One of the major challenges for any start-up is getting your name out there before the people. This is especially difficult if you do not have a brick-and-mortar store. If one opens a retail store, puts up a big sign on the front, then it is likely that people will see the name of your business as they drive by. But, you better hope that they do more than drive by. They better be stopping because you've got a lot of money tied up in rent, utilities, insurance, product, labor, and the other expenses of operating a business. In our community I see a lot of small businesses open up and close in less than a year because they lacked the capital to remain open while they built their business and their business did not generate enough income to cash flow the business during that start-up.
I don't have a building with a big sign and a lot of monthly expenses. I am starting an auction business. I can conduct auctions on-site or I can rent a facility for a couple of days to conduct my auctions. Like many service businesses my start-up costs are minimal. I like that because that means there is less risk, but it also makes it more difficult to get my name out to the public. There are dozens of auctioneers in the area in which I live, but 4-5 of them gets the majority of the auction business. That handful have been in the business many years and enjoy top-of-the-mind awareness with people considering selling at auctions. So what can someone like me do?
Naturally, I pass out business cards whenever possible. I run the occasional ad in some of the surrounding papers. And, I try to be in front of the public whenever possible. That means I often work for some of the 4-5 auctioneers I mentioned earlier. Sometimes I'm on the payroll, and sometimes I just jump in and help work the ring for free. Although these are competitors of mine, they are also colleagues and are willing to recognize me and my auction business. Any time I'm working an auction for another auctioneer they always announce who I am and that I recently received my auctioneer's license. They allow me to showcase my abilities both in the ring and with the microphone. This past Saturday I assisted one auctioneer, and when that auction ended I went to another event where I had agreed to do a charity auction. They only had three items to sell, but they made some money for the organization, and everybody had a good time with the music group that played before and after the auction. Between the two events I was able to showcase my auction talents to about 300 people.
Giving away samples of your product or service may not seem like the most profitable thing to do, but it is a way to help people become aware of what you offer. If you touch enough people with your product or service you will eventually begin to turn some of them into clients who will purchase those items or services. This does require patience and time. Trying to be an overnight success in any business endeavor is more likely to result in failure. Take your time. Connect with people. Let them experience how your products or services can benefit them even if you have to give them away at the start, and eventually you'll find that your business will become known to the public.
Showing posts with label Marketing. Show all posts
Showing posts with label Marketing. Show all posts
Monday, September 2, 2013
Monday, July 1, 2013
Raising the bar
I recently was called to be the auctioneer for a near-by auction house when their regular auctioneer had to be away for the week. When I drove to the auction I found they had a very nice facility. The owners were very warm and friendly. As we talked about how they operated one of them told me that their primary problem was that people didn't want to give anything for what they bought. I was told, "We have a lot of one-dollar bidders here." When I began looking at what was being offered I understood why. I personally wouldn't have given a dollar for much of what was being sold that night. As the auction began I noticed something that I've seen at other auctions. Better quality items were bringing some decent prices, but the people were not going to pay much for the inferior items. I thought to myself that this is not rocket science: if you want higher prices you have to sell better quality items.
Unfortunately, the problem is that the regulars who come to this auction have been conditioned to buy things cheap. The risk to the sellers is that even if they began to bring in higher quality items, for which they've probably paid more to get, the buyers have been taught they can buy things cheap and may not bid much to get it. This has happened to me several times when I've sold items at an auction and they brought much less than I paid for them. I've learned that there are some auction houses I can take only lower quality items to sell because these are what I call "$2.00 auction houses."
What needs to happen in these facilities is that they need to quit accepting low quality items and begin to raise the bar for what they are willing to sell. With better merchandise they can afford to do more advertising to attract the buyers who are more likely to pay what the better items are worth. In time, these auction houses will be known as the place to sell top quality goods for a fair price. The sellers make more on what they sell, the buyers are buying top quality items at a fair price, and the auction house sees its commissions increase. It's a win for everyone, but it's not going to happen until the auction house raises the bar and insists on only selling quality items.
This is true for any small business. In another business I owned I had a sign where our walk-in customers could see it. The sign read, "We sell the highest quality merchandise, offer the best service in town, and have the cheapest rates. You may now pick two out of three." I knew we had competitors who offered less expensive equipment than we did, but we weren't competing for that business. We had competitors that charged less for their service work than we did. That was OK too because we felt we offered better service than they did. We wanted to set the bar high enough to attract what we felt would be quality customers who knew the difference between cost and value. I still believe that is a business philosophy that works for small business owners.
