WEBVTT 1 00:00:00.000 --> 00:00:04.800 Everybody messes up. It's part of business. Your employees are gonna mess up. You're gonna mess up as a boss 2 00:00:04.800 --> 00:00:08.400 Your customers are gonna think you messed up even when you didn't mess up messing up happens 3 00:00:08.400 --> 00:00:16.400 And so if you act every time like you have never had a mess up before then you are going to mess up even worse 4 00:00:16.400 --> 00:00:18.320 And so in this podcast 5 00:00:18.320 --> 00:00:23.400 I'm gonna talk you about three different stories about big mess ups that I have done and been an experience or of and 6 00:00:23.480 --> 00:00:29.320 Some tactical things that you can do that have made our businesses so much better and turned one-star reviews into 7 00:00:29.320 --> 00:00:33.800 Five-star reviews and the step-by-step process thing you through that. What do you do when you mess up? 8 00:00:34.240 --> 00:00:37.040 Right because you're gonna you're gonna mess up in business 9 00:00:37.040 --> 00:00:38.320 You're gonna mess up with a customer 10 00:00:38.320 --> 00:00:42.600 You're gonna you're gonna build someone the wrong amount. You're gonna give someone the wrong date 11 00:00:42.600 --> 00:00:47.520 You're gonna forget to onboard someone. You're gonna have a package that doesn't get delivered it gets delivered to the wrong address 12 00:00:47.760 --> 00:00:51.320 You're gonna you're gonna onboard someone and put the wrong companies logo on it 13 00:00:51.720 --> 00:00:57.240 And every one of those examples that I just said is something that we have done at some point in my career and so 14 00:00:57.840 --> 00:00:59.840 I want to tell you two stories 15 00:00:59.840 --> 00:01:03.680 And then I want to drive home a couple of principles that have served us well 16 00:01:04.320 --> 00:01:07.040 Using them if you want, but they have worked pretty well for us 17 00:01:07.040 --> 00:01:09.520 And so I'll tell you two kind of polar extremes 18 00:01:09.720 --> 00:01:15.520 So I I buy a lot of gym equipment even though I'm not even in the gym industry technically anymore 19 00:01:15.520 --> 00:01:21.120 I have a massive gym that is in our headquarters. That's really sweet. I'll just put it out 20 00:01:21.120 --> 00:01:25.320 We feel like 85 unique pieces in the gym and it's just just for me and the team 21 00:01:26.040 --> 00:01:33.040 And so I all the pieces are bought from individual people. I kind of put the pieces together that I like and so it's not just one distributor 22 00:01:33.040 --> 00:01:38.560 And so I had a piece of equipment that I bought and I was really excited about it because I was like, oh man 23 00:01:38.560 --> 00:01:43.840 I love this piece. It's gonna be awesome and when it showed up it was bent like the frame was bent 24 00:01:44.240 --> 00:01:48.720 And the and the weight stack was kind of off and so one of the main polls was bent 25 00:01:48.720 --> 00:01:52.920 So then it was like this whole ordeal and we called the company up. He was like well 26 00:01:53.800 --> 00:01:58.720 I mean you you accepted the shipment and we're like yeah because the truck guy was like what do you want me to do this? 27 00:01:58.720 --> 00:01:59.760 I was like all right, we'll drop it off 28 00:01:59.760 --> 00:02:01.520 He's like well as soon as you accept this shipment 29 00:02:01.680 --> 00:02:06.480 It's your liability and I don't know if it like it happened before after that 30 00:02:06.480 --> 00:02:10.600 And I was like well, I'm telling you it happened before and I just wanted to help the guy out 31 00:02:10.600 --> 00:02:15.080 Who is the truck driver like complete is complete the runs that you had for the day and he was like 32 00:02:15.520 --> 00:02:17.040 Sorry, dude 33 00:02:17.040 --> 00:02:23.080 And I was all right. Well, I mean, can we can we get like the pieces or something like a new frame that you can ship out 34 00:02:23.080 --> 00:02:27.760 Just that piece and he's like well, that's gonna be extra and I'm like, dude. I bought this thing 35 00:02:28.240 --> 00:02:34.840 It arrived not the way that I bought it and now I'm incurring additional costs in terms of financial cost 36 00:02:34.840 --> 00:02:39.640 But I also have the additional cost of now I'm talking to you when I'd rather be using the piece of equipment 37 00:02:39.640 --> 00:02:47.000 And so the TLDR of that is I basically just threw the piece out and I hate the person who I did business with and I 38 00:02:47.000 --> 00:02:50.080 Will tell anybody who ever considers buying from them that they suck 39 00:02:50.640 --> 00:02:53.480 Now, let's take the alternative example 40 00:02:54.000 --> 00:02:55.280 so 41 00:02:55.280 --> 00:02:57.280 last year I went to 42 00:02:57.920 --> 00:03:03.080 Orlando for Jim con and we stayed at the Ritz and 43 00:03:04.440 --> 00:03:09.400 