Episode 16

Elevate your marketing strategy by understanding the profound impact of building strong relationships. Paul and Chad talk how cultivating genuine connections fosters sustainable growth and success. Learn how prioritizing authentic relationships with customers, partners, and stakeholders can drive higher margins and propel your business to new heights. Embrace the power of connection and witness the transformative potential it holds for your brand’s longevity and prosperity. Unlock the key to sustainable growth and elevate your marketing efforts by nurturing meaningful relationships built on trust, loyalty, and mutual understanding.

Transcript

00;00;00;00 – 00;00;04;04
Speaker 1
Paul? How we doing, man?

00;00;04;05 – 00;00;06;19
Speaker 2
Oh, fantastic. Jed Richards, how you doing?

00;00;06;21 – 00;00;08;11
Speaker 1
Doing good. Glad to be back.

00;00;08;13 – 00;00;09;20
Speaker 2
Oh, it’s good to be back with you.

00;00;09;21 – 00;00;20;22
Speaker 1
Tell me your thoughts on the power of relationships in business and how that relates to, a business’s margins.

00;00;20;24 – 00;00;49;17
Speaker 2
So your margins are squarely in your relationships and how strong your relationships are. So, you know, we’ve talked before about our customers, listeners, customers live in two spaces. They live in a relational space, in a transactional space. And so before they become transactional, that’s when we have the opportunity. Very few people take this opportunity, but we have an opportunity to build a relationship with our customers.

00;00;49;19 – 00;01;14;03
Speaker 2
And by, you know, when we talk about building relationships as being visible and communicating with them in a way that they can actually receive, what we’re talking about in that space, if we do that, well, when they go to make a purchase and they have a relationship with us, price is going to be a factor that is further down the list.

00;01;14;06 – 00;01;35;08
Speaker 2
If they if they don’t have relationship with us, like say they have a need, what are they going to do? They’re going to go they don’t have somebody, they don’t have a go to company. They’re going to go to Google. You’re going to search put in their search query and they’re going to get a list of businesses trying to figure out how they’re going to solve this problem that they have.

00;01;35;11 – 00;01;51;20
Speaker 2
Yeah. And so on. That list, if they all are equal in relationship and, you know, being known to that person, they’re very likely going to just go, that price is going to be the most important thing because there’s nothing else to differentiate that list.

00;01;51;26 – 00;01;52;07
Speaker 1
Right.

00;01;52;10 – 00;02;18;11
Speaker 2
And so when we, talk about increasing our profit margins, our relationships with the customer are one of the first places to start. Yes. And most people don’t do that. So here’s an example that I like to use is if, you need to move something like the other day, I moved a dresser upstairs, which is.

00;02;18;16 – 00;02;19;08
Speaker 1
In your house.

00;02;19;08 – 00;02;24;13
Speaker 2
In my house. the front steps and the stairs up. you know, it’s miserable.

00;02;24;14 – 00;02;25;22
Speaker 1
Ibuprofen. Okay.

00;02;25;22 – 00;02;47;27
Speaker 2
Yes. But, you know, if I’m going to find help to do that, I’m going to call you. In this case, it was Rafi. And, we we have a really strong relationship. We’re good friends. Yes. Was the immediate answer. I’ll be right over. And so we got that. We got the thing up there. So and it’s going to stay there.

00;02;47;27 – 00;02;50;01
Speaker 2
Oh because if you’re listening we’re not moving yet again.

00;02;50;01 – 00;02;51;04
Speaker 1
Those are some stairs man.

00;02;51;05 – 00;03;10;23
Speaker 2
So but let’s say that you were Rafi are not available. And I have to go to another person that I have a relationship with, but not as strong as with with you. Then I’m probably going to call James and say, hey buddy, can you come help me move this dresser. I’ve got some beer. You know we can enjoy afterwards, you know.

