No holiday joy for beauty salons -- latimes.com
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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.
The First Echamberofcommerce Post
Today, we selected four communities in which to launch Echamber memberships. We selected the following communities:
Sacramento County:
Sacramento is California's state capitol and is located about 75 miles NE of San Francisco and 90 miles SW of Lake Tahoe. It is the headquarters of echamberofcommerce.ws. Identified as one of America's most diverse cities, Sacramento is a city of two major rivers: the Sacramento and American Rivers with a fine selection restaurants, arts and entertainment, and the gateway to many Gold Rush cities and towns. Sacramento is the city where I spent the majority of my adult life and where I met my bride and where my three sons were raised. Sacramento is the home of the NBA's Kings.
Tampa, Florida
Tampa is located on Florida's Gulf Coast, just 70 miles SW of Orlando and across the state from NASA, where the space shuttles are launched. Tampa is my place of birth where I enjoyed its rich Spanish heritage, Cuban food, and tropical weather. Tampa is the home of the NFL's Buccaneers, the MLB's Rays, and the NHL's Lightning. It is a city where I enjoyed Gasparilla Day, the day when the city is taken over by legendary Jose Gaspar and his band of swashbucklers and pirates. The parade route used to be along Kennedy Blvd after a flotilla on boats invaded Tampa Bay along Bayshore Boulevard. Tampa is also the city where I saw snow for the first time when a freak snowfall fell in 1976. Tampa is the city where I attended high school, Tampa Bay Technical Vocational High Class of 1979, where I was the President of the Future Business Leaders of America (FBLA). Tampa is also the city where I remember Christmas Day with 80 degree temperatures, wearing t-shirts, short pants and no shoes. Tampa is a city with beaches in nearby Clearwater, St. Petersburg and Dunedin/Tarpon Springs. If you are in the Tampa area, please also visit Sarasota, Florida, about a 40-minute drive, where the beaches have the finest, whitest sand in the world.
San Jose, California
San Jose is a city of 1.2 million people about 40 miles south of San Francisco. It is a city that shares the nickname of Silicon Valley with cities such as Mountain View, Sunnyvale, Santa Clara, Cupertino and Palo Alto. San Jose is the city where I lived after leaving the Air Force in 1985. It's the city where my friend Romel Santiago, a Filipino-American military veteran who served in the Air Force as a health technician. Romel convinced me to continue studying math after I changed my major from foreign language (Spanish, French and German). Romel and I studied, while working full-time, all the way through Calculus with our final instructor, Jess San Agustin, who gave us both an A+ for completing extra homework for extra credit. San Jose has a rich Mexican heritage in its architecture, people and food. It is also the home of many immigrants from India, the Far East, the Middle East and other countries from around the world.
Atlanta, Georgia
Metropolitan Atlanta has a population of over 5 million residents. It has a bustling economy of business, medicine, entertainment, government and education. Atlanta shares a place in history as the birthplace of civil rights leader, Martin Luther King, Jr. Atlanta has wonderful communities such as Smryna, Decatur, Buckhead, Austelle, College Park, Dunwoody, Alpharetta, Lawrenceville, Lithonia, Roswell and Stone Mountain. It's people are warm, down-to-earth, with just enough southern hospitality for a city its size. What I like about the Atlanta is the size of the home and the amount of land you get when you buy a house. Plus, Atlanta is just a six hour drive or an hour flight to Tampa.
After these four cities, we will develop echamber members in Orlando FL, Denver CO, Buffalo NY, Pasadena CA, and Charlotte NC, and Portland OR.
Thanks for reading this blog.
Sacramento County:
Sacramento is California's state capitol and is located about 75 miles NE of San Francisco and 90 miles SW of Lake Tahoe. It is the headquarters of echamberofcommerce.ws. Identified as one of America's most diverse cities, Sacramento is a city of two major rivers: the Sacramento and American Rivers with a fine selection restaurants, arts and entertainment, and the gateway to many Gold Rush cities and towns. Sacramento is the city where I spent the majority of my adult life and where I met my bride and where my three sons were raised. Sacramento is the home of the NBA's Kings.