Unfortunately, the problem is that the regulars who come to this auction have been conditioned to buy things cheap. The risk to the sellers is that even if they began to bring in higher quality items, for which they've probably paid more to get, the buyers have been taught they can buy things cheap and may not bid much to get it. This has happened to me several times when I've sold items at an auction and they brought much less than I paid for them. I've learned that there are some auction houses I can take only lower quality items to sell because these are what I call "$2.00 auction houses."
What needs to happen in these facilities is that they need to quit accepting low quality items and begin to raise the bar for what they are willing to sell. With better merchandise they can afford to do more advertising to attract the buyers who are more likely to pay what the better items are worth. In time, these auction houses will be known as the place to sell top quality goods for a fair price. The sellers make more on what they sell, the buyers are buying top quality items at a fair price, and the auction house sees its commissions increase. It's a win for everyone, but it's not going to happen until the auction house raises the bar and insists on only selling quality items.
This is true for any small business. In another business I owned I had a sign where our walk-in customers could see it. The sign read, "We sell the highest quality merchandise, offer the best service in town, and have the cheapest rates. You may now pick two out of three." I knew we had competitors who offered less expensive equipment than we did, but we weren't competing for that business. We had competitors that charged less for their service work than we did. That was OK too because we felt we offered better service than they did. We wanted to set the bar high enough to attract what we felt would be quality customers who knew the difference between cost and value. I still believe that is a business philosophy that works for small business owners.
Tuesday, June 4, 2013
Some stores just don't get it
A few days ago my wife and I went to a local store to buy some items. We found what we were looking for and went to the counter to pay for our purchases. The clerk took my check for $240.00 and ran it through their approval system. In a moment her machine spit out a ticket that said the check was for too much money. She called a manager who said she seemed to remember something that said they couldn't take a check for more than $200.00. At that point we picked up our check off the counter and walked out of the store tearing up the check as we left. I told the manager that was one of the dumbest policies I had ever heard of and she responded that it wasn't their fault. We went to another store in the same shopping center and purchased the items we wanted, and for less money.
When I came home I sent an e-mail to the company's main office describing our experience. I told them what I told the manager, that was a dumb policy. At a time when retail stores need to find ways to attract customers and make their buying easier and more enjoyable, this company decided to make it difficult for their customers to do business with them. Not surprisingly, nearly a week later the company has not responded to my complaint.
Like many retail stores, this company spends a lot of money on advertising, and many of their products have been marked down to sell. Why bother? Why spend the money to get people into the store when store policies make it difficult for them to give the company their money?
Maybe I'm just more sensitive to this problem because when I had a business many of our policies weren't particularly consumer-friendly. In fact, I included an entire chapter about that mistake in my book Mistakes: Avoiding the Wrong Decisions that Will Close Your Small Business. Our hours were for the convenience of our employees, not our customers. For many years we continued the practice of previous owners in not offering credit card options for payment. We did not offer a wide enough selection of products from which our customers could choose. The book covers these issues and others.
I learned from those mistakes, but many small businesses still have not. The store that had a limit on the size of check is one of a small chain that is unlikely to get much bigger if they do not change their policies and become more consumer-friendly. And to be so arrogant as to not even respond back to a complaint from a customer is an even greater mistake than the check limit.
How long has it been since you've reviewed your customer service policies? Do they make it easier for your customers to do business with your company or harder? Are they easily understood by both employee and customers alike? How do you view customer complaints? Are they recognized as being the potential benefit to your company that they are, or are they a nuisance that wastes valuable time? Does your company have a policy that requires that every complaint be answered within 24 hours?
This extended recession has helped close the doors of many small businesses. In my opinion, if and when this recession ever ends, small businesses will continue to struggle to be profitable. The ones who succeed will be the ones that have made it easy for people to do business with them. Those that struggle, and perhaps eventually close, will point their fingers at any number of problems, but most of those fingers won't be pointing at their own store policies that doomed their businesses. These will be the stores that just never understood the importance of customer service. They just never got it.
When I came home I sent an e-mail to the company's main office describing our experience. I told them what I told the manager, that was a dumb policy. At a time when retail stores need to find ways to attract customers and make their buying easier and more enjoyable, this company decided to make it difficult for their customers to do business with them. Not surprisingly, nearly a week later the company has not responded to my complaint.
Like many retail stores, this company spends a lot of money on advertising, and many of their products have been marked down to sell. Why bother? Why spend the money to get people into the store when store policies make it difficult for them to give the company their money?
Maybe I'm just more sensitive to this problem because when I had a business many of our policies weren't particularly consumer-friendly. In fact, I included an entire chapter about that mistake in my book Mistakes: Avoiding the Wrong Decisions that Will Close Your Small Business. Our hours were for the convenience of our employees, not our customers. For many years we continued the practice of previous owners in not offering credit card options for payment. We did not offer a wide enough selection of products from which our customers could choose. The book covers these issues and others.
