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Transcript of NZ Sales Manager Issue 35
NZ’s e-mag for sales leaders
NZSALESFEBRUARY 24th 2010 / IssUE 35
GET SALES FIRING in 90 Days
SELLING BuSINESS VALuE To SENIoR ExEcuTIVES
Reward or PUnIshmEnt?
A thIRst to ExcEL
Uncover moRE oppoRTuNITIESARE you oNE oF ThIS
wEEk’S wINNERS?SEE INSIDE!
MID STRENGTHFULL FLAVOURFULL LIFE
nZsm / FEB 24th 2010 / 3
FEBRUARY 24th / IssUE 35
ThIS wEEk'S muST READGET SALES FIRING IN 90 DAyS3 Easy things you can do right now
SELLING BuSINESS VALuE To SENIoR ExEcuTIVES how an account planning process can help you.
RESouRcE coRNERwhAT ThE cEo wANTS you To kNow the basic building blocks of a business explained in clear simple language.
REwARD oR puNIShmENT? Performance meaurement that help your salespeople to sell.
NZSm cALENDAR
Two mINuTE Top-upA ThIRST To ExcELKeep yourself on track to achieve results.
SALES TRAINING DIREcToRy
QuIck FIxIt’s not what you sell, it’s how you sell.
ThE cLoSE
10
5
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ARE you oNE oF
ThIS wEEk'S wINNERS? SEE INSIDE!
nZsm / FEB 24th 2010 / 4
ABoUt /
short and sharp, new Zealand sales
manager is a free e-magazine delivering
thought provoking and enlightening
articles, and industry news and
information to forward-thinking sales
managers, business owners and sales
professionals.
EDItoR / Paul newsom
ARt DIRECtoR / Jodi olsson
GRoUP EDItoR / trudi Caffell
ContEnt EnQUIRIEs /
Phone Paul on 04 586 4733 or email
ADVERtIsInG EnQUIRIEs /
Phone Richard on 09 523 4112 or email
ADDREss / nZ sales manager, C/- Espire
media, Po Box 137162, Parnell,
Auckland 1151, new Zealand
WEBsItE / www.nzsalesmanager.co.nz
It was good to receive some of your
comments on the articles in our first
issue of the year. Referring to the
interview with David Larsen, and the point
David made about their success being down to not competing
with each other, one reader says, “I remember as a junior
salesperson complaining to my manager that a team mate
had cannibalised my sales underhandedly and I actually said
‘Why are we competing with each other when we have real
competitors out there, we should be helping each other?’ I was
scoffed at, so this is great to see someone so successful stating
that as a reason for success.”
Fortunately I have never worked for a sales team who were competing with each other over customers. I wouldn’t have stayed long if we were. the right kind of competition is healthy, but I wonder how many sales teams are self destructing because team members are
competing against each other. I’d be interested to receive any other experiences or comments you have on this. In this issue we welcome a new contributor, Ian segail, who has some timely advice for sales managers with three things you can get started with straight away to fire up sales in the next 90 days. As a young sales rep I wish I had a sales manager who used strategy 1 – I would have learned so much faster!
And whether you are managing the sales or doing the sales, try the ‘post it’ note exercise in strategy 3 – it can be an eye opener! Giveaways in this issue include wine, books and an nZ sales manager leather compendium. Look inside to see if you are a winner and claim your prize, or to enter the draw.
Paul
nZsm / FEB 24th 2010 / 5
t h I s W E E K ’ s m U s t R E A D
Ian segail is a leading authority on sales strategy and sales management, and works as a strategic sales Performance Coach with both novice and experienced sales managers across a wide variety of industries and selling disciplines. Find out more at www.iansegail.com
Get Sales Firing in 90 days
3 Easy things you can do right nowBy Ian segail
there is no question that in these economically
uncertain times, sales leaders will need to get smarter
if they are going to keep and grow their existing
customer base. their people will need to be a whole lot
more shrewd if they are to win the few opportunities
available. that being said here are three fundamental sales
management strategies that, when implemented, will help
generate sales traction within the next 90 days.
Easy Strategy #1Your first strategy will seem so simple and so easy that you
are bound to say to yourself “Is that all there is to it?” Don't
be fooled. Whilst the strategy below may seem simple, when
done, it delivers some amazing results. so don’t ponder the
why's and where for's, just get on with it!