Tampa, Florida
Tampa is located on Florida's Gulf Coast, just 70 miles SW of Orlando and across the state from NASA, where the space shuttles are launched. Tampa is my place of birth where I enjoyed its rich Spanish heritage, Cuban food, and tropical weather. Tampa is the home of the NFL's Buccaneers, the MLB's Rays, and the NHL's Lightning. It is a city where I enjoyed Gasparilla Day, the day when the city is taken over by legendary Jose Gaspar and his band of swashbucklers and pirates. The parade route used to be along Kennedy Blvd after a flotilla on boats invaded Tampa Bay along Bayshore Boulevard. Tampa is also the city where I saw snow for the first time when a freak snowfall fell in 1976. Tampa is the city where I attended high school, Tampa Bay Technical Vocational High Class of 1979, where I was the President of the Future Business Leaders of America (FBLA). Tampa is also the city where I remember Christmas Day with 80 degree temperatures, wearing t-shirts, short pants and no shoes. Tampa is a city with beaches in nearby Clearwater, St. Petersburg and Dunedin/Tarpon Springs. If you are in the Tampa area, please also visit Sarasota, Florida, about a 40-minute drive, where the beaches have the finest, whitest sand in the world.
San Jose, California
San Jose is a city of 1.2 million people about 40 miles south of San Francisco. It is a city that shares the nickname of Silicon Valley with cities such as Mountain View, Sunnyvale, Santa Clara, Cupertino and Palo Alto. San Jose is the city where I lived after leaving the Air Force in 1985. It's the city where my friend Romel Santiago, a Filipino-American military veteran who served in the Air Force as a health technician. Romel convinced me to continue studying math after I changed my major from foreign language (Spanish, French and German). Romel and I studied, while working full-time, all the way through Calculus with our final instructor, Jess San Agustin, who gave us both an A+ for completing extra homework for extra credit. San Jose has a rich Mexican heritage in its architecture, people and food. It is also the home of many immigrants from India, the Far East, the Middle East and other countries from around the world.
Atlanta, Georgia
Metropolitan Atlanta has a population of over 5 million residents. It has a bustling economy of business, medicine, entertainment, government and education. Atlanta shares a place in history as the birthplace of civil rights leader, Martin Luther King, Jr. Atlanta has wonderful communities such as Smryna, Decatur, Buckhead, Austelle, College Park, Dunwoody, Alpharetta, Lawrenceville, Lithonia, Roswell and Stone Mountain. It's people are warm, down-to-earth, with just enough southern hospitality for a city its size. What I like about the Atlanta is the size of the home and the amount of land you get when you buy a house. Plus, Atlanta is just a six hour drive or an hour flight to Tampa.
After these four cities, we will develop echamber members in Orlando FL, Denver CO, Buffalo NY, Pasadena CA, and Charlotte NC, and Portland OR.
Thanks for reading this blog.
Are Obama and the Democrats "Calling the Republicans Out" on Job Creation?
It's Monday and just a few days before Thanksgiving in the United States. The health care debate is on fire with the Senate, controlled by the Democrats, garnishing enough votes to debate health care. Both sides are digging in deep with the Democrats having the upper hand in controlling the outcome. Republicans claim that the proposed health care legislation will kill jobs and hinder job growth. Democrats counter that "health care for all" is critical to job creation.
So which side is right? Republicans stick to their mantra that government needs to lower taxes in order to create more jobs. The theory is that the government should adopt policy to reduce taxes, offer employer credits to give small business the boost it needs to hire more works.
The reason why I'm writing on this issue is because I thought long and hard about the two opposing positions on job creation. To me, as a student of economics who is seeing businesses close and workers lose their jobs, neither side, Democrat or Republican, is right. In fact, both sides are asking government to step in and do something. One side, the Democrats, want to raise taxes to pay for government sponsored work projects. The Republicans, in essence, are asking for money, too, in the form of a smaller accounts payable to the governmeent (IRS), to use this additional revenue to hire more people. The complaint Democrats make is that lowering taxes is nothing more than "supply side economics" where the employer may not create additional jobs, but pockets the extra profit from tax decreases.
Now, of course, there is precedence set when tax cuts have helped the economy and there is precendence when tax cuts have not. Looking at the Democrats socialist leaning perspective, I honestly can't find any evidence that spending more money creates long lasting jobs unless you look at big projects like the Hoover Dam. Most job projects created by the government are nothing more than temporary jobs.
My economics training and business experience tells me that if you want to create jobs, you have to do it the old fashioned way by doing battle in supply and demand arena. You have to outperform your competition who is on equal footing as your business. There cannot be any labor union advantages, supplier unfair favoritism or inferior products causing a competitor to beat others.
