Author Topic: Got business acumen? Step inside and help me out  (Read 414 times)

Offline SteveBailey

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Got business acumen? Step inside and help me out
« on: June 17, 2008, 10:21:09 PM »
set the stage:

My biggest client for transport uses three transport companies. Their field staff(nurses) may call any of the three. Recently the administrator approached me
and said she is ditching one of the companies and wants to split the business between the two remaining companies. She divided up the valley at I17. I got the western part. The west side is where the bulk of the business is and I did quite well. The other transport company(let's call him Vlado) encroached on my territory repeatedly, effectively ignoring the administrator's instructions. I never crossed the boundary.

Vlado cried to the administrator that he was dying on the vine and needed more business(he had more 50% when there were 3 companies). The adminstrator told Vlado to wait and see what the mid month billing comparion looked like. Vlado pretended to misunderstand her and called west side nurses and told them to use him. His dishonesty cost me about $1500.00.
I finished the first two weeks of June about $2000.00 ahead of Vlado but my business fell off dramatically after Vlado's unauthorized phone calls to nurses.

The administrator (Jerene) wants a 50-50 split between the two companies. I spoke with Jerene yesterday and advised her that the only way to assure this would be to have one of the two companies accept all phone calls and divide the business.(Jerene would have logicistical problems and expense to train her staff to do this). I advised her that I had demonstrated that I "play fair" as I am the one who never crossed into the other's territory. I told her that I'd assure both companies made the same amount of money and offered to put up a real time data base so that this could be verifed at any given moment during the month(billing cycle). At first she balked. "Vlado would never go for this." I said, "It's not up to Vlado. It's up to you." She agreed and seemed to be warming to the idea as we discussed it further.

Both transport companies get high marks for service.

I'd be perfectly happy w/ 50%

My trump card(I've never played it.): My contract calls for me to be the "preferred providor" means they are supposed to call me exclusively and can only call someone else if I am unable to handle the transport.



The problem with the trump card: If I play this card, I risk bullying Jerene into using me exclusively and my contract is up in 4 years. Second half of this problem: My mom is business manager at the client and a long time friend of Jerene(they started it together). Also, I really care about Jerene and she gave me the jump start in my business.. without her I'd not have it. I'd hate to do this to a friend.


The game:

Tomorrow, all interested parties are meeting at 9:00. Vlado will no doubt cry, and Jerene will have to try to find a way to make everyone happy. If Vlado doesn't want to play nice, I could drop my trump card on his stack and make it mine. It's possible that I'd be doing Jerene a favor by ending this ongoing problem. It's equally possible that I'd really put her in a bad spot because I'm forcing her to do something.

If Jerene decides the situation is too much of a PITA and says "You two figure it out" I'm inclined to go into business-self-preservastion mode and play my "preferred providor" card.

If I did this, then told Jerene I'd still dispatch half the business to Vlado, would she be glad that I solved the problem even though it was hardball?
I do not like Vlado, he's slime.... I could take all of the business but I do not think Jerene(at least publicly) wants this.
One part of me enjoys the intrigue but if I screw this up, I'm out of business. This client represents 90% of my income at present.

Opinions, advise please.


Offline rabbidrabbit

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Re: Got business acumen? Step inside and help me out
« Reply #1 on: June 17, 2008, 11:18:07 PM »
Jerene is the only one you care about.  To what extent you have control is dependent on how she interprets the situation.  Knowing her mindset and managing that will determine the outcome.  Because you have a close relationship with her you ideally would make this come together before 0900 tomorrow.  Given the time restraints, I would call her up and ask that the meeting be postponed for another day or so to get your ducks lined up.  If that essentially turns into a discussion about her needs and how you can help her then all the better.

Potentially, you can convince her to let you handle all of the calls and take a referring commission on any competitor given the "preferred provider" cause. Many women feel compelled to be fair but if you point out the lack of fairness of your competitor, your trustworthiness as a friend etc.. She may come to see that clause to be an easy out to eliminate Vlado. The big question is why she wants more than one and can you make a compelling reason besides the clause for that to become reality.

Offline Samiam

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Re: Got business acumen? Step inside and help me out
« Reply #2 on: June 17, 2008, 11:24:08 PM »
If you and Vlado are equivalent providers of the same service - you lose.

You don't win this by tossing your ethics, as Vlado has done. But you don't win this by being happy with 50% cut. Your objective is to be the only and obvious choice.

You achieve this by providing a better value and by being able to demonstrate that you are the better value. Assuming you can't cut your rates in half, value will come from extra effort on your part. Don't strike some bargain worrying about what Vlado can and can't do. You proactively do things that make you a better value. Provide more or better reports. Identify rush times and have a driver on standby. Give them an exclusive phone # and make sure someone always answers it. If you can swing the cash flow, give them better terms - net 60 payable instead 30 (only do this if it really provides some benefit to the customer).

