Thursday, February 4, 2010
Monday, February 1, 2010
Are Lower Prices Good for the Economy?
"How low can you go" is a popular phrase in the lyrics of a trance dance track in the late 1980's. The phrase is also apropos to describe how business owners are fighting for tight consumers dollars. Just about every industry is trying to compete based on lowering prices.
Restaurants, wireless companies, hair salons, plumbing and A/C heating crews and many others are rushing to lower prices to stay in business. But is this good for the American economy? It depends on who you ask and what your role is in the movement of products, goods and services.
Workers who lost their jobs and the potential of higher unemployment cause people to change their consumer shopping habits. Consumers facing lower to no income make choices according to what household budgets can afford. Just the potential loss of income has conditioned consumers to shop less at high end retail and luxury personal care establishments.
So what does this mean for business owners? It's a double-edge sword for many business owners. On one hand, businesses must price their products, goods and services for a decent profit while watching the competition and unrelated industries drop prices. On the other hand, dropping prices shrink margins to a point where it's tough to stay in business.
In addition to falling prices and slimmer margins, consider the psychological impact discounting prices has on the workforce. Owners who lower prices must either layoff workers or hire at lower hourly wages. As readers may see, this cycle of events reduces consumers purchasing power. What's most tragic is workers are becoming forced and humiliated to race to the bottom of our economic society. Recent mass job fairs show city streets lined with workers seeking minimum wage jobs. I guess it's better to make some money than no money.
Readers may ask what's the point to writing this blog. If small business owners succumb to downward pricing pressures, then small business services are at the isk of extinction. When is the profit margin too low to make operating your business a good return on investment? As profit margins fall, so does customer service and quality, and ultimately, the business!
Now is the time to separate yourself and business from other business who will become fodder to falling prices and decaying economic conditions.
Now is the time to develop a strong marketing plan to identify people and businesses who can afford and will appreciate your services.
Give us a call at (530) FIND-BIZ to learn how we can promote your business to the community on a regular basis at very affordable prices.
Thanks for reading this blog.
Restaurants, wireless companies, hair salons, plumbing and A/C heating crews and many others are rushing to lower prices to stay in business. But is this good for the American economy? It depends on who you ask and what your role is in the movement of products, goods and services.
Workers who lost their jobs and the potential of higher unemployment cause people to change their consumer shopping habits. Consumers facing lower to no income make choices according to what household budgets can afford. Just the potential loss of income has conditioned consumers to shop less at high end retail and luxury personal care establishments.
So what does this mean for business owners? It's a double-edge sword for many business owners. On one hand, businesses must price their products, goods and services for a decent profit while watching the competition and unrelated industries drop prices. On the other hand, dropping prices shrink margins to a point where it's tough to stay in business.
In addition to falling prices and slimmer margins, consider the psychological impact discounting prices has on the workforce. Owners who lower prices must either layoff workers or hire at lower hourly wages. As readers may see, this cycle of events reduces consumers purchasing power. What's most tragic is workers are becoming forced and humiliated to race to the bottom of our economic society. Recent mass job fairs show city streets lined with workers seeking minimum wage jobs. I guess it's better to make some money than no money.
Readers may ask what's the point to writing this blog. If small business owners succumb to downward pricing pressures, then small business services are at the isk of extinction. When is the profit margin too low to make operating your business a good return on investment? As profit margins fall, so does customer service and quality, and ultimately, the business!
Now is the time to separate yourself and business from other business who will become fodder to falling prices and decaying economic conditions.
Now is the time to develop a strong marketing plan to identify people and businesses who can afford and will appreciate your services.
Give us a call at (530) FIND-BIZ to learn how we can promote your business to the community on a regular basis at very affordable prices.
Thanks for reading this blog.
Thursday, January 28, 2010
Wednesday, January 27, 2010
Your Secret Weapon: You
Greetings business owners across United States, Canada and throughout all parts of this world! We're just about done with this first month of the year 2010. So, the question is how is your business going so far?
Specifically, the U.S. economy is stumbling along trying to find its way back to prosperity in the midst of growing deficits, high unemployment, limited business lending and great overall uncertainty.
The U.S. President is delivering the State of the Union speech Wednesday evening to reassure the country that America is in the process of "repairing" the damage done by the last administration. He also is trying to make amends for spending billions of dollars on "shovel ready jobs" that have had little impact on adding jobs to the economy. In some respects, in my opinion, America is worst off now than she was before the current administration.
So what are you going to do as a business owner to ensure your business stays healthy? As I traveled across the country over the last 90 days, I witnessed some discouraging behavior and heard lots of negative self talk about the business environment in America. From Davenport Iowa to Tampa Florida to San Jose California, many business owners are experiencing their personal "come to Jesus" moments in dealing with declines in business revenues.
