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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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