I learned from those mistakes, but many small businesses still have not. The store that had a limit on the size of check is one of a small chain that is unlikely to get much bigger if they do not change their policies and become more consumer-friendly. And to be so arrogant as to not even respond back to a complaint from a customer is an even greater mistake than the check limit.
How long has it been since you've reviewed your customer service policies? Do they make it easier for your customers to do business with your company or harder? Are they easily understood by both employee and customers alike? How do you view customer complaints? Are they recognized as being the potential benefit to your company that they are, or are they a nuisance that wastes valuable time? Does your company have a policy that requires that every complaint be answered within 24 hours?
This extended recession has helped close the doors of many small businesses. In my opinion, if and when this recession ever ends, small businesses will continue to struggle to be profitable. The ones who succeed will be the ones that have made it easy for people to do business with them. Those that struggle, and perhaps eventually close, will point their fingers at any number of problems, but most of those fingers won't be pointing at their own store policies that doomed their businesses. These will be the stores that just never understood the importance of customer service. They just never got it.
Monday, May 6, 2013
Getting your name out
One of the challenges of starting a new business is getting your name out in the community. You can purchase newspaper ads, but many people, especially younger people no longer read the newspaper. Social media is good, but it is limited by the number of people you have in your networks and how willing they are to pass your information on to their networks. Perhaps, one of the best ways of getting started is taking advantage of opportunities to network with others and tell them the story of your business.
It is difficult to crack into the auctioneer business in my area. There are about 4-5 auctioneers who do that vast majority of auctions and dozens of other auctioneers ready to scoop up the remainder of the auctions. I've ran ads in all of the newspapers in the surrounding counties and numerous people have told me they've seen those ads. Unfortunately, none of them have resulted in any business.
Last night I had the opportunity to showcase my auction skills in front of about 100 people as I did a charity auction for a church. They were having a dessert auction to raise money for the youth camp many churches use each summer. In about one hour we had raised over $1,400.00 and had a lot of fun doing so. People who had known me in one role had the chance to see me in a different role. Of course, my hope is that if they need the services of an auctioneer they will give me a call.
A couple of months ago a friend asked me to speak at their local Rotary meeting about my reasons for becoming an auctioneer and the process it takes. A couple of dozen business leaders were in attendance, and my friend told me later that my message was very well received.
These types of events are much more personal that anything else you can do. It gives you the opportunity to meet people, learn their names, pass out business cards, and make a connection that can't be done through any other marketing you may do. Too many people starting a new business put up a sign, sit by the phone, and wonder why it never rings. You've got to go to the people; not wait for them to come to you. You need a compelling story to tell them about your company, why you started it, and what value it will bring to those who use your business. Quite frankly, that often takes time so it's important that you take a long-term perspective.
I always caution people to not quit their day job until their new business really takes off. Regardless of how good your product or service is, it will likely take people some time to discover you, and you need a stable income to provide for your family. I have a good position so I can be comfortable waiting until the auction business takes off. If I never do an auction it won't impact our way of life, and that is a very good position to be in. No worries. No fear. I can afford to network, do charity events, and get my name out to the public, and I'm confident that eventually this will lead to a growing auction business.
It is difficult to crack into the auctioneer business in my area. There are about 4-5 auctioneers who do that vast majority of auctions and dozens of other auctioneers ready to scoop up the remainder of the auctions. I've ran ads in all of the newspapers in the surrounding counties and numerous people have told me they've seen those ads. Unfortunately, none of them have resulted in any business.
Last night I had the opportunity to showcase my auction skills in front of about 100 people as I did a charity auction for a church. They were having a dessert auction to raise money for the youth camp many churches use each summer. In about one hour we had raised over $1,400.00 and had a lot of fun doing so. People who had known me in one role had the chance to see me in a different role. Of course, my hope is that if they need the services of an auctioneer they will give me a call.
A couple of months ago a friend asked me to speak at their local Rotary meeting about my reasons for becoming an auctioneer and the process it takes. A couple of dozen business leaders were in attendance, and my friend told me later that my message was very well received.
These types of events are much more personal that anything else you can do. It gives you the opportunity to meet people, learn their names, pass out business cards, and make a connection that can't be done through any other marketing you may do. Too many people starting a new business put up a sign, sit by the phone, and wonder why it never rings. You've got to go to the people; not wait for them to come to you. You need a compelling story to tell them about your company, why you started it, and what value it will bring to those who use your business. Quite frankly, that often takes time so it's important that you take a long-term perspective.
