I just installed a great design of mine for a client. I don't normally share my drapery work on my coaching site, but it came out so fabulous I couldn't resist.

Successful Negotiating
The Business Value Message

In all the work you have done through the first 5 modules of “Creating your Strategic Vision”, you have devoted tremendous effort to demonstrating your Value Message. The challenge is how do you do this? It is done by asking the following questions:
1) What does your business bring to the marketplace beyond the basic industry core competencies?
2) What’s unique about your business?
3) How will you communicate this?

Before we get into addressing these questions, let’s try to understand why someone might buy from you. There are several key concepts of understanding the mind of your prospect.

For your prospect to agree to buy from you, she must go through what is called: The Pain of Change. This is a measurement of the prospects feelings and experiences associated with doing something such as decorating.

You need to relate this to the Consequences of Not Changing. This is the prospects losses they incur by not doing business with you. Perhaps it is the emotional letdown of not using your decorating skills.

When a prospect first becomes aware of your business, they believe that are doing fine without you. They also believe that if there are consequences for not doing business without you, this is acceptable. If this is true, then you do not have a prospect.

In order to begin the selling process, you must introduce the concept that there are indeed consequences associated with not doing business with your company. If there are no consequences, there is little chance of making a sale. To educate your potential prospect about the dire consequences of not doing business with you, you need to use questions to raise this awareness.

Before we get into asking these questions, let’s think about you ideal prospect. What would be the potential pain or risk if they were to do business with you? This is what was referred to before as The Pain of Change.

Here are some examples:
It’s too expensive!
I might make poor decisions.
I could end up with poor quality workmanship.
I am afraid to do custom work.
I am not convinced of your decorating ability.
I don’t trust you.

It is up to your Value Message to answer these concerns. Your prospect will work hard to convince you that you do not have a Value Message, so they can base their buying decision solely on price. If you can’t defend your Value Message then you run the risk of being judged as a commodity. It is urgent that you communicate your Value Message so you can separate your business from the competition.

There are certain core competencies that every competitor brings to the market. These competencies are things all competitors do, and are essential to be taken seriously in the marketplace.

However, if you choose to compete based upon only the core competencies that everyone else has, you insure that your business will be considered a commodity. If you only want to discuss things like product quality and price, you will be evaluated solely upon the investment required to buy what you are offering. Your uniqueness of what separates you from the competition will most likely be ignored.

The concept of the Value Message says that you must bring something unique to the market place so you can convince your prospects to go through The Pain of Change and buy from you.

Exercise:
List the 3 strengths or unique features of your business offering:

1) In House Workroom
2) Great Showroom
3) Talented Design Team

For each strength list a corresponding consequence the prospect experiences by not having as part if the offer.

1) In House Workroom-A lack of quality control and higher prices because of no middleman.
2) Great Showroom-No ability to view actual examples of work.
3) Talented Design Team-Not having treatments that you can show off.

For each consequence indicate how does it show up? Who ultimately gets the bill for not having it? Who feels the consequences the most?

1) A lack of quality control and higher prices because of no middleman, results in poorly done treatments that the consumer pays for and is stuck with.
2) No ability to view actual examples of work, results in not being able to picture your custom window treatment ahead of time, and ending up disappointed because of not meeting your expectations.
3) Not having treatments that you can show off, results in not meeting the emotional expectations of the client. This is what she values most. Remember, Decorating is Entertainment!

To review, let’s take one of the strengths and add the corresponding consequence and the result:
An In House Workroom addresses the problem of poor quality control and the issue of higher prices because of no middleman. The result of not having such a service could be poorly done treatments which the consumer ultimately pays for and is stuck with.







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The book is published! Order from the Website.

Free Report Marketing

Free Report Marketing (FRM) is a great way to position your business to your target market. FRM is simply offering a free report on typical problems your potential clients may have and providing effective solutions. As you will see there are many benefits to creating awareness about your company with this great marketing strategy.

When you offer a free report on your area of expertise, Interior Design, you begin a campaign with your target market that builds loyalty because you are educating rather then selling. You can actually convince the buyer that your product is the best because you understand their problem and your company is able to provide the best solution.

Traditional marketing, such as advertising is product orientated and therefore gets stuck in the price-sensitive category. FRM is solutions based and focuses on educating and not selling. You offer solutions to common decorating problems with your company being the answer.

With a FRM program you not only educate your prospects but you build your mailing list through the requests for the free reports. In exchange for you sending the reports out, you receive permission to remain in contact with the prospect via email or direct mail. You can build a list very quickly with a “bait” marketing program by using such vehicles as Google Pay-Per-Click, with your free report being the call to action.

Examples of a Google ad:

The Designer's Coach
Free Report on Referral Marketing,
Your Source for Business Growth
www.thedesignerscoach.com

Home Staging Free Report
Great for Designers and Decorators
Learn ways to network with Realtors
www.thedesignerscoach.com

You can also view an example on my website on how I capture names offering free reports. You can go to: http://thedesignerscoach.com/free_reports.html

Let’s return to the educational benefits of FRM. There are great reasons to offer this strategy: You build client loyalty by becoming a trusted advisor. Those that request educational reports from you will view you as the expert. Additionally, you actually “set the specs” for the standards in your solutions. You establish the guidelines and since you are writing the report, you provide the exact solution to the common problems they are experiencing.

