Written by Victor Pleshev, Director, Interface Pty Ltd
Designers and Makers Since 1994
Part 1
TAKE ADVANTAGE OF BEING SMALL
If you’re a micro business like us (less than 5 employees), then you're competing against large, well resourced retail / service organisations for customers. This can be a daunting task. And yet you represent 96% of all businesses in Australia. You’re Australia’s largest employer-3.3 million jobs, 47% of the private sector. But most small businesses still think that they can’t compete against the big guys.
Not so!
Over the years we’ve learnt what works for us and some of it may work for you. The two of us have been running a micro business from rural Australia for thirteen years, selling the same product type, by mail order and the internet, as available in every large retail outlet and have managed to increase our market share every year. Last year we grew by 22%. This year we're growing by 33%.
How?
1. Show your customers the value and they will pay the price.
The sacred cow of selling in Australia is price. You’re told over and over to make it cheaper and sell it cheaper or they won’t buy your product.
Our products cost from 4 to 7 times more than the same type of product available in big retail outlets. But we’ve never used cheaper components or reduced manufacturing costs by cutting corners. Our customers notice this and have allowed us to increase our sales price and market share every year.
Why?
People respond to the benefits the product has for them, not the cost. The retailer just puts the product on the shelf and doesn’t really know much about it. Because you know your product, and can tell your customer why it’s better and sell them on its benefits, price doesn't become an issue.
2. Everyone is a potential customer.
People who sell are often taught not to spend time on those who aren’t going to buy now. Don’t waste your time on tyre kickers.
We treat everyone we come into contact with as potential customers, even if we know that they’re not going to buy now. We keep this in mind even if we’re just giving street directions.
A few years ago I was driving to Sydney on business. When I got to Lithgow, I saw two Rottweiler puppies on the road. Being a dog lover, and the Great Western Highway being a major artery for trucks, this was a dangerous road for these puppies to be playing on. So I picked them up and put them in my car.
In typical rural fashion, they had no collars or tags on.
I couldn't take them to Sydney with me, so I knocked on the first door I saw. Fortunately for me, the lady who answered knew the owners and was happy to take the puppies and return them to their rightful home.
Being grateful, I noted her address and next day sent her our Fitz Like A Glove™ Ironing Board Cover as a thank you gift. I had no ulterior motive other than I really appreciated not having to worry further about these puppies.
To my surprise, a year later we received an order from her for her daughter. And she's been a very loyal customer ever since.
Why?
Everyone can influence someone else, or they’ll buy later. Each person can influence three others and those three, three others each etc. The retailer is only interested in the wallet, not the customer.
Show your customers, and all the people you come into contact with, that they’re important. Then they’ll be more likely to buy your product and tell others. That’s how you’ll start building a network. A person will talk about a bad experience to 7 to 10 other people but about a good experience to only 3 people.
3. Service, service and service.
Good service takes time and costs money, so most large retailers provide the minimum amount to sell the product. They don’t consider anything else to be necessary.
We respond in detail to all enquiries, whether by phone or email. We often send samples to potential customers; always guarantee our products with a full refund including postage; organise gifts and send them direct at no extra cost; write hand written thank you notes to every customer; and reward referrals with very special token gifts.
Why?
If you love your customers, you'll want to spoil them. When you spoil them, your customers will feel pampered. You'll stand out because very few retailers give good service. So your customers will not only want to buy more of your products, but will refer you to their friends and family. If each customer convinces 3 people to buy your product, that’s 3 new customers you don’t have to look for. Good service actually makes you money and it’s the best way to grow a business.
Has this happened to you?
We bought a bread maker for an elderly relative, which required superhuman strength to pull the bread pan out of the unit. The manufacturer agreed to look at it under warranty. They then told us that this particular model wasn’t suitable for frail people and that it was up to the retailer to warn us. Not their problem.
Instead of replacing the bread maker with a more suitable model, at a cost to them of say $30.00, they lost us as customers forever and we’ve told everyone we know not to buy the brand.
This is a typical example of big business attitude and policy:- cut customer service to reduce overheads. But it’s a blessing for small business. Their weakness is your strength. Their dissatisfied customers are your future customers.
You can find out more about how we do business by visiting our website at http://www.interfaceaustralia.com. When there, click on Contact Us.
To read what our customers say about our products and service, click on Finer Points.
To contact us personally, Carol Jones or Victor Pleshev, ring Tel: (+61 2) 63 588 511 or Fax: (+61 2) 63 588 510.
Or drop us a line at:
Interface Pty Ltd
Post Office Box 139
Kandos NSW 2848 Australia
Better yet, post your thoughts on Comments below.
