July 2024

3 Benefits of owning an Exit Factor franchise:

1. Niche market focus with specialized exit strategy coaching.
2. Flexible lifestyle with the ability to work from anywhere.
3. Comprehensive training and ongoing support for franchisees.

Exit Factor is a business coaching and consulting franchise that specializes in training small to medium-sized companies to enhance their value and prepare for a successful business exit. Founded by industry expert Jessica Fialkovich and part of the United Franchise Group, Exit Factor offers a low-cost opportunity with multiple revenue streams in the growing business services market. Click Here to learn more about Exit Factor.

Key Facts:

• Minimum Initial Investment: $59,415 – $82,345
• Initial Franchise Fee: $39,500
• Liquid Capital Required: $100,000
• Net Worth Required: $250,000
• Veteran Incentives: 10% off franchise fee

People reports that Chiefs star Travis Kelce just attended his 13th performance of Taylor Swift‘s The Eras Tour, and the significance of that number is lost on no one.

Swift is a big fan of the number 13 — so much so that before every show she paints a 13 on her hand for good luck. Why are those digits so near and dear to her heart?

Swift was born on December 13, 1989, and explained in an interview with MTV News: “I turned 13 on Friday the 13th. My first album went gold in 13 weeks. My first No. 1 song had a 13-second intro. Every time I’ve won an award I’ve been seated in either the 13th seat, the 13th row, the 13th section or row M, which is the 13th letter. Basically, whenever a 13 comes up in my life, it’s a good thing.”

Swift isn’t the only one who leans into superstitions to give herself an extra boost of confidence. In the book Recipes for Good Luck, author Ellen Weinstein researched the superstitions and rituals of some of the most famous and successful people in modern history. And while some might seem odd or silly to others, Weinstein writes that beliefs, rituals and routines can “help you face the world with ambition and confidence and inspire you to go on making good luck of your own.”

Here are some other superstars who used pre-performance rituals to get ready to go.

• During his playing days, NBA superstar Michael Jordan wore UNC shorts underneath his Chicago Bulls uniform. They were the same shorts he wore in 1982 when he scored the winning jump shot that brought his college team, the University of North Carolina Tar Heels, their first NCAA championship since 1957.
• Tennis great Serena Williams has several distinctive pre-performance and on-court rituals: before a match, she’d tie her shoelaces in the exact same way and always bounced the ball five times before her first serve and twice before her second.
• Before beginning the opening monologue of her former talk show, Ellen DeGeneres would be sure to throw a mint in the air and catch it in her mouth.
• Rihanna has said that she doesn’t allow anything yellow in her dressing room before a show, believing it is bad luck.
• Soccer legend David Beckham has a thing against odd numbers. His wife Victoria told The Chicago Sun-Times that their house had several refrigerators, each devoted to different types of food. “In the drinks one, everything is symmetrical,” she explained. “If there’s three cans, he’ll throw one away because it has to be an even number.”

Austin Russell is a Stanford University dropout who became the world’s youngest self-made billionaire in 2020 at the age of 25 when his startup Luminar went public. Luminar creates sensing technology to help cars navigate their surroundings; Volvo, Toyota, and Mercedes-Benz use the sensors.

Russell, now 29, spoke on the Masters of Scale podcast with Will.i.am on Wednesday about how he got rich at an early age. Russell, who had a father in real estate and a mother who did some modeling and public speaking, says he was 100% self-taught and created a lab in his parent’s garage at the age of 10 or 11.

“[My parents] would always joke, oh you just let Austin do his black magic in the garage and slip food under the door,” Russell said.

He said he always wanted to know how and why things worked, and explored that curiosity from a young age.

Russell began focusing on optics and lasers in his home lab at 13; then, at 17 years old, he worked at UC Irvine’s Beckman Laser Institute. He decided to focus on entrepreneurship, instead of the tenured professor route, because he wanted to create innovations with immediate real-world impact.

Related: How to Start Your Dream Business This Weekend, According to a Tech CEO Worth $36 Million

Russell founded Luminar, where he’s also the chief executive, at age 17 to build sensors that would make driving safer. He graduated high school, went to Stanford for a few months, then dropped out after receiving a $100,000 Thiel Fellowship to build his idea over two years.