When I went to the Ritz we had our team with us and so we went out they have a Michelin star restaurant there 44 00:03:09.840 --> 00:03:14.080 Which by the way I found out was actually named after Michelin tires totally random 45 00:03:14.080 --> 00:03:17.160 I saw like the Michelin tire man at the front of the restaurant. I was like this feels weird 46 00:03:17.160 --> 00:03:22.680 But it's actually what it is anyways, and so we go in there and it's this this really nice restaurant or whatever 47 00:03:22.920 --> 00:03:27.160 But it took three and a half hours to eat our entire meal 48 00:03:27.160 --> 00:03:30.400 We didn't get drinks for like 45 minutes 49 00:03:30.520 --> 00:03:34.320 We didn't get the appetizers until minute 90 and I was like dude 50 00:03:34.320 --> 00:03:39.760 This is I was like I honestly just want to go get Chick-fil-A like I don't even care right and so anyways 51 00:03:39.760 --> 00:03:42.560 We finished the whole dining experience if you want to call it that and 52 00:03:43.560 --> 00:03:49.800 The manager of the hotel, you know our team was like hey just letting you know like this was pretty pretty tough and 53 00:03:50.800 --> 00:03:54.360 As soon as the manager found out about that he was so upset 54 00:03:54.360 --> 00:03:57.840 He was like oh my god. I can't believe this happened. We just switched staff over 55 00:03:57.840 --> 00:04:00.360 We're training some team up, and I think we were under you know short 56 00:04:00.360 --> 00:04:03.960 You know store staff that day whatever and he said but that's a hundred percent our fault 57 00:04:03.960 --> 00:04:06.480 He said please let me make it up to you and so 58 00:04:07.080 --> 00:04:12.320 For the remainder of the trip like one he comped the dinner that we had there, which was expensive 59 00:04:12.960 --> 00:04:17.080 Then we got upgraded. I think rooms for the rest of our stay 60 00:04:17.280 --> 00:04:25.280 They he said please like they delivered like fruit baskets and drinks and other stuff to our room throughout the day and my team's room 61 00:04:25.280 --> 00:04:29.000 So it's not just me like we had eight people with us. They're staying in four five rooms 62 00:04:29.760 --> 00:04:34.960 And so all of everybody got taken care of he made us reservations at two different restaurants 63 00:04:34.960 --> 00:04:41.040 The next basically every the night for us to choose from and then he met us at the restaurant to see this at the table 64 00:04:41.040 --> 00:04:47.240 He got us the appetizers and drinks at the restaurants that he met us at to make sure that we were okay now 65 00:04:48.160 --> 00:04:49.760 I'll tell you this 66 00:04:49.760 --> 00:04:52.320 Since then if I go to Orlando 67 00:04:52.320 --> 00:04:58.840 I stay at the Ritz and I talked and I talked to Javier because Javier is my dude and Javier goes above and beyond and the other guy at the other 68 00:04:58.840 --> 00:05:01.160 Company I don't say anything about now 69 00:05:01.160 --> 00:05:04.760 I don't even want to say the name of the company because I don't want to give them airtime all right 70 00:05:04.960 --> 00:05:11.480 And so I think there's some really interesting principles about this that we've taken from for our business 71 00:05:12.120 --> 00:05:17.800 So Disney says that there's 37 magic moments that it takes to make up for one tragic moment 72 00:05:17.800 --> 00:05:20.320 And I think there's two kind of levels to thinking about this 73 00:05:20.520 --> 00:05:25.320 So the magic moments it means it takes so many good things to make up for one bad thing 74 00:05:25.320 --> 00:05:31.040 So by all for all intents and purses avoid the tragic moment because it's gonna take you so many to make up for it 75 00:05:31.040 --> 00:05:36.640 But if you do have that tragic moment then you have to do a ton and I see that on kind of bi-directionally 76 00:05:37.080 --> 00:05:39.080 Now one of the things that 77 00:05:39.080 --> 00:05:44.960 I like to think about a lot is like I never want to become someone's project and what I mean by that is like 78 00:05:44.960 --> 00:05:49.720 If if you piss someone off or you do something wrong and you know you did something wrong 79 00:05:50.200 --> 00:05:58.800 You don't you don't want that person to stew and just think like how am I going to destroy this person like you don't want to become someone's project 80 00:05:58.800 --> 00:06:01.200 And so I've talked about the angry button 81 00:06:01.200 --> 00:06:02.240 I'm gonna get to that in a second 82 00:06:02.240 --> 00:06:05.960 But I actually want to hit on this point because I think it's really important which is that a 83 00:06:06.720 --> 00:06:09.200 Refund to a customer is an apology 84 00:06:09.720 --> 00:06:14.360 But you have to do better than that if you hit your wife and then you apologize 85 00:06:14.360 --> 00:06:18.160 It's not just like oh, we're neutral. It's just as if I had a hitter 86 00:06:18.160 --> 00:06:21.440 It's like and I'm doing this as a natural extremity by hyperbolic, but like 87 00:06:22.280 --> 00:06:27.960 You rocking someone and saying I'm sorry is not enough and so let me let me prove to the point 88 00:06:27.960 --> 00:06:35.200 If you accidentally kill someone in manslaughter society deems you saying sorry family isn't enough 89 00:06:35.200 --> 00:06:39.800 So what is the what does the government do they sentence you and they put you in prison? 