Thrive in a Down Economy: Take Advantage of Competitor's False Economies
By John Aberle | Business Management , Financial Management , Sales Management
A down economy causes fear in most business people. While
response is essential to survival, it is actually possible
to take advantage of others’ mistakes, such as cost cutting
that harms their businesses, i.e. false economies.
Years ago I read a story about a seafood restaurant that had
an incredible reputation for their clam chowder. When new owners
bought the restaurant, they decided to cut expenses to increase
their profits. They began watering down the soup. Over a period
of several months, the restaurant’s clientele began dropping away.
Loyal customers gave the owners the benefit of the doubt the first
time they found that their chowder was not up to the quality they
expected. However, most of them stop coming after the second time
they experienced the cheapened chowder. Pretty soon, the owners lost
enough customers to threaten the survival of the business.
The point here is to do everything in your power to maintain the
quality of products and services at the same level or better than
your customers expect from you. Otherwise, you could very well be
the one driving the nail in the coffin of your business.
I tell my clients that cutting corners on your product or service
in an effort to save money is “false economy.” In my first two years
on the road as a consultant, I wrote savings recommendations worth
$2,300,000. I believe in cutting waste and reducing unnecessary
expenses. However, cutting corners is foolish. Customers vote every
day with their money. MORE ….
What questions or comments do you have about selling for fun,
profit, and mutual rewards?