Mourning the death of the inheritance

Just read an interesting article at Your Money from the New York Times.  Here’s the full article link.

Essentially, it suggests that older americans are spending more of their savings and inheritances are dwindling.  Here’s a few reasons why that may be happening.

- With the economy in an all but declared recession, seniors are choosing (or perhaps more out of necessity) to help their children with their expenses even when the children are adults.  Seniors can disguise it as helping pay for their grandkids tuition, sports activities, and maybe clothes, but the fact remains that the money could have stayed in the bank. 

- Seniors are spending more because they are living longer.  Rising health care costs are eating away at the nestegg.  Medicare and social security benefits are being reduced, forcing more money to come out of pocket.

- Seniors are healthier longer and having more fun.  Spending money on travel, dining out, and other fun activities are being enjoyed for a longer period of time than ever before. 

It makes you think, as a parent.  What will I leave behind for my children?  It might not be the inheritance that fill bank accounts.  For my wife and I, it’s more important for our kids to learn how to make, save, and give back money.  Sure, the inheritance check is important, but that can be spent and it is gone.  But the knowledge is sharpened with each use.

Summer heat equals added customers

I recently talked to a restaurant owner who was looking to add outdoor seating to his growing cafe business. The problem? No cash!

He needed to spend about $2,000 to add 10 tables, fix the concrete patio, and add some umbrellas. Rather than take the money out of his personal savings, he chose to get a merchant cash advance.

He received funding in 14 days, and anticipates having the loan paid off in 90 days. It will cost him a bit of interest, but as he sees it, he is making an easy $25-50 clear on each table per day.

Rather than find excuses for why you can’t grow your business, find solutions.

- Brian

www.bedrockfinancing.com

Stop selling and get more customers!

Stop Selling! Learn How To Ask For Sales Referrals.

Whether you are a business owner or salesperson, closing deals and acquiring customers takes lots of hard work. But sometimes, we can oversell. Well, maybe its time to stop trying to sell.

Let your customers sell for you through sales referrals. But first you need to learn how and when to ask.

With a referral, there is instant trust and your selling cycle time is reduced. The time it takes the referral to buy is usually much less than any other lead source. What this really means is less hassle and more sales.

Clients are the best referral source because they know you and they know your products or services. Never miss a chance to ask a happy client for a referral, and a testimonial letter while you are at it.

You can also ask prospects. Suppose you call a prospect only to discover that your product or service doesn’t match a need. You can still ask for a sales referral at the end of your call. What’s the worst that can happen? They say “no.” No big deal. Move on. But sometimes, just sometimes, they provide you with a name. And that’s a great start.

Ask for sales referrals at the end of your visit or contact. AFTER you have completed your primary objective.

Sales referrals seem easy enough but there is a bit finesse required. Here’s how NOT to ask for a referral: “Jim, do you know of anyone who might be interested in my services?”

This is NOT the recommended method because it is far too easy for your customer or prospect to say, “Ahh…no.” The ‘no’ that they give you is often reflexive in nature; an automatic response to a closed ended question. In other words, they respond negatively out of habit. You could be missing tons of opportunities.

The BETTER way to ask for the sales referral is this:

“Sandy, can you give me a name or two of someone you know who might be interested in these types of products?”

The difference is subtle but significant. By asking for a “name”, your client has to THINK about names. It is not quite as easy to give you a dismissive “no.” Usually, they tend to do a mental scan of friends and associates. This scanning pause helps reduce the automatic, reflexive ‘no’ response.

Of course, they can and sometimes will, say “no.” But by asking for a name you increase your odds and improve the chance for success.

Good Luck!

- Brian Little

www.bedrockfinancing.com

And the rate cuts end, finally.

Tuesday June 3: “WASHINGTON — Federal Reserve Chairman Ben Bernanke on Tuesday suggested interest rate policy is on hold, said “relatively weak” U.S. growth may be better in the second half of the year and termed the central bank “attentive” to economic risks posed by the weak dollar.

At an economic conference in Spain, Bernanke called current Fed interest rate policy “well positioned to promote moderate growth and price stability over time.”

What does this mean?

His words strongly suggest that the central bank is getting more worried about inflation.  They appear more concerned about the weakening of the dollar and rising costs.  As of now, I think the Fed thinks the economy has survived the credit mess, the spike in oil prices, and although weak and feeling wobbly, has not broken.

As a consumer though, I don’t know how much more I can take.  $4.00 gas is not a happy thought.  It has changed my driving habits.  My grocery bill is my next challenge.  With a family of 4 kids, I can’t believe how much per week I a paying just for the essentials.  Forget about that Sunday cookout of shrimp and some steaks.  It’s burgers and hot dogs for us.