We’ve seen the
history of mass during the Industrial Revolution.
It has taken the form of: production, factories, transportation, food, retailers, riots, consumption, marketing,
start-ups, dotcoms, healthcare, layoffs, moving overseas and closures. Anyone
see a mass pattern here?
During the
1960’s, it was common to find several
gas stations at any major intersection in the United States. They attempted to
offer free drinking glasses or soda (6 packs, 12 packs, or even a case) to
compete for your business. Many offered full service car repair. The service
stations paid employees to wash your windows, check your oil and pump the
gasoline.
Near the end
of the long tail,
service stations offered free 2-litre for enticement, but the auto services and
attendants began being replaced with mini-market stores inside the business. Check
your own oil, wash your own windows, pump your own gas or air into your tires (no
longer free). The money was being made from the food and merchandize sold
inside the market, not the gasoline product.
Gas card
have become the only form of enticement and serve as a form of customer
tracking, while some outlets feature a car wash. Few gas stations offer any
type of mechanical service.
Slowly gas
stations in cities became less prevalent. The economics of the industry
changed. Retailing to the masses was no longer sustainable.
Many of
those street corner businesses have been replaced by drugstores. Where you find
one pharmacy, you’re likely to see another close by.
The same
with big box stores replacing grocery stores, hardware and retail stores. Businesses
designed to market to the masses by offering one-stop shopping.
Healthcare
is another industry falling into the mass trap. Many healthcare businesses are
expanding, merging systems to reduce cost and increase services. This reduces the competition and one company
is committed to serving the masses.
The biggest
problem of scaling to mass is- it just doesn’t
last. One large change in economics, technology or market share can bring a
giant to its knees. Just ask General
Motors.
The problem
of mass:
·
Lower
wages (unless unionized).
·
Loss
of personalized service. Mass is about numbers, not people.
·
Customer
service suffers. Familiarity is gone. Nobody knows you.
·
Quality
becomes lost in the focus of mass (replaced with a chant).
·
Lack
of standardization of employee roles becomes a morale issue.
·
Consistency
from employees between roles, location and businesses differ.
·
Growth
is all that matters.
The biggest
problem with mass is once the threshold of growth is met, the scale of the
business becomes about reduction. Then the pain begins. When you cheapen something
to obtain mass acceptance, offering less at the lowest price is the
only option. The race to the bottom is all about someone else doing
something cheaper!
It’s far
better to offer services of exceptional
value with customer and employee satisfaction to sustain or grow a
business. Natural growth built on a sound business foundation is far sturdier
than scaling to mass.
It’s no
secret.
Just ask
General Motors!
Until
We Meet Again,
Jim Carver
Author: The Legacy of David A. Wells- The Lexington High School
“Band of Gold”
Something Meaningful that Matters!
www.successthroughmusic.com
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