Can
being fired from your job be a stepping-stone for your success? Napoleon Hill said, “Most great people have attained their greatest
success just one step beyond their greatest failure.
In
1978 Bernie Marcus and Arthur Blank were executives of “Handy Dan” part of
Daylin, Inc. Their division, Handy Dan, was making lots of money, while Daylin,
Inc. was going bankrupt. They were suddenly fired!
Before
they were fired, Marcus and Blank, had been experimenting at Handy Dan’s by
lowering the prices on some items. “They observed that when they marked down
items, volume increased and costs as a percentage of sales decreased.” From
this successful idea they developed their step-by-step plan of action. They
decided on Atlanta as their store location. Then they located two large empty
stores and put on the shelves 18,000 products from plumbing, hardware,
electrical, paint, and lumber.
They
charged close to 1/3 less for each item. Marcus and Blank selected and trained their
employees to “deliver the best customer service”. They chose knowledgeable salespeople
who knew about their products and were able to answer customer’s questions, and
direct them to the best equipment for their needs. Their employees were able to
tell customers how to do the work.
Their
stores had everything that a homeowner or contractor needed ,under one roof,
for the lowest price possible.
On
the first day that they opened their store, Marcus and Blank gave their
children $1 bills to give out to customers as a thank you for coming in. By
evening, 5pm or 6pm, their children were in the parking lot giving out a $1 to
each person they could convince to come into the store.
Blank
said, “It was a crushing disappointment.”
Marcus
said, “It looked like curtains for us. My wife wouldn’t let me shave for days.
She didn’t want a razor in my hand.”
On
the third day, “a satisfied customer returned” bring with her a thank you gift
of “a bag of okra for Marcus” for helping her solve her problem.
She
gave them hope and then “word of mouth” brought more customers into Marcus and Blank’s, “The Home Depot” store.
Today,
The Home Depot has 371,000 employees’ worldwide.
They sell hardware, plumbing, lumber, tools, home appliances, electrical
supplies, paint, flooring, building materials, and gardening equipment and
supplies. In 2014, Home Depot earned $78.812 billion in profit an increase of
over $4 billion from 2013.
What are the three
lessons you can learn from Bernie Marcus and Arthur Blank about stepping-stones
into success?
1) Remembering their
successes with lowering the prices on certain items and saving in purchasing on
volume, Marcus and Blank wrote up their step-by-step plan of action. They located
two empty large buildings stores in Atlanta. On the shelves they put 18,000
products from plumbing, hardware, electrical, paint, and lumber. They charged
close to 1/3 less for each item.
2) Trained employees to “deliver the best
customer service”. They chose knowledgeable sales people who knew their
products and were able to answer customer’s questions, and direct them to the
best equipment for their needs.
3)
Their stores sold homeowners everything they needed in one store and their expert sales people told them how
to repair it. Contractors were able to find everything they needed in one store
for the lowest price possible. It was a “Do it yourself” store.
If Bernie Marcus and Arthur Blank hadn’t been fired at “Handy
Dan’s” they would never have created “The Home Depot” and employed 371,000
people worldwide, giving them good jobs to take care of themselves and their
families. Their store was a how to do it store that housed all the products
needed under one roof for homeowners and contractors. Their store filled a
need!
Napoleon Hill said, “Most great people have attained their greatest success just one step
beyond their greatest failure."
Prime Minister Winston Churchill said, “Never give
in, never give in, never, never, never, never—in nothing, great or small, large
or petty—never give in except to convictions of honor and good sense.”
So the next time you fail at
something, remember the failure of Bernie Marcus and Arthur Blank and how they
responded to failure by developing a new plan of action to develop their “Do it
yourself” store - The Home Depot.
By the way, have you ever heard of
“Handy Dan’s” before this article?
Don’t let any failure stand in your
way, let it be your stepping-stone to success.
Madeline Frank, Ph.D., DTM, John Maxwell Team Member, and
Certified World Class Speaking Coach is an Amazon.com Best Selling Author,
sought after speaker, business owner, teacher, researcher, and concert artist.
She helps businesses and organizations "Tune Up their Businesses".
Her innovative observations show you the blue prints necessary to improve and
keep your businesses successful. She writes a monthly newsletter
"Madeline's Monthly Article & Musical Tips Blog" and a monthly
radio show "Madeline's One Minute Musical Radio Show". She has just
published her new book "Leadership On A Shoestring Budget" available
in print or as an e-book. To contact Madeline for your next speaking
engagement: mfrankviola@gmail.com
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