Lessons From a Wise Friend

I was a volunteer ski patroller for a number of years.  We usually patrolled in a team of two.

One morning, Grandpa Willis and I teamed up for the day. Grandpa Willis wasn’t my grandpa or my kid’s grandpa, but he was a wonderfully, kind, and wise man who my kids called Grandpa Willis.

It had snowed about 12 inches of Cascade Crude overnight.  That thick wet snow that makes skiing a real chore.  I was, and am, a darned good skier, but I was having a heck of a time that morning.  As we stopped on the hill, I told Willis, “I’m having a heck of a time in this crude.”  Willis replied, “Ya, I just can’t get forward in this stuff.”

I thought, “Ya, I need to stay forward too,” and off I went, staying forward and skiing better.  A minute or two later I thought, “Look at him.  He’s not having any trouble skiing in this crude at all.  That was just his, very nice, way of telling me to get forward.”

If I had seen someone skiing like me, I’m sure I would have said, “You need to stay forward in the crap or it will eat you up.”

I’ve used Willis’ wonderful teaching technique many times over the years and think of him often.

Another similar technique is giving people the time, and maybe a nudge, to come up with great ideas for themselves rather than forcing implementation.  This is really effective in your Personal Development Interviews.

Here’s an example.  Johnny The Bagger is a story from the book, The Simple Truths of Service written by Ken Blanchard & Barbara Glanz.  Johnny is an autistic bagger at a grocery store who changes the entire culture of the store.

I introduced Johnny to our entire team here at American Retail Supply by giving each person their own copy of the book and asking them to read it on company time.

Now, I could have then had a company meeting after they read the book and asked each team member to come up with ideas to be Johnny.  I’m sure it would have been valuable.

But I thought it would be more valuable if I just gave them the book and let them do what they wanted.  Shortly, I had a number of people tell me about what they were going to do to be Johnny.

I’m guessing that by them coming up with what they were going to do, it had far more impact on them than me telling them to come up with something.

Now it’s time to combine this teaching idea with “Atta Boys”.  See Secret #32 in The Happy Customer Handbook.  When someone shares what they are doing to become “Johnny” share it with your entire team and watch other “Johnnys” appear.

You can get my hardcopy book (not an e-book), The Happy Customer Handbook, 59 Secrets to Creating Happy Customers Who Come Back Time and Time Again and Enthusiastically Tell Others About You at www.TheHappyCustomerHandbook.com.  Your cost is $2.97 and that includes shipping and handling.

What Goes Around Comes Around Especially When Disaster Strikes

“How the Make-You-Happy Management System Will Help You and Your Business When Disaster Strikes”

What Goes Around Comes Around is one of my wife – Patty’s – favorite sayings, and since we’ve been together since 1970 I’ve heard her say it thousands and thousands of times.

The Make-You-Happy Management System (MYHMS) puts a huge emphasis on respect for clients and customers.  Remember, in the MYHMS clients are the people that most businesses call customers, and customers are your internal customers; team members, vendors, the FedEX guy, the mail man, etc.  This leads to treating all of these internal customers like… CUSTOMERS, and you know, what goes around comes around.

On July 20, 2003 we had a fire at our distribution center in Denver that destroyed everything.  Twenty thousand square feet of inventory, office supplies and fixtures, computer, everything gone, overnight.  I remember the date, because it happened on my 29th wedding anniversary.  Little did I know how much one of Patty’s favorite sayings would affect us over the next few months.

Let’s look at just a few aspects of the MYHMS and how they helped us during this disaster in Denver:

  • The MYHMS with its Z-theory management and emphasis on not only listening to your team members but empowering them creates team members who know they are incredibly valuable, feel appreciated. This, along with the philosophy that all of us who work in a MYHMS business are customers to each other leads to people who truly enjoy their jobs. The way the team in Denver, and our other locations pulled together to get the job done through this was amazing.
  • At the very heart of the MYHMS is a fanatical devotion to Make-You-Happy Client Service. This created loyal clients who rallied around us.
  • The idea that your vendors are your customers creates vendors who help you when you need it.

When you have all of this going for you and have a disaster you’ll truly find out that, “What Goes Around Comes Around.”

Team Members Come To The Rescue

On the sales end, we were fortunate in that we had a show room at the Denver Merchandise Mart.  We added another phone line and were up and going there right away.

Our warehouse staff was concerned that they may not be able to work while the Denver distribution center was out of commission.  I assured them that we would keep paying them.  They could have easily just sat back and collected the money over what ended up being about a month, but each of them offered to take their vacation at that time.

In addition, as soon as anything came up that they could do they went at it full speed.  They shopped for warehouse racking, found storage units, and shopped for new office furniture.

When the time came to start putting things back together the entire staff in Denver came through like gang busters to get us up and going, working weekends and extended hours.

In addition, our staff in Kent came to the rescue also.  We shipped most of the orders that would have come from our Denver distribution center out of Kent.  Like Denver, when needed, our staff in Kent worked long hours, with a great attitude to get the job done.