It has been proven that, when effectively applied, the
practice of regular one-on-one sales performance coaching
is the fastest and most effective vehicle to drive sales
productivity and thereby revenue. one-on-one sales
performance coaching is a powerful, time-tested, behaviour-
changing, sales acceleration strategy and is the foundation
on which permanent and consistent growth in your sales
business is built.
Coaching is one of those absolutely critical skills that you must
develop if you ever want to achieve maximum output from
your sales team. Whilst there are many different processes and
skills you need to get proficient with to be an effective sales
performance coach, there are two activities that you can apply
that will have an immediate impact to your sales drive.
nZsm / FEB 24th 2010 / 6
the only skills required are those of asking good questions
and actively listening to the answers, both of which you
already have if you are reasonably successful at selling. You
can apply these two practices immediately to begin getting
traction with your people. here's all you need to do (and
by the way even if you only do a half way decent job, you'll
begin to see improvement).
sit down with each of your salespeople either in person
or by phone, ABsoLUtELY no LEss thAn onCE A
FoRtnIGht.
Depending on the state of your sales pipeline, you may need
to ramp that up to once a week. During your one-on-one
time together conduct an:
1. In DEPth review the week/fortnight just gone.
2. In DEPth plan the week/fortnight coming up.
that’s it, that’s all, that’s the lot! I told you it was simple.
however as with most simple things, because they’re easy to
do, it’s just as easy not to do them.
what does in depth mean?In depth means just that. You need to unpack the week
that the salesperson has just completed. As an example,
when prospecting for new business opportunities either
with existing customers or new prospects, your salespeople
must complete some primary due diligence and be able to
answer some or all of the following questions before even
fronting up or making the sales call. By having answers to
the questions below will afford them the best opportunity for
success. Your job in coaching them in depth is to ensure that
before they invest their time and your money going to see a
prospect, they are extremely well prepared. Imagine if you
asked your salespeople some or all of the questions below
before a business development call.
“so you are going to see Bob at ABC Co....”
What have you learned about ABC Company? •
Who are all the “key players”? •
What does your research tell you about the critical issues •
that ABC may be facing right now?
What is the evidence that they are facing these issues? •
Is there someone other than the key decision maker you
can confirm this with?
What do you believe the potential impacts of those •
issues to be?
What are their current constraints in solving that issue (in •
relation to time, people, money)?
Do you know of any current work-around in place that •
might keep them stuck and unwilling to change?
What issues are the users of their current system facing?•
What is our answer for solving the issue? •
What are the current market trends in their area? •
What do we know about other companies that operate •
in the same space as they do?
What are ABC’s key strategic initiatives? •
how may we be in a position to help them? •
What questions do you have prepared to elicit needs? •
how do you plan on positioning the company and what •
it is we do?
What information should you bring back from your visit, to
move this opportunity to the next stage of the sales pathway?
What is the objective of the sales call?
this list is by no means exhaustive. It may have left out issues
specifically relevant to what it is you sell. However, it is a
great start. Create your own pre-call strategy checklist and
ensure that your salespeople are well prepared prior to their
next sales call.
that is what I mean by in depth! Can you imagine just how
much better prepared your sales people would be to take
advantage of the opportunities out there with this kind of in-
depth probing?
think about how many of your salespeople have empty diaries
waiting for them to turn on their voice mails and emails to
determine where they should invest their time that week.
turn your salespeople into proactive producers by working
alongside them to plan the week/fortnight coming up.
If you follow this simple practice for the next ninety
days, you will start to see traction you have only ever
fantasised about.
In depth means just that. You need to unpack the week that the salesperson has just completed.
nZsm / FEB 24th 2010 / 7
Easy Strategy # 2Look for sales closest to the bull’s-eye. Imagine standing front
on and facing the circles of a target. Imagine the bull’s-eye.
Right there in the middle is where the money is. the circle
just outside the bulls-eye represents your existing customers,
let call them A’s. they are the ones closest to the money. the
next circle represents those customers that have bought from
you occasionally, let’s call them B’s. the circle just beyond
the B’s are your C’s and they represent those prospective
companies you have targeted but have yet to buy from you.
then outside of your C’s we have the D’s. these are prospects
we have yet to consider.
once again, as simple as this practice may seem, it is
often neglected. When we need more sales, where do we
go looking? It's a sad truth that too many salespeople go
searching out there in D, E, F, and G land.
