Lesson #3: Preserve Your Reputation No Matter What the Cost
Lesson #3: Preserve Your Reputation No Matter What the Cost
"Customers" old books haven't worn out, and as a result they haven't bought a new one," said one businessman by the name of Welch, in his attempts to convince Hines to produce more products and at a cheaper price. "What you're doing is making people keep obsolete directories. These directories you're selling should self-destruct every year because you've got to sell books. That's the nature of the business."
Welch kept trying to convince Hines that the very foundation of his business, his reputation, was at stake if he did not change tunes soon.
"You're hurting your reputation, Duncan," said Welch. "When people try one of these old guidebooks, they're eating at places that are no longer recommended by you. And when the food is no good, they're saying to themselves that they don't understand how you got your reputation to begin with."
Instead, Welch wanted Hines to produce a cheaper quality directory that would have a higher turnover. Hines, however, would have none of it. The thought of producing a cheap product was horrifying to Hines. Even if it were to net him more money, Hines refused to sacrifice the quality of his product.
Recognizing that Hines was "a gentleman of the old school" whose "word is his bond and he just doesn't think people would appreciate it if he incorporated my recommended changes," Welch set out to try and convince Hines to at least begin lending his name to the endorsement of other products.
"You've got a fine name," Welch told Hines. "You've got a great reputation. And if Duncan Hines endorses something and approves of it, then people will conclude that it must be good." Welch even called endorsements "bread on the table" for Hines because they would be guaranteed money-makers.
Still, Hines refused to budge. Hines thought the idea was too "commercial" for his taste, and that the only answer was to sell more of his high-quality books. Finally, Welch gave up. "I just can't change Duncan," he said.
It would be years later when Hines slowly began to lend his name for product endorsement, but not until he was ready to do so, and not until he was sure of the products. It was only years later, after developing a solid relationship with Welch, that Hines felt comfortable enough to trust him, and licensed the Hines name to products that would uphold his reputation.
As a result of his refusal to lend out his name too much too soon, Hines was able to ensure that when he did decide to do so, his reputation would remain intact.
Lesson 3 Preserve Your Reputation No Matter What the Cost
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As his success solidified and his name became a regular feature in the households of America, Hines found himself on the receiving end of numerous offers for collaboration from other entrepreneurs and businessmen. He was relatively new to the game, and he needed their help to expand his business while he could still capitalize on his successes - or so they thought.
"Customers" old books haven't worn out, and as a result they haven't bought a new one," said one businessman by the name of Welch, in his attempts to convince Hines to produce more products and at a cheaper price. "What you're doing is making people keep obsolete directories. These directories you're selling should self-destruct every year because you've got to sell books. That's the nature of the business."
Welch kept trying to convince Hines that the very foundation of his business, his reputation, was at stake if he did not change tunes soon.
"You're hurting your reputation, Duncan," said Welch. "When people try one of these old guidebooks, they're eating at places that are no longer recommended by you. And when the food is no good, they're saying to themselves that they don't understand how you got your reputation to begin with."
Instead, Welch wanted Hines to produce a cheaper quality directory that would have a higher turnover. Hines, however, would have none of it. The thought of producing a cheap product was horrifying to Hines. Even if it were to net him more money, Hines refused to sacrifice the quality of his product.
Recognizing that Hines was "a gentleman of the old school" whose "word is his bond and he just doesn't think people would appreciate it if he incorporated my recommended changes," Welch set out to try and convince Hines to at least begin lending his name to the endorsement of other products.
"You've got a fine name," Welch told Hines. "You've got a great reputation. And if Duncan Hines endorses something and approves of it, then people will conclude that it must be good." Welch even called endorsements "bread on the table" for Hines because they would be guaranteed money-makers.
Still, Hines refused to budge. Hines thought the idea was too "commercial" for his taste, and that the only answer was to sell more of his high-quality books. Finally, Welch gave up. "I just can't change Duncan," he said.
It would be years later when Hines slowly began to lend his name for product endorsement, but not until he was ready to do so, and not until he was sure of the products. It was only years later, after developing a solid relationship with Welch, that Hines felt comfortable enough to trust him, and licensed the Hines name to products that would uphold his reputation.
As a result of his refusal to lend out his name too much too soon, Hines was able to ensure that when he did decide to do so, his reputation would remain intact.
Lesson 3 Preserve Your Reputation No Matter What the Cost
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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