What’s the definition of insanity?

Posted: May 24, 2013 in Up-and-running Business

I think we’ve all heard this definition before:

  • Doing the same thing over and over again and expecting a different result.

Well there are a lot of business owners in this category. Here are two  examples:

  1. Continuous advertisements in a community or city newspaper trying to get exposure. The business owner spends (wastes) thousands of dollars of valuable capital.
  2. Sales have been declining or flat so the business owner feels that the main reason for the doldrums is that their service price is way too high and needs to be reduced to stimulate their customers to buy.

There are more but the above two highlight some flaws in thinking. If we advertize they will come… won’t they? No they won’t. If your customer is a tech savvy consumer they hang out on social media, don’t watch TV and don’t read the daily paper. They may peruse an online paper though.

The second example creates a dangerous pathology.  Some customers may actually look for your ad but also know if they wait long enough you will reduce your price. They wait for that.

Businesses always look for ways to get more customers and expand their market and revenue. Be careful how you do it. Your customer ages, goes through different life phases and later on subsists on a fixed income.

Do you know your customer?

 

 

 

 

 

 

 

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