Here are 7 reasons why a FRM program is so effective:
1) You begin the relationship on a positive note.
2) You acknowledge to the prospect a level of respect in wanting to help rather then sell.
3) When you educate, you project a better relationship.
4) Prospects will buy from companies that put their clients first.
5) You “set the specs” and this makes you the perfect solution.
6) You are recognized as the expert in the field
7) People love free stuff, it works!

Prospects have both immediate and future needs. When you reach out to your target market, only 10% will have an immediate need, while the other 90% will have a future need. Prospects are like submarines, they spend most of their time underwater, not in a buying mode. They surface when they are ready. Your goal is to keep them thinking about your company while they are beneath the surface.

You can keep your name in your prospects mind with a FRM program. People will accumulate helpful solutions to their problems for future reference. There is a big difference when you are informing and positioning rather then interrupting and prospecting.

It is important to remember, that we still need to sell. This is not a one-way relationship. We hope to make it evident that we have more to offer then just a free report. That is why you need to include a message at the end of each report that makes an offer to move the client along the path to hiring you. Maybe it’s an offer for a free home consultation and the up selling begins.

FRM is effective and it is a great way to build your business. Start using it today! By the way, if you need help in implementing this concept, feel free to contact me. I am here to help. neil@thedesignerscoach.com

Achieving Personal Mastery

In the 6 modules of The Designer's Coach, your goal is to create and evolve towards reaching your Strategic Vision. As you continuously strive to improve your business, there are several aspects to focus on.
In the first module The Leadership Coach your work is on your personal leadership competencies. It can also be called “Personal Mastery”. This is a lifelong commitment to learning and making behavioral adjustments in your own evolution. When you work on these challenging skills, you have the ability to achieve results that matter most to you. When you realize that no one else is responsible for your problems, only then can you create your own reality.
In the fifth module The Satisfaction Coach, you study the power of creating systems and systems thinking. This is an interesting web of interrelated actions than when skillfully woven into the life of your business, results in flawless client satisfaction. Creating a vision without systems is like planting a seed and not watering it. Implementation of systems requires discipline and commitment.
Throughout all the modules, but in particularly the 2nd module, The Team Coach, there is emphasis on creating meaningful relationships with members of your team. Be it the employees, vendors, suppliers, craftspeople or artisans, each are significant contributors in reaching your goals. This is done though effective communication techniques that require sharing the aspirations of your Strategic Vision.
The goal is to achieve more as a team then you can individually. If you can get others to join in with your vision of your future, you will add significant value to your company. Having a shared vision is an extremely powerful force. Until you can demonstrate to your clients that your employees and vendors are not merely a collection of businesses, but a trained team that executes your designs in only a way that you can offer, then you will be able to receive your just reward.
As you continue to work on your own Personal Mastery, you and your organization will thrive because you begin to see how your own behavior is the main contributor of your problems. Your achievement is a product of how you think, and no one else is to blame. Your success depends on what goes on in between your own two ears.

Prospecting vs. Positioning

Who finds who is very important!
Imagine these scenes. It could be any two situations where there's a buyer and a seller...
Scene 1: A prospect is planning a wedding; she needs to decorate her home. You get lucky and just happen to call her that same day. The prospect was on your 'list' and you were able to meet her the next day.
Scene 2: Same prospect. She is planning the same wedding and wants to decorate. She starts keeping an eye out for a decorator. She talks to a friend, reads an article in a magazine - and hears about you. She calls you on the phone to see if you can help.
Which situation is most typical for you? Which one do you like more, scene 1 or scene 2? Well, unless you enjoy making phone calls that are uncomfortable both for you, you'd rather be living in scene #2, wouldn't you?
But there's another factor that's very, very important: In scene 2, you ALSO have TWICE the chance of getting the prospect’s business as you do in scene 1.
Why, because the buyer found you first. In scene #1 you were prospecting. In scene #2 you were positioning yourself.
The buyer naturally has more respect for you in scene #2 because everyone knows you must climb the mountain to find the guru. Gurus don't come down from the mountain hunting for disciples. Who calls who first is very, very important.
A prospect who "finds" you first is more likely to buy from you, than if you find her.
The difference is positioning. The doctor is perceived to be an expert, so you seek his counsel.
. A good marketing system, which helps clients find the designer, can do this for far less money than paying the designer to find the clients. Once an effective marketing system is in place, you can spend twice as much time in front of interested customers and double your income.
There's a hidden benefit to this: When the client finds you, instead of you finding the client, his perception of you is different. She perceives you as a consultant, not a peddler. Clients don't respect peddlers as reliable information sources.
Your Marketing Message
Your marketing & sales message must effectively answer the following four questions:
1. Why should I read or listen to you?
2. Why should I believe what you have to say?
3. Why should I do anything about what you're offering?
4. Why should I act now?
These are very basic questions, but few sales people can fire back fast answers to any of them. There are all kinds of companies who are the greatest in the world, but can't give you a really solid explanation of what they do or why it matters.
Your precise answer to these four questions is your Unique Selling Proposition. You must have this message clearly defined and focused. It must be written down and you must be able to repeat it in the middle of the night when your spouse wakes you from a deep sleep. Everything you do should answer those questions in a consistent way, whether directly or indirectly.
Your Sales Message
Every time you communicate with your customer, you should reinforce the core ingredients of your sales message.
People forget. It's never good enough to say something just once. Once your prospects have contacted you, they should regularly get things from you that reinforce what you told them the first time, and every time you talk to them, you must communicate your core sales message.
It's easy to get tired of constantly saying the same thing all the time, and it's easy to stop doing things that work just because you get bored with them. But you must resist this temptation and consistently, persistently reinforce that message.
Your message will never be consistent unless everyone in the company agrees on what it is. If you change your message every month, you'll never get real traction in the marketplace because customers will have only a vague idea of what you do.


