How to Sabatoge Your Business Success

Posted by Professional Writing Services

June 26, 2008

When I first moved to the mountains I was shocked at the reception. Other chamber members and residents told me in no uncertain terms–”We will see if you are around in a year and then will do business with you.”

Wow, talk about a negative reception! Can you imagine everyone refused to do business with a newly opened restaurant, shop, or service?

What I discovered was that many new businesses and residents head for the hills (mountains really) and then are gone in under two years time.

But even though they shocked me with their statements, the attitude of established residents is one of loyalty–but you have to EARN it and keep it.

There are many businesses who don’t think that is part of the business model and so they sabotage their success.

The point?

Simple mistakes can sabotage your business success.

Here are a few real life examples of businesses that have lost a lot of regular customers…and their referrals which is a HUGE traffic builder in this area.

How is this for failure? A recent pet business closed down in about six months after opening.

They failed to study the location and the demographics of the area and so failed miserably. In the end, the store was bringing in less than $50 per day–not enough to make rent, utilities, payroll, or inventory costs.

Number One:

As a business owner in an area that is vulnerable due to low visitor counts, inclement weather, and road conditions–I try and support the local small business owners as much as possible.

One of the local stores sells business supplies and pricing is steep when compared to online options or trips to larger stores down the mountain. Even so, I find things to purchase anyway.

So I didn’t worry about it when one of the clerks sold me the wrong lead size for my mechanical pencils. She said I could bring them back if they didn’t work out–and boy was I surprised when the owner pitched a fit over my attempt to return them.

Total cost to her? About $5 for the product–lots more for due to the ill will created. She lost my business forever. You see she didn’t want to take them back and made it into a big drama.

As I was leaving–only then did she offer me a store credit

At that point I didn’t want it because I can go to the local mass market store or order online easily and there isn’t any drama.

Was it worth it to be penny wise and pound foolish? I doubt it.

Number Two:

Not too long ago there was a scene locally straight from the set of No Reservations–a movie about a temperamental chef that gets so upset that she takes a raw piece of meat out to a diner and slams it down in front of him before walking out.

In this case, it was fish and the patron was a female. The chef splashed the diner and harsh words were hurled at the couple.

In most cases, if there is a problem the restaurant should see if they can make some type of amends to fix it–not alienate the customer–or abuse them as in this case.

Cost to the business? Loss of a couple of regular customers AND their referrals.

Number Three:

After purchasing a new business location the new owners closed without notice and it was hard to get in and out when they were open (due to remodeling). Then they quickly changed policies and hours.

The result? They lost patrons that had been store supporters for years.

Even today people complain because the hours are odd and do not sync with the adjacent business under the same ownership. One guy was trying to get a boycott going against the place.

Then it looked like the place was going to close down and a flood of people that had been avoiding the store came through the doors to use their credit during the sale.

Over and over again I heard from these customers that they had stopped doing business with the store because it was too difficult.

In these times, it is important to gain the trust and loyalty of your customers. Change is good–but not always before you have earned the trust and loyalty. With online options and mega stores not too far away–people have more choices and if you make it hard to do business with you–you may lose valued clientele.

Number Four:

Two similar competing businesses had the same problems–they sold inventory that was outdated or substandard and then did not allow customers to return and obtain credit nor would they let them exchange the product.

Today one of the stores is under new ownership and the other seems to have a large amount of ill-will spreading through the valley with threats of lawsuits and other actions.

In all of the above cases, these businesses failed to understand that they will only be as successful as their customer base will let them. Drive away the customers, create ill will with your clientele and you will lose not only their business–but that of their friends and acquaintances.

If you are a business owner, take a look at your policies. Are you customer friendly? Are your employees?

As one customer said, “I always know when a place is going down hill around these parts. They always seem to hire teenagers that can’t stay off the phone.”

Treasure your customers. Take a look at your customer service practices and make sure your employees know that their jobs depend on those customers.

A few common sense tips?

Greet each and every customer–by name if you can.
Get off the phone, off the computer, or off of your project to help them.
Say, “Thanks for coming in” whether or not they purchase.
Have a business card, magnet, or some give away item for every person or group that comes into your store–you’ll remain in their minds.
Develop trust and a database–call them on their birthdays or send them a card. Later, you can use this database to track their habits–and find additional items they “must have.”
Help a customer find another resource or give them directions without attitude. They’ll remember the gesture and that word of mouth will do you more good than you can imagine.

If you find these tips useful leave a comment by clicking on the balloon in the upper right. Do you have a question or comment? Leave one now!