Opening Day 2008
Pre-season is over and we are now live on the world-wide web. Our customers, suppliers, and anyone connected to The Nailco Group (TNG) world can now read and post my daily blog.
I have an excellent story to share and it’s one of those human nature stories that makes one wonder. Your feedback is certainly appreciated.
The Nailco Group has been servicing one of our best customers for many years. We moved them from Wella to L’Oreal some 7 years ago (at a substantial 40% discount) and as one of our best customers, they received discounts on other products.
During this period, we had both owners to many events, both company and personal. Their salon enjoyed being involved with Tiffany, Evening of the Stars, Fringe and so much more. We even went to a play that one of the owners was an actress to show our support.
When we lost L’Oreal January 2, 2008, we naturally asked for their support which they initially gave to us. Then mysteriously they changed their minds and stuck with L’Oreal but continued to buy other products from us.
Recently, they stopped buying their nail products from us because our competitor gave them a bigger discount (5%). When I asked why they switched for 5%, the response was "I’m only interested in the lowest price and they gave me the lowest price."
I asked him why the same competitor didn’t give him a discount for the past 10 years and if they were going to give him a check for the lost discounts. He wasn’t so interested in that comment but he did add that if we wanted to beat the price, they would move the business back to us.
The Nailco Group isn’t the largest national distributor in the U.S. because we offer the lowest price. We aren’t the only company in the industry that is ISO9001 certified because we offer the lowest price. And we certainly aren’t in Gallup’s 99th percentile of customer engagement because we offer the lowest price.
I am sure you have experienced a similar situation either personally or in business. My question is at what point doesn’t loyalty and personal relationships matter and only the "lowest price" or some other transactional item count?
Welcome to my blog!
June 19th, 2008 at 12:01 pm
I use to shop at Walmart because of the cheap price but I hated the long lines, the way the stores looked (dirty/cheap) and the poor customer service I always seem to get. I now do most of my shopping at Target I love that store!!!!! I paid more for gas going there because I had to go to Canton or Ypsilanti/Ann Arbor border and I paid a little more for the stuff I need but it is worth it. Now I have a Target down the road for me so it is easier going there now then Walmart and I try to be very loyal to them. Great customer service and a great looking store is priceless. Let them go Larry they will be back and if not they loose. You have to think that the compettitors will loose also if they keep cutting their prices all of the time.
June 19th, 2008 at 12:13 pm
I’m with Tina on this one. If they want to go somewhere because the price is pennies cheaper then let them go. Our company was successful before them and will continue to be after them. I used to shop at one place because the prices were a little bit cheaper, but at the same time I would cringe at the cleanliness and the poor customer service. I would rather be treated with a smile and a helping hand pay a bit more to shop where I know I am being treated as a guest and not just another customer.
June 19th, 2008 at 12:18 pm
Being on a tight budget, I do admit that I look for the best price. I mean who doesn’t want to make their buck stretch as far as it can? But when you are getting into how you are treated, that is a different story. I too use to shop at Walmart but, no longer. Target has also won my business with having things in stock, a clean envoirnment and with their friendly customer service.
I feel that if I am going to spend my hard earned money, it is going to be at a place where there are friendly faces and great service. I agree with Tina, let them go…they will be sorry in the end to give up a such a great friendship, for a 5% discount.
June 19th, 2008 at 12:41 pm
This surprises me……to a point.
Being a hairdresser in this industry there is one thing a clients relationship with their hairdresser/Stylist is based on and that is LOYALTY! If a client who gets their hair cut or colored went to salons based on the lowest price, Hairdressers/Stylists would never have return clients or any to begin with for that matter. Especially John Agosta b/c I know he’s not giving out the “cheaper price”. And the client certainly wouldn’t be getting great service or great or even good results.
Sorry Larry, Some people just learn the hard way & unfortunately the business will be what suffers. Luckily this is TNG and we will always make up for lost business with our great customer service and the LOYALTY to our customers!!
June 19th, 2008 at 1:53 pm
I had a similar experience last week with a customer asking for a 2% increase in discount to match someone who had called her. I looked on her yearly sales-$6000 a year-and explained to her that I was not able to do that at this time. I went on to explain to her that based on her sales this past season she would be saving $120 a year. I encouraged her to dig a little deeper with this competitor and check out their policies and freight arrangements. In the end she stayed with us even at a higher price. She had decided the 2% was not worth losing the customer service she receives with us. She stated our fast and accurate delivery and the fact that her phone calls are always returned the same day was worth the $120 a year. Some people “get it” and some don’t. Our bar on customer service is set so high I am doubtful any competitor will be able to keep one of our previous customers happy very long. Just smile and think of the sales rep that will be hearing “Well-at NailCo they used to do it this way!”
June 19th, 2008 at 3:19 pm
Loyalty and personal relationships are two of the things I base my shopping habits on. There’s always going to be someone who undercuts their price, but they also cut back on their service. That really says something about John. It says he has no loyalty and can be bought. He has a price. That’s sad. We’ll be better off without them. Don’t lower your standards to his Lar.