Most important, show that your main interest is in their success. Both from a business perspective and a personal perspective. That is, show that you see how you doing your job better benefits their business (hopefully it does). But also try to understand what makes a nurse successful. how are they measured on job performance? What can you do that benefits a nurses career? Being quicker? Streamlining a process so that the nurse spends less energy/time dealing with you? Think about what makes a nurse successful and what you can do to help that. Also, if you have a good idea, give a nurse (or all the nurses) credit for it - in front of them and to their supervisor if at all possible. "Sheila had a great idea about how I could change my invoice to make it easier for the business office to understand. She's really great to work with." Pow, Sheila will never willingly call Vlado again.

Summary:

Stay on the high road. Say you are happy with a 50/50 split. But in your mind and in your actions nothing should be further from the truth. Vlado MUST GO. It must be *their* decision, and it should be an easy one because plain and simple, you are better value.

Your primary interest is *their* success. Both at a business and personal level. Everything you do, no matter how small - just asking how things are going and wondering aloud if there's any way you can help them be better at their business - contributes to this perception.

If the nurses are making the decision on who to call, regardless of guidelines, then your job is to give them a reason to call you. The best reason they can have is that you make them look better to their boss. Second best is that you make their life easier. Find ways to be the best choice for a nurse.

storch

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Re: Got business acumen? Step inside and help me out
« Reply #3 on: June 17, 2008, 11:28:24 PM »
play above board, keep your cool and your option three sounds reasonable.  guys like your competitor eventually screw themselves out of the picture anyway.  the key is to hold out and to come out with your integrity intact.  reminding her of your trump card but not actually playing it would be smart if you could possibly do that.

without understanding the dymnamics what I am about to type might be out of line here but it seems to me that having all your eggs in one basket and the handle of that basket held by a woman is madness.  I would be looking for alternative business yesterday.

Offline rpm

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Re: Got business acumen? Step inside and help me out
« Reply #4 on: June 18, 2008, 12:38:33 AM »
Nice guys finish last. Just sayin'...
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Stay thirsty my friends.

Offline BaldEagl

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Re: Got business acumen? Step inside and help me out
« Reply #5 on: June 18, 2008, 01:22:51 AM »
Good advice from Samiam.  Take it to heart and use it to your advantage.  If you can accomplish all of those objectives price will never be an issue even if you are priced higher and you will eventually claim the entire territory.

At the same time, you've got way too many eggs in one basket and need to get in gear to expand your customer base.  What will happen to you if this customer experiences cash flow problems?  Can you survive and still provide services or even stay in business?  While the other guy is an immediate concern, he's not your biggest threat; the current state of your customer base is.
I edit a lot of my posts.  Get used to it.

Offline SteveBailey

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Re: Got business acumen? Step inside and help me out
« Reply #6 on: June 18, 2008, 01:28:04 AM »
  While the other guy is an immediate concern, he's not your biggest threat; the current state of your customer base is.

Thanks for your input everyone.  I own more than one company/revenue stream.  He is not a threat to me at all, I can be rid of him at any time, but there will be a price to pay.

Offline Curval

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Re: Got business acumen? Step inside and help me out
« Reply #7 on: June 18, 2008, 06:55:57 AM »
You've got to know when to hold 'em
Know when to fold 'em
Know when to walk away
Know when to run
Some will fall in love with life and drink it from a fountain that is pouring like an avalanche coming down the mountain

Offline ZetaNine

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Re: Got business acumen? Step inside and help me out
« Reply #8 on: June 18, 2008, 07:49:07 AM »
set the stage:

My biggest client for transport uses three transport companies. Their field staff(nurses) may call any of the three. Recently the administrator approached me
and said she is ditching one of the companies and wants to split the business between the two remaining companies. She divided up the valley at I17. I got the western part. The west side is where the bulk of the business is and I did quite well. The other transport company(let's call him Vlado) encroached on my territory repeatedly, effectively ignoring the administrator's instructions. I never crossed the boundary.

Vlado cried to the administrator that he was dying on the vine and needed more business(he had more 50% when there were 3 companies). The adminstrator told Vlado to wait and see what the mid month billing comparion looked like. Vlado pretended to misunderstand her and called west side nurses and told them to use him. His dishonesty cost me about $1500.00.
I finished the first two weeks of June about $2000.00 ahead of Vlado but my business fell off dramatically after Vlado's unauthorized phone calls to nurses.

The administrator (Jerene) wants a 50-50 split between the two companies. I spoke with Jerene yesterday and advised her that the only way to assure this would be to have one of the two companies accept all phone calls and divide the business.(Jerene would have logicistical problems and expense to train her staff to do this). I advised her that I had demonstrated that I "play fair" as I am the one who never crossed into the other's territory. I told her that I'd assure both companies made the same amount of money and offered to put up a real time data base so that this could be verifed at any given moment during the month(billing cycle). At first she balked. "Vlado would never go for this." I said, "It's not up to Vlado. It's up to you." She agreed and seemed to be warming to the idea as we discussed it further.

