The Gallery-Artist Debate: Is Each Earning Their Percentage?

Recently a well-meaning artist posted this statement on Facebook:

“The standard gallery practice since I started selling in galleries has been a 50/50 split of the retail price sale with the artists. However, in the last 7-8 years it seems like galleries are doing much less for artists but still demanding the same split. So many shows now require that artists pay for shipping both ways. So many shows feature artists the gallery does not represent. If you are not representing me and trying to build my career, if you are not trying to get magazine articles for me, if you aren’t really presenting my work to collectors, then you are no longer earning 50% of the sales. Is anyone else standing up to galleries? Are we so afraid of missing out on being part of shows that we all just do whatever galleries ask of us? Why are we, as artists, giving so much power to people who are offering us little other than wall space?”

The artist isn’t necessarily wrong, but he isn’t necessarily right. Here’s why:

Complaint: “In the last 7-8 years it seems like galleries are doing much less for artists but still demanding the same split.”

Maybe instead of the question being “Why aren’t you doing more for me?” the question should be, “Are you selling my paintings?”

From my perspective, though it would be nice to have a gallery promoting and advertising me, I look at their primary role. They are a sales agent, to whom I pay a 50% commission.

What matters to me is whether my work is selling. Everything else is gravy. Though many of the outlined promotional activities can lead to a sale, they are also expensive to implement. If they are not necessary, and not part of an agreed-on expectation, that shouldn’t matter if the gallery is doing its primary job … selling paintings.

If someone wanders into a gallery and buys a painting without ever having seen an article or an ad, does it really matter? The sale is what matters. 

Another way to state it: If a gallery has figured out how to sell my paintings without articles, without PR, without ads, do I really care? Again, the sale is what matters.

If paintings are NOT selling, then one has to question the entire relationship. But every business has unpredictable up and down cycles, which is why I think all artists should have galleries in different regions, and probably have at least three. Some years my gallery sells every painting I send, other years not a peep. But I know they are trying.

Start With an Agreement

Unless he had an up-front written or verbal agreement, the artist could be complaining about not receiving something he never should have expected. I think it’s important that every gallery have an agreement in place. Start with a dialogue: “This is what I hope you can do for me. Can I expect this from you?” And it’s a two-way street; the gallery should explain exactly what they need from the artist.

I like written agreements — not to avoid future lawsuits, but for clarity. A simple one-page doc stating the artist’s and the gallery’s expectations is important.

Oh, you’ll also need some protections. I’ve watched friends lose paintings when a gallery when bankrupt and the court seized inventory. You should have it in writing that the gallery does not own your work, and that in the event of a bankruptcy or at the first indications of financial problems, they will give you a chance to get your work out. You’ll have to be willing to go collect it — if a gallery is going through a financial crisis, don’t expect them to pay for shipping.

Complaint: “So many shows feature artists the gallery does not represent.”

This statement assumes that the gallery should sell only artists it represents. However, as an artist, I celebrate when a gallery does something like an OPA show, AIS Show, etc. Why? It’s helping put the gallery on the map, it’s making new people aware, it’s bringing outside promotion, and ultimately, it’s driving traffic to the website or the gallery where potential buyers can find my work.

Frankly, anything that keeps money coming in the door and keeps a gallery healthy is a good thing. If they are having a cash crisis and decide to do a special show to make some money, support them. Otherwise you may be picking up your work when they go out of business.

Complaint: “So many shows now require that artists pay for shipping both ways.”

Guess what: Things are not the way they used to be. It’s harder than ever to be in the gallery business. Rents are high, expenses are high, and galleries are seeking ways to save money. We as artists cannot expect them to behave like it was still the good old days. We have to work in today’s market. Shipping terms should be part of your written agreement.

Complaint: “in the last 7-8 years it seems like galleries are doing much less for artists but still demanding the same split.”

