"Famous Last Words"

[BusinessAdviser]

I came across this article at Entrepreneur.com, and I couldn't help but post it here to help educate users. How many times have we all read users post such "famous last words" in an attempt to defend their ideas or place blame somewhere other than on themselves? Hell, I'm as guilty as anyone else. This article should help us all realize when we might be in a bit more trouble than we want to believe.

Famous Last Words
If you've found yourself uttering any of these statements, your business could be in trouble.
By Roy Williams | November 30, 2007

The following are statements I've heard companies make as they are going down the tubes. Find out why they can spell disaster for your business.

1."Our only problem is traffic."
Slow traffic is a symptom, not a disease. Look for its cause. Why is traffic slow? Is it because the public doesn't know about you, or is it because they do? Is the problem with your advertising, or is there something wrong inside your business?

2."That's not our customer."
The businessperson who says, "Our customer doesn't care about price," is usually surprised by how quickly he runs out of prospects. Are there customers out there who don't care about price? Sure there are. But what percentage of the population do you think it is?

3."Our advertising is reaching the wrong people."
I've never seen a company fail because they were reaching the wrong people, but I've seen hundreds fail because they were saying the wrong things. Do your ads speak to the felt needs of your customers, or are you answering questions no one is asking?

4."I don't worry about what the competition is doing; I only worry about what we're doing."
Is there a game that rewards a player for ignoring the moves of his opponent? If there is, I've never heard of it. Business is competitive, and you're not the only player in the game. Like it or not, you're being compared to competitors by your customers.

5."There's enough business out there for all of us."
A limited number of dollars are going to be spent in your business category this year. Are your competitors going to make sure you get your fair share?

6."We can't compete with the internet."
The idea that the internet is a low-overhead business environment is a myth. Other than cost of occupancy (rent), the costs of doing business online are the same as for brick-and-mortar businesses. The average brick-and-mortar retail store spends less than 5 percent of its annual sales on rent. If online companies had no offices, no shipping facilities, no warehouses or other physical presence, they could still offer only a 5 percent price advantage to your customer. If you're not competitive with the internet, you need to take a close look at how you're buying. You need to comb through your payroll, your miscellaneous expenses, and your general and administrative expenses. Your problem is inside your own house.

7."Our secret is our people. No one provides as warm a customer experience as we do."
In 30 years as a consultant, I've known dozens of business owners who have convinced themselves that having "better people" was their store's primary advantage. In every instance, the store's prices were high, their merchandise was unremarkable and their people were average. Even if your staff is exceptional, the worst thing you can advertise is remarkable customer service. These ads make you sound like your prices are high and you know it, so you're trying to cover it up by talking about how wonderfully you treat your customers. Worse, the expectations of the public will be raised to impossible levels. Promise magical service, and you'll hear endless complaints. I've made this mistake more than once.

How Did You Score?

You're average if you've heard yourself say just one or two of these things. Hopefully, you've recovered from your wrong-headed thinking and are on the road to right action.

You've got a problem if you're guilty of saying three of these things. If you want to recover, you need to start associating with people who will smack you when you start talking nonsense.

You're in real trouble if you say and believe four of these things. It's like a drug habit. You say these things to reduce your anxiety and ease the pain of failure, much the same way an addict pops a perspective-altering pill to help him make it through the day. Rehab is going to be tough, but you can survive if you dig deep and awaken the tiger within you.

You're not going to make it if you're saying five of the statements above. Can you hear the fat lady singing? I don't mean to be harsh, but you really ought to take a hard look and decide if this is what you should be doing.
If you're not saying any of these things, then excellent. The world is yours for the taking.

[zoobie]

I had a good read. Thanks!

[byzantium]

20 years ago there was a Ford dealership in Sacramento that had a problem. Not only were they selling Fords, but they were located in a grimy, dangerous industrial area that was full of dilapidated warehouses. Their facilities were small and aging too, and their selection wasn't as big as the new dealerships in the suburbs. Once, they had been on the main highway to Reno-until the freeways bypassed them.

What did they do? They ran an ad blitz arguing that they could beat anybody on price, since their overhead was so low. "An awful location, but the best price." It worked-they hung on long enough for the area to turn around to where people felt safe there once again. The nearby GMC dealership wasn't so lucky-they folded and their place was eventually bought by a retail big rig parts distributor. The moral? Find your advantage, then hammer at it. And no, your advantage is not customer service.

For the best price, people are willing to go to the ends of the earth, even to a dangerous area so they can say "I survived going down THERE, AND I got a great deal!" This is why Wal Mart used to open in medium sized towns that were struggling, then in poor urban areas. People were willing to risk it for a deal. If that's not your problem, then what is, and how is it a positive?