Recession? Not for Everyone!

26 February 2009 Categories: Competitive Advantage, Economy

I had the opportunity to talk with John Wells, General Manager for the past seven years of Taylor Flooring in Halifax, Nova Scotia. Taylor Flooring was awarded Mohawk Color Center Dealer of the year at the Mohawk Color Center Convention February 7, 2009. Taylor Flooring consists of four stores and has been in business for 16 years.

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John Wells is in charge of hiring, training and ongoing coaching for his salespeople. The first thing you notice about John is his energy and focus. He knows what to do, how to do it and how to get it done. He talks about how important all employees are to the company and his connection to his salespeople. John is filled with passion about the business, the customers and the employees.  He talks about coaching as being an important part of his ongoing training program.  From my experience, it is rare for businesses to focus on coaching; but with the right coaches, people are able to make immediate and long lasting changes.

I asked John about the recession and what it means to their company. His reply was quite interesting. He said “in the United States, it’s real, in Canada there is more of a misperception about what’s going on. The news media just scares everyone so we become petrified.”

John’s solution: stop listening and stop focusing on the bad news. If 32% of homes are in foreclosure, John looks at it as an opportunity.  According to John, these homes will have to get sold and there’s his opportunity to go in and update the flooring in them. As we all know, it’s the half-full / half-empty attitude.Taylor Flooring works at using financing for flooring to help customers sell their homes.  The trick is to apply for the credit so it doesn’t get in the way of the customers other loans, and to time the closing of the loan so it coincides with the sale of the house.  Taylor aggressively seeks realtor partners by providing sliding scale commissions to realtors that offer good client referrals. The larger the flooring sale, the larger the commission.

The key to staying cool while the rest of the world is talking doom and gloom? According to John:

  • Don’t panic. Leave that for your competitors. If you panic, it will send shock waves through your sales staff and make it difficult for them to concentrate on doing their best. (Interesting that John should make this statement. On February 14, one of the writers from the Wall Street Journal made the comment that it is essential that our President tell us the truth — but to not rub our noses in it. Everyone needs to know that there is hope, no matter what’s going on.)
  • Focus on what works well and do it over and over again. Your team should be on auto-pilot for survival skills. Cut unnecessary overhead and focus on what brings in business and more profitable customers. This is the time to dump the unprofitable ones and to give more to those that are supporting your business.
  • Have 'pit bull' persistence in follow through to close deals. Hold on to what works and don’t let go.

“Retaining a leadership position requires internal positioning," John adds.  "You are constantly improving the processes.”

These processes encompass the following:

  • Having systems in place that keep the wheels turning. Everyone needs to know what to do and how to do it, consistently. All the pieces must fit together.
  • The leaders must have positive attitudes and initiate the changes they want to see if they are to create believers. Once people believe, positive things will happen.
  • Proper behavior must be identified and monitored. This includes professional presentations, keeping the store looking great and looking professional. Everyone knows what’s required to promote, differentiate and support the brand.

As John says, “it’s all about promoting great relationships with your customers and your employees and living the core values.” 

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Customer Service is Alive and Well, Just Not Everywhere

23 February 2009 Categories: Blog

Customer-service
You would think with business as challenging as it is that people would be trying to hold on to their customers for dear life. I keep reading and keep writing about how important referral business is and blah, blah… but things don’t look so good to me. 

Taxco Sterling is a kiosk in the airport that sells sterling silver jewelry. Nice sterling silver, literally hundreds of pieces of sterling silver. Squash blossom necklaces that go for $1000 and other very nice stuff. The other day I am in the Dulles Airport looking for a birthday present and stop at Taxco. As I’m looking through the jewelry I find I can’t read the prices. Why? Because the numbers are worn. Now people in the airport are in a hurry, don’t have much time and don’t have time for this. Especially when the one woman behind the counter has three customers. I don’t want to build a long term relationship with her — I just want to buy a pair of earrings! And by the way, buy one at the regular price and the other is ½ off. The only problem is I have to keep interrupting the other customers to ask the sales clerk for the prices. I point out that I can’t read the prices and it’s a problem and she not only agrees but I’m not the first to tell her! Do they have too much business or am I supposed to be a psychic? 

