The latest Carnival of Capitalists is online at Crossroad Dispatches. Always an interesting batch of posts about investing, the economy, management, and business in general. Check it out.
Saturday, July 5, 2025
Self-Serve Retail: the trouble with Lowes and Home Depot
Huge home improvement retailers Lowes and Home Depot have hit a rough spot with investors and customers. Both had soft second quarter earnings and warn of slow sales. Their stocks are down about 15% for the year, and the housing market slowdown isn't the only cause.
Home Depot is famous for rotten customer service and Lowes isn't much better.
I went to Lowes last night to look for kitchen cabinets for my new house. You may not realize it, but cabinets are a big-ticket item. Decent ones start at about $150 a lineal foot. So I was about to spend some real money. The only problem was that there was nobody manning the large kitchen cabinets section of the store.
I pushed the "call an associate" button and an announcement was made over the loudspeaker asking for customer help at my location. An employee showed up to turn off the blinking call button, but he didn't work in that department so he went to find the right person. I waited ... and waited but nobody appeared. This is no isolated incident -- my sister had the same problem getting help when she bought kitchen cabinets at Lowes a few years ago.
I'm not one to beg a store to take my money, so I picked up some product literature and left. A cabinet shop closer to my home carries some of the same brands so I'll take my business to them, even if they do charge more.
How can Lowes (and Home Depot) fix this customer service problem? Simply admit to themselves that they aren't in the service business. Like all big-box retailers, their strength is stocking a large variety of inventory on the shelves. Customers search through piles of goods to find what they really want. These stores are self-serve all the way ... and shouldn't be afraid to admit it.
But in the kitchen cabinet department, the stores aren't set up to be self-service. They supposedly offer design service and you have to order the cabinets for later delivery. Come on now; who's kidding who? No big box retailer with its cadre of minimum-wage-slave employees is going to provide that level of service. It's beyond them.
My suggestion is to create a self-service kitchen cabinet department. Stock "blank" cabinet cases (without doors) in a variety of shapes and sizes. Let the customer choose from 10 to 20 styles of doors, which should also be in stock. Make it all cash-and-carry. No delays, no broken promises of "service". IKEA already sells kitchens this way -- Lowes and Home Depot should follow suit.
Home Depot is famous for rotten customer service and Lowes isn't much better.
I went to Lowes last night to look for kitchen cabinets for my new house. You may not realize it, but cabinets are a big-ticket item. Decent ones start at about $150 a lineal foot. So I was about to spend some real money. The only problem was that there was nobody manning the large kitchen cabinets section of the store.
I pushed the "call an associate" button and an announcement was made over the loudspeaker asking for customer help at my location. An employee showed up to turn off the blinking call button, but he didn't work in that department so he went to find the right person. I waited ... and waited but nobody appeared. This is no isolated incident -- my sister had the same problem getting help when she bought kitchen cabinets at Lowes a few years ago.
I'm not one to beg a store to take my money, so I picked up some product literature and left. A cabinet shop closer to my home carries some of the same brands so I'll take my business to them, even if they do charge more.
How can Lowes (and Home Depot) fix this customer service problem? Simply admit to themselves that they aren't in the service business. Like all big-box retailers, their strength is stocking a large variety of inventory on the shelves. Customers search through piles of goods to find what they really want. These stores are self-serve all the way ... and shouldn't be afraid to admit it.
But in the kitchen cabinet department, the stores aren't set up to be self-service. They supposedly offer design service and you have to order the cabinets for later delivery. Come on now; who's kidding who? No big box retailer with its cadre of minimum-wage-slave employees is going to provide that level of service. It's beyond them.
My suggestion is to create a self-service kitchen cabinet department. Stock "blank" cabinet cases (without doors) in a variety of shapes and sizes. Let the customer choose from 10 to 20 styles of doors, which should also be in stock. Make it all cash-and-carry. No delays, no broken promises of "service". IKEA already sells kitchens this way -- Lowes and Home Depot should follow suit.
Retail Location: Malls and Towns
Malls are scrambling to find new anchor tenants.
Department stores are no longer an attraction for many shoppers, so
malls are recruiting restaurants and big box discounters like Target to
generate traffic. "New" downtowns are cited as the hot retail location.
Obviously the "location location location" for retail changes over time, so what's a smart retailer to do? Work toward making your business a destination in itself. That way you won't rely on other magnets to draw traffic. Build the very best inventory of products in your niche, update it constantly, and you'll be on your way.
Obviously the "location location location" for retail changes over time, so what's a smart retailer to do? Work toward making your business a destination in itself. That way you won't rely on other magnets to draw traffic. Build the very best inventory of products in your niche, update it constantly, and you'll be on your way.
Formalized Services in Retail Stores
Retail stores have always given away advice along with selling products.
Now some stores are turning helpful services into a profit center.
Medical services are leading this move into retail stores. Medical clinics are popping up in pharmacies across the nation, and thousands of new clinics are planned to open in stores over the next couple years. No appointment is necessary to get quick, cheap fixed-price treatment for minor illnesses. This is a wonderful development in a nation with runaway health care costs and where fewer and fewer people even have a family doctor. The convenience will obviously draw lots of customers into the stores. Wal-Mart is even testing clinics in some stores.
Are there other services that might be popular in a fixed-price convenient retail setting? How about "instant handy-man" services at the hardware store? The handy-man could have a small workshop for repairing or assembling stuff that people bring in. Or the handy-man could follow you home to install a ceiling fan or wire a new outlet "while you wait". Garden centers could offer the same for tree-planting. Computer repair clinics would be great too, but computers are designed to be disposable these days and a small part is often too expensive to justify repair. Apple could set itself apart by designing its computers for ease of repair and then offer the services while-you-wait in the Apple brand stores.
Similar services have always been a part of other businesses. Jewelry stores offer repairs and ear-piercing. Photo development kiosks were a big deal before the coming of digital cameras (it's interesting that they were located in drug stores and discount retailers, just like the new clinics). Home centers offer kitchen planning and installation services.
Repair and design services could be added to many retail businesses. You might offer the services already -- to make it a bigger part of your business you'll have to increase awareness. Set aside an area of your store for the service and give it prominent signage. Then include it in your advertising and watch your traffic grow.
Medical services are leading this move into retail stores. Medical clinics are popping up in pharmacies across the nation, and thousands of new clinics are planned to open in stores over the next couple years. No appointment is necessary to get quick, cheap fixed-price treatment for minor illnesses. This is a wonderful development in a nation with runaway health care costs and where fewer and fewer people even have a family doctor. The convenience will obviously draw lots of customers into the stores. Wal-Mart is even testing clinics in some stores.
Are there other services that might be popular in a fixed-price convenient retail setting? How about "instant handy-man" services at the hardware store? The handy-man could have a small workshop for repairing or assembling stuff that people bring in. Or the handy-man could follow you home to install a ceiling fan or wire a new outlet "while you wait". Garden centers could offer the same for tree-planting. Computer repair clinics would be great too, but computers are designed to be disposable these days and a small part is often too expensive to justify repair. Apple could set itself apart by designing its computers for ease of repair and then offer the services while-you-wait in the Apple brand stores.
Similar services have always been a part of other businesses. Jewelry stores offer repairs and ear-piercing. Photo development kiosks were a big deal before the coming of digital cameras (it's interesting that they were located in drug stores and discount retailers, just like the new clinics). Home centers offer kitchen planning and installation services.
Repair and design services could be added to many retail businesses. You might offer the services already -- to make it a bigger part of your business you'll have to increase awareness. Set aside an area of your store for the service and give it prominent signage. Then include it in your advertising and watch your traffic grow.
Retail Store Success: Blinds.com
Jay Steinfeld has grown his business from a single bricks-and-mortar
store to a thriving online retail store success story. Blinds.com
generates $45 million in annual sales and is the 10th fastest growing
ecommerce site. Steinfeld opened a drapery store with his wife in 1987,
and the online store started in 1994 and has grown in sophistication and
sales since then.
His ecommerce business grew enough to acquire a major competitor in 2001. Read more about this retailing success. There's still plenty of opportunity for the small business in online retail -- just make sure you stake out a niche, exactly as you would with a traditional store.
His ecommerce business grew enough to acquire a major competitor in 2001. Read more about this retailing success. There's still plenty of opportunity for the small business in online retail -- just make sure you stake out a niche, exactly as you would with a traditional store.
Selling Overcomes Fear
Seth Godin tells a short story about effective retail selling at a farmers market. He reminds us that good selling overcomes the buyer's fear -- in this case the fear of eggplant.
If you sell products that you're genuinely enthusiastic about, you can often pass that enthusiasm on to a shopper. It's not about giving a "hard sell" ... it's about retailing good stuff with passion. If you can't wholeheartedly endorse your products then it's time to upgrade your store's inventory.
If you sell products that you're genuinely enthusiastic about, you can often pass that enthusiasm on to a shopper. It's not about giving a "hard sell" ... it's about retailing good stuff with passion. If you can't wholeheartedly endorse your products then it's time to upgrade your store's inventory.
Stock Photography for Ads
Okay, you accept my argument that professional photography is critical
to marketing success for retailers and other businesses. But hiring a
photographer to create custom photos is expensive and time-consuming. Is
there another way? Yes. You can often use stock photos in your advertising.
Stock photography can be downloaded in an instant, and might be as cheap as $1. Yes, at online stock photo sites like IStockPhoto.com, you can license the use of pics for as little as a buck a piece for low-resolution shots. Those sites have thousands of photos to choose from.
Retailers can usually get product photos from the manufacturer, free of charge. You might get some good stuff that way, but it's surprising how often the manufacturer's photos are boring or just plain bad.
To get photography that really expresses your retail store's personality, you'll have to bite the bullet and hire a professional photographer to take custom shots. Until you're ready to take that step, use the finest stock photos that you can find.
Stock photography can be downloaded in an instant, and might be as cheap as $1. Yes, at online stock photo sites like IStockPhoto.com, you can license the use of pics for as little as a buck a piece for low-resolution shots. Those sites have thousands of photos to choose from.
Retailers can usually get product photos from the manufacturer, free of charge. You might get some good stuff that way, but it's surprising how often the manufacturer's photos are boring or just plain bad.
To get photography that really expresses your retail store's personality, you'll have to bite the bullet and hire a professional photographer to take custom shots. Until you're ready to take that step, use the finest stock photos that you can find.
The Marketing Power of Good Photography
Professional photography is worth a fortune to a retailer or other
marketers. Consider the famous retail catalog and ecommerce website of
the Pottery Barn. Would the products be as sought-after if the photography wasn't so good?
The Pottery Barn catalog and website are like a home design magazine -- full of decorating ideas that inspire the purchase of the products. The Quality of the photography is a huge part of their success with this concept.
Or consider the marketing power of these photos of a Royal Caribbean cruise from Boston.
With just 3 photos, you can see that these cruises from Boston are active, indulgent, and fun for the whole family. Maybe not the image you had of cruising? That's the marketing power of good photography.
