Is Your Business Floundering?

The age-old Value Equation of Price + Quality + Service is something we've all read about, talked about and maybe even studied. I submit that it may be the most overlooked, critical factor affecting the performance of small and medium sized businesses today.

In today's world, businesses have to be competitive in all 3 areas of the Value Equation, but to grow and succeed, they must very clearly identify one of those 3 areas and excel at it. I've recently done work with with a franchise organization that has positioned itself as the premium quality product and service provider in their space. Yet a conversation with a struggling franchisee revealed that he does not spend money on marketing or on improving in any aspect of customer service and product expertise. He simply spreads word of mouth that his products are the cheapest in town. Clearly there is a breakdown between the value his brand would like to provide and what he has decided to provide on a local basis. It is no wonder that marketing material messaging and tools "do not work for him" because he has not bought into providing the component of the Value Proposition that the company's training, tools and marketing address.

Look at your business and determine if your best competitive advantage should be 1) A lower price (a dangerous game unless your operational efficiencies are better than the big guys), 2) Providing Quality that the competition can't match (allows you to make the margin you want), or 3) Superior levels of Service. Many companies fool themselves by saying their business is all about service when that is the last thing they truly provide. When you know what your edge is, ensure that everything about your organization screams that message. It's the way you recruit, hire, train, manage, market, price, look and communicate. It should be the over-riding theme that guides every decision made within your organization. Figure out what your niche is and then blow the competition away!



Jim Pascale is a 20+ year veteran of consulting with small business owners and has comprehensive knowledge of small business management and franchising.

Contact Jim at jimpascaleminnesota@yahoo.com.