Q: I own an upper-end shop in New York and we too are being hit by the economic slowdown. With people looking for bargains, how to we compete without hurting our brand?
Jenna
A : There is no doubt everyone is feeling the pinch of the economic downturn these days and woe to the business that doesn’t react in accordance with the times.
Back at the turn of the 20th century, the automobile was a newfangled contraption. But even so, it was apparent almost immediately that it was also a revolutionary item that was here to stay. That is one reason why, if you Google the term “buggy whip manufacturer,” you end up with zilch.
Why did all of the buggy whip makers go out of business? Because they thought they were in the business of making buggy whips.
Wrong.
Sure, when the automobile supplanted the horse-drawn buggy, the need for buggy whips evaporated, but it wasn’t the car that killed the buggy whip maker, it was the buggy whip maker’s thinking that did it.
Literary essayist George Steiner once put it this way: Had a buggy whip manufacturer in 1910 rethought things and concluded that rather than being in the buggy whip business he was instead in the business of creating ‘transportation starting devices’, he just might have been able to survive the challenge of the new economy and make the transition into a new era.
You gotta go with the times my friends. Unlike our fallen buggy whip business brethren, you must avoid what is known as “marketing myopia.”
Marketing Myopia was an influential business paper written by Theodore Levitt for the Harvard Business Review. The essential idea put forth was that too many businesses think like the old buggy whip makers, with a far too narrow an analysis of what their business is.
The proposition instead was to Think Bigger, to be more expansive, to broaden one’s definition of what business they are in. A broader, more unrestrained criteria offers opportunities that otherwise might have been missed.
Here is a current example: I just read a story that the Whole Foods marketing chain is trying to lure more people into their stores by showing customers that Whole Foods is in fact an economical place to shop. I don’t know about you, but when I think of shopping in Whole Foods “economical” is not one of the adjectives that pops into my mind (and of course that is not all bad, with words like “healthy” and “organic” being more prominent.)
But what people today want, as much as they want healthy, organic, fresh food, is something that does not cost an arm and a leg. The gas pump already has that distinction. So Whole Foods is offering discounts and less expensive brands.
Of course a business like Whole Foods , that has built its business and its brand on matters other than discounts, certainly can’t re-brand themselves as a discount warehouse, nor should they. But it is equally true that neither should they suffer from marketing myopia and conclude that they are a high-end grocer, for good or ill.
Dumb thinking, that.
So all of this is a long story to make an important, succulent point: Go with the flow. If people are looking for discounts, give them some discounts. Listen to your customers. Follow the market. As I am wont to say, if you own a deli and your customers want mustard on the table, put mustard on the tables.
You are not a buggy whip maker, you are not a high-end store owner, you are an entrepreneur, a business person. Your job is to stay in business.
Today’s Tip : Remember to ask for help when trying to figure out which way to go. John Wooden, the legendary basketball coach from my alma mater UCLA puts it this way:
“When I had assistants, I always wanted them never to be afraid to make a suggestion. We don’t know a thing we don’t learn from somebody else in one way or another. If you do agree with their suggestion and use it and it works, be sure that they are the one that gets the credit, not you.”
Need a speaker for your next event?Contact Steve ! He is one of the world’s leading business experts, a popular speaker on the business lecture circuit, and is sure to leave any audience thrilled. A columnist for USA TODAY, lawyer and author, his latest book is the best-sellingSmall Business Bible: Everything You Need to Know to Succeed in Your Small Business . You can sign up today for hisfree newsletter , “Small Business Success Secrets!” at his web site -www.MrAllBiz.com .
If you’re looking to create an advertising campaign for your business, you need to make sure you approach it correctly if you want it to make an impact. This is regardless of what form your advertising will take - online, print, television or radio. After all, you’re probably spending quite a bit on the advertising costs, so you need to make sure you’re getting your money’s worth.
Here’s a list of do’s and don’ts when developing your campaign:
Keeping it Clean
Do use simple ideas: Focus your campaign on one image, slogan, or concept.
Don’t have 4-5 images vying for attention: your ad will likely confuse readers into just turning the page.
Do keep it short: Give them 2-3 benefits and enough interest to make them want to find out more.
Don’t clutter the page with too much information: Again, don’t confuse people with information overload. Save all the extraneous information for your brochure, catalog, or advertorial piece.
Do keep it relevant: Think of your target audience and give them only the offers or benefits relevant to them. You’ll get a much better response rate.
Don’t just throw everything you have out there: If you have several different product lines, you don’t want to talk about all of them in one ad. Relevance is key!
It’s All in the Headline
Do make your headline short and impactful: a website has less than 10 seconds to grab your attention when you land on it. An advertisement has even less, so you need to grab your intended audience from the word "Go!" This means that your headline needs to be snappy, sharp and effective.