His goal with Luminar became more ambitious: to save as many as 100 million lives and 100 trillion hours over the next 100 years. An April report from reinsurance company Swiss Re shows that progress towards that goal is being made — Luminar’s software reduced car accident severity by as much as 40%.

“I think the way that you ultimately apply and scale yourself has to be through some kind of business and some kind of endeavor at the end of the day,” he said.

^{Luminar founder Austin Russell. Photo by Taylor Hill/Getty Images}

Russell said he benefitted from the wealth of information online, including lectures that previously would’ve been available only to graduate students. He claims to have once watched four years’ worth of lectures on the technical subjects he needed to know “in less than a month.”

Related: Billionaires Warren Buffett, Bill Gates, Jeff Bezos and Mark Zuckerberg Have 3 Habits for Success in Common — But Very Different Routines. Which One Resembles Yours?

“You can do it,” he said. “There’s nothing stopping you.”

Russell has an estimated net worth of $1.6 billion, though Luminar’s stock price has dropped by about 40% year-to-date. Possible causes could be a highly competitive market and a small number of customers that drive a large chunk of the company’s revenue.

He’s also no longer the world’s youngest self-made billionaire; 27-year-old MIT dropout and Scale AI co-founder Alexandr Wang now holds the title.

How many people do you know who are “born leaders“? I can’t think of too many. The old saying about natural leadership is mostly wrong. Yes, there are people who are blessed with qualities that will take them into positions of influence; they may be naturally outgoing or creative.

But most times, it is something that is worked on and mastered over years until the leader becomes so skilled everyone thinks they’re a natural — like an entertainer who becomes an “overnight sensation” after decades of plugging away in the smaller corners of show business.

Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.

Stepping up

This ‘born leadership’ myth keeps many talented people from taking charge and making valuable contributions to businesses and organizations. Too many employees think they need to have a formal title to take the lead on a project and don’t believe they possess what it takes to be tapped for that management spot.

But unappointed leaders show up every day and should be encouraged to do so. Both employees and managers should realize that leaders can succeed without formal authority. Here is how informal leaders can rise to the top and how their managers can help them:

Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’

Become someone people want to follow

Instead of declining when someone asks you to take charge, start saying yes. Volunteer to help others when you see opportunities. If you are afraid of looking pushy, present it as a benefit to the boss or team leader, not for yourself. “Can I take that off your plate?”

Even formal leaders need willing followers. Offering to help other team members achieve their goals creates goodwill and gives them the sense that you’re not out for yourself — a quality too few “real” leaders have. When your boss looks around for someone to put in charge, you will be top of mind.

Related: Why Taco Bell’s New Boss Says He’s ‘Not the Dictionary Definition of a CEO’

Set an example

The first rule of leadership is “lead by example.” If you’re just giving orders, you’re doing it wrong. The secret is to show, not tell. That means working alongside the team so your behavior can be easily modeled.

Remember, if you want to take the lead on a project when you’re not technically running the show, second-guessing and criticizing the person in charge is no way to move up. It’s wrong, and you may live to regret the payback if you do ultimately get placed in charge.

Related: This Pizza Chain Will Pay You to Become a Small Business Owner — No Money or Experience Required

Recognize potential leaders

Some people are happy just being on the team, doing their work without the stress of administration or responsibility for others’ progress. There’s nothing wrong with that. But almost everyone has a moment when they can contribute to a leadership role — and should be encouraged to do so.

Managers should always be on the lookout for employees who can shine as leaders even when they’re not in charge. Look for demonstrated leadership behavior in the ranks, such as employees who offer good ideas for projects, are trusted by co-workers and actively support your company’s mission and goals. If you have a new initiative, these employees may help you get other workers on board.

Related: Popeyes Is Going Global — And Its Secret International Recipe Is Helping the Brand Sizzle Here At Home

Decisions and accountability

Decision-making is a critical skill and it doesn’t come naturally, it takes practice. Whenever an employee comes to you or their supervisor for an answer, turn the question around and have them offer what they think the solution is. Make them think.

Power can go to someone’s head and turn a formerly cooperative team player into a bossy authoritarian who’s quickly losing friends on the staff. When you see that happen, pull them aside and ask them how they would feel if someone treated them like this. Sometimes, just opening their eyes to a problem makes people want to change; other times, you may have to be more direct.

Related: From Coding to Creole Cooking — Here Are 5 Inspiring Success Stories of Black-Owned Franchises

Have faith

Every organization has untapped leadership potential within their teams, often in unexpected places. You may be one of those people who shies away from it, thinking it’s just not one of your skills. Once you realize it’s not something you’re born with but can be developed with practice, you may want to start working on it.

Bring a positive attitude as you work to become a trusted leader. Your attitude is one of the most important characteristics you can get across to others in any capacity, but especially as a leader. Having a positive attitude with everything you do will take you far in life and in business.

In 2004, Wade Brannon was coaching his son’s T-ball team when another player’s mother asked, “You’re the ham guy, right?”

Well, he was the ham guy: He founded Heavenly Ham, built it up to $150 million in revenue with more than 200 franchises in 33 states, and then sold it to Honey Baked Ham. But by 2004, his role was Mr. Mom, caring for his 5-year-old boy and younger twin girls while his wife worked as a real estate attorney near their Atlanta home.

Parenting was rewarding but hard; his son had what he believes were sensory issues (common among young children), which made some tasks tricky. “I took him to my barber shop, and he screamed the whole time,” Brannon recalls. “Both of us would leave sweaty with hair stuck all over us.”

The T-ball mom, whose name was Nanette Adair, happened to have a solution for that: She’d opened a kids salon called Pigtails & Crewcuts, and Brannon had just taken his son there. “He just loved it,” Brannon says. “He was watching movies, playing with the train tables, interacting with other children.” So when Adair said she had some questions about franchising for Brannon, he was very intrigued.

After a few meetings, in late 2004, Brannon bought Pigtails & Crewcuts from Adair. The company now has more than 80 franchise locations and aims to reach the 100-unit mark by the end of this year. Here, he talks about how to build a local business into a thriving franchise.

Related: He Began Selling Insurance to the Hispanic Community in the 1970s. Now His Family Owns a National Franchise With a Smart Strategy.

How much of the Pigtails & Crewcuts model was in place when you bought it?

It was a single salon here in Atlanta, had a federally registered trademark, and had a look and a feel. I got some of my old ham folks back together, and we spent the next year-and-change putting the systems in place.

Hair and ham are different industries. What made you think it would work?

There were two primary things I looked at. I asked if there was a need — which I believed there was, given my son’s reaction once he experienced it. And then I asked: Can it be replicated? Can it be copied and executed properly by the average person with business sense?

How did you go about replicating the service?

We had to get a design package that could be recreated everywhere. We had to write operations manuals. We had to write franchise agreements and franchise disclosure documents. I talked to a lot of people in the hair industry. I didn’t realize how big the hair industry was until I started looking at this. Goodness gracious, it’s a $65 billion industry. But nobody had taken the children’s segment of it and turned it into a national brand.

What kinds of franchisees do best with your brand?

We have had a lot of women with 2-year-olds. They have a child and they feel like they’re ready to get back into the workplace, and they approach us. We also have a lot of husband-and-wife teams. We’re not targeting hairstylists. We’re targeting businesspeople with people skills. You’ve got to want to work with a team, be a part of your community, enjoy people — children and parents.

What advice do you have for would-be franchisors?

You’ve got to be flexible. Markets change. Conditions change. Everything changes. We went through a recession and found out our business was recession-proof. We went through a pandemic that completely shut us down for entire periods of time. You’ve just got to have a product or a service that can survive the difficult times that are unanticipated. You have to be ready to change.

Related: The Real Cost of Franchising Your Business

Corcoran Group founder and “Shark Tank” star Barbara Corcoran knows how to run a tight ship — but she also knows when to relinquish control.

The 75-year-old real estate pioneer and entrepreneur took to Instagram on Wednesday to share advice on hiring and delegating.

Related: Barbara Corcoran: All ‘Really Successful Entrepreneurs’ Do This

First, she says, embrace your inner “control freak” — it’s part of the job.

“Anybody who’s a good boss, I’ve learned, is a control freak. It just comes with the territory, and control freaks have a heck of a hard time delegating,” Corcoran explained. “They’re the last people who want to give away what they do so perfectly.”

Corcoran says in order for your business to grow, though, it’s important to find someone who can do the job 80% as well as you can. If you find a candidate who can do that, invest in them to “build your business and move it ahead.”

Corcoran said she goes through a three-question litmus test before hiring someone to create a strong pool of employees.

Related: Barbara Corcoran Issues Statement, Warning on NAR Settlement

“I ask myself, ‘Are they happy? Do they work hard? Are they talented people in one regard or another?’ And if they are, I hire them, and I delegate something to them that’s above their pay grade, above their talent pool, so they have to reach and show me how good they are, and that’s how you develop talent,” she said.

“It’s not just a matter of delegating, it’s a matter of developing talent, and then delegating to the talent,” she added.

Corcoran’s net worth is an estimated $400 million.

In my first month as CEO, I sat down for lunch with a few customers. To say I learned some things is an understatement.

Those customers saw a lot of promise in our tech, which was working for their business. But by talking to them in person, we discovered some changes they could make to help them use the software to its full potential.

In other words, it was a moment that every new CEO lives for. As a brand-new CEO, you have a valuable window into the business — a chance to see things with fresh eyes and make real changes. But it doesn’t last forever.

I’ve recently experienced this firsthand. After a two-year hiatus, I was reappointed to the CEO position at the POS and payments platform I founded, tasked with putting it on the path to long-term, profitable growth.

My situation is unique as a returning founder, but the same basic principles apply to anyone who assumes a new CEO role. For those stepping into the job, here’s how to seize the “fresh eyes” moment.

Related: A Step-by-Step Guide to Achieving Organizational Alignment

Before you do anything, listen

During my time away from the CEO role, I worked in environmental conservation. And if there’s one thing I learned working alongside those who aim to solve complex global problems, it’s to listen first. Hear people out, gather information and collaborate on solutions.

The same goes for a new CEO, who must start by building trust. As a returning founder, I had an advantage in that department. Still, there are many new faces and voices since I stepped away.

So, how exactly should a new CEO listen?

Don’t go in with an agenda that predisposes you to tune out tough questions and concerns. Instead, emphasize that you want to hear them, whether it’s about what’s not working from a product or strategic direction or low employee engagement. People should perceive you as looking at the business with a critical eye, under no illusion that things are perfect.

For example, when Oscar Munoz took over struggling United Airlines in 2015, he began his successful turnaround with a cross-country listening tour, talking to mechanics, baggage handlers and flight attendants. I took a similar approach. Right away, we held a leadership offsite so I could spend time with each member of the executive team and talk to employees.

I also did customer visits in Australia and New Zealand, where I met folks who were the ideal profile for Lightspeed and listened carefully to the common threads that emerged.

I listened to board members and shareholders, too. Getting their outside perspective was valuable for understanding not only how the market perceived our business but also how we could continue to drive value in their eyes.

The temptation might be for a new CEO to storm in, guns a-blazing. But this initial listening phase is priceless. Across industries, companies are looking for CEOs and other executives with strong listening skills. And the upside can be dramatic. Organizations that listen to and act on employee feedback are three times more likely to meet or exceed financial goals and 10 times more likely to have high customer satisfaction and retention.

Remember, just telling people you’ll listen isn’t enough. The whole point is to hear from multiple perspectives and then work with your executive team to build a plan that brings rich solutions together. Then, you have a small and urgent window to take action.

Don’t miss your chance to act

For a new CEO, one of the biggest advantages is having a runway to redirect the business, and it’s important to show follow-through on that in the first 90 days.

I didn’t return to the CEO role to be popular. Yes, I can still be an empathetic, compassionate, caring leader. But ultimately, it’s a CEO’s job to be effective, not to be liked.

When a new leader is brought in to transform a company, it’s essential to live up to that responsibility, even if it sometimes means doing unpopular things. Listening has to be a prelude to action, or else it’s an empty gesture.

