Tag Archive for 'The Age of the Customer'

It’s Time to Tell The Truth About Minimum Wage

Before any product or service is offered to customers, the price must be determined. The foundational element of this calculus are costs, which includes labor. In a true free-market economy, all elements of cost are determined by the marketplace. But in the U.S., we don’t have a true free-market economy because of mandates and subsidies imposed by the federal government, one of which is the minimum wage.

Alas, raising the minimum wage is being proposed again.

When the government is involved, politics, not reason, is the motivation, which isn’t so bad when the issue is politics. But politics has no place in what businesses pay for their cost factors, especially labor, often the largest cost factor.

When proposed, the national minimum wage was never some great egalitarian blow for the working man. It became law in 1938 as a cynical, protectionist move by the Congressional delegations of the northern textile industry – primarily Massachusetts –against their southern counterparts, whose lower, market-based labor costs made them more competitive.

Today the minimum wage has become a political wedge issue of the cruelest type, because research shows each increase actually hurts the segment it purports to help, especially younger, entry-level workers, like teenagers and minorities. The primary reason is that for decades employers have controlled the impact of an increase by reducing entry-level positions using various organizational steps. But today, technological advances have given all employers an increased ability to forgo entry-level hires in favor of low-maintenance, non-taxed innovative devices and/or software.

The results of two recent online polls reveal how these options manifest on Main Street. When we asked about their attitude toward the minimum wage, 82% of small businesses said the government should not be setting wage rates. But when asked how a minimum wage increase would impact their business, 76% said “Not at all.” The reason for the lack of concern by the sector that doesn’t like the minimum wage is likely because: a) they’re already paying more than minimum wage; b) they have legal ways around it to the disadvantage of the unskilled, increasingly unemployed worker.

An important goal of most businesses is growth, but adding payroll expense to achieve it is no longer a given. And so far, business owners are in charge of the decision to add workers or use other means to achieve growth. Nevertheless, increasing minimum wage does cause problems: an arbitrary increase distorts all wages as it becomes the new base from which other workers measure wage progress. If a small business adjusts all wages up in response, expenses rise. But if it doesn’t, morale declines. Furthermore, unions use minimum wage as a contract lever to exact from employers automatic, across the board increases for all organized workers.

In the marketplace, any increase in price must be justified by value delivered. But this logic is lost when labor costs rise by government fiat without adding one extra unit of productivity.

Write this on a rock … Let’s call the minimum wage what it is: A political lie that actually hurts poor and unskilled workers.

Jim Blasingame is author of the award-winning book, The Age of the Customer: Prepare for the Moment of Relevance.

Replace worry & fear with business performance

In his book, Blue Highways, William “Least Heat Moon” Trogdon said his Osage Indian grandfather, William “Heat” Moon, taught him this about worry: “Some things don’t have to be remembered; they remember themselves.”

Owners are justified in worrying about their small businesses, but sometimes they waste emotional energy worrying about things over which they have little or no control, or aren’t likely to happen.

In the movie, Bowfinger, Eddie Murphy played Kit Ramsey, an action movie star also famous for being a pathological worrier. He leads a frightened and miserable life because he worries about strange things that would never happen.

Ramsey’s greatest worry was being captured, killed and eaten by space aliens. He also worried about being crushed by a gigantic foot, or that his body might burst into flames. Pretty silly, huh?!

Watching Murphy play this unstable character is hilarious. But it’s not funny or silly when you and I worry about things that, like Ramsey’s obsessions, probably will never happen.

·  Instead of aliens, how much do you stress out about your business being killed and eaten by the dreaded Internet competition?

Stop obsessing about online competitors. First, you should be an online competitor yourself. Second, without a fixed base, online-only competitors may have what customers need, but you have something more powerful: You know what customers want.

·  Instead of being stepped on by a giant foot, do you obsess about being squashed by one of the Big Boxes?

In The Age of the Customer, prospects often rule you in or out before they know how much you charge. You can establish a level of relevance with prospects and customers that no Big Box can, as they continue to focus first on being competitive.