In addition, our entire staff, in all of our divisions, did an incredible job keeping up with all of the different shipping arrangements that needed to be arranged to take care of clients and get product to them.

I will forever be grateful to our team members… What goes around comes around.

Vendors Come To The Rescue

Our vendors were absolutely incredible!

As a distributor, we buy product in huge quantities, often truckloads.  We store these and ship them in smaller quantities when our clients need them.  Some of our vendors will allow us to drop ship smaller quantities, but they have extra charges to do this.

While we shipped a lot of orders for the mountain states and east out of Kent and charged our clients what the freight would have been from Denver, with the loss of the entire Denver inventory we didn’t have enough inventory in Kent to do this all of the time.

Our vendors came to the rescue and, every one of them, agreed to waive their minimum order quantities and extra charges and ship to our clients directly when needed.  This was a huge commitment from them and their teams as they are simply not set up to do this in the quantities that they did for us.

I will forever be grateful to our vendors… What goes around comes around.

Clients Come To The Rescue

What a time to find out how loyal our clients were!  Things took longer.  For the most part things ran well, but some things simply took longer.  It took longer for us to let them know when the order would ship because we had to be sure whether we were shipping it from Kent or the vendor, whether it was something that could drop ship from the vendor or not, and lots of other new questions.

And then it still took longer, to get the product from Kent rather than Denver.  Most often the vendor simply couldn’t get it shipped the same day like we do.

We were amazed and thankful that our clients (Continued P5 – Disaster Strikes)

stood by us.  In fact, we got letter after letter thanking us for taking such good care of them under the circumstances.

I will forever be grateful to our clients… What goes around comes around.

What Goes Around Comes Around Negatively Also

Over the years I had been approached numerous times by a business associate to buy his business.  He gave me an idea of the price he was looking for and I always told I didn’t think it would fit at the time.

One day he called me and said he wanted to sell the business.  I again told him I again that I really didn’t think it would fit.  He replied, “I’m going to make you a deal you can’t refuse.”  So, I listened.  It was a deal I couldn’t refuse.

The other owner and I had the same supplier for one of our product lines.  In our case they were a significant and good supplier.  For the other company this supplier represented the huge majority of his business.

Over the years the other owner talked to me about all of the problems he had with the supplier and in fact showed me some of their correspondence.  I couldn’t believe the derogatory tone of the letters from the owner of the business who wanted to sell to the supplier.

He certainly had no idea that he and the supplier were in fact on the same team.  He had no comprehension that he should treat a supplier like an internal customer

I found out during the negotiations to buy the business that after years of this derogatory treatment the supplier decided he simply wasn’t going to sell to the other business anymore.

And, in this case the guy who wanted to sell the business did not have an alternative supplier and it was going to take a good deal of time to find one.  The seller knew I had a good relationship with the supplier and that the supplier would sell to me if I bought the business.  The seller also knew that his list of potential buyers was very small, because the seller would not have had a relationship with the new buyer and would see it as still dealing with the old owner.  What goes around comes around.

So yes,

I got the company in a deal I couldn’t refuse

It didn’t surprise me as we trained our new team in this newly acquired business that our Make-You-Happy Management with its emphasis in respect for everyone was a foreign concept.  And it didn’t surprise me at all to learn that the old owner was very much an X-theory manager with the attitude of I’m the boss, I’m the manager, I’m the owner.  I built this business with my blood sweat and tears do what I tell you to do and that’s that!

The new team was thrilled to hear about the new management system.  What goes around comes around.

You can get my hardcopy book (not an e-book), How to Control Your Business and your Life, Proven Secrets to Creating Highly Productive Teams at www.HowToControlYourBusiness.com.  Your cost is $2.97 and that includes shipping and handling.

That Complainer May Be Your Next Great Leader

Here’s an excerpt from John C. Maxwell’s book, The 360 Degree Leader.

 

“Have you ever found yourself saying something like, “You know, if I were in charge, we wouldn’t have done this, and we wouldn’t have done that. Things sure would be different around here if I were the boss”? If so, let me tell you that there’s good news and bad news. The good news is that the desire to improve an organization and the belief that you’re capable of doing it are often the marks of a leader. 

 

Andy Stanley said, “If you’re a leader and leaders work for you, they think they can do a better job than you. They just do (just like you do). And that’s not wrong; that’s just leadership.” The desires to innovate, to improve, to create, and to find a better way are all leadership characteristics.

 

So next time you’re complaining about that complainer, you might want to consider that she may just be what you need as a leader.

I tell our mangers in our divisions away from the home office that they, at times, need to be a pain in the butt for me.  It’s easy to tell who is and who is not really trying to improve things and grow.  They are the people who tell you things you don’t always want to hear.

 

Here’s an excerpt from an email I sent to one of our division managers who, in a previous email had apologized for “causing a problem”.

