Is Cost Cutting Killing Your Business?

I have stayed in the same hotel for several years in a beautiful part of eastern Tennessee. The rooms were OK, at best, but the view of the Smoky Mountains and the surrounding area was peaceful and a refreshing departure from normal business travel. It was a convenient drive to my clients location. The icing on the cake was the hotel staff and the welcoming and exceptional customer service.

Sadly, last week was my last night at this hotel. Why? Because the owners sold the business to a new group and, in and effort to save money, the new owners have stepped into a "cost saving" frenzy. They took away almost everything that caused me to give them my repeat business. (I say almost because the Smoky Mountains are still there.)

I have challenged my clients for years to consider how they are special or different beyond the "Value Proposition" .

You see, A hotel, is a hotel is a hotel.

A manufacturer (of your product, you fill in blank) is a manufacturer, is a manufacturer.

A bank is a bank is a bank.

A CEO is a CEO is a CEO.

A consultant is a consultant is a consultant.

What makes you different? What is it that YOU DO that makes you stand out and provide exceptional value for your employer or customer?

For my business, I know the answer to that question. In the long haul, I make my clients' more money and I help them reach the level of success they are seeking. I'm not the cheapest consultant on the planet and don't intend to be. I provided VALUE. What I do is beyond the intellectual "know it all" who just teach and leave it for people to try and figure out how to implement the concepts presented. We get results by walking them through the process.

What about YOU as an employee of a company? How are you different than anyone else who has a like position or product?

I've watched many companies', during the recent economic crises, turn away from doing what they have traditionally done best, to cut cost. The result? They are killing the business.

Think about it. Are you killing your business for the sake of cost cutting activities? Has the constant and obsessive focus on the bottom line caused you to become blind to the distinction between "error cost" and the cost of improvement? It's a question each executive staff or boss should be having with their employees. Engage this discussion before it's to late and  your end up like my formally favorite hotel in Tennessee.

 

 

 

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