The Wealth Weaver

Will you add 000’s to your income in 2012?

January 25, 2012
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Bob is a successful handyman who is always on time and cleans up after the job. He provides a valuable service to the community and his style is greatly appreciated by his customers.

In order to increase sales and income he needed to create a sales team. Bob has tried to do this in the past with haphazard results, some growth, more drama and ultimately the breakdown of the sales team and a return to doing everything himself.

What is different about his plan for growth this time is he hired me. We outlined a plan where I would act as the Overseer Of Operations. We started with an introductory team meeting where Bob explained the services he provides and how he would like his team to talk about his business. He had invited 3 candidates, all of whom he saw some spark of interest and a need to earn some money. Two candidates elimated themselves very early in the game. They never showed up to the team meetings. The remaining candidate was enthused and committed to the task.

Bob’s new sales person Shirley was given a script and the task to call his client list. She would introduce herself and let them know she was now a team member who could assist them when they needed services from Bob. Bob was asking Shirley to make a Service Call. This is a call that only checks in with the client and lets them know you and your business are here and ready to assist them with your needs. This is NOT a sales call.

What happened in the following weeks was enlightening. Shirley spent many hours talking to Bob’s relatives. The list he had provided was a mixture of personal and professional contacts. Bob gave Shirley a corrected list and she was back to the phones. He also gave her information about a new service he would be offering next year and asked Shirley to follow-up with a prospect. This was done via an email message to Shirley, not through the agreed upon structure of a team meeting.

Without the benefit of discussing the additional instructions, Shirley went to the phones doing what she thought Bob wanted. This resulted in a big mess. Shirley spent a significant amount of time on the phone, but off the task of connecting. Now she was attempting to sell a new product she did not fully understand to people who did not know her. Bob was frustrated and angry at the next team meeting. He was not getting what he wanted. Bob felt he should not have to explain what he wanted. Shirley was mad at Bob because she felt she had done the best she could with the information that he gave her. Ultimately Shirley quit the team.

There is no substitute for having a clear game plan, giving clear instructions and letting the Overseer oversee everything, even an email. Before you even think about hiring staff you must know what you want them to do and how you want them to do it. You must be willing to have your procedures reviewed by someone who can catch the inconsistencies. You must also be willing to sit through rehearsal before you put them on the phones an in front of your clients. This is especially important when you move from doing everything yourself to hiring others to assist you.

Bob knew who his clients were and which clients were family. He knew what his new service was and where he was in the deal with his new prospect. Shirley did not have enough information and was not yet someone his clients could trust. You truly do only have one chance to make a good first impression and the preparation for that is key. I believe this is the number one step to adding 000’s to your income: preparing for your first impression.

If you have a script, presentation, lecture or webinar you would like to rehearse, and receive honest feedback – not criticism – about your impression please contact me. I can help you make sure your first impression will add 000′s to your bottom line instead of subtracting them.

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The Price of Experience

January 18, 2012
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“If we could get paid what our experiences cost us, we would all be millionaires.”

Abigail Van Buren

I could not agree more. In the past year my experiences have been quite costly, emotionally and financially. This quotation gave me hope. Maybe these challenges do have a silver lining. Turning lemons into lemonade is definitely a skill worth practicing because life will definitely drop some lemons in your lap. My lemons have added a new depth of sincerity to my compassion and understanding.

I have experienced disruptive, stressful and out of control life events. I can relate to a greater number of people. I know how challenging it is to have your career suddenly skid to a halt, a family member’s health decline, have your personal habits block your growth, and have others overtly and covertly derail your everyday efforts and keep you from working. Obstacles are real.

Trusting that these “negative” experiences had value, I was curious to learn how to convert them into “lemonade”. I paid better attention to people when they introduced themselves. I read the preface and about the author sections of books more carefully. I looked more closely at advertising and marketing campaigns. I listened more deeply and asked more questions.

