What To Expect If/When War Breaks Out, and 7 Things You Can Do To Help Your Business Through It
David Stowell
Having been through the Gulf War in the early 1990's, we were caught by surprise at what the war did to our business. Now it appears we are on the verge of another war, this time with very uncertain consequences as to what might happen here on U.S. soil.
What Happened "Then" -
When Desert Shield began in late August 1990, there was not a big change in our learning center business. At that point, the war was simply "over there" and was more of a television-event-waiting-game. The nation wondered if anything was really going to happen.
The big change began January 1991 when Desert Shield became Desert Storm.
As soon as the air war began, our phone "stopped ringing." In other words, we stopped getting calls from prospective new clients. Existing clients kept their regular schedules but people looking for help stopped calling us.
If you know me at all, you know that I am "obsessed" with making the phone ring. As long as the phone is ringing, I feel as if we can "weather" anything. When the phone stops ringing, it is the first major alarm that business is dropping off. And remember, it doesn't matter how many current clients you have because your current client base is always decreasing.
The phone pretty much didn't start ringing again until after the ground war ended. The total length for all of that to take place was 6 weeks. For us, that's along time to go without adding many new clients.
Do I know why people stopped calling? Not really. At the time, Americans weren't really worried about people attacking us here on our continent, but it was a time of uncertainty.
September 11 had much the same effect; only it didn't last as long. About the time the TV programming returned to normal, so did our number of inquiry calls.
What You Can Do Now -
So if we know this can happen, here are 7 things you can do to help your business through that uncertain time:
- Make sure you get some kind of marketing out BEFORE the war starts. By getting your phone ringing now you can "bulk up" on new clients. If you haven't yet done your semester newsletter, get it out right away!
- Increase your marketing budget and effort as soon as war begins. If/when something starts, get something out to your mailing list. Remind people that you are there ready to help struggling students...students who will continue to struggle whether there is war or not.
- Offer more FREE screenings. If you are a PACE provider, this is an easy one. Use the PACE marketing materials to offer the FREE screening. Remember, with the FREE screening, you will convert fewer prospects, but at that point it is worth it to add as many paying clients as possible.
- Consider reducing your fees. When you need students, taking less than you want is better than taking nothing at all.
I once was on a trip and stopped at a motel. It was at 10:0 at night and they offered me a "Mini Suite" for $59. Normally this suite was $120 per night. After I agreed to take it for the offered $59, the manager decided he couldn't sell it to me for that amount.
I explained to him that I had $59 to spend on a room that night. Someone in his town was going to get my $59. I explained to him that it was already late and he had 15 unsold mini-suites that would probably go empty that night. I was willing to spend my $59 with him on the mini-suite, or I could give it to someone else.
Now you have to realize that the motel's cost on that mini-suite was about the same as a regular. And he had already offered it to me. At 3:00 in the afternoon, giving someone that kind of cost reduction is ridiculous...after all, you might sell them for the full price throughout the evening. But at 10:00 at night, that won't happen.
He decided I should spend my $59 somewhere else, and so I did. The bottom line here is this:
How much money do you bring in on a sale you don't make? When you need clients, and the client needs your services, and money is an issue, reduce the cost in order to make the sale.
Don't write up a new "price list." Just make the offer when you are consulting with the prospective client. And don't lower it so far that it puts you out of business. Think of it this way...maybe the fees from one client will pay the clinician and your utility cost for the month. Or the phone cost. Keep track of your numbers and you'll realize how far you can reduce fees and still survive.
Remember, this is only a temporary reduction!
You can also reduce fees in other ways:
- Reduce the testing fee
- Apply the testing fee to their sessions if they sign up as a client
- Give them longer to pay (be carefull...still get credit card authorizations or post dated checks)
- Give them the first month free or at a reduced cost
- Pay the licensing fee for them
Are you getting the idea? The bottom line is give people a discount of some kind, but only if it will help get them signed up immediately.
- Consider marketing ideas you don't normally use. We use mail more than any other form of marketing. In difficult times, try something else. The easiest is public speaking. Line up places each week to take 20 minutes and explain what you do to help struggling students, how it is different from what they get in school, and tell some success stories.
Where could you speak? Try contacting these groups:
- Services clubs (Lions, Rotary, Kiwanis)
- PTA groups
- Board of Realtors (They would LOVE to hear about educational services that are within their area)
- Chamber of Commerce
- Local colleges and universities
- Borders Books and Music sometimes has community programs that are free to use the store for a presentation about the area of interest
Just keep this in mind; what people MOST want to know is this:
Will this help my son or daughter, or will it help someone I know?
- If business is slow, take the time to train yourself for new programs you want to add to your practice. This might be the time to take additional training. What other services would you like to offer? What training programs have you seen but thought you were too busy to go and learn?
- Spend some time with other professionals in your area developing referral sources. Go meet the psychologists, counselors, even orthodontists. Explain your business and leave them materials they can pass along to any patients they feel can use your services. They won't all want to see you, but some will (especially if you buy them lunch!). You might even visit the private schools in your area.
When the war ends, send out another newsletter to your regular mailing list. Hopefully, there will be a backlog of people looking for your services.
If we don't go to war, or if we do and your phone doesn't stop ringing, then we can all let out a giant sigh of relief. But if we do, or if times get difficult for any reason, follow this plan to get the most out of your efforts!
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