Determining what type of business you are in

Almost every type and size of business has the opportunity to receive multiple trade publications that provide tips and information.  If you make a point to review several trade publications, you will find yourself exposed to many ideas to enhance the operation and profitability of your business.

In addition to reading magazines addressing your specific part of the industry, you can gain from reading magazines addressed to clothing store operators of a or quick-print shop operators because many of the fundamental business concepts transcend all types of businesses. Understanding the changing market allows you to have the advantage of being able to keep up with the changing market.

If you have read Dr. Steven Covey's The Seven Habits of Highly Effective People, you recognize that reading trade publications is a part of the seventh habit: sharpening the saw. Looking at any industry, attending a seminar, trade show, visiting with someone in the same business field to exchange ideas, or reading a management book, report or trade publication are all excellent ways to sharpen the skills of the trade.

From the experience of this writer, the name of the publication and the advertiser have long been forgotten, but the skill demonstrated by the company that paid for the advertisement will long be remembered. In the advertisement, a gas company was addressing restaurant owners.  The invitation was to come to its laboratory and test the various brands and types of available cooking equipment.

The advertisement mentioned that 45 different pieces of equipment had been assembled and that any restaurant owner was invited to bring his chef, recipes and ingredients to the laboratory. The idea was that the chef could test-cook before purchasing the new equipment for the restaurant.

Surely, the gas company is attempting to persuade a chef to cook with gas instead of electricity, but also the company understands that it is selling customer satisfaction rather than just selling gas or leaving the selling to the manufacturer of the stove. The restaurant owner who would probably have just replaced a worn piece of equipment with an updated model can now investigate the alternatives.

Too often the opposite scenario happens, as exampled by a report in another trade magazine. A young couple wanted a safety fence built around their in-ground swimming pool. Their concern was the safety of their 3 year-old toddler. They shopped the Yellow Pages, interviewed several contractors, and made their selection. A contract was signed, and the fence was soon constructed.

During the final inspection of the fence, the parents discovered there was a way the toddler could still gain access to the pool.  Obviously, this made the fence unsatisfactory to the couple. The solution was not forthcoming, as the contractor explained to the parents that he had built the fence as detailed in the contract. The parents responded that the fence did not achieve its purpose.

Granted, the contractor had fulfilled the letter of the contract, but the problem was in the perception of the sale:  the contractor was selling a fence; the couple was buying peace of mind.  Since the solution to this scenario was long and drawn out, the couple certainly did not provide any referrals to the contractor.

Dr. Richard Feinberg of Purdue University performed a survey in which he interviewed 20,000 people about their shopping experiences and preferences. Now, before you who are service technicians say, "This doesn't apply to me, because I am not a retail store," consider that everyone—no matter what profession—is selling something. If not selling a product, they are selling a service, to either a customer or their employer. Dr. Feinberg's survey showed that the five most important factors were:

• Have or perform what I need
• Save me time
• Sell value to me
• Produce the products or services in an attractive manner
• Have someone qualified to assist me

If you are the individual responsible for pricing your goods or services, note that price is not one of the top five concerns. For everyone, note that the desires of a happy customer are fairly basic. Only one in 30 unhappy customers will take the time to tell you about the problem; however, 95 percent will continue to do business with you if you resolve their needs immediately.

The bottom line is to demonstrate a comparison. Did you notice that the first part of this article contained two stories?  Most people can identify with the ideas and needs that were expressed in both. The second half was more statistical. Both conveyed the same information, but the first half was designed to help you see a situation from a human perspective rather than just giving information.  Both the stories and the statistics were designed to be persuasive about the importance of paying attention to the wants and needs of the customers (employers) that every person has.

This article is copyrighted by Tom Shay and Profits+Plus Seminars, who can be reached at: PO Box 1577, St. Petersburg, Fl. 33731. Phone 727-464-2182. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.

For organizations that have a contract with Profits+Plus Seminars to reprint our articles, this tag line is required for reprinting: This article is an excerpt from the book, "What does Tom Say?". Tom Shay provides proven management and promotional business building ideas through his Profits+Plus Seminars and books. Tom can be reached at 727-464-2182 or at his web site: www.Profitsplus.org