00;03;10;25 – 00;03;30;15
Speaker 2
So that, that next layer out cost me a little bit more to get this help. Sure. But if he’s not available, then I’ve got to call Tony, and I’m like, hey, dude, I really need some help. Yeah, but I got some beer and pizza, right? So it’s going to cost me even more to get there. Sure. So it’s not much different when we’re looking at businesses that are trying to to, to get customers.

00;03;31;00 – 00;03;43;10
Speaker 2
and the cost of what it takes to get that customer and then not just a cost to get them there, but then what they do with, you know, beat you up on price and. Yes. And making that purchase.

00;03;43;11 – 00;03;44;04
Speaker 1
Right.

00;03;44;06 – 00;04;07;17
Speaker 2
The stronger the relationship we have, the easier it is for them and the faster they’re going to be to select us. Yes. And price is going to be lower on the list of things that are priority. No, no, it’s always got a price. Buyers. Oh, sure. But if we’re doing things, well, if we’ve got a good strategy in place and we understand what our customers are doing.

00;04;07;20 – 00;04;15;09
Speaker 2
Then building those relationships in the right way are going to increase our profit margins. I absolutely don’t know anybody who doesn’t want to do that. No.

00;04;15;10 – 00;04;31;08
Speaker 1
Well yeah. I mean they should be doing that. And so I think the margins are where the power is. Yeah. you know, it just kind of. I had a story here, something, I went through this recently, and it’s it’s really right in this wheelhouse. So about a year ago, I was looking to buy a thermal scope.

00;04;31;11 – 00;04;50;24
Speaker 1
for my hunting needs. And I was looking at one in particular that was not out yet, and I liked it and wanted it. And I called the company that I had seen that one that was not necessarily the most prominent company, but they were the ones that resonated with me the most because of how they went about addressing these different scopes and how they explained them.

00;04;50;26 – 00;05;11;04
Speaker 1
so, I found them on the podcast and went to a website and finally called and they were like, look, man, it’s not out yet, you know? But it’s coming. We don’t know what exactly when, but we’ll let you know. Well, fast forward a year. And I thought, man, you know this thing. Well guess what? It came out and, they sent me a notification and said, hey, you know, someone let you know it’s here.

00;05;11;04 – 00;05;33;19
Speaker 1
So I called and I talked to, a salesperson there at the company, and he said, hey, yeah, we do have it, but let me talk to you for a second about another one that’s out as well. Yeah. You know, two different scopes in the same ballpark, a price, right? Yeah. And he went through all the different, features and benefits and all the things that were really important to me when making such a larger purchase.

00;05;33;20 – 00;05;46;14
Speaker 1
Right? Yeah. and he spent a while with me, you know, discussing this, and I didn’t push me, but I purchased the one that he, didn’t recommend, but the one that he brought to my attention.

00;05;46;20 – 00;05;49;05
Speaker 2
He made a video where he made another option.

00;05;49;10 – 00;06;05;24
Speaker 1
Of another option. and so they they sent it to me overnight. Pay for the insurance. and when it came, they got a notification and they sent me an email said, you know, you’ve received your scope. It’s been shipped. If there are any issues or any problems, please let us know ASAP.

00;06;05;24 – 00;06;06;03
Speaker 2
Yeah.

00;06;06;03 – 00;06;12;27
Speaker 1
So we can address this. Okay. Could I have gotten that scope somewhere else for maybe a little bit less money?

00;06;13;05 – 00;06;13;22
Speaker 2
Guarantee it.

00;06;13;22 – 00;06;23;10
Speaker 1
I feel pretty confident that could, you know, 3 or 4 or $500. Okay, great. But at the end of the day, it’s just the process. And the way they made me feel.

00;06;23;10 – 00;06;23;28
Speaker 2
Yeah.

00;06;24;00 – 00;06;36;18
Speaker 1
they were my go to gas for scopes. Yeah. You know, and and they will continue to be. So if I ever have anyone or hear anyone talking about wanting a thermal scope, I’m going to say, guys, listen. Yeah, this is where you need to go.

