How Much Money Are You Losing?

Article contributed by Clive Murphy.

Julie and I attended a Home Expo last week on the first of three days. It was great dreaming about all the new things we would like to have.

What amazed us was how much money many of the stallholders were losing.

Let me give you an example.

We are interested in turning a small room into a storage area so are looking at the best way of utilising the space. This means lots of cupboards on two long walls.

We approached a company who had a large site. They had a big kitchen plus a plasma television showing all the work they could do – one photo was of a storage room. Julie explained to the sales lady (who looked like she was a part-owner) what we were after. The lady gave us a company booklet and said “Have a look through this and give us a call”.

We haven’t called them.

This sales lady should read Brett Burgess’s blog on “Are You Asking the Right Questions?” or, in her case, any questions?!!

I observed how this stand operated for about 15 minutes. Every customer was treated the same as us.

I began to do the sums. I imagine it would have cost them at least $15,000 to be there for the three days (site cost, wages, building the site, etc). Our purchase would have been worth around $4,000. We were at the site for three minutes and one other person was also given a book in that time and told to give them a call.

At the end of the expo, they would have zero orders and zero measure and quotes. They also lost our business plus, if two people an hour did not buy, on $4,000 missed/client it equates to $160,000 missed for the expo. Now, I would suggest this figure to be low as the main items they were promoting were kitchens and cabinets.

This company should invest in a customer service course. If they had have asked the right questions, shown some interest in the client and asked to come and have a look and give some suggestions, there is a chance they could have made over $160,000 for the expo.

In the business world of today, there is more competition than ever before. More businesses are competing for the client’s dollar. As an example, there were three kitchen businesses at this expo. To be successful, it is critical to have a point of difference, to be the best you can.

How much money is your business losing?

If you are not sure, consult with someone who can give you some feedback.

Many businesses lose money because they are not investing in the right areas. They invest in “how to do things” and not in their greatest asset – their team.

Are you investing in yourself to ensure you are the best you can be?