So, I am not on board with either political party and their theories to improve the U.S. economy. I think that it's all about the business owner and his or her talent and expertise to grow their business.
Thanks for reading this blog.
So which side is right? Republicans stick to their mantra that government needs to lower taxes in order to create more jobs. The theory is that the government should adopt policy to reduce taxes, offer employer credits to give small business the boost it needs to hire more works.
The reason why I'm writing on this issue is because I thought long and hard about the two opposing positions on job creation. To me, as a student of economics who is seeing businesses close and workers lose their jobs, neither side, Democrat or Republican, is right. In fact, both sides are asking government to step in and do something. One side, the Democrats, want to raise taxes to pay for government sponsored work projects. The Republicans, in essence, are asking for money, too, in the form of a smaller accounts payable to the governmeent (IRS), to use this additional revenue to hire more people. The complaint Democrats make is that lowering taxes is nothing more than "supply side economics" where the employer may not create additional jobs, but pockets the extra profit from tax decreases.
Now, of course, there is precedence set when tax cuts have helped the economy and there is precendence when tax cuts have not. Looking at the Democrats socialist leaning perspective, I honestly can't find any evidence that spending more money creates long lasting jobs unless you look at big projects like the Hoover Dam. Most job projects created by the government are nothing more than temporary jobs.
My economics training and business experience tells me that if you want to create jobs, you have to do it the old fashioned way by doing battle in supply and demand arena. You have to outperform your competition who is on equal footing as your business. There cannot be any labor union advantages, supplier unfair favoritism or inferior products causing a competitor to beat others.
So, I am not on board with either political party and their theories to improve the U.S. economy. I think that it's all about the business owner and his or her talent and expertise to grow their business.
Thanks for reading this blog.
The Free Disease is Here!
Business Owner Alert: The Free Disease is Running Rampant!
The recent fall of the economy has created a disease more deadly than H1N1. It's called the Free Disease. The Free Disease (FD) has its origins when government policy began to subsidize basic living components such as housing and food back in the early 1970's. During the first auto bailout, a prominent auto executive asked the government for an 8-figure bailout. This caused the disease to erratically spread across the country. But it was about to build momentum.
More recently, FD reared its head in the bailouts of several banks, more auto industries, and an insurance company that lost money functioning as both an insurance company and mortgage banker.
So guess what? When you are operating your business to generate a profit, more and more people are expecting you to perform your services for free. Now, I'm not talking about discounts, specials or incentives. I'm talking about F R E E! And God help you if you say no. You and your business may be labeled as "unsympathetic" to the plight of the community and may be blackballed until you shut your doors. How dare you offer your services for a price or fee.
This insidious Free Disease is spreading across America like wildfire.
You can do something to innoculate your business from the Free Disease. But it takes some proactiveness on your part. You must reach out to the people who want to pay for great service. The difficult part is that they are not going to walk through your doors willy nilly. Your phones will not ring incessantly while you simultaneously work to take orders from the Internet.
You must work your business in a purposeful manner.
Go out and meet some new people today. Your business checking account will be glad you did.
Thanks for reading this blog.
The recent fall of the economy has created a disease more deadly than H1N1. It's called the Free Disease. The Free Disease (FD) has its origins when government policy began to subsidize basic living components such as housing and food back in the early 1970's. During the first auto bailout, a prominent auto executive asked the government for an 8-figure bailout. This caused the disease to erratically spread across the country. But it was about to build momentum.
More recently, FD reared its head in the bailouts of several banks, more auto industries, and an insurance company that lost money functioning as both an insurance company and mortgage banker.
So guess what? When you are operating your business to generate a profit, more and more people are expecting you to perform your services for free. Now, I'm not talking about discounts, specials or incentives. I'm talking about F R E E! And God help you if you say no. You and your business may be labeled as "unsympathetic" to the plight of the community and may be blackballed until you shut your doors. How dare you offer your services for a price or fee.
This insidious Free Disease is spreading across America like wildfire.
You can do something to innoculate your business from the Free Disease. But it takes some proactiveness on your part. You must reach out to the people who want to pay for great service. The difficult part is that they are not going to walk through your doors willy nilly. Your phones will not ring incessantly while you simultaneously work to take orders from the Internet.
You must work your business in a purposeful manner.
Go out and meet some new people today. Your business checking account will be glad you did.
Thanks for reading this blog.
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