Don is an award-winning business coach and CEO. Accountability Nowhelping clients increase revenue by an average of 35% in 90 days.
For many entrepreneurs, the cost of providing quality products and services may seem too high. After all, why should a small business owner invest their hard-earned money in something that won’t necessarily succeed? You miss your customers. It is the customer, not the owner, that ultimately determines the success or failure of a business.
This may seem harsh, but your passion, commitment, and dedication to your business are not important to your customers. All that matters is how you make your customers feel. There’s another hard truth for small business owners to hear. What you deem high value or high quality may not matter to your customers. Let’s explore the high cost of quality and how small business owners can actually create quality for their customers.
Never underestimate the power of quality products and services.
Quality products and services are essential to business success. When customers buy your product, they expect it to last for at least a reasonable amount of time. If it doesn’t meet their expectations, they will stop trusting you and eventually won’t buy from you. It’s that easy. This is why investing in quality materials and products is essential, even if the initial cost is high. It shows your customers that you care about them and want them to be happy with what they buy from you. Investing in quality also helps extend the life of your products, make them more durable over time, and save you money on repairs and replacements. But how much is too much? When to overinvest?
In my coaching practice, I speak to many clients who have provided excellent services and products to their customers. A lot of the time they give me a long list of the value they are offering to justify the higher price, but I’d be surprised if sales are down or non-existent in the first place. to, they are dissatisfied. Don’t they see what we are offering? ”
And then there is friction.
What is value?
Value is defined as “relative value, utility, or importance.” Who decides its worth? Is it the business owner or the potential customer or market? I would argue that the market determines that and many would agree. If your customers judge value, avoid the temptation to get frustrated if they don’t understand the value of your product or service. Instead, adjust the value of what you offer to solve the real problem.
Solve real problems.
You have a real problem. many of them. When creating value, make sure the value you provide is aligned with the real problem. Make sure your actions solve the problems they face every day. As Clayton Christensen wisely argues in his revolutionary work, jobs and services are developed and employed as ‘to get work done’. When considering the value of your product or service, be prepared with value-based answers to questions such as “What does this do?” or “What problem does this solve?”
If you can’t answer these questions, you have no real value.
Seek ways to make quality affordable.
Quality, if done right, should make the product or service streamlined for the customer When your business. Case in point: McDonald’s. Keith Cunningham also uses this example in his excellent book The Road Less Stupid.
No one would mistake this brand for fast food. Personally, I think everyone in America makes food that tastes as good as hamburgers, but French fries are a different story.
That said, it’s hard to find a restaurant with as much impact and influence on the world as McDonald’s. They made more money and created more jobs than any other restaurant. Not by producing the highest quality, but by producing consistent quality at an affordable price, just like our customers.
Invest in quality and reap the rewards.
Ultimately, investments in quality (materials and customer service) should be viewed as investments, not costs. Because it has real potential to help small businesses succeed. Also, remember that providing great products and services is not enough. Entrepreneurs must deliver value to their customers through both products and customer relationships if they want to make a difference to their business and its future prospects.
The price of quality may seem expensive at first glance, but if you put in the effort to invest wisely, you can reap big returns over time!
The Forbes Business Development Council is an invitation-only community for sales and biz developer executives. am i eligible?