It’s important to start looking for business closest to where
the money is. Your best sales opportunity is to expand your
influence within your A and B customers’ organisations
and earn a higher percentage of their business. According
to the latest Cso Insights sales Performance optimisation
Report only 33.6 percent of C.S.O’s (Chief Sales Officers)
interviewed were able to farm additional revenues from their
existing customer base.
Your role as sales manager is to help your salespeople
identify where you have previously left money on the
table. What are the opportunities with your A, B and C
companies? How can you expand your influence with
them? how can you get them to buy more, more often?
Can you pick up some referrals from them? Go work
there! Let your marketing department figure out how to
educate, trouble and inform the D, E, F, and G targeted
prospects. Let marketing come up with and implement the
strategies to move the D, E, F, and G targeted prospects
closer to the bull’s-eye.
By the way, if you’re once again thinking that this is too
simple or that you already do this, then let me pose a
challenge for you. take any of your A, B or C accounts and
ask your people to answer the questions listed above in Easy
strategy #1. I guarantee there's work to be done there. have
your people renew old relationships. have them beat the
bushes for new opportunities you have yet to capture with
your A, B and C customers. these customers live closest to
where the money lives.
Easy Strategy #3Go to work and re-engineer your current sales process, if
you have one. If you don’t, then get one! the latest research
from the Cso Insights sales Performance optimisation
Look for sales closest to the bull’s-eye. Imagine standing
front on and facing the circles of a target. Imagine the
bull’s-eye. Right there in the
middle is where the money is.
nZsm / FEB 24th 2010 / 8
Report shows that 'process-centric' sales teams continue
to outperform non-process-centric teams for every
measurable metric.
sales team performance and effectiveness has been shown to
increase by as much as 40 percent when sales teams have a
clear, proven sales process visible to them. the chances are
extremely good that if you currently have five salespeople on
your team, you will have five different sales processes going
on all at once. What other part of your business runs on
multiple different processes? Imagine running your business
with half a dozen different accounting processes, or multiple
It or customer service processes? sounds silly doesn’t it? Yet
in sales we do this all the time.
Re-engineering your current selling process is not for
the faint-hearted. It may be advisable that you bring in
professional expertise to ensure the greatest success. You
may just be too close to your own current sales methodology
to see the gaps or dysfunction. having said that, here's a
powerful exercise to complete at your next team meeting.
Firstly get your sales people to write out the steps of how
they sell on a sticky note. one note per step. this exercise is
itself illuminating, just to see the differences and gaps.
then step two, as a group try and identify the steps your
buyers go through when selecting a vendor.
Lastly, try and align the way you sell with the way your
customers like to buy. Look for the gaps and build in systems
and processes to bridge them.
so there you have it. three practical ideas you can
implement right now to get sales firing again. Start right away
and watch your sales production start to flow again.
Re-engineering your current
selling process is not for the
faint-hearted.
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Where: Wellesley Hotel, 2-8 Magginity St, Wellington When: Friday 12th March, 8.55am—5.15pm
nZsm / FEB 24th 2010 / 10
tony hillyard specialises in giving sales teams around the world smart solutions to help them win more business in difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information.
In the last issue we looked at why
salespeople need to engage senior customer
executives in business-based discussions
before any solution to a business problem
has been specified and why they can often
struggle with this fundamental sales task.
we now show you how to resolve this using
a well structured Account Development
plan that salespeople will be motivated to
keep current and dust free.
how An Account planning process can help youBy tony hillyard
Selling Business Value to Senior Executives
nZsm / FEB 24th 2010 / 11
T he Account Development Cycle
Develop a High Level Goal
Identify Key Objectives
Determine Key Strategies
Critical Action Plans:
1. Opportunities
2. Account Maintenance
3. ‘Engineer’ Value & Create New Opportunities
4. Relationships
5. Discovery
Assemble the Account Development Plan
Review & Test the Plan
Collate & Analyse Account Information
Implement the Plan
Generate New Revenue & Create New Relationships
Build Revenue
Growth Goal
Estimate Resources
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
keeping the Account plan dust freeLet’s begin by taking a close look at the Account
Development Cycle. this is a six-step planning process
which enables a salesperson or an account team to identify
the key business issues facing their customer; make the
connections to their products and services and then develop
initial benefit statements and value propositions linked to
those business issues in order to provide a focus for planned
activities and meetings with
senior customer executives.
