23. Dealing with customers

Good customer service plays an essential role in building a network of loyal customers who will return to your business and will recommend your business to others. A good business will try to minimize customer complaints through good customer service.  However, establishing compliant handling procedures can lead to turning dissatisfied customers into loyal customers and provide feedback that can be used to improve your business.

In negotiating with customer the most important thing is to be very well prepared.

That is, understands the buyer’s expectations and also you should know how far you can go to reach a compromise both sides are happy with. If the salesman and the customer know and trust each other, the salesman can do business more quickly.

To be a good listener and a bit of psychologist is ones??? of the main skills that a good salesperson needs. He needs to de able to recognize the buy “signs”. For instance, when the buyer starts to talk about possible delivery dates? Or specific schedules, the salesman can take the initiative and close the deal.

If the customer is quiet, the salesman can put some obvious holes in his presentation which will get the customer to ask a question he cans to answer. Aggressive customers are insecure so you reassure them and make them think they are the boss. Things go better after that. Confrontation and losing your temper lead absolutely nowhere.

But, everyone in business has to deal with an upset customer. The challenge is to handle the situation in a way that leaves the customer thinking you operate a great company. If you’re lucky, you can even encourage him or her to serve as a passionate advocate for your brand.

When it comes down to it, many customers don't even bother to complain. They simply leave and buy from your competitors. To prevent this the salesman should listen carefully to what the customer has to say, and let him finish, repeat back what he is hearing to show that he has listened. Put himself in customer’s shoes. The customer needs to feel like you’re on his or her side and that you empathize with the situation. Apologize without blaming. You ¹need to immediately answer the complaint and solve the problem. It may be to give money back, exchange a product or do some repair.

To make sure the customer is completely satisfied, some companies will provide some special service or a reduced price on another product. This is done to assure the customer will come back for more business. Many retail stores have a generous return policy to satisfy dissatisfied customers.

24. Corporate Mergers

One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies - at least, that's the reasoning behind M&A.

This rationale is particularly alluring to companies when times are tough. Strong companies will act to buy other companies to create a more competitive, cost-efficient company. The companies will come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.

In the pure sense of the term, a merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. For example, both Daimler-Benz and Chrysler ceased to exist when the two firms merged, and a new company, DaimlerChrysler, was created.

A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly - that is, when the target company does not want to be purchased - it is always regarded as an acquisition.

One size doesn't fit all. Many companies find that the best way to get ahead is to expand ownership boundaries through mergers and acquisitions. For others, separating the public ownership of a subsidiary or business segment offers more advantages. At least in theory, mergers create synergies and economies of scale, expanding operations and cutting costs. Investors can take comfort in the idea that a merger will deliver enhanced market power.