Shift Your Focus from Profitable Transactions to Quality & Service

An unprofitable business transaction can be a huge success for a business owner.

Many business owners will initially disagree with this statement, but let me suggest a different approach to business transactions.  This approach suggests that the profitability of any business transaction is unimportant.  What is important is that the transaction contributes to a “long term mutually beneficial business relationship.”  The important thing is the ‘overall profitability’ of an ongoing business relationship, not the profitability of an individual transaction.  And, from the customer’s perspective, quality and service are what they demand in return for their long term loyalty.

Focus on Delivering Quality and Service

Shift your focus from profitable transactions to improved quality and service.  In the short term, your profits may decline, but your long term payoff will be increased sales and profits.  Do not accept:

* Poor Workmanship

* Sullen Service

* Defective Materials

Worker motivation will improve.  Product quality will improve.  Customer satisfaction will improve.  And, your long term profits will improve.

Demand Quality and Service from Your Suppliers

Stop awarding business on the basis of price.  Your purchasing priorities should put quality first.  Then, consider your confidence in the supplier’s ability to meet your needs.  Price should be your last consideration.

Structure Your Business to Satisfy Your Customers

Empower your employees to take extraordinary actions to satisfy your customers.  Eliminate any internal communication barriers. Focus on problem solving, not finger pointing.  Remove any impediments to pride in workmanship, such as, inexact directions, poor equipment and inferior materials.

When you consider the lifetime value of a loyal customer’s relationship with your business, the short term costs of refocusing your business are a good investment.