The split is a commission, as I mentioned above (unless there are other terms). Here is a fact: More galleries have gone out of business in the past five years than have survived. Galleries cannot operate the way they used to operate. In the old days droves of people walked in the doors; now those expensive rents do not produce foot traffic. So they may be paying $25,000-$50,000 or more for a retail space when there is no retail business. 

One gallery, which since has gone out of business, asked what I would recommend for them. When I asked what percentage of their business was from locals, walk-ins, or in-person visitors, they said 10 percent. I suggested they close their retail space (which was costing them $25,000 a month), deck out a small showroom in an inexpensive warehouse space, and focus on selling more to the 90 percent. For half of that $25,000 a month, a gallery could dominate all the art magazines and drive more business by Internet and phone. But their egos got in the way, they were in love with their space (which was incredible), and that $300,000 in rent drove them out of business. Would it have been better to downsize and survive?

You and Your Gallery are Partners

It’s a good idea to have an ongoing dialogue with your gallery about what you can do to help them and what you need them to help you with. Find out what is selling. One gallery owner told me recently his art was no longer selling, so he got all new artists and moved in a different direction, making his business healthier than ever. Galleries cannot control the market, they can only reflect it. If you understand trends, maybe you can make adjustments in your work to meet those trends. Also, though you’re looking to the gallery to market you, they need your help too. Are you letting people know who your galleries are, how to find your work at galleries, and referring customers to them? Again, it’s a two-way street. 

Complaint: “If you are not representing me and trying to build my career, if you are not trying to get magazine articles for me, if you aren’t really presenting my work to collectors, then you are no longer earning 50% of the sales.”

I can’t emphasize this enough: Unless you have an agreement for articles and other career-building, the gallery’s only job is to sell your work to earn that commission. Of course they will present your work to collectors and buyers — by giving you wall space and talking you up.

Complaint: “Are we so afraid of missing out on being part of shows that we all just do whatever galleries ask of us?”

If a gallery is asking for help, ask yourself why. They want your participation because they are seeking new ways to bring customers in the door. I’d much rather cooperate with reasonable requests than be the one artist not in a major show. If I’m in a partnership and my partner needs my help, I’ll be there. 

Selling with Honey and Not Vinegar

Two artists I know have different approaches. One calls the gallery and berates them for not selling enough work. He calls frequently, and, other than bringing people’s attention to his work, or possibly doing a show or advertising, it sells if it sells. But this artist completely alienated his gallery and they fired him. Why? He was not worth the hassle. They dreaded his calls. He made them feel bad even though they were trying everything. People were just not buying his work, and they could not make him happy. And they had lots of choices of other artists who were selling.

The other artist is the nicest guy in the world. He doesn’t call much, because he knows the gallery is busy, and if every artist called every week, they would never get anything else done. When he calls, he doesn’t even ask if things are selling or what they are doing. Instead he simply says, “How can I be of service? What do you need from me? Is there a kind of painting anyone is seeking I might be able to paint?” Oh, and he sends a small gift to the salesperson each time they sell a painting. 

Who would you rather do business with?

Complaint: “Why are we, as artists, giving so much power to people who are offering us little other than wall space?”

Oh, I’m sure it seems that way. But keep in mind, some months a good gallery may not sell enough artwork to pay the bills. They may be wondering, “Why aren’t these artists earning their 50% by helping us more? After all, we’re putting out tens of thousands in rent, ads, electric for all that lighting, employees, sales commissions to employees, shows, food for shows, public relations, etc.”

It’s important to make sure you understand both sides of the story. Wanna really feel empathy? Ask your gallery if you can come there for a week to be a salesperson. See just how easy it really isn’t.

The bottom line is that you and your gallery can both gripe about a lot of things the other could be doing. But be thankful they have selected you when there are 200,000 other artists they could pick. If you’re one of 30 or 50 they are hanging, you are in the upper 1 percent of artists in the world. Be thankful that they are exposing your work, hanging it, lighting it, and paying for that wall space. Be thankful they are doing everything they know to bring people into the gallery. Could they do more? Of course, and they will if they can afford it. Be thankful they can sell your work while you’re sleeping, or painting. It beats trying to do it all on your own, and the expense that goes with that.