After taking over as CEO of Microsoft in 2014, Satya Nadella saved the tech giant from irrelevance by quickly shifting focus away from software sales to cloud services. Thanks to that and other dramatic changes, Microsoft became one of the world’s most valuable companies.

Sometimes, this requires throwing out certain long-held company traditions and practices. Before I returned, one of our annual traditions was a sales summit that flew people to our HQ from all over the world. We adjusted the format — making it virtual — and created a ton of operational efficiencies in the process.

Getting everyone together made financial and business sense back in the day when the summit drew a couple of hundred people and helped us build our culture. But I could no longer justify such a big expense if it didn’t benefit customers directly.

Studies show that when a new CEO makes changes early, they can have a compounding effect on the business. What happens in the first 90 days or so sets the stage for the company’s trajectory over the next three to five years.

And people expect their leader to take action. For employees, decisiveness is one of the top three qualities of effective leadership, a global survey found, with CEOs described as “decisive” 12 times more likely to be high-performing.

Related: How to Align Business and Customer Interests for Long-Term Success

How to know when it all comes together

Of course, none of this is easy to pull off. A new CEO’s early days are full of potential pitfalls.

For starters, their arrival can be destabilizing for team members. People have different levels of tolerance for change. Especially when such changes are significant, it’s important to show empathy by acknowledging that they might not be easy.

A new leader should also respect the achievements of those who helped build the company. Here, a little humility goes a long way. I’m grateful for the difficult work my predecessor did. After all, he set us up for future success by making tough operational changes.

Ultimately, seizing the “fresh eyes” moment as CEO is about mastering the balance between appreciating what made the company great and making the necessary changes.

How do you know when you’ve got it right?

When people say they feel aligned with the business — and when you feel aligned, too. That doesn’t mean there’s complete agreement. But after seeing each other’s point of view, everyone is on board with a plan to move things forward. There’s energy and excitement to push in a new direction. And there’s a sense that this builds off the input and hard work that came before.

Getting all this right requires a new leader to make the most of their fresh eyes moment: taking the time to listen first, then acting sooner rather than later.

Early on in elementary school, Maria Washington’s son was struggling to sit still and pay attention. “His teachers wrote him off,” she says. “They said he’s not capable of this, or this, or this. They were telling me he wouldn’t amount to anything.”

But the Washington family disagreed. Maria’s husband, Aaron — her son’s stepfather, and a former adjunct chemistry professor at the University of South Carolina — started tutoring the boy. They soon discovered that he learned better with visual prompts, so they tailored a plan to his needs. By the end of fifth grade, “My son’s teacher said he should move into general education classes,” Maria says. “He finished with all A’s.”

So when the Washingtons decided to start a business, it was Aaron’s success with tutoring Maria’s son that drew them toward the education franchise Tutor Doctor. “We thought we could duplicate our experience for other families,” Maria says. Their location in Evans, South Carolina, opened in 2022, and served just 37 clients their first year. In 2023, they were up to 195 clients and had tripled their revenue. Here, Washington talks about tapping into government resources and the unmet needs of her community.

Related: She Worked Hard to Become An Engineer, and Didn’t Want Her Degree to Go to Waste. Then She Found a Franchise That Was the Best of Both Worlds.

How did you triple your business between year one and year two?

In year one, the focus was on the individual families and learning more about the Tutor Doctor model. I’d also just had a newborn and was learning to juggle an infant and the business. But my husband had spoken with someone who mentioned there was federal money out there that schools had access to, through the Emergency Assistance to Non-Public Schools (EANS)program. So I registered our business as an EANS provider in South Carolina and at least seven other states, so we could gain visibility with the schools.

Then in January 2023, I received a call from a private school that enrolled about 50 students for services. I had another school reach out over the summer to request one-on-one tutoring for about 30 students. Establishing partnerships with schools is what really got us the growth.

When you scaled up that fast, what challenges did you encounter?

The main challenge was recruiting high-quality tutors. I had to become more selective. I asked more behavioral interviewing questions, which was a game changer. My process now includes an interview with a dedicated tutor recruiter and then 45 minutes with me to review a PowerPoint presentation that I designed to ensure all applicants understand the requirements of this position and the impact we intend to have on our families.

