Blog 197 - Credibility - hard to build - east to lose - just ask Gerald Ratner

Credibility, hard to build, easy to lose…

Actions can be far more powerful than words when building credibility.

Like Otis cutting the rope and letting the elevator drop from a great height… knowing that his elevator safety brake would work… even more impressive when you know he was standing in the elevator at the time!

As the incisive business leader expert Robin S Sharma states: ‘Talk is cheap. Actions speak’.

And when you focus on building your credibility through actions directly relevant to your ideal or preferred customers, you’ll build trust and build sales too.

It takes time to build credibility – time, money and proof that your products and services are better than all the rest…

But beware… it’s easy to lose, less and less credibility will undermine the success of your business…

Gerald Ratner is living proof of credibility gone bad! And living proof that credibility matters!

It took Ratner just 1 minute and 36 seconds to lose £500 million.

In 1991 during a speech, Ratner openly discredited his products. The former chief executive of the British jewellery company Ratner’s Group commented:

“We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, "How can you sell this for such a low price?", I say, “because it's total crap”.

He then added that a set of Ratner’s earrings was "cheaper than a Marks and Spencer’s prawn sandwich but probably wouldn't last as long."

Gerald Ratner proved undeniably that you should never undermine a product you are trying to sell. If you don’t believe in it, how can you expect the customer to believe in it and therefore to buy it?

Ratner clearly shows us what to avoid doing over lunch unless you want to bring devastation to your business. He was being flippant – he did not take credibility seriously and paid the price!

Click here to learn how to make credibility the cornerstone of your business success…

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