The secret is in the 'suki'

MANILA, Philippines - When Benito S. Lim first set down some radios, toasters and electrical supplies for sale in a 16-square-meter stall in 1948, all he wanted was to earn a clean, decent living by making housework less cumbersome for Filipino families.

Today, 60 years later, Lim retraces the steps back to his humble beginnings and explains how he was able to grow his little stall into one of the nation’s most reputable appliance chains know as Automatic Centre.

“We wouldn’t be here if weren’t for our loyal customers, ang mga ‘suki’ namin,” Lim said. “This is a tried and tested business philosophy that we see in palengkes, supermarkets and department stores, and even the service industry. If you take care of those who already patronize your business, they will come back to you next time they need something. We cannot overemphasize that your satisfied customers are your best advertisement.”

Automatic Centre is celebrating its 60th year of pioneering in appliance retailing this year. Revered as the Father of Appliance Retailing, Lim is credited for starting and growing the appliance industry, and for uplifting the standard of living of Filipinos by introducing modern consumer electronics and household appliances when no one else dared to.

Recently, he was honored by the Philippine Retail Association (PRA) and the Department of Trade and Industry with a Diamond Award for his valuable contributions to the industry.

Familiarity breeds trust

Familiarity breeds contempt, as the old saying goes, but Lim’s experience has taught him otherwise.

“Familiarity breeds trust,” he stressed. “If you are truly familiar about your customers and their families who will use your products, that philosophy will dictate the direction of your business.”

Naturally, the Automatic Centre patriarch passes on this winning formula to the next generation Lims, particularly to son, Samie Lim who is now president of the company, as well as his children and grandchildren who are now in charge of some aspects of the business.

Samie Lim, for one, grew up seeing his father at his happiest when on the sales floor interacting with customers from all walks of life. “My dad imparted to us the value of getting continuous feedback from customers. I, in turn, impart the same lessons – and more - to the young ones. We want the trust that we build for the last 60 years to endure over the next 60 years and beyond.”

Products come and go, relationships last

The appliance and electronics industry has changed drastically over the years. Manufacturers are now able to get newer, high-tech models on the shelves quicker than ever. Also, research and development, as well as economies of scale, have made home appliances more affordable for a broader market.

“Every huge leap, every innovation Automatic Centre introduced to the industry was made possible by building on the small steps, the one-on-one relationships we built with our suppliers and customers,” Lim added.

In the 60’s, Lim banked on his good relationships with major appliance distributors to convince them to display their products side-by-side in his Makati store. This saved customers the trouble of having to visit several shops to compare prices vis-à-vis product specifications. Automatic Centre became a one-stop shop.

Lim built on the success of his Makati outlet and his growing reputation among suppliers and customers to open sprawling appliance warehouse showcases in Araneta Center in Cubao. He enticed customers and bulk-buyers to patronize these mega-outlets with the promise: “Guaranteed Lowest Price or Your Money Back.”

The value of a good name

Some appliances cost hundreds of pesos; others cost thousands. But the value of a good name is priceless.

“It’s often said that the first rule in retailing is to know your customer,” Lim said. “But before you can be true to someone else, you have to be true to yourself. Are you working as hard as you ought to be? Are you treating your customers with the same integrity that you would expect from the stores you patronize?”

Because of the sheer length of time that he has been in business, Lim has witnessed cycles of economic booms and economic busts. Through all the good times and bad, he has relied on the basic values of honesty and hard work.

“I’ve always believed that closing a sale, no matter how large or small the sum of money involved, is never more important than keeping my good name,” he concluded.