Both transport companies get high marks for service.

I'd be perfectly happy w/ 50%

My trump card(I've never played it.): My contract calls for me to be the "preferred providor" means they are supposed to call me exclusively and can only call someone else if I am unable to handle the transport.



The problem with the trump card: If I play this card, I risk bullying Jerene into using me exclusively and my contract is up in 4 years. Second half of this problem: My mom is business manager at the client and a long time friend of Jerene(they started it together). Also, I really care about Jerene and she gave me the jump start in my business.. without her I'd not have it. I'd hate to do this to a friend.


The game:

Tomorrow, all interested parties are meeting at 9:00. Vlado will no doubt cry, and Jerene will have to try to find a way to make everyone happy. If Vlado doesn't want to play nice, I could drop my trump card on his stack and make it mine. It's possible that I'd be doing Jerene a favor by ending this ongoing problem. It's equally possible that I'd really put her in a bad spot because I'm forcing her to do something.

If Jerene decides the situation is too much of a PITA and says "You two figure it out" I'm inclined to go into business-self-preservastion mode and play my "preferred providor" card.

If I did this, then told Jerene I'd still dispatch half the business to Vlado, would she be glad that I solved the problem even though it was hardball?
I do not like Vlado, he's slime.... I could take all of the business but I do not think Jerene(at least publicly) wants this.
One part of me enjoys the intrigue but if I screw this up, I'm out of business. This client represents 90% of my income at present.

Opinions, advise please.










Woah!!  50/50 split?  sounds like someone thinks they are entitled. time to remove yourself from the equation and maximize their output.
I'd key on this part of your discussion: "Both transport companies get high marks for service".


make it a win/win:

* remove yourself from the decision by making and announcing that it will now be done on a precise quarterly point grading system.

* this will only increase their productivity (and service to you) by competition among themselves.


Inform them at the meeting tomorrow that you have been advised that a new basis of criteria (ie: report card system) is going to be initiated, awarding an actual point system in various phases of the services they provide your company, and the report card will be issued quarterly.  All results will be shown to both parties...and obviously...the best scoring vendor will earn the most rewards the following quarter.

This removes you from any personal responsibility issues, and allows the companies to provide you will the highest level of service possible at all times.
« Last Edit: June 18, 2008, 09:07:06 AM by ZetaNine »

Offline indy007

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Re: Got business acumen? Step inside and help me out
« Reply #9 on: June 18, 2008, 08:33:28 AM »
This client represents 90% of my income at present.

Opinions, advise please.

Read a good quote on this. "It's okay to put all your eggs in 1 basket, as long as you spend your time making sure the basket never gets kicked over."

From my perspective, my business is a bit diversified. We have 6 revenue streams at different levels providing different services. What I like to do is thorough research on all my competitors. I find out who their customers are, what they buy, how much they buy, and how much they buy it for. It's not actually difficult. Then, I sort out the ones that are corrupt.. the guys that are customers because somebody bought them a new desk chair. I scratch all of those off the list. Finally, I swoop in and basically hijack their good customers. I'll stop when everybody else in my industry is run into the ground, or they work for me. Unfortunately, there's more than enough room for competition, so I can't stamp them out completely, but damnit I'll never stop trying.

Offline eskimo2

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Re: Got business acumen? Step inside and help me out
« Reply #10 on: June 18, 2008, 08:34:53 AM »
I like what Samiam wrote.

My first thought was to hire a hit on Vlado.

Offline midnight Target

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Re: Got business acumen? Step inside and help me out
« Reply #11 on: June 18, 2008, 08:40:07 AM »
I say it is time to bury Vlado or buy him out. Play the prefered provider card and subcontract out to him. You stay in control and he stays in business. If he doesn't like this option... go to the mattresses!

Offline ZetaNine

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Re: Got business acumen? Step inside and help me out
« Reply #12 on: June 18, 2008, 09:01:37 AM »
... go to the mattresses!


HA!!!!!!!  A classic term to be sure.  love it!

« Last Edit: June 18, 2008, 09:09:16 AM by ZetaNine »

Offline ROX

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Re: Got business acumen? Step inside and help me out
« Reply #13 on: June 18, 2008, 09:11:28 AM »
Another EASY way is to have mom drop to her that she knows Vlado has been playing dirty and does not deserve 50%.

If he's dying on the vine it's because of a reason.




ROX

Offline JB88

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Re: Got business acumen? Step inside and help me out
« Reply #14 on: June 18, 2008, 09:53:39 AM »

If he's dying on the vine it's because of a reason.




ROX


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