focus

The power of maniacal customer focus

We had the pleasure of meeting with a 30-year flooring veteran who consistently delivers $5-10million of flooring contracts every year at industry leading margins.

You would expect his Rolodex to be chock full of an enormous range of customers, right!

Nope.

Just two.

Most people would be scared to have just two eggs in the proverbial basket.

We asked him how and why he has this laser like focus on just two customers.

His answer was profound—

“I got tired of losing and I got tired by the price protection shenanigans”.

He figured how could he take price out of the equation. 

In all the deals he was losing the customer was more interested in the margins he was making rather than the overall risk and value of getting a complex flooring project installed.

In the deals he was winning, he was very transparent about material pricing and educated his customers so they could discern why some bids were high and others very low.

He noted

“the difference in bid prices is never about the margins”.

He further refined his targeting to those customers who wanted a strategic advisory partner and ones where he could meet with the ultimate owner or end user.

These customer types wanted his perspective on budgets, risk, alternatives.  The discussion was never about price.  Just value.

Having centered on two customers he built deep and widespread relationships, almost being a virtual extension of their companies.

No-one beats him

That is the power of focus.

PS your litmus test: if you don’t have 30 people in your Rolodex at each company you are not intimate enough with them

PPS Don't forget to check out our weekly audio podcast here, Flooring by the Numbers Podcast or wherever you download your podcast feed