Retail Observer

RETAILOBSERVER.COM AUGUST 2021 64 J ohn F. Kennedy once observed that the word "crisis" in Chinese is composed of two characters, one representing "danger," the other "opportunity." He may not have been entirely correct about the language, but the sentiment is true: a crisis presents us with a choice. And this is particularly true today. The pandemic has upended nearly every aspect of our lives, from the personal to the way we do business. It has changed the way companies interact with their customers, how customers choose and purchase products and services, and how supply chains deliver them. These changes are prevalent throughout the world and in our industry – and the changes that strike close to home are even more impactful. During the pandemic our industry was considered "essential" because our leaders understood that people who were quarantined would need their refrigerators, ranges, washers and dryers. Those of us who decided to continue to service our customers had to make changes in our procedures and protocols and address our customers' concerns about the skill of our techs and the safety of a service call. All of this required that we engage in critical thinking. So what is critical thinking? It's a disciplined process of conceptualizing, applying, analyzing, and evaluating information gathered from or generated by observation, experience, reflection, reasoning, or communication as a guide to action. Quite a mouthful! That said, it's time for us all to engage in some critical thinking. Why? Because the way we did business during the last 18 months is going to change again. It already has. New appliances are at a premium, with many manufacturers reducing the number of models they are producing. Delivery of new appliances to the buying groups and onward to the dealers has been hampered by a lack of labor. The wholesale price of new units has risen yet again, for the third time this year. And while the shortage of new appliances creates a heyday for the servicer, the lack of available parts slows the completed call. None of these changes were foreseen, but they're happening now, and that's why we must act now, as business owners, and take the time to consider the impact the changes are having and will continue to have on our businesses. Now is the time for critical thinking, and the best approach is to do a SWOT analysis. SWOT is a strategic planning technique used to help a person or organization identify Strengths, Weaknesses, Opportunities, and Threats related to their business. When doing your SWOT analysis, be sure to include questions like the following: • If my supply of parts becomes low, how will my business function? • Should I create new relationships that will give me better options? • As my costs continue to rise for fuel, insurance, parts, rent, etc., will I need to raise my prices? • How will I pay the increased wages that are sure to be requested by my employees? • Attrition in business is common, but with the labor shortage, how will I find new employees, and what will I have to sacrifice to be able to afford them? • Do I have new opportunities at my fingertips? • Will I face new threats around the corner that I'm overlooking? If you take your time and ask the questions, the answers will be apparent and your SWOT analysis will become an invaluable tool for you now and in the future. CRITICAL THINKING AND WHY YOU SHOULD APPLY IT – NOW! S E R V I C E D E P A R T M E N T RO Ralph Wolff, Industry Relations, PSA Certified Service Center – www.certifiedservicecenter.org

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