A young couple gets married, and settles comfortably in domestic life. Every Christmas the couple hosts a family dinner. The husband notices his wife has an unusual method of cooking the roast. She starts by cutting both ends off before she puts in into the oven.
At the time he doesn't think anything of it. But every year she prepares it the same way. Finally the husband asks, "Why do you cut off the ends when you prepare the roast?"
"Because my mother does it that way," she replies matter-of-factly. Now the husband is curious so he asks his mother-in-law why she cuts off the ends.
"Because my mother did it that way. She taught me," she replies.
As luck would have it, the elderly grandmother is still alive, and at that very Christmas dinner.
The husband approaches her and asks, "Grandmother.Why do you cut off both ends of the roast before putting it into the oven?"
She looks at him, and he can see in her eyes she is thinking back. "When we first moved from the old country, we couldn't afford a very large apartment, and we had an even smaller oven. I couldn't fit the roast in the oven unless I cut off both ends."
Do you see the box now? Doing what you do because it has always been done that way.
Let me give you another example:
My friend Bruce has a computer store where I buy most of my computer things. Computer retailers exist on extremely thin margins. It's a tough business that requires lean, and efficient operations.
My company goes through a fair amount of consumable items—cartridges, special inkjet paper for colour printing, writable CD's —that sort of thing. Inevitably when we run out at a bad time,midway through printing an important proof, or with a deadline pending. So we call the store and have them rush courier the item to us. I don't really care about the price because my need is immediate.
For years I've told Bruce he is losing valuable profit in that courier cost. It's going somewhere else.What I really want is you to deliver to me.That would be great. You could even charge me more, I tell him. Your margin would increase because you would satisfy a different need.
But computer stores aren't in the delivery business, he says. Then I've got to hire a delivery guy, I don't know if other customers would use it, I've got to keep my prices competitive... And he relays a bunch of reasons why it isn't a good idea.
Whenever I see him I keep on it.When are you going start delivering, I ask.
He's starting to listen. In the spring he told me, he will begin offering a free pick-up and delivery service for computer repairs and maintenance. I have no doubt this step out of the box, will greatly increase his revenue and success.
Seeing the box can be as simple as looking at it from the customer's vantage point. You'll be amazed at what opportunity shows itself.
I have an exercise for you to do. List for me, the top three complaints your customers have: Too slow, too expensive, don't deliver, don't know when the delivery will arrive, no guarantee, poor exchange/return policy, whatever they are, write them down.
Now above your list write the word: Opportunities.
Those complaints define a wonderful opportunity for you to take a giant step out of your box. If your customers complain that you do it in five days and he wants it in three, do it in two. If your customer complains about your hours, extend them.
Remember if it is a complaint you are hearing, your competition is hearingit to.
What is the opportunity you are missing?
Saturday, August 2, 2008
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