Cash & Loans Advice Blog

Consistency is important in every loan

Consistency is an important task attribute that contributes to the development of trust. We come to depend on a certain level of production from our partners and base our expectations on the consistent attainment of that level.When the level begins to waver, we lose confidence in our partners’ ability to deliver, undermining the trust we have in their capability.

Consistency is also a relationship issue.We may know, for example, that when bad news is delivered, John always stays calm.However, lately he has “popped his cork” every time he hears of a production snag. We can no longer depend on John’s behavior and tend not to trust him to handle bad news—and perhaps stop bringing it.

Whether it is capital investment, expertise, or technology or process issues, both partners want to feel that the other is contributing equal value to the alliance. When one partner feels the other is not contributing at the same level he is, conflict may break out when he confronts the other about the lack of contribution, or he may stopcontributing to “get even.” Using your Partnering Intelligence is important when addressing the level of contribution. Failure to do this can result in a lack of trust in the partnership.

It is important for both partners to understand up front what each partner will contribute during the Explore Stage of Partnership Development. In reality, partners do not usually maintain the same level of contribution. Some partners may contribute in ways that are not recognized and valued by others. These contributions must be discussed in advance and acknowledged by all that they bring value to the alliance—otherwise, resentment and mistrust will surely develop.

The advantage of credit brands

Before considering decisions that can build and strengthen brands, it is helpful to understand what advantages they offer. The value of a brand lies in the understanding or trust of customers. This leads to the first advantage: pricing. A successful and established brand can command a price premium that exceeds any extra cost in terms of production and marketing, derived from the element of trust that a brand provides.

Research in the UK has shown that in many cases consumers would be prepared to pay 30% more for a new product from a trusted brand than for an unnamed one. This is particularly true in the highly competitive food industry.

Distribution advantages are another benefit, as an established brand can ensure that manufacturers get the best distributors in terms of quantity and quality. This is because the distributors are more likely to be receptive to a new product from an established brand, in much the same way (and for similar reasons) as their consumers. This is particularly useful for new products. Again, this is because of the element of trust and reliability associated with brands.

The concept of brand identity or image is valuable as it reinforces the product’s appeal. For example, the Rolls-Royce brand has a stately identity and is associated with the values of craftsmanship, tradition and prestige. Volvo has a different brand identity and set of associated values, including safety, functionality and family-orientation. These identities reinforce their appeal to their particular market segments.

When markets decline, however, brand identity can become a handicap, linking the product to an unfashionable past.