Leadership #2

How to handle ebay issues and possibly save your sale...

Leadership coaching, lesson #2

...also contained in this lesson: My unit is bad

and I want to transfer to another group.

This page contains suggested responses to questions and issues that come up.

In some cases you might use these answers word for word, but by no means would that be right in every case. Leadership is an art, not a science. Some Giddens answers will be too strong in a given situation. Some will not represent your point of view. You have to decide.

The top leadership of EcoQuest -- starting with Mike Jackson -- has a responsibility to help "shape" your thinking. But Mr. Jackson does not ask his field leaders to be slaves to his ways. True leaders think for themselves.

To decide how to deal with a certain issue, you have to know your people. You have to know as much as possible about EcoQuest. And you must know yourself. What can you offer to a man or woman who is having a stressful day? Some leaders can give hands-on help. They can roll up their sleeves and get involved. Other leaders will send a written response. Other leaders can offer X, Y, or Z, depending on their means and circumstances.

ISSUE: I lost a customer to eBay.

...I can't stay in business if my customers are going to jump online and find a lower price.

POINT #1 (always be sympathetic) - I certainly understand how you feel. We all lose customers to eBay, and there are several areas where I may be able to help you.

POINT #2 (enforcement) - I think you know that the company has a full time person who works to shut down illegal websites and get people off if eBay. We have spent over $200,000 on legal support, we have sued people, we have kicked dozens of people out of EcoQuest, and we have won judgments in some cases. We can never stop every criminal but please understand that the company is on your side.

POINT #3 (warranty) - You can inform people that the company invalidates the warranty on any machine that is sold over eBay. A statement to this effect is posted on eBay or read the warranty information at this EcoQuest link - http://www.ecoquestintl.com/eqwarrantypg.htm.

POINT #4 (used or defective equipment) - You can inform customers that when they buy on eBay or through other illegal sources they run the risk of getting used or defective equipment.

POINT #5 (practical, common sense) - As unpleasant as it is, every company loses business to the Internet these days. It's kind of like shoplifting. If you want to be in business, you have to know it's going to happen. Fortunately, only a small percentage of customers ever go to these black market sources. I agree that if you lose two in a row it feels like 100%, but companywide it's probably no more than 2% or 3%.

POINT #6 (long range outlook) - Presidential Master Manager Bob Giddens has earned seven million dollars in ten years. His group has lost thousands of sales to illegal websites and eBay. If he had shut down his dealership after 50 losses, he'd have given in to a petty problem and lost a multimillion dollar career.

POINT #7 (stay cool) - As frustrating as it feels right now, I want you to stay cool for a minute and think this through. So what if you lost a sale? It feels like $250, but that's what happens in business. Sometimes, the customers who search the web for better deals would have turned the product back to you and asked for a refund in any case (they'd have found some other reason).

POINT #8 (learn to listen) - A frustrated person will rarely be ready to absorb all of the above explanations by listening to you do a monologue. It turns into overkill after one or two points. Your best bet: Choose a couple of responses that seem right in a particular situation, then STOP TALKING and let your person talk himself or herself down from his anger.

POINT #9 (use www.chippynews.com) - Tell them about this link. Let them read as many of these answers as they want. You should come back to this link every now and then to refresh yourself.

POINT #10 (remind them of their goals) - Why did you join EcoQuest? This is one of those frustrating things that happens to a business person. Keep your eye on your reason for being in EcoQuest. Don't lose sight of your dreams. Turn this experience into a lesson.

POINT #11 (ask them to quit) - Some people find trouble wherever they go. If this is the fourth complaint you've heard in a week from one guy, maybe you should say: "Bill, the eBay thing is going to cost you a sale every now and then. I don't think you've been 100% happy with EcoQuest. Maybe this is a sign that it's not a good business for you. That's about all I can say."

POINT #12 See material in green and blue fonts below...

ISSUE: My unit is bad.

...I paid $xxx and the darn thing is not working.

PROLOGUE - Some people have been through 50 units and have never had a significant problem (be fair: a tiny little defect here and there does not count). It's the same with cars. Some people get a lemon; whereas most are really satisfied (EVERYONE has a few tiny issues, which are fixed or forgiven without mattering). The answers we offer are to be used in appropriate situations. As a leader, you are the one who determines what is appropriate and what is not.

I have always been comfortable talking about problems because I see problems as a normal part of life and business. When someone comes to a Success Institute and I am serving as a trainer, one of my goals is to prepare them for the problems they will face. Problem SOLVING and problem ANTICIPATION are of major importance. Problem DENIAL (denying to yourself that problems exist or lying to others about problem situations) is the beginning of death. You may not handle problems as directly as Bob Giddens does, but you'd better handle them.

I don't mind telling a new recruit about the eBay issue. I do this with serious people, not with every single one. It goes like this:

"Carl, I want to alert you to something that will happen in maybe 1 out of 20 sales. This is more of a problem with strangers and less likely with friends, but I want you to be able to handle it when the time comes. Someone will search on eBay for air purifiers. He'll find a whole array of products, including ours, and the prices will be lower than you are asking. Sometimes he'll confront you with this discovery; at other times he'll buy from eBay and tell you he isn't interested. There are a number of ways to counter this. One is to match the eBay price. You would say, 'Carl, it is against the company rules for a dealer to sell through eBay. So the eBay vendors are not mainstream EcoQuest dealers. The unit they ship might be defective and the company warranty is invalidated when our products are sold that way. But I certainly understand what price shopping means. You've found a low price and I know you are wanting to get the best price. So I have a policy for handling this when it comes up. I'll match the eBay price and add $25 as a fair compromise. You'll save the risk that an old or damaged unit will be shipped to you and your warranty will remain intact. All I ask is that you do not send your friends to eBay. If I sell a unit to your neighbor I'd like to make the profit I need to run my business. Is that a fair proposal?' You'll win some and lose some. Please read the additional ideas that follow.