Business owners are accepting the status quo mantra to just "hang on in there" until the economy improves.
Let's me say this right now. You are responsible for your business. You are the economy. You are the business. Peppered with boldness, one might say that these statements are over-the-top and downright insensitive to the business community. Please don't look at it this way. You are the almighty business owner, the captains of your industry. To some people living outside North America, you are what the American dream is all about. You just don't believe that you are all powerful and capable of reaching genius level in the eyes of the public.
It's you, Mr. or Ms Business Owner. Your education, training and experience have positioned you to move products, goods and services like no one can. In the simplest terms, you are the GDP, the gross domestic product! When business revenue is up, GDP is up and people are working. Your reward for increasing the GDP is a high payoff unlike any other way to earn a living in America that's legal and ethical.
You are also the practicing engineer of your business. You are the technician who should be able to sense what course corrections to take when business revenue begins to fall. Like a captain at sea, you sense that you need to go to the cabin or to your secret place of refuge and retreat to map out new strategies to navigate your business through rough seas. Like a surgeon operating on a patient with a chronic condition, you can diagnosis the ailment by using your mind and tools to bring your business to a full recovery. But why does it seem like you cannot step up to the plate and take complete control of your business?
As a former soldier in the United States Armed Forces, we are trained to analyze a situation to successfully complete the mission according to orders communicated by the commander. Of course, loss of life is not necessarily at risk for business owners, but loss of liberty certainly is. Precious liberty is loss when you give up or forgo a lifestyle because your goals and objectives have fallen short of the requirement. This is why it is so important to do whatever it takes to stay in control of your business.
Most businesses are not that far from success. Your position in life that allowed you to start your business is still in your favor. Remember, your efforts are essential to the GDP equation calculation. Don't lose your competitive edge to maximize your ROI as a business owner.
You are in charge of your business.
Go out and introduce yourself to five new people today. This is the fastest way to grow your business. If you need help, enroll your business in the Echamber of Commerce at http://www.echamberofcommerce.ws/ or give us a call at (888) 824-6919 or dial direct at (530) FIND-BIZ.
Make it a great day!
Clarence "Rick" Nappier
Specifically, the U.S. economy is stumbling along trying to find its way back to prosperity in the midst of growing deficits, high unemployment, limited business lending and great overall uncertainty.
The U.S. President is delivering the State of the Union speech Wednesday evening to reassure the country that America is in the process of "repairing" the damage done by the last administration. He also is trying to make amends for spending billions of dollars on "shovel ready jobs" that have had little impact on adding jobs to the economy. In some respects, in my opinion, America is worst off now than she was before the current administration.
So what are you going to do as a business owner to ensure your business stays healthy? As I traveled across the country over the last 90 days, I witnessed some discouraging behavior and heard lots of negative self talk about the business environment in America. From Davenport Iowa to Tampa Florida to San Jose California, many business owners are experiencing their personal "come to Jesus" moments in dealing with declines in business revenues.
Business owners are accepting the status quo mantra to just "hang on in there" until the economy improves.
Let's me say this right now. You are responsible for your business. You are the economy. You are the business. Peppered with boldness, one might say that these statements are over-the-top and downright insensitive to the business community. Please don't look at it this way. You are the almighty business owner, the captains of your industry. To some people living outside North America, you are what the American dream is all about. You just don't believe that you are all powerful and capable of reaching genius level in the eyes of the public.
It's you, Mr. or Ms Business Owner. Your education, training and experience have positioned you to move products, goods and services like no one can. In the simplest terms, you are the GDP, the gross domestic product! When business revenue is up, GDP is up and people are working. Your reward for increasing the GDP is a high payoff unlike any other way to earn a living in America that's legal and ethical.
You are also the practicing engineer of your business. You are the technician who should be able to sense what course corrections to take when business revenue begins to fall. Like a captain at sea, you sense that you need to go to the cabin or to your secret place of refuge and retreat to map out new strategies to navigate your business through rough seas. Like a surgeon operating on a patient with a chronic condition, you can diagnosis the ailment by using your mind and tools to bring your business to a full recovery. But why does it seem like you cannot step up to the plate and take complete control of your business?
As a former soldier in the United States Armed Forces, we are trained to analyze a situation to successfully complete the mission according to orders communicated by the commander. Of course, loss of life is not necessarily at risk for business owners, but loss of liberty certainly is. Precious liberty is loss when you give up or forgo a lifestyle because your goals and objectives have fallen short of the requirement. This is why it is so important to do whatever it takes to stay in control of your business.