I am stronger today and more focused. I am more certain that I can help you. Turning lemons to lemonade requires sugar, and that sugar is love and compassion for yourself. Lemons happen, what you add to them makes the lemonade.

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What Does See’s Candy Have that You Don’t?

January 11, 2012
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What does See’s Candy have that you don’t? A line of customers out the door and around the corner. My new office is located next door to a See’s Candy store www.seescandy.com. I moved to my new location in October, and everyday I wondered how they were still in business. Their parking lot was always empty. I rarely saw a customer leave, and then only with a small bag. This December I learned See’s Candy is still a vibrant and thriving business. A highly seasonal operation, some 50% of its revenue is generated in November and December. Read more: http://www.answers.com/topic/see-s-candies-inc#ixzz1hNJmu8NS.

Somewhere back in their history they created a tradition: See’s Candy the perfect gift for Christmas. I was not able to track down how this marketing plan was implemented, and I am still curious. Everyday of December their parking lot has been full and overflowing into neighboring lots. This is the scene from early morning to late evening. People are walking out with large white and black See’s Candy bags.

This particular store is just one block away from the See’s location in the mall, so I paid a visit to the mall store. Same story: a steady stream of customers, and everyone left with a large white and black bag. This tradition has obviously made it into the culture with great success.

I have included my research into this successful business below. Read their history and their stats. Tell me what you see. Why did Warren Buffett buy them? What factors could you adopt in your business to create the See’s Candy phenomena? Do you have a seasonal product that could become 50% of your revenue generator? Can you design one?

My independent postal and shipping provider Lynn of Beach N Boxes (www.beachnboxes.com) says the boxes are thick and easy to mail, which makes their product a big favorite for those who send presents through delivery services. See’s has thought through the purchasers concerns and addressed them beautifully. What concerns might your customers have that you can answer to improve your sales?

By the way, don’t buy me See’s for Christmas. I am a sugar free person and part of the growing new market of foodies who must have organic, healthy and fresh nutrition. Their response to a changing market is to now offer Sugar Free chocolates. They thought beyond their regular customer base and provided a product to reach out to more prospects. Who do you cater to? Who could you add a product or service for?

See’s Candy History
Throughout the history of See’s Candies, Mary See has symbolized the old-fashioned virtues of homemade quality and friendly service. The spectacled, silver haired woman still smiles with pride from candy boxes shipped throughout the world, and her original recipes are savored by millions to this day.

When Charles See arrived in Los Angeles from Canada in 1921 to try his hand at the confection business, he decided that no image would better reflect the personality of his fledgling venture than that of his mother. Apart from using her recipes as a foundation, See knew that keeping things in the family was the only way to bring about the kind of lovingly crafted product he desired.

See along with his mother and his wife, Florence, opened the first See’s Candies shop and kitchen on Western Avenue in Los Angeles in November of 1921. The sparkling clean, black and white shop was designed to resemble Mary See’s home kitchen.

Benefiting from the wide acceptance of an unusually high quality candy, See’s was able to grow steadily from that first shop in Los Angeles to twelve shops by the mid-1920′s and thirty shops during the depression. By 1936, See’s was able to expand to San Francisco.

Mary See died in 1939 at the age of 85, but the company’s ability to adjust to changing times – without abandoning the passion for quality and service that Mary See represented – kept it going strong throughout the decades to come.

Following World War II, See’s Candy Shops grew as California grew, and the See’s family continued the tradition, opening up shops throughout the state. In the 50′s, See’s established itself with the new and growing phenomenon of shopping malls. See’s customers continued to recognize the See’s Candies product for its quality and taste, and continued to visit See’s old-fashioned black and white shops, enjoying a visit to a time past where service was paramount.

In 1972, the See’s family sold the company to Berkshire Hathaway Inc., presided over by Chairman Warren Buffett and Vice Chairman Charles Munger. Utilizing his philosophy of acquiring solid companies where he could follow his “hands off” policy, Warren Buffett installed Charles N. Huggins as President and CEO. Charles Huggins dedicated himself to the continuance of the company he joined in 1951, guiding it with the old-fashioned values set by Charles See until his retirement at the end of 2005.