A Message to Artists

Consider this. The gallery business is at risk. This is the time we all need to support them, help them survive and thrive, and celebrate that they are doing what they do for 50 percent. I know an artist who gives the galleries 75 percent and is now one of the richest artists in America because they favor his commission over the others. He’s not complaining because he did $5 million in sales last year.

A Message to Galleries

Consider this. Artists put their heart and soul into their work, and you exist because they don’t want to have to learn to sell on their own. If they wanted to be business people, they would have gone into business. They need you to communicate with them, and they need to understand your issues so they don’t look at everything as one-sided. 

Both artists and galleries can do a better job of communicating. There is no right or wrong, we’re all in this together. If one falls, the other could fall. Let’s all work harder on communicating.

By |2019-11-08T10:25:22-05:00November 8th, 2019|Business, Galleries, Sales|0 Comments

What to Do if Your Art Stops Selling

Last week an artist told me he was suffering. His sales were way off, and the steady income he had become used to had suddenly come to a stop. He also told me his galleries were not selling much of his work anymore.

I asked him what he thought the problem was, and he told me he is doing everything he can to generate income … more workshops, working on a book, working on a video, getting into more plein air events, doing an online mentoring program and an online school, and trying to schedule some gallery shows.

As I probed this with him, I asked which came first … all the activities or the slump in sales? His answer was no surprise. “I was doing really well and hardly had to do anything to sell paintings, but I wanted to make more money, so I started working on these other projects.” When I asked him if he was painting as much and sending as much to the galleries, he said, “Well, no. I don’t have as much time.”

This is going to sound absolutely counterintuitive, but less is more.

The disease many of us have is thinking we have reached a peak with our income and that therefore we need to start doing new things to bring in more money.

An example is my buddy Jim. Jim owns a coffee pot business. It’s a pretty big business. He has pots made in China with his brand, and he sells them on Amazon. He has made a lot of money, but when we last met, he told me he was getting out of the coffee pot business and getting into the vitamin business. 

Why? Pots had stopped selling as well, and he sees lots of people making a lot of money in vitamins. 

The grass is always greener. Someone else looks successful doing other things, yet we forget that when we do new things, there is a tremendous learning curve, time to understand it, and often it’s not naturally in our skill set. Someone else might be successful, but we don’t know how many decades of struggle they went through to get there, or how much money it cost them to start.

Any time you start chasing shiny objects, you suffer somewhere else. I should know. Success magazine called me the “Shiny Object King,” and it was not necessarily a compliment, though their point was that some shiny objects turned out to be better businesses than what I had.

As an artist selling art, you are a small business. All businesses have up and down cycles. Sometimes those downs are caused by the economy, sometimes they’re caused by a change in the industry or business, sometimes they’re impacted by events like the California fires or election fears. Sometimes we don’t know.

Something I do know: In Ecclesiastes it says there is a time to reap and a time to sow. I find that when business is off, we have to put the shiny objects aside and protect our core business. 

My friend Jim is giving up because he is in a down cycle and moving to something else, forgetting that startups are hard. I think that instead he needs to keep his head down and stay completely focused on solving the problem.

We all love to place blame. It’s a lot easier to place blame on other people, or other things or conditions. But my friend Jim is to blame for his own problem, as is the artist who got so distracted by shiny objects he failed to protect his core business. 

There are two issues with shiny objects. First, they are a distraction. Second, they send signals to the market. With social media, people know everything. This artist used to post paintings and thank customers for buying, but for the past year or two, all of his posts have been about his shiny objects. That’s sending a signal to his market that he’s bored with painting and has moved on to other things. I’ve been seeing this a lot lately.

There is no problem with wanting more income, but you want to start with this question…

If I focused more energy on my existing business, could I find a way to grow it to the level of income I want from all my other shiny objects? The answer is yes, and if you don’t know how, all you have to do is find out. There are plenty of experts out there to help.

What if, right now, you had every customer you’ve ever had?