00;06;36;19 – 00;06;39;12
Speaker 2
And what did you do, 10s after you got off that phone call?

00;06;39;17 – 00;06;56;17
Speaker 1
Oh, I contacted you and said, man, you called. These guys are great. And here’s the thing. And again, I mean, I think that this is talked about so much in such a mystical, magical way that, you know, and it makes people think, oh my gosh, I mean that what are we talking about? I mean, this is some kind of an elusive object.

00;06;56;18 – 00;06;57;04
Speaker 1
No it’s not.

00;06;57;05 – 00;06;58;12
Speaker 2
No it isn’t.

00;06;58;13 – 00;06;59;06
Speaker 1
It’s simple.

00;06;59;13 – 00;06;59;28
Speaker 2
Yeah.

00;07;00;03 – 00;07;14;29
Speaker 1
It’s just taking the time to communicate and talk to people one at a time. Yeah, and make them feel validated. Make them understand what’s going on and make them want to do business with you. Yeah, well.

00;07;14;29 – 00;07;32;18
Speaker 2
Look, that’s what building relationships are. If we go to a party or we’re out and we’re meeting somebody new and, we start to to see what coming out commonalities we have. Sure. You know, where are you from? If you’re from the same city, what school did you go to? Hey, do you know this guy? Yeah, I know that guy.

00;07;32;20 – 00;07;56;10
Speaker 2
Do you believe what he did in high school? You know, we start looking for these commonalities. And in each thing that we identify with, each other. We build a strong relationship. And so business is no different. It’s like if you can’t begin to speak to your like directly to a single customer. Like I know that everything rolls up to, to numbers and the monthly, quarterly yearly and all that stuff.

00;07;56;12 – 00;08;21;09
Speaker 2
But it starts with one, one customer at a time. Oh yeah. If you can’t speak to them in a way to build that relationship, and it really is building like one one brick at a time, whatever, whatever nouns you want to want to use. But you have to get through these layers, because if you stop at the third layer, like I mentioned earlier, and you have to use a lot of beer and pizza to get them there.

00;08;21;23 – 00;08;24;05
Speaker 2
That’s just that’s not a very strong relationship.

00;08;24;08 – 00;08;28;10
Speaker 1
No it’s not. And you end up competing on price and becoming a commodity.

00;08;28;11 – 00;08;47;23
Speaker 2
Yeah. And you know what’s interesting is that when you have a really strong relationship with somebody and you, you, reach out and say, hey, champ, can you come help me out? Then you’re going to bring the beer to me. You know, and that’s, that’s when you’ve got that strong relationship and, and in business it’s, it’s having that relationship through the transaction.

00;08;47;25 – 00;08;58;22
Speaker 2
And then what you did with that scope is you got off the phone, you made the purchase. You immediately called me. Yeah. Dude let me tell you about this. Yeah. Because it was that, that that.

00;08;58;22 – 00;09;11;02
Speaker 1
Could have such an impact. Look, he could have sold me the one that I’ve been calling about or waiting on for a year. Yeah. He could have just said, yeah, man, come on. But he didn’t. He took the time. And, you know, I’m sure he’s got other things to do as well. Right. Yeah. 20 30 minutes going through this with me.

00;09;11;05 – 00;09;14;16
Speaker 1
And it was just that stuck out with me in such a huge way.

00;09;14;16 – 00;09;19;15
Speaker 2
Yeah. And you, you, you mentioned that they had a podcast. Now not everybody needs to have a podcast.

00;09;19;22 – 00;09;20;10
Speaker 1
No no no no.

00;09;20;11 – 00;09;42;14
Speaker 2
But what they they chose to communicate with you buy a podcast and they did it over a year’s time. I mean, think about that. You spent a year waiting on a product. I did that you probably could have ten minutes after you discovered that it was going to be a wait. Purchase something else.

00;09;42;14 – 00;09;43;14
Speaker 1
Yeah I could have.

