Peanuts to Profits With Thor Schrock
Peanuts to Profits With Thor Schrock

I just finished placing a component order for my Computer Repair Service Centers in Omaha and Lincoln and I noticed something curious.

Slowly over the past 8 weeks base component prices have been edging higher. For example, each component that we install in a new computer is costing on average between $.40 and $.99 more than it did eight weeks ago.

Specifically, the cost of the motherboards we use in our Modular Computers has increased over $1.40 in the past 8 weeks.

I’m not an economist, but there are a few things that I see reported in the news that could be responsible for the upward tick in component costs:

1. The price of oil and Diesel continues to rise
2. The dollar is weakening against foreign currencies
3. Gold, Silver, and other component hard costs are going up

So far Schrock has been able to avoid paying the cost increases by ordering in larger quantities and aggressively shopping for those vendors who purchased their inventories before the prices started to move up.

No matter who you buy from, eventually this is going to come home to roost on individual consumers.

I am still young enough that I have not experienced sudden and dramatic inflation, but from what I have seen in fuel and food prices and what i am seeing now in our component costs I am starting to wonder if this is the beginning of what may be a significant inflationary trend.

A couple years ago I wrote a post about how to get the best possible deal from your Yellow Pages sales representative.

As the Internet gains more and more influence at the expense of the Yellow Pages, I thought it would be a good idea to revise my old post with the latest and greatest strategies to maximize your Yellow Pages investment.

Go Yellow, Go Web, or Both?

Before the days of the Internet and Google people turned to the yellow pages when a service provider was not top-of-mind. Over the past 10 years use of the yellow pages has been declining as people using laptops, smart phones and computers have turned to online searches for real-time directions, reviews, and pricing – things the Yellow Pages can never offer.

As a general rule (that is becoming less and less applicable after each passing day) there is a generational gap between people who use the Yellow Pages and people who use the Internet when they are looking for a business. Generally speaking, people 40 and younger will turn to the Internet first for information while those over the age of 40 tend to look toward the yellow pages instead.

As a general rule if your target customer is under the age of 40 your advertising dollars might be better spent on a digital medium such as Google or Facebook ads.

Likewise, if your target demographic is over 40 years of age the Yellow Pages can still bring new customers through the door, although the book’s days of dominance are in their sunset years.

Three Ways to Get the Most From the Yellow Pages

If you decide to add the yellow pages to your marketing mix, there are three iron-clad tips you need to know before you sign on the dotted line.

1. Use Your Sales Representative

In some cases your Yellow Pages sales representative is a regional traveler that you will never see again who is only interested in the immediate sale. If your sales representative is a temporary transplant, don’t plan on a lasting relationship.

On the other hand, Yellow Page companies like Dex are beginning to realize that their sales representatives need deeper relationships with individual business owners to maximize annual sales results.

If you are lucky enough to have a local rep, they are probably one person in an office of three or four people. This is an ideal situation for the small business owner. In a small office, a sales representative can negotiate special deals, arrange bonuses and genuinely look out for the best interest of your business.

For example, I recently signed a contract with my DEX sales representative, (Joy Brummer) for my computer repair service center in Omaha, NE. We purchased a full-page advertisement that ensures we will be placed at the very beginning of the computer section of the book.

Joy and I really hit it off. We met a second time for lunch, traded stories about our industries & clients, and Joy really got to know what makes Schrock Innovations’ business engine tick.

Joy felt Dex’s online tools would really benefit our business, but I wasn’t terribly interested. We already dominate the Google search results in Omaha, we will soon have the most prominent advertisement in the phone book. After talking about it for a bit she made me an offer I could not refuse.

She was so convinced that the Dex online product was right for us that she offered us $900 per month of free advertising in DEX’s online yellow pages listings. She said if we like the results, buy it next year. Now that is faith in your product!

It pays to be nice to your sales representative. If you have a local rep, don’t start off your conversation like you are hard-ball negotiating at Kris’ Used Car Sales.

Your gruff and domineering attitude will deeply offend your sales rep. Sales people have a stable of incentives and bonuses they can offer – or withhold – at their discretion.

If you act like a jerk who needs an anger management class she will not give you any of the bonuses she can – even the ones she pays for like a gift card to the local Indian restaurant.