He is succeeded by current See’s President and CEO, Brad Kinstler, a longtime Berkshire Hathaway team member.
Today, “California’s Famous Old Time Candies®” are sold in over two hundred shops throughout the West, a true sign of their enduring popularity. And, to this day, Charles See’s living motto, “Quality Without Compromise®” continues to guide the company.

Analysis of See’s Candies
If I understand correctly, we’re looking to analyse great businesses in this forum. I believe Warren Buffett has called See’s Candies a great business many times so it seems a good place to start. Below is my analysis of See’s plus some unanswered questions. Please add, amend, correct etc!

Quantitative
————
**1972**
Purchase Price – $25m (16% off the asking price of $30m)
Sales – $30m on 16 million 1bs of candy = to $1.88 / lb of candy
Pre-tax Profits – $4.5m (56% on invested capital)
Post-tax Profits – $2.25m? (estimate) growing 12% a year
Invested Capital – $8m
**2006**
Sales – $383m on 33 million 1bs of candy = to $11.61 / lb of candy
Pre-tax Profits – $82m
Post-tax Profits – £60m? (estimate)
Invested Capital – $40m
**2006 at 1972 prices**
Sales – $80m on 33 million 1bs of candy = to $2.42 / lb of candy
Pre-tax Profits – $17m
Post-tax Profits – £8.4m? (estimate)
So Berkshire invested $32m since 1972 (approx $1m / year) whilst pre-tax earnings over the period total $1.35bn. Total investment $57m. ROI = >2300% over 34 years
Please see a public google spreadsheet posted as a web page for the above here:

http://spreadsheets.google.com/pub?key=t248xiVFFLXMMjEj3fwS91Q&output=html

Qualitative
———–
> The product tasted great – used the highest quality ingredients
> The personality of the product -> nostalgia, share of mind, reputation for innovation, history (the inspiration for Charlie & the Chocolate Factory?)
> Reasonable price (too reasonable) – untapped pricing power. WEB believed another $0.15 was possible. This would increase profits by $2.4m.
> Total control of distribution
> Exceptional service
> Market leader
> Minimal funds needed to operate – cash eliminated accounts receivable & production & distribution cycles are short minimising inventories
> Virtually all of the post-tax profits are free cash
> Tough to grow volume

All these factors lead to an extremely wide moat. The loyalty of the customers can be seen by the 2 years they spent defending See’s when it was purchased by Blue Chip Stamps.

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What ‘Lemons to Lemonade’ Strategy is Making you Money?

January 4, 2012
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Making lemonade from lemons is a great way to take a sour circumstance and make it sweet. While everyone is complaining about this economy some people have been making lemonade – and money.

When you can let yourself feel the pinch and just be with it – rather than resist the reality of a circumstance – you will receive the gift of great new strategy. I did.

I had spent approximately $250 on a direct mail campaign 3 months in a row. I did get one new client, and her purchases paid for approximately one-third of that marketing plan. Month four was on the horizon and I was reluctant to pay another $250 without any guarantee of a return. A plan emerged.

I went through the phone book and called the people on my list. What a surprise! About 20% of the numbers were no longer in service. Another 20% of the people I spoke with were happy with their current providers and had no intention of changing. 40% of my list had no corresponding phone number in the directory. The remaining 20% were interested, delighted I had called them and wanted to attend my next event.

I opened my call by introducing myself and stating that I had invited them for the past three months to attend my free classes. I asked if they had received the invites. 100% of my leads did not recall receiving any of the invites I sent. I had spent extra money and time to pick out fancy papers and designer stamps and still they didn’t notice my direct mail campaign.

My lemonade campaign which cost only $35 for the direct mail labels netted a 20% return when I just called them. I will definitely continue to open the FREE phone book and make calls as my new regular marketing campaign.