An effective marketing system solves a number of very difficult business problems:
· You have enough “deal flow” that you can choose customers who match your capabilities, rather than taking whoever you can get.
· You have more negotiating power because you can safely “walk away from a deal.”
· Clients have more respect for you because you didn't “chase them down.”
· You can anticipate variations in your available capacity and revenue stream and open up or tighten your sales funnel as necessary, rather than scrambling at the last minute.
· You don't have to alter your manufacturing process or systems to accommodate customers whose needs don't match your capabilities.
· Your time with customers is spent productively, because when they call you, they already understand exactly what you do, what's unique about you and how you can help them.
· You are able to focus on the nuances of solving your customers' problems and building personal relationships with them, rather than worrying about whether or not you can close a deal.
If you sell a product or service, you should lead with information about solving problems, not information about the product or service itself.
It's an old cliché, but it bears repeating: Nobody who bought a drill wanted a drill. They wanted a hole.
What this means for you is that instead of providing information about drills, you should deliver information about making holes. You'll get a LOT more sales leads - with fewer literature collectors - and build more rapport with prospective customers that way.
This is Massively Huge!
This is NOT an afterthought. It is an entire shift in strategic direction that has created fantastically effective results for me, my clients, and my students. As in thousands of potential customers calling, sending emails, asking you for information. And you should incorporate this into everything you do, from your sales collateral to the presentations your sales people make, to seminars and white papers, to advertisements and press releases.

These are very basic questions, but few designers can fire back fast answers to any of them. Your precise answer to these four questions is your Unique Selling Proposition. You must have this message clearly defined and focused. It must be written down and you must be able to repeat it in the middle of the night when your spouse wakes you from a deep sleep. Everything you do should answer those questions in a consistent way, whether directly or indirectly. Every time you communicate with your client, you should reinforce the core ingredients of your marketing message. People forget. It's never good enough to say something just once. Once your prospects have contacted you, they should regularly get things from you that reinforce what you told them the first time, and every time you talk to them, you must communicate your core marketing message. It's easy to get tired of constantly saying the same thing all the time, and it's easy to stop doing things that work just because you get bored with them. But you must resist this temptation and consistently, persistently reinforce that message. Your message will never be consistent unless everyone in the company agrees on what it is. If you change your message every month, you'll never get real traction in the marketplace because clienyts will have only a vague idea of what you do.

My book is out! To read more about it go to:

http://thedesignerscoach.com/book.html

I made the cover of Drapery and Window Covering Magazine's October issue.
To read the article click here>>
http://www.dwconline.com/DWC/2006/oct/cover.html

Here is a photo from a Lunch & Learn event we had last month. A great event and a great Turkish lunch.

Do the Design; Systemize the Business
"What motivated you to become a designer?" I have found that every designer that I ever asked this question have all replied with a comment about some "deep passion" for the career choice. I have also found that there has become a quick dose of disappointment when one finds that being an Interior Designer is not a glamorous as it sounded before they traveled down this winding road. I am here to tell you that I can rescue you from the drudgery of running a complicated business and restore the glamour you are seeking. You studied and worked hard to become an Interior Designer because you felt a real desire to be creative and use your talent as a career choice. "You should do what you love !" Great advise, it sounds so good. But I hear over and over again these common complaints:"I am doing everything myself. I am always on the phone, so much paperwork". "Why am I working so much, and getting so little done?" "Is all this effort and hassle worth it?" "Why am I always solving problems?" "Why do I feel like I am like a juggler at a circus?" Did you become a designer to handle all these problems ? No, but you are running a business, and in order to free yourself up to "Do the Design", you must "Systemize the Business". To do the design, to fulfill your dreams, to fulfill your client's dreams, you must develop business systems. As a designer in your own business, you are an entrepreneur. The meaning of this, is working with the knowledge of organizing your company to understand 6 basic skills:
1) Providing effective Leadership and a Vision
2) Building a solid team
3) Creating a brand and awareness
4) Selling your designs
5) Fulfilling your promises
6) Being an effective negotiatorTo develop these necessary skills, you need to create systems and techniques for each of these points, in order to release yourself from the torturous bondage of a "job" you hate .
Every system you implement in your company will add value or equity to your business . Why? Because you are creating procedures that do not require you to perform every task. You can assign someone for these responsibilities. Maybe you are the only employee today, but if you plan on growing your business , you will eventually hire someone. This first hire will be greeted with systems in place and an understanding of the requirements of the position. I have created six modules, each one focusing specific discipline of running a successful business . The modules are in a specific order, as you will soon read. It is my wish that you follow each module as they are presented. There is a logical progression from 1 through 6, so if you jump around, you might not get the full benefit of going through the work as intended.
Are you ready? Click here to take the test>>
The Leadership Coach
This is the first area of business development, all about you. You are the leader , and you must look within and become self aware as to the type of leader you will need to be. In this module, the work we will do will depend solely on you, your attitude, believes, your actions. We will examine your leadership competencies , and your leadership profile. How will you take your strengths and implement your vision for your organization ? What will be your Strategic Vision for the future of your company? Are you willing to measure your own behavior with a 360-Degree Feedback analysis?
The Team Coach
All businesses from a one person company to a larger organization, needs to work within a " team" concept. How will you manage, coach and lead your team ? How can you become an effective leader, even if you are a one person operation? In this module you will learn how to create a team-chart , position and vendor agreements and how to employ strategic business systems.
The Marketing Coach
The life blood of any business is to generate leads . We must develop a way to have a constant flow of new leads or we cannot survive. In this module we will examine the current state of your lead generation . Through careful analysis you will determine who your target market is. All successful businesses of your type, relies upon referrals. You will create a Referral Marketing System and The Agenda Letter System .
The Sales Coach
The conversion of a lead to a sale is a strategic part of your business that requires the utmost attention. How do you sell your designs ? Have you established a positioning statement ? Do you serve a particular niche ? Are you delivering the intended message to your target market? Have you implemented a selling system ? We will develop a Client Management System to keep in contact with your clients.
The Satisfaction Coach
Keeping your promise is the best way to grow your business and to encourage referrals. A flawless Client Fulfillment System is critical to delivering on your promise to your clients. We will examine how you get things done, and encourage setting up the various systems. Along with this, we will work on making sure that you are exceeding your client's expectations each and every time, with great Satisfaction Staging ideas.
The Negotiation Coach
Do you understand what happens during the negotiation or decision making phase of the selling process? Who is " The Decider ". How do you know if you can trust what your client says? We will work on becoming a more effective negotiator and we will develop a pricing and estimating strategy . Are you basing what you charge on value you create or costs you incur? Also, in this module you will learn an effective "negotiation defense" against price shoppers and a strategy for developing effective contracts and agreements. Do you have a system to track all costs for each job? Are you communicating your " value-message " that will maintain the margins you need to stay in business?
If you follow the modules and apply the concept, I believe that you will find a remarkable change in your business and in your life as I have. I ask only one thing from you, that you must want to make a change in the way you run your business. The key to succeeding comes only from you and your motivation. I hope that you will find the inspiration , and execute a new way of running your organization and then we can celebrate together.
The Designer's Coach offers one to one coaching and seminars throughout the country. Browse through the site, and let me know how I can help you in making your business great.

