More and more prevalent in business case evaluations today is the concept of the total cost of ownership whereby organizations evaluate the collective expense associated with a given initiative or asset over its entire life. Comparing initiatives on this basis alone however, fails to consider the offsetting benefits the organization would realize over the investment’s lifetime as calculated during return on investment (ROI) estimations. In order to effectively compare competing proposals, organization leaders should evaluate the total value of ownership of each investment alternative.
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So far, Apple and Steve Jobs have changed the way computers run, revolutionized the mobile phone, and revolutionized the way music is distributed to a point that all retailers, distributors, manufacturers, producers, music groups, and recording artists are totally dependent on Apple for a sizeable share of their revenue.
The iPod, and all versions of their music players, phones, laptops, and anything that plays music uses iTunes as a playing medium AND a purchasing medium. WOW.
Oh, there are still DVDs and other forms of distribution, but Apple rules. And Apple makes the rules. They have completely changed the game and the process. The world, accepted it, bought it by the billions, and LOVES it.
Their iPod competition has utterly failed. Got Zune? Not only was it a billion dollar failure, it was a joke. The iPhone started another revolution. And that’s a story for another day.
Today is iPad day. Or should I say ‘book replacement’ day. The iPad is so revolutionary that no one even saw it coming. They didn’t know what to do with it – or could have predicted the changes it would inspire.
Capitalizing on the growing demand for e-books, the exploding app market, e-reader popularity, and the global appetite for cool products,Apple went to market having no idea what an explosion of creativity they were unleashing.
Remember this ditty? No more homework, no more books, no more teacher’s dirty looks!
Well, some of it is about to come true. The homework will still be there, the teachers will still be there, their dirty looks will (unfortunately) still be there, but the books are fading fast.
Remember your first day of school every year? ‘Issuing books’ was a major part of the day. Signing for them, writing your name and grade in them, putting them in your book bag, and then dragging them back and forth to class, to home, and back to school all year. (Not to mention losing them and dropping them in a puddle of water.)
Well, those days aren’t completely over yet, but the iPad is beginning to idle printing presses globally. And soon, like the Yellow Pages, newspapers, and magazines, the majority of printed media will only be available online as a download or from some ASP.
REALITY: Everyone on the planet is looking for ways to improve education. The iPad will lead the revolution. It will provide 21st century learning and make it FUN (and might even eliminate some of the teacher’s dirty looks).
What kid wants eight textbooks when they could have an iPad? NOBODY ON THE PLANET. Less money, no hassle, completely searchable, underline-able, note-take-able, and FUN.
Our three-year old daughter Gabrielle dominates one of our iPads. She reads, plays, watches, listens, chooses, and swipes to her heart’s content. And any time I tell her, “That’s not on this iPad,” she instantly says, “Download it, Papa.”
So far, this is a nice story. Many of you already know it, and are reading this on some Apple device. That’s great for Apple. They deserve it.
BUT WHAT ABOUT YOU? What major change or shift is about to come into your world? Your business? Your life? And are you ready for it?
What’s about to change about the way you sell? Serve? Communicate? Respond? Take products to market? Develop new products? Do business? Get customers? Keep customers? Manufacture? Deliver? Account for? Get paid for? Make profit?
Or are you too busy focused on yesterday, today, competition, pricing, bidding, eking out a profit?
THINK ABOUT THIS: What’s going to happen to car salespeople when all the auto manufacturers put the ‘buy now’ button on their websites? They will go the same way that mediocre stockbrokers went when online trading was introduced. Gone.
Amazon killed Borders. And Amazon is killing a lot of other businesses – businesses which were NOT READY for the changes that are swooping down on the sales, promotion, social media, advertising, and business world at G-4 speed.
The businesses that have lost it were and are the businesses that were and are not ready to compete. And most of them, like newspapers and other print publications, took too long to recognize and change their strategies. Google ads and ad words swooped in and cleaned their clock, their customers, and their cash reserves.
Not many are ready for the evolution.
I talked about the Apple story because they saw what was next and led the way. They innovated, took risks, made it easy to do business, and created products that consumers wanted.
And on a smaller scale, in your market, to your customers, you must do the same.
Are you looking at EVERY element of how you’re doing business? Can you see what’s new and what’s next? Are you willing to take the step forward? Or will you try to hang on to what has worked for the past twenty years, and not see let alone seize the opportunity.
Got iPad?
Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.
About the Author
Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].
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“Do I go to the left or do I go to the right?” A common question asked when one reaches an intersection. Unless one is familiar with the area or has a map, the question may be answered with a nagging ‘gut feel’ rather than with certainty. Sometimes proceeding on the chosen course results in a successful outcome. At other times, it requires backtracking and results in a great deal of frustration, lost time, and unnecessarily spent resources.
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When I say the words, ‘set the standard,’ what comes to your mind?