Most people buy one painting from you. But what if 50 percent of the people who bought one painting from you bought one painting a year? Would that change your income? Of course.

The solution to every problem is found in a series of questions. If you ask great questions, and you try to come up with 50 answers for each question, and don’t just pick the first few easy answers, you’ll solve any problem.

The same day this artist told me that nothing is selling, his friends aren’t selling, and he thinks we’re in a bad economy, another friend told me he sold more art this year than any year in his career and that a lot of his friends were thriving too. Hmmm.

Lots of artists I know are coasting and in the danger zone. 

Some things to consider if things are not going as they should:

  1. Am I as focused as I should be?
  2. Am I doing all the things I have normally done to keep business strong?
  3. Am I too reliant on others for my income? Should I control it more?
  4. Am I being distracted by shiny objects?
  5. If I could pick only ONE thing to work on for the next two years and could not work on any other thing, what is that one thing?
  6. What questions should I be asking myself? (There are probably dozens.)
    1. How have things changed, and what do I need to be doing differently?
    2. Has my worked changed, and do people want it?
    3. Is my work still relevant? 
    4. Is my category of art still hot?
    5. What could I do to get income out of past buyers?
    6. Am I sending bad signals to the market?
    7. Am I willing to work as hard?

If or when you see things changing, get focused on solving the problem and keep your head down. A concentrated effort can make a huge difference toward solving any problem.

By |2019-11-04T10:11:07-05:00November 1st, 2019|Business, Sales|0 Comments

Why I Hate Marketing

Dear Artist Friends,

I hate marketing.

There, I feel better now that I’ve said it. 

I hate marketing when it’s sleazy. I hate marketing when it’s dishonest. I hate marketing when it exaggerates. I hate marketing when it lies or it misleads.

Most of the artists I know also hate marketing. They think it’s dirty.

In fact, most of the artists I know believe that art should sell itself. That someone should see it, respond to it, and buy it.

I’d like that too.

I’d also like it if I sat down at the counter of a soda fountain in Hollywood and had a producer walk in, discover me, and make me famous. That’s what supposedly happened to Lana Turner, a 1940s Hollywood star. But it turns out it’s a myth — it never happened. It was crafted by a Hollywood PR agent so people would feel more connected to this new star as “one of them.”

Tens of thousands of young wannabe stars show up in Hollywood hoping to be discovered. And those tens of thousands get whittled down to a few hundred who ever get a part, a few who become famous, and a tiny number who stay famous.

Though most in Hollywood want to believe that luck plays a role, most Hollywood agents will tell you that the ones who succeed make their own luck because they outwork everyone else. These “lucky” people do 20 times more auditions, they meet 20 times more people, and they work 20 times as hard. And once they get famous, they keep working 20 times harder because they know that Hollywood is littered with out-of-work “has-been” actors who got lazy once they got famous.

It turns out that marketing your art is similar. The ones who succeed, the ones who get “discovered,” work 20 times harder than most. The ones who succeed continue to market for as long as they plan on selling artwork.

In Hollywood, once you get one part, it helps you to get another and another, if you keep working the system. Art, too, has momentum. Sales lead to sales, as long as you remain visible and continue to get attention.

Marketing is NOT about luck. It’s also not about needing to do anything dirty, sleazy, or dishonest. Most marketing isn’t that.

It’s also not always about talent. There are lots of success stories about people who are not the most talented.

Like the Hollywood actors who are showing up and promoting themselves, it’s the same for artists. Show up and promote yourself. Do it over and over and over.

Showing up in the case of an artist means being seen and finding appropriate and tasteful ways to get noticed. Nothing more.

Showing up can mean mounting an exhibition or show and making sure the world knows about it. It can mean advertising. It can mean social media. It can mean direct mail … postcards, letters, personal notes.

Of course, massive action can work best … doing them all (and more) all at once. 

Luck comes in when you get fast results, which is rare. Most get lucky by building and keeping momentum … showing up again and again, day after day, week after week, year after year.