I always caution people to not quit their day job until their new business really takes off. Regardless of how good your product or service is, it will likely take people some time to discover you, and you need a stable income to provide for your family. I have a good position so I can be comfortable waiting until the auction business takes off. If I never do an auction it won't impact our way of life, and that is a very good position to be in. No worries. No fear. I can afford to network, do charity events, and get my name out to the public, and I'm confident that eventually this will lead to a growing auction business.
Monday, February 18, 2013
Your online presence needs to be updated regularly
I scan or read well over three dozen blogs each day. The posts that I find helpful I put on Twitter so others can be directed to the author's site so they can read them if they want to. One of the things I don't understand is why the people who create these blogs may go for months without ever adding a new message. Recently, I removed several of the blogs I had been following because nothing new had been published on them in five to six months. Many of these were business-related blogs that I assume were created to attract people to those businesses. I don't think most people will find them very attractive.
Since starting this blog a few months ago I try to post on it at least once a week, usually Monday. Once in awhile I don't do it simply because of my schedule. I have another blog that is focused on ministry and church leadership. Because that is my primary focus and the field in which my day job is located I try to post on that blog at least four times a week. In addition, I post around 15 articles on my Twitter account each business day with a link that directs the reader to the site where they will find the article. Half of those articles are related to ministry and the other half are focused on small business. I do this because I want my readers to find fresh information from some of the best thinkers in these two areas of life. Since my Twitter account links to my Facebook account, those who just follow me on FB are able to be directed to those articles as well. I continue to struggle getting large numbers of people following my posts; I can't imagine how difficult it is for those blogs that are only updated 3-4 times a year to attract regular followers.
What makes this even sadder is that I have found the articles on these blogs to be quite good. The authors are people who have something worthwhile to say, and usually a product or service to market, but they are turning away some of their potential clients due to the lack of blog maintenance.
Small businesses and ministries need a presence on social media. A web site and/or blog (I think both are best.) are becoming more essential to get their messages out to persons who need to know about them. But, if these are not going to be updated regularly these sites can become more of a detriment than an asset. Stale messages send a negative signal to your potential clients that you don't want to send. It tells people that you don't have a lot to say about your product or service or you just don't care to give them the information they might need to do business with you.
I have seen church websites that have not been updated in three or four years. Their previous pastor is still listed on the church staff page. If that information is wrong then I can't assume I can trust their service times either. This has actually kept me from visiting some churches. Some businesses don't do much better. Dated information about the company or the product or service doesn't impress potential clients, and it's important to know that the first image some people will make about your company will come from you social media sites. Create the wrong impression online and you will drive potential business to your competitors.
Businesses have two options. Either pay someone to manage your site or do it in-house, but your sites must be maintained and updated on a regular basis. In today's environment your online presence may be a major portion of your marketing depending on the target audience you are going for. As such, it should be seen as an investment, not an expense. You are investing money and time in an effort to reach new clients and to encourage your current clientele to do more business with you. Make your online sites a priority in your planning. Don't ignore or "forget" them. They can be a rich source of revenue if they are properly maintained.
Since starting this blog a few months ago I try to post on it at least once a week, usually Monday. Once in awhile I don't do it simply because of my schedule. I have another blog that is focused on ministry and church leadership. Because that is my primary focus and the field in which my day job is located I try to post on that blog at least four times a week. In addition, I post around 15 articles on my Twitter account each business day with a link that directs the reader to the site where they will find the article. Half of those articles are related to ministry and the other half are focused on small business. I do this because I want my readers to find fresh information from some of the best thinkers in these two areas of life. Since my Twitter account links to my Facebook account, those who just follow me on FB are able to be directed to those articles as well. I continue to struggle getting large numbers of people following my posts; I can't imagine how difficult it is for those blogs that are only updated 3-4 times a year to attract regular followers.
What makes this even sadder is that I have found the articles on these blogs to be quite good. The authors are people who have something worthwhile to say, and usually a product or service to market, but they are turning away some of their potential clients due to the lack of blog maintenance.
Small businesses and ministries need a presence on social media. A web site and/or blog (I think both are best.) are becoming more essential to get their messages out to persons who need to know about them. But, if these are not going to be updated regularly these sites can become more of a detriment than an asset. Stale messages send a negative signal to your potential clients that you don't want to send. It tells people that you don't have a lot to say about your product or service or you just don't care to give them the information they might need to do business with you.
