analysis possible, applying these questions to everything from my friends to customers and advertising to relaxation activities. Don’t expect to find you’re doing everything right—the truth often hurts. The goal is to find your inefficiencies in order to eliminate them and to find your strengths so you can multiply them. In the 24 hours that followed, I made several simple but emotionally difficult decisions that literally changed my life forever and enabled the lifestyle I now enjoy.
The first decision I made is an excellent example of how dramatic and fast the ROI of this analytical fat-cutting can be: I stopped contacting 95% of my customers and fired 2%, leaving me with the top 3% of producers to profile and duplicate.
Out of more than 120 wholesale customers, a mere 5 were bringing in 95% of the revenue. I was spending 98% of my time chasing the remainder, as the aforementioned 5 ordered regularly without any follow-up calls, persuasion, or cajoling. In other words, I was working because I felt as though I should be doing something from 9–5. I didn’t realize that working every hour from 9–5 isn’t the goal; it’s simply the structure most people use, whether it’s necessary or not. I had a severe case of work-for-work (W4W), the most-hated acronym in the NR vocabulary.
All, and I mean 100%, of my problems and complaints came from this unproductive majority, with the exception of two large customers who were simply world-class experts of the “here is the fire I started, now you put it out” approach to business. I put all of these unproductive customers on passive mode: If they ordered, great—let them fax in the order. If not, I would do absolutely no chasing: no phone calls, no e-mail, nothing. That left the two larger customers to deal with, who were professional ball breakers but contributed about 10% to the bottom line at the time.
You’ll always have a few of these, and it is a quandary that causes all sorts of problems, not the least of which are self-hatred and depression. Up to that point, I had taken their browbeating, insults, time-consuming arguments, and tirades as a cost of doing business. I realized during the 80/20 analysis that these two people were the source of nearly all my unhappiness and anger throughout the day, and it usually spilled over into my personal time, keeping me up at night with the usual “I should have said X, Y, and Z to that penis” self-flagellation. I finally concluded the obvious: The effect on my self-esteem and state of mind just wasn’t worth the financial gain. I didn’t need the money for any precise reason, and I had assumed I needed to take it. The customers are always right, aren’t they? Part of doing business, right? Hell, no. Not for the NR, anyway. I fired their asses and enjoyed every second of it. The first conversation went like this:
Customer: What the &#@$? I ordered two cases and they arrived two days late. [Note: He had sent the order to the wrong person via the wrong medium, despite repeated reminders.] You guys are the most disorganized bunch of idiots I’ve ever worked with. I have 20 years of experience in this industry, and this is the worst.
Any NR — in this case, me: I will kill you. Be afraid, be very afraid.
I wish. I did rehearse that a million times in my mental theater, but it actually went something more like this:
I’m sorry to hear that. You know, I’ve been taking your insults for a while now, and it’s unfortunate that it seems we won’t be able to do business anymore. I’d recommend you take a good look at where this unhappiness and anger is actually coming from. In any case, I wish you well. If you would like to order product, we’ll be happy to supply it, but only if you can conduct yourself without profanity and unnecessary insults. You have our fax number. All the best and have a nice day. [Click.]
I did this once via phone and once through e-mail. So what happened? I lost one customer, but the other corrected course and simply faxed orders, again and again and again. Problem solved, minimum
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