However you respond, we'd love to hear from you!
If you’re a micro business like us (less than 5 employees), then you're competing against large, well resourced retail / service organisations for customers. This can be a daunting task. And yet you represent 96% of all businesses in Australia. You’re Australia’s largest employer-3.3 million jobs, 47% of the private sector. But most small businesses still think that they can’t compete against the big guys.
Not so!
Over the years we’ve learnt what works for us and some of it may work for you. The two of us have been running a micro business from rural Australia for thirteen years, selling the same product type, by mail order and the internet, as available in every large retail outlet and have managed to increase our market share every year. Last year we grew by 22%. This year we're growing by 33%.
How?
1. Show your customers the value and they will pay the price.
The sacred cow of selling in Australia is price. You’re told over and over to make it cheaper and sell it cheaper or they won’t buy your product.
Our products cost from 4 to 7 times more than the same type of product available in big retail outlets. But we’ve never used cheaper components or reduced manufacturing costs by cutting corners. Our customers notice this and have allowed us to increase our sales price and market share every year.
Why?
People respond to the benefits the product has for them, not the cost. The retailer just puts the product on the shelf and doesn’t really know much about it. Because you know your product, and can tell your customer why it’s better and sell them on its benefits, price doesn't become an issue.
2. Everyone is a potential customer.
People who sell are often taught not to spend time on those who aren’t going to buy now. Don’t waste your time on tyre kickers.
We treat everyone we come into contact with as potential customers, even if we know that they’re not going to buy now. We keep this in mind even if we’re just giving street directions.
A few years ago I was driving to Sydney on business. When I got to Lithgow, I saw two Rottweiler puppies on the road. Being a dog lover, and the Great Western Highway being a major artery for trucks, this was a dangerous road for these puppies to be playing on. So I picked them up and put them in my car.
In typical rural fashion, they had no collars or tags on.
I couldn't take them to Sydney with me, so I knocked on the first door I saw. Fortunately for me, the lady who answered knew the owners and was happy to take the puppies and return them to their rightful home.
Being grateful, I noted her address and next day sent her our Fitz Like A Glove™ Ironing Board Cover as a thank you gift. I had no ulterior motive other than I really appreciated not having to worry further about these puppies.
To my surprise, a year later we received an order from her for her daughter. And she's been a very loyal customer ever since.
Why?
Everyone can influence someone else, or they’ll buy later. Each person can influence three others and those three, three others each etc. The retailer is only interested in the wallet, not the customer.
Show your customers, and all the people you come into contact with, that they’re important. Then they’ll be more likely to buy your product and tell others. That’s how you’ll start building a network. A person will talk about a bad experience to 7 to 10 other people but about a good experience to only 3 people.
3. Service, service and service.
Good service takes time and costs money, so most large retailers provide the minimum amount to sell the product. They don’t consider anything else to be necessary.
We respond in detail to all enquiries, whether by phone or email. We often send samples to potential customers; always guarantee our products with a full refund including postage; organise gifts and send them direct at no extra cost; write hand written thank you notes to every customer; and reward referrals with very special token gifts.
Why?
If you love your customers, you'll want to spoil them. When you spoil them, your customers will feel pampered. You'll stand out because very few retailers give good service. So your customers will not only want to buy more of your products, but will refer you to their friends and family. If each customer convinces 3 people to buy your product, that’s 3 new customers you don’t have to look for. Good service actually makes you money and it’s the best way to grow a business.
Has this happened to you?
We bought a bread maker for an elderly relative, which required superhuman strength to pull the bread pan out of the unit. The manufacturer agreed to look at it under warranty. They then told us that this particular model wasn’t suitable for frail people and that it was up to the retailer to warn us. Not their problem.
Instead of replacing the bread maker with a more suitable model, at a cost to them of say $30.00, they lost us as customers forever and we’ve told everyone we know not to buy the brand.
This is a typical example of big business attitude and policy:- cut customer service to reduce overheads. But it’s a blessing for small business. Their weakness is your strength. Their dissatisfied customers are your future customers.
You can find out more about how we do business by visiting our website at http://www.interfaceaustralia.com. When there, click on Contact Us.
To read what our customers say about our products and service, click on Finer Points.
To contact us personally, Carol Jones or Victor Pleshev, ring Tel: (+61 2) 63 588 511 or Fax: (+61 2) 63 588 510.
Or drop us a line at:
Interface Pty Ltd
Post Office Box 139
Kandos NSW 2848 Australia
Better yet, post your thoughts on Comments below.
However you respond, we'd love to hear from you!
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