Foreign teaching

 

[Inca king and queen*]

As Susan Dray wrote in one of her recent posts, going on vacation is a great opportunity to observe and learn not only ways of conducting life but also conducting business. On my just completed family visit to Los Angeles, I visited many commercial establishments, not always by choice, and gained valuable insight how to attain high prices and create a distinctive brand as well as a negative lesson on how to lose potential customers, which is no less important.

[clothes rack]

One business lesson reinforced by this trip was the vital connection between high prices and personal service. I took my 95-year mother to an upscale clothes boutique and watched for an hour and a half how the staff of three women made each of the customers feel like a queen. They greeted them by the first name, carefully choose their clothing, brought it to them in the dressing room, complimented them when appropriate and let me them choose at their speed. When it came to pay the bill, they gave each a discount, more symbolic than anything else given the income status of these women, thus providing each of the customers the feeling that not only had they bought beautiful clothing but paid less for it. It was clear that these women would return when they again needed an outfit for a special event. The store was able to sell at high-end prices because it had sufficient help, treated their customers professionally and friendly and created the image of a good value in terms of quality and price.

[donut assortment]

On the other economic scale, I stopped for a snack at one of the umpteen small donut shops in Los Angeles. Their names, physical layout and menu are essentially identical. However, one distinguished itself enough to lead me to return with its spirit of its service, quality of its food and unique atmosphere. The woman at the cash register had a huge smile (despite opening the shop at 05:00) and exuded genuine warmness. The bagel sandwich I ordered was both tasty and far less expensive than its Starbucks cousin. What really sold me was the classical music in the background, a Chopin concerto if I identified it correctly, which made my breakfast even more pleasant. I certainly did not expect that atmosphere at a donut shop. I then noticed that most of the customers were regulars that ate their donuts and sandwiches in the shop, attesting to the hominess of the place. Despite being at a first view a carbon copy of countless other similar business, this donut shop was special and personal, an ideal for all business in competitive fields.

[newpaper ads]

As a reminder of how not to run a business. I picked up a local weekly newspaper whose target audience would be quite relevant to me. Unfortunately, their lack of urgency and interest made sure that I would never spend any money on advertising in it. I called the advertising manager in the morning but was told that she was on the other line and would get back to me shortly. Shortly never arrived but I called back again that morning. She answered and provided me with several pricing options. I asked her to send the specifics to my email, whose spelling was confirmed over the phone. She then told me that she would send me the proposal “that afternoon”. I failed to understand why such a 5-minute task would need to be postponed to the afternoon but was still willing to be tolerant. More than a week later, I had yet to receive any proposal. As my late father would say, that is no way to run a railroad. Customers appreciate promptness and urgency. If they are not important at the sales stage, they will most probably not exist after the sale.

[coffee and patisserie]

As a side note, company names are important even if ignorance can be excused. I stopped at a cozy little expresso shop, filled with couches and cushions, and ordered a coffee and a pain au chocolat. (I can highly recommend the latter). The name of the café is La Laiderie, which had bothered me every time passed it previously. The reason finally clicked: laid means ugly in French; To be fair,  the name is actually composed of the various first names of the owners’ children. While appropriate in LA, the name faces some issues in other places. I suppose many other establishmen names do not travel well.

As the expression goes, a word to the wise is sufficient. Even experienced entrepreneurs need occasional reminders of correct business practice and the importance of making customers feel like kings and queens. It is far less expensive to do this by observing others than making your own errors. As the essential rules of business are essentially identical worldwide, a perspective person can even learn when touring abroad. Now, I am happily back home and back to work and just a little wiser from my trip.

Picture captions help the blind fully access the Internet.

All pictures via Pixibay.

The Wisdom of our Fathers

Happily, I am not writing an obituary.  I have just returned from visiting my father, who is recovering from a fall that led to a hip replacement and a stroke.  In March, he will turn 95 years old. I spent much time with him at the rehab center. As I sadly left the center to return to Israel, he strongly informed me that he had many birthdays in front of him and not to worry. Whether this is true, neither he nor I can know for certain but optimism is the key for most successes in life, including living.