How has owning a franchise impacted your life?

I have the flexibility to design my schedule. I can take my kids to doctors’ appointments. I can have lunch with my first-grader at school. I can take off to go see my son’s swim team. I don’t have to miss these key events. Then I can come home and work from 10 o’clock to midnight to get payroll processed.

What other areas of potential growth do you see for the business?

We want to offer tutoring services as an HR benefit for large companies. Everyone has kids, grandkids, nieces, and nephews. Maybe the company pays 50% and the family pays 50%. I realize it’s something that hasn’t been done before, but I like to do new things. If we can get a larger company to offer tutoring support as an HR benefit, that would be massive.

And your son? How is he doing?

He’s in eighth grade, and he had five A’s and two B’s — and two of the courses were high school credit courses. He is now an independent learner. That’s our goal with all our families. A lot of our success stories no longer need tutoring.

Related: The Role and Responsibilities of a Franchisee, Defined

Talk about a Philly special.

While some business leaders push for a four-day workweek or enact hybrid office shifts following a change in workplace preferences after the pandemic, Philadelphia Mayor Cherelle Parker has doubled down on the traditional — by requiring all 26,000 city workers to return to the office five days a week, effective Monday.

Related: This Country Just Implemented a 6-Day Workweek for Employees

The new ordinance was signed on Friday by Judge Sierra Thomas Street. Unions in the city pushed to delay the new mandate but were met with opposition.

It’s estimated that 80% of Philadelphia city workers are already working on-site five days a week.

“July 15th, in the middle of the summer, people are scrambling, trying to find childcare, trying to find summer camps,” April Gigetts, president of District Council 47 in Philadelphia, told NPR.

Parker claimed that the decision was made for the city of Philadelphia and its government to “create a more visible and accessible government, a city government that our residents can see, touch and feel.”

Chief Administration Officer for Philadelphia, Camille Duchaussee, said that the decision was not made due to lack of productivity, but rather based on an overarching “leadership” strategy.

“We want to ensure that we continue to build on the culture and experience that’s positive in the workplace,” Duchaussee said, in a statement. “We understand that work from home is something that our employees were taking part in, but we all have a shared purpose and our workforce is committed to the shared purpose.”

Philadelphia is the first major U.S. city to enact such a mandate.

According to ZipRecruiter, the average hourly wage for a city worker is $22.84.

Related: Philadelphia Eagles Christmas Album No. 2 Behind Taylor Swift

Philly isn’t alone in cracking down on working time frames for city employees.

Earlier this month, Greece enacted a mandate that required a six-day workweek for employees working for private business and manufacturing plants that operate 24 hours a day, including certain retail and agricultural workers.

True story: Recently, my daughter was at a major brand car dealership with her boyfriend, intending to purchase a pre-owned car. Note I made up the numbers for the sake of my daughter’s financial privacy, but the takeaways are still the same.

The dealership asked for, let’s say, $26,000 “all in” for the car, but my daughter had already decided that $20,000 was the most she would pay. There was a lot of ground to cover to actually make a deal happen. After some discussion, the salesperson did his best, dropping the price to $25,000. But that still left a big gap, so he told her, “Let me go check with my manager and see if he has any ideas.”

After five minutes, the salesperson and his manager entered the room together. The manager explained that at $25,000, this was a great price; it was already well below their MSRP, and the deal was “very thin” as it was for him. He then used the famous line, “Okay, here’s what I’m going to do to get you into this car today.” The manager pulled out a piece of paper with revised numbers that showed his price now at $23,995. He explained to my daughter that this was the absolute best possible price. He was “all in;” this was his “best offer,” and he told her to take it or leave it. For the grand finale — keeping in mind that this is a 100% true story — the manager took out a big red ink stamp and smacked it down on the paper. The stamp read “FINAL” in bold red ink. $23,995. FINAL.

My daughter responded, “Thanks, but I’m sorry; it looks like it’s not going to work out.” Without hesitation, he immediately blurted out, “How about $22,500?”