A comprehensive information
gathering stage is followed
by critical analysis of what
has been learned about the
customer. salespeople should
use a variety of standard business
analysis tools to achieve this
e.g. strengths, Weaknesses,
opportunities and threats
(sWot); Value Chain Analysis;
Physical, Economic, social,
technical (PEst) analysis; Boston
square etc. these well-known
planning tools and others like
them allow the salesperson to
identify the critical business initiatives that their customer has
in place to address major business issues. Links can then be
established between the customer’s key business problems
and the salesperson’s products and services that could
be used to help the customer with their critical business
initiatives. As we have shown in the previous article, these
initiatives will almost always command executive attention,
particularly in their early stages.
A long-term vision for the account is then developed along
with its supporting objectives. the process directs the
salesperson to select a strategy for achieving these objectives
and to detail relevant activities to execute the chosen strategy
in the short- to medium-term. this ensures that the strategy is
kept current and alive.
Five Critical Action Plans (CAP) detail 90-day activities that
have measurable and achievable objectives in the most
important areas of account management. these are designed
to help the salesperson with their day-to-day account
management tasks and create the momentum needed to
execute strategies to achieve longer-term, high-level goals
and objectives. The first of the Critical Action Plans focuses
on current sales opportunities within the account and this
can be used for sales forecasting.
A long-term vision for the account is then developed along with its supporting objectives. The process directs the salesperson to select a strategy for achieving these objectives and to detail relevant activities to execute the chosen strategy in the short- to medium-term. This ensures that the strategy is kept current and alive.
© the sales Academy Ltd. July 2004
nZsm / FEB 24th 2010 / 12
cRITIcAL AcTIoN pLANS:cAp 1 current opportunity Sales planLists all the ‘active’ deals that the salesperson is currently
working on with this customer. It should also contain
complete sales Campaign Plans for any opportunities that
are significant in terms of size or strategic importance.
cAp 2 Account maintenance plantackles the most common areas that can cause problems
between customer and supplier, e.g. damaged relationships,
pricing, contracts, invoicing, delivery, implementation and debt
management. salespeople need to show the activities that they
will undertake to resolve any problems in these areas.
cAp 3 New opportunity planCreates the activity plans and sales calls for the new areas
of business uncovered in the analysis section of the Account
Development Plan. Where possible they should be based
around identified Customer Value Propositions.
cAp 4 Relationship Building planDefines the status of relationships with key executives for this
customer and creates activity plans to build or improve on
each relationship.
cAp 5 Information Discovery planDetails all the important pieces of information that the
salesperson still requires and shows the activities required to
get the information.
These five Critical Action Plans keep the Account
Development Plan current – and dust free!
© The Sales Academy Ltd. All Rights Reserved. July 2009
the six-step Account Development Planning Process
builds a separate estimate of the total revenue potential
for the account. this should include the current revenue
streams, if any, as well as the value of the current ‘active’
sales opportunities, and the value of any new potential
opportunities identified by the analysis section of the planning
process. this is not intended to be used as sales forecast,
but allows the sales team and sales management to balance
potential returns against a realistic estimate of the resources
required to make the Account Development Plan work.
Finally, the process commits the salesperson (or
account team) and sales management to review and
test the completed Account Development Plan, before
implementation, to build internal support and commitment
to its major objectives.
When used thoughtfully and with genuine sales management
support, a well-structured Account Development Plan can
provide a salesperson with the appropriate business insight
and, most importantly, the confidence to engage senior
customer executives in discussions about real business
issues early in the problem resolution phase. this allows
the salesperson to differentiate solutions that are based on
customer value early in the decision cycle, thereby gaining
real competitive advantage.
