How do you run your business, as a vendor providing tile and stone work, or as a craftsman creating beauty? There is a HUGE difference in compensation and the methods of doing business with your customers.
A vendor is someone who exists just to sell stuff. Nothing else matters except delivering the goods (may include installation) and getting paid. You can expect (negotiate) the low price, sign a contract, and get what you ordered. You can also spend many hours discussing the details of the terms and conditions, etc.
What happens with a craftsman is far different in many aspects. One element of doing business with a craftsman is that the price issue (or low bid) loses its luster. People seek out craftsmen for their skills and talents to create a beautiful statement with their efforts on the customer’s behalf. Price absolutely becomes a secondary by-product of most of those discussions. Time also changes; you don’t rush art by deadlines of time but rather by finishing the look or feel desired.
As we watch our industry still losing businesses to the poor economy, it becomes even more apparent that craftsmen will survive while vendors have a large chance of being pushed from the scene. Just look back over the past two or three years and recall how many businesses have already left the scene. Those companies that ran large crews to do anything and everything quickly and cheaply are mostly gone today; they were the worst offenders in this downward spiral of moving toward the bottom price. Without profit you just cannot stay in business and the very success that drove them to the top of the vendor pile was what did them in.
I ask you to stop today, take time out from “doing” your business, and study your business to see where you are on this scale of vendor versus craftsman. If most of your work is still “low bid”-driven, then you are on the vendor side. If, however, you have chosen to position yourself and your company as a craftsman firm, then you will, I’m confident, be around a long time in this business.
Steve Rausch represents the Substrates and Specialty Products Division of USG Corporation out of Alpharetta, Ga. He’s also the author of the Rausch Ravings blog about business and non-business related topics. Contact him at [email protected] or visit the blog at http://rauschravings.blogspot.com/