When it comes to business most of the time the fine details are what will define your company and set it apart from its competitors. The details may not even have any direct effect on the efficiency or quality of your company’s work; however, it will cause customers to notice and remember your company in a positive light. In general, we determine our average cost of acquisition the cost to obtain customers, but the real value comes from those customers whom we retain. Therefore, think of the extra cost associated with management of the details of your company’s as an insurance policy for your cost of acquisition.
I have a small photography company which I run as a sole proprietor. The business model is simple: Take good raw samples from landscapes and architecture. Then edit them with simple but effective postproduction methods. Lastly upload edited samples with my company’s signature on stock photo websites. At first business wasn’t great, it was simple to obtain customers by using free samples as a calling card, however getting these customers to return for repeat business was more difficult. In this instance the time which I put in to obtaining the raw samples and postproduction editing was my cost of acquisition for these people. Once someone ordered a print, I calculated the cost of production to think of. This is where most people would skimp on the details to lower cost. This is what I did at first. I chose the cheapest shipping method possible which entailed using a cardboard shipping tube, and packaging tape.
In general at the beginning customers would order once and I would never hear from me again. It wasn’t until I received a bad review that I found out why. While being shipped the cardboard tubes were being mishandled and therefore the prints inside were getting created or wet. In short, they were ruined. Up until that point no one had contacted me about it, instead they simply never ordered again. The first change I made was to upgrade my shipping method to a reusable screw top plastic shipping tube. Believe it or not the next customer not only left a stellar review with pictures of the tube that I chose to send it in but they must have referred me to several people because my orders then began increasing.
It reminded me of my time as a child working for a local hot dog stand. We sold the most expensive hot dogs in the city at the highest volume, All of our materials were purchased at the same restaurant supply company as the other hot dog stands in this city, however the main difference was that we purchased the upgraded packaging supplies and they taught all of the employees how to properly wrap and pack hotdogs neatly. So instead of people getting their hot dogs in brown bags dripping their condiments on their neighbors they were professionally wrapped in wax paper and packed in brown cardboard boxes … Read More