for disaster. Low price means low margins. It also means low respect and lower profits.

I much preferred the ads with the kids and adults showcasing their talents on a PC. “I am a PC” was that slogan. It at least showed why you want a PC.

Not sure the advertising was working. Apple makes superior hardware with software that is convenient to use. Look at how easy it is to integrate your iPhone and iPod with your Mac. All these affordable apps make owning and synchronizing multiple machines easy so your time is productively spent.

Now Microsoft is no slouch in software. Apple is now able to make us of multi-core chips. Microsoft developed this capability with multi-core chips three years ago (more or less). Second the biggest U.S. gains in productivity came when businesses starting using Microsoft Windows machines with Office. How many businesses have not used this combination? Microsoft is still superior for large corporations. Their server and pc software is productive to manage for IT. They improve and service their customers well. Updates are ready regularly to keep your computer safe and sound.

Microsoft is not the greatest innovator for software. Others often came up with ideas how to use computors. Microsoft is the integrator of software supreme. Buy what you need, and Microsoft will take care of you. Really when you look at their marketing for many years they were leaps ahead of any competitors. Who else would a business work with?

When Microsoft focuses on business benefits and advantages for small pc owners and business they market successfully. What advantages? How about more programs for any purpose available. Why does Apple offer programs to mimic Windows? Because you can’t get everything for a Mac. My business card scanner is one application that won’t transfer to a Mac. In fact even though Apple offers compatible programs to Office, most small business owners will buy Office for the Mac just to make sure.

Let’s get back to your business. How are you Marketing and Advertising Your Business? Are you showcasing your advantages and benefits for your customers? Let’s focus on benefits. It is not you offer a product or service, it is how the customer benefits from buying your product or using your service. This is what you have to do for your marketing to succeed.

Also check out John Dvorak’s good article. Very good read.
Steve

Apple vs. marketing on 'best price'
http://www.marketwatch.com/story/apple-vs-marketing-on-best-price

Some businesses think big during the downturn

A great article about the companies that will succeed during and after the recession.

http://www.latimes.com/news/la-fi-expand13-2009jan13,0,4036581.story?track=ntothtml

We all need to think like this,
Steve Amos

September 11th and Everyday

We remember those who died in the attacks on New York and Washington. They were victims of attacks on the United States by evil people who wish to destroy us. Al Qaeda started World War III by attacking any western nation they can.

The World Trade Center was targeted (twice by the way) because they thought if you destroy a Wall Street finance center, you will destroy or damage the American Economy. America would be too weak to respond.

The Pentagon was also targeted because it is the headquarters of US military, and they wanted to slow our response. They feared the military, but think of us as a weak enemy. Based on our response to military losses in Somalia, they think we would quit after the loss of a few soldiers. Take out our headquarters, and no one would stop them.

The reality is the leaders of Al Qaeda are older, educated and dedicated to destroying anyone in the way of their vision of an Islam led world. Al Qaeda is targeting Christians, Catholics, Jews, Hindus, Buddhist and other Muslims who do not believe their distorted interpretation of the Korean. They kill randomly with bombings, mass attacks, and wipe out innocent families for their convenience and security. Parts of Iraq has woken up due to the number of Iraqi’s who have been victims of Al Qaeda murders, and areas of Iraq are coming to us for help ridding themselves of this evil.

Remember 9/11. Remember Pearl Harbor. Remember the Maine. Remember the Alamo. One if by Land, and Two if by Sea. History has taught us winning wars takes persistence, sacrifice and dedication. We have been in Bosnia over 15 years to insure peace. In Korea 54 years. In Germany and Japan for over 60 years. Al Qaeda wants to take over every country possible. The world needs to step up and help contain this enemy of religious freedom with us.

The best strategy for this ongoing World War is to enlarge our military now, to prepare for the long battles remaining, and to remain determined to win over evil. That is how we will succeed remaining free.