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Mar29
Why Cutbacks Don't Help

As I’m reading through the news headlines today I come across some stories...

Circuit City to Cut 8% of Staff

Borders Slashes Buyer Rewards, Cuts Discounts
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It’s sad and disheartening to see that companies are so focused on doing cutbacks instead of focusing on what is the most important element of their business - the customers.  I know I’ve talked about this subject before, but I’d like to reiterate the fact that cutbacks do not solve the money problem

Ok, so Circuit City thinks that they’re staff is making too much money.  They fire them and hire on people who are going to be paid less.  Pretty soon these new people are going to realize that they got a bad deal and will resent working there.  So of course, the customer suffers because of bad service from these disgruntled employees.  And the cycle continues...

So, what solves the money problem?  Taking care of the customers you do have so that they tell all their friends to come shop with you.  Ok, not so simple if you‘re a business owner in financial trouble, but you can at least take that first step, couldn’t you? Instead of moaning and groaning about how my advice sucks, why not stop reading and pick up the phone to connect with a customer?   


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