Don't skimp on photography when you're marketing. A talented professional can make or break your promotional campaign.
The Pottery Barn catalog and website are like a home design magazine -- full of decorating ideas that inspire the purchase of the products. The Quality of the photography is a huge part of their success with this concept.
Or consider the marketing power of these photos of a Royal Caribbean cruise from Boston.
With just 3 photos, you can see that these cruises from Boston are active, indulgent, and fun for the whole family. Maybe not the image you had of cruising? That's the marketing power of good photography.
Don't skimp on photography when you're marketing. A talented professional can make or break your promotional campaign.
$1,400 a Day from a Simple Website
A month ago, I wrote about the opportunities for making money from sharing your knowledge on the Internet. I also pointed out that retailers can make money from websites without selling anything. But how much money can you make just by presenting what you know on a website?
Tim Carter makes more than $30,000 a month from his website. Tim is a syndicated newspaper columnist who writes about home improvement. He created AsktheBuilder.com in 1995 to share what he knows. In 2004 he learned about Google Adsense, an easy way to generate advertising revenue from a website. After just two years, his Adsense revenues now average an amazing $1,400 a day.
Do you think that Carter made $1,400 a day from his job as a newspaper columnist? Neither do I -- which indicates that publishing your own website can be significantly more profitable than writing for traditional media. You don't need a publisher to effectively get your word out -- you only need a website.
Take a good look at AsktheBuilder.com. It's certainly not fancy or technologically advanced. It's just useful information presented in a simple way. Retailers and service businesses are in a great position to create something similar. Tell the world what you know about your products. Give tips and examples of how your services are effectively used. Help people solve problems and answer their questions.
Cash in on what you know. It may be more lucrative than selling products and services.
Tim Carter makes more than $30,000 a month from his website. Tim is a syndicated newspaper columnist who writes about home improvement. He created AsktheBuilder.com in 1995 to share what he knows. In 2004 he learned about Google Adsense, an easy way to generate advertising revenue from a website. After just two years, his Adsense revenues now average an amazing $1,400 a day.
Do you think that Carter made $1,400 a day from his job as a newspaper columnist? Neither do I -- which indicates that publishing your own website can be significantly more profitable than writing for traditional media. You don't need a publisher to effectively get your word out -- you only need a website.
Take a good look at AsktheBuilder.com. It's certainly not fancy or technologically advanced. It's just useful information presented in a simple way. Retailers and service businesses are in a great position to create something similar. Tell the world what you know about your products. Give tips and examples of how your services are effectively used. Help people solve problems and answer their questions.
Cash in on what you know. It may be more lucrative than selling products and services.
That's why you use models instead of athletes in ads
The dismal showing of the American team at the World Cup is just the
latest example of why you should use models in your ads instead of
athletes. Athletes can embarass themselves with crappy play on the world
stage. Imagine if you'd signed a U.S. soccer player to represent your
company - and then the team only scores one goal in 3 games and is
(mercifully) eliminated in the first round. Yikes! Total waste of money.
Models
don't bring such risks. If they have a bad hair day you just throw out
those photos try again. Nobody ever sees the mistakes. Pick one of the popular Internet models (or 2 or 3) to create a new "face" for your company. Let the athletes to represent your competition -- you'll be glad you did.
Models
don't bring such risks. If they have a bad hair day you just throw out
those photos try again. Nobody ever sees the mistakes. Pick one of the popular Internet models (or 2 or 3) to create a new "face" for your company. Let the athletes to represent your competition -- you'll be glad you did.Retail Store Success: Staples
Office supplies retailer Staples has become a retail success story with memorable marketing and an improved shopping experience.
Their "easy button" is a wonderful iconic object that helps spread the
company's message. I was tempted to buy one when I was recently in a
Staples store. About a million have been sold for $5 a piece.
The easy button icon is also available on a downloadable toolbar for your internet browser -- it enables easy access to the Staples online store. The retailer backs up its marketing with redesigned stores and more training for employees.
The easy button icon is also available on a downloadable toolbar for your internet browser -- it enables easy access to the Staples online store. The retailer backs up its marketing with redesigned stores and more training for employees.
4 Cheap Ways to Get Into Retail
You don't need an expensive store or thousands of dollars of inventory
to become a retailer. Entrepreneur magazine has this article on 4 cheap ways to break into retail.
The 4 ways:
1. eBay - begin by selling unwanted stuff from around your house and then build your own niche
2. Amazon - sell your products alongside the ecommerce leader
3. Direct sales - demonstrations at home parties sell cookware, cleaning products, makeup and more
4. Kiosks - tiny stores right in the middle of the customer traffic at your local mall.
The 4 ways:
1. eBay - begin by selling unwanted stuff from around your house and then build your own niche
2. Amazon - sell your products alongside the ecommerce leader
3. Direct sales - demonstrations at home parties sell cookware, cleaning products, makeup and more
4. Kiosks - tiny stores right in the middle of the customer traffic at your local mall.
Hooters: an American success story
Hooters succeeds by catering to
the tastes of men. For more than 20 years, the famous restaurants have
provided girls, finger food, and beer for millions of happy customers.
Like Wal-Mart, Hooters appeals to the common man (if not the common
woman) with a simple strategy well carried out.
The original Hooters restaurant was opened in Clearwater, Florida by 6 partners. Beer, chicken wings, and girls (not necessarily in that order) proved to be a winning formula. The "delightfully tacky yet unrefined" business was born, and the Hooters Girls became a phenomenon.
According to Restaurants and Institutions trade magazine, Hooters is the 43rd largest restaurant chain in the nation. 2004 sales were $834 million from 388 outlets. You can read more about the company history in this article from Fortune.
SELLING HOOTERS
Hooters' promotions certainly aren't limited to the usual ads and a website. No, this is a business that uses every avenue to raise awareness. It has its own Hooters Magazine, featuring photos of the girls. There are local events at the restaurants, an Ultimate Bachelor Party Give-Away, and a Hooters MasterCard.
The Hooters International Swimsuit Pageant is a natural promotion for this company. It's been held every year since 1997. Winners of local contests across the nation feed into the international finale in Las Vegas. The events are even used to recruit new Hooters Girls to work at the restaurants.
Hooters' sexy promotional vehicles sell the business, not the models. Only the girls' first names are used in the magazine and on the website. The message is that it's not about a specific woman -- the Hooters Girls are generic examples of what you can see at the business.
Hooters does sports too. It's the national title sponsor of the NGA Hooters Pro Golf Tour. Alumni of the successful development tour include successful golfers Lee Janzen, John Daly, Jim Furyk, Tom Lehman, David Toms, and Scott McCarron. Media coverage of the tour includes local television, tournament scores in USA Today and other major newspapers, and in golf magazines.
In auto racing there's the Hooters Pro Cup Series (great name). The series consists of 30 stock car races on paved oval tracks.
GROWING HOOTERS
Hooters Air stopped flying in March, but the company continues to explore opportunities outside the restaurant business. A much more sensible fit is the new Hooters Casino in Las Vegas, which opened February 2, 2006. The 696-room casino hotel with nine restaurants is a complete renovation of the former San Remo Casino. The company hopes to draw from 61 million annual loyal customers at its locations around the world. Almost every inch of the casino has been rebranded.
The Hooters Casino is sure to appeal to blue collar men who aren't comfortable in the expensive, fancy hotels and casinos that have sprouted in Las Vegas. They're the same guys that have always liked Hooters.
The original Hooters restaurant was opened in Clearwater, Florida by 6 partners. Beer, chicken wings, and girls (not necessarily in that order) proved to be a winning formula. The "delightfully tacky yet unrefined" business was born, and the Hooters Girls became a phenomenon.
According to Restaurants and Institutions trade magazine, Hooters is the 43rd largest restaurant chain in the nation. 2004 sales were $834 million from 388 outlets. You can read more about the company history in this article from Fortune.
SELLING HOOTERS
Hooters' promotions certainly aren't limited to the usual ads and a website. No, this is a business that uses every avenue to raise awareness. It has its own Hooters Magazine, featuring photos of the girls. There are local events at the restaurants, an Ultimate Bachelor Party Give-Away, and a Hooters MasterCard.
The Hooters International Swimsuit Pageant is a natural promotion for this company. It's been held every year since 1997. Winners of local contests across the nation feed into the international finale in Las Vegas. The events are even used to recruit new Hooters Girls to work at the restaurants.
Hooters' sexy promotional vehicles sell the business, not the models. Only the girls' first names are used in the magazine and on the website. The message is that it's not about a specific woman -- the Hooters Girls are generic examples of what you can see at the business.
Hooters does sports too. It's the national title sponsor of the NGA Hooters Pro Golf Tour. Alumni of the successful development tour include successful golfers Lee Janzen, John Daly, Jim Furyk, Tom Lehman, David Toms, and Scott McCarron. Media coverage of the tour includes local television, tournament scores in USA Today and other major newspapers, and in golf magazines.
In auto racing there's the Hooters Pro Cup Series (great name). The series consists of 30 stock car races on paved oval tracks.
GROWING HOOTERS
Hooters Air stopped flying in March, but the company continues to explore opportunities outside the restaurant business. A much more sensible fit is the new Hooters Casino in Las Vegas, which opened February 2, 2006. The 696-room casino hotel with nine restaurants is a complete renovation of the former San Remo Casino. The company hopes to draw from 61 million annual loyal customers at its locations around the world. Almost every inch of the casino has been rebranded.
The Hooters Casino is sure to appeal to blue collar men who aren't comfortable in the expensive, fancy hotels and casinos that have sprouted in Las Vegas. They're the same guys that have always liked Hooters.
DSL Customer Service
Verizon and the other phone companies catch a lot of flack for their
customer service, but I recently had an excellent experience with Verizon DSL.
My laptop computer self-destructed and I bought a new desktop to
replace it. The new machine didn't have the correct settings to use my
DSL modem, and I hadn't saved the documentation from when I'd installed
it on my laptop.
So I called Verizon DSL's customer service. The tech person quickly and easily led me through the setup process. It took maybe 5 minutes. The customer service guy was polite and seemed very knowledgeable (or was working from a sophisticated script).
That's the way customer service should be, whether it's in person or over the phone. Quick, simple and personable. Kudos to Verizon DSL.
So I called Verizon DSL's customer service. The tech person quickly and easily led me through the setup process. It took maybe 5 minutes. The customer service guy was polite and seemed very knowledgeable (or was working from a sophisticated script).
That's the way customer service should be, whether it's in person or over the phone. Quick, simple and personable. Kudos to Verizon DSL.
How retailers can make money from websites without selling anything
Last week I wrote about my Internet home business and how I make money from website publishing. Can retailers take advantage of the web in the same way? Yes they can.
Retailers are in a great position to make money from websites without selling anything. All you have to do is share your expertise about your products on your website. You know what questions your customers ask. Answer them online for all to see. Write product reviews. Give tips on how to use that gadget. It should come naturally for a retailer and will be very useful for people on the web.