I am pleased to announce that my book: The Designer's Coach is just a few days from being released. I will report back here on the exact day!

Positive Thinking and Common Sense
A Powerful Combination


I believe that a good amount of our success depends on what goes on in between our two ears. This is: to understand how to remain a positive thinker, and how to have the uncommon ability of common sense. We can all say that we are positive thinkers, until there is something negative in our lives. Then all of a sudden, we become negative thinkers. This is where we need to learn how to manage these thoughts, which is done, most times with common sense.

As a child I was taught by my father to “think positive”. This was told to me over and over. A good lesson, but just being told to think positively is not enough. We must learn how to manage our negative thoughts, so that they do not inhibit our productivity. I can recall many instances when an upset client ruined my day. I became upset and unproductive and probably I might have acted poorly to an unsuspecting client.

We need to practice “self-awareness”. This is a key element of what The Leadership Coach addresses. How do we become aware of our thoughts and actions? How can we manage our own behavior? We become upset, we go into a funk, and we can’t get out of it.

At this point it is time to bring out our best defense: Common Sense. According to The Miriam Webster Dictionary, the definition of common sense is: “sound and prudent judgment based on a simple perception of the situation or facts”.

Write down your negative thoughts, one by one and challenge each one with a dose of common sense. Most times you can successfully neutralize these emotions and handle them without exhausting yourself. This is an effective way to manage your goal to thinking positive.

Being a positive thinker is critical to many aspects of running a growing and successful business. Learning how to battle your demons by looking within to our basic instincts sounds easy, but it takes work, and no one is immune to showing some unflattering emotions. But who said running a business was easy. Managing our minds and the minds of our employees, suppliers and clients is a daunting task. We must be searching for tools to assist us in this task. Becoming self aware is the first step.

There's lots of new things in the works.
*I am planning an E Book called: 12 Superstar Designers. A look at how 12 successful Interior Designers conduct and grow their business.
*I also have a CD of an in depth interview with me about The Designer's Coach.
*Also, stay tuned for the release of my book: The Designer's Coach to be published and available soon.
* Tale a look at my website for 2 Webinar programs now scheduled.
Plus many more and exciting projects.
Go to the site: www.thedesignerscoach.com

The Orchid Principle
How do we build a business? This is the ultimate question. Our quest to grow our company into our vision is something we all strive for. But how do we do this? How do we market ourselves in order to build awareness and attract our ideal clients? Some of life’s greatest questions have the simplest answers. I will attempt to offer my philosophy as to one of business’s greatest questions.

I’ve titled this article: The Orchid Principle. Have you or someone you know love Orchids? Orchids need an incredible amount of tender loving care. They need to be fed, watered, and even placed next to a compatible fellow orchid in order to prosper and grow. You may wonder, is all this worth it? Well, yes! Orchids, when they are properly cared for will bloom continuously for over a year! This is a major payoff. You may be asking yourself, this is interesting, but what does it have to do with building a business?

In my course, The Designer’s Coach I describe 6 Fatal Flaws of a design business.
1) No Strategic Vision
2) Uncooperative Teamwork
3) Haphazard Marketing
4) Amateur Selling
5) Faulty Client Fulfillment
6) Poor Negotiation Skills

Each one of these flaws can be overcome by understanding The Orchid Principle. Let’s look at each flaw, and see if we can relate the growing of orchids to the growing of our business.

