How emotions AFFECT YOUR BUSINESS DECISIONS
Why do entrepreneurs make emotional decisions? Arguably the world’s leading expert on emotional decision making, Antonio Demasio, whose TED Talk has had more than one million views, has found that people who have damage to the part of their brain that controls emotions have difficulty making even the most basic decisions: what to wear, what to eat, etc. Therefore, all decisions involve some level of emotions.What we need to ask is “how” rather than “why” emotions affect our decisions. It’s easy to recall those moments when strong emotions swayed our decisions, usually in a bad way. Most decisions made when we’re angry or upset have negative implications—the ones you wish you could take back. Scientists say we tend to focus on negative consequences, rather than positive. These seem to take root more deeply in our memories, and we use negative memories to make current and future decisions to try to avoid those same consequences. EMOTIONS, PRICING, AND NEGOTIATINGSince many if not most of you reading this own or run a small business, your personal and business identities are closely connected. When someone questions your pricing or tries to get a discount, many people react emotionally, as if it’s an attack on your value. While that’s a common reaction, it’s a little misguided. When you’re the customer, don’t you want to have the best quality and service and the right price? You don’t want to overpay. You want to know that someone else isn’t going to come along after you and pay less for the same services. THE POWER OF "NO"“No” is a powerful word. Clients have the right to ask for a better price. You have the right to say, “No.” Don’t deny them their right to ask. They won’t know that they have your best price until you say, “No.” Taking offense at the asking is the emotional part, but when you look at things differently, you can make a better, more definitive decision. HOW DO YOU SAY, "NO"?Show them you still want to work with them: “I appreciate you asking, and I know that you want to know that you’re getting the best price for the services you want and need. You also want to know that someone else isn’t going to pay less for those same services. That’s why I don’t negotiate my rates. Everyone gets the same price for the same services, because you all want, and deserve, the best quality and service.” NEGOTIATING VS. DISCOUNTINGIn most cases, I prefer a policy of discounting, not negotiating. Discounting is when, based upon a predetermined set of products, services, or conditions, there is a discount available. For instance, if someone buys your lowest package or service, there is no discount available. But if they buy more, for instance, a higher package, there is a discount built-in versus buying those same services individually. If people can buy more than one of your products or services, you may decide to offer a volume discount. However, anyone else buying the same things, would get the same discount.Negotiating is like the Wild West, with different people paying different prices for the same services or products. The challenge is that people talk. Unless you’re prepared to defend giving one customer a better price than another for the same things, negotiating is a slippery slope. It actually is empowering to remove negotiating from your business vocabulary. When you know you can’t give them a better price, defend the value instead of the price. You can say, “No,” and mean it. Just say it nicely. AND IF THEY INSIST...How do you tell them, “No,” when they keep asking? “If price is the most important factor when choosing your (venue, photographer, band, DJ, planner, etc.), then I’m probably not the right fit for your wedding. Couples like you don’t choose us because we’re the cheapest. Couples like you choose us because they want to trust one of the most important days in their lives, to someone who’s going to deliver everything they want, and more—someone who’s going to go above and beyond to make their wedding a success. That’s what we can, and will do for you, just as we do for dozens of other couples, every year. If you read our reviews, you won’t see them saying, ‘I’m glad they were the cheapest.’ They’re saying ‘Our wedding was better than we ever dreamed it would be.’” EMOTIONS AND REVIEWSIt’s not hard to see how emotions come into play with reviews. When you get a really good review, you feel great. When someone says something that’s not as favorable, you feel bad. People often take it as a personal attack, even when they aren’t mentioned by name. Suffice it to say that you need to take a step back, consult someone who’s not emotionally connected to it, and then do the right thing. TAKE A DEEP BREATH...Above all, don’t respond when you’re upset. Don’t click “Reply” until you’ve taken a step back, analyzed the situation, and understand the consequences, current and future, of your actions. Trying to prove that you’re right, is trying to prove the customer wrong. Any time you try to prove a customer wrong, you lose. Often you need to swallow your pride and make the right, long-term decision. How would you counsel a good friend to respond if it were their business? Don’t fight your emotions, embrace them. Trust your emotions to guide you to success. Just understand that there is a right time and platform for your decisions. Learn from your past decisions, and you’ll learn to do the right thing. WPM__Alan Berg, CSP®, www.AlanBerg.com, Kendall Park, N.J.