Share your product knowledge and you'll build your reputation as an expert. That should help your retail sales. But you will also make money from the website if you put ads from the Google Adsense program on your site. Every click on an ad is money for you, and without selling any inventory!
Give this type of Internet business a try. After 3 months or so you should begin to see results. If you're not inclined to create a website yourself, it would be a good project for your teenage kid or one of your employees. Let them keep the website profits and you'll still benefit from the publicity for your store.
Retailers are in a great position to make money from websites without selling anything. All you have to do is share your expertise about your products on your website. You know what questions your customers ask. Answer them online for all to see. Write product reviews. Give tips on how to use that gadget. It should come naturally for a retailer and will be very useful for people on the web.
Share your product knowledge and you'll build your reputation as an expert. That should help your retail sales. But you will also make money from the website if you put ads from the Google Adsense program on your site. Every click on an ad is money for you, and without selling any inventory!
Give this type of Internet business a try. After 3 months or so you should begin to see results. If you're not inclined to create a website yourself, it would be a good project for your teenage kid or one of your employees. Let them keep the website profits and you'll still benefit from the publicity for your store.
Franchises
Franchises
are a short-cut to small business success. The franchise buyer spends
money upfront to buy into a successful business and reduce the risk of
failure. The heart of this business model is the franchise system, which
spells out every little detail of how to successfully run the business.
A good franchise is based on concepts proven in one or more prototypes. There the system has been tried and refined to a high level. It's the proving ground that demonstrates the value of that particular franchise business. It's a model of a business that works. That's what you're paying for if you buy a franchise.
What a typical franchise won't do is give you the freedom to run the business your way. All the decisions are made for you. These are turn-key business operations that must be run according to all the details spelled out in the franchise manual.
The Great Harvest Bread Company is a "freedom franchise" that allows franchise owners to create their stores as they please. But they aren't on their own. They have the support of the company and all the other franchises. It's an interesting business model that you might want to explore.
A good franchise is based on concepts proven in one or more prototypes. There the system has been tried and refined to a high level. It's the proving ground that demonstrates the value of that particular franchise business. It's a model of a business that works. That's what you're paying for if you buy a franchise.
What a typical franchise won't do is give you the freedom to run the business your way. All the decisions are made for you. These are turn-key business operations that must be run according to all the details spelled out in the franchise manual.
The Great Harvest Bread Company is a "freedom franchise" that allows franchise owners to create their stores as they please. But they aren't on their own. They have the support of the company and all the other franchises. It's an interesting business model that you might want to explore.
Internet Home Business & Life
A year ago I started a little home-based business
in my spare time. It's a good thing I did -- my regular job was
eliminated a few months later. Instead of finding another job, I decided
to commit my time and energy to my fledgling business, which was
showing great promise. It's the best decision I've ever made.
Now my little website-publishing business makes enough money to cover all my expenses, and revenues are growing quickly. I'll never work for anyone else ever again.
The business began with a travel guide to cruises from Norfolk, offering information about the ships, their sailing schedule, the cruise terminal, and the port city. Now I have several websites about a variety of topics. A work at home Internet business can be about anything! Are you an expert at something? Do you have a hobby? Turn your interest into a website, share your knowledge with the world, and start making money.
I make money from advertisements on the sites, mostly from Google's excellent Adsense program. The low-overhead of an Internet home business means that almost all my revenues are profit (the main expense is website hosting, which is cheap). My business is still in the early stages and growing fast. There's really no limit to how much money I could eventually make, given the Web's ability to reach people around the world and the multitude of possible subjects for sites.
I'm making enough to live on, but I'm truly rich in time. My business has given me the freedom to tackle a project that I've wanted to do for years -- build my own home. That would be nearly impossible to do while holding down a 9-to-5 job, but it's easy to work on the house during the day and tend to my Internet home business at night. Yes, I've created a website about the homebuilding process; I can make some money from what I learn.
I've gained control of my life with an Internet home business, and millions of other people around the world have too. From the Ebay sellers to businesses that are a lot more sophisticated than mine, we're using the web revolution to power our dreams of success.
Now my little website-publishing business makes enough money to cover all my expenses, and revenues are growing quickly. I'll never work for anyone else ever again.
The business began with a travel guide to cruises from Norfolk, offering information about the ships, their sailing schedule, the cruise terminal, and the port city. Now I have several websites about a variety of topics. A work at home Internet business can be about anything! Are you an expert at something? Do you have a hobby? Turn your interest into a website, share your knowledge with the world, and start making money.
I make money from advertisements on the sites, mostly from Google's excellent Adsense program. The low-overhead of an Internet home business means that almost all my revenues are profit (the main expense is website hosting, which is cheap). My business is still in the early stages and growing fast. There's really no limit to how much money I could eventually make, given the Web's ability to reach people around the world and the multitude of possible subjects for sites.
I'm making enough to live on, but I'm truly rich in time. My business has given me the freedom to tackle a project that I've wanted to do for years -- build my own home. That would be nearly impossible to do while holding down a 9-to-5 job, but it's easy to work on the house during the day and tend to my Internet home business at night. Yes, I've created a website about the homebuilding process; I can make some money from what I learn.
I've gained control of my life with an Internet home business, and millions of other people around the world have too. From the Ebay sellers to businesses that are a lot more sophisticated than mine, we're using the web revolution to power our dreams of success.
The Fair Tax
Once a year we're all reminded how crazy our system of taxation is. There is an alternative: support the FairTax.
The FairTax is a national retail sales tax that would replace federal
income and payroll taxes (including personal, gift, estate, capital
gains, alternative minimum, Social Security/Medicare, self-employment,
and corporate taxes).
The FairTax proposal features dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. The FairTax allows Americans to keep 100% of their paychecks, eliminates compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
Importantly, the FairTax does not burden U.S. exports the way the current income tax system does. It removes the cost of corporate taxes and compliance costs from the cost of U.S. exports, putting U.S. exports on a level playing field with foreign competitors. Lower prices will increase demand for U.S. exports, and increase job creation in U.S. manufacturing sectors. Imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries' value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.
Our wasteful and corrupt Federal government likes the current tax mess because it hides constant tax increases in many places. The current system also siphons billions of dollars from citizens and companies to tax preparation services, accountants and tax lawyers. The FairTax can end the madness.
The FairTax proposal features dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. The FairTax allows Americans to keep 100% of their paychecks, eliminates compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
Importantly, the FairTax does not burden U.S. exports the way the current income tax system does. It removes the cost of corporate taxes and compliance costs from the cost of U.S. exports, putting U.S. exports on a level playing field with foreign competitors. Lower prices will increase demand for U.S. exports, and increase job creation in U.S. manufacturing sectors. Imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries' value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.
Our wasteful and corrupt Federal government likes the current tax mess because it hides constant tax increases in many places. The current system also siphons billions of dollars from citizens and companies to tax preparation services, accountants and tax lawyers. The FairTax can end the madness.
The Best of the Business Blogs
This week's Carnival of Capitalists
presents good business blog posts from the last seven days. From
"changing the rules in your market" to "5 lessons from a marketing guru"
there's lots of interesting posts to read. Enjoy.
Customer Loyalty Rewards Programs
Customer loyalty rewards programs are a fairly common way for retailers
to entice repeat business. A small bookstore near me runs a "bakers
dozen" program -- if you buy 12 books, a 13th book is free. They keep
the records right there in the store so you don't have to remember to
bring your punch card (a nice touch).
The kings of customer loyalty programs are casinos. The giant Harrah's casino chain has a "Total Rewards" program that offers free casino rooms, meals and entertainment
to members. We're not heavy gamblers, but twice they've given us free
2-night hotel stays at one of their Atlantic City casinos. We earn more
"comps" toward meals and gifts while in the casino.
Probably the only business that can afford to offer such big incentives to repeat customers is a casino. Your little retail store doesn't have to go so far -- emulate the bookstore and come up with a simple way to get your best customers to come back more often.
The kings of customer loyalty programs are casinos. The giant Harrah's casino chain has a "Total Rewards" program that offers free casino rooms, meals and entertainment
to members. We're not heavy gamblers, but twice they've given us free
2-night hotel stays at one of their Atlantic City casinos. We earn more
"comps" toward meals and gifts while in the casino.Probably the only business that can afford to offer such big incentives to repeat customers is a casino. Your little retail store doesn't have to go so far -- emulate the bookstore and come up with a simple way to get your best customers to come back more often.
Website Hosts 2
A while back I wrote about problems I'd had with website hosts. I'd like to revisit this important issue and provide an update on my own experiences.
Here's what I've learned about Website hosting (I won't reproduce that entire page here). This is a service that almost every business purchases, but customer satisfaction is the pits. The industry is extremely fragmented but it's growing so fast that companies seem to be fat and happy. Eventually, one web host will provide reliable, full-featured, customer service oriented, and low-priced service and they will dominate the business. For now there is no perfect host, but there are some decent website hosting options, just follow the link above to learn more.
Here's what I've learned about Website hosting (I won't reproduce that entire page here). This is a service that almost every business purchases, but customer satisfaction is the pits. The industry is extremely fragmented but it's growing so fast that companies seem to be fat and happy. Eventually, one web host will provide reliable, full-featured, customer service oriented, and low-priced service and they will dominate the business. For now there is no perfect host, but there are some decent website hosting options, just follow the link above to learn more.
The Power of Credit
Credit has the power to drive your business and improve society. It
enables companies to build a loyal relationship with customers, and
enables people to improve their lives now.
I'm building a small house and over the next several weeks I'll spend tens of thousands of dollars on building materials, fixtures, tools and more. Building supply companies have long recognized that it is worth extending credit to contractors and customers working on large projects because the volume of purchases is so large. My local building supply company is no exception -- they've allowed me to open an account and I'll be billed once a month for purchases. I'll also get the contractor discount. That store is within a mile of my construction site, but there are other stores around so it's in their interest to treat me right.
In The Fortune at the Bottom of the Pyramid, C.K. Prahalad wrote about CEMEX and its innovations in helping the poor build their own housing. CEMEX is the largest manufacturer and seller of cement in Mexico. The do-it-yourself construction market accounts for about 40% of cement consumption in Mexico, and CEMEX wanted more of those sales. Their "Patrimonio Hoy" (savings/property today) program offers access to credit not otherwise available to the poor by providing materials in advance. The program serves families making $5 to $15 a day.
Poor families had a difficult time saving for home construction because the little money they made would be spent on consumables. CEMEX targeted women for their new program because they manage the family expenditures and are the potential drivers of savings in Mexico.
Savings groups are formed and commit to pay CEMEX a fixed weekly payment for at least 70 weeks. Technical advisors help group members design their home and make a materials list. After 5 weeks, Patrimonio Hoy makes the first delivery of building material. The materials have a value equal to 10 weeks of payments, so credit has been extended. Later in the program, deliveries are made after only 2 weeks of payment.
