Ulterior Motives

It’s important to look at the big picture to understand why people and organizations do what they do.

As an example, why do companies sell a product at a loss or even with a small margin? Looked at from a micro level that might seem like a bad decision but macro level you might see the real picture. Companies might sell a shaving razor at a loss know they will more than make up for the lack of profit by selling the razor blades at a significant markup.

Another example is selling an entree at lower margin and making up for it with the beverages, side dishes and desserts.

Looking at the big picture will allow you to determine the ulterior motives that might make business make more sense.

Have a great day!

Lawrence

Flexibility

The things that work today might not work tomorrow.

Various factors change things. It might be the weather, the people, the mood or any number of factors but if we aren’t flexible than we are doomed for failure.

If you plan on doing the exact same thing today that you did yesterday, don’t be surprised if the world passes you by…be flexible.

Have a great day!

Lawrence

Cost

It’s easy to think of wholesale cost as a slight mark up of actual cost.

The other way to look at the cost as being the value that is being offered. A product might have raw material costs of $1 but if it has a value to the consumer of $100 it would be foolish to sell it for $1.

Too often the buyer is thinking of the cost in terms of raw material costs but the seller is thinking in terms of true value. Until they can get on the same page, the transaction rarely happens.

Have a great day!

Lawrence

The right people

If you find that you have to tell everyone you manage exactly what to do, when to do it, how to do it and why to do it you might need to reconsider a couple of things.

First, do you have the right people? If you can’t trust them to make their own decisions, maybe you need to find people you can trust to do so.

Second, are you the right manager? If you have the right people and you still feel the need to micro manage, maybe it’s not them, it’s you.

Just a thought.

Have a great day!

Lawrence

Too soon

Sometimes people are too early with their ideas. Frequently this happens when the technology isn’t advanced enough for the idea. It might also be a case of the market isn’t ready for the idea.

An example that comes to mind are tablet computers.

Apple came out with the iPad in 2010. Many people think that was the first tablet.

Bill Gates announced his tablet in 2001. One main problem was the processors that were available at that time weren’t able to do that time of processing. Nine years later, and a lot of advances in technology later, the iPad came out and the technology was ready.

Just yesterday I had the opportunity to revisit a type of technology that I was approached with over 5 years ago. Back then it was a daunting task but today, the technology is available to build what was idea that was presented. The surprising thing is the need for this technology is still the same.

Does that mean it’s something that should be pursued? Maybe. But it’s a great reminder that it’s sometimes worth revisiting old ideas.

Have a great day!

Lawrence

Core beliefs

Our core beliefs are who we really are.

Core beliefs aren’t what we say we believe in or what we write as our mission statement or what others think we believe in.

Core beliefs are reflected in our actions.

If your core beliefs are different than what others think they are than there could be a problem. It might be a PR problem or an actionable problem but it’s something that might need to be address at some time.

Have a great day!

Lawrence