Don’t have a long-winded headline: The more your audience has to read, the more bored they’ll become. Get to the point!
Do compare where necessary: consumers want to know why they should buy from you and not your competitors - give them benefits.
Don’t go on too much about your company: you’ll just put your audience off altogether. Offer them something instead - anything that shows what’s in it for them.
Stand Out Visually
Do grab attention with your logo or a graphic: Think about the slogan for clothes designer FCUK - at first glance, you have to look twice to make sure you haven’t misread. This is the kind of attention you want - a catchy slogan and one that stays in your mind after you’ve seen it. If you can afford to, have a professional designer come up with some examples for you. Don’t be too clever: The last thing you want is for your ad to be so clever that your audience has to think too long to get it. Remember, 10 seconds…
If you’ve decided to sell name brand products in your store, you’re in luck. Because of the popularity of certain brands, they are easy to find and buy at wholesale prices. However, there are some very real risks to look out for when trying to source your products.
Important things to know about brand-name product sourcing
1. Fake "factory authorized" distributors : It is a must that you buy your products from distributors that have been authorized by the manufacturer to wholesale their products. Most brand-name manufacturers will not sell directly to you, so you will need to go through a distributor. It is easy to find a factory-authorized distributor for a particular brand-you just call or email the manufacturer and ask for a list of their wholesale distributors. If you search for distributors on the web there are literally thousands of companies who try to fool retailers into thinking they are factory authorized distributors, when in fact they will just take your order (which is significantly marked up in price) and place the order with the real factory authorized distributor.
2. Distributors selling fake brand name products : Companies seem to be popping up all over selling brand name goods that are actually knock-offs with inferior designs and quality. Anything from pocketbooks to clothing to watches are being sold online. You can eliminate being fooled into dealing with these counterfeit merchandisers by asking the real brand-name manufacturer who their factory-authorized distributors are. It’s that simple to avoid, but dozens of companies are still being scammed everyday.
3. Minimum orders : While the fake distributors may let you order in any sized quantity, the real factory-authorized distributors will usually have set minimum orders. However, most will let you mix the order with various products, all counting towards the minimum order quantity or dollar amount.
4. Payment terms : Once you are an established retailer you will probably have no problem getting net 30 terms from the distributor you are working with. However, for your first order you will most likely be required to pay upfront with a credit card or check.
Other ways to source brand-name products
If you are just looking for a recognizable brand, and not the latest, greatest model then buying discounted merchandise on eBay or from a closeout liquidator may be a great option. They may not be a steadily reliable source for the same product every time you buy, but most times you can get a real bargain. For instance, last season’s clothing style from a hip brand, last year’s model of a popular watch, etc. A lot of times when the new styles roll out, the old ones end up with liquidators or on eBay. You will usually be required to buy a certain sized lot, but many times it is much less than a distributor’s minimum order. Be sure to always shop around to make sure you are getting the best deal. Of course, thoroughly researching the company you will be buying from is always a must. With eBay sellers, be sure to read their feedback rating so you know if they are a reliable and trusted company.
In order to maximize your profitability during seasonal changes, specifically with the back-to-school season, you need to remove the guesswork. You need to know exactly how the market is going to behave to make the most money.
Predicting the Future
How can you know when the peak sales are going to drop off? You can’t predict the future can you? Of course we can’t predict the future, but we can learn from our past.
Retailers keep track of what happened previous years to know how to effectively sell this year. Managers order enough calculators not only to get them through the back-to-school sale, but also the first few weeks of school. They know how to plan for this because of what happened last year.
The same is true with eBay. If you could see what happened last year with calculator sales, you could know when sales are going to start to drop-off.
With a market research tool like HammerTap, you can know what happened last year. With information like that, you can in a sense predict the future.
I used HammerTap to research calculator sales last year. I researched calculator sales for four weeks starting on August 23, 2006.
Below are the results by-week. Pay attention to how the Listing Success Rate (LSR) and Average Sales Price (ASP) change during the four weeks of sales.
The Dropping-Off Point
So when do sales drop off? Sales during Week 2, August 31 thru September 6 were the highest in both LSR and ASP. During this week, you can sell the most calculators for the highest price possible.
After September 6, the Average Sales Price drops rapidly. In one week you go from $66.85 to $53.95, a difference of $12.90. This is a huge drop in profit. While sales are steady at 77%, you are not making nearly as much per calculator.
Depending on your cost of the product, September 6 is your drop-off point. Even though sales are still high (that’s your Listing Success Rate) you may not be making enough money on each sale to cover your costs.