I watched an artist’s career launched by massive action … showing up constantly and consistently for about five straight years. 

Then I watched that career decline because the artist decided he was famous and known and no longer needed to do all that hard work. Today no one knows his name, and he is broke. We mistakenly believe that we can market till we see success, then stop.

A commitment to marketing is no different than opening the doors of a store. If your doors are open, the store has to work hard to keep people walking in those doors. Than means continuous advertising, creative promotion, and other things to draw attention for as long as you want customers. When you stop, they stop showing up.

Believe it or not, people are not thinking about you or me all the time. In fact, if we’re not visible, we’re out of mind. (We mistakenly think we’re being seen on social media, but social isn’t being seen by everyone, or even everyone on your friend or follower list.) Therefore we have to determine who the buyers are, where they spend time, and that’s where we need to be … constantly. 

In Hollywood it’s considered career death if your face stops appearing in People magazine. As an artist, if they’re not writing about you, if you’re not advertising and not being seen by the people who continually spend on art, if they are not reading about you (people often confuse advertising with editorial, and that makes them feel like they’re reading about you), and if you’re not staying visible and generating publicity with new shows and exhibitions, you can easily be forgotten.

If you’ve ever found yourself confused about marketing or what to do, just know that anything consistent and frequent is better than waiting around doing nothing because you’re not sure what to do. I’ve built entire careers on advertising alone, which is the most powerful form of marketing other than editorial. The difference is that you can’t get publicity consistently and can’t control if or when you get it. But you can control your advertising.

Consider this. If you want to make a living as an artist, you have to open the door to your “business” and continually work to get people to walk in the door. You can do it tastefully or distastefully. You can blend in by being like everyone else, or you can stand out. But if you do it consistently and never stop, you will be the success you’ve always dreamed of.

 

By |2019-07-15T12:06:01-05:00July 15th, 2019|Business, Sales|0 Comments

What One Marketing Method Would You Use If You Were Just Getting Started?

Louise Murphy of Fredericksburg, Texas, asks, “What one marketing method would you use if you were just getting started?”

Well, I know you’re eager to get out and start marketing.

But Louise, before you do anything, before you get your work out there and start selling, you need to know where you want to go — before you go there. You don’t get in your car and start driving before you have a destination in mind. Same for this: Before you start marketing, you need to set your goal. Then you’ll build a strategy and tactics to get you to that goal.

I suggest starting small, and building out from there. When getting started, you just want to focus on a couple of things — the important first steps, so to speak. I’d suggest setting one, maybe two goals for things you’d absolutely die to achieve in the next six months.

For instance, if you haven’t sold any of your paintings before, maybe you’d like to sell your first painting and get some money for it. That’s an admirable and achievable first goal; it’s always a really good starting goal for a painter. Or maybe your goal is to find someone to sell your art for you, like an art gallery, or perhaps you’d like to find a partnership where you could display your art for sale in a local restaurant.

It’s so important that you set some basic goals before you do anything.

Secondly, you need to find three really honest people who are professionals and will tell you the truth. People who will tell you if your art is ready or if it still needs some work before you’re ready to start selling. I don’t recommend asking family or close friends; rather, I suggest that those three people could be fellow artists, art gallery owners, or other professionals who know what makes a market-ready piece of art. It’s critical to know if your work is ready for prime time, so to speak. If all three are saying it’s ready, then you probably should have been selling already. If two out of the three really honest people say it’s ready to go to market, then you should try to fix the problem identified by the person who disagrees, but you should still try to start selling while you work on it.

Once you set a goal, then you start to collect the e-mail addresses and mailing addresses of people interested in your work.

One strategy that will be important for your goal of selling is sending people to a website to view your art, so you’ll need to start building a site to show your finished work. You’ll want to get comfortable talking about your work and telling the stories behind your paintings, and maybe blogging about your work as well. These are all important things for new artists getting started.

Building a website, talking about your art, making e-mail and mailing lists of the names of people who like your work … these can all be goals for an artist who’s just starting out. And they’re all things that other successful artists did at some point in their early career.

