Take Care Of Your Customer And Your Pocketbook Will Follow
One of the most influential men in my career taught me the philosophy, “Take care of your customers and your pocketbook will follow”. He had built a multi-million dollar business selling parts for computers and cash registers using this simple philosophy.
He was a teacher and a businessman. He taught his employees and managers to take care of the customer’s needs, wants and desires and not to focus on the pennies. He felt that taking care of the customer would always pay off in the long run. He was right.
His customers rewarded him with their repeat business and loyalty to his company.
Now, my attention is drawn to a local restaurant in the town where we live. As recent as a year ago you could often find a waiting line at lunch to get a seat in this small, 100 seat family sports pub.
The owner and I are friends and talked often about what drove people to his restaurant. Time and again, he stated how he had advertised and marketed directly to the people through his support of the little leagues and schools in the area.
It was common to have huge groups of people, not just little league teams, but families from local schools descend upon his restaurant at night for their school’s night at the restaurant.
The key word in that statement is “was”. For things have changed.
Another friend of mine and I eat lunch at this restaurant almost 5 days a week. Yesterday, there were only a handful of tables occupied for lunch. The restaurant was 2/3 empty. It was clear that this restaurant is in severe trouble and we knew the cause.
The owner has lost his customer base. No, not lost. He has driven them away.
This past August he sponsored the local high school booster club by agreeing to honor a discount card that they were selling with a 10% discount. The booster club organized a group of local merchants to offer various discounts to sponsor the card and the booster club. This was the 2nd year that my restaurant friend sponsored this discount card. The club sold the cards for $10 each as a fundraiser.
Now, 3 months into the program the owner of this restaurant has decided that he cannot honor the card any longer and posted signs at the front door stating so. He claims that there are too many discounts being applied and that his food cost has risen.
While all this may have some truth to it, the restaurant across the street is so packed you can’t get a seat. Yes, you guessed it. They also sponsored the card and are proud, happy and excited to honor the 10% discount.
The restaurant across the street is also a sports pub, has the exact same style of menu with additional items that my friend’s restaurant doesn’t carry.
My friend’s business is in severe trouble. He ran off his customer base that he had worked so hard to build. I am confident that some of the people who left will never return. He has lost them forever.
Even when I explained that continuing to honor the card was good for business and that 90% of something was better than 100% of nothing, he still chose to proceed with this marketing disaster.
Learn from this. Take care of your customers. They are the reason you are in business.
You may try to argue that you are in business to make money. I propose that if it weren’t for your customers being happy, doing business with you and coming back again and again that there would be no profits.
Take care of your customers and your pocketbook will follow.
Nathan Lewis has over 25 years of experience applying technology to solve complex small business problems.
Mr. Lewis is a Platinum level author with Ezinearticles.com and has been publised in print and internationally on the Internet.
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Tags: discounts, ethics, good business practices, marketing, schools, sponsoring teams