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When Selling, What do you Fear Most?

December 28, 2011
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My biggest fear is selling to men. Despite our tremendous progress steps towards equality of the sexes when a man and woman engage in any kind of interaction the obvious most basic differences can alter our perceptions. Ancient, unconscious scripts may begin driving the exchange despite your best education and understanding.

I was closing the deal on a big ticket item with a male customer and everything was going great. We were in my professional space, due diligence had been done to discover what he truly needs and what he wants, and I had a game plan to get him there with a price tag of $2,700.

With every page of the presentation he was on board, in agreement and ready to take the next step. We got to the money, I was nervous and – thankfully – alert. Then out of left field he asked me a question that would require my personal opinion, not my professional expertise.

Alarms went off in my head! Here was an opportunity to blow the whole deal. I quickly assessed that his question was going in the personal direction, off course, and into a lost sale. Using humor I diffused the bomb on my table. I quickly redirected the conversation back to his needs and wants. This is a very unconscious tactic often employed by the male in a business deal. It is merely a test to see how committed to the business channel you are. If you can be sidetracked how reliable are you?

Whew! I closed the deal and banked $2,700 by keeping all of my attention on the business channel.

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Does your Social Media Marketing Beat These Stats?

December 21, 2011
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I bought a mailing list with 300 names that fit the criteria of my best customers. I spent $35 for the list and was very excited to put it to use. I crafted an offer, and selected beautiful papers with matching envelopes. Calligraphy fonts were used for addresses, and I purchased unusual stamps in an attempt to say my presentation holds something unique. I mailed it out. One person responded. I recouped my investment.

Month number two. Another offer sailed out to my list with NO response.

Month number three yielded the same results: nothing. At approximately $200 per mailing I was reluctant to try again.

I reflected back on my Millionaire training with www.sageuniversity.com and could hear my coach urging me to pick up the phone. I did.

Politely I introduced myself to the women on my list. I stated the facts, “I have sent you a couple of invitations to FREE events and was wondering if you had received them?” 100% of the woman had no recollection of receiving the invites. Wow, was I shocked!

I then asked these women if they would like to be invited. The results; 75% said YES, they were interested in my offers. All the expensive papers and extra efforts were no match for the personal touch of a real person on the phone.

I am sooooooooooooooo glad my budget prohibited me from just sending out another wave of letters that would only see the insides of the trash bin. The phone is my best friend and helping me make new friends everyday. Once I run out of names from my list I am heading for the phone book.

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Wholly Endorsed by Me and Hopefully Millions of Others!

December 14, 2011
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Today I received an email encouraging the initiation of a new tradition for the coming Christmas season. Buying gift certificates from local SERVICE merchants. A local car wash, a massage, a computer tune-up instead of purchasing products that are MADE IN CHINA.

I wholly endorse this recommendation. However, I endorse it for a different economic reason. My enthusiasm moves towards the likes of www.smallbusinesssaturday.com.

My mother lives in an assisted living facility so she can remain as independent as possible with her dementia. She called me this morning – yes, that is rare – and she was over-the-top happy. She had gotten a hair cut and her mood and outlook on life were on a high I have not seen for years.

It is not just about the hair. What was obvious to me was the human connection had picked up her spirits. Beverly D of www.beverlyd.com, and creator of Beverly D Luxe Organic Hair Nutrition, agrees. As the hair designer she knows that there is more than a haircut that happens in that service transaction. “I am the coach, the ear that listens, the friend, and the hairdresser. It is the connection that makes people feel better about themselves and their lives. Hair is the excuse that brings us together.”

I don’t know any people in China and I am sure that if I got to know them personally I would enjoy them. I do know a lot of Americans who are suffering and I DO NOT BELIEVE their suffering is economic. I believe THE LACK OF CONNECTION has a financial impact.

Our economic recovery will fail if we make it just about the money. Let’s reach for the bigger picture. We need to rebuild our infra-structure, the person-to-person connections that begin in our own backyard. How can we stand for any United vision if we don’t even know the merchant/person across the street?