00;09;43;17 – 00;09;50;28
Speaker 2
I mean so so that business. Not only built a relationship, built a strong enough to wait a a.

00;09;51;02 – 00;10;08;05
Speaker 1
Year year one year. That’s crazy. One year. Yeah they did. And I kept going back to the and watching their podcast and, and just getting the information and just trying to learn more you know and as I was doing that I was I began to, you know, kind of, and build this kind of relationship with these guys as they were talking and stuff.

00;10;08;05 – 00;10;15;26
Speaker 1
So. Yeah. Yeah, it’s really a powerful thing. what do you think one of the major reasons why many businesses struggle with it?

00;10;15;29 – 00;10;23;10
Speaker 2
because they just they don’t have a really good understanding of it. There’s there’s so many things that have turned into cliche buzzwords.

00;10;23;11 – 00;10;23;17
Speaker 1
Yeah.

00;10;23;20 – 00;10;47;16
Speaker 2
B.S., and you’ve, you’ve got there are so many things that business can do, but they, they’ll, they’ll skip over the most fundamental thing. And so it’s like if you can’t articulate who you are, it’s your brand. you’re going to leave it up to chance. And it’s really hard to build a relationship with somebody and to make that connection if you can’t articulate it yourself.

00;10;47;18 – 00;11;09;25
Speaker 2
It’s like, again, being at a party and walking away from a conversation like, oh man, I totally forgot to tell him about this thing. Yeah. You know. Right. And and so business owners, it’s so easy to skip into cut corners because, dude, you can have an advertisement out on Facebook or LinkedIn in less than five minutes. Oh I know.

00;11;09;28 – 00;11;25;19
Speaker 2
So, I mean, if you got that level of quick dopamine hit access because somebody clicked on it. Versus taking the time to actually build a solid foundation and build a brand so that you can build a relationship so that you can increase your profit margin.

00;11;25;19 – 00;11;47;03
Speaker 1
Yeah. Right. Do you ever feel like well you know I know we’re going to continue standing on this soapbox right. Oh yeah. But at some at some point it’s like, man, we just keep going back to and going back to the reason why we do and go back to the foundation and making sure that the foundation is solid and strong is because it nothing that you do without a solid foundation is going to be successful.

00;11;47;03 – 00;12;00;23
Speaker 1
No it’s not. No. You can go to business, you can go to market without it. And you may have some sales, right? You may have some things go your way for a while, but at the core of it, if you don’t have a solid foundation, you’re in trouble.

00;12;00;24 – 00;12;08;01
Speaker 2
Yeah. I mean, you can if you define sales, or success as a grind, then yeah, you’ll be really.

00;12;08;01 – 00;12;42;25
Speaker 1
Successful and have at it. that’s not a place I want to live. No. You know. No, not at all. It’s a time, sucker. It’s a it’s a money sucker. And it just it just it just it just brings. It brings everything into such a hard place of business. Yeah. You know, for sure. and I think another reason why is because business owners are really they’re, they’re, they get very busy and doing what they do every day and trying to be successful and, you know, you know, helping customers and also helping, you know, employees do their jobs, you know, and, you know, it’s very difficult to go alone.

00;12;42;27 – 00;13;02;20
Speaker 1
ideally for us and what we do, it would be fantastic to be able to meet every business owner in the initial stages of saying, hey, I’ve got this idea, you know, I’m ready to take this to market, right? But that’s not the reality. I mean, a lot of times people, you know, they, they they really, they, they believe they can do it themselves.

00;13;02;20 – 00;13;10;07
Speaker 1
Yeah. and they, they kind of just get a logo put together and throw a website together and let’s roll. We’re going to make we’re going to make big money.

00;13;10;09 – 00;13;11;08
Speaker 2
Yeah.

00;13;11;10 – 00;13;17;18
Speaker 1
but you know, the great thing about what we do as well is we’re able to meet people where they are.

