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Lesson #3: Preserve Your Reputation No Matter What the Cost

Article Overview: 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.

Lesson #3: Preserve Your Reputation No Matter What the Cost

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.

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Article Tags: attempts, businessman, businessmen, collaboration, duncan hines, endorsement, game, gentleman, great reputation, guidebooks, households, nature of the business, old books, old school, quality directory, recommended changes, stake, successes, tunes, turnover



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