The WhIP Journal
August 2005 Power Your Practice – THE WhIP JOURNAL [What Helps In Practice]
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In This Issue:
- DOES YOUR C.A. DESIGNATION ALSO STAND FOR ‘COMMODITY AGENT’?
-THAT IS SUCH A GOOD THOUGHT…
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DOES YOUR C.A. DESIGNATION ALSO STAND FOR ‘COMMODITY AGENT’?
Many of you have had a wonderful summer with a good amount of rest and rejuvenation. Some of you have had some of that and also a good amount of ‘catching up’ and keeping very busy. Whatever your situation, September is nearly upon us and ready or not, here it comes!
September is traditionally the time of year when we buckle down, gear up, refocus, etc., etc.
I want to talk about building your firm, growing your business, and planning for the future based on selling a commodity.
That’s right, many readers to this eNews find themselves selling a commodity. It may not be the same language that you use for it, but in essence that‘s what it comes down to.
Selling a commodity.
Perhaps you didn’t realize it. You didn’t intend it, of course. You might even deny it, even as you’re reading this. But many of you are selling a commodity, whether you like it or not.
Some may say, well what’s wrong with that? So, we sell a commodity-based service. So what?
It works. It pays the bills. What’s wrong with that?
Well, let’s see what’s wrong with that.
Merriam-Webster dictionary defines a ‘commodity’ as:
: an economic good as a mass-produced unspecialized product
: one that is subject to ready exchange or exploitation within a market
Hmm, are you beginning to feel like a commodity agent?
There’s not a lot of security in selling a commodity, is there?
A mass-produced service can be found everywhere, with hundreds or thousands of competitors offering the same commodity. You can easily exchange it for another commodity seller.
There’s not really a lot of money to be made either. Must keep those prices down if we want to compete with all the other commodity sellers. Of course, overheads are increasing but that will have to come out of the low profit margins.
What’s the worst thing about commodity selling? How can I describe it and summarize it in a way that will make complete sense? One word.
Can you smell it?
F-E-A-R
-Fees that are often locked in or almost stagnant for years because you find it hard to justify an increase and worry that he client will complain and/or leave. If you haven’t created additional ‘value’ to the clients then your fees may even decline. When you sell a commodity, you must cut prices to compete against the other commodity sellers.
-Eliminate or reduce innovation. Nothing perceived as out of bounds of legislation and industry standards. Ensure all engagements are ‘safe’ and limited in scope and exposure. Value added services are too risky, and create new overhead requiring training, equipment or people resources.
-Avoid growth (sometimes unwittingly). By virtue of the protective, fearful position you’re in, you will not find it easy to attract high quality clients who are looking for innovative and outstanding advisors. You will attract clients who are simply looking for a commodity. They will pay accordingly. (Remember commodities are mass-produced and can easily be exchanged.) You will not be able to attract innovative and outstanding team members. They would wither and die if they stayed in this environment.
-Reducing risk is the undertone of every engagement. Services are scaled down, and associated fees lowered in an effort to reduce risk. However, the overhead costs of compliance are rising all the time and reducing your profit margins.
So how do you break out of commodity selling?
First, by building relationships. You learn to communicate with clients about what they want, who they are, what keeps them awake at night, what are their goals and dreams. You can’t mass-produce ‘relationship’.
Next, by meeting and exceeding client expectations. That means innovation and initiative. It means moving away from safe and commodity-based. It means helping your client’s dreams to become reality.
Practice confidence. Everyday. It is impossible to be confident if you are living in or acting on FEAR. You must CHOOSE to do the things that produce confidence.
Learn new ways to be creative. Creativity abounds in the accounting world (contrary to what the world thinks). Keep an open mind and look for ways to flourish.
Find a voice in a busy, competitive market that is compelling and authentic. Learning to tell your own story that is powerful and will attract people to your business more than a two inch ad.
Attract and retain staff who do not want to sell commodities. If you’re a small firm with a small or very small staff, it becomes vitally important for any and all staff to know how to market your services. Don’t make the mistake of hiring someone without people skills who should remain in a back room and have little or no contact with clients.
Join a Strategic Circle. I have a new session beginning in September. Each month we meet in a small group for two hours (qualifies for PD hours) and I will challenge and equip you to avoid being a commodity agent.
We focus on issues such as Strategic Management Plan; Team Building; Time Management/Productivity; Marketing/Corporate Story; Document Management/ Technology; Leadership; Client Development; Training/Professional Development; Process, Standards, and Policies; Inspiration; etc., etc.
Many of my readers have expressed to me their willingness to join a Strategic Circle group to train, support, mentor, and move them forward in their desire to have a better, stronger, and more profitable practice. BUT… Ah, there’s so often a ‘But’.
“I’m too busy…” You will always be too busy.
“Maybe next year…” Sure, sure, maybe next year (because next year will be different?).
“I am too tired or not ready...” Receiving training, support and mentoring can rejuvenate you and create energy you didn’t know you had.
“It’s not really in my budget this year….” I want to create far more value for you than the monthly fee will cost you.
“I don’t know if I would get enough value…” My ‘Absence of Fear’ policy says that you can cancel any time.
“What if my ‘competition’ is there…” If your competition is serious about their practice management, then don’t you want to be involved as well?
-You are tired and weary, and some support and mentoring would help rejuvenate your spirits. -You’re tired of the same old, same old. How many of you read this offer from me last year and find yourself in the same place now as you were then?
-Perhaps you’re moving forward, but could really use some additional support and guidance as your issues become more critical?
-Maybe you need to remember what it is about the accounting profession that used to make sense and make you excited about going to work each day?
-Maybe you just need to work smarter and work less???
-There’s no risk (see my Absence of Fear policy)and only positive outcomes to be experienced.
What’s required to join the next Circle group in September 2005?
First, sign up and commit to join by Sept 8thth (but don’t procrastinate, you know how well that usually works for you). Your commitment to excellence also requires scheduling to accommodate our 2 hour monthly workshops for the next 1 year (in the GTA); plus have individual follow up calls; occasional reading; personal and professional application of the practices studied; and Circle fees paid in a timely manner.
LAST OPPORTUNITY TO JOIN A STRATEGIC CIRCLE UNTIL SUMMER 2006!
Please sign up by the DEADLINE – Thursday September 8th, 2005
Your investment:
$500 one-time, initial commitment fee due no later than September 8th, 2005.
Monthly fee thereafter - $250 due by the 10th of each month following.
For more information about a Strategic Circle:
http://www.poweryourpractice.com/Strategic%20Circle.htm
For client testimonials:
http://www.poweryourpractice.com/Testimonials.htm
THAT IS SUCH A GOOD THOUGHT…
Thoughts worth reading, thinking, repeating and embracing.
“Markets historically evolve past commoditization to value style and special features. “
- Nicholas Carr
I hope you’ve found value in this month’s copy of THE WhIP JOURNAL.
My best regards to you,
Debra Dowdell
For more information, or to share your firm’s story please contact:
This is an Opt-in No-Fee monthly ezine/newsletter from Debra Dowdell. You are receiving this because you have subscribed to it. You may unsubscribe or change your information at any time at Details@PowerYourPractice.com. Your information will never be given away, sold, or rented. Ever. Thank you.
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Power Your Practice does not warrant or guarantee the accuracy of any statement or other information and materials provided in this newsletter. All articles and other information and materials in this newsletter are provided for general information purposes only.