CEMEX helps the Mexican society and economy by providing technical assistance and quality building materials. The credit enables the poor to build a typical room in 1.5 years instead of 4 years. After 10 years the program had 36,000 customers and over $10 million in credit.
Credit is both a powerful small business marketing tool and a way to improve society. It is so widely available in the U.S. that we might overlook its potential in the third world.
I'm building a small house and over the next several weeks I'll spend tens of thousands of dollars on building materials, fixtures, tools and more. Building supply companies have long recognized that it is worth extending credit to contractors and customers working on large projects because the volume of purchases is so large. My local building supply company is no exception -- they've allowed me to open an account and I'll be billed once a month for purchases. I'll also get the contractor discount. That store is within a mile of my construction site, but there are other stores around so it's in their interest to treat me right.
In The Fortune at the Bottom of the Pyramid, C.K. Prahalad wrote about CEMEX and its innovations in helping the poor build their own housing. CEMEX is the largest manufacturer and seller of cement in Mexico. The do-it-yourself construction market accounts for about 40% of cement consumption in Mexico, and CEMEX wanted more of those sales. Their "Patrimonio Hoy" (savings/property today) program offers access to credit not otherwise available to the poor by providing materials in advance. The program serves families making $5 to $15 a day.
Poor families had a difficult time saving for home construction because the little money they made would be spent on consumables. CEMEX targeted women for their new program because they manage the family expenditures and are the potential drivers of savings in Mexico.
Savings groups are formed and commit to pay CEMEX a fixed weekly payment for at least 70 weeks. Technical advisors help group members design their home and make a materials list. After 5 weeks, Patrimonio Hoy makes the first delivery of building material. The materials have a value equal to 10 weeks of payments, so credit has been extended. Later in the program, deliveries are made after only 2 weeks of payment.
CEMEX helps the Mexican society and economy by providing technical assistance and quality building materials. The credit enables the poor to build a typical room in 1.5 years instead of 4 years. After 10 years the program had 36,000 customers and over $10 million in credit.
Credit is both a powerful small business marketing tool and a way to improve society. It is so widely available in the U.S. that we might overlook its potential in the third world.
The Sweet Smell of Retail Store Success
Does your retail store smell? Some companies are targeting consumers' sense of smell
to market brands and products in an almost subliminal way. They're
hiring scent marketers, who concoct odors and serve them up using
blowers strategically placed in public places.
The scents are designed to be subtle. Most companies want to create a signature smell that people will forever associate with their brand -- a marketing strategy that focuses on building positive relationships with customers.
I'd suggest that you start by just airing your store out. Let in fresh air. Change the air-filters on your HVAC system. Then try a scent, but keep it very light. You don't want to chase customers from your store coughing and sneezing.
The scents are designed to be subtle. Most companies want to create a signature smell that people will forever associate with their brand -- a marketing strategy that focuses on building positive relationships with customers.
I'd suggest that you start by just airing your store out. Let in fresh air. Change the air-filters on your HVAC system. Then try a scent, but keep it very light. You don't want to chase customers from your store coughing and sneezing.
Retail Store Success: 17th Street Surf Shop
17th Street Surf Shop
has grown from a single small shop in Virginia Beach (on 17th Street
naturally) to a prosperous regional chain. Growth in the popularity of
surfing explains the company's success somewhat, but strong results from
related merchandise is really the driver of this retail store's
business.
Actual surfing gear is a tiny niche market. But it also conveys an image that 17th Street and other surf shops use to sell a lot of clothing. Surfing-inspired clothing includes several popular brands that mainstream department stores and discounters don't carry -- leaving a nice market for surf shops. The shops also cater to skateboard fans; a niche closely related to surfing.
Use your core niche and brand image to sell related merchandise to a wider audience. You'll soon be riding a wave of retail store success.
Actual surfing gear is a tiny niche market. But it also conveys an image that 17th Street and other surf shops use to sell a lot of clothing. Surfing-inspired clothing includes several popular brands that mainstream department stores and discounters don't carry -- leaving a nice market for surf shops. The shops also cater to skateboard fans; a niche closely related to surfing.
Use your core niche and brand image to sell related merchandise to a wider audience. You'll soon be riding a wave of retail store success.
Sexy Advertising: GoDaddy
It's time to take another look at the state of sexy advertising. Today's we focus on the Go Daddy commercials, which star Candice Michelle in provocative and humorous bits. Let's consider how these GoDaddy ads do with our famous 3 tests for evaluating sexy ads to Go Daddy:
Do you remember what the ad sells? Or do you only remember the sex?
Yes, you remember the company. The "Go Daddy" name is used when referring to the ads and the girls. But do you know what GoDaddy sells? Maybe not.
Is the ad hot enough to be remarkable (literally)?
Yes, "Go Daddy commerical", "Go Daddy girl", and "Go Daddy Candice Michelle" girls are frequently used search engine queries, and the ads are discussed and linked from numerous blogs and websites.
Is the sexy ad part of a whole brand identity or just a one-off titillation?
Definitely a whole brand identity. The woman in the ads, Candice Michelle, has become the face of the business. That certainly humanizes a tech company providing a commodity service, and Go Daddy has obviously decided to sell the sizzle, not the steak.
Go Daddy should take care that their lovely model doesn't completely overshadow the business in this sexy advertising. They would be wise to make it clear that they sell domain name registration and webhosting services, even while the eye candy holds the audience's attention.
Do you remember what the ad sells? Or do you only remember the sex?
Yes, you remember the company. The "Go Daddy" name is used when referring to the ads and the girls. But do you know what GoDaddy sells? Maybe not.
Is the ad hot enough to be remarkable (literally)?
Yes, "Go Daddy commerical", "Go Daddy girl", and "Go Daddy Candice Michelle" girls are frequently used search engine queries, and the ads are discussed and linked from numerous blogs and websites.
Is the sexy ad part of a whole brand identity or just a one-off titillation?
Definitely a whole brand identity. The woman in the ads, Candice Michelle, has become the face of the business. That certainly humanizes a tech company providing a commodity service, and Go Daddy has obviously decided to sell the sizzle, not the steak.
Go Daddy should take care that their lovely model doesn't completely overshadow the business in this sexy advertising. They would be wise to make it clear that they sell domain name registration and webhosting services, even while the eye candy holds the audience's attention.
Carnival of Capitalists
Did you see us in the Carnival of Capitalists posted at the Social Customer Manifesto? Mine was the "spotlight post".
Thank you. Thank you very much.
Thank you. Thank you very much.
Customer Service, Dell, Yahoo, Flames and Blogs
On December 30, Jeremy Zawodny (who works for Yahoo) complained about Dell's customer service on his blog. The post was titled What the F--- is with Dell Technical Support?!. Well, Mr. Zawodny, from personal experience I can tell you that Yahoo customer service is just as f---ed as Dell's.
Jeremy recently purchased a Dell LCD monitor that arrived broken. In dealing with Dell's customer service he suffered through an hour-and-26-minute call to "a call center in India." He concludes by writing, "What fun. Why couldn't I have accomplished this all in 5 minutes on their web site? Wouldn't that be cheaper for them and easier for me?" Jeremy's awful experience is detailed on his blog for the world to see (Dell must be so proud).
I was amused to read Jeremy's flame of Dell because I was having my own problems with Yahoo web-hosting customer support. Mr. Zawodny's employer could give Dell lessons in annoying customers.
I've been a customer of Yahoo web hosting for about a year. My experience has been fine until recently when I tried to upgrade a domain-name I'd reserved with them to full web-hosting service. I'd created the content for the site and was ready to post it online.
For 10-days I tried (and failed) to upgrade the service.
The online upgrading process always ended with this message: "Order cancelled. There was a problem with your order due to network issues. Please try to place your order again." So my adventure with Yahoo customer service began:
* I emailed customer service, and a day later I was told that I had to call (not toll-free).
* I called. The rep (who sounded like she was in India) couldn't solve the problem and said a manager would call me back.
* Nobody called back.
* I emailed again and a day later I got a response that the problem was on my computer and I should clear my cache. (This is the standard response from all tech companies whose products don't work: the problem is the customer.)
* Clearing the cache didn't work. To verify that the problem wasn't on my computer, I tried the upgrade from a friend's computer and got the same result -- the problem was at Yahoo.
* I heard nothing from Yahoo for 2 more days, despite my daily emails.
* I emailed Mr. Zawodny (his contact information is on his blog) and asked him to use his insider influence to get someone knowledgeable to fix my problem.
* To his great credit, Jeremy emailed back within an hour or so and said he'd see what he could do.
* In another hour or so a Yahoo customer service rep called me. Not a minimal-wage-slave from India either -- an actual rep who knew what she was talking about. Jeremy's input obviously carries a lot more weight than a customer's.
Now, after 10 days, I knew why I couldn't upgrade my Yahoo web-hosting service. Was I happy? Not exactly.
The knowledgeable customer service rep told me that I'd reached the maximum number of websites that I was allowed to host at Yahoo. (!?!) That's right -- I was too good a customer. She told me I'd have to find another host for the new site. There was no question about payment (they happily bill my credit card every month) or anything else. Silliest self-imposed restriction on business I've ever heard of.
Yes, it took Yahoo ten days to tell me to f--- off. And if I hadn't asked for Jeremy's help, I would never have received an answer at all.
What lessons can businesses take from these customer service nightmares?
1. Train customer service reps to diagnose problems. Don't outsource to India if it's going to ruin customer service.
2. Respond quickly to email. 24-hours isn't fast enough.
3. Don't make online customers call. As Jeremy wrote, "Why couldn't I have accomplished this all in 5 minutes on their web site?"
4. An executive of your business (or several executives) should have blogs with contact information to serve as last-ditch alternatives to the official customer service channel.
5. Search blogs for flames from unhappy customers -- and act to correct the problems! You really can't afford to have a constant stream of bad publicity out there for the world to read.
6. Most importantly -- don't use Yahoo web-hosting.
Jeremy recently purchased a Dell LCD monitor that arrived broken. In dealing with Dell's customer service he suffered through an hour-and-26-minute call to "a call center in India." He concludes by writing, "What fun. Why couldn't I have accomplished this all in 5 minutes on their web site? Wouldn't that be cheaper for them and easier for me?" Jeremy's awful experience is detailed on his blog for the world to see (Dell must be so proud).
I was amused to read Jeremy's flame of Dell because I was having my own problems with Yahoo web-hosting customer support. Mr. Zawodny's employer could give Dell lessons in annoying customers.
I've been a customer of Yahoo web hosting for about a year. My experience has been fine until recently when I tried to upgrade a domain-name I'd reserved with them to full web-hosting service. I'd created the content for the site and was ready to post it online.
For 10-days I tried (and failed) to upgrade the service.
The online upgrading process always ended with this message: "Order cancelled. There was a problem with your order due to network issues. Please try to place your order again." So my adventure with Yahoo customer service began:
* I emailed customer service, and a day later I was told that I had to call (not toll-free).
