Business Frustration

[428street]

I have had my own business for 18 years. I own two small companies. One is a computer consulting business and one is a telcom design and installation business.

Over the last 3-5 years I have noticed a drastic change.

A change from the values, integrity and professionalism I was brought up to have both in my personal and business life.

There seems to be no rules, either written or implied, in the business world anymore. In essence it's a free-for-all.

Is this just me or do you guys feel the same?

[cobra de capell]

Can you provide an example?

[DAVID GAGNARD]

Originally Posted by 428street

I have had my own business for 18 years. I own two small companies. One is a computer consulting business and one is a telcom design and installation business.

Over the last 3-5 years I have noticed a drastic change.

A change from the values, integrity and professionalism I was brought up to have both in my personal and business life.

There seems to be no rules, either written or implied, in the business world anymore. In essence it's a free-for-all.

Is this just me or do you guys feel the same?

Seems to me that things have been heading that way for some time now.....especially in the last five years....
Yes, I feel the same, but, there are still a lot of small business men out there doing the right thing............

David

[Joe Wicked]

The problem lies in the fact that customers want everything for cost. Everyone wants to get whatever without paying for labor, markup, etc... Once someone gets a break on one thing, they want that break on it everytime, and also want that break on everything else from the business owner. They are all right in that cutting 1 person that break will not bankrupt the company, but every single one wants it. Some business owners are willing to cut corners to gets costs down so they can still make a profit, but once they do that, people expect everyone to give them the same price, but they also want to believe they are getting quality, so it leaves owners choosing between loss of customers because they do it the right way (more expensive) or conducting business in ways that are not as honorable.

[wtm442]

So you are frustrated. There are a lot of morons out there that think they know how to run a business .... by cheating, lying, etc. These morons do not usually stay in business long.

Are there local competitive firms that are doing this and affecting your business?

If yes, you need to concentrate on you marketing/advertising. You also need to promote your best business practice, whether its lowest price, highest technology, fastest delivery, best service, etc.

If no, just keep doing what your doing, and try to improve where ever possible. You can never have enough ammunition to shoot down all the morons.

There is a local ACE hardware store that gives unbelievable service. About 5 years ago, a Home Depot was built within 1/2 mile of this store. I'll bet the small hardware store does 3 times the business that they did 5 years ago.

They have an excessive amount of very knowledgeable people in the store. Within 10 seconds of walking in the door, someone says "Can I help you?"

After your question, you get a knowledgeable answer or a hand off to another employee. And that employee will walk with you all the way to the product he/she recommends. And they will stay with you until all your questions are answered.

I go there first. If they do not have what I need, then I go to Home Depot.

[Bugman]

I own a Pest Control Company and a Car Lot. I empathize with you! There are still good honest people out there they just seem to be harder and harder to find.

[428street]

Here are some examples:

1. A customer calls you to look at a job and for a "quote". Now there is a big difference between a quote and a proposal but that is another story. You talk to them, take a look at the job, email back and forth, meet with them to discuss then all of the sudden they will not return your calls, emails or meet with you even if you stop by.

2. A person calls out of the blue to ask technical questions and does not want to pay. When you explain that this is how you make a living they insist that you help them because it is a quick question.

3. We are a quality based business, period. We do the correct job, with the correct materials, in code, with in the standards and our success rate is 99.9%. Simple. Most customers just want the cheapest possible job but they all tell you they are not shopping for price. When asked if they have a budget, they say no but when you give them a price they come back and say that they didn't think it would be "that much".

I can give more examples but these are the major ones.

[trularin]

People want something for nothing all the time. It appears as your business expands, you attract more notoriety as a knowledge source.

Simple solution may be to screen the calls before a technician is connected to the call.

Quotes are time consuming and there is nor telling if you will get the quote. This process should be figured into the G&A as you are awarded the job.

Just a couple of observations. PM me if you want.

[428street]

Guys:

Thanks for your responses so far,keep them coming.

Please understand I'm not looking for solutions but I was just curious as to how other people felt.

Generally speaking I think people (not all of course) have become unprofessional, inhuman and just plain cold.

I know that I will not make every customer happy, I know I will not get every quote or proposal I submit, etc., etc.

My frustration is that there is no respect towards each other.

Send me an email, call me at 10 pm at night when you know no one is in the office, be up-front, tell me we didn't get the job, tell me you are not interested in working with us anymore. Don't tell me "nothing" or ignore me.

Last year we were involved in a large cabling opportunity for a fortune 100 company here is CT. They were a customer for 8+ years. We did all their work bare none. We dropped on a dime for them, did work in NYC the next day on numerous occasions, etc. They moved to some new space and when it came time to award the job we were nothing more then "another" vendor. Additionally, and worst then that, they never even called us to tell us we did not get the job. We learned about it through a third party. That is just down right crappy. I did call my contact and let him know how I felt.