POINT #1 (always be sympathetic) - I certainly understand how you feel. You are completely right. I will see that we provide you with a reliable, working product.

POINT #2 (trade for a working unit) - I have a unit working in my home that's about the same age as yours. Why don't I just bring over this good one and I'll take the problem unit off your hands. The company will fix it, but it will take a couple of weeks. Is that solution okay?

POINT #3 (new components) - We repair kits for some models -- and, actually, the units are sometimes upgraded. I can order a kit from the company and have them sent to you. If you or your spouse are somewhat handy with a screwdriver I will send you $20 for making your own repairs.

...I paid $2,500 (Success Pack situation)! This is the third machine that's bad.

POINT #5 (this is what I call a HORROR STORY -- treat it as such) - Mary, I am so sorry this is happening to you. First, I want you to know I'm going to get it solved. Will you let me help you through this?

POINT #6 (Customer Service) - Mary, let me call Customer Service and do some of the dirty work for you. I know how frustrating it can be. Do you want to listen while I talk to them?

POINT #7 (humor) - Bob Giddens said at a Success Institute that Mike Jackson sends every dealer 3 bad units to test their problem-solving skills. You were just lucky to get your test so soon! Are you going to be able to pass this test?

...How is the company going to handle this when too many people have bad units? (emerging leader has concerns)

POINT #8 (teach some leadership!) - Jim, I'm glad you're concerned about this because it tells me you are a leader. The company is at fault, but in our 19-year history we have never left a customer in the lurch. Many times the dealers have stepped in and bailed out the company by fixing a problem with a customer. The company has now made huge new commitments to design, manufacturing, and quality assurance issues. We will not be making shoddy equipment in the future! That's the key comment I can make. I am sorry about a bad unit you might have received. We'll fix it, and, in come cases, we will use the company trade-in system to upgrade an old unit to a newer unit.

...I've heard the "We're going to do better" argument before. Why should I believe them this time? (old time leader has concerns)

POINT #9 (leader by example) - Henry, this issue is under control but not perfect. Our new alliances with Wein, Inc. and RGF, Inc. have led us to better science and better products. We have half a dozen major new employees, including a manufacturing expert, a quality assurance expert, and a water products expert. We have turned the corner.

ISSUE: I want to transfer to another group.

POINT #1 (always be cool) - "This comes as a surprise ... and transfers are not usually permitted when a person has been both active and supported. Have I done something to offend you?" (This is a difficult and stressful issue to confront. Any time you hear these words you immediately know that something has been brewing in the background that you were not aware of.)

POINT #2 (stake your claim without being offensive) - "Betty, I consider you to be a valuable dealer and someone with potential. I wouldn't expect my child to call and say he wants a new mother. What has brought this on?" (Listen carefully to the story. Get the facts straight. Determine if this is your dealer's idea or if some outsider has encouraged it.)

POINT #3 (face reality immediately) - Most people who ask for transfers have already made up their mind. You have the right to deny the transfer, but ask yourself immediately is this is someone you have alienated or ignored. After determining where the dealer wants to go, you might ask, "Is John Doe willing to compensate me for taking me from your group?" (Maybe 1,500 PV can be ordered in your name by John, so you are compensated.)

POINT #4 (if your position is firm, state it) - "Chris, I strongly believe in the integrity of the network. If you were being denied support I would consider transferring you. But you have had access to meetings, newsletters, conference calls, and personal support. I'd also consider transferring you if your mother had joined another group and you wanted to align yourself with your family. That, I could relate to. But I won't approve a transfer just because you think John Doe is more dynamic than I am or anything like that."

POINT #5 (approve the transfer but keep the downline) - If you've worked in depth below this person, you MAY have built a relationship with one or more of the downliners. You may be in a position to say, "Dale, I've worked with Bill Jones and we have a very good relationship. I'll transfer you but you'll lose Bill. Is that okay with you?"

POINT #6 (suggest a trade) - "Does Mr. Smith have someone of equal value that he would be willing to transfer to me?" (Sometimes two or three insignificant dealers can be horse traded for one good one -- just like they do in baseball; the people being swapped must be contacted and evaluated.)

POINT #7 (approve it) - If the person requesting a transfer is someone you haven't spoken to or heard from in six months, what's the big deal?

POINT #8 (consider the people in between you and the person requesting the transfer) - Your reaction to a given situation often hinges on other people (active or inactive). "Tom, I know you haven't done EcoQuest for the better part of a year. Perhaps for that reason, Jane Smith has felt abandoned and now she is asking to be transferred to another group. I'm willing to let her go but you do have some rights -- especially if you are thinking of getting involved again. Do you want to call Jane?" (This wakeup call might get Tom back into the fold even if he loses Jane.)

POINT #9 (learn from this experience) - How many other people are feeling abandoned in your group? Do you have a newsletter system through which you stay in touch? Do you call or email everyone in your downline every now and then? Do your inform your inactive people about hot events and new announcements? Do you say the right things when you recruit people? Are they aware of our conference calls? Of the Giddens newsletters? Of the Success Institutes? Of your services?