There was a time when I managed a very profitable furniture store in Florida. Of all the stores in the region, this store had the highest dollars per transaction. The sales staff was optimized to drive this key metric. They were engaged, energetic, and proud of their sales abilities.
And then there came a day when it all changed. The top brass of the organization decided to change direction. No longer were they interested in the higher ticket sales. They gave us a new mission: get more customers to buy regardless of the amount they were spending. They told us it would be better to convert a higher percentage of our traffic into sales.
Old model: 20% of 100 customers spending $150 = $3,000
New model: 40% of 100 customers spending $20 = $800
We had no choice to comply. Our merchandise assortment began to change. The big-ticket items were replaced with smaller ones. Our sales began to plummet. At the same time, the economy was going through a difficult recession. I could no longer support the highly curated sales force in my store. Without the high average sales, hours were cut. Motivation was lost. All this happened around eleven years ago. Today, that company that had over 1,000 stores finally shut the doors on its last 500. Bankrupt.
In a highly competitive market, to change your identity is a dangerous choice. The goal is profitability, and there are several different ways to achieve it. Did this company make the right choice? I don’t believe so. There could have been several factors that finally brought this company down. Maybe:
- The world lost its interest and moved on,
- They got ate up by the bigger dogs in the market, or
- The economy dictated that basic needs were more necessary than specialized wants.
Whatever it was, they were no longer competitive. The end goal should have been profitability and somewhere along the way, they got bogged down until they had no choice to shut down.
I would love to say that on an individual level on I am immune from such catastrophes, but am I? How many times have I lost the big picture and got mired in the bog? How many times has my attention been diverted onto something of little or no significance? No doubt, it has been way too many times. When I think I see the path so clearly ahead, I still get squirreled. When it happens again, and it will happen again, I must not give it more time than it deserves. I need to address it quickly and move on.
A key point to bear in mind: The value of attentiveness varies in proportion to its object. You’re better off not giving the small things more time than they deserve. -Marcus Aurelius