When my daughter told me the story, I had a wonderful laugh. After the big show, the manager held his price for a full six seconds. And the idea of the red final stamp just made the story even better. But the more I thought about it, the more I realized there’s actually quite a lot to unpack here regarding sales tactics, psychology and effectiveness.

Related: 3 Unconventional Sales Tactics That Will Close More Deals

I’m not in the car business, and I’ve never sold cars, but I can see some familiar sales tactics (and mistakes) playing out here:

Playing the waiting game

All this went down after my daughter had spent hours on the lot. It was getting late in the day on a Saturday, and the manager knew she was hoping to get it done. At some level, the manager was wearing her down and playing out the clock, playing the “waiting game.” It didn’t work in this case, but often, this notion of using time as a weapon can be very effective. Utilizing time as a strategic element in the negotiation process can be effective, but it must be used carefully and respectfully. Pushing too hard on time constraints can backfire.

Closing the deal by changing the sales lineup

When the salesperson reached his personal negotiation line or felt he would lose her, he brought in his manager. In addition to adding some time to the clock, this step created a new opportunity for a new dynamic. The dealership never really wants a potential buyer to walk out the door, so if one person doesn’t get the job done, it’s always worth trying someone else. Involving a manager or company administrator in the negotiation process can create new dynamics and opportunities for closing a deal.

Proposing your best and final offer

Although I laughed hysterically when I heard about the red stamp, I soon realized it was actually a smart move. Once upon a time, I’m guessing some sales and marketing people sat in a room, and someone said, “I have an idea — let’s make a red stamp that says final and use that during negotiations.” Everyone probably laughed, and they would have said, “No, I’m serious!” And then everyone thought about it and agreed, as funny of an idea as it was, it actually made sense. It’s one thing to tell someone something verbally, but when it’s “official” and in red ink on paper, it’s human nature to believe it and take it as indisputable. Using psychological sales tactics to create a Fear Of Missing Out (FOMO) effect, such as a “Final Offer” stamp, can be effective in conveying seriousness and finality, but you have to honor your word, or you will likely lose credibility.

All the tactics I outlined above were smart, but here’s where I think the dealership dropped the ball:

Trying a shutdown move too soon

The manager came in cold, and rather than take some time (again, time is on their side) to talk about the value, create some alignment, and build some rapport, he went straight for the kill. That tactic may work, but I felt it was too aggressive. He would have been better off discussing the pain points and goals concerning the product, coming up with some extra incentives, etc. Understanding the customer’s needs, discussing the product’s value and building rapport and trust can be crucial in successful sales.

Related: How to Master Your Sales Success — Why Every Answer and Rejection Matters

Putting an out-of-reach offer on the table

The manager decided to go for the close in a fairly aggressive way. In some cases, that tactic makes sense. But he played it all wrong with the numbers. He knew they were a full $5,000 or 20% off, and he decided to put it all on the line at $23,995. Obviously, given how fast he dropped another thousand, he had plenty more room. If he was going for the hard close and “FINAL” offer, he should have made it more compelling. By putting on the big show and then immediately dropping his price, he completely lost credibility and lowered the odds of closing. In this case, he lost my daughter’s trust and the sale. In negotiation, it’s important to understand the other party’s budget and limits before making an offer. Being aware of their constraints will increase the likelihood of closing a deal.

Saying your offer is “final” when it’s not

If you offer something of value at a good price and tell them it’s “final” (which I personally don’t recommend as a sales tactic), then stand by it and mean it. Your word has to mean something. Once he realized his “final” price was not going to work, rather than lower it, he could have thrown in some additional valuable incentive, perhaps some amount of free service or some kind of special financing. If a “final offer” is presented, standing by it as your final word is essential. If adjustments are needed, they should include additional incentives or value to maintain trust and credibility.

Sales is an art, no doubt about that. A great salesperson builds a relationship, asks questions and listens, understands the client’s pain points, is honest and transparent, and operates with integrity. Of course, strategies, techniques, incentives, and a lot of human emotion and psychology are at play, but all of them can happen successfully without losing your credibility.

So, the overall moral of my story? Choose wisely before using the big red stamp!