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Overview Transcript Case Study Video
Lupe Fraga in his warehouse.
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Getting customers the right products at the right time is what drives profits at Tejas.
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Stick To Your Core

Why did Lupe succeed during a time when the number of office supply companies servicing the Houston market dropped from 500 to 50?

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Key Ideas of this episode
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1. Take The Plunge
2. Stick To Your Core
3. Mine And Share The Data
4. Up Sell
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5. Find The Right Mentor
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6. Get A Banker Before You Need One
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7. Do Business Your Customer's Way
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8. Hire Family
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9. Use A List Professional
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There are a number of reasons but certainly Lupe's decision to be a distributor, to operate only as a business to business organization, eschewing the business to consumer side that would require retail stores, was critical to his success. Lupe focused on a particular market segment and operated his business in such a way as to best serve that segment.

Topic for discussion: How do you decide what market segment is the best target for your company?

Answer: Lupe recognized that customer service was the key. He picked the segment he could best serve and was rewarded with 40% growth. His strategy, "We make your business day easier" is the right strategy for all of us. The RIGHT segment is the segment you can serve the best. Outstanding customer service will distinguish you from your competition, just as it has distinguished Tejas Office Products from theirs.

Topic for discussion: What should you do when you wander out of your niche?

Answer: When the print shop didn't work out for Tejas Office Products, Lupe got out of the print business. Sometimes it's difficult for a business owner to cancel a product or service line. It's like cutting off an arm or a leg of the business. It may be necessary to terminate long standing employees if there is no other opportunity for them in the business. These are tough calls, but it is the owner's responsibility to make the decisions that best serve the body as a whole, the business, not any particular segment of the business.

You think about it: What are you doing now that does not contribute to the bottom line? What could you do to increase your efficiency?

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