2. Ask for First Time Advertiser Status – Even if you are not one

Yellow pages representatives usually have 2 fee structures. One is designed for new advertisers and the other is designed for repeat customers. Repeat customers actually get charged more, so you want the same rate schedule the new guy gets whenever possible.

Yellow Page sales representatives typically can’t lower the pricing structure unless they are against the deadline with unsold inventory. However, in some cases that can adjust which rate schedule you are given.

For example, Schrock Innovations has been in Omaha, NE since 2003 and we did have a yellow page ad in 2004. Technically we were not a new customer. However, because of the great relationship I have with Joy, she was able to convince her sales manager to give us first time advertiser status.

3. Pay your bills on time.

When you do not pay your Yellow Pages invoices on time it creates a massive obstacle for your sales representative.

“Deadbeat” businesses (those who pay 90-days or more late) and businesses who consistently show they are having trouble paying for their obligations don’t get the best deals from their ales representatives.

Why would a sales manager give a sweetheart deal to a business who is already showing they can’t meet their obligations?

Asking your sales rep to go to her manager for a special deal when you are behind in your payments is asking her to do the impossible.

The bottom line is that playing hardball works when you have a regional representative who doesn’t care about you or your business.

If you are lucky enough to have a local sales representative in a small office treat her with respect. If you don’t you not only poison the well with her, but you also poison the whole sales office. Local people talk, and a local sales office is a breeding ground for “you won’t believe this guy” kind of stories. If you treat one rep badly, getting anything from anyone is the office will be a challenge.

 

While many people think about surge damage during severe weather season, the truth is that surges do not have a season – they attack your equipment all year-round and you need to have surge protectors to keep your valuable electronics safe.

Today I was a guest on KMTV’s Morning Blend show where we discussed real examples of surge damage that Schrock Innovations has repaired in their Service Centers and how you can keep your equipment safe.

Until 4/17/2011 (or as long as supplies last) Schrock Innovations has our Audible Alert surge protectors on sale for 50% off the regular retail price!

Normally these units sell for $60 each, but this week only you can get the peace of mind that an Audible Alert surge protector provides for only $34.99.

We only have 100 of these units arriving on Tuesday. These are very popular and difficult to find in large quantities.

There is no quantity limitation on how many you can buy at the sale price. We recommend getting as many as you need for your home or office, and then one extra to have in reserve.

Contact either of our Service Centers NOW to reserve your units while they last.

Take a Moment to Check Your Surge Protector

In Nebraska the average surge protector needs to be replaced once each year.

The trouble is that you can’t really tell if your surge protector is working for you or if it is worn out and working like a glorified extension cord.

Over time, a surge protector sacrifices its self to block surges. Once the surge protector has taken all of the damage it can handle, surges pass right through it as if it wasn’t even there.

Even if your surge protector has a “protected” light, it may simple be an LED that stays lit regardless of your surge protectors remaining capabilities.

What is an Audible Alert Surge Protector?

Audible Alert surge protectors (only available at Schrock Innovations) take the guess work out of protecting your valuable equipment.

When an Audible Alert surge protector can no longer protect your computer, flat screen TV, or other electronic device it begins chirping like a cricket.

You will know EXACTLY when it is time to buy a new surge protector because it will tell you.

Because you know with certainty when to replace your surge protector, you can use it for a longer period of time saving your money while you keep your equipment safe.

What Features Does the Audible Alert Surge Protector Have?

Aside from the Audible Alert warning technology, this surge protector has some other great features that set it apart from most older models:

* 10′ Shielded cord gives you the length you need
* Right Angle plug lies flat against the wall, allowing you to push furniture all the way back to the wall
* 1040 joules of protection ensure a long life
* 5 regular outlets and three spaced outlets to handle all of the devices you use
* Automatic grounding detection warns you if your outlet is not properly grounded

How Can I Tell if My Surge Protector is Worn Out?

If you don’t remember the last time you purchased a surge protector it is time replace it. Surge protectors cannot heal themselves.

Look for these tell-tale signs of a warn out surge protector when you examine yours:

* Dim, flickering or extinguished power light in switch
* No protected light whatsoever
* Metal bodies or components indicate the unit is over 25 years old
* Thick, heavy dust is a great indicator of “time in service”