Against his company's wishes, Kroc would tell restaurant owners to stock up on paper cups before a price increase. This prioritized the long-term relationship and built immense trust, proving he was on their side. It's a powerful lesson in choosing relationships over short-term transactional wins.
To embody their 'do the right thing' culture, Arista proactively replaced a customer's potentially faulty hardware at its own expense. This decision, which could have led to bankruptcy, demonstrated a commitment to long-term trust over short-term financial stability and became a defining cultural moment.
Brands should be transparent about price increases due to external factors like tariffs. Unlike airlines that permanently added fees, businesses that remove surcharges when costs decrease build long-term trust and avoid commoditization.
Viewing customer relationships through a strict Return on Investment (ROI) lens creates a toxic, transactional dynamic. A "Desire to Invest" (DTI) model prioritizes building genuine, long-term connections and empathy, much like a healthy human relationship, rather than tracking a ledger of exchanges.
In the long game of private equity, forgoing a short-term advantage when in a position of strength builds goodwill that will be reciprocated when you are in a weaker position. Exploiting power creates lasting mistrust that ultimately damages long-term success in a relationship-driven industry.
To overcome skepticism about takeout cups, Kroc didn't argue. He offered a free supply of cups and lids to one store for a month. This zero-risk trial allowed the concept to prove itself, turning a reluctant manager into an enthusiastic advocate and creating a self-expanding account.
In a shift towards predictive CX, brands are proactively saving customers money, even if it hurts immediate revenue. This radical transparency builds immense long-term trust and loyalty.
Consistently investing in your team on a personal level builds a reservoir of trust and goodwill called "emotional equity." This makes them more receptive to difficult changes like price increases or new strategies, as they believe you have their best interests at heart.
In recurring business relationships, winning every last penny is a short-sighted victory. Intentionally allowing the other party to feel they received good value builds goodwill and a positive reputation, leading to better and more frequent opportunities in the future. It inoculates you against being price-gouged upfront.
Ken Langone's negotiation principle is to let the other party feel they won more than they deserved. This isn't about getting less but about prioritizing long-term trust over maximizing a single transaction. This approach builds a reputation that attracts future opportunities and creates loyal partners.
Facing significant tariff costs, Elf chose radical transparency over a surprise price increase. They announced the change three months in advance on social media, explaining the external pressures. This honest approach was met with positive community feedback and preserved customer loyalty.