What’s your strategy then? Try to sell all of your calculators during Week 2 above to increase both your success rate and selling price. Selling during this week is going to maximize your profits for this product during the back-to-school season.
However, each product is different, and this is just one example. In order to maximize the sales of your products during seasonal and holiday trends like this one, you really have two options: 1) Try and guess when the optimal time to sell is or 2) Use a research tool like HammerTap.
Summer is halfway over and if you haven’t taken a vacation yet, you better get going! As one of our expert contributers, Steve Strauss, highlights below, it’s a must for any entrepreneur.
Q: Steve – I would like to get away with my family this summer, but I just don’t see how I can do it. I own a one-man business and when I don’t work, I don’t get paid. What can I do if I can’t afford to get away?
Tony
A: Amigo, I hate to sound like a cliché, but you can’t afford not to get away.
If you are like most of us, you went into business for yourself because
You wanted more freedom, or
You wanted a better boss or work situation, or
You wanted more creativity at work, or
All of the above
I once worked for a law firm that, I thought originally, was quite generous with their time-off policy: Three paid weeks a year. Woo-hoo! But it was only after I started that I “got” the fine print. I was allowed the time off, sure, but only if I still billed my requisite 90 hours for the time I was gone. I got three weeks of, but only if I worked an extra three weeks later in the year.
Man, I hated that job.
So, if you are the boss now, be a good one. Give yourself a break. Even better, give yourself a long break. You deserve it. And you are not alone, according a recent American Express Open survey, almost 2/3 of all small business owners are going to take a week off this summer.
Here’s how the solopreneur can do it too:
Plan ahead: This can mean many things:
Saving up enough money so you can get away without it being stressful
Telling clients and customers that you will be gone
Making a list of essential things that you normally do that must be done while you are gone, and then
Hiring a temp or virtual assistant: If in fact you cannot get away without closing the office or shop, then consider hiring part-time help, a temp, or a virtual assistant who can man the essential functions while you are gone.
No, they cannot do everything you do, but you just might be surprised how much they can do. The key is proper training, and good communication. Consider having a pow-wow every few days over the phone. In the meantime,
Turn the Blackberry off : It’s a blasphemous thought, I know. But the point of getting away is to get away. Constantly checking emails and making calls not only defeats the purpose, it ticks off people who you are supposed to be relaxing with.
Call and check in a bit, sure, but there is no need to do it constantly. That same AmEx survey found that 81% of small business owners intend to check in with their business either by phone or email while on vacation. (Note:19% will not check in at all!)
Get more done early : Get extra work done before you go. By getting ahead, you make getting away much more doable.
Schedule extra time when you get back: Don’t tell everyone you will be back in the office Tuesday, tell them Thursday. Then, when you get back in Tuesday you can have a few days of uninterrupted time to catch up.
Combine business and pleasure: If getting away from it all still seems too difficult, consider making a business trip a family trip. It will save you money, allow you to still work a bit, but also have some needed R&R.
Have more 3 days weekends: Finally, if a week away is not your thing, for whatever reason, then this is the time of year to have more long weekends. You will rejuvenate your batteries, yet still get work done.
Today’s Tip : If business with your traditional customers is slowing down, then guess what? It may be time to investigate areas and customers that can be more productive and profitable, and begin to target those.
Steven D. Strauss is one of the world’s leading small business experts. His latest book is the Small Business Bible . A lawyer, author , and public speaker, Steve has spoken around the world about entrepreneurship, including at the United Nations, and he has been on CNN, CNBC, MSNBC, The O’Reilly Factor, and many other television and radio shows. If you would like Steve to speak to your group, help your business grow, or if you would like to sign up for his freenewsletter , “Small Business Success Secrets! ” please visit his website – www.MrAllBiz.com .
Having an interesting and wide variety of products in your store is important, but without a creative way to display them, you could be missing out on a ton of sales! Think of your store’s display space as part of product marketing and promotion. You are trying to draw customers into your retail space and get them intrigued about your products. Now, what better way to do this than by creating a warm and cozy atmosphere that is logically laid out and with products creatively and attractively displayed? Once your store’s retail space is being used to its full advantage, there’s no doubt you’ll notice a boost in sales and in repeat customers!
There are several ways to get your store’s space working for you. The first is your store’s actual building or room. Think of what you can do to make your store’s inner shell more inviting. For instance, if the walls are white and your lighting consists solely of florescent bulbs, then think of using some warm-colored paint along with bulbs that are less stark. The less your store looks like a warehouse, the better! And, use the theme of your products to your advantage. If you sell toys , then get whimsical in your decorations - maybe a blue ceiling with painted clouds, big, framed pictures of close-up toy pictures on the walls, etc. Get creative in your surroundings - they are meant to delight your customers!