No Strategic Vision
Does your business operate without a vision of where you want to be in 5 years? Do you function day to day by making decisions that have no strategic basis? As the leader, you need to lead with a plan.
Let’s look at our orchid garden. Your goal in 5 years is to have the most beautiful collection of orchids. You can close your eyes and see the orchids with their fabulous intricate design and intense color. You have hundreds of them. Your greenhouse is a festival of amazing orchids.
Now, close your eyes and imagine your business 5 years from now. Is it the orchid garden in your dreams? Can you see your ideal business? Like an orchid, can you see the shape of it, the textures, and the colors? Who is your ideal client? How will you reach out and find her?

Uncooperative Teamwork
Whether your company is a one‑person operation or has dozens of people on the payroll, your business must operate as a team. Does your team understand your strategic vision? Do you strive to make sure your messages that you try so hard to create, are not undermined by uncooperative employees or contractors? It is a serious problem when your team works in an unharmonious state.
Did you know that orchids do better when they are teamed next to compatible specie? This is teamwork! It takes a trained grower to know this about orchids. You must build a team too, even if you are the only one in your organization. Team members include not only employees, but suppliers and vendors as well.

Haphazard Marketing
Many times I have seen money thrown at advertising as if it would magically encourage appointments. This is an ineffective attempt to generate leads through misappropriation of resources. What ends up happening is paying an extraordinary amount for a lead. Additionally, the most valued type of lead, the referral, is basically ignored or taken for granted. Many growers of orchids attend Orchid Shows. I recently attended one this spring at Rockefeller Center in New York City. This is truly an amazing event. Each seller of orchids sets up fabulous displays, one outdoing the next. If each vendor sells the same exact product, orchids, how do they generate awareness? The successful ones do it with great arrangements, displays and specialization. They know the magic of merchandising, display and finding a niche.
How will you get noticed? What will separate you from the competition? What will be your niche? How will you create a brand? Simply placing an ad in the local paper, is throwing your money away. Marketing is a careful process of creating a perception and awareness of who you company is.

Amateur Selling
I have seen people try to sell without a plan or system. This leaves the designer working in a confused state. At times you may be selling on price, and sometimes on value. The design team has not established a position in the mind of the consumer, and projects no clear value‑message. There is also the problem where the sales team is not properly trained, and appears unprofessional.
Orchids need to be nurtured and cared for, and so do your clients. Each orchid can give you years of growth. New shoots grow off old ones. Your clients who you take care of will refer you to clients just like her. You build a business one client at a time. There is exponential growth in focusing on getting the most you can from each client. Getting to know all about her, and encouraging her to give you referrals.

Faulty Client Fulfillment
Once the deposit is received and the order process is underway, so begins the task of fulfilling your promises. This is the critical area where most businesses fail. There is very little room for error in meeting the expectations of your clients. This is because, if the perceived value is not achieved, the client will consider that her expectations have not been met, and then the consequences could be an unhappy client. To achieve flawless client fulfillment, systems must be created and implemented.
Did you know that growing orchids successfully also takes a system? Orchids to thrive need proper light and are first fed for growth and then fed to bloom. If problems occur, there are special foods to encourage growth or hardiness. If the orchid becomes overgrown, it must be gently cut, split and replanted or the original orchid may die.
Orchid growers have knowledge of these systems because they have been tested for many years. You must develop your own systems. Some will be unique and some will be time tested industry standards.

Poor Negotiation Skills
How do you negotiate? Do you understand the nuances of the negotiation process? Are you able to analyze correctly who the decision makers are? After establishing your business as value-based, are you able to receive your just reward? It all comes down to this, the bottom line. The final measure of success will depend on your margins. This is a complex business, and unless you understand that your business must work on certain margins, you will not succeed. Most businesses will price each job as to the urgency of the cash‑flow status and not understand the detrimental effects of a price cut.
How does this relate to orchids? Have you seen the price of orchids lately? Do you think orchids are priced on a cost plus method or what the client is willing to pay? Orchids stir emotions, and the orchid seller knows this. How will your business stir up the emotional side of your clients?
Decorating is an emotional based decision. Your business provides the best opportunity to sell products at top dollar. It is up to you, do you want to sell daisies or orchids?

The Negotiation Coach

You work hard to build a business and it all comes down to one thing: Being a successful negotiator. How do you convince someone to agree to your terms, or settle for a compromise? Let's look at some questions to consider:
1) How can you develop the skills necessary to ask for and receive our full value?
2) How will you develop a negotiation system that will guide you through the selling process?
3) How do you take control of the negotiation?
4) How can you learn the closing techniques of getting what you want, and your clients feeling as if they have won as well?
5) How can you downplay price by increasing the value of your offer?

You must communicate your Value-Message
With an intimate knowledge of your target market, how do you communicate your "value message"?
What are your clients willing to pay for?
What is important to them? What is not?
Creating a value message is important, but you must consider what will your most likely client care about? If you target a price-conscious consumer, a value-based message is something they won’t consider that they want to pay for. They are willing to give up something for a better price.

