Three Rules for Business Success

In 2017, I wrote my Business Rule #1.

Here’s a more complete list.

#1: Have what customers want.

#2: Have it where they want it.

#3: Have it when they want it.

They sound simple. Most laugh when they hear them.

But, businesses too often violate these rules.

Sometimes they violate these rules because they miscalculated.

Coke’s New Coke disaster is an example of that. A key mistake Coke managers made was to assume the results of blind taste tests represented how customers would behave in the real world. One difference, for example, was that while a sweeter drink fared better without food, lots of folks  preferred original Coke with food.

Sometimes it’s a conscious trade-off.

The chef in the linked post closes the kitchen in her restaurant when the last person who’d like to eat there finishes ordering. Most other restaurants, however, make the conscious trade-off to close the kitchen at a set time every night, because keeping it open later doesn’t pay off.

Sometimes they simply don’t understand what their customers want. There’s a shocking number of folks in business in this camp.

In the early 2000s, Walmart became so singularly focused on low prices — what they thought their customers wanted — that they let the client experience slip. Stores got sloppy and checkout lines were long as they tightly managed their cashier labor.

Even price sensitive customers, like myself, got turned off and discovered that you ‘get what you pay for.’ I found myself frequenting Target more. The prices were higher, but the stores were well kept and the checkout lines were short.

It turns out that while price matters, so does convenience and experience.

To Walmart’s credit, they noticed and responded by investing in client experience by cleaning up their stores and shortening the checkout lines, just as they are now responding to the new conveniences innovated by Amazon.

The best businesses over the long haul tend to do the best job at developing a deep understanding of these simple rules.

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I thought so

Two-day shipping has helped double warehouse land prices.

I wrote about it here. Well, not doubling warehouse land prices, but causing the shift to online retail.

The first article mentions that old retail space will start to be converted to last-stop warehouse for extra fast deliveries. Sound good.

Kindle Everywhere

There was a homeless dude that camped near my home as a child.  We always saw him walking along the business strip and he often came into the shops and diners while we were there.  He’d chat with the business owners, something would change hands and he’d walkout.

Everybody liked him.  He was always nice and polite and even as a kid I recognized that he would do odd jobs for the business owners in exchange for a few bucks, a cup of coffee or bite to eat. That’s just the way things were.  They were that way for a long time before I was born.

His name was Kendall.  My brother and I would see him and say, “Man, that Kendall is everywhere.”

Back then, I never would have guessed our childhood observation would inspire the title of a blog post.  Nor could I imagine what blogs or computers were.

Back in this post, I wrote that one of the things keeping me from buying a Kindle was that I couldn’t check out library books on it or it didn’t have a Netflix-like subscription plan for checking out books.

I only buy a few of the books that I read.  I didn’t want to have to start buying more just to have something to read on a Kindle.

Not long ago, Amazon.com started offering Kindle library checkouts through a service called Overdrive.  My library hooked up with Overdrive.  I have a Kindle app for my iPhone.  I’ve read portions of a few free Kindle books on my iPod and iPhone, but nothing that has had held my interest of yet.

Until now.

I borrowed (or downloaded) Daniel Hannan‘s The New Road to Serfdom.  It’s holding my interest.  And, since the phone goes just about everywhere I go, so does the Kindle App that is loaded on it and my library checkouts.

Now, I’m finding new snippets of time to read my library books that I could not use to read before because it was too difficult to carry library books everywhere.

For example, this evening while I waited in line at a retailer, I pulled out my iPhone, tapped the Kindle app and read a few screens of my borrowed library book.

And for good measure, here’s a great quote from Hannan’s book that I read while standing in line.  Here, he’s contrasting the Constitutions of the United States and the European Union (p. 44):

Where the one was based on empowering the people and controlling the state, the other was based on empowering the state and controlling the people.

I’m sure you can guess which was which.  Or maybe not.  Who knows?

Anyway, thanks to the folks at Amazon, Apple, Overdrive and my local library and the ever present communications networks (that allowed me to check out a library book and receive it instantaneously and not have to worry about getting it back on time) for helping me improve my life a little bit and read books in places I would not before.

The Other Seth on the Kindle

Seth Godin has some wonderful ideas about what the Kindle should do to beat back iPad.    But, I have news for Seth.  Even a $49 or free Kindle isn’t going to beat the iPad.

Kindle was an awesome product. But, from what I can tell, the iPad is that much better.  The price is relatively immaterial.  Why have two devices that do about the same thing, but one does it much better?

Kindle may be able to occupy a profitable niche for book-0-philes, but unless it pulls an HTC leap in product development, it’s going to lose to iPad.

Kindle is a sunk cost. My guess (and as always, I could be wrong) is that Amazon would better off tying in with the iPad early before Apple’s iBookstore starts taking a chunk of their business.

I wish both devices would support pdf’s better.