Working for “the man”

I have heard many small business owners say that they started their business because they don’t want to work for “the man”. They want to be their own boss. They don’t want “the man” to make money off of their sweat and toil.

These comments are usually accompanied with claims, both explicit and implicit, that “the man” uses others to further himself. “The man” they claim, both explicitly and implicitly, is a dishonest charlatan who will do anything to make a buck.

As is common with those who cast such aspersions, “the man” remains unnamed and undefined. He is a faceless, nameless demon who sucks the life out of decent, hard working people. Who then, is “the man”?

If we accept the implications of those making these comments, “the man” is anyone who employees others and/ or makes a profit. A profit is a gain, an improvement in one’s position. If someone profits during an exchange with others, the thinking goes, it could only be at the expense of others.

The fact is, an economic transaction is a voluntary exchange. Each party believes he will profit—he believes he will gain something he values more highly than what he is giving up. Voluntary exchanges are mutually beneficial.

An honest businessman (and most businessmen are honest) offers value to his customers. He does not seek something for nothing. He seeks to create values desired by the purchasing public. And the greater the values he creates, the greater his profits.

This concept is completely lost on those who disparage “the man”. To them, a profit is a sign of dishonesty. A businessman is simply a slick talking conman. A business is simply organized crime. Those who put down “the man” are really putting down businessmen.

They do so because they believe that mutually profitable relationships are impossible. They do so because they cannot or will not create greater values. They do so because the successful businessman represents everything they are not.

The history of mankind is replete with examples of men and women who created tremendous value and profited in the process. Some look at these heroes as inspiration and as evidence of what is possible in life. Others look at them in envy and as evidence of what they will never be in life.

Imposing our values on customers

In working with small business owners, I am often amazed at how frequently they seek to impose their values upon their customers. Sometimes this occurs is small, subtle ways. And other times it occurs in a huge way.

One of the most common ways small business owners do this is by declaring that customer’s won’t pay higher prices. Many believe that customers only buy on the basis of price, and so they seek to do anything reasonable (and sometimes unreasonable) to keep their prices low.

Certainly, in some industries competing on price is simply the business model. Commodities are a prime example. But even when one is selling a commodity, one doesn’t have to compete solely on the basis of price. The success of brand names is one example.

When an owner refuses to offer his customer options he is imposing his values on the customer. The owner believes something to be true, and acts accordingly. He never bothers to find out if it is true of this particular customer. Rather than offer the customer options–and let the customer decide–the owner offers one option and the customer must take it or leave it.

Over the years I have had many customers buy from me when I would have bet the farm that they wouldn’t. Often, the reason they have bought from me is because I gave them options. I spent the time to learn what they want and why, and then offered a number of solutions to meet their needs.

I don’t like others making assumptions about what I want. They may or may not be correct, but it is my money and I will decide how to spend it. We should do the same with our customers.

Pricing and image

Nobody likes to pay more for a product or service than they need to. Each of us loves to find a good deal. But as a small business owner we must always remember that our pricing conveys a certain image about the products and services we are selling.

While consumers certainly like to think that they are getting a good deal, they also know that they get what they pay for. When you visit McDonald’s you do not expect the same hamburger that you will get at Fuddrucker’s. If you want more value, you understand that you must pay a higher price.

The same is true of your customers. If your prices were half of your competitors, consumers would be suspicious. They would wonder about the quality of your widgets. They would be concerned whether you would be in business to service their product. Your price would convey a specific image regarding the quality and stability of your business.

This is not to say that we should charge outrageous prices simply to convey quality. Our products and services must truly offer value. If we charge more, we must also offer more. And we can offer more in a variety of ways, from better quality to greater convenience, from superior service to a broader selection.

Certainly there are consumers who are more price conscious than others. And there are products and services–commodities for example–that are more price sensitive. But this doesn’t change the fact that cheap prices can convey an image of cheap quality.

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