Tequileria is one of my favorite airport eateries. I like the mango salad with tomatillos tart and spicy. I like it so much that I sometimes I buy another one to go. So I am in the Baltimore airport and I tell the server how much I love the salad. In fact I love it so much I fly through Baltimore just so I can have the salad and fly Southwest. She looks straight at me and says, we were thinking of taking it off the menu because no one likes it, and none of the staff likes it! Hey, nothing like making the customer feel good. 

So my next customer story takes me to the Gaylord Hotel at the Mohawk Color Center Convention. Unlike the other Gaylord Hotels, this one should provide a guide dog when you check in so you can find your way around. I had two missed wake up calls and on the last day there were no shuttles to the airport — even though I had booked it the day before. So Sunday I wander over to the concierge for my trip to the airport and she says, sorry, you don’t have a ride. Of course I don’t! It goes along with the missed wake up calls. The concierge says don’t worry, I will get you the Super Shuttle and you will be on your way at 10. At 10 a.m. there is a suited man in the lobby carrying a sign with my name on it and says I am here to pick you up from Super Shuttle; I notice it is a limo and not my favorite electric blue van. I get in and ask the driver what I am doing in the car and he says we’re part of Super Shuttle and I was told to pick you up. I ask him how much and he says $130.00 one way. I start telling him I can’t pay $130.00 and he says it’s charged to the hotel and I say "is it charged to my room?" I call the hotel and the concierge says it’s our gift to you. We screwed up three times and we want to make it right, I wanted to surprise you that’s why I didn’t tell you. Nice!

So what does this all mean to you? 

  • Pay attention to your customers. If she says not having prices on the merchandise is a pain, listen. In fact, pay her the courtesy of writing it down. If the changes make sense, change it. 
  • Nobody needs your negative opinion. The federal government has more than enough bad press and negative ideas. Unless our product ignites and bursts into flames after you purchase it keep your opinions to yourself. “Hey it ignites, get rid of it.” Most people like being accepted for their purchases. 
  • Empower your customer to have their own stimulus packages. The concierge has her own bailout and so she should. The people at the Southwest counter never cease to amaze me. I noticed that Southwest was now flying to Minneapolis—Northwest Country. I remarked how cold it was there to which the clerk replied, "wherever our customers go, we go. We love them!" When was the last time your employee said that about you—when you weren’t around?  
  • Let your employees be creative. Drummer/chef Jeff Neal at Opryland is sitting in the lobby playing the pots, pans and silverware! I ask him why are you doing it and he says, because they let us.
    If you trust them, let them be. If you don’t, find someone else that you do trust! 
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Want to Do More Business? Consider Generation “G”

19 February 2009 Categories: Entrepreneurs

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I came across a great article recently talking about the rise of Generation "G". They are the under-40s who belong to the video game generation. To quote Trendwatching:

Most people in this demographic grew up with games, and many of them still play now. They are familiar with gaming conventions relating to movement, exploration, cooperation, competition, and communication. Additionally, interaction with video games from an early age has created a foundation of familiarity and interest in computing technologies. 

So what sets this generation apart? The belief — or rather the hope — that this generation will change the era of greed that we've experienced over the last couple decades into that of generosity. To get a better sense of the background of this movement, I encourage you to read the article here.

Another great site that epitomizes the new focus on generosity is kiva.org. This is a site that's been getting more and more attention lately where anyone in the world can become — in a nutshell — a venture capitalist. How is it done? Someone with just $25 can help underwrite a business venture for someone in another country — typically a very poor country where $25 is worth more like $500. Kiva.org allows for regular people to contribute to businesses — usually single entrepreneurs selling flowers, bread, candy, etc. — to help them establish themselves further. You can track how that entrepreneur is doing and according to the site, 95% of the entrepreneurs pay their investors back. Investors have the option of donating the money as a gift as well. 