4 Rules to Negotiating
Rule #1
In negotiating ask for more then you expect to get. When you go in with a high price you achieve some positive points. First, the perceived value of your service is viewed more prestigiously and second, you give yourself more wiggle room to negotiate later.
Rule #2
Buyers usually turn down the initial offer. Be prepared for this and have your defenses up to snuff.
Rule #3
Savvy buyers use the “wince" technique. This is where they make a facial gesture of shock at your price, don't fall for it.
Rule # 4
Play hard to get. A good negotiator will smell out a hungry sales person. Even if you are down to your last cent, don't act like it.

Being an Effective Negotiator
To be effective as a negotiator, you must understand that outcomes are determined by emotions. To have an effect, and influence a positive result, you must address 5 concerns during the sales process:
1) Listen
You need to acknowledge and understand her point of view, regardless of its merit. It is critical that you demonstrate that you are a good listener. You need to communicate that you understand her perspective and honor it.
2) Establish a Rapport
You need to reduce any emotional distance by establishing common bonds. How do you build a rapport? This bond building is crucial to giving you an edge during the negotiation.
3) Who is "The Decider"?
Uncover the source of the decision making responsibilities. Can she decide without consulting him? Is it just to inform? Does he care? What does he care about? Is there going to be a joint negotiation? How do we build a bond with an "invisible stake-holder"?
Perhaps the decision does not require more than informing the other after the fact. Sometimes a partner may have the authority to make decisions, but only after consulting. Then there are the couples that consider decorating a big decision, where all involved want to have a final say.
In decorating, the decision making process is never very clear. Our challenge is to figure it out.
She tells you that she loves everything, but she needs to speak with her husband. You can counter by appealing to her ego. She certainly can make decorating decisions on her own. If she agrees but says she still needs to consult with her spouse, make sure you are clear on the deal that she will present to him. Also, try to get her to commit to something: Maybe a time and date when you can call her for a second appointment.
4) Respect
Many times you may stumble into an uncomfortable situation, where one partner is verbally abusive. You need to tread carefully here. It is a good idea to make the weaker partner feel important and acknowledged. Everyone wants to have a sense of importance. If you can make an advocate without alienating anyone, you will gain added trust.
5) Trust
Determine if the role she is playing is real or misleading. Does she act as if she is using her last 2 cents to decorate? Does she promise you, if you do a good job, and give her good price, she will refer you to her friends, with all of them waiting on the outcome of her decorating project? Does she already know too much information? Are you the second or third designer?

Negotiate the Offer, not the Price
Do you negotiate on price or on the offer?
If you had a series of "negotiating defenses", would this help save on price reductions?
How can you train your sales team to practice and learn these strategies?
You must understand that your prices are not arbitrary, and are based on providing the extraordinary service and products you offer. Until you believe it yourself, you will never be able to convince your clients. Price reductions are not an option, unless the client is willing to sacrifice something in exchange, such as a less expensive fabric.

Get it Back
If you feel that you have given up something more then you wanted during the negotiation, try to get some of it back when the negotiation is psychologically over. Make sure you show obvious signs of defeat when you give in to their demands, this way you add on extras at the end, such as: a few pillows, or maybe a lamp shade, you can recover some of the lost profit. You do this when everything has been decided upon. Maybe you are writing up the order when you say” by the way, why don’t we add in a few pillows”? This is psychologically the best time to do this. Do not wait because they won't feel the same way again.
Overcoming Price
It is a fact, that price weighs heavier on the designer then it does the client. You must not think with your pocketbook. However, you must give your client a reason to spend more. You can do this by convincing them that they can't find a better deal anywhere else. The feeling of getting a great deal is more important then the actual dollar amount spent.
But let's be realistic, some clients want a better price and won't settle for not negotiating on price. If your attitude is "take it or leave it" you will lose out on a possible sale. This is why you must come in with a high price and to be willing to settle. This is the only way for some buyers to feel that they have won.
Here are the 5 reasons to ask for a higher price then you might expect:
1) You might just get it.
2) It gives you wiggle room.
3) It raises the perceived value of your offer.
4) It prevents the negotiation from deadlocking.
5) It creates a climate in which the other side feels they won.
If you do make a price concession, do not agree on the first offer. You must find the middle ground slowly and carefully. If you agree right away, the client will feel that they could have gone lower. Make sure you physically "flinch" at their lower price offer.
Great Negotiating Tip
Do not perform any service without negotiating a fee up front. Your trip to the design center is valuable today, for example: When she is desperate to find a certain trim. But the value of a service will always diminish rapidly after you performed the service. If you tried to get paid a month later, it will not be valued as much.
Why will someone pay more?There are several reasons why you can ask for and get top dollar.
1) When you have a specialty, a niche, you are the expert, and experts get the big bucks.
2) When you create a bond with your clients, they will trust you and they will reward you for it.
10 reasons what a client wants, besides a great price:
1) An easy relationship.
2) Predictability, reliability, and dependability.
3) Quick reaction to their needs
4) Accurate quoting of delivery times.
5) Cost reduction by not allowing costly mistakes.
6) Total product knowledge and sources.
7) A willingness to go to bat when a problem arises.
8) Early notice of any delays of delivery.
9) Ease of doing business with.
10) Quick and no hassle remedies to problems.
And of course, an experience they won’t forget, and they will tell their friends!

Are you tracking all costs for each job?
Do you have a system for tracking all costs of a job?
Are you really tracking all the costs of a job?
How do you value your time?
How much of it do you give away?
It has been remarkable how many times I have coached designers who give their time away. This business requires a lot of time to put a job together. You need to put a value to your time, and track it for each client. Once you see this in dollars and cents, you will be very reluctant to negotiate on price. I use Quick Books, a great accounting program that provides a way to assign labor costs to each job.

