WEBLOG Houston, Texas: August 16th, 2009: Pricing has come up again and with it the disappointment of losing sales to a cheaper competitor.
    Economics 101 says that a lower price raises demand. Increased demand equals more sales which gives you more profit, not less. Of course, there is a limit. Reducing prices below cost can bring disaster, but short term losses can benefit a business if demand increases. Increased demand and more efficient working reduces costs.
    By selling more - and thus buying more from a supplier - discounts may be achieved. Or, you may be able to buy directly from the manufacturer at even lower prices. Also, your fixed overhead costs would be spread over more sales, reducing the OH cost per unit. If your cost per unit reduces sufficiently, your profit can be maintained or even increased.
    Ask yourself, "If I could increase sales by reducing the price, how many more sales could I get at what price?"  Estimate the increase in sales likely at various price points to determine the best possible result. In a large enough market, test this by selling the item in one sub-market at one price and the same item in another sub-market at a different price, and see in fact which produces the best result.
    It's also possible more sales will occur by *raising* the price. It's also possible to increase the total profit by selling fewer items at an increased price, too. Ask lots of "what-if" questions, make a best guess answer - or test if possible - and try it and see.
    What I am fighting against here is the general belief that lowering your prices means less profit. It ain't necessarily so. High price does not always mean high profit. Low price does not always give low profit. They are not co-dependent. And that is where winners are made!

WEBLOG Houston, Texas: August 6th, 2009: How would you handle a customer who wanted to reserve a particular day for work to be done but was still considering a competitor's quote? A coaching client had this happen this past week.
    I don't see why a reservation would be made until the customer places their order. Why would you discuss when work is to be performed when it hasn't even been decided you will perform the work? Doesn't make sense to me.
    If the customer wants to discuss scheduling, I would simply ask, "Does that mean you want me to do the work?" (It's called a trial close, in salesman-speak.) When the customer says, "No, I haven't decided yet," my reply is, "We can discuss scheduling once you have decided."
    There is another sales note worth making here — If you are discussing when work can or cannot be done before the buying decision has been made, you are giving the buyer another  reason to say No. The purpose of any conversation prior to the Close is to get as many Yesses as possible and eliminate the Noes.
    It is possible the customer needs work done by a certain date. If that is put to me by a potential customer, I will calmly reply, "At the moment, the date you want is open." (If it is, of course.) That doesn't mean it will stay open after we hang up. It's open now. If they order now the time will be allocated to them. To press the sale, I might even say, "...but I cannot guaranteee how long that time will be available."
    My point is that locking down a job date and time before you have a job is not very efficient.

WEBLOG Houston, Texas: July 31st, 2009: On Social Networking-- Certain business friends said, "Join Facebook! It's good for business." Eventually, I did and I'm glad. I figure getting business through Facebook will take time — as long as getting business from joining a golf club, for example.
    What has been useful, though, is keeping in touch with old friends and making new ones. Real world "keeping in touch" involves actually meeting, taking time for coffee or a phone call. That's not always possible. On Facebook their posts "keep you in touch" without actually being in touch. On the odd occasions you do meet (real world) you are as familiar as when you meet often.
    Take one of my aquaintances - We might meet once or twice a year. I knew she was a district officer with Toastmasters and very little else. Meanwhile, I'm sure she knew equally little of me. When I met her (before FB) we were almost strangers. Now, even though we don't meet any more often, we know much more about each other. When we met a few days ago, we chatted like old friends - because that is what we are now - thanks to Facebook.
    The business result is, I am likely to recommend her as the Realtor she is and my name is likely to come up if business coaching is on her mind. And this is not only because we now know what each of us does, I am also familiar with her personal activities and she, I hope, has been noticing my activities on Facebook.
    Frankly, I think it is a mistake to "promote" oneself or one's business in social media. If one comes over as "using Facebook for business" you lose the benefits of "people do business with people they know, like and trust." If all they know about you is your business, they won't know you so well, and are likely to like you and trust you less. I am trying to strike a happy medium.

