My friend, Sridhar Ramanathan of Pacifica Group, always tells a story well, and in a recent blog he recounts a conversation he had on a flight home from San Diego. His seatmate was Raymond Mendoza, owner of Short Circuit Car Audio, a small business that repairs audio systems for auto dealerships in Northern California. Sridhar attributes Raymond Mendoza’s business success to several notable factors:
Deliver unique value – Raymond’s repair turnaround time is superior to the alternatives by a substantial margin
Focus on relationships – Raymond chose to focus on deep, trusting relationships with a small number of high volume customers — about 1200 auto dealerships vs tens of thousands of consumer repairs.
Price to value – “Raymond avoids the common mistake of cost-plus pricing by basing prices on a deep understanding of the dealerships´ alternative options and the consumers´ needs.”
As Sridhar says, “We could all learn from that approach.”