Are you the tallest nail in your industry? The one that gets hit for standing out while everyone else is comfortable keeping their heads down?
This article's for you.
WHAT IS THE VALUE OF YOUR BUSINESS???
Would you sell your business for less that what you thought it was worth ???
Would you give all your expert knowledge to a competitor for free!?
Would you sell your best selling product at a loss ? or your most expensive product at a loss?
When you buy a product at a national chain store don't you expect to pay the same price at all the stores?
you tell a client – “no problem I won’t charge you for the work I’ve
done or the service I’ve provided” even when there were no problems ! ?
In the past 10 years I have been watching exactly this type of “business suicide” go on all over the Niagara region!
my capacity as a consultant for both the hospitality trade and the
special event rental industry, I have contacted literally thousands of
business from Fort Erie to Hamilton, I have spoken with staff and
owners of all types of operations; and in that conversation, two things
have stunned me!
We devalue our services & goods and we
have so little customer training for ourselves and our staff that
neither seems to value the goods or services their companies supply or
the customers to whom they sell those goods and services.
What do I mean by these statements:
- everything a company does has a value – those companies that take the
time to research the value of the things a company has and does; from
the staff to managers, to COO’s; from office décor to light bulb
purchase has a value!
Where do you put that value?
Into the “goods and services bank” – a supply and demand account, that
should determine you should both buy and sell your supplies and
products at a competitive pricing.
This account is the same
whether you are in Niagara or in Oakville, Stevensville or Hamilton. If
your selling “widgets” or information on how to build a “basic Widget”
here or there, in most cases you pay the same for the parts – the
production and the labor/wage the hydro and water the gas the repairs
and maintenance for your building/ office supplies etc.
With this in mind you should be valuing your product the same as all other suppliers no mater where they are in the region - but this is not the case!
you go past the boundary of Stoney Creek you can see it in the costs to
consumers; but it is never more evident than when you are selling a
No one in Niagara seems to value their product and services the same as those in areas to the north.
is the essence of commerce, but if you give away your product in the
false assumption that a lower price will get more business, when others
charge fair and reasonable prices, you DEVALUE the good and service and
as a result you can not maintain your growth potential and a high level
of service. The money just is not there! Yes you can struggle month
over month to met the obligations and try to meet customer service
needs – but you just won’t do it !
Niagara and the area has struggled with this concept for decades.
With the expanding market place from Toronto and beyond, and the change
in the “destination” value of our region we have to be prepared to meet
the demands for better products, more variety, more services, at a
Toronto market price.
This is the profit margin it will take
to provide the service at a level that we presently only instill in the
graduates of our college and University. Our business and service
providers need to see the value in this type of action if we are to
stop being a “bedroom” community and a “has been” factory area. Owners
of business need to step up their game and provide exceptional training
to staff, not only in customer service but “up-selling” techniques.
Many need to reach the level of service that patrons and businesses
(outside of our area ) who are seeking opportunity to do business or to
enjoy our goods and service receive in their own areas.
They expect it and they will pay for it!
is time to become an area not know for devaluing our goods, services
and supplies, but one that is up to the times and the style of every
major area surrounding a provincial capital.
Why should we be a follower when we can lead?
Why should Toronto style take two or more years to come to our area? if
we don’t devalue, we don’t have to wait, and neither do our customers.
P.J. Consulting, Niagara