There are lots of companies that can build a website for you — you don’t have to become too technical or build something from scratch all on your own. Work with people who work with other artists; you’ll want to be sure you’re showcasing your best work.

Once you’ve got a website and a handful of people who are interested in your work and are on that list of yours, you can start working on getting those people to visit your website, and then, hopefully, getting them to buy your artwork.

To summarize: Set goals. Keep them achievable. Make sure your artwork is good enough. Accumulate and capture a list of people who like your art. Build a website, get comfortable talking about your art, and start directing people who have an interest in your work back to your website.

I hope, Louis, that helps you understand a solid art startup.

Interested in growing your art sales and income? Read my best-selling book Make More Money Selling Your Art: Proven Techniques for Turning Your Passion Into Profit.

 

By |2019-01-24T14:07:06-05:00August 22nd, 2018|Business, Sales|0 Comments

Are First Impressions Killing Your Art Sales?

 

Last week I gathered my family for our annual visit to a local history museum that we love very much. We’ve been members for years. In fact, I’d received a membership renewal e-mail the week before, which is why the museum became top of mind, prompting us to visit. Thinking I’d be at the front desk to check in anyway, I’d simply renew my membership on the spot, which would probably be faster than taking time online. (I know, it sounds backward.)

We arrived, were asked if we were members, and of course I said we were, and that I had just received a renewal notice. “Sir, you’re not a member. You must be mistaken. You don’t show up in our system.” I was frustrated, but I recognize that people often spell my name wrong, or try to use the name on my credit card, which is not what I go by. Still no results. The looking went on for 10 minutes while my family waited impatiently. Finally, the woman at the desk, sounding angry and frustrated herself, said, “You’re not a member, never have been a member. Would you like to become a member? All you need to do is fill out this form.”

Not wanting to take more time, I simply said, “I’d just like to buy tickets.” At which time I was told, “You’ll have to go to that line over there.” I said, “There is no one at that desk.” “Oh, she’s around somewhere, you’ll have to wait.” I waited, the employee returned, and I overpaid for tickets because I didn’t have my membership.

Sadly, when I get frustrated or disquieted, I lose my joy for a few minutes, and I was grumbling under my breath about the museum. And I kept finding problems. Ultimately, though we go there every year, we decided it was not all that great anymore, so we probably won’t return. And I started to question my own memory. Maybe I wasn’t a member. Of course, that changed today, when another membership renewal notice came by e-mail.

What has this got to do with marketing art?

Every first impression matters. It sets the tone.

If someone goes to your website and can’t find what they are looking for, it sets a tone of frustration. They may have gone there looking for a particular painting, or to check you out, and the second they get frustrated, they leave, and they probably won’t come back.

Or you’re in a booth in a tent show. Someone sees something they want to buy, but you’re busy with a line of other customers and they can’t get your attention, or they hear “I’ll be with you in a minute.” They may wait, or they may tell themselves they will come back later, or they could leave in frustration. Maybe they are in a rush and can’t wait. In any case, you may have lost a sale.

Maybe someone sees your work somewhere and sends you an e-mail, but you’re out at a show and not checking your in-box. What you don’t know is that they are having a big party on Friday, they want that big painting on your website, and you’re not responding. Or perhaps they call and get your voicemail and they don’t leave a message, or they find your message box full — or they simply want to talk to you right now.

You may be thinking, “I’m only human. I can only do so much.” True, but customers think differently. And in these days of instant communication and Amazon purchases, they expect what they want, exactly when they want it. Not five days from now.

In person, first impressions matter too. You’re at an art show and the customer doesn’t feel you’re dressed appropriately, doesn’t like the quality of your frames, thinks the lighting in your booth is bad. Little things have a big impact.

Though you can’t please everyone all the time (and some people are just cranky), just remember that first impressions set the tone for your brand in the customer’s mind. You may have spent thousands of dollars over many years building a brand in a customer’s mind, yet once they decide to take action, their impression changes based on their first real encounter. Either it reinforces your reputation and brand, it’s neutral, or it hurts.  