My father is not a great talker but expresses himself through action. Considering his business success, his life journey provides keys for success for any entrepreneur that wants to make it. He began as a journalist at the AP, where he learned how to write well and under pressure, an important basic skill.  He did his underpaid and overworked apprenticeship in public financial relations (preparing quarterly and annual reports and investor relations) with a large firm in New York, learning the trade. Before he struck out on his own, he had mastered the basics of the business.

Armed with this knowledge, optimism and a small nest egg, he set for Los Angeles and set up his own company. The market was ideal as Los Angeles was an affordable, growing city at the time.  Moreover, he carefully chose his clients, looking for solid reputations, intelligent management and long-term perspective and avoiding well-paying but notorious companies. He was careful in his promises and but gained a reputation for honesty and efficacy, which led to more customers. Ultimately, he created the largest private Financial PR company in the West Coast. Careful consideration and planning made that possible.

Yet, money was not the only factor motivating his actions.  Offered the opportunity to also manage another office in Chicago, he declined it because he did not want to spend half a week away from his family.  As he grew older, he retired gradually, initially selling his shares to this partner but keeping an office, followed by renting an office in a building near his home, until he eventually withdrew from the whole business.  However, the knowledge and skills he attained have helped him remain an astute investor, always looking at the management and industry and checking the numbers very carefully.  Many a pension fund manager would envy his results. More importantly, managing his portfolio has given him a reason to get up in the morning and raison d’etre for being even as he became handicapped physically. As in sports, it is as important to know how to retire as is it to start the career. Family and personal happiness are of no less importance than income.

In short, an entrepreneur must apply preparation, careful action and long-term planning to achieve success, then and now.  I cannot say that I did so nor did I understand or even appreciate his success.  Alas, it is often too late until we appreciate the wisdom of our fathers.

All employees great and small

I failed to post last week due to circumstances beyond my control. My father fell down, broke his hip and had a stroke.  I flew to the United States to help my parents.  Fortunately, the danger is over.  He is currently at a rehab center starting the long process of getting back on his feet.

During this difficult week, I had the wonderful experience of interacting with great front-line employees in many enterprises. Their dedication was expressed in a variety of ways that all shared one feature, caring. For example, the manager at the Tarzana Inn arranged for me to have my regular room even though I gave him only 24 hours’ notice. The barista at Peet’s Coffee in Tarzana learned my name and favorite drink by the third day (dark chocolate orange mocha, to be specific). The nurse at the rehab center volunteered the Wi-Fi code without being asked. All these acts, among others, were not sales in a formal sense but much better than any sales pitch could ever be because they were from the heart, not a formal sales pitch whose purpose was to make money.

I am aware that the CEO's of many companies work long hours, successfully foresee future developments, understand developing technology and create successful corporate cultures. They are well compensated too.  Yet, in the vast majority of cases, customers neither know their name nor directly feel their presence. People notice and remember if the sales clerk or waitress was pleasant and made every possible effort to help, even if such effort was not part of their jobs. They notice that that they no longer had to explain how weak they wanted their coffee or how wide the shoe had to be. In short, customers appreciate being treated like individuals, not numbers, and reward enterprises that do so.

That lesson is valuable for all freelancers and small enterprises that cannot compete on price with larger companies. Customers will pay more if they are treated as special.  This competitive advantage includes the ability to pick up the phone and reach a person immediately instead of a going through a labyrinth of phone options, have a meaningful discussion of payment terms, receive an immediate solution to an issue and not have to start at the beginning with a new service representative each time. The scale of a freelance or small business becomes a strength and an advantage as compared to its large corporate companies.

Of course, this strength has to be structured, marketed and applied in order to be effective. The failure to invest time in understanding your customers, express this advantage or treat each customer as special will nullify it. This means that successful entrepreneurs must know the essentials of each of their clients, ensure that both existing and potential clients know that they will receive special service and conscientiously provide it.

Since freelancers wear all hats by definition, they only have to persuade themselves that special service is worth the extra effort, a much easier task than creating a corporate culture and hiring the right employees that will do so.  You are all employees, great and small.