90 00:06:39.800 --> 00:06:44.680 So they say you have to say sorry and you have to pay 10 years because of involuntary manslaughter 91 00:06:44.680 --> 00:06:47.800 They say sorry isn't enough and so 92 00:06:48.520 --> 00:06:54.240 Refunding someone isn't enough if if have year at the Ritz had just refunded me the meal 93 00:06:54.240 --> 00:06:58.760 I wouldn't be like stoked. I would have been like we wasted three and a half hours of my night 94 00:06:58.760 --> 00:07:03.600 And it's and like the food was cold like all these other things like I'm not like I'm not back to neutral 95 00:07:03.600 --> 00:07:07.400 Right like one tragic moment. He gave me a magic moment. Okay, give me a refund 96 00:07:07.400 --> 00:07:11.960 And so one of the things that you have to wrap your head around and this took me some time is like you actually are gonna 97 00:07:11.960 --> 00:07:15.040 Go negative on refunds meaning like you're gonna lose money 98 00:07:15.040 --> 00:07:19.160 You're not just gonna be like oh well you paid me a hundred bucks. I'm gonna pay you a hundred dollars back now or even 99 00:07:19.160 --> 00:07:23.760 It's no because there's additional cost that they incur and so like 100 00:07:23.880 --> 00:07:27.600 They got dressed up like or like if we got dressed up to go out this nice restaurant 101 00:07:27.600 --> 00:07:30.880 We have expectations of the evening that are gonna be really good 102 00:07:30.880 --> 00:07:34.840 And so not only did we pay money, but we paid time and every person might you know 103 00:07:34.840 --> 00:07:40.440 The the gals of my team got all dolled up and all that stuff and all of this is for it goes completely into the tragic 104 00:07:40.600 --> 00:07:45.120 Perspective and so as a customer or one of your customers has one of these experiences. It's like 105 00:07:45.440 --> 00:07:47.440 Dude refunding is them is not enough 106 00:07:47.920 --> 00:07:54.680 And so we have to do have to go above and beyond and so one of the issues that happens though is that when 107 00:07:54.800 --> 00:07:59.080 When it happens and this is this is now me talking to the teammates so people were working businesses 108 00:07:59.240 --> 00:08:04.420 Like what you can't do and I'm just I'm just pleased. I'm begging you what you can't do is 109 00:08:04.640 --> 00:08:11.520 Trying minimize it to the customer right like Havier could have been like oh, I mean like basically by saying you're being ridiculous 110 00:08:11.920 --> 00:08:17.400 Don't be a victim like that's what that like that's whatever you say when the person's like hey the food was late 111 00:08:17.400 --> 00:08:20.240 The what all you're doing is trying to invalidate them 112 00:08:20.240 --> 00:08:28.720 You're basically saying you're lying or you're not telling the truth or I mean pick your poison and your base is saying that you don't matter 113 00:08:29.240 --> 00:08:34.920 That's what you're saying and so what happens is is that people then escalate to be like yes 114 00:08:34.920 --> 00:08:41.360 I do matter and you don't understand and not only that but I'm gonna punish you and so what do you think one star reviews are 115 00:08:41.600 --> 00:08:46.280 Think about it for a second a one star review is a customer's way of 116 00:08:46.800 --> 00:08:51.120 Being the judicial system and saying okay this person refunded me 117 00:08:51.120 --> 00:08:54.200 But they needed to do more and so I'm still gonna jam them 118 00:08:54.200 --> 00:08:59.200 I'm still gonna put them in prison even though they apologize for killing my husband and manslaughter 119 00:08:59.400 --> 00:09:02.280 Right even though they apologize that wasn't enough 120 00:09:02.280 --> 00:09:07.920 So I'm gonna punish them with a review because that's all I can do those are the things that they have control over and 121 00:09:08.280 --> 00:09:14.880 And so we have to go above and beyond and so I'll give you an example recently and so we had a we had a scheduling 122 00:09:14.880 --> 00:09:16.880 Miss half 123 00:09:16.880 --> 00:09:20.040 And we had seven people were gonna fly out to our headquarters and 124 00:09:21.160 --> 00:09:27.240 Basically they came here and there was nothing happening that day because the sales team messed up times