 

“Remember I told you a good division manager would be a pain in the butt at times.  You do that well. 

 

Seriously, thanks for the great comments.  I don’t need a yes lady and I certainly don’t want the responsibility for coming up with all the good ideas or fixing everything myself.”

 

Now, I wouldn’t say it like that to a newer person who didn’t know me, but I could with this division manager.

 

With The Make-You-Happy Management System you don’t just allow someone to complain, you require them to help with a solution when they see a problem.  If they are constantly coming up with problems but don’t have solutions, they just may be an immature complainer and not a true helper.  If that’s the case, you need to quickly train them to have a solution when they see a problem or fire them.   

 

But if it is someone who is uncovering true problems and opportunities to improve, that’s what the Make-You-Happy Management System is all about.  With these people, do not always require them to come up with a solution.  A huge principle in the Make-You-Happy Management System is that a few heads are better than one in solving problems and taking advantage of opportunities. 

 

But does that complainer have what it takes to be a leader?  Sure you want a leader that can recognize problems and opportunities, but they also need to be tactful.  So keep your eyes open (or maybe better yet, your ears) for that person who thinks they can do the job better than you.  You just might have a great leader.

 

Follow the link below and discover How to Control Your Business and your Life with Proven Secrets to Creating Highly Productive Teams

 

https://americanretailsupply.wistia.com/medias/jl3pr8dbpk

 

Stay in Shape and Live Your Bucket List NOW

I was talking with Grant Miller, the owner of Sun Your Buns Tanning Salons in Eire, Pennsylvania, about the Make-You-Happy Management System before I brought it to market and he said, “You’re showing business owners how to ‘Live Their Bucket List Now.'”  Hench, the name of this newsletter.

In living your bucket list I suggest you have at least one bucket list item tied to your health.  With that, instead of eating right and exercise to just stay healthy, you’re eating right and exercise to achieve something specific on your bucket list.

Here’s an example.  We live on a lake in the Seattle area and I’ve been a pretty good water skier since I was in my early teens.  One of the things on my bucket list was to water ski a hard, good, strong slalom run on my 60th birthday.

That meant I needed to stay somewhat flexible, and maintain my upper and lower body in good shape.

In July I crossed “ski a hard, good, strong slalom run on my 60th birthday” off my bucket list.

So now I can relax, and let myself go right… NOT!

My next ‘staying in shape’ bullet list item is, ‘ski (snow) Exterminator, hard and strong with my grandson, Carson.’

Exterminator is called exterminator for a reason.  It is STEEP.  It will be about 8 years before Carson can safely ski Exterminor.  That means I’m going to have to stay in great shape until I’m 68.

But Wait, There’s More…

Whitney turns 2 next year, so it will be time for her to start skiing and of course, I need to ski Exterminator with her too.  So… I’m going to need to stay in great shape until I’m 71, so I can ski Exterminator hard and strong with her!

Learn how to live your bucket list now when your read my book, “How to Control Your Business and Your Life.”

You can get my hardcopy book (not an e-book), How to Control Your Business and your Life, Proven Secrets to Creating Highly Productive Teams at www.HowToControlYourBusiness.com.  Your cost is $2.97 and that includes shipping and handling.

All Wealth is Based on Systems

All Wealth is Based on Systems

My friend and mentor Dan Kennedy says, “All Wealth is Based on Systems”

When it’s time to sell your business, what is it worth if you’re critical to it?  Not much!

What if you’re not only, not critical, but the business gets better whether you’re there or not?  What is your business worth now when it’s time to sell?  You know the answer.

When you get Buy-In from your team, have Systems in place for everything you do, an effective Performance Feedback System, and Systems to consistently deliver world class customer service your business will improve whether you’re there or not.

The goal I have with all of my clients is to make them irrelevant to the day-to-day, then week-to-week, and then month-to-month operations of their business, so they can create real wealth.

A few years ago I went on a three-week Mediterranean cruise.  When I left I told our operations manager what cruise line I was on, and the ship, that’s it.

I knew I wasn’t going to get a phone call.  That’s why I didn’t need to worry about giving her any more information, or getting an international phone number for three weeks.  For the last 20 years, while on vacation, I’ve never gotten a phone call from work.  That’s the freedom you get when you have the proper Systems in place.

But what’s even better than no phone calls, is that when I got back, the business was running better than when I left.  When you have the right systems in place, that’s what happens.

In the E-Myth Revisited Michael Gerber says,

“Let systems run the business and people run the systems.  People come and go but systems remain constant.”

One of the reasons systems give you true freedom is that when you have the right systems in place, and you have turn over in your business, things continue to get better rather than having to learn everything all over again.

When you hire someone, over time, the knowledge the person has at that job rises.

Without Systems (everything in writing) what happens when they leave?  The knowledge is gone and someone is back to training the new person one-on-one in everything that needs to be done.

Over-time you’re lucky if you make any progress.