Though you’re “just one person” and “just an artist who can’t do everything and can’t afford help,” know that you could be losing business. If the phone rings three times and isn’t picked up, they may call the next artist on their list. If you answer “Hold, please,” you’ll lose half of the people who call. If the type on your website is too small to read on a phone, they will probably leave.

To solve this, do a first impressions audit. Ask yourself about every customer entry point and if it is customer-friendly and fine-tuned to give customers what they need the moment they need it. Ask some friends to evaluate everything. See if you can improve it. Though it may cost you money to fix any issues, consider it money well spent in order to capture customers.

First impressions matter, and if you’re in the business of selling art, you’re in business — and that means customers expect the same from you as they would any other business. One painting sale lost a year is too many. If you do an audit, you can fix a lot of little things, and that could mean a change in your sales.

By |2019-01-24T14:13:15-05:00July 26th, 2018|Business, Sales|0 Comments

The Empty Building: What You May Be Missing as an Artist

Minutes from my home, in a very popular part of town, I’ve watched a new office building go up as I pass when driving our kids to and from school each day. Now, after months of construction, the building is ready and available for tenants. The sign went up long before the building was finished, and yet today, months after it’s been finished, it sits empty.

Keep in mind that Austin is booming, companies are leasing space like crazy, and all the neighboring buildings are full.

So what’s the problem? And what does this have to do with marketing art?

Several weeks ago when looking for space for a new studio to shoot art instruction films for Streamline Art Video, I decided this would be a great building to lease part of the space. So I decided to call. But driving by the building, I couldn’t read the phone number. My vision isn’t perfect, but it’s not that bad. So I had to drive into the lot, get close, and copy down the number. That’s mistake number one. Designers tend to go for beauty over practicality. Make sure you understand the distance when someone is viewing your ads, website, etc. For instance, on the phone most websites look bad, but they look good on a computer screen. Problem is that 80 percent of all Internet use is on the phone.

The Phone Call

My call went like this…

“XYZ Properties, can I help you?”

“Yes, I’m interested in the building on 123 Street. Can you tell me something about it?”

“Hold, please.”

Ring … Ring … Ring … Ring… “Hi, this is Bob from XYZ Properties. Please leave a message.”

“Bob, my name is Eric and I’m interested in renting your building at 123 Street. Please phone me — I am ready to move in as quickly as possible.”

Bob never called. Not an hour later. Not a day later. Not a month or now, even two months later.

Oh, I may have missed his call. It’s possible it’s in my phone somewhere. But I looked and I didn’t see it there, nor did I see any additional missed calls.

Now perhaps Bob has a deal and has the whole place rented and decided there is no reason to call. Yet there it sits, two months later, with no cars outside and the “Now Leasing” sign still up.

If Bob does have it rented, a call to me is still important because … you should always return calls. Even if you think there is no reason to. What if I wanted to hire the company to manage my real estate? What if they had a space in another building that was perfect for me? What if I wanted to buy their company? What if I wanted to reach Bob to offer him a job? Sometimes the message left is a smokescreen for the real reason behind a call.

The second reason it’s important to return calls? Now his company has a bad reputation in my eyes.

The even bigger issue, and what I suspect is the truth, is that Bob is lazy. Maybe he never heard my message. Maybe he forgot to call. Or maybe he just hasn’t gotten around to it.

In the sales business, we call people like me a “hot lead.” I was interested at that moment. Fact is, I found another building and have since moved in. I’m no longer a hot lead.

How does this apply to art?

Let’s say someone sends you a note, or calls you, and you don’t know why they got in touch. They want to get a birthday painting for their spouse, but they don’t say that because they don’t want to be sold. But 24 hours pass, and you haven’t called back yet because you are busy. Or maybe you left a message and they didn’t call back, and you didn’t try again.

Finally, when you do reach them, you find out the birthday-gift need was that day, last-minute. And you not only lost a sale, you lost a customer for life.