and so 125 00:09:27.800 --> 00:09:34.160 It's like and five of these for international think about this you travel across the country or across the world to you get your 126 00:09:34.160 --> 00:09:41.000 Expectations up some people have to apply for visas like big big big like expectations big work big money 127 00:09:41.000 --> 00:09:47.280 All of these things like beforehand right and they show up and like nothing's happening. There was a scheduling 128 00:09:47.280 --> 00:09:54.440 This app right and so what do you do right like that's a big big mess up. That's a big mess up 129 00:09:54.440 --> 00:09:56.440 It's absolutely unacceptable 130 00:09:56.760 --> 00:10:01.560 So here's what you don't do you don't say hey you should have checked the email or hey 131 00:10:01.560 --> 00:10:07.880 We sent some other correspondence that that might have you know conflict it like you don't go into any of that because it doesn't matter 132 00:10:08.080 --> 00:10:11.400 They don't care what matters is that it's always 133 00:10:12.040 --> 00:10:16.920 Immediately your fault and you have to be angry about it than they are and this is the angry boat 134 00:10:16.920 --> 00:10:23.040 The thing is is that even though I preach this it's still hard to do when you're in the moment because no one wants to accept fault 135 00:10:23.040 --> 00:10:27.040 Because fault is associated with all these negative things in our past because in the schooling system 136 00:10:27.040 --> 00:10:30.480 If you say your fault you go to detention like you get punished by saying it's your fault 137 00:10:30.480 --> 00:10:34.240 So you always want to blame hey Timmy is the one who's who turned the music up not me 138 00:10:34.240 --> 00:10:35.200 So Timmy gets punished 139 00:10:35.200 --> 00:10:37.200 But the reality is that in business 140 00:10:37.200 --> 00:10:40.520 It you always wanted to be your fault because if it's your fault, it's under your control 141 00:10:40.520 --> 00:10:42.520 Which means you you have the power to fix it 142 00:10:42.760 --> 00:10:49.160 That's what's key and so as soon as you have that instance you jump in the angry boat as fast as you can 143 00:10:49.160 --> 00:10:54.000 You want to be quicker to the draw getting angry than the other person and a lot of times customers will have one of these 144 00:10:54.240 --> 00:10:58.480 Experiences and they'll shoot out the situation to wait to see how you respond 145 00:10:58.640 --> 00:11:05.040 Because they want to they want you to be upset about this because they are already angry and they're trying to contain themselves 146 00:11:05.240 --> 00:11:10.360 Trying to contain their emotions and what you need to do is be the one who gets emotional for them 147 00:11:10.360 --> 00:11:15.560 Inside note here with the angry boat is one you want to confront ahead on you don't want to push you foot around it 148 00:11:15.560 --> 00:11:18.520 You got to say like this was our mess up and I'm super pissed about it 149 00:11:18.520 --> 00:11:25.440 Second you want to get in fast third validate validate validate you want them to feel seen you want to feel heard you want them to feel 150 00:11:25.440 --> 00:11:32.080 Felt you want them to feel felt you want them to feel like you at you you feel their pain more than they feel their pain 151 00:11:32.440 --> 00:11:37.160 Because here's the here's the reality and this is that this is that this is the underlying highlight point 152 00:11:38.320 --> 00:11:44.480 There is no way that you can minimize someone's pain only they can minimize it 153 00:11:44.920 --> 00:11:54.200 You cannot invalidate away someone's feeling about being wronged the only person you can say you know what it's not a big deal is them 154 00:11:54.200 --> 00:12:01.360 And so the only way for that to happen is for you to be more upset so that they say hey 155 00:12:01.360 --> 00:12:06.280 It's not that big of a deal calm down and then they said it not you 156 00:12:06.560 --> 00:12:10.960 Because if you say hey, it's not that big of a deal calm down. They're gonna be like rip. Yes, it is 157 00:12:10.960 --> 00:12:15.400 You need to validate me and then you're like oh my god. You're right. I should kill myself 158 00:12:15.400 --> 00:12:19.000 They're like whoa don't kill yourself and you're like right and they're like it's not that big of a deal like okay 159 00:12:19.000 --> 00:12:25.360 Fantastic they come back down and I say the I use I use hyperbolic extremes to make a point which is 160 00:12:26.200 --> 00:12:31.480 If you want someone to feel better about something that you did that wronged them 161 00:12:31.760 --> 00:12:37.440 They have to initiate it and the only way they're initiated is if you make it a bigger deal to you than it is to them 162 00:12:37.800 --> 00:12:40.280 That is the ultimate validation is that 