I think this venture is fantastic and shows what forms generosity — and capitalism — can take. Do you have any ideas as well or experiences about novel ways of giving or helping others? Drop me a line in the comments section!
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Want to Feel Better? Do Something for Someone!

16 February 2009 Categories: Blog

Giving
I read this interesting article in Time magazine about happiness and random acts of kindness, and it started me thinking. I also got an email from “one of you” who is very involved in her mother-in-law's life and I could tell that she was happy she could do something that had meaning.

Challenging times see people craving care, empathy, sympathy and generosity. Now, with a full-blown recession having set in, expect to hear even more about caring, as that’s what consumers and citizens will demand from governments and organizations: someone to take care of their jobs, their savings, their fellow citizens. This need becomes extra poignant in societies where individualism is the new religion, and thus every person, young and old, rich and poor, has been told by society that he or she matters as an individual.

According to Time, simple things like holding a door open for someone at the bank, giving someone directions if they look lost or making a point to compliment three people on your way to work mean alot. How about complimenting people that you work with or who work for you? Small or big, directed at friends or strangers, random acts of kindness make the person performing the kind act happier when they're grouped together, says Sonja Lyubomirsky, an experimental psychologist at UC Riverside. 

Doing a considerate thing for another person five times in one day made the doer happier than if they had spread out those five acts over one week. Lyubomirsky explains that because we all perform acts of kindness naturally, it seems to please us more when we're more conscious of it. There are social rewards, too, when people respond positively. 

We all remember last month when a US Air jet had an emergency landing in the Hudson River. No one was killed and the pilot became an instant hero. So, where did the story go? Where are all the stories of the text messages to families and stories about what people were really thinking? Where's the reporting of all the kindness that took place during that event? When things are good they seem to just disappear; if everyone was killed we would be at it forever. We should make a bigger deal about what happened, I’m sure that people’s lives were changed because of it but it seems to have all disappeared.

Why? Because good news really doesn’t sell! Period.
Everyday brings us more bad news about the economy and who’s losing their job. The food pantry across the street in the church can barely make it through the week because of the increase in feed requests. So where is the silver lining? It sure doesn’t look like the silver lining is “out there.” The silver lining will have to be what we create.

So what I suggest is, keep your spirits up! Find something to celebrate every day; maybe it’s the fact you have a job, you have some money in the bank, your family, friends, or your health.
Hug all the people in your life that matter. Go to your Facebook page and tell everyone there you love them. I don’t know why but somehow it’s comforting to see all those people who want to be my friend. It reminds me of school when you were looking for friends, but it’s cute, I like it.

Make something happen. Life is all about coincidences, the more places you show up the more likely you will make a coincidence. You see, something has to happen if you are to have a coincidence. A coincidence is an exchange. People who say “nothing happened today” don’t get the coincidence thing. Look around, what can you create today that might make it better?
Give something away! Yes, I said give it away — don’t buy anything more! I can’t fit another thing in my closet, how about you? Give something to someone who needs it, anything, it will make you feel better. Speaking of the food pantry, I have been going on a weekly basis and delivering the food to people who are too embarrassed to ask for it. I've developed quite an interesting way of giving the food away. Now I just say "you wouldn’t believe how many extra cans of apple juice I bought by mistake—as well as tuna fish." And that seems to make it easier for people to accept.

Do something for someone, anything. Take their laundry to the Laundromat, offer to go shopping for them or baby sit. I was at my friend’s restaurant the other day and the waitress didn’t show, so I helped take a few orders and clean a few tables.
My personal favorite way to help out is walking my friend’s dog, Jules. He is a love and I am about 9th on the list if his owner loses her mind and has to give him up. But I love when he visits and goes to sleep in my bed while I’m working.

