Last December when CompUSA announced its’ closing, not too many people were surprised. Why? It seems that a lot of the people who walked into their doors saw their failing.
Sure there can be other factor that will break a business. Poor financial management will run a business into the ground quickly. I have seen a business just starting to turn a profit, where the owner decided to take their entire family for a week’s vacation in Hawaii. The money they used was from the business’s bank account. When the owners returned they employees walk out. Why did they walk out? They had to face all creditors with bounced checks.
A product or service that no body wants is another reason why a business will fail.
At one point I saw a lot of business the opened up to sell stuff on ebay. I suppose in some sections of the country it was a good profitable business. However in Boise ID, it was a marginal success. They all closed due to lack of people using the service.
Advertising in the wrong media will make or break a business.
A three line ad in one local paper in one region of the country a home based business works great, where in another region. Unless there is a store front you are not considered a reputable person.
Customer Service is more important than anything else.
After listening and reading all the comments and analytics of CompUSA closing, I have come to one basic conclusion. They had the store front, the corporate finical management. They even had the products and services that people wanted. It was the lack of good customer service that drove people away from the store.
From the big box stores of Wal Mart and Best Buy to the little mom and pop computer store that has been around for years, great prices, or a large inventory will not make or break the store. It is the kind of service they offer. The focus on customer service will keep the business adapting and changing to keep the customers coming back. Customers will see it and keep going back to these places.