WEBLOG Houston, Texas: July 19th, 2009: Pricing for contracting work has been a topic of interest recently. Service businesses do this all the time, often from a book of standard prices.
    Preparing bids for service work is not the same as pricing products for sale, supply only. When I was bidding for construction work - and indeed, pricing entire contruction projects - I would make bid allowances, up or down, for a particularly helpful engineer, a difficult contractor, easy access, number of visits necessary, distance from storage area to building, site drainage, finished location of key components, and many other less obvious conditions that would affect my costs.
    There are a great many variables that affect work on a construction site. There is no way a contractor can determine if a subcontractor prices low this time and prices high next time, other than by comparing prices from each competing subcontractor. And even then, he can only say that one is higher than another, not than one is "pricing high" or "pricing low."
    I believe the most efficient and profitable way of bidding for work of this nature is to calculate one's anticipated *actual* costs and add profit relevant on the conditions in existence at each bid. Lack of work is one reason to lower one's profit in order to secure work. Abundance of work is a good reason to increase one's profit calculation to reduce one's workload.
    A steady flow of work is one of the most important elements to maintain for a service business, and this can be done by bidding skillfully.

WEBLOG Houston, Texas: June 4th, 2009: I have been in a discussion with a friend about Mastery. This is how I think of mastery —
    Imagine you are a skilled furniture-maker – a craftsman. You have designed a most exquisite dining chair. You have done the drawings and completed the blueprints for the parts – you have selected the wood for each piece – your tools are sharpened and ready.
    You begin work, crafting the curve of the back and the subtle undulations of the seat. You focus on perfectly replicating the design, shaping everything into the contours of your dream.
    You no longer need to focus on the chair — you focus on the leg, or the joint, or the curve. By surrendering to the task and to the detail, the chair will take care of itself. By surrendering to the task completely, you perform your work to the highest standard, as only a craftsman can — and in this way, create something truly beautiful.
    In business terms, suppose you sell computers. Calculate how many computers you must sell to make a certain profit. Dividing this by twelve tells you how many computers you must sell each month, by four for how many computers to sell each week, and by six for how many you must sell every day. Decide how you will sell them – your advertising – your target customer – your sales pitch, etc.
    Then surrender to the task of selling the computers as expertly as you can. If you focus on the goal – the anticipated profit – you take your mind off the job of selling. By focusing on the job at hand – surrendering to it – trusting the plan – you can enjoy the job, do it well, make your customers happy – and earn your projected profit without giving it any further thought. That is mastery.

WEBLOG Houston, Texas: May 25th, 2009: Over the past few days, I added a page to this website - Leveraging Your Financial Potential - which recognizes the opportunities available through getting to know people. The tremendous developments of the internet, and the ability to converse with people around the world in real time is part of this opportunity. Yet, we must not forget to get out from in front of our computers and actually meet people in the real world.
    Surely, the more people you know and the more people know you, the greater the opportunity for success and growth. Every super-successful and truly wealthy person is famous to great degree. The more famous they are, the more successful they are perceived to be.
    This is no secret. Oprah Winfrey probably knows more people than you do, and is probably more successful than you are. You are successful to the degree that you are famous. So, if you want to be more successful, become more famous. Get to know more people. Join groups. volunteer at charities. Become a force in your community. This is probably one of the easiest Success Principles to adopt, and one of the most enjoyable. It makes work seem like play. And why not!

WEBLOG Houston, Texas: April 27th, 2009: Last Friday, I went to a fabulous networking event. Great people! Great conversation! It was well attended, but as a personal coach I had to wonder why more business people don't work such events.
    There is no doubt in my mind that effective networking is the cornerstone of growth for every small business. They are also tremendous opportunities for people looking for a job or a change of jobs. Yet, I almost never meet someone job-hunting at these events. Why is that?
    In today's job market, I am told, the number of applicants is enough to make any job-hunter panic. So, wouldn't an introduction from a current employee give you an edge? Wouldn't meeting a manager who is looking for staff be worth the trip?
    It has been many years since I was an employee, but my major job successes came from contacting my manager-to-be directly and not going through the "Jobs Vacant" ads. Maybe that is not considered fair play these days? I don't know – it worked well for me!

WEBLOG Houston, Texas: March 19th, 2009: Over the past few days, I have been busy adding pages to one of my websites – SelfImprovementPages.com. I have added two pages of Motivational Videos by Brian Tracy.
    Brian Tracy is one of my favorite business and personal development gurus. His material is so practical and down-to-earth that it is just right for people who are turned off by the exceptional hype and "rah-rah" that is often used by motivational speakers and trainers. Tracy is just business-like, and that is what I like.
    You can get to the pages through the front door URL just stated or go directly to BRIAN TRACY VIDEOS.
    There are five short video clips of Brian Tracy that you can view on the page, plus there are 19 DVD programs available covering topics such – How to be an Excellent Manager, Motivating your team to Peak Performance, Doubling your Sales, and Setting yourself up for Personal, Professional and Financial Greatness. There are others grouped by Sales, Leadership and Personal.
    SelfImprovementPages.com has a bunch of other material, too, under the headings of Motivation, Finance and Health. You're sure to find something that can help you build your business, your life and your wealth. Enjoy!