Have you created a pricing and estimating strategy?
How does your pricing strategy maximize your profitability?
Do you fluctuate between a pricing strategy of value and price?
If you are able to develop an effective and consistent pricing strategy, how do you think it would add profit to the bottom line?
If you charge with a value message, then your pricing strategy will involve managing the expectations of your clients. If you charge more then the competition, you had better deliver a flawless client experience. Is your company up for the challenge? Where do you need to do to perfect your systems before you charge based on what your clients are "willing to pay" for a great experience?
What are your pricing metrics? Do you charge per hour, per yard, labor per foot? Is there any other way you can change the metrics any add margins to the bottom line?
To remain in business, you must have margins that allow you to succeed. "Volume" is a fool’s game. It can create some impressive sales numbers, but are you making any money? There are many strategies to pricing out your jobs. I do like the concept of charging on what they are "willing to pay". A cost plus method leaves money on the table. Why should you charge the same labor for a swag when the fabric is $30 a yard or $130 a yard? You shouldn’t, you need to charge more. Why? There is more risk; More risk, more reward.

In last month’s newsletter, I wrote about the Four Temperaments, a philosophy of creating a personality profile. To review this fascinating approach, here is a brief description of each one:
1)The Sanguine is known as an extrovert, always optimistic and very talkative. They have an appealing personality and are considered to be the life of the party.
2)The Melancholic is introverted and a deep thinker. She can be serious and purposeful as well as neat and tidy.
3)The Choleric is an extrovert and considered a born leader. They are dynamic, active and goal oriented.
4)The Phlegmatic is calm, cool and collected. As a patient and well balanced personality, they are easy to get along with and are pleasant and enjoyable company.
Allow yourself to objectively look at these Four Temperaments and understand that there are universal truths that you can employ as part of your toolkit. With this knowledge you may find some interesting applications that could assist your performance with your clients.
Did you know that even color preference can be influenced by personality type? Reds seem to appeal to the Choleric. The Sanguine is inspired with yellows, while the Phlegmatic likes greens and the Melancholic is attracted to blues. Have you ever been surprised by a clients’ color preference? Maybe she loves purple, but you know the color is wrong for the space. She could be a Melancholic and finds an unconscious attachment to the color. It has nothing to do with her design sense. You can honor her feelings and explain that purple will not help reach the desired look of the room. Remember, the Melancholic is goal orientated, so she will appreciate your reasoning.
If you work involves children under 10, there are some interesting applications. For example: A Choleric active child will react to a red room in a calming way. While we know that red is stimulating, it has the opposite effect on the child. The youngster will interpret their red room as it’s opposite on the color wheel. They will unconsciously see green, as soothing color. Why? Have you ever stared at a red piece of paper for a minute, and then looked at a white wall immediately thereafter? You will see the image of green, red’s opposite. This is what happens to a child up until the age of ten, as they get older they will react as we do, to see colors as they are. A Phlegmatic, dreamy child can be stimulated with the typical calm green color as they will unconsciously see red and become more engaging.
As a “master” of the Four Temperaments, you can respond accordingly to the various types of clients you encounter. Upon visiting your client’s homes, you need to recognize behavior and try to reflect their personality. Your challenge is to be a quick study and make adjustments in your sales and negotiation approach to appeal to the client’s unique personality. A “fast talker” doesn’t want to be tripped up by a slow, methodical approach.
You can also be confronted with a husband and wife team with vastly different personalities that require quick self analysis and reaction in order to please both decision makers.
As you already know, we are also trying to understand why people agree or not, to buy from us. This is a question that we are always struggling with. If we can figure this out, think of the possibilities!
I do believe that learning the Four Temperaments can be an asset in understanding how people think, decide and react. It is up to you to be the “chameleon” and learn that empathy is our best skill when thoroughly developed.
It is the skillful designer that can adjust their own personality type to meet the needs of their clients. As we search for a way to tap into their brain’s right- side emotional reasoning, we will establish trust and a strong bond. This is what great salespeople are made of. Do you have what it takes to grow your business by really understanding the personality type of your clients to determine what will motivate their decision making?

