Tuesday, May 27, 2014

What your Financial Adviser is not telling you about the Budget - 2

What your Financial Adviser is not telling you about the Budget - 2
.
In recent televised interviews of the Australian Treasurer discussing the Budget,
there has been an overwhelming response on Twitter and other Networks saying,
"How can the Government maintain my Lifestyle ?".
Are Financial Advisers in Australia partially responsible  for this
type of 'Government dependancy' based discussions,
by promoting 'tax loophole' strategies which create the idea
that it is the Governments role to maintain my current lifestyle ?
.

Very few Financial Advisers are asking,
'Who is going to pay the Taxes to keep the Baby Boomers
  in their Government dependency lifestyle ?'
.

.
The current Budget is a huge WAKE UP call
for Baby Boomers in Australia .
.

.

Sunday, May 18, 2014

3 Reasons Why Solution Selling will take you to the Top

3 reasons why Solution Selling will take you to the Top
.
If I were to ask almost any Salesperson,
"Are you selling Products or Solutions ? ",
nearly every response would be to say Solutions.
But the reality of customer experience with Salespeople
tells the opposite story.
I have found that barely 1 in 100 of those in any form of Sales Profession
are actually selling Solutions to Customer problems.
The other 99 think that their primary role
is to ask the Customer 'what do you want',
and then to act as an order taker.
.

.
1) The Customer does not know exactly what they want .
.
    The realisation that the Customer does not know what they want,
    despite what they may say,
    comes as a huge shock to those in Sales or Retail
    who have been erroneously taught the wrong Sales Techniques.
    .
    The following Mantra is followed without question by Salespeople,
    not realizing that this concept is the cause of bad Customer Service.
   
    'The Customer is always right, the Customer knows everything,
     the Customer knows exactly what they want'.
.

.
     This argument that the Customer knows what they want
     is most infuriating to the prospective Customer
     who is making an enquiry in the New Car Sales field.
     I am regularly told the following by New Car Sales Managers,
     "Well in New Car Sales almost all of our Customers
       come into the display area knowing exactly what they want.
       They've been up all night searching the Internet."
.

      .
      Of course in some areas of specific technological products,
      the Customer may search the Internet for specific mobile phone deals,
      as an example.
      But this does not mean that the Customer does not
      need a salesperson to assist with problem solving.
      New Car showrooms now usually display several different brands,
      whereas in the past it was just a Ford or GMH showroom .
      The increasing variety of choice of Car Brands,
      and the overwhelming amount of contradictory information on the Web,
      does not relegate the role of the Salesperson to Order Taker Status.
      The Customer may walk into a display room with a preconceived idea
      of what type of Car Brand A they want to purchase,
      and at what price.
      This same Customer could then be seen to be driving Car Brand B
      out of the showroom 1 hour later for a test drive.
      The Salesperson obviously asked the 'Internet expert' customer
      what their needs were,
      and matched them to the more expensive Car Brand B.
.

.
      The next example of this is the Customer who insists on a Home Loan from Bank A,
      because they have spent much time on the Internet searching for which Bank
      can give them the best deal.
      When that Customer is then explained the benefits of Wholesale Rate Home Loans,
      they then immediately change their mind to obtain a discount,
      and to receive better customer service .
.
2)  Buyers are sceptical of Sales Marketing Hype
.

     Most Salespeople talk about providing Solutions,
     but then never uncover what are the real needs of the Customers.
     For example, the following is often stated in Sales Hype,
     "We can provide Solutions for you Mr Customer,
       we are Solution Sellers not just order takers,
       now what is it that you want mate ?"
.

.
      Whilst the above pitch sounds like Solution Selling,
       it will actually produce scepticism in the Buyer.
.

       In reality Solution Selling asks questions to uncover needs and problems firstly,
       and then goes on to create the Solutions required.
       You cannot provide an effective Solution,
        until you first correctly diagnose exactly what the problems of the Client are.
        What would you think of a Doctor
        who in your appointment did not bother to try to identify your problem ?
        But instead asked you what you wanted,
        and expected you to create your own diagnosis and prescription.
.

.
        Yet this is the way the vast majority of Salespeople
         treat their Clients .
         At the same time when the salesperson is
         questioned about this flawed selling approach,
         the salesperson then  insists in their defence,
         that they are selling Solutions and not just products.
.

.
3) Creating Solutions will attract Clients to you .
.
    To attract Clients you need to have a highly developed Problem Solving Technique.
    This is easier said than done, because if it was simple to do then every Sales 'Jack'
    would already be doing it.
    The issue is getting the Client to first admit what the problem actually is.
    Your Doctor cannot help you in a diagnosis if you have a 'soldier-on' attitude,
    and refuse to admit that you have pain in your stomach, as an example.
.
     In Real Estate Sales this is of paramount importance in the Sales process.
.

     If the Client is believing all the hype about "Property Market Recovery",
     they may not be willing to accept a realistic Price reduction of their home,
     so as to ensure the Sale,
     and prevent the Home being listed for more than 120 days.
.
     If you cannot get the Customer
     to acknowledge that there is any kind of problem firstly,
     then the Solution that you provide will not be taken seriously.
     Picture a situation where you are asked to sell Parachutes
     to passengers on a plane flight.
.

     Nobody would pay any attention to your Sales Pitch,
     until you mentioned that there was a 50% chance the flight could crash.
     Suddenly everybody on that flight would be interested in buying a parachute,
     because the reality of their problem has been clearly presented to them.
     In Mortgage Sales the Client is not going to recognise they have a problem
     with their Home Loan,
     until it is explained how much they are losing
     by not accessing Wholesale Rate Loans.
.
What are the most common objections to Solution Selling from Salespeople ?
.
I often hear this statement in feedback from Salespeople ,
"Look , I am Selling Solutions to my Clients ,
  but the problem is that they are not buying my Solutions,
  I need to go back to plain and simple Product selling,
  this is all too hard and I don't really understand what your talking about,
  I'm not clear as to why we need to talk about Solutions anyway,
  we should just show the product to customers and let them make up their own mind,
  after all the Customer always knows what they want ."
    
.
.
For Queensland Enquiries Phone John Maxwell +61 0432 379 203
.
 

        

Thursday, May 15, 2014

What your Financial Adviser is not telling you about the Budget

What your Financial Adviser is not telling you about the Budget
.
We have all heard of 'Climate Change Sceptics',
but there is another insidious group of cynics,
the 'Baby Boomer Bust Sceptics'.
.

This Boomer Wave Sceptics group denies that the overwhelming evidence
of the Baby Boomer Retirement Tidal Wave
is having any real effect upon our Economy .
.
.
The above Graph shows the Demographic of the number of people turning 65 in Australia every week . We can see the dramatic increase between 2001 and 2029. By 2025 nearly 6,000 people will be turning 65 every single week, and this is why the current Government wants to raise the Retirement Age to 70.
.
 
.
1) Why are some Financial Advisers not warning their Clients about the coming Baby Boomer Retirement Tidal Wave ?
.
It is much easier to deny the reality of the above Demographic, than to try to create a Solution for Clients to survive this Retiree Wave. The fact is that Australia's population is ageing, and this rapidly increasing age group require pensions, and healthcare and other entitlements. The Baby Boomers will be renowned as the most selfish population segment in history, because most are only concerned about their entitlements, and have little regard for how their children and grandchildren are going to pay for their Retirement Lifestyles.
.
 
.
The Baby Boomer Bust concept is known as a 'Hot Potato' amongst some Financial Planners, so very little effective financial strategies are created to assist clients to deal with the Boomer Wave problem. By denying the problematic nature of the Retiree Demographic, nothing has to then be done to provide a Financial solution for Clients. "Baby Boomer Crisis, what crisis ?" has been the mantra of the Boomer Sceptics amongst Advisers, which has led to the paralysis of  any effective discussion of Economic programs to counter the effects of this huge issue. This demographic of Boomer Retirees is similar in Australia , New Zealand and the UK . However the USA is better positioned to deal with their 77+ million Baby Boomers because of their constant intake of new migrants.
 .
.
Would you like to discuss financial strategies to beat the effects
of the coming Boomer Tidal Wave ?
Phone Alpha Finance Strategists +61 0423 585 932 .
.
.
.
.
.
.
.

.
.
Disclaimer -
This article is not meant to be taken as financial or investment advice .
Before making any financial decisions consult with your Accountant
or appropriately qualified Financial Adviser.

Monday, May 5, 2014

What are the pitfalls of Home Renovation Loans ?

How to use your Home Loan for renovations - 1
.
Would you like to renovate your Home ?
If you are looking at updating your kitchen, or bathroom,
build a house extension, or do some extensive Do-It-Yourself repairs,
you may need to take out a Loan to achieve your renovation plans.
.
.
Would you like a new kitchen like this ?
.


If you want to use the equity in your Home Loan,
you should be careful to avoid redraw pitfalls.
.
One of the major dangers with drawing on your equity
is not creating a Clear Goal before starting your project.
.

An example that sometimes occurs is a Homeowner who decides to redraw $50k
to renovate their bathroom.
When the Home Loan is about to be drawn down for this purpose,
an uneducated Mortgage Broker suggests to the Householders that they should
'Consolidate their Loans' to save interest charges,
by using part of the $50k.
As a result of the Householder not having a clearly defined goal,
they then get sidetracked with the Broker's suggestion,
and only use $25,000 on the bathroom ,
and the other $25,000 to consolidate personal loans and Credit Cards.
.

.
The problem with this confusion of purpose
is that the $25k left over is not enough to pay for all the expenses of the new bathroom .
Hence the original purpose of the Loan increase has been dissipated,
and valuable Home Equity has been wasted on 'Loan Consolidation'.
Mortgage Brokers who irresponsibly recommend this type of
confusion of purpose have not been educated by the
Alpha Professional Development Webinar Program.
.
Would you like deal with a Mortgage Adviser who assists you
to achieve your Home Renovation Goals ?
.

.

Phone Craig Holme on 0423 585 932
.
Adelaide - Ashford Business Centre - Jeremy Reynolds 0402 905 818
                                                         
.




.
Craig Holme Consulting
.