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| Subject: Part B- Customers In Better Circumstances Mean Better Business | |
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Author: Dennis S. Vogel |
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Date Posted: 00:02:50 08/30/05 Tue In reply to: J 's message, "Beaten & bruised" on 14:21:19 08/20/05 Sat I realize the truth of “If your only tool is a hammer, every problem looks like a nail.” It’s tempting to keep recommending marketing methods. There’s been a lot spoken & written about giving back to communities. Even if your tendency is to avoid making your community involvement obvious, it may be better to make it more evident. Truth & perception aren’t always the same. Unrealistic perception is stronger than truth. It’s important to show buying from you is beneficial in many ways. When supporting your business is also a way of supporting themselves, it’s harder for people to justify buying from another business. I can understand why workers there would be cautious. But it seems they’re staying in a situation in which they hope they’ll be OK, but they’re sure they won’t be. That kind of stress is literally deadly. People’s health will definitely decline when they think that way. I know blind optimism is bad. Some very optimistic people say realists are pessimists, but there the ones who usually argue about the glass being half-full. That debate is mostly useless, it can be used profitably as a paradigm. What’s realistic is - When a stock car is sliding toward a wall, it’s very tempting to stare at that wall as if knowing the moment of impact will prevent it. To avoid impact, drivers need to look in the direction they want to go. This doesn’t guarantee their safety, but it greatly improves their odds of continuing the race. I worked for Montgomery Ward when it was closing the stores. We felt the ax was about to fall at any time. Morale was abysmal. I know people can work well even when they don’t like what they do. After all, W-M has survived so far. But adequate results, of depressed, angry workers, aren’t as good as productivity from motivated workers. Feeling this way literally drains people’s mental & physical energy. Working requires more energy than before to overcome this. Workers can’t concentrate well & make mistakes. Some will sabotage the company. Even if incidents are small, they’re cumulative & morale falls further & faster. One reason for the decline of U.S. auto makers in the 1970’s to 80’s was neglect by disgruntled workers. The product quality was substandard & people refused to buy lemons. Are the owners/headquarters of the workplaces near you or far away? If they’re near you, who in town has enough influence & is willing to talk to the owners about staying? Government officials, retired officials & executives who live in the city, consultants, business magazine & newspaper editors & writers & book authors are possible advocates. If the employers in the area would commit to staying in town for a year or maybe more, I think it would help workers feel better. Then after 9-10 months, employers can reassess the situation & determine if the commitment sufficiently inspired better results & if there’s a big enough market for the products/services. There may be case studies of companies finding success in situations like these. Those can be presented. People in Economic Development Departments should know how to get that information. Too often employers feel they have all of the power & privileges. After all, they pay employees. As if they’d still do it if the workers stopped working. Pay for work completed is an exchange of value. Workers have power too, even without unions. But workers should realize if quality slips, employers will have more justification for leaving town. If workers keep demanding pay raises, then foreign laborers will be more affordable. Do you belong to a business association in the city? A group of business owners can work with the city government & find out what will inspire employers to stay. Then they can work with employees to provide what employers need. Us versus them mentality leads to an eye for an eye mentality. Then everybody involved ends up blind & bitter. None of them benefit from that. It’s like the social trap concept I wrote about below. In the area I live in, we’ve experienced the effects of big employers merging, downsizing, moving out or going out of business. Some other employers have started up here & other have moved in or expanded. We still have some abandoned buildings, but we’ve survived. Business groups & local governments are working together to avoid problems & reduce the effects of problems that still exist. For your business, you probably have some old (distressed) inventory. There are quick ways to liquidate it. I wonder if you’ve tried bartering. You’d still pay tax on the fair market price of the products, but that’s better than having money tied up in inventory. Plus you could get some value for it. Some trades include money with products /services. So, bartering doesn’t have to be cash-less. Accountants &/or lawyers should know about this & can give you guidance. Some business owners auction slow-moving inventory in online auctions. eBay has some competitors. Some online businesses already accept payments through PayPal & PayPal is owned by eBay. So, if you set a PayPal account for using eBay, you’ll be on your way to using PayPal for an online store. Business owners, in other counties, may be able to sell your current merchandise. It seems like you may need to change product lines. Maybe those business owners, facing a similar situation or saturated markets, have things your target market can afford & are willing to buy. Since you brought up the subject of Internet marketing- “A consumer typically visits an online store 3-7 times prior to making a purchase.” Entrepreneur Magazine. So, those who click out may click back in. I don‘t what the time frame is. I know retailers need sales TODAY so they can survive into the future. There are ways of accelerating sales processes, but those depend on the individual businesses. Shipping & handling charges can be major factors in whether people buy things from Internet stores. Locally-based stores can fulfill orders in person, which may or may not reduce delivery costs, but it might speed up delivery. If UPS or FedEx ship the packages, there’s paperwork involved & somebody is sent to get the packages & bring them to shipping centers for processing. By forming or joining an existing group, you’ll show your desire to solve problems. It’ll be obvious you have a financial reason for doing it, but you’d be working with others who have something to gain or lose depending how things turn out. Being linked with efforts to improve the situation should increase how much others trust you. Just knowing you expended the effort may help convince people supporting you & your business is better than supporting businesses with little or no commitment to the community. Now you should be determining what you can do to improve the circumstances for everybody involved. Some may have already given up or may soon give up, but you don’t necessarily need everybody’s effort. Some who have dropped out of the process might drop back in when they see momentum building. Even if I had all of your knowledge of your situation, I’d still need to recommend testing different approaches. I know it can be hard to show the value of what you sell & build the value of continuing effort. Dennis S. Vogel thrivingbusiness@email.com The best marketing increases the actual & perceived value of what you offer. So, what you need is the best marketing program for your business. It’s not expensive, especially compared the less profitable alternatives http://web1.lakefield.net/~thrivingbusiness/ http://www.voy.com/31049/ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Part C- Reality Check | Dennis S. Vogel | 22:50:36 09/03/05 Sat |
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