What’s that famous line; “the customer is always right, and if you ever doubt this refer to rule number one,” and whereas we read such quotes and smile, there is a very valuable lesson in all of this.
If you are an entrepreneur, business leader, or an executive for a large Corporation then you will be in charge of making choices and decisions which will guide your company forward. How you conduct your business, what markets you enter, and what market segments you attack will be your choice.
As long as your choice is in line with the customers, clients, and consumers then your choices are good.
When you’re decisions are opposed to the community or the customers, that is to say if they do not concur with the direction your company is going then the customers will not pay you for your services and products, therefore your bottom line will be hurt, your shareholders will be upset, and your quarterly profits won’t seem to live up to the expectations Wall Street.
In this case of course you would be wrong, and your choices and decision-making would be inadequate, unacceptable, and it’s time for you to depart the premises, so they can hire someone who can get the job done.
Some companies get it, and others don’t. But in the free-market system you are allowed to fail due to poor choices, and bad decision-making. If you go against your customers too many times, they will vote with their dollar, and they will vote for your competitors. S
o while you might say that you are the head decision maker of your company, the reality is that you provide the goods and services that society desires and needs. There is a price which they are willing to pay, and an upper end price they are not. If you deviate too much from those things that they need or want, they will not be willing to pay the price, and therefore they will not purchase.
It is as simple as that in free markets. Free market capitalism is about the most democratic way to run a society there is, because again people vote with their dollar. If you want them to vote for you, then you had better listen, and streamline your company, increase its efficiency, and figure out a way to deliver what they want, as soon as possible if not yesterday, and at a fair price they are willing to pay.
Yes, I realize it gets tough sometimes when everyone’s favorite price is free, and they demand far too much, but as a business owner you need to understand that, and find a happy medium.
About the Author
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank.