Wednesday 26 April 2023

When Disappointment Strikes

We recently stayed at a UK hotel that had received a number of highly positive reviews.  Our experience, unfortunately, didn’t match those.

One of the main issues for any business dealing with people is expectations.  People expect certain levels of service and pricing, among others. Managing those expectations is a key element of any sales strategy. The problem for all of us is that we don’t always know what those expectations are until the complaints reach us…

 

The hotel was described as a “hotel and spa” which it definitely was – there was a hotel and spa!   The problems (for us) started with the hotel itself.  The building was a converted manor house. This naturally makes for problems from the outset as, unlike a purpose-built hotel with standard size rooms, a conversion means that rooms will not necessarily be of the same size, particularly when you take adding in ensuite bathrooms.  

 

Due to the circumstances in which we booked, we stayed in two (very pleasant) different rooms over two different nights. The first was spacious enough (given UK standards), but its only source of daylight was a skylight set into the sloping roof (you couldn’t really call this a “window” as it was impossible to look out without a ladder). Our opinion - we were only in that room for one night and the next would be different.

 

The next room was different, but not in the way we’d hoped. It was far smaller; a couple with large suitcases and (say) hand luggage would have found it a “tight fit” and the ensuite bathroom was tiny. The redeeming feature was a huge window, but as this looked onto a public courtyard, we had to keep the curtains closed all the time to ensure privacy!

 

The next “feature” was that, to get to the spa, guests had to walk through the bar in their robes – not a sight you’d want to see if you were trying to have a relaxing drink.  I suspect it may also have been embarrassing for spa clients. 

 

Allied to this was that we had to eat in the bar because the main dining room was closed. Even though we had asked at reception when we checked in if we had to book to eat in the dining room, it turned out that the latter was closed on the two nights we stayed and the receptionist misunderstood what we wanted and thought we were asking about booking in at the bar, where the only space left was at coffee table-height areas – not the easiest at which to eat a meal.  To top it off, my meal, when it arrived, was cold and I had to ask for it to be reheated. 

 

The final issue was the first member of staff who served us and whose voice carried throughout the bar (we suspect she was unaware of this).  What this meant was that everyone could hear our order and we could hear everyone else’s until she was moved to another area. 

 

Now the good: staff, although young, were willing (just lacking in training and awareness in some respects).  An example was when we commented on the lack of waring when we checked out and were informed by the (rather supercilious) young man who dealt with us that our confirmation had made it clear that the dining room was closed.  We checked; it didn’t. 

 

The lesson: everyone has different expectations from every business and businesses sometimes assume too much. How do we as leaders or service staff cope with this?  Is “uniformly good service” actually enough, or do we need more?  Structuring expectations can go a long way to minimising problems, but in the end it’s training, awareness and attitude that make the difference. 



I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Saturday 22 April 2023

When Prices Are "Too High"

 A friend of mine was recently quoted £200 for a contractor to pressure wash his paved driveway. For the same amount of money, he bought his own pressure hose.

This got me thinking: my friend is now the proud owner of a pressure hose with which he can now clean any part of his house or car and lend to neighbours as he sees fit. He also, however, needs to store it, maintain it and deal with any other technical issues that might arise. These would normally be dealt with the contractor who charged him or quoted him the original £200 price.

 

At what point do our products or services become “too expensive” for our customers? There seems to be a psychological barrier above which customers consider something is “too expensive”, but this can vary depending on any number of factors.

 

As business owners, it’s our job to understand this price limit and work as best we can within it. Go “too high” and business drops off.

 

Good businesses know how high they can go.  Another point is that customers may be prepared to pay more if they consider that that product or service delivered by that particular business is worth it. In other words, if they think that we provide better service or added value than the competition, our price may be less of a factor in the buying decision. 

 

I have no idea of all the factors that my friend took into account when making his decision to buy his own pressure hose, but for whatever reason, this particular business failed to convince him that they were delivering value for money. This is the key issue for any business.

 

How do we as business owners, convince customers that our products or services represent real value?



I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Sunday 16 April 2023

Cost of COVID

Many of us have started to feel the financial effects of COVID. By this I mean rising costs, resulting from two years of no business and companies now trying to recover. 

One recent example was a letter I received from a bank advising that the costs of sending money using their telephone banking centre were going to rise as the costs of maintaining said, telephone banking centre were increasing.

 

They explained that people were using phone banking less: this may be because people became much more used to using online banking services as call centres couldn’t be fully staffed at the height of COVID due to social distancing constraints, or because of other factors.

 

Whatever the case, with both the costs of recovery and events in Eastern Europe raising the general cost of living, we can expect to see rises from suppliers, stores and others whose services we use.

 

As businesses, we need to contain costs as much as possible, or we go out of business.  Business owners are now in a dilemma: raise prices and lose customers or hold prices as long as they can to keep business coming in and hope that things will, eventually, calm down.

 

How has your business been impacted? What have you been able to do to contain costs?



I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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