Now you may be thinking, “I don’t want to be too aggressive,” “I don’t want to appear desperate or needy,” or just, “They will call back.” But what if they lost your number? What if they’ve got busy and have been tied up, and forgot to call you back?

When someone calls you, they are giving you permission to reach them, even if you have to call more than once. Your message might simply be, “Your call is important. I want to make sure I follow up with you.” But at least call once.

The key is to call back as quickly as humanly possible. Make them feel important. If you don’t reach them, call a couple more times at least. If you can find them on LinkedIn or Facebook, send them a message.

You never know what is on someone’s mind. Always follow up as fast as possible.

We are living in an e-mail and texting culture, and there is a generation of people who don’t use phones to call, but only text. If this is the case, the text and e-mail information should be on the sign. (Always provide multiple options to reach you on EVERYTHING you do.)

My guess is that Bob is lazy and the building will sit empty till Bob’s boss find someone else to fill it.

Eric

PS: I’m doing a weekly blog called Sunday Coffee, where I talk about art, life and just stuff that interests me. You can subscribe or read it at www.coffeewitheric.com.

By |2019-01-24T14:13:04-05:00February 28th, 2018|Business, Sales|0 Comments

Tattoo This Inside Your Eyelids!

Recently, I was in the market for a product. Once the salesperson got me on the phone, this is what I heard: “Mr. Rhoads, this is the best product on the market, light years ahead of our competition. I can get it for you at a really good price right now. In fact, I can take 20 percent off the top.”

Here’s what went through my head as he spoke:
Salesperson: “Mr. Rhoads…”
My thoughts: I hate to be called Mr. Rhoads: It drives a wedge between us, making the salesperson seem alien.
Salesperson: “This is the best product on the market…”
My thoughts: Says who? Prove it. More important, I want the product that will work for ME. I will determine who has the best product. He’ll say it’s the best, but I can’t believe him: He’s the one selling it.
Salesperson: “Light years ahead of our competition…”
My thoughts: I didn’t know there was another company. I wonder who the competition is? I’ll trick him into telling me their names, then I’ll call them. If this guy feels compelled to mention the competition, he must be losing sales to them. There must be a reason.
Salesperson: “I can get you a really good price right now…”
My thoughts: I was willing to pay the price on the website, and he’s dropping it already. They must be overpriced. I’d better check the competition. Buying one right away from this company would obviously be a mistake.
Salesperson: “I can take 20 percent off the top.”
My thoughts: Something is really wrong here. If he starts with 20 percent, I can probably get 60 percent off, or more. Now that I know he can drop the price, I’ll keep saying no and see how far it comes down.

I called this guy’s competition without mentioning the first company. The competition’s salesperson immediately asked about my needs. She probed, asked questions, established value for her product, and finally got to pricing. When she stated the price, I gasped. (I was trained to do that, weren’t you?) She didn’t flinch or defend, so I asked, “Can you do better on the price?” I tried a couple more times in a couple different ways, but I ended up buying the product at full price. I was happy about the price from the beginning, but I always ask for a better price.

You probably have battle scars from tough clients who beat you up on price. It’s just plain stupid, however, to give in quickly or — heaven forbid — offer deals before establishing value and need. My friend Dave Gifford once told me, “Never, Ever Offer Price Before Value Is Established.” You should tattoo these words inside your eyelids.

Don’t assume your client knows about your competitors. Mentioning your competition only invites your customer to play you against the competition.

If you sell on price from the start, you’ve already lost the game. Word gets around. Get the rate. Be firm. Be willing to walk away. If your customer is haggling on price, 1) you’ve not established value, 2) you’ve failed to fulfill a need, or 3) they’re ready to buy and just fishing for a lower price.

Price is not the most important thing. It’s what’s going on in your customer’s head. Learn their thoughts; then watch your close rate skyrocket.

11/24/03  Radio Ink Magazine. By B.Eric Rhoads

By |2005-02-04T02:56:38-05:00February 4th, 2005|Sales|1 Comment