But what if you have systems?  That is, written documentation for everything that the person does.  What happens to knowledge when someone leaves and you have systems?

It’s that simple.  When they leave, and everything they do is documented, how hard is it to replace the person and get the new person up to speed?  Just think of the amount of time you’ll save.

Watch this hour long video to Discover You Can Create The Systems You Need to Become Wealthy:

Exposed!!! Owner of Company Named, “Best Business To Work For In Washington State” is a “Ruthless Manager

It was reported today that Keith Lee, the owner of American Retail Supply, which was named the Best Small Business to Work for in Washington State by Washington CEO Magazine is a Ruthless Manager.

How is that?  How can the owner of the company named “The Best Small Business to Work for in Washington State” now be revealed as the co-author of the New Edition of No B.S. Ruthless Management of People & Profits?

It was revealed today that Dan Kennedy, the author of numerous No B.S. books, chose Keith Lee as the co-author for his newest edition of No B.S. Ruthless Management of People & Profits.

Our intrepid reporter, Lois Lane, caught up with Mr. Lee as he was sneaking into his office today and asked him how he could head the Best Business to Work for in Washington State and be a Ruthless Manager.

Mr. Lee replied… “I don’t choose the names for Mr. Kennedy’s books, and Dan and I don’t agree on everything, but when it comes to managing a business and the people in it; we agree much more than we disagree.”

Keith pointed to page 14 in the No B.S. book where Dan Kennedy writes about business owners, “And one thing they all have in common: gripes, complaints, disappointments, frustrations, pain and agony with regard to their employees.  Much of this has to do with unreasonable expectations and a misunderstanding of the actual nature of employer-employee relationships.  Some of it lies squarely at the fault of the business owner for failing in one or more of the Three Requirements for Having Employees: Leadership, Management, Supervision.”

Mr. Lee continued, “While I don’t think the nature of the employer-employee relationship need be as adversarial as Dan, the expectations and the nature of the relationship needs to be addressed during the employees’ first day of employment.  With our DVD training business owners who use our Make-You-Happy Management System set those expectations during the first hour of employment.”

Mr. Lee agrees wholeheartedly with Mr. Kennedy’s statement that business owners failing in one or more of the Three Requirements for Having Employees is the cause of many of their headaches.

Mr. Lee says, “Business owners usually lead, manage and supervise as they were led, managed and supervised, or how they learned in business school; neither of which work very well.”

Performance Reviews Suck

Mr. Lee pointed to Performance Management.  Every business owner knows that they need a Performance Management System but the only type of system they know about is Performance Reviews and they know that Performance Reviews Suck.  With this the business owner continues with Performance Reviews knowing that they suck, or they stop them altogether, and are left with no Performance Management System.

Mr. Lee informed this reporter than Dan Kennedy agrees that Performance Reviews are “like looking in your rearview mirror to drive your car.”  Mr. Kennedy’s tells the story of how the late Mike Vance, who worked personally with Walt Disney on the original Disney University and other projects, laughed and scoffed at standardized annual or quarterly ‘performance reviews.”

Mr. Lee’s management system replaces Performance Reviews with Personal Development Interviews.

Mr. Lee went on to explain.  “Just listen to what they’re called.  Which would you rather give… a Performance Review or a Personal Development Interview?  Would you rather review someone’s performance, or develop someone?

What if you’re on the receiving end?  Would you like your performance reviewed or would you rather have someone work proactively to develop you?

Which do you think gets better results, developing people and coaching them or reviewing their performance after the fact?

Traditional management focuses on catching people doing things wrong.  If every time I do something wrong the boss catches me, but he doesn’t catch me when I do things right, my creativity is stymied and I stop using my creativity, stop stepping out front, and stop helping the organization grow by using my creativity.

Conversely, when we start catching people doing things right, we encourage empowerment.  People start to do things in the organization.  Productivity improves on an ongoing basis.  Improvement doesn’t just come from management but from the whole organization interacting with each other and picking each other up.  The organization is permeated with a motivating environment.

Another benefit of this type of management is you create a learning organization.  Researchers tell us that as we move forward, people are going to stay with organizations where they have an opportunity to grow and learn.  There are going to be many more skilled positions than there are people to fill them.  And if there are a lot of skilled positions and not enough people to fill them, money isn’t going to make the difference.  Money is going to be a given.  You’re going to have to pay in the competitive market to get good people.  But they want to work in a place where they can grow, where they can enjoy themselves, where they can use their creativity to help the organization grow, and that happens in a learning organization.  That’s exactly why my company, American Retail Supply was named the Best Company to Work for in Washington, by Washington CEO Magazine.”

You can get Keith’s hardcopy book (not an e-book), How to Control Your Business and your Life, Proven Secrets to Creating Highly Productive Teams at www.HowToControlYourBusiness.com.  Your cost is $2.97 and that includes shipping and handling.