·  Instead of bursting into flames, do you wake up in the night obsessing that your business might go up in smoke if customers abandon you?

In The Age of the Customer, you actually should obsess about customer expectations, otherwise they won’t really leave, you’ll just become irrelevant.

Instead of living a frightened and miserable life like Kit Ramsey, put that energy into performing so well that any competitor would be hard-pressed to take customers away. Build relationships with customers to the degree that when something they want pops into their heads, as Trogdon’s grandfather would say, your company remembers itself.

Write this on a rock -

Don’t live a frightened and miserable life. Replace worry with action and performance.

Jim Blasingame is author of the award-winning book, The Age of the Customer: Prepare for the Moment of Relevance.

The Age of the Customer®

My latest book The Age of the Customer® is now available for purchase at the locations below. Click the images to purchase the book and to view more information about maintaining relevance with your small business.

This Has Never Happened Before.

You’re operating your business in a time when something is happening that is so momentous it has never happened before. Jim Blasingame identifies it as an epochal marketplace shift that’s causing the 10,000-year-old Age of the Seller to be replaced by the Age of the Customer.

Jim will reveal to you in plain language:

• How the two Ages currently, but temporarily, exist in parallel universes, and how much time you have left to join the emerging universe.

• How relevance is replacing competitiveness as the coin of the realm, and what you have to do to make this switch to Age of the Customer thinking.

• How your future will increasingly be decided at the Moment of Relevance, and what you have to do to be the chosen one at that moment.

• The new influencers who co-own your brand message sometimes before you even know they exist and how you can get them to be your partner.

• Why you must become a storyteller.

• The good, bad, and ugly of social media.

• The killer app that wasn’t any part of your past but will dominate your future.

Jim will teach you how the Age of the Customer is impacting love, trust, emotions, niches, globalization, intellectual property, selling, branding, and even technology. Plus he will reveal what is not going to change.

In the Foreword, Steve Forbes says Jim has both the foresight of a prophet and the courage of a heretic. This book is a visionary message delivered with tough love and, as Steve says, Jim is the best at this.

You’ll keep this book handy for continual reference, because you won’t find the perspectives Jim Blasingame delivers here anywhere else in any one place. It’s The Age of the Customer®. Let Jim Blasingame help you Prepare for the Moment of Relevance.

The Age of the Customer: the new normal

The shift in who has control – seller or customer – is causing the 10,000 year-old Age of the Seller to succumb to the Age of the Customer™. Understanding this is key to the survival and success of your small business.

For millennia, there have been four basic elements of the relationship between a customer and a business: The product, the buying decision, control of information and word-of-mouth. For the first time in history, two of these elements are shifting in favor of the customer.

1. In the new Age, control of the product or service still remains with the Seller, but has diminished as a control factor for at least two reasons: a) virtually everything you sell has become a commodity; b) customers have multiple shopping and purchasing options including traditional and online markets.

2. As it has always been, the Customer continues to retain control of the buying decision. Shifts in the next two elements represent the primary difference between the Age of the Seller and the Age of the Customer.

3. Not since Guttenberg’s printing press first made books available to the increasingly literate masses has there been such a shift in access to information. Indeed, innovations in the past 30 years made the entire universe of human knowledge generally available with a very low barrier-to-entry – including information formerly controlled by Sellers.

4. Once upon a time, knowledge about Customer experience was a function of the word-of-mouth maxim: “If a customer likes you they will tell one person, if they don’t like you they will tell ten people.” In the new Age, the influence of Customer experience has morphed and expanded from classic word-of-mouth to the disrupting phenomenon called “user generated content,” or UGC. This is the electronic posting of customer experiences, questions, praise or condemnation of a Seller’s products and services. If that old word-of-mouth maxim were being coined today it would sound more like this: “Whether customers like you or not, they have the potential to tell millions.”

Here are two Age of the Customer realities to which your business must be able to adjust: 1) customers have virtually all the information they need to make a purchase decision without ever contacting you; and 2) there is no place for bad performance to hide.

Write this on a rock… Your future survival and success depends on whether you embrace or disregard the Age of the Customer.

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