Escalating annuity income the way to go – Tip 8

Opportunities go begging in a world obsessed with price and image, says Marius Pretorius.  Annuity income of the automatically escalating kind is not only best but the ultimate – followed by self-funding.GK

Sell your product the way YOU want to buy it – Mario Pretorius Business Tip 3Selling ‘expert time’ is the most limited type of business.

Making a product of the expertise sold is next best. Packaging it against current alternatives as self-funding is second best. Making it an annuity-based income is the best, while structuring it as automatic escalating is the ultimate.

Telecoms are a most rewarding business. It’s a growing annuity business that escalates and allows for add-ons to satisfied clients. It’s not unique in its structure, but it’s a good choice as the sales need not have a fresh set of customers every month.

How can your business move towards an annuity income if it’s not yet there? Can you add a small support fee that covers all support instead of charging by incident? A priority fee that guarantees first response within 15 minutes, all hours? Here again is the opportunity for value-adds that the customer will see and accept as more valuable than its price.

Account to the customer the bargain he is getting; compare it to scenarios of competitors. Many software companies have moved to the renting of services rather than the outright purchase. It smoothes income but is a hotbed for lazy selling –so perk up and manage the targets here.

If annuity won’t fly in your business (think airline here), how can the offering be structured to be self-funding? How can potential passengers be wooed to choose before flying?

Such opportunities go begging in a world obsessed by price and image and without the understanding of funding models

This tip is an extract from the manuscript of “The Unconventional CEO: Common sense outside of conventional Management thinking” (by Mario Pretorius).

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