163 00:12:40.920 --> 00:12:43.880 Something bad happens and you say that's ridiculous 164 00:12:43.880 --> 00:12:47.120 That's unacceptable. Oh, of course. We're gonna give you your money back 165 00:12:47.120 --> 00:12:50.760 Of course, I'm gonna refund all of your travel expenses which by the way is what we did 166 00:12:50.760 --> 00:12:54.000 We give them the money back give the travel expenses, but that's still not enough 167 00:12:54.320 --> 00:12:58.340 It's not enough because if you travel across the world you're like okay 168 00:12:58.340 --> 00:13:04.120 Well great my flights but like I just lost four days of travel and I had these expectations that were met 169 00:13:04.120 --> 00:13:09.360 And so we're taking the whole that you know the seven people out for three hours 170 00:13:09.360 --> 00:13:15.840 We're gonna go to dinner. We'll talk probably to I'll probably end up doing three hours of personalized consulting for each of these businesses 171 00:13:15.840 --> 00:13:18.120 Which is not something that I would normally do 172 00:13:18.480 --> 00:13:25.400 In an effort to go above and beyond to make up for something that that otherwise shouldn't have happened and the reality is 173 00:13:25.600 --> 00:13:29.160 Is this like let's be let's put our let's put our hats on for a second 174 00:13:29.640 --> 00:13:36.000 Is this my fault Alex's fault was either one who took the call was either one who messed up the scheduling now 175 00:13:36.840 --> 00:13:41.480 But guess who's fault it is it's mine right I pay the people 176 00:13:41.480 --> 00:13:48.280 I'm the the buck stocks with me and so the idea that sometimes I see business owners saying things like well that you know my team 177 00:13:48.760 --> 00:13:50.760 Dude you fucking messed up 178 00:13:51.160 --> 00:13:55.080 Like that's the thing about the entrepreneurship game is like you get you get the upside 179 00:13:55.080 --> 00:14:00.920 But you get the downside you get it both and you've got to be able to be comfortable with that and the thing is just like 180 00:14:01.120 --> 00:14:04.960 You have to accept and I want like this is the thing as soon as I go on my mind is like 181 00:14:04.960 --> 00:14:09.240 I flip the switch or becomes a game of how can I blow these people away? 182 00:14:09.640 --> 00:14:14.760 Right that as soon as I have like a clear and obvious wrong and it happens we mess things up 183 00:14:14.760 --> 00:14:21.960 We're human and humans work for us and humans make mistakes and so when as soon as as soon as that happens 184 00:14:21.960 --> 00:14:26.200 It becomes this game of oh our wise out the wind I'm already losing money on this duh, right? 185 00:14:26.200 --> 00:14:30.320 Like you're gonna give the money back plus extra cost that they incurred plus now 186 00:14:30.320 --> 00:14:36.720 You're still going to incur the cost that you would have normally done to to do deliver whatever it is that you do right but 187 00:14:37.120 --> 00:14:39.120 The thing is is I 188 00:14:39.120 --> 00:14:43.160 Am in a fucking advocate of the Ritz Carlton and Orlando in Javier 189 00:14:43.160 --> 00:14:46.440 I tell everybody when they're like hey, where should I go? I'm like go there go to Javier 190 00:14:46.440 --> 00:14:51.400 He's the fucking man and I tell everybody that and so I'll bet you they have more than made up 191 00:14:52.080 --> 00:14:59.080 For the transgression of the one restaurant experience and him meeting me at the other restaurants and sitting us down and taking 192 00:14:59.080 --> 00:15:03.440 Five minutes before two or three or four other experiences we had while we were there 193 00:15:04.160 --> 00:15:08.200 Those little minutes meant the world's me because I know what kind of business owner 194 00:15:08.200 --> 00:15:14.080 What kind of entrepreneur what kind of operator operates that way? It's somebody who gets it you get the game 195 00:15:14.080 --> 00:15:21.200 Which is that did Javier mess up he is not even he's not even responsible for the restaurant is not even his division 196 00:15:21.840 --> 00:15:25.600 But he did it because he knows that I don't care and he had the power to fix it 197 00:15:25.600 --> 00:15:30.520 So even if it wasn't his fault for the transgression, he had the power to fix it 198 00:15:30.520 --> 00:15:36.240 And so it becomes his responsibility to make it right and so I want to I want to do a quick transition to 199 00:15:37.480 --> 00:15:39.640 Employee stuff around this so 200 00:15:40.560 --> 00:15:45.080 If you were the person who messed up like you're the actual person, of course, it's the entrepreneur 201 00:15:45.080 --> 00:15:46.760 It's it's always our fault for sure 202 00:15:46.760 --> 00:15:50.480 But on some level if you're the person who messed up on the team, let me tell you what not to do 203 00:15:51.040 --> 00:15:53.040 Don't try and skirt along 204 00:15:53.040 --> 00:15:56.480 Don't try and pretend like it's not a big deal when you say to the team 205 00:15:56.480 --> 00:16:00.320 Don't try and minimize me like oh, yeah, I kind of messed up the the dates on on that thing 206 00:16:00.600 --> 00:16:08.520 Don't fucking do that because it's the same thing in reverse because the like the owner your manager your leader the entrepreneur 207 00:16:08.520 --> 00:16:13.000 He's the customer she's the customer in this incident and I'll tell you what I want to see 208 00:16:13.000 --> 00:16:19.800 I want to see you losing your fucking mind over how upset you are at this mess up because the thing is is if you're not upset enough 209 00:16:19.800 --> 00:16:25.240 I'm gonna make you upset and so one of us is gonna make you upset and you want it to be you not me 210 00:16:26.120 --> 00:16:28.400 being really real with you and so 211 00:16:28.880 --> 00:16:34.040 But I'll tell you what I'll tell you what I told the individual. I said listen 212 00:16:36.040 --> 00:16:40.520 I know because I know I know I know the person, you know like obviously these multiple parties blah blah blah 213 00:16:40.520 --> 00:16:43.880 But at some point sometimes the buck and stop assuming I said listen 214 00:16:43.880 --> 00:16:48.960 I know that you're beating yourself up over this and you're beating yourself up over it in silence 215 00:16:49.200 --> 00:16:51.760 I was like but the thing is it's like no one cares 216 00:16:52.280 --> 00:16:56.680 No one will give you credit for beating yourself up in silence. They will give you credit for two things 217 00:16:57.280 --> 00:16:59.920 Making it right and making sure it never happens again 218 00:17:00.400 --> 00:17:05.600 That's it. That's all that matters and so there is there is no more useless 219 00:17:06.520 --> 00:17:09.960 Emotion than feeling sorry for yourself. It changes nothing 220 00:17:11.000 --> 00:17:13.520 Like no one gets better by feeling sorry for themselves 221 00:17:14.240 --> 00:17:18.240 at all and so if you did mess up 222 00:17:19.080 --> 00:17:24.720 Just skip past the guilt part skip past the shame part skip past that and go immediately 223 00:17:25.280 --> 00:17:28.440 Into the what can I do to make it right? What can I do to make it better than right? 224 00:17:28.440 --> 00:17:33.160 Sure you hit your wife sure you said sorry, but now what we got to take out the dinner get her nice necklace 225 00:17:33.160 --> 00:17:38.160 Get her some flowers and then go to fucking anger therapy and make sure that you know like whatever like you you do 226 00:17:38.160 --> 00:17:44.040 all the things to go from tragic to neutral and then you go above neutral to try and make them into a champion 227 00:17:44.040 --> 00:17:46.800 And then you do all the things to make sure it doesn't happen again 228 00:17:47.160 --> 00:17:53.760 That's the point. Hey guys real quick. I'm gonna give you a little Easter egg if you screenshot this episode right now and you tag me on 229 00:17:53.760 --> 00:17:57.720 The Graham I will share it but put the word make it right 230 00:17:57.880 --> 00:18:02.840 All right, so say make it right in the tag and I'll know that you got to this point in the podcast because you are 231 00:18:03.240 --> 00:18:08.440 Hard core and you are always trying to make your business better and trying to do right by other people and yourselves and so 232 00:18:08.880 --> 00:18:14.200 It's also a way that helps me know that I'm doing a good job so that I can make the little voice inside of me 233 00:18:14.240 --> 00:18:17.480 Say that I'm proud of me anyways if you got value from this 234 00:18:17.480 --> 00:18:20.880 It would mean a lot to me and I will do more of it too many businesses 235 00:18:21.280 --> 00:18:26.640 Basically think that a refund is the highest level of what they can do to make it with like a gave him his money back 236 00:18:26.640 --> 00:18:32.480 What else does he want a shit load more that's what that's what they want way more and the thing is is 237 00:18:32.480 --> 00:18:37.800 And I'll tell you this is that if you incur the cost of the refund to plus the additional causes and you lose 238 00:18:38.240 --> 00:18:43.800 Actual money actual resources trying to make it right guess what you try not to do you try not to fuck up 239 00:18:43.800 --> 00:18:51.760 So much in the future because you know the real cost of it isn't just like and like don't even get me started on companies that won't give a review 240 00:18:51.760 --> 00:18:53.760 Like don't don't give a refund on stuff like 241 00:18:54.480 --> 00:19:01.200 If people if if a huge percentage of your customers are asking for refunds fix your shit or stop selling it 242 00:19:01.920 --> 00:19:03.000 like 243 00:19:03.120 --> 00:19:09.760 Either