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View Full Version : Some sound business advice



fayt
11-17-2012, 08:10 AM
Here is some more tips to help your business.

-Don't sell or do a service for dirt cheap. Don't undercut everyone thinking you will make more money. Being the cheapest in town is associated with having a crappy work or product. If you are great at what you do, you need to get paid for what your worth. People generally complain more with cheaper items or service than a higher amount.

For instance I quoted a sign for someone for $12 each and I got cussed out and was told I was ripping people off. I even went way down on my price. When I quoted $18 to another, they were happy and paid me and loved the sign.

Another example I was just in Food Lion grocery store and bought the cheap brand of Home 360 clear plastic wrap. It was horrible and didn't work at all, it ripped and melted. So I went back and got Glad. Sure it was $2.29 compared to $1.57 but it worked great and was what I wanted.


-Customer service is what will keep you in business. You will have thousands of repeat customers just by having great customer service.
If you are in the service business, stand up and shake someones hand and greet them when they walk in. Get to know them on a first name basis. "Hi Bob, welcome back, what can I do for you?". Instead of sitting there and saying "Hello, what do you need?".

As for retail, you can greet each customer who walks in the door. "Hello, welcome to Buggy's, let me know if I can assist you". Also walk around and talk to people. "Hi Ma'am can I help you find anything today?". It puts you on a personal level with them and makes you more of a mom and pop shop rather than a cold corporate position.


-Employee respect. Your employees run your business. They are on the first lines and interacting with the customers most of the time. There are dozens of things I can say about this, but let's start simple. You want to be their friend but also their boss. Be very friendly with them and treat them like a friend. Just remember to stay a boss and take action if needed. Don't buddy up too much or they will take advantage of you. If an employee has an emergency or needs a day off. Don't fly off the handle. If they say "My car overheated is it okay for me to tow it to the shop and just come in tomorrow?". You can do the work yourself, take over his or her position for the day. Don't threaten to fire someone over stupid things, or else they will quit and you will really be in a bind. It's better to get two weeks notice instead of them not showing up. Give them respect and they will do a great job. Also pay them what they are worth. If they work in a warehouse and are lifting 50 - 75 lbs every day and doing a ton of manual labor. Give them $10 an hour rather than a minimum wage of like $7.25. Think to yourself, do you want be paid that yourself? Do you want to live paycheck to paycheck all your life?


-Lastly, if you are in America PLEASE buy locally. With millions and millions out of work and homeless why would you buy from out of the country. Why outsource your tech support or customer service to India instead of paying your next door neighbor? Avoid Walmart about 85% of it is made in other countries. Check product labels to ensure you buy USA made products or equipment. Always do your best to support small businesses. Like for Christmas, instead of getting the best deal at Best Buy, consider the small mom and pop shop down the street. Sure you might pay $50 more for a plasma tv, but that money will stay local in the economy and come back to you.

I don't have a problem spending a little more. The USA makes better products. Consider switching from Walmart to Bob's General Store.


I hope everyone gets something out of this. I've learned from many years of experience of what works and what doesn't.

GlobalPay
01-04-2013, 07:32 PM
Nice article. Thank You.

huggytree
01-04-2013, 08:50 PM
i dont even try for the lower 50% of the market....i find they will choose the lowest price no matter what.....then they will complain about it, but the next opportunity they will just go cheap again.....the cheapest customer i find complains and expects the most

the upper 50% seem to realize you get what you pay for....they comare quality vs price.....maybe because they can afford to

the lower 1/2 never seems to learn the lesson of low price=junk.....they have to replace whatever they buy more often because it falls apart or doesnt work...they actually pay more in the end for everything in their life......and they never get it.....i used to be one of these people...its how i was raised....and is how my Father still is....he's frugal to the end.....and everything he has or does is junk......ive tried to help him but in the end he buys what he wants and never learns

when i quit even caring about competing on price is when i started to see success

let the Sams club/Walmart customer go to your competition

Pack-Secure
01-05-2013, 02:49 AM
I always look for Made in USA first, even if it costs more.

Customer service is one of the keys to business success.

Companies need to price their products and services to what they feel is a good profit making price.

huggytree
01-05-2013, 08:25 AM
in my business being made in USA can mean the part/product costs 4x the same part made in China

i use as much made in USA things as i can find for a reasonable price increase......the USA cant compete many times on a quality vs price comparison....yes we have the best made parts, but it cant cost 4x and still be something anyone will buy

SliQsw
01-08-2013, 05:55 AM
some sound sentiments there, thanks. Treating customers & employees with respect and buying locally I especially agree with. Being in business does not have to be about being ruthless and money orientated above all else. Treating people decently makes good business sense! :)

Freelancier
01-08-2013, 10:17 AM
From my experience, the lower end of the market is always crowded. The higher end requires more effort, but you also end up with more rewards if you have enough customers at the end of the market that you can convince are that much better than the rest. So it takes a little more marketing, but you end up with a larger profit margin. When you pick a niche, you need to defend it no matter what. If your niche is low price, then you need to continuously find ways to cut your own costs to keep the price going lower and lower (which is what Wal-Mart does, by constantly pressuring their vendors to lower price). If your niche is "value", then you have price as just one dimension, but also time/service/features as another dimension that you can tune to get the right combination to appeal to your customers.


So I went back and got Glad.

Next time, try Stretch-tite. Even better for similar price.

Dan Furman
01-08-2013, 10:31 AM
As for retail, you can greet each customer who walks in the door. "Hello, welcome to Buggy's, let me know if I can assist you". Also walk around and talk to people. "Hi Ma'am can I help you find anything today?". It puts you on a personal level with them and makes you more of a mom and pop shop rather than a cold corporate position.

Good sentiments on the rest of the piece, but man, I *hate* the above. LEAVE ME ALONE :)

Dan Furman
01-08-2013, 10:39 AM
since this got into a mom and pop area, I have some advice for mom and pops to help them compete:

* If you are a store, can you stay open past 6pm? Please? I realize you have a family, but most folks work until 5pm, leaving very little time to make it to your store. At minimum, you need to be open until 8pm.

* Parking, parking, parking... Main Street USA is gone, and it's not coming back. You need parking. If that means moving, that's what it means. Because if I have to fight for parking spots, I'm just going to go to Home Depot.

* Little kids running around behind the counter doesn't fill me with confidence in your business. Use daycare. Or at least a back room.

* Your return policies are often draconian, and filled with mistrust. Home Depot / WalMart take my item back in 30 days, no questions asked. You need to do that too.

I like local businesses, but it seems many still think it's 1956, with lots of daytime, walk up traffic.

fanbizzy
01-08-2013, 03:06 PM
Good Tips, I appreciate the insights, nice to see some good resources here!

Ted
01-08-2013, 03:31 PM
I'd like to add my two cents to your already good stuff Fayt.....

Once you have been in business for a year and you start understanding who your customers are, it will be in your best interest to do some analysis on them. Take the time to profile your customers and figure out which type of person makes your ideal customer.

Then consider repositioning your business within its market to cater even more specifically to that kind of customer. Reshape your entire business model to cater perfectly to that one specific ideal customer. Spend your advertising dollars advertising directly to that audience instead of just doing mass advertising. Spend time developing stronger relationships with those ideal people. Get to know them on a first name basis. Greet them by name as was suggested by Fayt. Try to earn their loyalty so that way they want to tell their friends about you. Many of their friends are likely to be your ideal type of customer too.

Stop chasing work from anywhere you can get it. Start chasing after the best possible customers out there.