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ForumsSince I have started my computer business I have learned a lot. I have learned not only lessons that apply to the computer business, but lessons that also apply to any industry or even just life in general.
One of the lessons I would like to share with you is that by giving something away or spending more money can actually save or make you a lot more money.
A great example of this is the story of my fiancée’s previous and current workplace.
Her old work place was run by somebody who was always trying to save money. I mean, he was really counting the pennies to the point where they would often not have enough stock to complete the job. He would constantly bring in new nurses on an unpaid “trial basis”, string them along and eventually let them go at the end of the trial so he was essentially getting nurses to work for free.
He would have a Christmas party at the end of the year like most businesses do but he would pay for very little even though this guy was very wealthy.
This business has never really ran smoothly because the place was often short of essential stock, the boss would chew out the nurses for something little like using one too many staples (again, to save money), the nurses would get frustrated because they can’t do their job properly and get in trouble for it resulting in a high staff turnover.
My fiancée is no longer at that business due to the reasons mentioned above and is now working at a Dental practice that is almost the opposite of her old work.
The Dental Practice that my fiancée current works at has found “its groove” and everything runs smoothly. It always has enough stock and the boss spends money doing nice little things like bringing in cups of hot chocolate every Tuesday.
So what’s my point? My point is that by spending that little bit extra it actually saves more money than “counting the pennies” like the previous boss. By having enough stock the place runs smoothly which allows everyone to be more efficient and get more done which eventually leads to more income. When the boss buys $20 worth of hot chocolate every Tuesday he is keeping everyone happy and makes them feel like they are appreciated which results in less staff turnover.
The old Dental practice thought he could save money but the process of placing ads and training staff is actually quite expensive. First, there is the actual cost of placing an ad on the job sites (usually around $100) and then you have to spend time training them. You also have to pay the trainee for the training time (where they aren’t 100% useful yet) and you need a fully trained staff member to train them. This takes the fully trained staff member away from other jobs which makes them less efficient as well.
So, by spending that little bit extra on his practice and making the staff feel appreciated, the new boss makes far more money than the old boss who counts the pennies to save money.
I agree with this. I think I’m in the minority now who still believes that customer service is number one. All the businesses that try to do things on the cheap have employees that are unhappy. And, unhappy employees usually translates into customers that are unhappy.
Give a little get a little, give a lot and…
Keep employees and customers happy. #1 Priority.
I believe in Bosses maintaining a productive and smooth business flow that will create a business environment that customers will frequent more, rather than a hostile business environment where employees are disgruntled, it leads to poor quality of work and production in which most customers will not want to do business with.
On the other hand, there must be standards and goals in place to maintain and continually improve on employee-management relationship, maintaining excellent supply for customer demand. These are key in order to prevent Manager B from becoming Manager A at any point of the business life.
This goes further yet. You can give a little to galvanize a client. In my store we will spend a few minutes with a client to see if their problem is a 5 minute fix.
Say the wifi switch is off, that’s why they can’t connect. Turn it on, show it works and send them on their way at no charge. What has it cost? Say, 10-20 minutes. What was it worth to them? A lot.
They are back working almost without interruption thanks to you. This is a customer that will be back and will tell folks how helpful you were.
This goes for house calls, too. Fix something simple over the phone and they will think your a geek god and will more likely call when they really need help.
Amen Warren. It’s such a temptation to make a quick $50, but the surprise on their face when you do a free fix in person or over the phone, and the loyalty and referrals that come from it will pay you more in the long run.
Something I learned from an insurance guy that may be valuable. When you do work at no charge and they ask you how much, just say No Charge, we just hope people will spread the word about our service, then hand them a business card and write Referred By and their name and hand it to them.
Warren, I also second your observation. Giving a bit will lead to building strong, trusting relationships, and when that person buys all their future hardware from you and use your expertise when needed you’ll be only to happy to have not made an small nuisance fee.
I don’t advertise but rely on word of mouth entirely for my jobs. I tell my clients that if they are happy with my work then tell their friends, if they are unhappy with my work tell their friends but tell me why first so I can try and sort it out for them.
Good news travels like a 3 legged horse but bad news spreads like a bushfire.
well written Bryce. Relevant to everyone, doesnt matter what industry they work in. Good job.
thank you all i learn a lot from all of you.