[wtm442]

In my opinion, it's a minority of people acting badly on purpose. Most people today are honest. But when people get quotes from 3 or 4 companies on a job, most people do NOT contact the losers. Just a fact of life.

If you want to feel better, drive to the ex-customer location. Then drop the clutch at 5K RPM on their front lawn. That should make you feel better. But not too good for repeat business.

My first reply, I had assumed you were frustrated with competitors. Your frustration is with customers. Just keep on smiling and treat them as you want them to treat you.

[428street]

Originally Posted by wtm442

In my opinion, it's a minority of people acting badly on purpose. Most people today are honest. But when people get quotes from 3 or 4 companies on a job, most people do NOT contact the losers. Just a fact of life.

If you want to feel better, drive to the ex-customer location. Then drop the clutch at 5K RPM on their front lawn. That should make you feel better. But not too good for repeat business.

My first reply, I had assumed you were frustrated with competitors. Your frustration is with customers. Just keep on smiling and treat them as you want them to treat you.

You see, thats the problem, I can't for the life of me accept that "it's a fact of life". I just think it is very wrong. Do I think it will change? No.

[wtm442]

Originally Posted by 428street

You see, thats the problem, I can't for the life of me accept that "it's a fact of life". I just think it is very wrong. Do I think it will change? No.

I also think its wrong. Question - when you give out a quote (either verbal or written), do you ask when the project will start? How about asking if they would give you a call later, even if they agree to buy from someone else. If they do, then you can ask why they went with the competition ... and you can then act to make your product/service better.

Or, you could call them up if they do not call by the project start date, and ask why they went with your competitor.

[428street]

We always ask when the project will start.

We always ask to let us know either way if we lose the job or not to let us know even via email.

The problem is they don't return calls, emails, etc. to find out this information.

I've gone so far as creating a draft communication agreement for my customers:

It is on the idealistic side.

UTC Communication Agreement

Summary

This document was created to foster a positive communication channel and
establish mutual respect for both Up To Code and you the prospective client
in respect to each others time and effort in regards to your prospective
telecommunications and/or electrical cabling project.

The undersigned agrees to the following:

1. UTC and client will respond to each other via email or phone with in 24
hours (M-F normal business hours not including weekends or holidays) of any
request for further information, general concerns, status of quote, etc.

Client must communicate with UTC with final decision on outcome of proposal.
No response is not an option. If the decision has been awarded to UTC,
postponed, terminated or given to another vendor client must tell UTC via
email, voice or fax with in 48 hours of the final decision.

At any point in the proposal stage either party can part ways for any reason
as long as they communicate with each other via email, phone or fax. Once
this communication is received both parties agree not to call each other.

If the customer is only engaging UTC for a quote to fulfill their three
quote minimum please let us know and we will be more then happy to put
something together. We understand it is many companies policies to get
three quotes, most of the time the customer has the vendor they want to use
but still needs three quotes. We understand this just let us know ahead of
time.

UTC agrees to make up to three revisions per proposal or upon further
requests by client to revise a 4th time UTC reserves the right to decline to
go further in the process.

Failure to comply with the above agreement will give either party the right
to submit the signed agreement and stated non conforming issue to the Better
Business Bureau.

[mrmustang]

I understand your frustrations, I get this all the time especially when I'm running a $199.95 paint special. You cannot imagine the people coming in expecting the world for that price, or worse yet, trying to get me to drop the price further, as if they can find a cheap price to paint their car anywhere else (Earl Schieb is not within 40 miles of me). As far as the customers calling you to let you know you did not get the job, these days that may be an unrealistic idea as they themselves may be overworked. Would it be nice if they did, sure, but again, I give out roughly 25-60 free written estimates a week with a roughly 65% retention rate, does anyone else call and tell me that I did not get the job, maybe once in every 1,000 quotes, and usually those are people canceling an appointment for one reason or another. I too follow up within the first week of giving a quote (for those not retained or appointed), usually send out a reminder or thank you card for them stopping by. Sometimes this is all that is needed for them to pick up the phone and call me (I am the only one who answers the phones at my shop by the way)...Simple and cost effective to keep my business in their minds. As for your agreement, honestly, if I was your client and you handed this off to me, I would not likely bother to use your service, as the vendor is never supposed to "make demands" of the customer (other than to get paid for the services rendered), and something like what you posted above I would view as a turnoff, regardless of if we did business in the past or not. As for myself, I have the same values that you do, believe in doing business on a handshake and someones word. Does this effect me these days doing what I am now doing, I'm sure it does in a negative way as most business people like myself push for a deposit for an appointment where I still do not. Opting to take someones word instead of cash up front. Again, just my two cents from someone who was in the computer networking business in the NY/NJ metro area, where at the time there were only two major competitors (Sun and HP) competing against the company (SGI) I worked for the business in which we were going after at that time.

Perhaps a simple follow up post card thanking them for the opportunity to bid on their business (sent out the same day you met with them) is in order, as not many other companies do this, and it would set you and your services above the rest.

Hope you find this helpful.

Bill S.