Ya Sure…George S. Patton Was a Make-You-Happy Leader

Ya Sure…George S. Patton Was a Make-You-Happy Leader

by Keith Lee

Managers in the Make-You-Happy Management System are coaches, cheerleaders, facilitators, and nurturers of champions, rather than cops, referees, and nay-sayers.

This leadership principle is from the magazine “Armchair General” available from Armchair General, LLC 386-246-3456.  Let’s learn about management from Old Blood & Guts, George S. Patton, America’s greatest World War II battle commander.

General George S. Patton Jr. studied – and practiced – leadership all his life.  What “Old Blood & Guts” left behind is a priceless leadership legacy containing a wealth of material for today’s military and business executives.

Providing “Mission-Type” Orders

An organization benefits from both the individual and collective intelligence and experience of its members.  Too often, leaders attempt to provide a solution without tapping into the wisdom and abilities of those in the command structure.  Patton’s rapid, slashing, war of maneuver campaigns in World War II were propelled by issuing “mission-type” orders – assigning broad objectives and letting subordinates work out the details.

He advised, “Never tell people how to do things.  Tell them what to do and they will astonish you with their ingenuity.”

The Make-You-Happy Management System was created out of my frustration in having no time for myself, no time to work on the important things in my business because I was babysitting employees and making every King Solomon decision in the company.

In order to alleviate this you need to issue “mission-type” orders:  Assign broad objectives and let subordinates work out the details.  You’ll be amazed at the results and the freedom you achieve.

Demand Discipline

Discipline is the bedrock characteristic of any successful military unit or corporation.  Commanders and executives who want to win must teach it to subordinates and then demand that they act accordingly.  The fiery and headstrong Patton may have suffered lapses in regulating his own behavior from time to time, but he always understood that the controlled actions of his units remained the key to battlefield success.  “You cannot be disciplined in great things and undisciplined in small things,” said Patton.  “There is only one sort of discipline – perfect discipline.”

As this article suggests Patton may have suffered lapses in his own behavior in this regard, but we can still learn from this principle.

While I’m not suggesting peeling potatoes or forcing your Team to run miles when they don’t perform, I think that it is absolutely imperative that your Team understands your core beliefs and they understand that those core beliefs are unwavering.

Here’s an example.  Everyone in our company understands that the minimum level of Customer Service that is acceptable is “truly appreciative service.”  And while we may fail at this at times in the eyes of our Client, everyone understands that indifferent, or heaven forbid anything approaching rude service means immediate termination of employment.

Another example is seen in our company values.  Again, everyone understands that one of our values is, “We will do nothing illegal or unethical.”  If someone decides to consciously do something illegal or unethical they will be dismissed.

Take Timely Action

Perhaps because they fear failure, commanders and business leaders often become timid in their decision making, delaying final orders until the plan in “perfect.”  Patton, however, recognized that seizing the unforgiving moment is vastly more important to success than postponing an action until the ideal plan is devised – too late to produce positive results.  Remember Patton’s admonition, “A good plan executed now is better than a perfect plan executed next week.”

One of the basic tenants of Make-You-Happy Management is empowering your Team to make decisions.  You’ll obviously want to give some guidelines concerning those decisions, but as you and your Team understands the system and each other, those guidelines can be very broad.

For instance, while using our L.E.A.R system to take care of upset Customers, after finding out what the Customer wants to make them happy, the guideline for our front line Team member is unless it’s NUTS, do it!”

Instill Self-Confidence

Self-confidence on the battlefield of in the boardroom is crucial for success.  Patton created within his Third US Army a tradition of winning and a corresponding leadership climate that let his Soldiers know they were second to none.  The proudly exclaimed, oft-heard cry of the Third Army Vets, “I fought with Patton!” testifies to his ability to encourage and instill faith in oneself.  Patton wrote, “The most vital quality a Soldier can possess is self-confidence; utter complete and bumptious.”

When you empower your Team to make decisions and take care of Customers, they will have the confidence they need to create Happy Customers.

But what happens when your Team Member makes a bad decision?  In the Make-You-Happy Management System the first thing to do is look at your systems to make sure they are not getting in the way of making a better decision.

Once you find the system is OK, then you need to RETRAIN and not beat up the Team Member.  The first thing you need to do is thank the Team Member for making a decision.  Then and only then, discuss how a better decision might have been achieved.

Motivate Subordinates to Excel

The notion that Patton merely drove his men to excel through fear and intimidation is a gross misinterpretation of both his motives and his methods.  Few contemporaries understood as well as Patton how to motivate and get the most out of the American Soldiers.  His leadership philosophy regarding this point is best summed up in his characteristically blunt saying, “We herd sheep, we drive cattle, we lead people.  Lead me, follow me, or get out of my way.”

Remember, managers in the Make-You-Happy Management System are coaches, facilitators, cheerleaders, and nurturers of Champions; not cops, referees or nay-sayers.

L’audace, L’audace, Toujours L’audace!

