I used to have a copy of the aforementioned article hanging up in my office many years ago. I have researched a bit to find the article and can’t seem to find either the article or author. Obviously, from the camcorder reference, it was more than a few years ago that I found the article. I used to take copies of the article and hand it out to new salespeople that I hired. The message back them is the same as it is now. Business Partners are valuable. Make yourself valuable to your clients and surround yourself with valuable business partners.
The message from the article, in summary, was to make yourself valuable enough to a client that they wouldn’t exchange your services for even a $700 camcorder. At its face value, perhaps this seems a bit absurd….trade a business partner for a camcorder?!? How about something more current, how about a flat screen TV, a laptop computer, an iPAD?!? We all have people that we deal with in business who do nothing more than “order take”. Would I trade them for an iPad? I might. It really depends on if I consider them an asset to my company and specifically to me. Really it is whether they have value to me specifically and my ability to conduct my day to day business. Are they looking to line their pockets with a quick hit or are they “covering my back” when I am too busy to mess around with details? Do they stop me when I need to be stopped and do they help me move faster when I don’t need to mess with details? If they are a trusted business partner, they are hired for making me better at my job. The incremental dollar difference in dealing with someone who is an invaluable part of my business makes them a far more profitable asset than any extra markup, fee or hourly charge I receive while working with them. In nearly 20 years of running a business, I have never seen an exception to this rule.
This article speaks to the underlying value of any business relationship. Are you an order taker? Are you a commodity? Do you bring value to a client who would be hard pressed to replace you? If they do replace you, would they get the same quality business partner?
Let’s use the case of a networking reseller as an example. In very frank terms, most of us sell similar products and services. Most of us have quality engineers who do quality work. With all things being equal, how is it that some salespeople/business partners have customers for decades and others can’t stay at a company for more than a year? The long term employees have become an asset to the company, and in return reap the benefits of a relationship.
This can be said about anyone in a work place. Would your boss replace you in exchange for a cruise, a TV or an iPod? The more you bring as an asset to the company, the more your value rises within the organization. Great people surround themselves with the best business partners they can find. You should do the same.
In a commoditized world, a box can be purchased everywhere. The knowledge and skill of a trusted business partner is very difficult to replace and even more difficult to emulate. We all have trusted business partners and or resellers. There are suppliers, consultants, manufacturers, accountants and lawyers with whom I have long enduring relationships. Even when their prices are higher, or there is a disagreement, I find these partners to be an asset to the organization. Would I trade one of these business partners for a 50 inch Sony LCD TV? Never! I know that the $2,500.00 TV doesn’t even approach the amount of money this select group of people has helped our organization earn over the years. Consequently, I tend not to worry too much about the price of their goods and services as by dealing with them, and paying a premium for their expertise, the company saves far more than the difference in fees of less qualified people. Our organization makes up for the added expense for these professionals by using their insight, knowledge connections and services to make great business decisions. You should as well. Your business partners will not only help your company achieve its goals, but even more importantly they will make you better at your job.
Good post in the age of shrinking margins.
ReplyDeleteThat is more or less the point. During tough economic times, pinching pennies acually costs you and your company exponentially. Mistakes during a downturn in the economy can cost a job or worse.
ReplyDeleteThe other side of the coin is that you also make a great client becuase you appreciate the value and insights provided by a partner and are sincere in your interest in maximizing the value for both parties.
ReplyDeleteDan, anonymous is Warren from Cisco Canada
ReplyDeleteMy father is one of those assets within the Honeywell Corporation. As much as they'd like to get rid of him, and pay two guys out of college who have no real experience in what their dealing with, they simply can't. His clients love him. Even ones that are no longer under his jurisdiction call him up looking for answers, or make their new rep call him to find the answer. It is so sad that when you are one of the most valuable pieces to your company, especially one so huge, you are considered, to a degree, expendable.
ReplyDeleteIn the business world its important to watch what occurs as opposed to what people say. An interesting phenomenon is the salesperson who is hired and brings clients with them. When they leave the company the clients leave as well. These are always people who bring real value to the table. It really illustrates what you are saying. Even though your Dad has customers that he doesn't service, they still call for help. That is exactly the point. If they don't have your Dad, they lose value. Great point!
ReplyDeleteWarren, I agree completely. It's part of the "birds of a feather" concept. People who know how to add value seek out others who do the same. I'm sure you know, its always surprising that all of the people who are heavy hitters, both clients and vendors, all seem to know each other.
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