WEBLOG Houston, Texas: March 8th, 2009: What do you hope for? Do you believe you have what it takes to be rich and successful? Do you believe you could be successful if the right opportunity came along? That, if the right opportunity came along, you would know what to do and how to handle it? Right now, it would appear that we are in a period of exceptional opportunity. Are you prepared?
    On the other hand, do you believe that the right opportunity is not likely to come your way and you are not likely to ever become hugely successful and rich?
    We know that we must think positively. We must play our own game and not concern ourselves with how another plays their game. We have things to do, things to take care of, responsibilities to meet. And a steady, step-by-step, progress through life suits us best. It is the Tortoise and the Hare – our tortoise will beat anyone’s hare in the long run. That is our plan. Steady progress. Day after day. Is that your plan? Steady, daily progress? Making good headway, step by step!
    So, a little happier and a little more fulfilled are steps along the way to being totally happy and totally fulfilled. Let us, therefore, not think too much about the goals of total happiness and total fulfillment, huge success and very rich, but focus more and work harder towards being a little bit better off than before. Let us take it one step at a time, incremental progress, little by little....making today a better day, and tomorrow, and the next day, and the next!

WEBLOG Houston, Texas: February 21st, 2009: This past week, I have been helping a friend who has been feeling like a failure. They have been feeling down and getting angry with themselves for failing to get their life sorted out. What some might call 'bad luck' has come upon my friend and she blames herself.
    I asked my friend if she could find some success in her situation? Nobody succeeds all the time, and the person who succeeds the most often fails the most. If the person who succeeds the most also fails the most, what of the person who fails the most? They must succeed the most, right?
    I cannot speak for every successful person, but I know I look for the silver lining in every cloud. Because I have discovered that every cloud does have a silver lining. What successes - what silver linings - could be hiding in my friend's failures?
    What if, in the process of losing a sale, you learned something that would lead you to three sales? What if being laid off from a job led you to start your own business? One of the best things that happened to me, many years ago, was my bank refusing a loan for my first business - I felt like a failure, but this prompted me to start smaller, using money I had. So, I started my business without being burdened by debt.
    Could it be that when you are feeling down you are feeling the failure so much because you are concentrating on the failure? What would happen, do you think, if you concentrated on what is good about what happened? What if you could find a success in every failure?

WEBLOG Houston, Texas: January 15th, 2009: Great progress being made on the website - I hope you like what we've done. I feel really charged up now and ready for a fantastic new year. I hope you are too.
    You may remember a few months ago I mentioned disposing of my scuba diving gear. Last weekend, I gave it away to a young lad who had been recently introduced to the sport. The reason I tell you this is to note how long it took me to do that. We become attached to our story. But it's only a story! That I was a certified divemaster was part of my identity, that's who I was. To decide I would not dive anymore was tough enough even though a minor medical condition prompted the decision. But to go through the process of actually getting rid of the equipment was very, very difficult. It meant throwing out part of myself!
    This is to highlight the negative aspects of keeping unused equipment, old files, and worn out furniture in your environment. A cluttered garage, an overstuffed storage room, even an untidy desk, can be a real drag on your day-to-day performance. Not only from the obvious inefficiencies of not being able to find things when you want them, but mostly from the psychological drag of living as the person you were rather than the person you are. Being finally rid of my scuba gear, I now feel much lighter, much younger, and quite liberated. I feel like a new person. If you need help getting your new year started, please get in touch. You can find my e-mail address here.

WEBLOG Houston, Texas: December 16th, 2008: You may have noticed that this website is looking a little different. I am presently updating the appearance and the content of FrederickPearce.com. I could hire someone to do this, of course, and get it done quicker but it is something I enjoy doing. That is one of the advantages in running your own business. When you're the boss, you get to decide who does what! It has provided an opportunity to discuss such matters with friends and aquaintances and I have received lots of comments and advice. If you feel inclined to offer your ideas, feel free to e-mail me. Your suggestions are most welcome.
    I am also particularly interested in hearing what additional information or applications you would like to see. What can I add to this site to make it more interesting and more useful for you?
    Meanwhile, we seem to be approaching the Christmas holiday season with a little apprehension. The world's economic situation is presenting us with surprise after surprise - many of them not as good surprises as we might hope for on Christmas morning. However, to be quite frank, I am uplifted by it all. This past September, my home suffered a direct hit from a very large and severe hurricane. We hadn't had any hign winds for a number of years and this turned out to be nature's way of pruning the dead trees and branches for us. Perhaps the current economic situation is nature's way of pruning the financial world in equally dramatic fashion!
    In fact, I have no fear of the future. I look forward to a bright and prosperous 2009 and wish the same for you and yours.
    For a last-minute Christmas gift, may I suggest my book, KEEP YOUR EYES ON THE PRIZE: An Exercise in Life Purpose, Random Acts of Kindness and Generosity
    I wish you all a Happy Christmas, Hannuka, 1 Muharram, and Whatever other holiday you enjoy. May peace be with you.

WEBLOG Houston, Texas: November 2nd, 2008: I have never been able to understand why we insist on hard work being a prerequisite of success. I do it, too, but, frankly, it makes no sense.
    Success is a result, it is the final measure. If your goal is to run 100 meters in under 10 seconds, then the moment you achieve that goal you are successful. The difficulty of the task has no bearing on whether you are successful or not. The difficulty may have a bearing on your pride in achieving it, but pride is not the success - the 10 seconds is the success. If you had to train 8 hours every day for six years to accomplish it, once it was done you would have a great deal of pride and one entry in the record book. But if it proved easy for you - say, only a week of training for an hour a day - you would have less pride and one entry in the record book. The success would be the same, only the pride would be different.
    What if we believed that success was easy? What if we refused to burden ourselves with such oppressive thoughts as, I cannot be successful if I don't work hard? What if we insisted that hard work distracted us from success, that hard work was an obstacle to success? What if we looked around and noticed that people we regard as successful don't seem to work very hard at all?
    I think we make life difficult by the stories we tell ourselves. The idea that hard work is necessary before we can enjoy success is one of the worst. It may be the main reason more people are not successful. We won't allow ourselves to become successful and refuse to accept success until we have done a sufficient amount of "hard work."
    And that doesn't make sense!
    Amazon tip: Get Success Made Easy by Ron Martin.

WEBLOG Houston, Texas: October 14th, 2008: Three days after I wrote the last blog, Hurricane Ike slammed into Texas and caused us more than a slight inconvenience! I was without electricity for nearly three weeks and clean up took a lot longer than that, with trees down everywhere! It was exciting, to say the least!
    But life goes on, and now we find ourselves in one of the worst economic 'hurricanes' the world has known. The current debacle has me very puzzled. It seems to me that the sudden economic decline (Wall Street crash, bank failures, foreclosures, bail outs, what-have-you) was totally avoidable, that the government, treasury, SEC, FDIC et al already had all the tools they needed to avert the difficulties being faced, that "the system" had all the safeguards in place to prevent and protect. What I don't understand is why these different entities didn't solve the problem before it got this bad.
    Whatever the reasons, we are in the situation we are in and we have to get on with our lives. What can you do to take advantage of the situation? Is this the time to invest in the stockmarket? Should you convert your savings to gold?
    Should you think about starting your own business? If you already own your own business, what can you do to offset any possible downturn - advertise more? add new products or services? If you are employed, what can you do to make sure you are not laid off, if your company downsizes? These are the things I deal with as a business coach. If you need help, contact me.
    No matter what is going on around you, you - and you alone - are responsible for your own future.

WEBLOG Houston, Texas: September 10th, 2008: I am often asked how someone can keep themselves motivated. I often find that a person who has difficulty staying motivated is on the wrong life track. Most of the ideas people have about motivation refer to external stimulii - they say they are motivated by their spouse, their children, social pressure, money, recognition, and so on. I have found that external matters are only temporary motivators at best. Continuous motivation must come from inside, and if one finds oneself regularly without motivation, it is a sign you are on a path that is inconsistent with your true desires and values.
    Why do I say that? Because if you are living your Life Purpose, you will be automatically and constantly motivated. Do you need to be "motivated" to play with your young children? That motivation is there from the mere fact they are your children. They are an integral part of your life and playing with them is consistent with your deepest and most important values and your purpose. (If you don't have kids, then you will have something else that proves the point.)
    The answer, therefore, is to bring consistency, or congruity, into your life. Now, this isn't something to be achieved in a few minutes. It takes digging deep to identify your true personal values and through them discover your Life Purpose. Once you have that determined, all you have to do is arrange your life so that your most important values are satisfied and your purpose followed. Once you know your life purpose, these things are easy to arrange and you will find yourself in a permanently motivated state.
    Life really is that simple.