Finding and adhering to a core belief, as Patton certainly did, will help guide leaders both professionally and personally.  One of Patton’s favorite French sayings, ” L’audace, l’audace, toujours l’audace!” translates to “audacity, audacity, always – audacity!”  Both military and business leaders would be well-advised to follow Patton’s guidance and never fear to act promptly and decisively on reasoned, calculated risks.

The Make-You-Happy Management System starts with your Company Vision which is the combination of your values and Beliefs.  Whatever those Values and Beliefs are it is critical that they are strong enough to carry you through tough decisions.  Often, when I have a hard time with a decision that answer is clear when I review our Company Vision.

How to Work With an Upset Client

Train All Team Members Who Come Into Contact With Clients How to Work With an Upset Client

By Keith Lee

We’ve used this system to take care of upset clients in all my businesses since 1991.

I suggest you train your front line people to implement the LEAR Principle and the “Make-You-Happy Guarantee” (which I’ll explain later).  You don’t need to advertise this new guarantee when you start.  Simply implement it and see how it goes.  If it works, go with it.  If it doesn’t work, go back to what you have now.

Here is the LEAR Principle

L is for Listen

Listen and don’t interrupt.  There are a lot of reasons we don’t interrupt upset clients.  We don’t interrupt because, number one, it’s rude.  Another reason is that when we’re upset, you and I and everyone else do the exact same thing: We practice what we’re going to say.  And we practice what we’re going to say from the beginning.  So if you interrupt, you’re probably just going to have to listen to the whole thing all over again from the beginning.  Then of course we listen to the client because we respect the client and know that they are, in fact, the boss.  They pay all of our bills.  They give us every raise we’ll ever get.  They pay for our kids’ education and for everything we own.

E is for Emphasize

Empathize means to put ourselves in their shoes.  Say something like, “Wow.  I understand why you’re upset.  I’d be upset, too” or, “I’m sure glad you told me that so we can do something about it.”  Or simply, “Thanks for telling me.”

A is for Ask

Ask, “What can I do to make you happy?”  Now, most of the time you don’t actually have to ask.  Often times it is obvious.  But, sometimes you will want to ask.  The main thing though, is the idea and your attitude of “What can I do to Make You Happy?”  It’s your job to make the client happy.

R is for Resolve

You will want to give your team members guidelines as to what they can and can’t do right then and there to make the client happy.  If what the client wants is reasonable, and it is within the guidelines you give, your team member needs to make the client happy.  Train them to take care of the client right then and there.

I know if is easy for me to say without an angry person in front of me to implement this LEAR Principle.  It’s a lot more difficult to implement calmly and rationally when someone is possibly screaming at you or showing a huge amount of disfavor towards you.  You need to train your team members to understand that the client is upset at the situation and not with them.  Teammates need to be trained to not take it personally.  They need to understand that the client is upset with the situation and not them personally.  Train your team members to take a deep breath, and tell themselves, “This is not me. It’s the situation.”  Train them to talk to themselves and make sure that they are the person who stays calm and collected.  Train them that there is never an excuse ot get angry or short.

If the client is terribly abusive with swearing or something like that, your team member needs to be trained to say, “Sir, if you could watch your language I’m sure I can help you,” or, “Ma’am, if you want to watch your language I’m sure I can help you.”

Now, what if what the client asks for is above your guidelines or is completely unreasonable?  In this case you simply say to the client something like, “I’m going to have to get a manager to see if we can do that.”  Or, “Let me see if my manager can take care of that for you.”  Or, “You know, we don’t have a manager here at the moment who can approve that right now, but can I get your phone number and I can have them get back to you tomorrow morning or whenever is most conventient for you?”

In order to use the LEAR Principle effectively I suggest you empower your front line people with your “Make-You-Happy Guarantee.”  I believe “Make-You-Happy” is the best and least costly guarantee for your business.

Here’s our Make-You-Happy Guarantee:  “When a client has a problem, American Retail Supply team members are trained to ask, ‘What can I do to make you happy?’  In 43 years we have never refused a client’s request to make it right.”

Does this mean we’ll do anything?  Just about.  We’ve never refused a client’s request to make it right yet.  But my guess is that someday someone will ask for something so outrageous that we don’t do it.  Then I won’t be able to say, “In 43 years we’ve never refused a client’s request to make it right.”

I’ve given my seminar, “How to Compete with the Mass Merchandisers” to many different organizations.  Each time I ask retailers if any have a guarantee similar to ours.  In every seminar a few people raise their hands.  Then I ask them how the guarantee works.  Every person, every time answers, “Great!”

Then I ask each of these retailers with the What Can I Do To Make You Happy Guarantee, “How often do people ask for more than what you would be willing to give them?”  The answer is “Almost never,” or “Never!”

If people never, or almost never ask for more than you would be willing to give them, why ask them to jump through hoops, or talk to a manager to give them what they want?

This guarantee will most likely cost you less than a guarantee in which you make an offer to the client.  More often than not the client will ask for much less than you would have offered.  This savings will more than make up for the few times that clients are unreasonable.

