The Tribune

By Simon Cooper

Res Socius

Karl Albrecht founded the discount supermarket chain, Aldi, after he cut his teeth in his mother’s grocery store. He must have known what he was doing. He’s currently worth $25.4 billion, and Forbes ranks him as the 10th wealthiest person. He also said: “If you’re not serving the customer, you had better be serving one who is.” And that, in a nutshell, is what being in business is all about.

If you serve your cat the finest food in the whole world, on the best possible bone china, and it does not like it, then you have not sold it on the idea. Positive reaction is the only thing that matters when it comes to feeding cats. What customers want matters, too. And that makes knowing their opinions critical to any start-up business.

If I had $100 for every time someone starts a business just because they like the idea themselves, I may not be as rich as Karl Albrecht, although I would certainly be better off. There is absolutely no substitute for analysing competition, talking to experts and consulting potential customers first.

The other thing that drives me hopping mad is when a salesperson tries to sell the future. I buy something because I need it now, not because it is going to be superseded or that I am going to be the target of costly upgrades. Customers want things that work, and are going to stand the test of time.

Macy’s motto is: “Be everywhere, do everything, and never fail to astonish the customer”. That’s important because we live in an age of cellular phones, microwaves and other devices of instant gratification. Customers expect to be entranced by products and experience pleasure while they shop. Thatss as important to products as it is when it comes to sales staff.

Marshall Field was the one who said: “Right or wrong, the customer is always right.” And that applies to what the customer wants to buy as well. He made enough money to endow a museum with $8 million back in 1906, and that was a heap of money way back then. He also introduced unconditional refunds in an era where ‘beware the buyer’ ruled. He respected the power of an irate customer, and the power of good they could do when turned.

Businesses are there to meet the needs of customers, not the other way around. True, inventors do uncover new requirements (although they still need to be present in some form or other). If you are in start-up mode with new ideas yourself, you need to be able to answer these three questions satisfactorily. Why would customers buy it? Will I be able to make a profit? Why would customers want to buy it from me?

NB: Simon Cooper is a founding partner of Res Socius, a firm authorised by the Bahamas Investment Authority to facilitate the sale and purchase of businesses and provide management consultancy services. Contact 376-1256 or visit www.ressocius.com.