Most businesses are not that far from success. Your position in life that allowed you to start your business is still in your favor. Remember, your efforts are essential to the GDP equation calculation. Don't lose your competitive edge to maximize your ROI as a business owner.
You are in charge of your business.
Go out and introduce yourself to five new people today. This is the fastest way to grow your business. If you need help, enroll your business in the Echamber of Commerce at http://www.echamberofcommerce.ws/ or give us a call at (888) 824-6919 or dial direct at (530) FIND-BIZ.
Make it a great day!
Clarence "Rick" Nappier
Tuesday, December 29, 2009
Monday, December 21, 2009
The Strip Mall for Auto Repair Shops
This past Friday, I met with an insurance client in Concord, California, an East Bay city, just 25 miles from Oakland and San Francisco. Deciding to see if Concord businesses could use virtual chamber of commerce services, I identified 113 auto repair shops in Concord, population about 111,000 residents.
For me, the first test, either over the phone or in person, is how warm and friendly the owner or the counterperson is. You see, when I first make contact with a business on the phone or in person, I'm looking for what level of service and greeting a customer will receive.
In about one hour, I visited seven auto repair shops with two demonstrating good to exceptional service. The five other shops did not have a warm, friendly atmosphere on the first impression. Most of the shops were busy, so perhaps the counterpeople and owners were too busy to exhibit good customer service to a potential new customer. This is just my opinion based on my observations.
However, what I'm really blogging about is the one business in a strip mall where all the businesses were auto repair shops! I've never seen this business configuration. Just imagine eight dry cleaners next to each other. Think about eight bakeries adjoined to each other.
The owner of an auto repair shop mentioned that the shop was shutting down at the end of the year because it was surrounded by a pool of sharks. The facility provides quotes to potential customers and the customers take the quote and shop it around the other auto repair businesses. What a horrendous environment to do business. Not only does a shop owner need to find customers (which is tough in that city with 113 auto repair shops), but now shop owners in this strip mall have concerns that their quotes will be underbidded by competitor shops!
Even in this environment, echamberofcommerce.ws can be effective in finding customers for this business by directing customers to the shop based on building relationships between sellers and buyers.
Thanks for reading this blog.
For me, the first test, either over the phone or in person, is how warm and friendly the owner or the counterperson is. You see, when I first make contact with a business on the phone or in person, I'm looking for what level of service and greeting a customer will receive.
In about one hour, I visited seven auto repair shops with two demonstrating good to exceptional service. The five other shops did not have a warm, friendly atmosphere on the first impression. Most of the shops were busy, so perhaps the counterpeople and owners were too busy to exhibit good customer service to a potential new customer. This is just my opinion based on my observations.
However, what I'm really blogging about is the one business in a strip mall where all the businesses were auto repair shops! I've never seen this business configuration. Just imagine eight dry cleaners next to each other. Think about eight bakeries adjoined to each other.
The owner of an auto repair shop mentioned that the shop was shutting down at the end of the year because it was surrounded by a pool of sharks. The facility provides quotes to potential customers and the customers take the quote and shop it around the other auto repair businesses. What a horrendous environment to do business. Not only does a shop owner need to find customers (which is tough in that city with 113 auto repair shops), but now shop owners in this strip mall have concerns that their quotes will be underbidded by competitor shops!
Even in this environment, echamberofcommerce.ws can be effective in finding customers for this business by directing customers to the shop based on building relationships between sellers and buyers.
Thanks for reading this blog.
There's Good News and Bad News
There is good and bad news.
The good news is that you are in the profession that you love whether it be automotive repair, dentistry, hair care, accounting, plumbing or home care services. You are highly regarded in the community as you help people who seek professional and technical services you offer.
The bad news is that you are the owner in one of the most challenging, economic climates in America...at least in the last thirty years.
Perhaps, when you opened your business, all the ducks were aligned in your favor. The seed money to start your business was available. You either borrowed the money from a bank, a relative, or your 401K. Next you signed permits, leases and other regulatory documents to make your business official. Your prices were fair enough to make a decent living and provide jobs for employees who do a good job.
During the grand opening, you were excited that you had finally set sail to be the captain of your ship. Foot traffic alone kept you business bustling. Then a cute young lady or tanned surfer dude, selling directory advertising, sold you on a half page ad to give your exposure in the local community. Maybe you did not know whether advertising in a directory would work. Since every other business, namely your competitors, had ads, you should have one, too. Back in the day, there were no Facebooks or Twitters. So directory advertising looked like a good idea.