You certainly will want to give your staff some guidelines.  Give them a limit as to what they can do without a manager’s approval.  Then, unless the request is ridiculous, train them to take care of the client on the spot!

Again, if the request is ridiculous or over their limit, train them to say something like, “I’m sorry, but I’m not authorized to do that, but if I can get your name and phone number I’ll be sure that our owner gives you a call tomorrow.”

So What Happens When Someone Asks for Something Really Unreasonable?

In my next blog post, I’ll go over some tips on what to do in the rare event that someone asks for something really unreasonable. Stay tuned…

In the meantime, are you wondering where these guidelines come from? And how do you handle other things like greeting customers, talking with customers on the phone and working together as a team to deliver better-than-average customer service? Click here to find out more about how we do this in our businesses.

For a limited time, you can also get a free copy of my book – The Happy Customer Handbook.

Beating The Odds – Part 2

Beating The Odds – Part 2

We’re picking up our conversation on one of our great clients at American Retail Supply, McLendon’s Hardware, which has seven locations throughout the Seattle area.  To review part one, refer to the last blog post (Beating The Odds).

Competition Makes Them Better

I’ve done a lot of research over the years on how to compete with the national chains.  I’ve been sharing that information with my clients in my monthly newsletter for 21 years and my bi-weekly email retail tip since 2004.  In my research I found that those companies that survive and thrive look at the new competition as a challenge to get better themselves.  McLendon’s has done this also.

For years McLendon’s knew they should be looking into better automating their inventory and point-of-sale computer system.  When the retail giants came to town they made the investment in their future but also were sure to invest in new software that really helped them stay focused on their customers and not allowing the software to take away from their exceptional customer service.

Other areas in which McLendon feels the competition has made them better are display, advertising and pricing.  McLendon says, “We never really concentrated on end caps other than to put things on them.  Now we have a person in every store hire just to do that.”

McLendon’s realizes that with the big guys right down the street they need to be much more aware of price competition so they can be seen as having “good” prices.  Their advertising person consistently pushes to have “hot buys” in their ads.

What can you learn from the competition to make you better?

Variable Pricing Structure

McLendon refers to his variable pricing structure as A item, B item, C item pricing.  “A” items are very competitive, commodity items, that everyone uses and everyone knows the price.  McLendon knows his prices must be “good” on these items.  They don’t need to be the same or lower than the retail giants, but they need to be very close.  “B” and “C” items are not as competitively priced and the company can get better markups.  Sadly, too many independent retailers refuse to accept this type of pricing strategy.

Buy Right

McLendon’s, like many who compete well with the mass merchandisers, is a member of a buying group.  They buy a lot of their product though True Value.  With the exception of direct import items, McLendon feels their costs are in line with the retail giants.  But he believes the retail giants often get advertising allowances that he does not get.

Don’t Compete Directly With the Retail Giants

McLendon’s knows their niche-huge selection and great service.  In addition, McLendon’s now very carefully considers location as a niche when opening a new store.  When opening a new store McLendon asks, “Is it their market?”

The retail giants in the hardware business like to be near freeways and locations that attract large number of people.  McLendon’s looks for a niche that is not close to freeways, has a good population base, but isn’t a place that the retail giants are likely to put a store that requires a huge population to support.

This is huge.  How can you position your product and/or services to go where the competition ain’t?

Brand Names

A strategy retailers like to use to compete with the retail giants is to carry brands that the giants don’t carry.  In the past, McLendon’s tried to carry brands that the big guy didn’t carry.  With the number of competitors now in the market, and the huge popularity of a few brands in the hardware business, that strategy doesn’t really work.  As a whole, McLendon’s tends to carry quality brand products.

Hours of Operation

Historically hours of operation for McLendon’s shows the company’s long roots and reflect the work ethic in the community – early to bed, early to rise. The company has always opened early and closed early.  Today they’re finding they need to extend those hours.

Store used to close on Sundays.  Today, Sunday is the company’s second busiest day of the week.  McLendon’s stores used to close at 6:00 PM.  Now they close at 8:00.

Temporary Sales Decline

McLendon’s has found that retail giants moving into their market is a cause for concern and an opportunity to improve, but it is not a cause for panic.

Like retailers across the country, McLendon’s has found that stores sales drop somewhat when a retail giant opens a store close to McLendon’s.  but like many independents, McLendon finds that within nine months sales are back to where they were before and growing… maybe not growing as fast as they did before the big guys moved in, but growing.

You Can Thrive

Mike McLendon and McLendon’s Hardware have proven that yes, you can thrive in the shadow of the retail giants and compete with them, but not directly against them.  McLendon’s focuses on a broad product line, great customer service, and a niche location to not only survive, but thrive in the shadow of retail giants.