Giving is the new getting. In fact, there's a lot of talk about this new Generation G phenomenon. Have you heard of it? I'll write about it next.

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13 February 2009 Categories: Blog


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Meet Your Goals for Your Business and Your Life

12 February 2009 Categories: Blog

Weight_loss_forum
I was thinking about Oprah Winfrey lately and her weight problem (of all things). Everyone I know at one time or another wants to lose weight, including Oprah. The only thing is, Oprah loses her weight on television and loses it often. I was somewhat disgusted when I heard her say she was going to put a photo of her big butt (her words) on the cover of her magazine so she could talk about her weight gain of 40 pounds. 

I don’t mean to be unkind, but I feel like I’ve been duped. Maybe I am self-centered but I don’t want to know how she put on the weight, I would like to know why she doesn’t want to keep her weight off. The basic premise is that we make our own decisions and our decisions are based on what we desire—every minute of the day. I think most of you would agree that eating has a lot of perks; food tastes good, it’s comforting and we get to spend time with friends. Satiation is another good reason to overeat — like excessive shopping and buying, food fills us up.
Overeating can also become a habit, like drinking or smoking — we get used to doing it. Okay so how much we eat has little to do with really being hungry.
I mean I admire Oprah, she’s the richest women in the world so I’m going to assume she’s smart. Well, of course she’s smart, but when I hear her say we’re going to spend the next month analyzing why she gained 40 pounds, I get disgusted. I am more interested in why being overweight is better than not being overweight.
Ms O has a personal trainer, a personal chef and personal everything else but she can’t keep the weight off. What about the rest of us who just stop eating because we prefer to be thin or when our doctor says, "you better lose that weight."

I talk to people all the time who decide it’s better to be thin than fat and they pass on the dessert or the second deep fried egg roll. Like anything else, it takes will power, lots of it, a desire to be healthier and a willingness to keep a promise to yourself. In order to do these things you must matter—matter to yourself. You must want the desired outcome. Maybe the whole conversation is about the mileage Oprah gets talking about the losing and gaining of weight. Maybe it’s not really important, it’s just a good conversation; reminds me of movie stars who go in and out of rehab or from one relationship to the other; it creates a stir and you’re back on top — or at least in the news.

I would be more interested in how she made all her money as opposed to her weight gain or loss.

If it’s about meeting goals and getting what you want, I have some suggestions for Oprah and anyone else. Oh, and I know it's February but it’s never too late to start your New Year’s resolutions!

  • Decide that you are important. If you matter you will keep promises that you make. Lots of people will do anything for anyone but when it comes to themselves they find reasons why their goals aren’t important. 
  • Make your goals personal, make it your own goals. Don’t do it because it’s important to your wife or someone else. Do it because you matter and because you want the end result. 
  • Write your goals down. Put them somewhere you can see them. Look at them every day. Say your goals out loud to yourself and listen to yourself. Record your goals and play them back to yourself. 
  • The goals should be measurable. Don’t say you want to "sell more" or "lose weight." The only way you will know if you meet your goals is if you've measured them. It can be pounds lost, sales made, customers waited on. If you can see it and count it you can measure it. If you can measure it you will know if it happens. 
  • Know where you are starting and where you want to end. If you weigh 180, at least you know where you’re starting. If you want to sell a million dollars it's important to know where you are starting.
  • Set a time frame for achieving your goal. When you set a time frame it gives you momentum. Saying you will have it done when you have it done isn’t terribly goal-oriented.
  • Reward yourself for small wins. If your goal is 50 pounds, be good to yourself for every 5 pounds you drop. This doesn’t mean a trip to Starbucks or Dunkin’ Donuts. You’re trying to develop new habits; if you don’t you will go back to your old weight. 
  • If you are working out, do your thing at the same time every day so it becomes a habit. Don’t think about it– just do it. 
  • Watch out for self sabotage. Giving yourself "a break" is just an excuse. Don’t give in to the old "I'm tired" or "this doesn’t makes sense" or "I don’t have time" complaints. Keep track of your excuses. 
  • Get a buddy with the same goal. This is why Weight Watchers works, people with the same goals giving support to each other. 
Okay Oprah let’s just get serious, and let’s decide what has more value: leaving the weight off, on, or the actual process of talking about it. Because if you want it off, you just need to head for the treadmill.
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Get Smart, Be Different, and Try New Things