We have become socially lazy. We text instead of talk, we raise our voices in protest rather than raise a “barn” with our neighbor. We live lives of desperate isolation where the TV and internet are our virtual realities, rather than enter the virtuous circle of United We Stand and Serve each other.

What is your economic recovery plan for this Christmas?

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Has Bill Clinton Attended Sage University?

December 7, 2011
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Has Bill Clinton attended Sage University?

This was my first thought as I read this CNN article, money.cnn.com/2011/11/08/news/economy/bill_clinton

The article outlines former President Clinton’s play – no typo there – to U. S. economic recovery. The theme of his proposed changes? Clinton writes “We need to get our game face on.”

Upon reading this, my thoughts immediately raced to the immense relief I experienced during one of my darkest economic periods. June 2008 was the first time in 23 years of business that I had exhausted my savings to keep the doors open, and my income was still in negative numbers. My spirit was broken along with my bank accounts. How was I to recover?

In a stroke of luck, an acquaintance came to town and reminded me of a resource. I enrolled in www.sageuniversity.com and began studying business as a GAME!!!!

Since then everything has changed. I am back in the game of business, making more money than I ever have, having more fun, and even coaching others to join the “game”. I am all in with Clinton’s plan, and it is already working for me.

We need to put our game faces on. Everywhere I go I hear the same whiny stories about how there is no money and earning a living is hard while billions of dollars are circulating and growing every second of every day. What do athletes do when they are losing the game, the clock is winding down, and the odds are stacked against them?

First they engage thier very strong belief that anything is possible even with just seconds on the scoreboard. Next they stop the whining, complaining and blaming, and just get in the game and do their best. Team spirit is vital because if everyone else on your team has lost their spirit to prevail the odds against you are greater.

Maybe we don’t need another politician in office. Maybe it is time for a cheerleader, someone who can rally the enthusiasm and entrepreneurship that built this “team”. Maybe if we stopped having “parties” and developed teams something new would emerge. A new spirit that would engage the fans and raise the bar for what it means to be an American, a great nation that stands for liberty, justice, team spirit and devotion to the pursuit of our dreams.

Who do you think should be the next President of America?

A politician, an actor, a coach, or a cheerleader?

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And….. We’re Back!

November 15, 2011
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Yes, we are back after surrendering to what appears to happen often on the internet… a leave of absence. Our mission was not forgotten and many, many steps were taken. The depth of my understanding of what it takes to grow millionaires has increased in many areas and I am excited to share my real time experiences and help you weave a larger wealth catcher. Are you ready?

I want to invite you re-join me in my journey towards making millionaires with the new Wealth Weaver program. The first subscription tier is free, and will give you a chance to re-connect and see if my program is still of service to you. Check out what you get with each of the subscription packages:

Tier 1: Weekly Wealth Weaver journal notes. No Cost!

Tier 2: Weekly Wealth Weaver journal notes, and I will answer your questions about blog posts and your business questions. You can also request topics for my blog posts! $5.99 per month

Tier 3: Weekly Wealth Weaver journal notes, and I will answer your business questions, blog post questions, and topic requests. You also get one personal OOO (Overseer of Operations) session per month! $19.99 per month

I’m also offering a 10% discount if you are a quarterly subscriber, and a 20% discount for annual subscribers. I genuinely hope to see you along the way as I continue on my journey towards growing millionaires.

First Month Topics:

- Where is Your Wealth?

- Observations from an OOO

- Fabulous Volunteers

3 Questions to Keep you on Track to Wealth

- Did I incur any new debt today?

- Did I accept / negotiate / offer services / products for under value?

- Did I stop the flow of money towards me?

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06/03 – Finding Your Joy

June 12, 2010
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Are you aware of the conceptual versus actual in your business development and in life?

Please click on the links to the right if you would like to become a member of The Wealth Weaver.

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