Is it personal standards of yours?
Is it standards that your business sets?
Is it standards you have in your mind about other people?
Is it standards you have in your mind about other products?
When you go to a restaurant and order your favorite steak, you’ll always recall the one restaurant (especially if it’s the one you’re in) that had the best steak (or whatever your favorite food was). That restaurant set the standard. All other steaks you will ever eat will be compared to the standard bearer, until one day you may get a better steak, and then that restaurant will become the new standard bearer.
You know and recognize dozens of standard setters in your life – especially if these products or people are amazing and have your undying loyalty and especially if you proactively refer them. It could be as simple as the best ice cream or the best apple pie. It could be the best dentist or the best chiropractor. It could be the best financial planner.
And it could also be your own brand loyalty. The best car. The best clothing. The best computer. The best phone. Things that you would never consider doing without.
Whatever those products are, whoever those people are, they set the standard. Your standard.
There are third party standards…
Wilt Chamberlain scored 100 points in a single basketball game. He didn’t just set a record. He set the standard.
Abe Lincoln delivered the Gettysburg Address. It wasn’t just a speech. He set the standard.
At the steps of the Lincoln Memorial, Martin Luther King, Jr., gave a speech to 500,000 people. It wasn’t just a speech. He set the standard.
The Beatles. Elvis Presley. They set the standard and paved the way for others.
When Wilt Chamberlain set the standard for scoring, it was on March 2, 1962. That standard has endured more than 50 years. Kobe Bryant’s 81 points were good, but not as good as Wilt’s 100 points – the standard.
Accomplishments are always compared to standard. Quality is always compared to standard. Products are always compared to standard. You know what the best products in your industry are. If you work for that company, you love it and vice versa.
MAJOR CLUE: Now that you get the idea of what I’m talking about, let’s talk about your business and your career.
What standards are you setting and who are the people involved in setting those standard – not just in your company, but also in the mind of your customer and in the reputation of your business in your community and in your industry?
If you’re not setting the standard, you’re fighting price. Reputation trumps price.
Your reputation stems from what others think about you and say about you. In today’s world, it’s what others post online about you. Reputation comes from setting standards in service, quality of product, consistency, and availability.
You may think of it as ‘best.’ But there’s a big difference between bragging about the fact you are the ‘best’ and ‘we set the standard.’
There are many products in which you can argue ‘who is best.’ There’s often an obvious winner. German automobile engineering has set the standard. Many computer products are best. Microsoft set the old standard and Apple set the new standard. There are many social media sites that can be argued as better than others, but Facebook set the standard.
As a salesperson, I’d like you to take a moment and evaluate (or should I say self-evaluate) where you are on the standard-setting scale. Are you just a rep? Are you one of the top 25% of reps? Or have you achieved the status of trusted advisor, who is setting standards not just in sales numbers, but also in customer loyalty, profitability, and relationships.
What about your company? What standards are they setting? What high ethical ground have they achieved?
If you look at the example of Bank of America, you see a century-old company who had set many standards and achieved global greatness. All that was destroyed by indiscriminate greed and a total lack of understanding of social media in general. Standard bearers can fall quickly. Just ask Tiger Woods.
I’ll admit this is pretty high-level thinking and for many of you reading this. You may believe that setting the standard is out of your personal control – especially standards that your company sets. But in the new world of transparency, thanks to the internet, mothered by Google and social media, you now have the opportunity to build your personal brand, create your personal reputation, and set your own personal standards – standards that will remain yours even if you change companies or careers.
I challenge you that the key word in standard setting is endure. Set standards that will last. Many have come and gone quickly. Don’t be one of them.
Reprinted with permission from Jeffrey H. Gitomer and Buy Gitomer.
About the Author
Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at [email protected].
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More and more prevalent in business case evaluations today is the concept of the total cost of ownership whereby organizations evaluate the collective expense associated with a given initiative or asset over its entire life. Comparing initiatives on this basis alone however, fails to consider the offsetting benefits the organization would realize over the investment’s lifetime as calculated during return on investment (ROI) estimations. In order to effectively compare competing proposals, organization leaders should evaluate the total value of ownership of each investment alternative.
Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction is Worthless Customer Loyalty is Priceless, The Little Red Book of Selling, The Little Red Book of Sales Answers, The Little Black Book of Connections, The Little Gold Book of YES! Attitude, The Little Green Book of Getting Your Way, The Little Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of Leadership, and Social BOOM! His website, 
“There are many things that we would throw away, if we were not afraid that others might pick them up.”
“Do I go to the left or do I go to the right?” A common question asked when one reaches an intersection. Unless one is familiar with the area or has a map, the question may be answered with a nagging ‘gut feel’ rather than with certainty. Sometimes proceeding on the chosen course results in a successful outcome. At other times, it requires backtracking and results in a great deal of frustration, lost time, and unnecessarily spent resources.
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