WEBLOG Houston, Texas: July 28th, 2008: Well, I managed to remove my old desktop PC from my office - that's a first step in removing the clutter that is gumming up my life right now.
    Funnily enough, though, this has been a very busy and productive period for me. I have been very busy, my new book was posted on Amazon - KEEP YOUR EYES ON THE PRIZE: An Exercise in Life Purpose, Random Acts of Kindness and Generosity - and this has been a very profitable period, too.
    My Goodness! If all this can happen as a result of opening up my life by removing an old computer, think what will happen when the other stuff is out of here!
    My scuba gear remains to be cleared out, and the sundry boxes of old files still await attention, But, on a personal note, I have been getting my backyard looking tidier and more appealing. Despite the hot Houston weather, it's quite pleasant to sit out there in the evening.
    This is all part of a goal I set earlier this year - to raise my standards. Raising one's standards is something I think we can all benefit from. (See Raise Your Standards)
    Yes, life is good! Business is good and I think I should be able to get that scuba gear out of here very soon!

WEBLOG Houston, Texas: July 1st, 2008: Are you having trouble clearing out your office or your home? Is the clutter making you feel unproductive? I know how you feel.
    As we get older, we accumulate books and files and stuff, until it bogs us down. It can be very difficult to get rid of. It took me years to finally sell my Austin Healey. It had been sitting in a garage for 20 years but I couldn't part with it - it was part of me! Getting rid of it was like finally admitting I was not young any more. But once I had done it, I felt remarkably free. Only then was I able to take my life to a new level.
    Now I'm going through the same thing again - an accumulation of stuff that I find hard to part with. I have scuba gear I have not used in several years but can hardly accept that I am not likely to use it again. It has to go! It's gumming up the works. I have boxes of files I have forgotten what they contain. And every time I open one of the boxes, I say, "Oh, yeah! Well, I might need that some day!"
    It's not that I might need it. It's that there's a bit of me in every box and in every file, and throwing it out will be throwing a bit of me out. However, until I do, I can feel myself slowing down. My growth as a person is grinding to a halt. It has to go! Baby AND bathwater!
    What about you? Repeat after me — "I must get this crap OUT OF HERE!!!!"
    Now. Get to work! Me, too!

WEBLOG Houston, Texas: June 27th, 2008: Do you have enough money? Some days I feel that I have enough and some days I feel I do not have enough. Some days I feel I have enough and my 'internal critic' says, "That's not enough?! What if this happens, and what if that happens?"
    I have to decide, either to push that voice aside and go on feeling that I have enough and all is right with the world, or I have to listen and ponder and perhaps worry a little and begin to feel bad about it. And then, hopefully, do something about getting more. (See this discussion about money for more on the subject.)
    You might think that I would be more productive in the "feel bad/do something" thought pattern, whereas, in fact, I am decidedly more productive and add to my wealth far more while I am in the "feel good/have enough" thought pattern. What about you?
    This is one of the areas in which millionaires think differently to less wealthy people, and is why millionaires generally lead a relaxed and unstressful life. Do you want to be a millionaire?

WEBLOG Houston, Texas: June 20th, 2008: Settling for less than you can be stops you achieving your goals. But, how can you tell whether you are settling or whether you are making a wise decision? Few people realize how they bring about their own lack of success.
    Settling is a choice. It could be a simple, "I give up!" Or it could be a more considered choice, like, "Okay, I have less than I would like, less than I have been trying for. I could make some new effort to get more, but that would take time away from (this thing) that I enjoy, and money away from (this thing) that I enjoy. What I have been striving for isn't worth sacrificing (this) and (this). Therefore, I choose to stop trying for more."
    I encourage people who have chosen to "settle" to think further. I would like to see them figure out how they might have the 'more' they have been striving for without having to sacrifice the things they enjoy. Couldn't they give up other things that are less enjoyable or even downright harmful? Perhaps they can give up procrastinating (to start with an obvious one!)
    Perhaps they can stop going to the movies every week, to see movies they complain about, wasting money and time in the process -- and use that money and time towards achieving more. (That's something I did personally many years ago.)
    Perhaps they could stop eating out and start having dinner parties at home - same expenditure of time and money but now they entertain influential people with whom they might achieve some of the 'more' they are after. And so on.
    I feel less for people who know what they have to do to reach their goal and don't do it, than I do for the person who cannot figure out what they must do to reach their goal. Because, in many cases, it's just a matter of raising your standards.
    Perhaps it is true that few people are willing to do what it takes to achieve what they say they want. I think, however, that far more people would be willing if they only knew what to do, or if they realized they do have the power to change things.