you're selling it wrong and you're setting crazy expectations that no one no one can no one can live up to or you're just delivery sucks 244 00:19:10.080 --> 00:19:15.040 But like if you're getting lots of reef are refund requests and then you you're like well 245 00:19:15.040 --> 00:19:18.000 I can't give the refunds otherwise. I won't be in business. Then maybe you shouldn't be in business 246 00:19:20.880 --> 00:19:22.880 Fix your shit 247 00:19:22.880 --> 00:19:28.760 I get jazzed about this like I came into the team this morning. I said oh, I know I'm gonna talk about because this is hot because we just mess us up 248 00:19:28.800 --> 00:19:30.800 We just had this mess up happen and 249 00:19:31.640 --> 00:19:32.640 like 250 00:19:32.640 --> 00:19:37.360 You have to own it and you have refunds aren't enough refunds or apologies 251 00:19:37.360 --> 00:19:43.240 No one cares about apologies people want more than apology because they will punish you and society believes that too 252 00:19:43.760 --> 00:19:48.880 You don't just say I'm sorry. I killed somebody. I'm sorry. I was in a drunken driver and I killed your kid 253 00:19:48.880 --> 00:19:54.840 I'm sorry is not enough a refund is an apology a refund is sorry and people want more than that 254 00:19:54.840 --> 00:20:00.080 And so you got to get them to neutral and then and here's the cool part. So this is my silver lining for this 255 00:20:01.200 --> 00:20:03.200 Is that if you do 256 00:20:03.200 --> 00:20:08.520 Turn a tragic moment into a series of magic moments afterwards. You can great brand champions 257 00:20:09.640 --> 00:20:14.400 You have a higher potential to take somebody and make them a true believer in what you do 258 00:20:14.800 --> 00:20:19.360 If when you mess up you own it and you make it better than right 259 00:20:19.760 --> 00:20:23.920 Because they're like these guys messed up, but they went so far out of their way 260 00:20:23.920 --> 00:20:27.560 And if anybody's ever had this experience and I hope you have at least one time in your life 261 00:20:27.560 --> 00:20:31.080 Or a business owner went above and beyond they didn't just make it right 262 00:20:31.080 --> 00:20:34.880 They made it better than right and then what happens you become a customer for life 263 00:20:35.680 --> 00:20:38.720 You have a higher potential for being a customer for life and I remember there was a 264 00:20:39.840 --> 00:20:45.600 Equate in some wine who was in the hot sauce business just kind of random and he had a customer so he had 265 00:20:46.600 --> 00:20:50.960 He had sent them a hot sauce kit or something and it didn't have caps 266 00:20:50.960 --> 00:20:57.800 And so he couldn't they couldn't use the hot sauce because it didn't have a cap in the kit and so he sent a handwritten note to them 267 00:20:57.800 --> 00:20:59.800 And he sent extra caps 268 00:20:59.800 --> 00:21:02.960 not just enough, but like more of them just in case or whatever and 269 00:21:04.400 --> 00:21:05.920 They said 270 00:21:05.920 --> 00:21:11.560 They sent him back a note being like wow that was so nice of you like you went above me on whatever and so he actually started 271 00:21:11.960 --> 00:21:12.960 sending 272 00:21:13.120 --> 00:21:16.400 The kits with handwritten notes with an extra cap 273 00:21:16.960 --> 00:21:21.840 Because of that experience it because that person then went change their one star two of five star 274 00:21:22.160 --> 00:21:24.960 Because of the great experience and I don't know if you've ever done this 275 00:21:24.960 --> 00:21:30.480 You've seen this like updated reviews where people say hey, I left this one star the cup the founder reached out to me 276 00:21:30.480 --> 00:21:35.840 He got on the phone with me. He made it right the thing is is that people want to punish you when they feel invalidated 277 00:21:36.480 --> 00:21:38.240 And you can absolutely 278 00:21:38.240 --> 00:21:44.720 You can you can make them feel validated like the reason malpractice so they did a bunch of research like it's both my parents or physicians 279 00:21:46.640 --> 00:21:48.640 There's a ton of ton of research on malpractice 280 00:21:49.440 --> 00:21:54.400 The people who get sued for malpractice are doctors that people hate not people who make the most mistakes 281 00:21:55.520 --> 00:21:58.560 Then interesting so they tell this story of a lady who 282 00:21:59.440 --> 00:22:02.400 Had some sort of thing that happened that was wrong and like a clear lawsuit 283 00:22:03.120 --> 00:22:07.760 And she had had like two or three physicians that she was going for like cancer or something whatever it was 284 00:22:08.480 --> 00:22:10.240 And when the 285 00:22:10.240 --> 00:22:13.040 She hired this malpractice attorney because she wanted to go after this physician 286 00:22:13.440 --> 00:22:19.280 And so