I have seen church websites that have not been updated in three or four years. Their previous pastor is still listed on the church staff page. If that information is wrong then I can't assume I can trust their service times either. This has actually kept me from visiting some churches. Some businesses don't do much better. Dated information about the company or the product or service doesn't impress potential clients, and it's important to know that the first image some people will make about your company will come from you social media sites. Create the wrong impression online and you will drive potential business to your competitors.
Businesses have two options. Either pay someone to manage your site or do it in-house, but your sites must be maintained and updated on a regular basis. In today's environment your online presence may be a major portion of your marketing depending on the target audience you are going for. As such, it should be seen as an investment, not an expense. You are investing money and time in an effort to reach new clients and to encourage your current clientele to do more business with you. Make your online sites a priority in your planning. Don't ignore or "forget" them. They can be a rich source of revenue if they are properly maintained.
Thursday, October 11, 2012
The power of knowing your customers
That may be why he was successful at what he did and our company was not. I never compiled a list of customers by their interests so I could send them information about new products or services they might be interested in purchasing. I often read that direct mail to past customers was one of the best marketing strategies a company could use, but my few attempts at direct mail were all sent to prospects, and none of them resulted in a single sale. When it came time for the sale, most of the vehicles in our parking lot were from companies similar to mine. His direct mail worked and brought out buyers who may not have known of the sale otherwise.
Since that auction I began going to occasional auctions myself. I've been to enough of them that the auctioneers know what I'm most likely to buy. Today I received a letter from the auctioneer who conducted my sale letting me know he has an auction scheduled for this Friday evening. He wanted to make sure I knew there were a lot of items that I've purchased in the past that would be available. He even sent a list of many of the items and directed me to a site on the Internet where I could see pictures of those items. I plan on going.
Several years ago I purchased a number of suits from a salesman in a nice department store in a nearby city. After the first or second suit I bought I began receiving notices from him letting me know about sales his department were having. He noticed I always bought my suits when they were on sale, so he made sure I knew upcoming sale dates, not only for suits but for other menswear items as well. Over the course of three or four years I purchased a new suit from him about every six months. I also bought a number of dress pants and dress shirts from that same salesman. He left for another job, and I never received another contact from that store again. Now that I think of it, I never bought another suit there either. That salesman knew me, he knew what brand suit I liked, and what I would pay for it, and he made sure I always knew when I could buy one for that price. And, I usually did.
How well do you know your customers and what they want or need that your company can provide? What are you doing to intentionally stay in contact with them? How often do you send direct marketing material to them? Studies find that it's much easier to sell to a current customer than to a prospect, and it costs much less to get their business as well. If you don't have a current client list you need to begin developing one and begin marketing to it. It will add to your bottom line.
Friday, August 31, 2012
When a company is resistant to change
Image: FreeDigitalPhotos.net
Unfortunately, change is no longer an option and hasn't been for a long time. It doesn't matter if you and I enjoy change, it is going to happen. The marketplace has changed dramatically over the past few years. Customers, and employees, expectations have changed. Everyone now demands more value in every item or service they buy. With the rapid increase in social media, marketing has changed. Unless your target audience is baby boomers and older I would be very reluctant to advertise in the local newspaper or on the local radio station today. Younger generations no longer read the newspaper or listen to the radio. Small businesses that do not move a substantial portion of their marketing dollars to social media may soon find their customer base shrinking rapidly, and with it their profits.
I recently started watching Bar Rescue on television. I don't know how much of that is reality and how much is staged for the cameras, but the premise is a valid one. Bars that have been losing money for extended periods of time call in an expert to turn them around. Immediately, he identifies a number of issues that will require significant change for the owner, the employees, and how the bar operates. Everyone is opposed to the changes, but once the expert yells at them long enough they agree to make the changes he recommends. Of course, at the end of the hour-long program the bar is now making money. What's interesting is when the producers return to the bar a few months later to see how they are doing. Some continue with the changes and are making a nice profit, but occasionally the bar owners revert back to their old ways of doing things even though they know those ways will not be successful. The change is just too much for them.
What is limiting the growth of your business? What do you know needs to be changed, but the thoughts of making that change scares you to death? What will be the short-term effect if you don't make those changes? What are the possible long-term effects? These are questions you need to honestly answer if you want your small business to remain successful and profitable in the future.
Pyschology tells us that we can't resolve problems simply by thinking about them. We need someone to talk to about them if we want to be able to find the answers we need. Do you have someone you trust that you can talk to as you try to answer these questions? If not, I have coached a number of people and would be glad to come alongside you as a coach to help you identify and begin to make the changes your small business needs to make. Send me a note telling me you would like to discuss having me coach you through some changes in your company, and we'll discuss how I can help your company begin to move forward. In the meantime you will find a lot of help in my latest book available only on your NOOK or NOOK apps.
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