* I called. The rep (who sounded like she was in India) couldn't solve the problem and said a manager would call me back.
* Nobody called back.
* I emailed again and a day later I got a response that the problem was on my computer and I should clear my cache. (This is the standard response from all tech companies whose products don't work: the problem is the customer.)
* Clearing the cache didn't work. To verify that the problem wasn't on my computer, I tried the upgrade from a friend's computer and got the same result -- the problem was at Yahoo.
* I heard nothing from Yahoo for 2 more days, despite my daily emails.
* I emailed Mr. Zawodny (his contact information is on his blog) and asked him to use his insider influence to get someone knowledgeable to fix my problem.
* To his great credit, Jeremy emailed back within an hour or so and said he'd see what he could do.
* In another hour or so a Yahoo customer service rep called me. Not a minimal-wage-slave from India either -- an actual rep who knew what she was talking about. Jeremy's input obviously carries a lot more weight than a customer's.
Now, after 10 days, I knew why I couldn't upgrade my Yahoo web-hosting service. Was I happy? Not exactly.
The knowledgeable customer service rep told me that I'd reached the maximum number of websites that I was allowed to host at Yahoo. (!?!) That's right -- I was too good a customer. She told me I'd have to find another host for the new site. There was no question about payment (they happily bill my credit card every month) or anything else. Silliest self-imposed restriction on business I've ever heard of.
Yes, it took Yahoo ten days to tell me to f--- off. And if I hadn't asked for Jeremy's help, I would never have received an answer at all.
What lessons can businesses take from these customer service nightmares?
1. Train customer service reps to diagnose problems. Don't outsource to India if it's going to ruin customer service.
2. Respond quickly to email. 24-hours isn't fast enough.
3. Don't make online customers call. As Jeremy wrote, "Why couldn't I have accomplished this all in 5 minutes on their web site?"
4. An executive of your business (or several executives) should have blogs with contact information to serve as last-ditch alternatives to the official customer service channel.
5. Search blogs for flames from unhappy customers -- and act to correct the problems! You really can't afford to have a constant stream of bad publicity out there for the world to read.
6. Most importantly -- don't use Yahoo web-hosting.
Largest Online Retailer Sets Record
Amazon.com Inc., the world's biggest online retailer, set a sales record
this Christmas season. Demand was led by iPods, video games and
jewelry. Shoppers bought more than 108 million items between November 1
and Christmas.
Online sales in the U.S. were expected to jump 24 percent from last-season's level to about $19 billion in November and December as the convenience of Internet shopping and free shipping continue to attract new consumers. The most popular goods on the Web include clothing, electronics and toys.
So what's keeping you from trying to retail online? You can start in a very simple way by selling through eBay or Amazon. Make it your New Year resolution.
Online sales in the U.S. were expected to jump 24 percent from last-season's level to about $19 billion in November and December as the convenience of Internet shopping and free shipping continue to attract new consumers. The most popular goods on the Web include clothing, electronics and toys.
So what's keeping you from trying to retail online? You can start in a very simple way by selling through eBay or Amazon. Make it your New Year resolution.
Retail Success: Willmar MN
Here's an article about retailers succeeding downtown in little Willmar, MN.
As always, finding a niche that avoids direct competition with the big
box discounters is a key. One shop does a thriving business online.
Retailing isn't rocket science, but its amazing how few retailers do it
well. It sounds like Willmar has some well run stores.
Retailing Experience
BusinessWeek has an article that is an effective synopsis of where retailing is headed. Smart retailers try to make their store a destination, a place where people choose to spend time, learn, or have fun.
A noted success that we've noted here before is the reinvention of clothing retailer Topshop from cheap teen brand to high street style-leader, helped by the Oxford Circus flagship store, which boasts style advisers, nail and beauty bars, and lifestyle events.
Selfridges is another famous example of experience retailing with its themed promotions, celebrity appearances and displays featuring aspects of contemporary art, culture, and design. Liberty stores take a more traditional approach focused upon filling shelves with products that are original and hard to come by. That's a strategy that all stores should use.
A noted success that we've noted here before is the reinvention of clothing retailer Topshop from cheap teen brand to high street style-leader, helped by the Oxford Circus flagship store, which boasts style advisers, nail and beauty bars, and lifestyle events.
Selfridges is another famous example of experience retailing with its themed promotions, celebrity appearances and displays featuring aspects of contemporary art, culture, and design. Liberty stores take a more traditional approach focused upon filling shelves with products that are original and hard to come by. That's a strategy that all stores should use.
Is there a future for small retail stores?
Ted Hurlbut has posted a thoughtful response to the question, "Is there a future for small retailing?" at Fresh Inc.
Focus, planning, decisiveness, execution, financial acumen, systems aptitude, employee empowerment, and moving forward. Don't let inertia keep your retail store from succeeding in 2006. Take steps now to change for the better.
Focus, planning, decisiveness, execution, financial acumen, systems aptitude, employee empowerment, and moving forward. Don't let inertia keep your retail store from succeeding in 2006. Take steps now to change for the better.
Sexy Internet Icons and Promotions
Veronika Zemanova
is a famous Internet icon with tremendous name recognition and a huge
following -- at least amongst men. Photos of the model are everywhere on
the net, even though she is no longer actively modeling. Ms. Zemanova's
popularity has potential commercial value, if harnessed in a
contructive way.
Jason Rothwell is attempting to cash in on Veronika Zemanova's fame by making her a centerpiece of his new film, Zemanovaload. The idea to use Ms. Zemanova's name and likeness to promote a small buget comedy film is clever. A ficitious model could've been used, but there wouldn't have been any potential buzz going that route. Is it ironic that an "old-media" movie is using a "new media" internet superstar for promotion?
Internet icons are powerful draws. How could one be used to promote your business? It's all part of the fine art of marketing to men.
Jason Rothwell is attempting to cash in on Veronika Zemanova's fame by making her a centerpiece of his new film, Zemanovaload. The idea to use Ms. Zemanova's name and likeness to promote a small buget comedy film is clever. A ficitious model could've been used, but there wouldn't have been any potential buzz going that route. Is it ironic that an "old-media" movie is using a "new media" internet superstar for promotion?
Internet icons are powerful draws. How could one be used to promote your business? It's all part of the fine art of marketing to men.
E-Commerce Non-Profit Fundraising
Non-profit organizations are using e-commerce retailing to raise money
for worthy causes. The Christian Appalachian Project in Kentucky
predicts it will raise $100,000 through online sales in the next year.
The non-profit launched GodsNet less than two months ago. Area residents
donate books and other items. Volunteers post them on Amazon.com and
mail them. They have more than 3,500 book titles for sale. All proceeds
are donated to Keep the Heat On, a program that helps poor people pay
their power bills.
EBay actively courts non-profit vendors. 6,500 non-profit organizations have raised $59 million through E-Bay's Giving Works program since it was launched about five years ago. Sellers who sign up with Giving Works aren't charged fees when they sell items online as long as 90 percent or more of the proceeds go to charity.
Retailing for the common good -- gotta love it. Read more in the article from the Lexington Herald-Leader.
EBay actively courts non-profit vendors. 6,500 non-profit organizations have raised $59 million through E-Bay's Giving Works program since it was launched about five years ago. Sellers who sign up with Giving Works aren't charged fees when they sell items online as long as 90 percent or more of the proceeds go to charity.
Retailing for the common good -- gotta love it. Read more in the article from the Lexington Herald-Leader.
Retailing in Jamaica
The challenges of retail management are different outside the United
States. How would you like to deal with extortion and a lack of public
order?
The Jamaica Gleaner has an interview with Micheal Ammar Sr. and Michael Ammar Jr. Their family name is synonymous with clothing and dry goods retailing in Jamaica.
The Jamaica Gleaner has an interview with Micheal Ammar Sr. and Michael Ammar Jr. Their family name is synonymous with clothing and dry goods retailing in Jamaica.
Attract shoppers with holiday retail events
The Downtown Holiday Open House
attracted hundreds of shoppers to the stores in downtown
Fredericksburg, Virginia. For 32 years the event has helped kick-off
seasonal sales in the historic city. Free parking at a new parking
garage was an added attraction. Merchants offered snacks and drinks, and
stores were well decorated.
Marilee Meek, president of Downtown Retail Marketing Inc. and co-owner of The Pavilion, said downtown stayed super busy.
"Every storekeeper had said that they have had a great day," she said yesterday afternoon.
Owner Ann Adkins said the open house weekend brings in the highest sales of the year for her Ladybug Gift Shop on Caroline Street.
Old Time Carriage Company owner Roger Evans said his business was "extremely busy."
What is your retail merchant association doing to make cash registers ring this holiday season? Get active. There's power (and money) in cooperation.
Where are retail's stars?
What retailing needs is a few "stars" -- retail industry leaders that
you can name off the top of your head. I doubt that most Americans could
name a single retailer now that Sam Walton is gone. Maybe Dave
Longaberger (oops ... also deceased) or Anita Roddick (from her days
with Body Shop). Paco Underhill is known in the industry but not
outside.
Why don't more retailers use their founder or CEO as the spokesperson for the company? It gives the business a human face and makes identifying with the company much easier. How much are Steve Jobs and Lee Iacocca worth as the public representatives of those firms?
Give your business your face. Self-promotion is good for retailers.
Why don't more retailers use their founder or CEO as the spokesperson for the company? It gives the business a human face and makes identifying with the company much easier. How much are Steve Jobs and Lee Iacocca worth as the public representatives of those firms?
Give your business your face. Self-promotion is good for retailers.
Retail and Kickball
The Washington Post has an article about kickball as a mating ritual.
Single folks in Washington DC play in a co-ed kickball league to get
hooked up. After the short game, everyone heads to the bar that sponsors
the league.
This is exactly the sort of thing I was getting at in my entertainment-retail post. People are eager for opportunities to have active fun. Throw in a chance to get a date ... all the better. Bars are the obvious candidates to benefit from this sort of thing, but retail stores could too. Just throw a party (reception?) in your store after the event.
This is exactly the sort of thing I was getting at in my entertainment-retail post. People are eager for opportunities to have active fun. Throw in a chance to get a date ... all the better. Bars are the obvious candidates to benefit from this sort of thing, but retail stores could too. Just throw a party (reception?) in your store after the event.
Retail Success: Old Town Root Beer Company
Old Town Root Beer Company in San Diego is a sweet retail success story.
Article from the North County Times. John Montgomery found a recipe for
root beer in an old family Bible, tried it, and liked it so much he
decided to open a root beer shop by his printing business. Five years
later, the family business manufactures 16 types of micro-brew sodas
sold through their 3 stores. They plan to open 30 more shops.
Unusual inventory is a fine recipe for success for any retailer: in addition to its own brews, Old Town sells brands like Virgil's (imported from Bavaria), Moxie, Gray's (established in 1856), and the original formulas of Coke, Squirt and 7UP. 40% of sales come from t-shirts, hats and western-themed sculptures.
