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VO Tip #4: Don't do Business with These Folks (since they won't do business with you)

By
Real Estate Broker/Owner with MBA Broker Consultants CalBRE Broker #00983670

I did the math and added up what I spent over the past 3 years at a locally owned car muffler franchise: $3,000.  Wow.  I thought the owners would be happy to "reciprocate" by doing business with me -- their loyal big-spending customer.  Boy, was I wrong!

When I showed them how they could benefit from my legal services plan, they refused to buy my product.  It wasn't because of cost -- my plan is extremely affordable and saves them so much.  And they can offer the plan to their employees at NO cost to them!

What was it then?  Selfishness?  Lack of loyalty?  Ignorance?  No support for local businesses?  None of those.  It was just small-thinking mentality.  That's what was limiting their muffler business, and is probably why they went out of business soon after.

They failed to recongize the impact of Doing Reciprocal Business.

What is Reciprocal Business?  It's merely making an commitment to do business with those folks who do business with you.  It's win-win.  Sometimes known as "you scratch my back and I'll scratch yours."

For example: Suzy sells an insurance policy to the owner of Bob's Bicycles and she earns $200.  She was planning to buy her son a bike for Christmas at a big chain store (X-Mart); but instead, she buys it from her new client Bob.  Although she may have spent $50 more than buying from X-Mart, in actuality she still netted $150 because of the $200 she earned from Bob.  And now Bob will recommend her services to all of his friends, family, and business acquaintances.

Doesn't that just make sense?  Some would call it a "no-brainer".

Doing reciprocal business is NOT:

  • Networking
  • Lead referrals
  • "Buying local"
  • Bartering
  • Exchanging
  • Web site linking
  • Swapping

How will you know if a business owner or professional is open to doing reciprocal business?  Look for these traits:

  • Open-minded (good attitude, willing to listen to their customers)
  • Building their business (not stagnant or going downhill)
  • Desire to work smarter (want to make it a win-win)
  • Enjoy blessing others (not just self-centered)
  • Integrity and honesty (they do what they say they will do)

So, how do you approach business professionals you wish to reciprocate with?  In other words, you'd like to buy their products or services, and you know that they can benefit from yours.  You can say:

  • "I need to buy products; it makes sense to spend my money with companies who spend money with me." OR
  • "I can afford to pay for your service because you bought my product." OR
  • "I'm sorry but I invest my money by doing business with my clients."

After all you ARE investing in others who are investing in you!  That's perfectly legit -- and a savvy business strategy.  Reciprocating is better than bartering, and it sure beats begging for business.  You feel good helping others become successful, while that also fuels your success.

If you work from your home office, join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

Posted by

Regina P. Brown
Broker, Realtor®, M.B.A., e-Pro, GREEN
California DRE # 00983670
www.CalCoastCountry.com

                

Text copyright © 2011-2018 R.P. Brown, All Rights Reserved

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Dormanekia (Alex) Walker
Exit All Seasons Realty - Queens Village, NY
Realtor - Queens Village And Saint Albans NY

Regina you are a God sent I just became a part of the AR community and i came across your blog so far everything I have read seemed like you were speaking directly to me. You have provided me with information for questions I didn't know who to ask Thank You and Keep UP The Good Work

Alex

Nov 25, 2008 07:39 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Alex, thank you and God bless you for your encouraging comments!  I believe that our God-given gifts are to be shared with others.

I've been self-employed for over 20 years and compiled my experience into a handbook.  It's called the "Work From Home Guide" and I haven't published it yet.  Until then, I'll keep pulling tips from the manuscript and posting them.  Glad you and others can benefit!

Regina P. Brown
www.reginabrown.allisonjamesinc.com

Nov 25, 2008 08:04 AM
Randy G. Morley
The Home Brokers, Inc. - Colorado Springs, CO

Excellent thoughts Regina and I agree wholeheartedly,.. how many dollars do each of us spend every year without a hope of ever seeing any of it coming back our way??

Great Point

Nov 29, 2008 02:54 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Randy, you're right.  Sometimes we are so busy trying to buy "cheap" that we don't think about the long-range implications of our purchases. 

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

Nov 29, 2008 03:07 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Allison or Regina:  What a great idea for a post... to actually write about reciprocating... doing business with those who do business with you.  It is something very easy to do.  So easy... that it's something easily forgotten.  Thanks for bringing it up to me again.  Take care...

Nov 29, 2008 05:05 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Karen, you are right, it's easy to do... and also easy NOT to do. 

;)

Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Regina P. Brown
Allison James Estates & Homes
www.ReginaBrown.AllisonJamesInc.com

Nov 30, 2008 04:54 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Regina:  Sorry... but when I made my comment, I referred to you as Allison.  You are Regina... correct ?  And yes, I joined your group.  Also... thank you very much for adding yourself as one of my Associates.  :)

Nov 30, 2008 06:22 AM
Mott Marvin Kornicki
Waterway Realtors® • Notary Public & Apostille - Sunny Isles, FL
Miami Notary & Apostille 786-229-7999

REGINA:

I FEEL WHAT YOU ARE SAYING AND WOULD FEEL THE SAME WAY. IT IS NORMAL TO DO BUSINESS WITH OTHERS THAT YOU DO BUSINESS WITH. ONE HAND WASHES THE OTHER.

I AM GOING TO REBLOG, THIS SUBJECT IS RIGHT UP MY ALLEY AT THIS MOMENT.

Sep 26, 2010 05:30 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Mott. please go ahead & re-blog.  We can all learn the value of loyalty! 

Sep 26, 2010 10:26 PM