A well structured Account Development plan can provide…..the confidence to engage senior customer executives in discussions about real business issues early in the problem resolution phase.
nZsm / FEB 24th 2010 / 13
what the cEo wants you to know (using Business Acumen to understand how your company Really works)
R E s o U R C E C o R n E R
What the CEO Wants You to Know explains
in clear, simple language how to do what
great CEos do instinctively and persistently:
Understand the basic building blocks of a business and
use them to figure out how your company makes money
and operates as a total business. then decide what to
do, despite the clutter of day-to-day business and the
complexity of the real world.
many people spend more than a hundred thousand
dollars on an mBA without learning to pull these
pieces of the puzzle together. many others lack a
formal business education and feel shut out from the
executive suite. What the CEO Wants You to Know
takes the mystery out of business and shows the
secrets of success used by business legends like Jack
Welch of GE.
Author: Ram charan publisher: crown publications
$38.95 from Fishpond
nZsm / FEB 24th 2010 / 14
salespeople love having their performance measured –
yeah right! sales people love submitting sales reports.
Right on! Is your sales process measurement a reward
system or a punishment system?
the number one motivator for salespeople is making a
sale. Just look at their faces when they walk into your office
waving an order or a cheque. they are on a real high at that
moment. then they go on to the next prospect and get a
knock-back, then another. the spark dies and the target starts
to look unachievable. turning up to the next sales meeting to
discuss results starts to look like volunteering for a flogging.
so the question is “Does your sales measurement system
help your sales people make more sales?”
the answer depends on whether you are measuring results,
the number or value of the orders won, or whether you are
measuring achievement of milestones on the path to the sale.
the critical issue here is the realisation that as a sales
manager you cannot manage the result. What you can
manage is the activity that produces the result. If your people
are doing enough of the right things, and doing them well,
they will achieve the result. the only way you can manage
the result then is to make all the sales yourself.
If you measure progress along the path to the sale, which is
best done at the critical milestones, then you are in a good
place when it comes to guiding a salesperson. An example
may help. one of your salespeople has had a busy week
making calls on qualified prospects, and has generated a
backlog of requests for quotation. there is not a single sale
in his sales report. he is way behind on the quotes, and
you know from experience that if they don’t go out on calls
in two or three days the prospects will cool off. he needs
guidance from you.
You have a choice of actions.
tell him to stop everything and get the all the quotes out.•
tell him he has had a great week. Well done and stick at it.•
Ask him why he has not made a sale.•
show him how to balance up his sales activity so he •
moves every prospect along the path to the sale at the
desired pace. help him to prioritise his prospects to get
the quotes out progressively.
Reward or Punishment? performance measurement that helps your Salespeople to Sell
By michael taplin
michael taplin has guided many businesses to sales success and profits by finding innovative strategies. You can read more of his ideas at www.bizlearn.biz
nZsm / FEB 24th 2010 / 15
set out like this, the answer is obvious, but it is time to be
honest. What did you do the last time this happened?
ouTcomE 1: this ensures that he runs out of steam in
week or two, and wonders what has gone
wrong.
ouTcomE 2: he cannot make a sale until he quotes.
ouTcomE 3: this focus on the end result is a certain
de-motivator.
ouTcomE 4: this is the way to guide him to steady
progress and a steady flow of orders.
What you need to be able to achieve this steady progress
is a system that gives you a sales report on the activity of
your sales people and the status of every prospect in the
pipeline. then you can guide the sales person to the activity
that will lead to a steady flow of orders. Your sales meetings
will become motivational working sessions, rather than
de-motivational exhortations to work harder to reach sales
targets. Your people will become internally motivated by
their confidence in their own success.
so what is the understanding that we all look for as a sales
manager? I will attempt to summarise the change in thinking
about measuring performance.numbers tell you very little
about real performance. they tell you how hard someone
has worked and what they have attempted, if their reports
are believable. You cannot rely on the number or value of
orders to tell you all they have achieved.
Ratios or percentages tell you more. this is certainly true
about success rates, typically closing rates. But these metrics
don’t tell you about what happens where it really counts.
the real sales Key Performance Indicators (KPI) you are
looking for are the metrics at the points in the sales process
that really count; the ones that add dollars to your bottom
line (or at least your forecast).
If you have these at your fingertips from a sales report, you
can help a salesperson to refocus their activity on what will
count for them in future. You can manage the activity if your
reporting system gives you the right information.