Unusual inventory is a fine recipe for success for any retailer: in addition to its own brews, Old Town sells brands like Virgil's (imported from Bavaria), Moxie, Gray's (established in 1856), and the original formulas of Coke, Squirt and 7UP. 40% of sales come from t-shirts, hats and western-themed sculptures.
Retail Success: TopShop
Read about TopShop's Jane Shepherdson, "the most influential woman in British retail."
36-hour shop-a-thons. 7,000 lines of fashion clothes. Ordering 500,000 tank tops and selling them all in a week. Constant store updates. Home delivery. It's all part of the TopShop retailing success story.
Does it work? This year, in a British consumer downturn, TopShop made a profit of £100million.
36-hour shop-a-thons. 7,000 lines of fashion clothes. Ordering 500,000 tank tops and selling them all in a week. Constant store updates. Home delivery. It's all part of the TopShop retailing success story.
Does it work? This year, in a British consumer downturn, TopShop made a profit of £100million.
Friday, July 4, 2025
Dinostore discovered alive in Mississippi
Reeds of Tupelo, Mississippi is one of the last "dinostores" -- downtown
department stores left from another age of retailing. The Northeast
Mississippi Journal has a good long article about the store and the family that owns it.
Maybe the revitalization that's helped so many small downtowns across the nation will enable these retailers to survive and prosper. There certainly seems to be a niche available for upper-end stores in rural towns. The Peebles chain is one that has prospered in that role.
Maybe the revitalization that's helped so many small downtowns across the nation will enable these retailers to survive and prosper. There certainly seems to be a niche available for upper-end stores in rural towns. The Peebles chain is one that has prospered in that role.
Entertainment-Retail
This isn't strictly a retailing story, but I find it a fascinating commentary on business success in America today -- Headrush Inc.
starts construction next week on a $15 million expansion of its
paintball park and BMX track in Syracuse, New York. $15 million!
The existing 31,000 square foot building gets upgraded paintball fields, an arcade, a full kitchen and a 12,500 square foot addition that will include an indoor skatepark. A new 50,000 square foot building will house an indoor supercross track and a retail outlet for bikes, ATVs, jet skis and more. The facility will also provide an outdoor motocross track for racing during the summer months.
A 87-room Wingate hotel at the park will have conference facilities for big events. The hotel is a convenience for traveling teams and for players attending large events at the park.
"Experiences" and physical play are growth fields that are untapped in much of the nation. Can your retail business experiment by setting up a few events or by integrating entertainment like American Girl does? (Headrush sells franchises for those intrigued by this specific opportunity.)
The existing 31,000 square foot building gets upgraded paintball fields, an arcade, a full kitchen and a 12,500 square foot addition that will include an indoor skatepark. A new 50,000 square foot building will house an indoor supercross track and a retail outlet for bikes, ATVs, jet skis and more. The facility will also provide an outdoor motocross track for racing during the summer months.
A 87-room Wingate hotel at the park will have conference facilities for big events. The hotel is a convenience for traveling teams and for players attending large events at the park.
"Experiences" and physical play are growth fields that are untapped in much of the nation. Can your retail business experiment by setting up a few events or by integrating entertainment like American Girl does? (Headrush sells franchises for those intrigued by this specific opportunity.)
Retailers can learn from Wal-Mart
Wal-Mart has had a long run of bad publicity, but now the retail giant is trying to polish its image.
Wal-Mart announced Monday that it will add a new health care plan for
workers, reward environment-friendly suppliers, and reduce its energy
use. Wal-Mart says its full-time workers are paid an average of $9.68 an
hour.
How does your little retail business stack up on social and environmental issues? If you pay your employees well and provide health care coverage, publicize that fact! Put up a discreet poster explaining how you treat your "associates" well. And what are you doing to lessen your impact on the environment? Recycling cardboard boxes? Installed efficient HVAC, natural lighting, or solar hot water heating? Let people know. Wal-Mart does.
How does your little retail business stack up on social and environmental issues? If you pay your employees well and provide health care coverage, publicize that fact! Put up a discreet poster explaining how you treat your "associates" well. And what are you doing to lessen your impact on the environment? Recycling cardboard boxes? Installed efficient HVAC, natural lighting, or solar hot water heating? Let people know. Wal-Mart does.
Dinostore discovered alive in Mississippi
Reeds of Tupelo, Mississippi is one of the last "dinostores" -- downtown
department stores left from another age of retailing. The Northeast
Mississippi Journal has a good long article about the store and the family that owns it.
Maybe the revitalization that's helped so many small downtowns across the nation will enable these retailers to survive and prosper. There certainly seems to be a niche available for upper-end stores in rural towns. The Peebles chain is one that has prospered in that role.
Maybe the revitalization that's helped so many small downtowns across the nation will enable these retailers to survive and prosper. There certainly seems to be a niche available for upper-end stores in rural towns. The Peebles chain is one that has prospered in that role.
Entertainment-Retail
This isn't strictly a retailing story, but I find it a fascinating commentary on business success in America today -- Headrush Inc.
starts construction next week on a $15 million expansion of its
paintball park and BMX track in Syracuse, New York. $15 million!
The existing 31,000 square foot building gets upgraded paintball fields, an arcade, a full kitchen and a 12,500 square foot addition that will include an indoor skatepark. A new 50,000 square foot building will house an indoor supercross track and a retail outlet for bikes, ATVs, jet skis and more. The facility will also provide an outdoor motocross track for racing during the summer months.
A 87-room Wingate hotel at the park will have conference facilities for big events. The hotel is a convenience for traveling teams and for players attending large events at the park.
"Experiences" and physical play are growth fields that are untapped in much of the nation. Can your retail business experiment by setting up a few events or by integrating entertainment like American Girl does? (Headrush sells franchises for those intrigued by this specific opportunity.)
The existing 31,000 square foot building gets upgraded paintball fields, an arcade, a full kitchen and a 12,500 square foot addition that will include an indoor skatepark. A new 50,000 square foot building will house an indoor supercross track and a retail outlet for bikes, ATVs, jet skis and more. The facility will also provide an outdoor motocross track for racing during the summer months.
A 87-room Wingate hotel at the park will have conference facilities for big events. The hotel is a convenience for traveling teams and for players attending large events at the park.
"Experiences" and physical play are growth fields that are untapped in much of the nation. Can your retail business experiment by setting up a few events or by integrating entertainment like American Girl does? (Headrush sells franchises for those intrigued by this specific opportunity.)
Retailers can learn from Wal-Mart
Wal-Mart has had a long run of bad publicity, but now the retail giant is trying to polish its image.
Wal-Mart announced Monday that it will add a new health care plan for
workers, reward environment-friendly suppliers, and reduce its energy
use. Wal-Mart says its full-time workers are paid an average of $9.68 an
hour.
How does your little retail business stack up on social and environmental issues? If you pay your employees well and provide health care coverage, publicize that fact! Put up a discreet poster explaining how you treat your "associates" well. And what are you doing to lessen your impact on the environment? Recycling cardboard boxes? Installed efficient HVAC, natural lighting, or solar hot water heating? Let people know. Wal-Mart does.
How does your little retail business stack up on social and environmental issues? If you pay your employees well and provide health care coverage, publicize that fact! Put up a discreet poster explaining how you treat your "associates" well. And what are you doing to lessen your impact on the environment? Recycling cardboard boxes? Installed efficient HVAC, natural lighting, or solar hot water heating? Let people know. Wal-Mart does.
Retail Success Story - Apple
Apple has announced it will open up to 40 new retail stores next year. Average quarterly revenue per store is $5.7 million. It has sold 202,000 Macs through its retail outlets.
Most impressively, the company says that 45% of those buying Macs from its retail outlets are new to the platform. The stores are evangelical outposts, converting heathen Windows-users to the Way.
The brand's "cult" status is strengthened by the huge success of Apple's Genius Bar, Studio and free seminars in the stores. Physical contact with a brand's devotees is a sure-fire way to cement loyalty. As Douglas Atkin says, culting is a contact sport.
Computers and mp3 players are commodity items for most manufacturers, but not for Apple.
Most impressively, the company says that 45% of those buying Macs from its retail outlets are new to the platform. The stores are evangelical outposts, converting heathen Windows-users to the Way.
The brand's "cult" status is strengthened by the huge success of Apple's Genius Bar, Studio and free seminars in the stores. Physical contact with a brand's devotees is a sure-fire way to cement loyalty. As Douglas Atkin says, culting is a contact sport.
Computers and mp3 players are commodity items for most manufacturers, but not for Apple.
Williams-Sonoma Roots
The Seattle Times has an article about Chuck Williams and the kitchenware business he started:
Williams-Sonoma. Mr. Williams was on a two-week vacation trip to Paris
in 1953 that he got the idea for an upscale kitchenware store.
Williams-Sonoma now has $2.8 billion in annual sales.
Big chains from little pots grow.
Big chains from little pots grow.
Sexy advertising: Sports by Brooks
Sports by Brooks
is a small Los Angeles event promotions and weblog business. It has
unblushingly made sexy women an integral part of its brand image. This
promotional strategy is appropriate and relevant because the company
targets young men and attempts to draw them into the bars it promotes.
The SportsbyBrooks girls are so popular that the business has spread its
services to New York and Europe.
Let's apply our 3 tests for evaluating sexy ads to Sports by Brooks:
Do you remember what the ad sells? Or do you only remember the sex?
Yes, definitely. The "SportsbyBrooks" name is always used when referring to the girls.
Is the ad hot enough to be remarkable (literally)?
Yes, SportsbyBrooks girls are a frequently used search engine query, and the girls are linked from numerous other blogs and websites.
Is the sexy ad part of a whole brand identity or just a one-off titillation?
Certainly a whole brand identity. The girls are always present at Sports by Brooks events.
This company scores 100% on our sexy advertising test. Other small businesses that target young men can learn from this example.
Let's apply our 3 tests for evaluating sexy ads to Sports by Brooks:Do you remember what the ad sells? Or do you only remember the sex?
Yes, definitely. The "SportsbyBrooks" name is always used when referring to the girls.
Is the ad hot enough to be remarkable (literally)?
Yes, SportsbyBrooks girls are a frequently used search engine query, and the girls are linked from numerous other blogs and websites.
Is the sexy ad part of a whole brand identity or just a one-off titillation?
Certainly a whole brand identity. The girls are always present at Sports by Brooks events.
This company scores 100% on our sexy advertising test. Other small businesses that target young men can learn from this example.
Retail Store Blogging - to host or comment?
A recent article
from the USA Today highlighted some of the many retail stores that are
setting up their own blogs. The companies included were BlueFly,
eHobbies and GourmetStation. Setting up your own blog is a good idea if
you have a steady flow of new products or the occasional clearance item
to promote ... and you do, don't you? If not, then you have a lot more
to concern yourself with than a blog.
You don't have to have your own blog to take advantage of blog-mania. Use blog search engines to regularly check on your company name and topics in your industry. When a blog entry appears that relates to you or your industry, make a comment on the blog! Make a useful comment and leave a link to your website.
