The Value of Your Service

What if customers paid exactly what they thought the value was? Would your business prosper?

Have you ever given a tip to a street performer? Also known as buskers, street performers rely 100% on value to value transactions. They have barely two minutes to make an impression, and only get paid what people think they are worth. Sometimes that's a dollar, sometimes that's a dime, and usually "customers" keep on walking without paying anything at all.

Could your business survive using that model?

I've considered it as a model for my leadership training practice. Come to a workshop, or get some coaching and consulting and then pay me exactly what you think it was worth. What stops me? Not sure. Is it fear of the unknown monetary value? Is it fear that human nature might be to grab for the bargain (free!) and move on?

If a business demonstrates value that the customer is seeking and delivers on that promise, shouldn't people pay what is fair (or even more)?

What do you think?

Imagine a doctor who only got paid if the patient was happy with the service and treatment.

Imagine a restaurant where you not only tipped what the server was worth but also paid the restaurant what the service/decor/food/atmospher was worth.

Do we trust people enough to trust their judgment on what to pay?

In this bargain grabbing low economy world will people always underpay?

What do you think?

Are you willing to rely on the busker payment method for at least one of your goods or services? Why or why not?

-- Douglas Brent Smith

http://frontrangeleadership.com

P.S. update: I keep thinking about this from time to time. What surfaces often is the inequity of how we as a society pay people. Many professionals prosper, but my friends in retail, food service, and early childhood education struggle with below-median wages and ever shrinking benefits. If we made that voluntary, would it decline even further?

Are people valuing the right things? Is the work provided by that cashier really less valuable to you than you already pay?

I still don't know the definitive answer, so I welcome your opinion. How do we value your service?

(22 September 2012)

Comments

Side Hustle Blues?

As a leader, do you ever sing the side-hustle blues? That's when your team seems distracted because they're tired from working multiple jobs. When I worked in food service it was all around me: team members who were already wrestling with variable schedules and also juggling multiple jobs. Maybe because they enjoyed their other gigs -- like the musicians, actors, artists, and writers on the team. Or maybe because otherwise they couldn't make ends meet so there were the side-hustles in driving, delivering, retailing, and add-on food service shifts. People are wonderful and their potential is unlimited but their physical selves are not unlimited. Which can bring on the side hustle blues when people are tough to schedule, hard to motivate, and just plain tired. You'll never eliminate the gigs that team members enjoy, nor should you. Those are not the ones really sapping the energy as much as those that they are in only for the money. Employees won't need an only-for-t...

Promise and then Deliver

Be careful what you promise to gain a new customer. They are only new for a day. After that, expectations continue even if you forget your promise. Be careful what you promise. Do you have what you need to give your customers what they want? Because probably, what they want, is what you've promised. -- doug smith

Strong Self-Esteem

How do the people on your team feel about themselves? How about you? How do you feel about yourself? Self-esteem matters. The way we see ourselves influences the work that we do. If you want healthy, vibrant, vital work from your team, why not make sure that the way that they think about themselves is strong? There are few things stronger than healthy self-esteem. To strengthen self-esteem among your team members: Appreciate good performance by providing specific compliments Spend time talking one-on-one with team members just to let them talk about what interests them Smile The list is longer than that of course, but start with those three things and you'll like the results. And that is good for YOUR self-esteem, isn't it? -- doug smith

The Benefits of Supervisory Training

When was the last time you had any leadership training? How often do the supervisors in your organization get training? If you are like most organizations, it's never enough. Some teams go without any supervisory training at all and expect supervisors and managers to learn as they go, on the job. Unfortunately, while it is memorable to learn from your mistakes, it comes at a high cost. People get tired. People leave. Important accounts go away. Customers complain. And teams struggle without the skills and knowledge it takes to build cohesive teams that are capable of solving problems, improving performance and achieving goals. Admittedly, I can be expected to support training since I'm in the business. Still, take a closer look at your own leadership career and decide for yourself. Are leaders better off with more training and development or with less? Supervisory training can generate benefits that pay off long after the training is over. Here are just a few of the things sup...

One Kind of Choice

It is not always the answer, but surprisingly often it is: It's easier to hire a motivated worker than it is to motivate an unmotivated one. That's not the end of the story. It could be great hiring advice though. Whatever the technical skills are for people you are interviewing to hire, be sure to ask some questions about motivation that can't be answered with a yes or no. Questions like: When were you the most motivated in your life? What kinds of work motivate you? What's your approach to a work day when for one reason or another you don't feel very motivated? If you had been here for one week, what would we see that shows us how motivated you are? Start there, and follow-up with more questions. Give each candidate time to convince you whether or not they will bring motivation to your organization. You can teach people almost anything, but it's always easier if they are already motivated. -- doug smith

Your Reputation

More authority means higher levels of responsibility. More power requires more service to others, not less. What you do with your power is who you will be known as. Also, how you use the power you have creates who people will remember you as. How do you want to be remembered? -- doug smith

Don't Jump!

I do it. You've probably done it, too. It gets us into trouble misinterpreting and reaching false conclusions. Slow down. Ease up from that jump. Stop that jump to conclusions and you'll avoid many big falls. -- doug smith

More Than Convenience

This is probably get some disagreement. We've come to rely so much on one particular trait of business, probably even more than price. Convenience. We make so many decisions based on how EASY a transaction is. It's so much EASIER than ever before and we've all been spoiled by click-and-ship that anything with any friction whatsoever gets passed over. That's an understandable decision, but not always the best one. Convenience is great, but no substitute for quality. Hamburgers are convenient but wouldn't you rather eat a steak? (please excuse me my vegetarian and vegan friends.) Social media is convenient but how about the depth and richness of a long face to face conversation with a dear friend? I advocate that we consider other measures in our important decisions. Measures other than convenience: Quality Durability Care Beauty Drama What would you add to the list? Convenience is a poor measure of quality. Let's consider everything else that makes business -- a...

Communicate!

A lack of communication is often interpreted as a lack of care. -- Doug Smith

For example

Get good at something that won't obsolete itself. For example: emotional intelligence creating great conversations encouraging people leadership What would you add to the list? Which ones are you developing? -- doug smith

High Performance Leadership

Search This Blog