after doing more research the lawyer was like hey, it's not this guy who actually technically made the mess up 287 00:22:19.280 --> 00:22:24.240 It's this one your primary carrier your general physician and the lady was like oh Sarah 288 00:22:24.960 --> 00:22:27.200 Oh, I love Sarah. No, it's it's fine 289 00:22:27.680 --> 00:22:29.920 And so it had nothing to do with the transgression 290 00:22:30.240 --> 00:22:32.560 It had to do with the fact that they actually hated the person 291 00:22:33.200 --> 00:22:37.680 And so the thing is is like people people people want to punish you if they don't like you 292 00:22:37.760 --> 00:22:41.760 And you you increase those likelihood that they do like you by going above and beyond 293 00:22:41.840 --> 00:22:44.560 And so here's one tactical thing one more last tactical thing 294 00:22:45.120 --> 00:22:47.120 From my notes that I'll give you 295 00:22:47.360 --> 00:22:51.280 If you deal in a business that has lots of transactions high volume transactions every day 296 00:22:51.920 --> 00:22:56.560 What you want to do is you want to give someone a box of responsibility when if you have a box of decision making power 297 00:22:57.120 --> 00:23:01.360 And so they do this in the hotel industry and this is why I like stealing things from one industry and putting it to another 298 00:23:02.160 --> 00:23:06.720 And so for example if someone wakes up in the middle of the night because they smell smoke right and they come 299 00:23:06.720 --> 00:23:11.040 They call to the front desk and they say hey, I smell smoke. I can't sleep blah blah blah that front desk person 300 00:23:12.000 --> 00:23:14.560 If they have no power to fix it 301 00:23:15.600 --> 00:23:17.200 The customer still holds them responsible 302 00:23:18.080 --> 00:23:21.440 So they basically you give them a losing card. They can't do anything 303 00:23:21.760 --> 00:23:26.000 But if you say these are the things that you have within your responsibility that within your power 304 00:23:26.320 --> 00:23:30.080 You can give someone free free drink credits. You can give someone a free meal 305 00:23:30.560 --> 00:23:35.440 You can give someone a free upgrade. All right, so these are the three things you can do based on the level of the the mess up 306 00:23:35.520 --> 00:23:38.400 right if if someone had to wait 20 minutes for a bell hop 307 00:23:38.800 --> 00:23:43.120 Okay, is that like end of the world probably not here's here's two drinks 308 00:23:43.920 --> 00:23:47.200 Just in case you were waiting or for tonight to make it special before you go out 309 00:23:47.520 --> 00:23:48.000 All right 310 00:23:48.000 --> 00:23:52.880 Now if someone can't sleep because there's smoke and they shouldn't have had smoke in the that's a pretty big mess up 311 00:23:53.120 --> 00:23:58.160 So what do we do? Well, if the front desk person has the power to upgrade them for the next room for the next night 312 00:23:58.960 --> 00:24:02.480 Then you probably refund them for the night before and give them a free upgrade for the next night 313 00:24:02.880 --> 00:24:09.680 But you have to give people you have to give your team the two or three things that they can do and then just say listen 314 00:24:09.920 --> 00:24:13.840 If we're if you're using up more than five of these a month and like we need to fix a process here 315 00:24:14.160 --> 00:24:18.960 But these are things that you can give out as freebies that you bake into the profit margins of the business 316 00:24:19.200 --> 00:24:25.120 So that you know that you can make things right when things do inevitably grow wrong because people are human and humans doing with humans leaves the mistakes 317 00:24:25.360 --> 00:24:27.920 Messing up as a part of business and if 318 00:24:28.480 --> 00:24:32.560 This was not a mess up of an episode for you and you actually did get some value from it 319 00:24:33.120 --> 00:24:37.200 To counter some of those one star views that I have I don't think I have that many but 320 00:24:38.080 --> 00:24:40.080 Even if I did 321 00:24:40.080 --> 00:24:44.240 A five star review if you've ever gotten value from this show especially recently would mean the world to me 322 00:24:44.480 --> 00:24:49.840 And so it encourages more people more business owners to watch and listen and hey 323 00:24:50.000 --> 00:24:53.040 I think this particular message I think if every business acted this way 324 00:24:53.040 --> 00:24:56.560 I think we'd all be happier customers also those businesses would make more money 325 00:24:57.520 --> 00:25:01.440 In the long run and that's the key point in the long run and hopefully you're not in this game to get in and out 326 00:25:01.440 --> 00:25:06.800 But you want to play it for life and that's what the game is about so please leave review enjoy the show and I'll see you soon