You don't have to have your own blog to take advantage of blog-mania. Use blog search engines to regularly check on your company name and topics in your industry. When a blog entry appears that relates to you or your industry, make a comment on the blog! Make a useful comment and leave a link to your website.
Carnival of Capitalists
The latest Carnival of Capitalists roundup of business and economics blog entries is at Weekend Pundit.
There are 7 entries under the category of retailing and marketing. Be
sure to read about the Andre Agassi Foundation and the good work it
supports. Enjoy.
Christie Brinkley: the perfect Baby Boomer spokesmodel
Christie Brinkley, at age 51, will again be the face of Cover Girl
cosmetics. That's a stroke of genius for the brand -- Brinkley is the
perfect pitch-person for cosmetics aimed at aging Baby Boomers. She's a
healthy, beautiful mom who fits right in the middle of the Boomer
demographic (she's 10 years older than the youngest Boomers).
Ms. Brinkley had a long association with Cover Girl in her younger years. The company will play off that connection to build a strong brand image in the minds of wannabe "Boomer babes".
The Independent writes:
Ms. Brinkley had a long association with Cover Girl in her younger years. The company will play off that connection to build a strong brand image in the minds of wannabe "Boomer babes".
The Independent writes:
Brinkley has continued to pop up here and there, sometimes on the less-than-glamorous sets of late-night television infomercials. She may still be a stunner - she recently told Good Housekeeping magazine that she maintained her looks without Botox or other cosmetic surgery aids - but there was no hint that her modelling career was anything other than in the past.
"CoverGirl is part of my DNA and I'm thrilled to be back with 'family'," she gushed in the official press statement last nght. "I'm excited to promote a new product developed specifically for women like me, who want flawless coverage combined with the latest science in skincare." And the industry is intrigued. "Her public perception as a mother is very strong," says Andrew Sacks, president of AgencySacks, a Manhattan-based advertising agency. "People like her. There's not a diva association. For a very wholesome American brand, it's a perfect match." But CoverGirl has broken the mould before - the hardly lithe Queen Latifah already models for the company.
Is
there any better spokesmodel for a Boomer beauty product? Christie
Brinkley was one of the original "supermodels" who became a household
name with men and women after appearing in the Sports Illustrated
swimsuit issues and a multitude of ads. Maybe she'll now be the first
50+ supermodel.
Wealth Creation and Destruction - don't throw it away
Wealth is created every time value is added to a product or service.
General Motors forms metal and plastic into cars, transforming cheap raw
materials into expensive autos. Value is added and wealth is created.
Everyone understands that.
What doesn't occur to many people is that when we junk that car, value is subtracted and wealth is destroyed. A valuable vehicle becomes raw materials and landfill.
In fact, everything we throw away, consume or burn is wealth destroyed. A beer bottle has value as a container until the beer is consumed and the bottle is chucked in the trash. Gasoline has value as "stored energy" until we burn it.
The wealth of an economy is constantly changing. It increases as new value is added. It decreases when we use stuff up.
It's easy to see how manufacturers create wealth, but retailers create wealth too. Value is added to a store's inventory by bringing it to the customers and by holding it until the customers are ready to buy. Most of the time the retailer doubles the value of the inventory (as reflected in the difference between the wholesale and retail prices).
Do retailers also destroy wealth? Yes. Merchandise arrives in cartons, which we throw away. Wealth destroyed. Light fixtures use electricity. Wealth destroyed.
We can all help increase the total wealth of our economy by slowing the destruction of wealth. Install efficient lighting and HVAC units. Encourage wholesalers and manufacturers to ship merhandise in reusable containers. And most importantly -- sell products that are long-lasting and retain their value.
What doesn't occur to many people is that when we junk that car, value is subtracted and wealth is destroyed. A valuable vehicle becomes raw materials and landfill.
In fact, everything we throw away, consume or burn is wealth destroyed. A beer bottle has value as a container until the beer is consumed and the bottle is chucked in the trash. Gasoline has value as "stored energy" until we burn it.
The wealth of an economy is constantly changing. It increases as new value is added. It decreases when we use stuff up.
It's easy to see how manufacturers create wealth, but retailers create wealth too. Value is added to a store's inventory by bringing it to the customers and by holding it until the customers are ready to buy. Most of the time the retailer doubles the value of the inventory (as reflected in the difference between the wholesale and retail prices).
Do retailers also destroy wealth? Yes. Merchandise arrives in cartons, which we throw away. Wealth destroyed. Light fixtures use electricity. Wealth destroyed.
We can all help increase the total wealth of our economy by slowing the destruction of wealth. Install efficient lighting and HVAC units. Encourage wholesalers and manufacturers to ship merhandise in reusable containers. And most importantly -- sell products that are long-lasting and retain their value.
Why you read and write retail business blogs
At Inc. magazine, Hillary Johnson has an article about "Why I read
business blogs". This paragraph about a retailer's blog is great:
Build your retail business with a blog. Give it a try. What do you have to lose? You can create one free right here at Blogger.
It's done the same for a lot of small-business owners. A friend turned me on to a blog by a mother-daughter team who operate the Cracked Cauldron, a bakery in Oklahoma City. Aside from posting snapshots of yeast formulas as if they were baby pictures, the owners have blogged their personal journey, freely discussing how they used to be homeless and what led them to want to start a bakery. They didn't have any expectations when they began their blog, but through it they found a retail space, connected with suppliers, attracted customers, and started correspondences with other entrepreneurs from as far away as Ghana.
Build your retail business with a blog. Give it a try. What do you have to lose? You can create one free right here at Blogger.
Retail success: Pearl Paradise
Here's an excellent entrepreneurial success story from the Wall Street
Journal: Jeremy Shepherd was a flight attendant for Northwest Airlines
on a layover in Beijing. He bought a set of freshwater pearl jewelry at a
local market -- earrings, a bracelet, and a necklace -- for $20 and
later learned was worth $600 in the U.S. Jeremy was in business. Nine
years later PearlParadise.com,
offering a wide line of jewelry from the popular akoya pearls to the
more exotic Tahitian and South Sea varieties. Shepherd had $5 million in
sales last year, supplying the jewelry to 13 other Web sites that sell
pearls around the globe.
Sexy ads: Lingo
This isn't a retail ad, but I couldn't resist commenting. What was Lingo
thinking when it approved this Internet banner ad? (I chopped it in
half to fit this page).
The "Lingo sutra"? Position 69? Cartoon babes?
Just what do sexy drawings and suggestive copy have to do with Internet telephony? Nothing. Click through to their website and you won't find any more positions or drawings. No follow-through. No whole brand image. Nothing.
The "Lingo sutra"? Position 69? Cartoon babes?
Just what do sexy drawings and suggestive copy have to do with Internet telephony? Nothing. Click through to their website and you won't find any more positions or drawings. No follow-through. No whole brand image. Nothing.
E-commerce turns 10
Ten years ago the first e-commerce sites came online. The Washington Post takes a look at the current state of Internet retailing.
Excluding travel, online sales in the United States grew 24 percent
last year, to about $90 billion, accounting for nearly 5 percent of all
retail sales, according to the National Retail Federation. Highly
specialized companies like Batteries.com and BBQGuys.com offer huge
selections in narrow niches. Nine companies had e-commerce sales of more
than $1 billion in 2004.
Online retailing is growing up. Find your own niche and expand your market.
Online retailing is growing up. Find your own niche and expand your market.
Sexy Advertising: Paris Hilton and the 3 tests
The sexy Paris Hilton ads haven't made Hardees burger sales jump. This, of course, doesn't surprise us. As we spelled out in our 3 tests for evaluating sexy ads,
sexy ads do capture attention and generate word-of-mouth. But to be
effective, the ads need relevance and should be part of a whole brand
image.
Is Paris Hilton and her "slutty heiress" act relevant to burgers? No. A thousand times no. You wouldn't want her near your food unless she'd washed up really well. Who knows where those hands have been? The ad probably chased away as many women as it attracted men.
Is the ad part of a whole brand image? Hardees is targeting young men, but none of their other ads feature rich girls gone wild. No.
The Reef girls are still my standard for sexy ad effectiveness. They promote the product, not themselves. The ads are hot enough to be (literally) remarkable. And they are part and parcel of the overall Reef brand.
Is Paris Hilton and her "slutty heiress" act relevant to burgers? No. A thousand times no. You wouldn't want her near your food unless she'd washed up really well. Who knows where those hands have been? The ad probably chased away as many women as it attracted men.
Is the ad part of a whole brand image? Hardees is targeting young men, but none of their other ads feature rich girls gone wild. No.
The Reef girls are still my standard for sexy ad effectiveness. They promote the product, not themselves. The ads are hot enough to be (literally) remarkable. And they are part and parcel of the overall Reef brand.
Lagniappes, bakers dozens and win a vacation
Freebies have a long and distinguished history of attracting shoppers to
retail stores. When I worked for Toys R Us, "R Treat" freebie boxes
were one of the most popular and effective promotions for bringing
customers into the store. Shoppers love to get something free with their
purchase. Give a little bit to get a lot of business in return.
The bakers dozen is an early example of the practice. It seems to date back to the colonial-era at least. I had no idea that baking was such a a touchy and dangerous profession.
A lagniappe is "a small gift presented by a storeowner to a customer with the customer's purchase." It's a Louisana French term still used often in New Orleans. Lagniappes work for retailers at all price levels. While price-reductions can damage the brand image of a luxury retailer, a lagniappe is a touch of class appropriate in even the toniest of establishments.
A less effective marketing tactic for a retailer is the "win a vacation" promotion. Big give-away contests work well for cities that are attracting attention to tourism opportunities, and travel-related businesses use it to good effect too. But these contests aren't really relevant to a shopping experience, and the slim chance of winning probably won't draw new customers to a store.
When Amazon was getting started, it created a lot of positive buzz by including freebies such as coffee mugs and bookmarks in the delivery box with the books. Customers loved it.
Give your customers something small that's related to your business when they make a purchase. You'll score big points and generate repeat purchases.
The bakers dozen is an early example of the practice. It seems to date back to the colonial-era at least. I had no idea that baking was such a a touchy and dangerous profession.
A lagniappe is "a small gift presented by a storeowner to a customer with the customer's purchase." It's a Louisana French term still used often in New Orleans. Lagniappes work for retailers at all price levels. While price-reductions can damage the brand image of a luxury retailer, a lagniappe is a touch of class appropriate in even the toniest of establishments.
A less effective marketing tactic for a retailer is the "win a vacation" promotion. Big give-away contests work well for cities that are attracting attention to tourism opportunities, and travel-related businesses use it to good effect too. But these contests aren't really relevant to a shopping experience, and the slim chance of winning probably won't draw new customers to a store.
When Amazon was getting started, it created a lot of positive buzz by including freebies such as coffee mugs and bookmarks in the delivery box with the books. Customers loved it.
Give your customers something small that's related to your business when they make a purchase. You'll score big points and generate repeat purchases.
