Ferociously Observant

It’s not who you are that holds you back, it’s who you think you’re not. -Anon.

Concurrent Concessions 2 May 2007

Filed under: Uncategorized — ferociouskater @ 3:03 pm

So right now I’m both happy/upset with Apple. Both feelings make me ponder something about cutting your losses.

I’m upset because they pushed back the shipping date on my new MacBook. Now I probably won’t get it until the 5th at the earliest and the 15th at the latest. I’m betting on the 15th. That will have given Thomas  almost a full 3 weeks of “neener-neener” time with his new MacBook Pro.

I’m happy with Apple because when I pointed out that we paid extra for faster shipping so I’d get my computer sooner, they knocked off $50. They’re smart enough to figure out that they’d rather absorb $50 (like they can’t afford it) than lose an order altogether.

Doesn’t this seem like a smart business practice? Lose a few bucks but maintain the customer’s happiness and future ordering?

I think it’s very interesting that Apple, a company that really can afford to lose one little order of one MacBook, realizes that a $50 loss is better than a $1500 loss (and the loss of a repeat customer). Recently, the owner of a local veterinary clinic wasn’t willing to cut his losses – and why? He lost a client – a whole client, and now probably everyone that client talks to – over the exact same figure: $50. Granted, this company doesn’t bring in billions of dollars of revenue a year. But let’s see what would have happened if this local businessman had cut his losses:

This client had been bringing his dog to this clinic since it was a puppy. The dog is now 5 years old. The first year of care for a puppy that starts at 6 weeks of age is about $200, including vaccines and neutering. For every year after that, yearly vaccines are about $100 a year, this figure including flea/heartworm prevention. So far, the client had invested at least $600 in his dog at this company. The dog is a small one, so it will probably live at least another 6 years. That’s another $600, at least. So for the life of this animal, the clinic would have brought in at least $1200. And this is ONE pet. What about the next one? What about when they get another dog before this one goes? What about a cat? What about their daughters’ animals, and her brother-in law’s? Over the years the figures compound.

But now they won’t, not for this clinic anyway. That’s at the VERY least $600 that this clinic will not get. It’s at the VERY least $600 that will go to its competitor. All for a measley dispute over $50.

Small business owners can learn a lot from multi-billion dollar corporations like Apple. The question is, when the figures are smaller and it’s time to buy another car/house/horse, will they pay attention?


One Response to “Concurrent Concessions”

  1. Hanna Says:

    random. kate, i bought a macbook and they did the same thing to me, however what ended up happening is they actually upgraded mine without telling me. apparently there was a new release and instead of shipping mine and having me call back to ask for the updated version. they just held off on shipping it until the release came out. however, when you get your macbook… you won’t be unhappy. i LOVE mine! anywhos. have a good one 🙂

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