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Should you do business with this company???
Sunday, April 27th, 2008

A question that has helped me decide whether to accept jobs, consulting engagements, and purchase important products and services is “should I do business with this company.”

In today’s business environment, it is important for those of us who rely on long-term relationships to have appropriate relationships with suitable business partners.  (And, I use the term “partner” very loosely here, rather than as a legal term.  In other words, a “partner” is just another party with whom you do business in any capacity.)

The question is best answered by considering the “big picture.”  Specific factors that have helped me answer the question over the years include:  

  1. What is the nature of the relationship?
  2. What is the other party’s reputation?
  3. Are there other parties that can meet my needs?
  4. How important is the relationship to my core business?
  5. How will the outcome of this relationship (good or bad) impact my future activities?

If a person is buying stationery for an office, the supplier’s situation is likely to be assessed differently from a situation in which a person is looking for employment at the senior officer level or the situation in which a customer lies to a supplier. 

At the end of the day, there are few absolute answers.  We have to make the best decisions we can with incomplete information, learn from the experience, and deal with the consequences.  There are risks for us, whether we pursue the relationship or walk away. 

 

Posted in Business Acumen, Business Tips, Leadership, Solving Problems, Team Building, Tips for Students | No Comments »



Would you follow your leadership?
Tuesday, November 20th, 2007

At the end of the day, we can each control one person… ourselves.

Self-leadership involves being the sort of person and leader that we would each choose to follow at an individual level.

Does it work? If we practice self-leadership, do we find others following us? Please feel free to share your experience on this…

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Building business relationships
Thursday, November 1st, 2007

The other day, a customer said that he had been coming to The Illahe Lodge every year for the last 24 years.

Why might a customer use a firm for an extended period of time? Certainly advertising costs are lower and customers and the business have greater knowledge of what each offers. What are the costs and benefits associated with this decision? Think about the difficulties that could arise if a major customer experienced financial hardship or became dissatisfied. Consider too the pain that can result with changing the business model. Still, there are risks associated with every business decisions and every business model. It seems to me that we have to choose the approach that involves risks we find more tolerable. What one person may find more tolerable may be unacceptable to someone else…

So what is the moral of the story? Business relationships need to be aligned with a firm’s business model. Some firms do this by offering discounts on return visits, accepting higher prices or paying higher compensation based on tenure, or weighing their decision matrix towards suppliers with longer tenure.

Now, think about your business model and the importance of repeat and referral relationships. Who are you targeting as customers, suppliers, and employees? What are some steps that you are taking to appeal to people in these groups who meet your criteria?

Want to know more or talk about your situation specifically? If so, please feel free to send me an email at infoli@c-davisconsulting.com, or click on the button at the right to contact me.

Posted in Business Acumen, Business Tips, Marketing, Planning Tips, Solving Problems | No Comments »



What problem do you help people solve?
Saturday, October 27th, 2007

The other day, Sally asked for help with her business. Sally wanted people to make referrals to her. When asked who would be a good referral, Sally said, “anyone who needs my services.”

How many referrals was Sally likely to receive with such a response? Sally may receive referrals from such a response, but the referrals are likely to be all over the map.

What happens though if Sally tells the person how to identify a good referral? It may lead to more referrals, better referrals, and greater confidence in the referrals that are made.

The starting point when seeking better referrals is to know what problem you help a person solve.

Posted in Achieving Goals, Business Acumen, Business Tips, Networking, Solving Problems | No Comments »



Relationship tip: Communicate!
Thursday, September 6th, 2007

The other day, Sam said that he was going to come to the lodge with six boats (18 people). To prepare for Sam’s trip, we went to town and got groceries - milk, bread, eggs, and some other items.

Suppose that Sam calls tomorrow and says that the number of customers has changed and he is only bringing four boats (12 people).

Think about what this change might mean for a small business.

Is it material?

How might it impact groceries?

Might it impact other reservations?

Could it affect the number of people needed?

How would it impact the gross and net profit for the trip?

Asking questions like these can help people see the world through another person’s eyes. Before communication occurs, the people involved have to understand each other’s perspectives.

Posted in Business Tips, Negotiations, Solving Problems | No Comments »



Relationship Tip: Go the extra mile
Sunday, August 26th, 2007

John (not his real name), a senior executive at a public company, asked me the other day what the company needed to do to strengthen relationships with customers.

The short answer to John’s question is that companies have to go the extra mile, if they want to improve their relationships with customers (and suppliers or employees, for that matter). What does that really mean though? Well, I will give you a real example of two things that I have done in the last couple weeks to build a relationship with one of the outfitters and the customers at The Illahe Lodge.

A couple weeks ago, an outfitter was washing his plastic silverware that is used for lunch as his customers float down the Rogue River. The outfitter mentioned that he was trying to find sturdy plastic forks and all he had found was forks that break. As it happened, I was in town a few days later and looked for forks. Low and behold, I found a package of 1000 sturdy plastic forks for $1 or $2. So, I bought them for the outfitter. It was a small investment on my part. When the outfitter was back in a couple days ago, he was surprised that I bought the forks and gave them to him. It took 5 minutes on my part, yet it is already paying dividends in that he knows I look out for my customers. Yes, the outfitter paid me for the forks, although it was unnecessary. What goes around comes around, right? In addition, I washed the outfitter’s plastic silverware.

A second thing that I did was to offer the guide the choice of desserts on the final raft trip of the year. The choice? Blackberry or apple pie, both home made with fruit that I had picked. The guide selected blackberry pie. The customers asked about the pie and, by the way, they were very impressed that I took the time to pick the fruit and make the pie by hand. Impressed enough that I received a nice tip, which I split with the person who helped me with the meals.

The lessons to be learned from these situations are simple.

- Think about what you can do to improve your customers’ experience. The difference between a satisfied customer and one that talks about you with his or her friends may be the little touches that make you stand out.

- Something that happens once may be luck. When something happens repeatedly, there is more going on than mere luck. The forks were a first time. I had been impressing the outfitter with the pie for about three weeks and, each time, the tips have been better.

- Share rewards with team members so that they are more likely to contribute to the team’s success. Often, people receive tips in restaurants and are required to split the tips. Rather than adopting rules, why not do what is right? I was able to impress the customer because other members of my team were backing me up, helping me wait tables, washing dishes, clearing tables, etc. I may get the credit in my current role, but would the best pie in the world make up for lousy service or other issues? I think not…

The lesson ot be learned is to think about what your customers value. From here, look for opportunities to go the extra mile, in a way that is cost effective and makes your firm stand out in your customers’ memory as different, unique, and special? That is what “delightment” is all about…

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Moving from Texas to Oregon
Wednesday, August 1st, 2007

Some have asked about my silence for the last week or so. During that time, I have been relocating from Texas to Oregon to help run my family’s business.

Part of the relocation effort consisted of moving my cat and car from Texas to Oregon. Three things that helped me were having my car checked before I left, planning the route, and staying in touch with friends during the trip.

These three steps are common sense - preparation, planning, and communication. How many people use these steps every day?

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