Worthwhile
Blog Podcasts The Dialogue Magazine About Us
BLOG SEARCH
ONLINE
MAGAZINE
Subscribe
GENERAL
FAQ
WORTHWHILE FOUNDERS

Sign up for Worthwhile's free weekly e-zine.


 
Home > Blog > 5 Business/Life Lessons from my Furnace
Out of Our Minds
Wednesday, June 09, 2004 3:22 PM
5 Business/Life Lessons from my Furnace
Anita Sharpe on Business

My furnace died this week, which was no great surprise considering it was 44 years old. In the process of choosing a company to replace it -- I narrowed my search to two established, well-respected firms -- I found there are great business/life lessons even in the most mundane of situations.

1. The new world belongs to the quick and the guileless. The winning bidder for my business was at my house within four hours of my first call for an estimate. The losing bidder took two days. When the winning bidder calculated the replacement cost on his laptop, he had no problem with my observing and noting everything from wholesale unit cost to cost of labor to ultimate profit margins (55% gross, 10% net.) The losing bidder just scrawled a number -- a very big one -- on a contract form and said it was his best and final price.

2. It's stupid to assume your customer is stupid. This seems blindingly obvious, but clearly not everyone


understands that customers today do research. We know the difference between a low-end and a high-end unit and how much every piece of the process -- even labor -- should cost. The losing bidder must think his prospects (or perhaps just women?) fell off a turnip truck.\n\n3. Going for short-term profit is a losing game. Much of corporate America still operates this way, but my experience serves as a microcosm of the idiocy of this thinking. Apparently, the losing bidder's new owner is pushing its staff to bring in as much revenue and profit as quickly as possible, hence the huge markups on its products and labor. But who these days will fall for that? Stupid people, I guess.\n\n4. Obsolescence is OK. The truth is my furnace could have been fixed. It was so well built, it might have gone another 44 years. Yet its energy efficiency was analogous to a '55 Cadillac (or a modern-day Hummer.) Replacing it is good for my energy bills and better for the environment. My hunch is that by the time my new furnace shuffles off its mortal coil, there will be a much smarter way to heat and cool our homes.\n\n5. Life is mostly a matter of perspective. The repairman who initially looked at my furnace said it would cost about $5,000 to replace; it was not a happy day. When the winning bidder came in with a price about half that, it felt like I'd received a sudden windfall. I was giddy for hours.


2 comments

Victor Lombardi - 6/11/2004 11:04:27 PM
Last Winter I was visiting my sister when her furnace failed. With visitors and three children in bed in the Pennsylvania cold, it was a rather urgent issue.

After trying everything the manual suggested, we called the repair company whose sticker was on the side of the furnace. They told us they 'only provide service to existing customers,' meaning the previous owners of the house. I'm not sure how it's possible they never sought new customers, but it was certainly a time when supply and demand should have taken a back seat to compassion.
J Tremaine - 6/11/2004 2:51:12 PM
LOVED this article -- it is all so true!

Name:  
Email:  
URL:
Comments:
 

Enter this
code below:
 What is this?
Code:  
Home   |   Blog   |   Blog Archive   |   Podcasts   |   The Dialogue   |   Subscribe   |   Advertise   |   Customer Service
About Us   |   Contact Us   |   Resources / Promotions   |   FAQ
Copyright © 2006 dash30, Inc. All rights reserved. Privacy Policy. 28