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Creating Value the Disney Way with Lee Cockerell

Creating Value the Disney Way with Lee Cockerell – 046

May 19, 2015 by Kirk Bowman Leave a Comment

http://traffic.libsyn.com/artofvalue/046-Creating-Value-the-Disney-Way.mp3

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Lee Cockerell is the former Executive Vice President, Operations of Walt Disney World Resort. He led a team of 40,000 cast members and managed 20 resort hotels, four theme parks, and two water parks. He is the author of three books: Creating Magic, The Customer Rules, and Time Management Magic. He also has a podcast called, Creating Disney Magic with Lee Cockerell, hosted by Jody Maberry.

Talking with Customers

  • What is the most important thing you can share about pricing?
    • Pricing is truly about value.
    • It's not the burger, it's how great is the burger.
    • Quality wins out.
    • What can I add to make me worth more and have the customer consider me an investment, rather than a cost?
    • Lee helps people figure out how to pay for him.
    • Things like the exchange rate can affect the price to the customer.
    • Be flexible with non-profits and exchange rates.
    • If you do the right thing, better things will happen in the future.
    • Do not be greedy.
  • How does Disney decide how to price?
    • Research how customers spend their entertainment dollars.
    • Interview two million customers per year.
    • Give a good experience so they will come back.
    • Movies and ski lift prices are discretionary entertainment spending and is competition to Disney.
    • Limit the number of people in the park per day so that everyone can see multiple attractions.
    • People with iPads are talking to the customers everywhere in the park – food lines, ride lines, airport, hotel check-in.
    • Disney thinks about things like the single moms, children with special needs, and dietary considerations when creating a package.
    • Treat people like individuals to offer huge value.
  • Why did Disney lower its prices during the 2008 recession?
    • People were not going on vacation during that period.
    • Even employed people were scared.
    • For $1200, a family of 4 could come for 4-5 days.
    • Children ate free.
    • The overhead is big, and the parks needed people to keep coming.
    • The margin was affected, but Disney was able to keep its employees and attendance at the same rate.
    • The experience was not affected.

Time Management and Value

  • What advice do you have regarding time management and value?
    • The number one problem most people have is time management.
    • Where you spend your time is how your life will turn out.
    • You should be aware of the top three places you will spend your time every day before your day begins.
    • Taking care of yourself is important as you cannot help others if you are not healthy.
    • Family is next. If you do not have your family, the money does not matter.
    • Business and finance should be the third priority.
    • You can then plan what you want to accomplish for each area.
    • Have a system for your life and be very intentional about it.
    • Raise your expectations – be clearer.
  • What is the most important mistake a business can make with pricing?
    • Businesses do not think about all the value they can add.
    • Many companies under-price their products.
    • The ones who are pricing too high are not adding enough value.
    • Keep getting better every single day.
    • See what your competitors are doing.
    • When someone is doing a great job, customers do not go looking.
    • Buckle down and find out who is in your business and closely related to your business.
    • Ask questions to find the truth:
      • Is the spending discretionary or necessary?
      • Ask your employees what complaints do you hear most often.
      • Ask your customers, “What os one thing we could do better?”
    • If you are a leader or a parent of a teenager, you are going to have to work hard to know the truth.
    • Your customer should be part of your team.
    • The feedback from your customer is more important than the price they pay.

The Customer Rules

  • Can you explain the rule, “Great service follows the law of gravity?”
    • Does the CEO want to have great service?
    • Does the CEO have an environment where everyone matters and they know they matter?
    • It starts at the top and goes downhill like gravity.
    • The CEO/President has to set the example.
  • Can you explain the rule, “Become an expert at creating experts?”
    • In business, creating leaders is the job of an operations director.
    • Find the right people.
    • Train them correctly.
    • To be the expert, be better than everyone else.
    • Experts are in high demand today.
    • Put the responsibility on yourself to keep advancing.
    • Be reliable and have a good attitude and you will succeed.
    • Southwest Airlines is a great example of how this can be successful.
  • Can you explain the rule, “Fish where fishermen ain't?”
    • Do not do what everyone else does.
    • Find ways to do what others are not doing.
    • Amazon and Chick-fil-A are great examples of how this can be successful.
  • Can you explain the rule, “Don't make promises; make guarantees?”
    • Guaranteed, no questions asked; that is better than a promise.
    • Guarantees and reliability matter.
    • If you have strong reliability, your guarantee is not necessary.
    • You gain customers one at a time; you lose them thousands at a time.
    • Empower employees to fix the problem.
    • The Amazon call center has only one rule, “Make the customer happy.”
  • What is one of your best stories about creating value for a customer?
    • Self-publishing gives Lee more flexibility to create value with his latest book.
    • He always wants to make sure he is enough for his customer and family.
    • “Do you considering yourself a teacher?”
    • The people he works with will get more than they expect.

About Lee Cockerell

  • Investor and teacher at Thrive15.com
  • Website: LeeCockerell.com
  • Twitter: @LeeCockerell

Filed Under: Creative, Episodes Tagged With: Options, Positioning, Value conversation

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