June 19th, 2008 at 3:32 pm
How about offering to give him the same discount as the compeditor if he agrees to by a years supply. LT could store the items and pull from a consignment warehouse assigned to they’re product.
We would have his money gaining interest for a year and that may off set the additional discount.
June 19th, 2008 at 3:37 pm
Add a spell check option to blog.
June 19th, 2008 at 4:10 pm
I can only say that this is a “dog eat dog” world and, sometimes people choose to be the dog. I am sure that his business everyday was appreciated, can he say that with 5% confidence about the competitor. Also, I hope he is aware that as a nationwide company business to business is a huge deal. To lose the trust and loyalty of the top company does not reflect well on the him. It looks very bad (sneaky. Larry, I haven’t worked here long, but I can only imagine the loyalty and royalty treatment that you bestowed on Gina Agosta as clients. I can only say that it it truely there lose to have made the mistake of taking 5% over true 100% customer success.
June 19th, 2008 at 4:11 pm
We’re number one! And so are our customers! Thanks for sticking by us!! We appreciate all of you
You made us who we are today!
June 19th, 2008 at 4:12 pm
Is this the same John Agosta who said “Pride means I never compromise quality” ??? He just compromised it.
June 19th, 2008 at 4:25 pm
Good call Gary
June 19th, 2008 at 5:26 pm
We tried upping the discount to counter the competitor in this case.
For a penny, they would switch back and we would lose the business again. You can’t win when it comes to product discounting, ask KMart.
June 19th, 2008 at 9:13 pm
Unfortunatley we have learned in this transition to Kemon that you have to come to a point where “you” shouldn’t compromise yourself to make a business deal, it only becomes a visious cycle especially with those clients that have no sense of loyalty. I would rather go to bed at night knowing I made a small sale with a loyal client then made a huge sale with a client that was not.
June 19th, 2008 at 10:01 pm
loyal client’s are what we need to focus on. The client’s that are out for the sale or the lowest price will hop from place to place and will they will never be loyal to anyone. Our loyal client’s will help us go the distance!
June 20th, 2008 at 8:09 am
Michigan is a big pond with a lot of fish, large and small. Sometimes the big ones get away and sometimes we have to let them go.
But Hey- LOOK AT ALL THE FISH OUT THERE!
June 20th, 2008 at 8:10 am
No one wins a price war.
June 20th, 2008 at 1:47 pm
What a sad day for the stylists at Gina Agosta…You know they are going to miss all the extras we provided. When they ask what happened to all the classes, I hope they are told they went with price. They will be back, Maly’s and 575 cannot hold a candle to what we are about. CONFIDENCE, INTEGRITY PRIDE AND PASSION.
Ps I hope you gave John his picture….. Actually we could have a bonfire out back:)
June 21st, 2008 at 10:41 pm
I’m sorry I must have made a mistake, I thought I logged onto a professional website for a professional distributor! After reading this I question if this is so…….
This to me sounds like a personal issue…NOT a business issue, and should not be thrown out on the web or in a public forum, discrediting the name of a very well known & respected salon and salon owner…..again based on relationships or loyalty ??? It’s very “5th grade”…IMO…..Just my 2 cents for what it’s worth.
June 24th, 2008 at 2:51 pm
i must agree wiyh n/a, this sounds personal. further the ceo of nailco should have learned from observing the american automobile industry NEVER lose market share,and if you do don’t blame the consumer.
June 25th, 2008 at 2:15 pm
This is unfortunate! I am shocked that this blog is available for everyone to read. If TISE is so confident in being #1 and has all of this “integrity”, it sure isn’t showing through this public blog.
It is one thing for the reps and employees to put in their 2 cents, but for Larry G. to as well! HA. It shows the type of person he really is.
My 2 cents—
Make this a private “blog” and available only to TISE employees and the almighty LG. That way they can all whine and complain to eachother without losing any “integrity”.
Best of luck with getting all of the “fish” to bite on the Kemon hook.
June 26th, 2008 at 4:44 pm
Dear, Mr or Mrs Anonymous-
Question? Did you get off the Bus?
Is that why you are so Bitter.
PS.
Kemon is the Best Color on the Market:)
June 27th, 2008 at 7:04 pm
I was always told be careful of who you get advise from!
Your first clue should be anyone who is self proclaimed as having “words of wisdom”.
Freedom of speech is beautiful, but using the power of your positon to damage others is nothing but shameful! The more knowledge you obtain in life the higher your responsibility level becomes.
A true wise man doesn’t speak of his wisdom, he knows better!
June 27th, 2008 at 7:18 pm
Did you employess get extra credit or was it manditory to BLOG.
Mindi- did you look up all the words yourself or did someone have to help you with the spelling in your blog?
Randy- LG would be mad if he knew you were fishing all day….