Discover more ways to improve your business by requesting one of my free books: How to Control Your Business and Your Life and The Happy Customer Handbook

by Keith Lee

Beating The Odds

No matter what business you’re in, you likely have competition from a discounter, national chain, huge franchise, or something along those lines.  Regardless of the competition or the industry we can all learn from those who survive and are thriving in the face of this competition.  This article is about one of those businesses who are beating the odds and what you can learn from them.

You might know that I own American Retail Supply (www.AmericanRetailSupply.com) We provide independent retailers with the things they need to run their stores – the bags they give you, displays, fixtures, marking equipment, point-of-sale computer system, etc.

Let me ask you a few questions. Think back 20 years, or even 10.  How many independent drug stores do you see now versus 20 years ago?  Pet stores?  Department Stores?  Office supply stores?  Hardware stores?  The list goes on and on, and the answer is the same:  NOT MANY.

In those 20 years, while the market has shrunk dramatically, our sales at American Retail Supply have grown more than 10 times.  But this month’s article is not about my business, it’s about one of our clients who has beaten the odds and huge competition from the “BIG GUYS” and not only survived, but thrived.

McLendon Hardware opened in 1926.  Today they have 7 stores and continue to grow while Home Depot and Lowes blanket the market area with new stores.  At the same time that the entry of these retail giants forced the biggest regional hardware chain into bankruptcy, McLendon’s continues to thrive and open new stores.

How do they do it?  How does McLendon’s Hardware continue to grow, survive, and thrive while the old leader in the market has gone bankrupt?  I interviewed the president of McLendon Hardware, Mike McLendon, a few years ago to find their secrets, and you can use these same secrets to thrive in your market place.  Throughout this article I’ll use italics to ask you questions about using the ideas previously discussed in your business.

Find a Niche and Fill It

McLendon’s niche hasn’t changed in 87 years… Their niche – SERVICE, SELECTION, and LOCATION.

McLendon says they see themselves as being more family oriented than their competition.  That makes sense coming from an 87 year-old family business.  McLendon says, “People come to a hardware store because they have a problem, and they want to be able to go home and fix the problem themselves.  And they want to be able to understand something about the problem.  That’s one of the reasons we stay in business.  People think we can help them with their problem, they get the solution, go home and fix it, and they’re happy.”

Seems kind of simple, right?  Give your niche what they want.  McLendon’s wide breadth of products and friendly, helpful staff, insures that customers go home with solutions that make them happy!

What makes you different?  As my mentor Dan Kennedy says, “Why should someone do business with you versus every other option in your business category?” 

I shop at McLendon’s Hardware.  Here are just a few examples of their selection and great service.

I had a chip in my bathroom sink that I wanted to repair.  I went to the national chain about a half mile from my house.  They had one color – white.  My sink is cream.  I drove 5 more miles to McLendon’s.  They had the exact color match and 50 other colors!

What do you offer that your clients can’t get from the competition?

I needed a Philips head screw driver bit for my power drill.  I went down to McLendon’s, and like always quickly found someone to help me.  She suggested a bit and then said, “Here, try this one also.  We just got them in.  You can have it for free.  Let me know what you think of it.” Are you kidding me?!?!

It really is the little things.  What can you do to surprise and delight your clients with the little things?

I traced a leak in my hot water tank to the flexible copper tubing water inlet hose.  I took the old hose to McLendon’s where again someone was ready to help me.  Instead of just handing me the hose and letting me go, the sales person took an extra 30 seconds to tell me exactly how to install the hose.  His information made the job much easier and the repair will last longer.

What information, education, expert advice can you give to you clients that your competition doesn’t?

I’ve learned my lesson.  I now drive right past the national chain and go a few more miles to McLendon every time.  For me, McLendon is right on the mark.  When I go to other hardware stores, because it’s convenient, I often leave discouraged.  When I go to McLendon’s I go home with the solution to my problem.  McLendon tells me he often hears customers saying, “I should have just come here in the first place.”

What can you do to create loyal customers who, even if more convenient, don’t even think about going somewhere else?

Finding Good People

With the national chains coming into town, finding and keeping god employees has become a bigger challenge.  The big guys can often afford to pay more.  But McLendon’s relies on great help to send customers home with solutions.  How do they do that?

McLendon’s attracts employees who want to be more than just a clerk.  Trades people are attracted to McLendon’s.  They have a tool guy who was a contractor and didn’t want to be a contractor anymore.  He likes his job, he likes the people, and he gets the regular hours he wanted.

A journeyman electrician hurt his back and couldn’t work as an electrician, so now he works at McLendon’s.

The new store manager at the Kent store started at McLendon’s when he was in high school.  McLendon finds that people may leave the company to go to work for a new competitor, but they often come back to McLendon’s.

What can you do to attract the kind of employees you want, and will give your customers Out-Nordstrom Nordstrom Customer Service, without having to pay premium wages?

There’s more to this article, but you’re going to have to wait until part 2 of this series next month when I reveal the six core strategies McLendon’s is using to not only survive in the shadow of the retail giants, but thrive.  Stay tuned!

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