Clients or Grinders: The Choice Is Yours Understanding the Three Market Types data-src=https://creativecow.net/wp-content/uploads/avatars/1/5f4458a34bd86-bpthumb.jpg data-srcset=https://creativecow.net/wp-content/uploads/avatars/1/5f4458a33fb2e-bpfull.jpg 2x class=lazyload avatar avatar-80 photo height=80 width=80 />
Ron Lindeboom February 17, 2021
0 Comments
In this article, Creative COW co-founder Ronald Lindeboom explores a concept that will empower your negotiations, streamline your client acceptance policy and give you a near-failsafe system for spotting winning clients and quickly avoiding time-consuming grinders. This simple formula is so basic and easy to understand that once you see the concept, you will probably say: I know this! and you do, you see it working everyday in your business and in your life.
Over the years I've seen one thing in my sales and marketing career that rarely if ever changes. In fact, it is so predictable that you can easily spot it during your negotiation cycles. In doing so, you will not only make more money but you will avoid those heartache customers that drain you of not only your enthusiasm and time, but your monetary resources as well.
What is this marketing and negotiation secret that has so much power? There's a principle locked away in human nature, which if you understand it and it's easy to do once you have the following concept as your framework it gives you a powerful key to make your business more successful. It's a principle that I call Clients or Grinders and once you hear it, you'll know why.
At the heart of this concept is a principle that I call The Three Basic Personality Types of The Market and if you take the time to understand how these three personality types build their differing kinds of relationships, you will be able to spot each of them in just minutes and fine-tune and adjust your sales efforts when dealing with each of them. Using this principle, you will rarely find yourself in a frustrating negotiation again. Here's why
Understanding the The Market's Three Basic Personalities
data-src=https://web.archive.org/web/20140907000152im_/http://library.creativecow.net/articles/lindeboom_ron/clients_or_grinders/assets/chart.jpg alt=/>
All markets can be broken up into three layers because there are three basic kinds of people. Sure, there are infinite nuances of human personality but there are three basic personality types and here's how they work
Have you ever had one of those great clients that relies on your judgment and expertise and values your experience and always pays on time and never haggles about price? They're rare but they're there. They are that Top 15% of the market that I call the clients and everyone wants them. But they rarely shop projects once they find someone they trust and once they learn that they can respect you and get good service from you, nine times out of ten, they'll not even send out an RFP looking for bids. You see, these people are all about trust and relationships and once you build that trust it's something that no low-baller could ever come in and destroy. These people know what they are worth and they do business with you because you know what you are worth as well and they'll send a low-baller packing because it's clear to them that the low-baller knows what their self-worth is as well! These people are quick to recommend you to their friends and associates usually, people just like them as birds of a feather really do flock together and they will actively try to help your business grow (just as they see you offering ideas to help them grow their own business).
In the middle of the market is what I call the 70% middle market and as a group they are, for the most part, fair-minded, honest and they do not usually beat on you for deals though they do appreciate a good but fair price. They may not have the sense of loyalty that the top 15% of the market have but they do try to be fair (they know they are not perfect and they have made their peace with themselves and they treat you the same) and they will try to work within relationships wherever possible. Within this middle 70% group, you can fine-tune their reactions by their proximity to either the Top 15% of the market or the Low-End 15% of the market. As these middle market people get closer to the top or the bottom, they act accordingly and take on traits of excellence or traits of ugliness that you will live to regret if you choose to do business with them (if they near the crossover point where they fall into the lower 15% of the market). As you learn to spot where within this majority 70% market area they stand, you will quickly be able to spot those clients you wish to work with or those grinders that you want to send packing nicely of course, but packing nonetheless!
I am always amazed that the Low-End 15% of the market is the first part of the market that most new businesses set out to work with. Some do it consciously and others unconsciously but the end result is the same a lot of work for very little money, if any. This often happens because many people think that you have to undercut existing businesses to build a new business. That's simply not true. But if you believe that you do have to undercut the market and you price yourself as a low-ball artist, you set yourself up to attract the people that occupy the lowest 15% of the market. I call these people Grinders and for good reason: They will grind you and demand that you treat them like the people in the Top 15% category and they will expect that treatment from you as they push and push to get things below your cost. They'll promise you more jobs down the road and that just this one job needs a deal the others will make you some money. Yeah, right