Five thousand dollars per year for a half-page ad? No problem. You've got that covered using your business credit card. Plus, the math done was right in front of you, showing that the ROI justified the investment. "The ad pays for itself", the directory sales representative told you. "The ad just needs to create 100, $50 dollar oil changes or 50 hair coloring appointments at $100 a pop. It's all perfectly legal and ethical with a hidden caveat, "Let the Buyer Beware".
Here's my experience and biased opinion as a business owner and former directory ad subscriber.
The ROI calculation is totally wrong. Any marketing expense should generate 3-5 times the money spent. Using the $5,000 director ad example, the business should want the ad to produce $15,000 to $25,000 in sales revenue. The whole idea of spending money in advertising is to create MORE business than the investment. Why would anyone want to spend $5,000 to generate $5,000 in sales. If the truth be told, the business lost opportunities to use the $5,000 elsewhere in the business.
To feel the full gravity of what I'm saying about a $5,000 per year ad, that's about $420 per month, or $14 per day. The smaller the dollar amount, the better the deal looks. But as the weeks, months go by, you began to wonder if the expenditure was really worth it? Those $14 per day units begin to add up.
In addition to the ROI calculation, how effective is the ad when your competitors' ads are above, below, or to the right or left of your ad?
Yes. Your business name, address and phone number look great sititng in a 500-page book. But how many people really use directories? I don't know. Each person can come to his or her own opinion.
Does directory advertising work for some businesses? The answer is yes! It works for businesses where consumers just want the work done with great workmanship and price. If the workmanship is equivalent among all competitors, the deciding factor will be price.
Our e-chamber of commerce program is more powerful with the potential to create more sales for the following reasons:
Thanks for reading this blog.
The good news is that you are in the profession that you love whether it be automotive repair, dentistry, hair care, accounting, plumbing or home care services. You are highly regarded in the community as you help people who seek professional and technical services you offer.
The bad news is that you are the owner in one of the most challenging, economic climates in America...at least in the last thirty years.
Perhaps, when you opened your business, all the ducks were aligned in your favor. The seed money to start your business was available. You either borrowed the money from a bank, a relative, or your 401K. Next you signed permits, leases and other regulatory documents to make your business official. Your prices were fair enough to make a decent living and provide jobs for employees who do a good job.
During the grand opening, you were excited that you had finally set sail to be the captain of your ship. Foot traffic alone kept you business bustling. Then a cute young lady or tanned surfer dude, selling directory advertising, sold you on a half page ad to give your exposure in the local community. Maybe you did not know whether advertising in a directory would work. Since every other business, namely your competitors, had ads, you should have one, too. Back in the day, there were no Facebooks or Twitters. So directory advertising looked like a good idea.
Five thousand dollars per year for a half-page ad? No problem. You've got that covered using your business credit card. Plus, the math done was right in front of you, showing that the ROI justified the investment. "The ad pays for itself", the directory sales representative told you. "The ad just needs to create 100, $50 dollar oil changes or 50 hair coloring appointments at $100 a pop. It's all perfectly legal and ethical with a hidden caveat, "Let the Buyer Beware".
Here's my experience and biased opinion as a business owner and former directory ad subscriber.
The ROI calculation is totally wrong. Any marketing expense should generate 3-5 times the money spent. Using the $5,000 director ad example, the business should want the ad to produce $15,000 to $25,000 in sales revenue. The whole idea of spending money in advertising is to create MORE business than the investment. Why would anyone want to spend $5,000 to generate $5,000 in sales. If the truth be told, the business lost opportunities to use the $5,000 elsewhere in the business.
To feel the full gravity of what I'm saying about a $5,000 per year ad, that's about $420 per month, or $14 per day. The smaller the dollar amount, the better the deal looks. But as the weeks, months go by, you began to wonder if the expenditure was really worth it? Those $14 per day units begin to add up.
In addition to the ROI calculation, how effective is the ad when your competitors' ads are above, below, or to the right or left of your ad?
Yes. Your business name, address and phone number look great sititng in a 500-page book. But how many people really use directories? I don't know. Each person can come to his or her own opinion.
Does directory advertising work for some businesses? The answer is yes! It works for businesses where consumers just want the work done with great workmanship and price. If the workmanship is equivalent among all competitors, the deciding factor will be price.
Our e-chamber of commerce program is more powerful with the potential to create more sales for the following reasons:
- It costs about $3 per day. Try hiring a marketing rep for $3 per day.
- We are experienced marketing professionals.
- We have a passion to see you succeed.
- Our company has a passion to succeed.
- We actively reach out to people about your business.
- You can fax us 10 contacts per week of people you want us to call.
- Your potential customers can hear about you and your business during the taped Internet-based radio interview.
- We hold weekly conference calls on to discuss business issues, success stories and tips to grow your business.
Thanks for reading this blog.
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