Posts Tagged ‘revenue’

Marriott and RitzCarlton: When Ordinary Tarnishes Luxury

Wednesday, September 3rd, 2014

During my most recent stay at the RitzCarlton in Naples, Florida, it had become obvious what happens when an average brand—Marriott, in this case— takes over and dominates a luxury brand like RitzCarlton. This time, there were no slippers in my suite—offered only by request. Shoes left out for the overnight shoe-polishing service weren’t returned in an elegant, cloth bag, but in a tacky,.plastic one. And even the piano player, who always performed afternoons in the lobby, had disappeared. The piano remained, abandoned. The building also was in need of renovation in some places. Some guests pointed out that they now had to ask that the shampoo, shower gel etc. be refilled or replaced; in the past, these amenities were replenished daily, regardless of how little had been used.

Ordinary does not comport with luxury. Too often, average brands attempt to seek their salvation in lowering prices—which also doesn’t lead to growth in the mainstream, but that’s a story for another time. But luxury is not “common sense.” Luxury lives on excess, on rational extravagance. Luxury yields high revenues, but it also carries costs that would bring tears to the eyes of a comptroller. And exorbitant prices are paid for all of this. When I pay high prices and receive average service, I feel made to look foolish, and I turn elsewhere.

Still, RitzCarlton has a brand bonus. We often give these strong brands, with which we have had good experiences, the benefit of the doubt. Marriott would do well not to let RitzCarlton slide into mediocrity or, more positively stated, to give the brand the latitude it needs in order to develop. Marriott management can play the little game of lowering costs in their own house.

© 2014, Prof. Dr. Guido Quelle, Mandat Consulting Group, Dortmund, London, New York. All rights reserved.

Mandat Growth Tip of the Day: Eyes Open in the Sales Department

Tuesday, February 11th, 2014

You’re sitting in a restaurant, perhaps in an outdoor setting. You have just placed your order and want to add something to it: another beverage, a pinch of salt, a small salad – whatever. Without raising your voice, you try to attract the attention of your server. The moment seems favorable; she is nearby. But, alas. She turns away and vanishes, again. You try once more, raising your hand to signal her. Under no circumstances do you want to call out: “Hello!” or “Waiter!!” or “Miss!!” (watch out, danger, politically incorrect). You get nowhere.

At some point, along comes your server: “Everything OK here?” You no longer need the salt, since you’ve already eaten the fries. No need for a salad, since you’ve already eaten the main course. And another beverage? – Well, no. “Just the check, please.” “Right away,” says the server and returns with the bill. Added revenue forfeited.

Today take a look at how alert and attentive your sales department is. In sales, keep your eyes (and ears) open! How often do your customers send possible buying signals that your sales force doesn’t even notice? How often do customers telephone and the call is returned too late or not at all?

Eyes open? So much revenue is there for the picking.

© 2014, Prof. Dr. Guido Quelle, Mandat Consulting Group, Dortmund, London, New York. All rights reserved.

Mandat Growth Tip of the Day: Think Revenues, not Costs

Thursday, December 26th, 2013

People who think about opportunities are more successful than those think more about risks. Now of course you could argue that you want to consider the risks in any proposal. Correct. But not too much, because if you lose yourself in a forest of risks, you also lose sight of possibilities.
Businesses behave in somewhat the same way. How could it be otherwise? After all, businesses are made up of people: Some businesses are more inclined to think in terms of costs rather than revenues. That’s too bad, because no business has grown in any meaningful way by focusing too much on costs. Now please, don’t go putting words in my mouth. I would certainly not advocate losing sight of costs. But growth comes from profitable transactions with enthusiastic customers, not from perfecting a cost structure.
Your focus today: Concentrate more on revenues, less on costs. Where can you generate additional transactions?

© 2013, Prof. Dr. Guido Quelle, Mandat Consulting Group, Dortmund, London, New York. All rights reserved.