Issue link: https://www.e-digitaleditions.com/i/92325
lection, invoice auditing,equip- ment repair dollars tracked, fil- ing warranty claims, catching billing errors on the back end when the invoice comes in, and then just the possibility of sell- ing equipment, since there are no guarantees. Which is why this isn't an attractive under- taking for most equipment dealers. " Schmitt, however, is glad he and his partners dug in their heels. "Frankly in the beginning,probably over the first three years, " he says,"we took some big earnings hits, but you remem- ber Peter Sheahan's comments at the last FEDA convention?" Sheahan, the author of the interna- tional bestsellers Fl!p, challenged con- vention-goers to invest in experimental models that would drive sustainability. He also warned about the paralyzing effects of risk aversion, or the point at which entrepreneurs stop taking the risks that led to their initial success. "I didn't knowit at the time,butwhat he described is exactly what we did," says Schmitt. "We carved out part of our earnings, took some chances and made a commitment to invest in our future. And early on, it was just a lot of profit reinvested into the development. Now we're in a good placewhere everything is scalable. Maybe I'm just a stubborn German who doesn't know any better, but I honestly believe that this has the potential to be the most valuable part ofmywhole business over the next five to 10 years. "u Can You Increase Your Competitive Advantage by Relieving Your Customers' Pain? By Jim Pancero jim@pancero.com where you can increase your competitive differential (and profitability): the products/equipment you offer, the support you can substantiate, and the information you provide your buyers. Let's take them one by one. Out of the three, focusing on the products or equip- ment you sell is less likely to yield the competitive advantage you desire simply because buyers no longer recognize quality and functionality differences in what they buy. Instead, they tend to assume that multiple vendors from the same industry have products with equivalent features. Secondly, even when you have better quality and durability, many will not give you enough time or attention to explain how and why you have a higher quality product. And most actual product innovations remain competitively unique for as little as six months. Your first step toward improving your competitive advantage and profitability begins like Rapid's competitive markets will most likely only occur when you and your company take the risk to stretch your industry's traditional boundaries. What can you and your team do to redefine, refocus or reinvent some- thing that will set you apart from your competitors? The more of a differential in value you can provide, the more of a differential in price you can charge. There are really only three categories or areas 1 8 FEDA News & Views Increasing your competitive edge in today's hyper- increase your chances of uncovering, qualifying and redefining your customer's current areas of pain. How can I help lower your risk? How can I help make your life or work easier? How can I help lower your total costs or increase your profitability? How can I help increase your competitive advantage? Put another way, focusing on these four areas below will point you in the direction of how and why all buying decisions are made: Pain is only a symptom. Joe's breakthrough came when he was able to identify the issues or actions that were the greatest cause of their pain. There are four questions you can ask that will Lower My Risk: This is the strongest and most influen- tial driver of customer behavior. How much risk does a continued on page 68 President Joe Schmitt's did—by researching and really understanding your customer's pain areas. This is the first roadblock for most. The more industry experience you have, the more likely you are to assume you already know exactly what your buyers need. But those assumptions only reinforce existing traditional boundaries and prevent you from seeing new ways to increase your value and uniqueness. What can you do to approach your customers with "fresh eyes" and ask the questions they haven't even thought to ask them- selves? No matter how great it is, pain is never a problem.