Advertisement
Enjoy access to a free NMLS renewal class when you attend an in-person event.
Which Matters More: Products, Pricing or Processes?
A lot of companies focus on products. They try to build a better mousetrap. It makes sense. The product is what people see; it's the tangible thing that they buy. It's what they go shopping for. If you can offer a better product, then you're sure to succeed, right?
Another thing that many organizations focus on is pricing. If you can't offer a substantially different product, then the next best thing you can do is undercut the competition. If you can sell the same thing for less, then people will be more likely to go with you than with the competition.
Sell a better product, or offer a better price; this is the goal that most organizations seem to shoot for.
If you ask me, though, focusing on product and pricing is treating the symptoms rather than the problem. It's true that people want the better product, and of course they want it at a better price. But you can't simply decide to build a better product or offer a better price. Those things can only come as a result of something else: better processes.
In my mind, process is key. It's not as bright-and-shiny; people don't see your process. It's works behind the scenes, but it is more important than anything that can be put into an ad. If you improve your processes, your cost will diminish allowing you to offer a better price. If you improve your processes, you will uncover innovative solutions that help you create a better product.
By all means, shoot for better pricing and a better product. But just remember: you can only get there by first developing a better process. It's all starts with your processes.
David Lykken, a 43-year veteran of the mortgage industry, is president of Transformational Mortgage Solutions (TMS), a management consulting firm that provides transformative business strategies to owners and “C-Level” executives via consulting, executive coaching and various communications strategies. He is a frequent guest on FOX Business News and hosts his own weekly podcast called “Lykken On Lending” heard Monday’s at 1:00 p.m. ET at LykkenOnLending.com. David’s phone number is (512) 759-0999 and his e-mail is [email protected].