Mike- The world of business is all about price war contracts. How do you think you are able to sell what you sell….how profound!
Larry-Why is everything is your stores 1/2 off if you don’t believe in price wars? If your clients were LOYAL they would buy store goods at regular price, wouldn’t they?
Nicole- Clorox bleach is a one step process…what do you know about haircolor?
Egor-Keep surfing dude…I am sure you can catch a more professional wave easily! Hang Ten…..
June 30th, 2008 at 10:17 am
How sad…..
At 7:18 on a friday night your writting in your X-employers Blog.
June 30th, 2008 at 9:38 pm
I find it interesting that people are making comments about professionalism. Last time I checked, a blog was something used to “reflect the personality of the author” internal Blogs will only solicit positive remarks. Having a public blog will really open you up for fresh commentary. Face it, having it internal is going to get old pretty quick. No one will really express themselves. Way to go Larry for taking this public.
Also, why is it that people feel so free with their anonymity? I love how people can spout off while they hide under the blanket of the big A. At least some people have the courage to put themselves out there. All you anonymous writers who want to use someone else’s Blog to say things you would NEVER have the guts to say need to take a look at what you are saying.
Anonymous, you write about LG’s professionalism, well as far as I see it he mentions no names in his post.
How Obvious, you make a comment about Mindi and her spelling, yet you can’t even spell employees correctly. Go figure, I guess that was a Freudian slip.
July 1st, 2008 at 9:58 am
Well said Chocomilko!
Hope everyone has a great day!
July 1st, 2008 at 12:13 pm
Im with Chocomilko on that one. Very well put
Have a good one!!
July 1st, 2008 at 5:39 pm
wow! Is all I have to say. VERY professional. You show great loyalty and integrity. I think I may take my business to Maly’s too because I’m sure they won’t treat any salon like this, and I don’t want to work with a company where there CEO is as childish as you are.
July 2nd, 2008 at 10:30 am
It seems alot of people are missing the point by taking the blog “personally.”
The CEO is just asking if loyalty still has anything to do with business in
this day and age.
Or is it all about price now? Is that how people in business think now?
He told a story (it really did not sound like he was slamming anyone) and wanted input.
I guess he received input.
LIGHTEN UP people………………………….
July 2nd, 2008 at 2:53 pm
Seriously, I have to think that the people writing negative comments are either A) employees from the salon or B) disgruntled workers who have just been dreaming of a moment to talk BS. LG didn’t say anything at all unprofessional. He had relationships with these people. He works hard to give the customers more than just a discount. He is striving to give them an experience. So yeah, if he feels upset over what has happened, than by all means he has every right to say something about it. I bet the people who are leaving all these negative comments are the same person LOL. What do you want to bet. Get a life guys, LG isn’t the owner of a company voted most wanted place to work for because he doesn’t know how to take care of people. Get a clue, where are you at?
July 27th, 2008 at 11:45 am
Just want to pass along a few wise words…..
“There is nothing that strengthens the ego more than being right. Being right is identification with a mental position- a perspective, a judgment, a story. For you to be right, of course, you need someone else to be wrong, and so the ego loves to make wrong in order to be right. In other words: you need to make others wrong in order to get a stronger sense of who you are. Not only a person but a situation can be made wrong by complaining and reactivity, which always implies that “this should not be happening.” Being right places you in a position of imagined moral superiority in relation to the person or situation that is being judged and found wanting. It is that sense of superiority the ego craves and through which it enhances itself.”…
“can you differentiate between fact and opinion. Only through awareness are you able to see: There is the situation and here is the anger I feel about it, and then realize there are other ways of approaching the situation, other ways of seeing it and dealing with it. Only through awareness can you see the totality of the situation or person instead of adopting one limited perspective.”
So would you rater be right or at peace?
July 29th, 2008 at 1:43 pm
What?
July 30th, 2008 at 1:10 pm
Sounds like the quote about being right came from the book, “A New Earth”
August 1st, 2008 at 9:38 am
My reply is two fold. 1. to answer your question Larry, loyalty should ALWAYS play a factor in any relationship, but the reality, unfortunately is, it doesn’t. You are a loyal man who runs a loyal company and because of the reality (that people just aren’t as loyal) there are server disappointments, this situation you speak of in your blog is one. It is unfortunate, but I hope you never compromise your style of business and the “integrity” you have and the loyalty you display. 2. I find it pathetic to see former TNG employees on here multiple times (Im referring to you MR, but types “Anonymous” when replying and attacking others). Pathetic that you were NOT the TNG way and were terminated, and now you are on a final written warning at your new place of employement for the same reasons you were terminated at TNG. I believe your time, MR, would be better spent improving herself, focusing on retaining your position at her new distributorship and not targeting Larry, and his employees. Come on MR…grow up and focus on your issues and quit spending so much time here attacking others and being bitter…..
November 12th, 2008 at 6:32 pm
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