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Before I franchise my company, I ran one of our mobile service units with a team of workers, in the automotive sector. We often got tips, and I quickly realized that I needed to share those tips with the rest of the crew. As the crew leader, truck manager, and sole proprietor, generally the customer would give me the tip, and it was very easy for me to put in my pocket and forget about it. However, those tips should be distributed amongst the rest of the crew.

After I franchised my company, I made sure that I put this into the confidential operations manual. You see, I wanted the franchisees to realize the power of those tips from the customers, because it increased customer service, and made employees care more. When the employees know they are getting the tips they are more likely to give better service, and be more polite to the customer. In doing so this also causes more referrals and increased business from each and every customer.

If you go into a Starbucks you’ll notice there is a tip jar, and when someone puts money in the tip jar that money is distributed amongst all the employees at Starbucks, based on the numbers of hours they’d worked. This is the fair way to do it, and if each employee knows that they make more money each week, even if it’s only $5-$10 in additional tips, they are liable to give better service to each of us customers in line when we are ordering our Frappachinos. Do you see that point?

What I find very interesting, as now that I retired I do a little franchise consulting, and I often produce franchise manuals for franchising companies, is that many of the franchisors aren’t thinking here, yet so many of them run a mobile service businesses, or companies that survive and thrive other customer service. And when they don’t give good customer service, those franchised outlets fail. I’ve always wondered how come franchisors that develop their perfect business model don’t have such policies.

Want to increase the value of your business? When times get tough, as they certainly were in mid 2011, no business can afford to lose even a single customer. Smart business owners know this, and some are willing to take extraordinary action to care for and retain a customer. And I do mean extraordinary action. Like the following.

Recently I heard a story about the extraordinary action that Sir Richard Branson took. First a caveat. I heard this story second hand, and have been unsuccessful in contacting someone in the company capable of confirming or denying it. But the person I heard it from is either the brother or brother-in-law of the subject of this story.

It all happened around Christmas time of 2010. The subject of the story lives in the UK, and frequently flies to New York. His airline of choice has been Virgin. If you think back to the events leading up to Christmas of 2010, you will probably remember that gigantic snowstorms swept over the UK and the European Continent. Planes were grounded everywhere because airports were effectively closed to traffic, due to impassable runways.

The subject was in New York awaiting his return to the UK. Not only was he in New York, but was also at the airport at Virgin’s check in area. Because there was nowhere to land, planes could not even leave New York. Passengers were stranded at the airport, and like the old saying, “nobody knew nuthin”.

Frustrated passengers were looking for some information on when their flights would leave. But nothing was available. Virgin’s passengers knew no more than any others awaiting departure. The whole place became a zoo.