Bottom Fisher
Or Is He?
I was out networking a few weeks ago and discussing loyalty factors with a vendor. He proudly proclaimed that his customers, myself included, all buy from him in response to his unique value. He, on the other hand, always goes for the lowest possible price.
Intrigued, I asked him to give me some examples and he immediately cited a reseller he buys from. He checks every so often to keep the seller honest, but he has found over time that this particular supplier always gives him the lowest price of any facility he patronizes.
And there’s no other reason he buys from this vendor? No, he said, absolutely not. He knows what he wants and he wants it for the lowest price. Period.
And so, I asked, why doesn’t he simply source his items on the Internet, where he is certain to find a price lower than the bricks-and-mortar vendor can provide? If he orders a 15A when he should have ordered a 15B, my friend answered, he knows he can call the reseller to get the order corrected quickly.
And so, he only thinks he is looking for the lowest price. In fact, he is willing to pay something extra for some type of service. He doesn’t recognize it, apparently, but that shouldn’t be a surprise. Many customers will describe their behavior in ways that is not completely accurate.
There’s often a divergence between what we do and what we think we do. The same goes for our customers. We could build substantial loyalty and profitability over time if we only knew the difference.
About Michael Rosenbaum
Quadrant Five founder Michael Rosenbaum has walked the walk when it comes to building a business, so he can be a confidant and compatriot—not just an advisor—for clients. Rosenbaum worked his way up to president of a $35 million company with 300 people and 600 clients. Along the way, he managed operations, HR, IT, and marketing, and advised CEOS and CFOs at more than 200 companies.
Beginning as a newspaper reporter, he developed a specialization in business journalism and earned an MBA on his way to a 30-year consulting career. Representing both angel-backed startups and Fortune 100 giants, Rosenbaum identified the patterns and processes that drive success across a wide range of industries and business cycles.
He is well regarded for designing each performance-improvement process around specific client needs, capabilities, and culture, rather than pushing a pre-fab set of rules for clients to follow. He brings a unique set of skills to each engagement, including experiences as a company president, financial journalist, marketer, IR advisor, non-profit founder, author, and public speaker. Items of note include:
• Received the Order of Merit of the Republic of Poland in 2015 for non-profit work
• Honored for the Best Business Biography of 2012 for his fifth book, Six Tires, No Plan
• Frequent speaker on customer relationship value
• Sales instructor for Certified Value Growth Advisor certification program.
• Regional Communications Chair, YPO Gold
• Marketing Chair, AMAA’s Mid-Market Alliance
• Former Chicago Chapter Chair, National Association of Corporate Directors
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