Stock Building Supply
A new CEO took over a year ago for Stock Building Supply Co. Stock has gone through restructuring and felt the effects in the decline of new home construction. (article from N&O)
The challenge for Stock and other companies operating in an industry where demand is not what it use to be, is how to grow its market….when the market is shrinking.
It seems Stock has a new strategy….as the newspaper article stated – “In Stocks’s case, the answer is in customer service”. Over the past year the company has invested heavily in additional employee traing to help them be more attentive to customers.
The more interesting question: “Where was customer service in the past?”. Customer service isn’t a startegy….it’s a value that defines how a company operates.
Excellent customer service will certainly help Stock Building Supply….and notice the difference at Home Depot and Lowes….a postive shift in customer interactions.
A Wake Forest professor teaches business negotiation that applies not only for companies….but also for consumers. He says in today’s economy….people that negotiate a price will get a better deal….of course if they do it in a courteous manner. Negotiation has always been a part of many businesses….auto dealers being an infamous example.
Did we negotiate in the family business?….sure we did. It depended on many variables. We were a medium size fish in a big pond. The big fish didn’t have to negotiate….all the others had to.
What we negotiated depended on price….total purchase….inventory….delivery distance. Most of all….the willingness to make a sale and gain a new customer. There are always many variables in the sales process….what made us better was to analyse these variables….complete the sale….give value for price….and encouage the customer to consider us in the future.
Businesses have to have room to negotiate. The key element in negotiation is that it is a win/win outcome for the buyer and seller.
Listening to a radio commentator….and his comments on the leadership vacuum in politics….government….business. Any business/organization needs good leaders. The interesting part is that many continue to exist with poor leadership.
Leadership is in some cases a natural trait….born leaders. In others it is a learned skill.
Is management leadership?… not really. Businesses need good management and they need good leadership. Strong management and leadership are what differentiates excellent from average.
Perhaps in today’s world there seems to be a leadership vacuum….the best organizations make sure that they are developing the next leaders.
I know Domino’s Pizza….they were founded in 1960 in Ypsilanti, MI (Ypsilanti was just east of Ann Arbor, MI and the U of M). We more than likely had some of the earliest Domino’s Pizza’s delivered to East Quad dorm.
Domino’s has sales of $1.5 B and is the second largest pizza chain. While there are numerous large chains and endless numbers of local pizza markers….Domino’s has been a significant part of the pizza revolution.
The innovations are what make pizza makers billion dollar businesses. Here are a few:
- Pizza boxes….they have to keep the pizzas warm
- Pizza delivery….no 30 minute or free for Dominos now
- Pizza warmer bags….keep the pizzas even warmer
- Fresher ingredient….from PapaJohns
- Frozen pizzas….make them at home
- Gourmet frozen pizzas….other than the normal ingredients.
Pizzas are not a complicated product….yet these businesses keep on innovating to maintain a competitive edge.
It’s still the same story – Get Better….Be Different
Where’s the Beef?
Remember the famous Wendy’s ad slogan – “Where’s the Beef?”. The ad campaign lasted from 1984-1986….yet the slogan become a phrase in the popular culture.
Wendy’s has brought back “Where’s the Beef?” in promoting its new Dave’s Hot’n Juicy.
In this case of resurrecting an old slogan….it might be a good move on Wendy’s part….always fighting an uphill battle with McDonald’s.
Recently I spoke to a leader whose organization was in the midst of a downward trend in numbers. In fact, a rather dramatic decrease over the past five years.
For the most part….this group doesn’t recognize the downside that is taking place. It seems to be business as usual….nothing that is urgent.
While this group won’t completely go out of existence….its numbers and future impact will be minimal.
In 1982 John Naisbitt wrote….“Megatrends – Ten New Directions for Transforming Lives”….a best seller that took into account the need to recognize future trends.
Any good leader needs to pay attention to trends….the first comment when a sales rep walked in our front door –
Banks: Good and not so good
“A study by cg42, a Connecticut-based boutique management consultancy, shows many people are turning to credit unions. And because of it, the top 10 banks may lose $185 billion during the next year.
Of the 10 banks included in the study, Bank of America has the highest vulnerability of losing more than 10% of its customers in the next 12 months. PNC Bank has the lowest vulnerability.”
A followup to the 11.08.2011 post. In particular Bank of America. One has to wonder how they make decisions to do the things they do. Clark Howard has for years referred to the large banks as “giant mega banks” with little regard for the customer. He has consistently recommended a community bank or credit union.
As in the 11.08.2011 post….BofA had its origins in NCNB (North Carolina National Bank). PNC is a conservative bank from Pittsburg that has a strong presence in Michigan and will in North Carolina when it completes its purchase of RBC.
When a business/organization does not value its customers….it loses!