09 February 2009 Categories: Competitive Advantage

Anthropologie
With stores going out of business right and left, it’s great to see one that isn’t: Anthropologie

As a matter of fact, it's growing!

If you want to make it, you have to be different than your competitors. Being different can mean offering different things or by targeting a specific audience, finding out their likes and dislikes and catering to them. Unfortunately, many small businesses don’t roll that way. They decide on a product because they like it, go into their parent’s business or buy an existing business and suddenly they’re in business! Being in business is different than staying in business though. 

Which brings me back to Anthropologie. It was founded in 1992 by a small group of people with a love for making things that inspire the imagination.  Quite clearly, these intrepid entrepreneurs have traveled the world and broken new ground with their catalog and Web designs. If you can believe it, they also refer to their customers as "soulmates!" Target, meanwhile, refers to their customers as “guests,” which is what a number of other stores have been doing of late. But soulmate? That's entirely different. It  implies a level of intimacy that I think is a little too "out there” for many businesses. It doesn’t matter what we think though, because it works for them.   

Anthropologie caters to the upscale customer and is located in Beverly Hills, Santa Monica, Atlanta's Buckhead as well as New York City. It’s obvious when you take a tour of the store it’s for the customer who doesn’t want to wear the same stuff as anyone else, or who has a home like everyone else. The stuff is always changing and focuses on the 30-40+ demographic that has money and taste.

According to Wade McDevitt, a rep for the chain, the store's customers "want to own something in their home that no one else would have and that would be a conversation piece. They're aware of style and buy what's perceived as the latest fashion." 

The store's buyers travel the world looking for unique, one-of-a kind stuff. Products range from a $7.00 bar of luxury soap to a luxurious Breton armoire for $12,000! 

Okay, so what does it mean to us? First, it’s hopeful! It’s great to see a retailer moving forward, staying in business and knowing who they are.
Start brainstorming, there are no right or wrong rules. Bad times bring strange bedfellows, I think that was my mom’s line but she was right. One never knows what pairs will work and they used to say the truth was stranger than fiction. 

Don’t try to be all things to all people; there just aren’t enough people to go around. You’re better off downsizing and making money than trying to stay in business until the customers start running away along with the cash.
Start learning about social networking. What isn't getting done online? The post office is delivering less mail so they've decided to not deliver on Saturday. Makes sense — more and more people pay bills online these days and are tired of paying for stamps, which increase in price every other day. The signs are there folks: technology is taking over. 

Choose your niche, read the market research, do some of your own research or pay someone to do it. But just do it. Not knowing your customer at this point will get you out of business plenty fast. 

Do what your niche customer wants you to do. I have done research for so many firms, designed studies that make sense (at least the company tells me it’s what they want to know), dug up incredible information that's generated a lot of excitement, only to have the client go back to their old ways!

If your niche customer says "it’s what I want"—do it! Nothing is more valuable than talking to your customer and staying close. If you don’t, someone else will! 

Over the holidays, 7-Eleven and J.C. Penney Co. cross-promoted in various cities across the county as part of a new test aiming to increase sales. Penney stores distributed fliers for free 12-ounce cups of coffee at 7-Eleven. Meanwhile, 7-Eleven checkout counters displayed tear pads with Penney coupons good for $10 off purchases of $50 or more. 

