At 18, I worked in a warehouse for a fifth-generation fur coat dealer, a business that survived two world wars and multiple recessions. Here are six invaluable lessons I learned, which have stuck with me throughout my entrepreneurial journey.
1. How to Deal with Angry Customers
When faced with an irate customer, validate their feelings instead of downplaying their concerns. By acknowledging their anger, you help them feel understood, which often diffuses their frustration.
Real-World Application
A customer came in furious about a missing button on her expensive coat. John, the store owner, validated her anger and assured her they would fix it immediately. Her tone shifted from anger to calm, and she left satisfied, even apologizing for her outburst.
2. Creating a New Product
In the summer, fur coat demand plummeted. The store introduced a storage and conditioning service for coats during off-season months, ensuring a steady stream of revenue year-round.
Real-World Application
By offering to store and maintain customers’ coats, the business created an insurance-like product that provided value and ensured repeat business.
3. Getting People to Say Yes by Saying No
Using the concept of “no-based selling,” the store would offer storage and conditioning for coats. By asking customers if they wanted anything else and them saying no, they were actually saying yes to the primary service.
Real-World Application
When customers were asked if they needed any additional services, their “no” indirectly confirmed their agreement to the primary offer, leading to more sales.
4. Leveraging Sawdust
Sawdust refers to excess material that can be repurposed. The store used scraps from fur coats to create small items like purses and earmuffs, which were given as bonuses to customers who stored their coats.
Real-World Application
These bonus items cost the store nothing but were perceived as valuable by customers, encouraging them to utilize the storage service and upsells.
5. Creating Perceived Scarcity
During sales, the store limited the number of items customers could buy and created an atmosphere of high demand by letting in a fixed number of people at a time.
Real-World Application
Signs stating “limit two coats per customer” and “all sales final” created a sense of urgency, making customers feel they had to act quickly to secure their purchases.
6. The Importance of Consistency
The fur coat dealer’s success over five generations was due to consistently doing the boring work and improving on it. Big businesses succeed by doing the basics every day, without fail.
Real-World Application
Consistently following through with fundamental business practices, such as setting up blogs, email follow-ups, content creation, and building a sales team, leads to long-term success.
Conclusion
These six lessons from my first job have been instrumental in my entrepreneurial journey. By mastering customer interactions, creating innovative products, leveraging excess materials, creating scarcity, and maintaining consistency, you can build a successful and resilient business.
FAQs
How can I effectively deal with angry customers?
Validate their feelings and acknowledge their concerns to diffuse their anger and make them feel understood.
What is “no-based selling”?
A technique where getting customers to say no to additional services indirectly confirms their agreement to the primary offer.
How can I create perceived scarcity in my business?
Limit the number of items customers can buy and create an atmosphere of high demand to encourage quick action.
What is the importance of consistency in business?
Consistency in fundamental business practices leads to long-term success and resilience.
How can I leverage excess materials in my business?
Repurpose excess materials into valuable items that can be used as bonuses to encourage customer engagement and upsells.