In a recent New York Times article: “The Secret Source is Out” by Kimberly Stevens, May 11th, 2006, the famous Interior Designer Mario Buatta laments:"All of a sudden everyone wants to get democratic and make everything available to the general public and open up the private world of decorating. It defeats the purpose. The reason the D&D exists is that I can go and get my clients special things that no one else is going to have." Poor Mario, his “To the Trade Only” status is gone. Design Centers are opening their doors to the public. Everyone today wants to decorate and wants access to the same products that only designer’s had. What’s a designer to do? How will we make a living?
Toward the end of the article, Paige Rense, editor in chief of Architectural Digest explains: "The field of decorating and design has changed radically in the last 20 years, people are much more sophisticated about design and architecture. It's much more difficult for designers today because people do know so much. There aren't any secrets anymore," she said, adding that it is frightening for a lot of people in the industry. She acknowledged that the most established interior designers, like couture clothing designers, still have a longstanding and loyal clientele. "They swim in a different ocean," she said. But even that ocean may be getting less exclusive. "It's a whole new world," Ms. Rense said, "and you ignore it at your own peril."What ominous words! Our purpose of being an Interior Designer is over. If we can’t sell exclusive products anymore, what are we to do? Relax, I see a silver lining to our cloudy sky. If you have ever read any of my articles from The Designer’s Coach, or attended any of my seminars you would recognize these words:”Everything we do needs to give the perception to our clients that they are buying an experience and not a collection of products”. We are not selling things. People don’t want to buy more stuff, they want experiences, and it is up to you, to find a way to provide them with one.
Being an Interior Designer is not taking the role of a “middle-man”. If that is your only purpose, you will soon be looking for a new career. The source of the products should not matter. I don’t care if the products you supply or specify comes from Target or from The Design Center in your city. If you put the emphasis on the products, you will not be developing your name and company as a “brand” and you will be selling on price and not value. When you build your business on providing an experience of creating “lifestyle entertainment”, your clients’ will understand that you are adding value through your knowledge of design. As an Interior Designer you should be making it very obvious the value that you offer. We sell design, an intangible, un-shopable service. We offer fabulous, artistic creations with our great style, our sense of proper scale, our expertise in color choices, our suggestions of textures, our practical advice on ergonomics and so on.
Your purpose is not that of a “retailer”, though you might be in a retail environment, such as a furniture store or a window treatment business. You will be engaged to assist in making the right decisions based on emotional needs. In order to tap into your clients’ emotional core takes practice and an understanding that there are many personalities and temperaments to learn. We know that there are different ways we all look at things? Everyone has a unique view of things. You are judged from your clients’ perception. This actually can be managed by trying to understand your clients’ own unique perspective on the world.
I have studied recently an interesting philosophy of personalty types, called The Four Temperaments. This is an ancient way of looking at personalities and it was originally explained by the “father of medical science”: Hippocrates. The four types were based on the predominant bodily fluids, that’s why we have these four funny names: Choleric: Yellow bile from the liver. Sanguine: Blood from the heart. Melancholic: Black bile from the kidneys. Phlegmatic: Phlegm from the lungs. In our quest to reduce the emotional distance between us and our clients, I think understanding these four personality types can help take a measure of someone’s temperament. Of course, you may have combinations of types, but if you can get some assistance in understanding the way another person views the world, it can help you in your team building and sales approach. Here are The Four Temperaments:
The Choleric
The Choleric, she is a self-motivated leader. She is someone who can be strong willed, and make quick decisions and relentlessly pursues her goals. Decorating decisions are not something to agonize over. She can be a great client, because she decides fast, but she will turn on you if she doesn’t like the final results. “It’s your fault, you’re the designer, why did you let me select this?” No one can stand in her way. This person typical is logical and practical and doesn’t reveal emotions easily, unless it is anger. They can be at times, stubborn and bossy, and demand loyalty from those who are involved with them. However, if pleased, she will tell the world that you are great!
The Melancholic
The Melancholic likes her time to be quiet and reflective. She likes her home to beautifully decorated and organized. You can usually tell a Melancholic by looking into their closets and seeing how perfect everything is. The Melancholic tends to be very critical and pessimistic, however, if you can please them, they will become extremely loyal and your greatest advocate.
The Phlegmatic
The Phlegmatic can be easy going and is usually likeable. She is someone who is dependable, polite, and even-tempered. This person is not flashy and her decorating decisions are usually informal, she likes a comfortable, easy to live in home. She can be un- opinionated, and this is difficult in making decorating decisions. She will have to be led to choices. If she is unhappy, you might not know it, because, she is not likely to complain about anything. She doesn’t like to stir up a conflict. You will have to push her to complain.
The Sanguine
The Sanguine, is typically the life of the party. She like social activities and has lots of friends. She is creative and imaginative, and loves to decorate. To her, Decorating is Entertainment! Since she is very spontaneous, and will make quick decisions, you need to slow her down at times. The Sanguine can also become easily distracted, and hard to get to focus. She might get angered quickly but she is quick to forgive and forget.
Being a “talented” designer is important, but also having critical “people skills” is equally necessary. How would you use your knowledge of these unique personality types or temperaments to your advantage? What would be the best way to deal with Choleric or a Melancholic? To learn more, send me an email, and I will send you a report on some helpful ways to deal with The Four Temperaments: neil@thedesignerscoach.com
To conclude, yes, “To the Trade” may be dead, but that doesn’t mean you are. Look for a way to position yourself as someone whose service is totally unique. As I mentioned many times before, find your niche, tell your story, connect with emotion and build a career.

I have conducted seminars for, and coached, hundreds of Interior Designers. I have discovered that most lack a "Strategic Vision". This is a plan for the future of your company, a road map to guide you through the challenging decisions in running a business. Of all the areas to address in imagining your "ideal business", it is apparent that most have not considered the concept of "positioning." Positioning is a strategy of directing an image of your business into the minds of your target market. Being an Interior Designer is not a "positioning statement". What will separate you from every other Interior Designer in town? To do this, you must find a "niche" that you can serve. This niche will separate you from the competition and create awareness of your 'brand", your company.
You might say, "why should I limit myself to being known as an "antique expert" or specializing in traditional interiors?" This is a normal reaction, however, the specialist has a "story" to tell. Stories are very valuable in cutting through all the clutter that bombards the consumer. People love stories, and your story has a chance to be heard if you find something interesting to say. Imagine all of the potential marketing opportunities you can engage in if you find a niche that rises above the many messages that every other business is broadcasting. If you specialize in contemporary interiors, you can offer seminars on the topic to local groups. You can write articles for a newsletter or a local magazine. You will stand out among the clutter and make your company noticed.