Did it work? Sure it did. Start thinking, who would like your coupons? You won’t know until you try it.

“This nasty crisis is just bringing out the creativity of the survivors," said Candace Corlett, President of WSL Strategic Retail.

Resources:

Staying in Business: Dec. 10, 2008, discussion moderated by John Corrigan, Deputy Business Editor, Los Angeles Times.
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Looking to Keep Your Job? Keep Yourself Employable

04 February 2009 Categories: Success

Today I got an email from Job Market Weekly. I don’t know what it means but I figure it means something — in this case a big something. Are you prepared for the future?

I get at least one email a week from someone who has lost a job. Rarely do I get emails saying, "What should I do to update my career or my resume?"

With unemployment statistics what they are, it’s frightening. The key is to keep yourself employable. How do you do this then? Ask yourself if the skills you have today will keep you relevant in your job in 2, 5, 10 years. Take a look at your resume and ask whether you would want to hire you. What have you been doing  with your schooling since high school or college?

Maybe you love your job, and you’re doing great and you’re not worried. But business is a partnership; just as you want the owner to keep on top of trends, products and the bottom line, it’s your responsibility to keep up your end. Suppose the business gets sold; would you look as good to the next owner? Or do you look good now because you're related to the present owner?

A good friend of mine just lost her job. It  started me thinking about someone I know named Janice. Ten years ago, I volunteered with Vocation and Educational Services for Individuals with Disabilities (VESID), a New York State agency dedicated to helping people with physical problems get back into the work force. Having been an employer, I thought this would be a good place for me to use my skills and help others.

Although the agency gave me some guidelines for reporting and a budget for incidentals and transportation, they didn’t prepare me for Janice — a 38 year-old, 6-foot tall woman with a master’s degree in criminal justice and arthritis so bad that some days she couldn’t hold a glass of water or a wash cloth. She had no family, was living on welfare, had not held a job since struggling and graduating from grad school five years prior. She had pretty much given up, was depressed, and some days could barely stand up straight. And did I mention her anger?

Long story short, it took us one year to get Janice a job. The thing is, nothing conventional really worked for Janice. We got plenty of job interviews because of her schooling, but some how nothing clicked.

Here's what we did to change things though. We got Janice some new clothes. Where? At the Salvation Army, Goodwill and other places that supplied clothing for those returning to the workplace. We looked for marked-down stuff, bought it on sale, went to churches and yard sales, etc. It was a great start, and Janice started to look better.

We went to Macy’s and the cosmetic counters, told them Janice was returning to the workplace and got lots of freebees. Shiseido offered makeup and other work tips. At first Janice was uncomfortable with the charity. But then it became fun and she realized she was a valuable member of society. Everyone we met wished her luck and knew someone who knew someone. If you can believe it, we found there was even free plastic surgery available!

We looked for free classes on computer skills, sales skills and more job training. Janice was smart, but we decided to make her smarter and well rounded. She knew police work, but those skills were getting old.

We went to not-for profits, Planned Parenthood socials, the library, the health clubs, the jails, the local prison, the state police academy, the city police — no jobs! It got pretty depressing for me too. Although looking and feeling better than she had in a long time, Janice had to work very hard at keeping her spirits up.

Okay, so what worked? Interestingly, it was her desire to volunteer with the city police. It wasn’t easy getting them to take her in — even for one day a week — but they finally agreed. Eventually she worked her way up to three days a week. And she was good! She knew the police stuff backwards and forwards, she was from Brooklyn and had worked with the police there for several years. She knew the “customers” — she was both tender and tough. After six months she had made herself indispensible, so they created a job for her.

I saw Janice six years later. She yelled to me from across the street and I hardly recognized her. She stood straighter, even with her cane. Her hair was braided and pulled back. She had on lovely makeup and was getting into her car. She said it was the first car she had ever owned, which went along with her first  driver’s license.

I smile when I think of Janice.

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