The Escalator

Posted on by johnlwheaton1

I couldn’t get to the trade show floor until 10:00 am. That meant 15 or 20 minutes to kill. I looked around at the options and said to myself, “Why not stand at the bottom of the escalator? There’s no better place to see and meet people.”

In the sea of people there were two gentlemen standing near me with name tags that noted their business location; Nantucket, MA. I had just returned from a business trip to Boston the week prior, and then spent 4 days on Cape Cod. It wasn’t Nantucket, but it’s close enough. I started a conversation.

We talked about their work on the island, about the culture, what kind of support they needed, and how they managed logistics. They asked what I did. We shared business cards. I invited them to contact me anytime and they did the same. Then we both went on our way.

That was about 5 or 6 weeks ago. One of the guys, Lee, called me today. “Hi John, I don’t know if you remember me or not….” “Of course, I said. We met at the bottom of the escalator!” “Yep. That’s me.”

He said he needed some engineering support and asked about our availability at Wheaton Sprague. He asked what the next steps were. He said he’d email me the info. I said I’d assess it and get him a proposal. He said, great.

How do we “kill time” while waiting? Usually with our head in a phone or waiting in the wings. That particular day I chose to engage at the bottom of the escalator; to be where people were congregating. Who would have guessed? We never know when an interaction will lead to more. But most business is relational, whether B2B or B2C. How’s your engagement going?

Selling “Experience” – The Gas Stations

Posted on by johnlwheaton1

There are two service stations in my town. Both are within blocks of each other. Both charge within pennies per gallon of each other for gas. Both are national-level name brands.

One always has receipt paper at the pump. The other doesn’t. One always has full window-cleaning fluid troughs at each pump. In fact, at the one, the fluid smells like Wintergreen. The other rarely has enough fluid, if at all. It smells like regular cleaning fluid.

One has an ample stock of snacks and beverages inside and a clean smell. The other is always under-stocked and has an awful odor like a bad hospital smell inside.

One has nice canopies at the pump stations, well intact, with clean lines. The other always seems to have some maintenance issues going on at the pump stations.

One has uniformed attendants inside that typically respond with a polite greeting. The other has people with no uniforms, and generally a dis-interested person behind the counter.

The price is almost the same at the one or at the other; sometimes even the exact same price. But even if not, it’s worth the extra thirty to fifty cents per fill-up, to use the one.

At which one would you purchase your gas and snacks?

In a commodity business, “the one” has learned at how to differentiate. The other doesn’t care. It is always possible to differentiate within our existing revenue stream and context; to deliver value with some thought and care for the customer’s experience.

How about your business? How about mine? What experience do we want to create? What experience are we delivering?

 

 

 

 

 

PRICE IS IRRELEVANT

Posted on by johnlwheaton1

If the first question a client or prospective client asks about is related to price, then we know that their values are centered around cost. Most attempts to sell them otherwise will not typically work. To this purchaser, value is based on low price, and the product or service is viewed as a commodity. If the client-buyer is interested in what we’ve got, and we aren’t the low price, they may ask us to justify ourselves. I got this question last week “Why are you double the other price? Can you explain why your price is so high?” (This is a downward spiral by the way. Don’t answer the question to try to validate.)

I provided a polite and professional response, but didn’t answer the question exactly. I indicated what value was being provided and how the fee compared to other service-company fees in our category. My response asked the opposite question back, “Why is their price half of ours. What are they so cheap? We are both looking at the same project, right?” Then I explained what was being provided and nothing more.

I didn’t hear back from that client yet. And there’s a good chance that I won’t. They will likely purchase the other provider’s services. Because what this client was really SAYING, not asking, was “Hey, you’re too expensive. I can get the same thing for 40% less.”

So why do I say that price is irrelevant? Because we buy based on our values. Price is the consequence, the manifestation. It’s not the issue. Price or cost-based buying says “any of these firms will do, just get me low price.” The problem with this is that the buyer is assuming that they are getting the identical service from any of the choices presented to them.

It’s never really about price. It’s about the buying mindset and values.

Cost-based buyers want low price. Cost leads the conversation.

Value-based buyers want what they perceive to be the best investment and value for the cost of the purchase. Value and investment leads the conversation, price falls out, sometimes negotiated, sometimes as stated.

Identity, connection, or brand-based buyers, want to identify with a particular person, enterprise, brand or genre. Being connected to the associated values leads the conversation. Price is what it is; “If you want to be connected with us, the fees associated with that are as defined.”

Price is important, but price is really irrelevant. People already know about what they are willing to pay based on their mindset.

What kind of buyer are we seeking to attract?

What values are we seeking to communicate?

How is that portrayed in our brand?

Are we delivering?

Whatever we choose, we need to stick to it and dive deep. Pick a lane and stay in it. We can’t be all things to all people.

Compressed construction 

Posted on by johnlwheaton1

I mean REALLY compressed. Rarely works.

There are many brilliantly crafted plans on paper that have no allowance for the unexpected, for supply chain issues, for unintended consequences, or poor execution by someone or some organization along the way. Plus the single biggest issue I’ve seen and experienced over and over again that leads to challenges from the outset, is simply delayed decision making, and delayed release of contracts.

Compressed construction requires concurrent, collaborative, (shared-reality) communication; cultural alignment, confidence in each other and in the enterprises involved, and it requires everyone to follow through on the decisions and tasks in their domain within the proper timelines. It can’t be done with the old “throwing it over the wall mentality.” Each decision and event is not “someone else’s problem.” It’s everyone’s problem. This teamwork is difficult to achieve and it requires commitment from all parties, and to be led by the GC or CM.

The thing that happens most often in compressed construction schedules is erosion of relationship, poor profitability, and a project that still takes the time “it needs” to take to get finished. This often results in an unhappy owner asking questions due to failed expectations vs. promised goals and deliverables.

I’ll offer some solutions and suggestions on a future blog.

Post Project Meetings – Defining Experience

Posted on by johnlwheaton1

Post project review meetings are arguably the most important project and team meetings in an organization (and a required SOP now at my company) since it defines lessons learned; what we did well, what we did not, how we can improve. It helps identify “the experience” of the team and the client. It’s ALL about the client’s “experience.” The team’s experience is equally important  (client experience is only as good as the team experience and service to each other)

There’s many hotels, restaurants, auto dealers, contractors, engineering firms, professional services corps, ALL TOUTING the SAME THING.

Which one’s do you like to frequent and write checks to? Those with whom you have a positive experience or a negative experience ? Positive experience (gratitude, smiles, fair price, great value, delivering on what has been promised) means repeat business and growth.

Post project reviews are necessary for company and professional advancement.

All progress starts by telling the truth. These meetings are great truth revealers and tellers. We learn and grow through doing, celebrating wins, and fixing problems.

Advice

Posted on by johnlwheaton1

Some advice I gave to a staff member the other day regarding an email exchange with a client on which I was bcc’d.

While you’re right, and factual, I’d never say to a client “you’re wrong”
It’s not appropriate expression and just shows the growing frustration on this issue
Words like “I disagree” or that’s not aligned with specifications”
Never directly attack the person no matter how foolish they are, because it wont register to an angry or stubborn person. Attack the problem and suggest an alternative path to resolution
If they are unwilling then seek intercession as you’ve done. As you stated, sometime it’s best to step back and stop

communicating”

Be wise

Be personable

Be clear

Be respectful

Draw appropriate boundaries