00;13;17;18 – 00;13;19;05
Speaker 2
Yeah, that’s that’s critical.

00;13;19;07 – 00;13;31;21
Speaker 1
It is because we’re not able to reach everybody in the beginning and say, hey, stop. Just just pause, man. Take a deep breath, relax a little bit. Let’s go back to the the foundation of this thing and build it. Right.

00;13;31;21 – 00;13;56;22
Speaker 2
Yeah. Okay. And that really sets you up for building those relationships. It does because most people, most businesses that we encounter. And just whether it be that we work with or just observe, they’re they’re stuck in that transactional chase. They’re just chasing the transaction. And and a lot of that comes from just a, overlooking this step of that solid, solid brand foundation.

00;13;56;25 – 00;14;20;26
Speaker 2
Because when you when you really understand it, we all desire it. Every business owner desires and, but they haven’t found it. But when you find that and that’s one of the things that we, I just love so much is just seeing that, that look of relief and enlightenment to be able to put it put together, an understanding of, hey, this is how a human being, a consumer, this is how they work.

00;14;20;28 – 00;14;22;22
Speaker 2
Yeah. This is how this how it all happens.

00;14;22;23 – 00;14;23;21
Speaker 1
The psychology involved.

00;14;23;22 – 00;14;36;06
Speaker 2
Yeah. This this is this is who you are. You’re not expressing this. So let’s express your brand and let’s not leave it up to chance. And then let’s matches up with your business cycle. And it’s like it’s a beautiful thing.

00;14;36;06 – 00;14;39;17
Speaker 1
It is when you put it all together. Yeah, it is and it is.

00;14;39;17 – 00;15;03;06
Speaker 2
And it makes me sad because there’s just so many people that don’t, for whatever reason, they, they don’t have the wherewithal to, to look for that help. And, and it’s easy to fall into that. I mean, heck, I mean, I, I fall into that trap before. Oh, yeah. So it’s, it’s it’s, it’s easy to, to fall into, but it’s, it’s help is not far away.

00;15;03;06 – 00;15;22;18
Speaker 1
No. And I mean, if you can’t do it yourself and you can’t get it right, which a lot of business owners can’t, you’re gonna have to end up paying somebody like us. Yeah, 25, $35,000 to do it. But here’s the thing. No matter who you use, make sure that they know what they’re doing. They know how to lay the foundation correctly, and it will pay off big time in the end.

00;15;22;19 – 00;15;26;08
Speaker 1
Yeah, right. It’s an investment. Yeah. People have to understand.

00;15;26;10 – 00;15;41;22
Speaker 2
Well, because again, it’s it sets you up to be able to actually make and build those relationships. And it goes back. I mean, it just there’s just no other way to say it. Your margins are in there in the strength of your relationships.

00;15;41;25 – 00;15;42;15
Speaker 1
All day, every.

00;15;42;15 – 00;16;11;23
Speaker 2
Day, every single day. Yes. And and it’s it’s not it is not an unattainable knowledge. You it’s it’s learnable and it can be applied to, to so many facets of, of of a person’s business. Sure. And yeah. Then it, then it actually helps people out. Yeah. And and then there’s the margin of time. You know, if you, if you have a good, solid foundation and a good strategy, you get a lot of time back.

00;16;11;25 – 00;16;13;22
Speaker 2
and everybody wants to increase their time.

00;16;13;26 – 00;16;14;28
Speaker 1
Man, do they ever.

00;16;14;29 – 00;16;15;12
Speaker 2
Yeah.

00;16;15;17 – 00;16;33;18
Speaker 1
You know, we all want to spend more time with our children, our families, and doing the things we love. So. Yeah. So let’s continue beating that same, getting on that box and we’ll keep hammering away and absolutely hoping we’re resonating with someone every single day. Every single day. And I’ve enjoyed this. Yeah. Until next time. We’ll do it.

00;16;33;24 – 00;16;42;02
Speaker 2
See you. See?