Are You Commoditizing Your Products?

We were at a client's office recently meeting with their senior executives. One of them was talking about how their existing offering was a commodity. I remarked that if toilet paper isn't a commodity (it isn't), then their offering certainly wasn't one either. It has extremely high value to their users and their method of delivery and support added value as well. He agreed and has quite quickly dropped the use of the term.

There is a lesson in that discussion for all of us. The term "commodity" is something used by purchasing agents and procurement professionals to undermine a seller's pricing power. Their agenda is to short-circuit any discussions about the value of your products and services. It is an act that is intentionally designed to make you think that your products and services have no value.

The problem is that salespeople hear the term commodity so much that they start believing it. Then the customer service people believe it and eventually the senior executives believe it. When everyone believes that your products and services are commodities, you have no pricing power.

How about you? Do you use the term "commodity" freely in your discussions with your people? If you do, you're undermining your pricing power.

Here's a bit of advice: STOP USING THE WORD COMMODITY!!!!

People use your products and services because they value them. They don't think they are commodities, because they have chosen to use them. That is a fundamental fact of doing business. Just because a buyer who has an agenda to get a lower price uses a term like commodity doesn't mean they are right. In fact, we find that in most cases, they are wrong.

If you need to, go out and talk to your real users and find out what they like about your company. Find out how they value the things you do. They'll tell you. They will be glad you asked. Then, go back and insist other executives stop using the word, too. When anyone-ANYONE-uses the word commodity, stop and tell them that a) your products and services create high value for your customers and b) using the word commodity to describe them undermines perceptions of value with your salespeople and your customers.

In the book Pricing with Confidence, we use the example of how the executives from a dirt company realized that they weren't selling a commodity. We use that example because if dirt isn't a commodity, then virtually nothing is. We use that example because too often we hear the term commodity from high-value technology, software, medical equipment, and financial services executives. The sad part is they honestly believe that commodity really does describe their products and services.

So start being a value leader in your firm. Stop using the term commodity. When other people use it, tell them why they are wrong. If that doesn't work, go to the local pet store and get one of those shock collars and start making some of the senior executives wear them-that will work.

Rebel Rousing Retirement Reaction

One of Esparza Speakers newest speakers is Mary Lloyd. Mary's passion is working with individuals to help them plan and prepare for a meaningful and fulfilling retirement-and working with business owners who feel the expertise drain and labor shortage that retiring Baby Boomers generate. The following is her first post for the ES blog, as well as two upcoming interviews that you are encouraged to check out.

I just read in today's news that by 2050, 1 of every 6 people in the WORLD will be 65 or older, "leaving the US and other nations struggling to support the elderly." It's time to stop this nonsense and get real about "the aging crisis."

The vast majority of "elders" could do a helluva lot more for themselves-and would willingly-if we weren't painted as inept, wornout and unable by society. The notion that anyone over 40 is less capable  of doing "the work" started in the 1820's when "the work" was mostly farming and heavy manufacturing and things like tractors didn't exist. Now we sit at desks and use telephones and computers to get the work done. You can be 99 and get it done just fine.

But ask anyone who's over 60 and looking for a job, and they'll give you more than you ever want to know about how easy it is in this country-and most others-to not hire someone because of age.

Of course it's not called that, because ageism is illegal. It comes out as "overqualified" or "want fresh creative ideas" or some other blather.

We need to face one strong hard fact: The best way to avoid the horrendous cash outlay for people as they age is for every country, but particularly the US, to begin to acknowledge what older workers are still quite capable of doing and to give them a fair chance to do it. The amount of talent, skill and knowledge we waste in the name of an outmoded version of retirement is obscene.  The lack of engagement and mental challenge breeds illness and decline.  And the need for a better approach is urgent.

Everyone wins if companies and communities find ways to harness senior talent by giving workers old enough to retire creative programs in which they can continue to contribute for a good long time.

Mary has two upcoming interviews with Bob Barnes. If you can catch any of these stations, listen to Mary and Bob. It's good stuff.

KTXB-FM 89.7 Beaumont, TX  - Saturday, July 25 at 6:45a, 12:15p and 5:15p

WFTI-FM 91.7 St. Petersburg, FL  - Saturday, July 25 at 7:45a, 1:15p and 6:15p

Engaging the Audience

Great speakers always connect with their audience.

The fact is that regardless of how timely and vital a message may be, if speakers don't "hook" those listening to them, the messages will likely be lost and the programs miss their objective.

Two gifted, flexible, and dynamic speakers who know how to effectively connect with their listeners are willing to share their expertise and insights with others. Cyndi Maxey and Kevin O'Connor collaborated on their first book, Present Like a Pro: A field guide to mastering the art of business, professional, and public speaking in 2006. Given the success of this book, it was not a surprise that they were asked to collaborate on a second book-this time targeted to today's professional women. Speak Up! A Woman's Guide to Presenting Like a Pro hit bookshelves last year. In this practical handbook, Cyndi and Kevin called about their extensive experience to provide very practical and easy-to-apply advice to anyone who needs to speak in front of others for virtually any professional or business reason.

Every client has a list of requirements when they start a speaker search. But regardless of the topic to be covered, the nature of the event, or who the audience is, clients consistently state the need to have speakers who get to know their audience . . . who can relate to those who will attend the event in question . . . who will engage and interact, and not just lecture. Kevin and Cyndi have addressed this issue with those they mentor, and the following Q&A is memorialized in their most recent book.

Q: I notice sometimes that members of the audience are not very engaged in what I'm saying. They are just staring at me, and sometimes not even laughing when others are. It is very distracting for me. Any ideas for how I can stop being so distracted?

A: Don't look at them. Look first to those who are engaged with you, and then ramp it up a bit. Walk over to the section in the audience that seems less interested, smile a bit more, raise your volume, and move them into group of two or three briefly to discuss a question to change up the format of the talk a bit. These nonengaged folks may be tired, worried, and distracted. It is up to you to get them back on track.

Simple, direct advice from two professionals who practice what they teach. I highly recommend their readable and easy-to-apply books. Better yet, if you're interested in having either of these great speakers at your next event, contact us-check out their program titles on their individual pages, or call us with a program idea for Kevin or Cyndi.