Customers decide the end result, as always.
If you work with your salespeople in this way, your sales will
be easier to forecast because you have removed the activity
peaks and troughs. You will be seen as the leader of the
sales team rather than as the driver. now you can focus on
developing competitive advantage in your sales process. You
can achieve this by discovering KPIs that your competitors
have missed.
In the next issue, Michael will explain how to discover your
competitive advantage using performance measures.
dinanmite.com
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nZsm / FEB 24th 2010 / 17
If you want to achieve more, write or visualise your goals.
many athletes daydream or visualise to succeed. they
have seen themselves crossing the line first or on the
podium with their medal and have learnt to ‘see the end in
mind’ and work backwards in their training programme.
My first question to you is: How old were you when you
started to set your goals? I am sure you were achieving
before you started to write them down but gathered
momentum when you concentrated on them.
my second question is: have you seen your end in mind?
Mine is to sit on a boat in a bay, writing. I can swim and fish
as well, and even become a beach bum or tour the world on
cruise ships. But what about yours?
If you can excite and motivate yourself, you have a thirst to
excel. Understanding your personality is an advantage when
goal setting. You are aware of your strengths and weaknesses
and grasp why you are achieving in some areas of your life and
not in others. Right-brained creative thinkers are constantly
coming up with new ideas and love being with people, talking
and selling. However the most difficulty they will have is in the
area of finances, systems and analytical areas.
so setting pages and pages of goals may not match how you
like to operate. Instead maybe you need a combination of
visual treasure maps as John Assaraf talks about in the secret
and his fabulous book the Answer. I have one of these on my
wall, along with one of my new life-long goals of making a
movie. Every time I read that headline, I attach a ‘Yes’ to it,
giving it momentum forward.
one salesperson I knew had his goals on his Blackberry and
every time he received a rejection, he would re-read his
goal to quickly move his thinking forward again. Again, it’s
the same with you. how do you keep yourself on track to
achieve the results you have a thirst to excel in?
Another word I use after missing deadlines because life
happened and I am feeling a sense of failure, is the word
‘intentions’. A bit like the economy in 2009! sometimes things
happen in life that are out of your control. however, either
word works. Visual or written down, constantly reading or
seeing your goals provides you an incentive to greater success.
I am certain it is the minority of people who sit down and
write their goals on new Year’s day, so anytime is better than
none. I recommend you use a 15-month calendar, exactly for
that reason. many people have opted out of the goal setting
because they say it is too hard or they don’t know how.
the key to achieving is for you to understand you are living
in a constant state of learning. You reach one goal and the
next is scooting along ready for you if you want to achieve
more. Let’s face it – you can learn how to operate your new
mobile phone and the latest technology, so you can learn
anything, if you are provided with the opportunities.
A Thirst To Excel keep yourself on Track to Achieve ResultsBy Janice Davies
Janice Davies is the Attitude specialist, who educates about empowerment. As a Professional speaker, success Coach and author Janice shares at conference and workshops on difficult people, attitude, goals, stress, and positive work relationships. to find out more visit www.attitudespecialist.co.nz.
t W o m I n U t E t o P U P
Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!
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Q U I C K F I X
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QuIck FIxWhen a client asks for something, rather than just taking the
order, ask questions to uncover the reason for the need. If they
want a particular product, then find out why they need it and
you might uncover the need for other products. You may end up
with a bigger sale.
For example if they need a printer because they need an
upgrade, or they have grown in terms of number of people,
then their company is in growth mode, and there will be other
requirements that you can then tap into.
thanks to mel Lee, Gen-I, for contributing this Quick Fix.
If you have a favourite ‘quick fix’ that you would like to share
with our readers (without giving your winning secrets away!)
then email the editor at [email protected]
You will be in to win a high powered laser pointer pen, courtesy
of the great guys at Brand storming Promotions.
WIn A LAsER PoIntER PEn FoR YoUR QUICK FIX!
If you have a favorite ‘quick fix’ that you would like to share
with our readers (without giving your winning secrets away!)
then email the editor at [email protected]
You will be in to win a high-powered laser pointer pen,
courtesy of the great guys at Brand storming Promotions.
It's not what you sell, it's how you sell
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