How far does loyalty go?

ryan

I want to thank you guys for all the input. It certainly has helped my decision.
Ryan

ryan_7

loyalty

My father started our business in 1962. We have had the same business insurance company and the same accounting firm for all of that time. We have been selling the same brand of equipment for 23 years. I rarely price shop and basically use one supply house. I have a strong sense of loyalty. But how far does that go?
I just found out that my account made an error that cost me 12k. We are not a large company and that hurts. Also the insurance company that handles my medical gave me a quote on my general business. My existing policy is not even in the ballpark. I hate to break such long relationships, but....

Larry Weingarten

Loyalty...

...works both ways. Your vendors don't sound as though they are keeping your best interests in mind. You probably have loyal customers as well. What good are you to them if your costs of doing business put you out of business?

Yours, Larry

Weezbo

one would never entertain the idea until......and then you

begin to wonder...well, i thought that we have been doing business for since the beginning of Your business...i had no idea that my pricing structure had changed to "stick him every chance you get"....then you got to think in your mind hey waita minute here...uh uh. then once you are aware of it it makes you feel like heck...

John R. Hall

Time to shop around

In this case, loyalty carries a price tag.

George_10

Customers Interest First

I am firmly in the school of thought that if you worry about your customers interest first, you will consistently be on the right side of the business question.

Sure, there are always customers that do not appreciate what you have done for them, but in the scheme of things, I believe it pays for itself.

Stick it to a customer because they will never know, is like stealing to me. It is not a moral question for me, it is just an excellent business practice with very practical ramifications. As Satchel Page said, you never know who is sneaking up on you. Why put yourself/business in a defenseless position.

Good business reputations are hard to come by. Bad ones are very easy to acquire. There is not a doubt in my mind which is the preferrable one to have.

We will now turn to hyme no............

Weezbo

Well said George.....Well said.

J.C.A._3

Ryan,

George brings up VERY valid points, but think back 42 years, and the companies that your Dad and you are loyal to have now to answer to STOCKHOLDERS. This is the biggest difference in business, now and then.

True customers will understand a rise in rates. This is the cost of doing business in the way that both you and they are accustomed to. Unfortunately, nothing is getting any less expensive. Your customers see this in every other aspect of their lives and it is only fitting that your rates HAVE to follow the pack. Your costs are also going up at the same rate that theirs are. What other choices do you have?

We all know we can't give our knowledge and service away and stay in business. As to shopping a different supply house....I too, like to stick to one as a main supplier, but they also have to know that we service more than they sell and I have to go elsewhere for parts and replacements sometimes.

Would I like to give one supplier all of my business...? You bet, but they can't get all the stuff I need in a timely fashion,(re:immediately)so we have a few.

Don't feel guilty about that. Things have changed in the business in general over the last 5 years, and we all have to adapt to it.

As to your insurance and accounting firms, they are no longer much different. Their methods and practices have also been geared to "profit" mode. They are now accountable for all the guys that did all the business with you and your Dad. Not that I will be the only one to tell you this...but maybe it's time to go shopping.

You've done what you can for them, but now it's time to go into your cost assesing mode and figure out what the TRUE cost will be to you and your customers for the services you provide.

Tough calls, to be sure, but you've got to keep yourself both profitable AND competitive. Lessons learned the hard way unfortunately. Good luck. Chris

martin ce jarrell

how to keep your supply house honest

keep checking prices because their all over the place.in service we buy from freinds not because we like the owner of the supply house. i buy from everybody just to keep them honest

Paul Pollets

Accounting errors..???

and you have to pay?? your accountant should have "errors & ommisions" coverage and pick up the tab. Unless the data supplied by you was incorrect or changed...why should you be paying when you hired "professional services"?

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Keith_8

Loyalty

should never be taken for granted.

I have often wondered why business' give better deals to new clients than to the existing ones.

In theory an existing account is one who pays their bills in a timely fashion is a pleasure to deal with and allows you to earn a fair profit on the work.

The new account who gets the special deals is an unknown quantity. Why do they get special pricing/treatment?

Take care of those who take care of you is all I have to say about that.

It appears you feel a greater sense of loyalty to these to companies than they do for you. Send them a wake up letter and see if they respond in kind.

Keith

Wayco Wayne

Good point

I check pricing as often as I can. I just went through it with a supply house when they changed an office worker and he raised my prices and wouldn't discuss it. I came close to moving my business else where until my saleman stepped in and found the mistake. Vigilance is important. WW

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rb_8

Trust vs Loyalty

I was taught at a very early age never to confuse loyalty with trust.

Related – yes.

The same – no.

Loyalty is a feeling or attitude of devoted attachment and affection. It often comes from fear or insecurity.

Trusts is the firm reliance on the integrity, ability, or character of a person or thing regardless of fear or insecurity.


Those who demand loyalty may not always get the truth…

Those who are loyal may never tell the truth because of fear or insecurity.

You can trust those who are willing to risk ticking you off - you can't trust those who tell you what you want to hear.

What a topic!

Trust vs Loyalty - I could do a whole seminar on this...it's one of the prime reasons why both people and companies fail to become leaders, fail to show leadership and a primary reason for stagnation in growth and profits.

RB

Ken D.

Loyalty

I don't mind paying a little extra if I am geting superior service or products. When I find that I am not getting the service I pay for such as your accountant, then all bets are off. Especially when I have to pay for their screw ups. You ought to call the accountant and tell him if he does not cover your expenses pertaining to his mistakes, then you will take your business elsewhere. His response is all you need to know in order to make your decision. In other words, he will make the decision for you. Also, you should consider legal action or at least threaten it in addition to reporting them to any licensing or professional entities. We use several different supply houses. We don't want our eggs in one basket. One of our suppliers is a primary. We check prices and evaluate services on a regular basis. Our primary supplier bends over backwards to keep our business, so we expect to pay more, although they don't carry everything we need. We've dealt with them for over 25 years, but if they don't take care of us, we have others who will. Like our customers do to us, If there is something you don't like with someone who you pay for a professional service or otherwise, tell them about it. They work for you. If they do not think enough of your business to respond in a fair manner-go elsewhere. Sounds like your guys are taking advantage of you. I will say this- sometimes competitors will give you very good prices just to get your business, then raise the prices later. Just be aware.

Mad Dog_2

Unfortunately alot of businesses do, do that

We don't. In fact it works the other way around. Regular customers get preferential treatment and nice discounts when we can. That is not to say first timers are "dissed." Mad Dog

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Mad Dog_2

Loyalty is a matter of reciprocity

It is always a good idea to "trust, but verify" from time to time. If you don't you WILL eventually be taken fro granted, taken for a ride , and taken to the cleaners. Tim eto shop around, buddy, they've been taking you for granted for too long. Mad Dog

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