Next, it’s important to group your products logically and display them together. If you sell both inflatable boats and electric pumps, then they should be displayed near each other - otherwise you could be missing out on an obvious up-sell sale.
Once you have your product groupings figured out, it’s time to display them using tables, shelves, furniture, etc. The key is to get as many of your most intriguing items between waist to eye level. Even the most charming of products will go unnoticed if they’re sitting on a bottom shelf - save that space for additional stock. First, lay out your display furniture (you may want to use paper cut-outs until you get the arrangement figured out) to get just the right flow - making sure that aisles are wide and that the arrangement gives customers a natural walking path through your store. Now it’s time to arrange your products. Newest arrivals should always be in the most eye-catching of spaces - that way repeat customers will see that your store is always changing. The way your products are displayed will depend on the type of store you have. If you sell decorations for the home, you might want your displays to mimic rooms of a house. If you sell children’s products, you may want to have products both in and out of the box, as parents typically like to read all the product information that the manufacturer prints on the retail packaging as well as see and test the product up close.
Another important point to remember is that whether or not you’re continually getting in new merchandise, it’s always good to change things up once in a while. Move products around, change displays, etc. Give customers a reason to keep coming back - changing the inside scenery gives the impression that new products are always coming in and that there’s always something new to see. Some examples to consider:
* Seasonal or holiday-themed displays
* Displays for upcoming special events (i.e. the Super Bowl, the Oscars, or even local events)
* New product lines, brands, or designers
Creativity and attractiveness are the keys when designing your retail displays . If you have an artistic flair, then this is your time to have fun and boost your sales at the same time!
One of the biggest problems online marketers face is grabbing the attention of surfers. The second is building instant trust between the surfer and the website. The latter sounds practically impossible but new technology has once again prevailed and brought us one step closer to the goal.
Perhaps you’ve seen it and perhaps you haven’t. Regardless, it’s making a splash in the online advertising/marketing community. What is it? (drum roll please…)
Moving media.
The principle is to place a "live host" on your website that will greet your customers and personally introduce your site and company. The humanized video makes for a far more personalized feel to your site and establishes a sense of trust worthiness and credibility. Many large companies are jumping on the bandwagon and from everything I’ve heard, people seem to think it’s a pretty cool thing.
Two companies appear to have the market cornered on creating and delivering this service. Rovion and Webouts offer the same things essentially however, Webouts appears to be different in that their video person can enter from any direction on your website while Rovion’s are apparently stationary.
The companies allow you to produce your own creative but also have their own teams that can work with you to produce the desired result. The clips can be up to 30 seconds long and Rovion’s starting price for a small campaign is $2,500.
Check out Rovion and Webouts for examples and more information.
Well hopefully you don’t have one single supplier! If one of your major suppliers does in fact notify you that they are closing their doors, there’s no need to panic. Simply contact your other supplier(s) and speak with them about the possibility of you moving more business their way. Determine if they can handle the new demand and talk about pricing options with them (as they may offer a discount for more business). Also remember to contact the supplier that is going out of business and ask if they have any products that they can still supply you. If they do, you might be able to get a "going out of business" price on the items.
In the event that you have paid for items that have yet to be shipped when the notification of the closing comes, DEFINITELY contact the supplier to figure out if you will be receiving the products you paid for. If not, ask about taking other products up to the equivalent value you’ve already paid. You may have to enter into court proceedings but this of course is highly undesirable as it will likely cost you more to hire a lawyer and pay court fees. Try to work something out directly with the supplier but if this does not work, make sure you consult a lawyer for further action.
The best way to avoid any of this is to pay attention to clues that might indicate the supplier is in trouble. Some of these include:
*Difficulty in reaching the supplier by phone or email.
*Repeated lag in shipping timeliness and lack of product.
*Employees begin to quit and/or ask if your company is hiring.
The best plan is to always have back up suppliers. This will save you a fortune in time and money in the event that one of your major suppliers does indeed go out of business.
The ad was designed to be a part of a viral marketing campaign for Gatorade. The ad was pulled however when Gatorade decided it wanted to pursue a different direction with it’s marketing campaign but somehow the video still leaked out and to Gatorade’s great fortune, they got to see just how successful the campaign might have been.
Granted, Gatorade has millions of dollars it can spend on stunt girls and fancy video editing but no amount of money can buy the phenomenal reach their video has had online. It goes to show that if your video is worth watching, people will watch it and spread it around whether they know what it’s for or not. This is the "word of mouth " marketer’s dream come true. I bet the folks at Gatorade are kicking themselves now for not attaching a bigger logo to the end of the clip!