A renegade retools retail?
Last month, Evan Cole opened H. D. Buttercup, a 100,000-square-foot retail experiment
in Los Angeles. The store operates like one of those antiques "malls"
that are scattered about the country. Home furnishings manufacturers
place their merchandise in the store, and Buttercup keeps 30- to
50-percent of sales as commission. Buttercup provides the sales staff
and collects the money.
Cole is in business without owning any inventory, which is a neat trick. The furnishings manufacturers get control over the sales floor -- what's for sale and how it's displayed. Sounds like a good deal for both parties.
There are some potential pitfalls ... the main one being that the manufacturers might display merchandise that nobody wants.
Selling on commission isn't really anything new, of course. It's common in art galleries. It will be interesting to see how it works in the furniture industry. It works best with high-price, high-margin retailing.
Cole is in business without owning any inventory, which is a neat trick. The furnishings manufacturers get control over the sales floor -- what's for sale and how it's displayed. Sounds like a good deal for both parties.
There are some potential pitfalls ... the main one being that the manufacturers might display merchandise that nobody wants.
Selling on commission isn't really anything new, of course. It's common in art galleries. It will be interesting to see how it works in the furniture industry. It works best with high-price, high-margin retailing.
Brands come and go, and so can stores
Retailers are beginning to realize that if brands and products can come
and go, then so can stores. That's the concept behind temporary "pop-up"
stores. We've mentioned them before, but Nigel Collett takes a fresh
look at this retail phenomenon in The New Look in Retail Design - Popping Up in a Street Near You.
The planned spontaneity of the stores gives a fresh feel and exclusivity to brands which today's "want it new and want it now" consumer enjoys.
Have you considered a "pop-up" branch to your retail store? You might generate excellent income from a temporary shop in a seasonal resort, or as a market test in a community you'd like to enter.
The planned spontaneity of the stores gives a fresh feel and exclusivity to brands which today's "want it new and want it now" consumer enjoys.
Have you considered a "pop-up" branch to your retail store? You might generate excellent income from a temporary shop in a seasonal resort, or as a market test in a community you'd like to enter.
Print catalogs generate profits for niche retailers
Print catalogs aren't dead. In fact they're growing impressively. Sales
from print catalogs are expected to hit $152 billion this year, up from
$143 billion in 2004. Multi-channel retailing is the state of the
industry now.
"The Web site is a passive channel. The mail order catalog is an assertive channel. You decide you're going to call on someone," said Jim Padgitt, president of Direct Marketing Insights Inc., a catalog marketing consulting firm in Charleston, S.C. Plus, catalogs have staying power. Nearly six out of 10 catalog shoppers keep a catalog that they order from for at least three months, Blankenship said.Go slowly and avoid common mistakes like selling commodity merchandise, mailing too many catalogs, presenting too little information or being caught short of merchandise. More from the article in the Chicago Tribune.
Retail Success: Costco in Canada
The Globe and Mail has an article about how Costco breaks the rules of retailing
... and profits from it. It offers little customer service and few
product choices; it piles products high on pallets and doesn't bother to
mine the customer data it collects.
Costco has warehouse-style stores, an unpredictable stock of often unique, upscale items, low prices and membership fees for the privilege of shopping at the stores.
There are profits to be made with a wide variety of retail business strategies. Success is in the execution. Small retailers will do better to learn from how well Costco treats its employees than from its low price strategy. Little guys will find it hard to survive in the discount, commodity product world.
Costco has warehouse-style stores, an unpredictable stock of often unique, upscale items, low prices and membership fees for the privilege of shopping at the stores.
There are profits to be made with a wide variety of retail business strategies. Success is in the execution. Small retailers will do better to learn from how well Costco treats its employees than from its low price strategy. Little guys will find it hard to survive in the discount, commodity product world.
Juice worth the squeeze
Rick Segel has a blog with real nuts-and-bolts tips on running a retail business. Rick is the author of Retail Business Kit for Dummies and is an excellent speaker.
His latest blog entry is titled "Is the juice worth the squeeze?" The article is definitely "juice" worth the squeeze. Give it a look.
His latest blog entry is titled "Is the juice worth the squeeze?" The article is definitely "juice" worth the squeeze. Give it a look.
Retail Success Story: Perfume Bay
How's this for a retailing success story? An immigrant family starts by
helping selling perfume and cosmetics at a local swap meet. They get
their own flea market booth, then take out a lease on a store. Then 2
stores and a wholesale operation. Next came Internet retailing. The
online store grossed more than $6 million in 2004.
That's the growth path followed by the Tran family and Perfume Bay. Read about them on CNNMoney.
That's the growth path followed by the Tran family and Perfume Bay. Read about them on CNNMoney.
Retail Marketing: Big Opportunity
The Washington Post reports that plus-size apparel sales last year rose
13.2 percent, and teen plus-size rose 14.2 percent, compared with 5.6
percent for all women's clothes. Yet those shoppers feel belittled or ignored by retailers. Tell me you see an opportunity here. Of course you do.
Why is this growing market not getting the attention it deserves? Probably because the people in management positions in any business tend to be tall and fit, and they stock inventory to suit themselves. Malcolm Gladwell wrote about the type of people who get promoted in his latest book, Blink.
The big-people market is growing. In 2002, 16 percent of teens were considered overweight, more than triple the figure in 1980. The average woman in her twenties weighs almost 29 pounds more than women did in 1960, according to the Centers for Disease Control and Prevention.
You can be a hero (and make big bucks) by offering stylish clothes for sale to plus-size buyers. It's big niche that's hungry to be served.
Why is this growing market not getting the attention it deserves? Probably because the people in management positions in any business tend to be tall and fit, and they stock inventory to suit themselves. Malcolm Gladwell wrote about the type of people who get promoted in his latest book, Blink.
The big-people market is growing. In 2002, 16 percent of teens were considered overweight, more than triple the figure in 1980. The average woman in her twenties weighs almost 29 pounds more than women did in 1960, according to the Centers for Disease Control and Prevention.
One company that has worked hard to make shoppers feel that they belong is Torrid. The four-year-old California chain has made its name catering to trendy women sizes 12 to 26. Torrid operates 91 stores nationwide and plans to open 30 more by the end of this year."There's a real stigma against fat for the fashion world," said Laurie Henzel, the creative director of Bust magazine, a small-circulation glossy with a feminist bent. It is one of the few magazines to frequently feature plus-size models in fashion shoots.
Asked about H&M's decision to phase out BiB, from which she borrowed samples when she had a plus-size shoot, Henzel said, "I can only imagine [they thought] it wasn't cool enough for them."
You can be a hero (and make big bucks) by offering stylish clothes for sale to plus-size buyers. It's big niche that's hungry to be served.
Retail Trends and the Boomer Convergence
An interesting report on trends in retailing appeared recently in the Christian Science Monitor. In Anatomy of a Shopper, Clayton Collins wrote ...
A push from two demographic dynamos - boomers buying younger (and with more attention to environmental sustainability), tweens and teens buying older and savvier - that will hold purveyors of goods and services to a new level of performance and accountability, experts say.
And that amounts to a big opening for smaller, niche stores that have the flexibility to tweak product offerings in ways that megastores - tied to big-volume suppliers - cannot, experts say.
In both apparel and food, "the most significant growth is happening in the second- or third-tier players," says Paco Underhill, marketing consultant and author of "Why We Buy: The Science of Shopping."
"Some of them are local grocery-store chains, whether it's Publix or HEB in Texas, people who somehow have some sense of local pulse.... Local players can play local, particularly if it's for produce or [other] food products," he says. "They also can provide something that's different."
Consumers appear to be willing to pay for that difference. Price still matters - healthcare, college, and other costs have taken big bites out of many wallets - but it's not as important as it has been.
"There is this other side of a shopper that says it's hard work getting the lowest price every day," says Ms. Corlett. "A surprisingly large minority," 46 percent, of consumers polled by WSL for its recent How America Shops report said that finding the lowest price on goods and groceries was not always a top concern.
And this ...
For many, holistic living also means buying with an awareness of how their purchases affect others. Some cite the rise of the so-called LOHAS movement - lifestyles of health and sustainability - as a sign that mainstream consumers are exhibiting more of that awareness, choosing to do business with firms that demonstrate an awareness of environmental and fair-labor practices.
Here, too, they are willing to pay more, even when doing so is not easy. The core of this values-driven group is comprised of 35- to 64-year-olds, according to the Natural Marketing Institute. Some 60 percent of them are baby boomers.
"They cannot be characterized as wealthy boomers," says Brent Green, who runs Brent Green and Associates in Denver. "When they say they are willing to pay 20 percent or more because of environmental sustainability, that's not necessarily financially convenient."
Nor do they represent a counterculture fringe. "Not when you're looking at 32 percent of all US adults," says Mr. Green, who adds that adding the consumer subset he calls "nomadics" - inclined toward sustainable purchasing but not fully committed - brings the total to some 100 million Americans.
"You wouldn't describe them as necessarily activist in the sense of 'save the whales,' " says Green, "but rather in their purchasing decisions and in their propensity to influence other people."
It appears to me that the Baby Boomers
and the Echo Boomers are moving in surprisingly similar directions when
it comes to retail trends.
The aging Baby Boomers are
(predictably) spending more on health and comfort as they resist the
detrimental effects of getting older. They also are reliving their youth
by regaining some of the social sensibilities that they held so
famously in the 1960s and 70s.
The Echo Boomers are a
demographic group that's just as large as the original Baby Boom. What's
interesting is that they seem to already be where the Baby Boomers are
heading. They're already healthy -- many of them reject the couch-spud
lifestyle (this is why television ratings and spectator sports
attendance are faltering) and have driven growth in mountain biking,
surfing, snowboarding and other active sports. They also eat healthy --
look at all the interest in whole foods and veganism. That's why
McDonalds is stagnating. The social sensibilities are there too --
American Apparel's success is evidence.
This is important,
change-the-world stuff. Big demographic trends like these move the
economy for years and propel businesses that are in tune with the trend.
Organic, reusable, low-impact, sustainable, efficient, sweat-shop free, American-made, locally-grown, and in line with local expectations. That's where the market is headed, and that's how you can do "good" for the world as a retailer. Doing well by doing good ... what a concept.
Retail Marketing: Playboy mates with brand store trend
Playboy Enterprises, Inc. has opened its first freestanding Playboy
Concept Boutique in the United States at The Forum Shops at Caesars in
Las Vegas. The 2,000 square-foot store offers a collection of Playboy
apparel, accessories and lingerie. The Las Vegas location also will
offer one-of-a-kind Playboy memorabilia items, select artwork, and
vintage product from Playboy's vast archives. The store will be a
template for Playboy's future stores, as well as retail concessions and
lingerie areas.
"Playboy strategically selected the Forum Shops at Caesars in Las Vegas to debut our first U. S. store because it is one of the most successful retail shopping destinations in the world, in one of the most visited cities in the world," commented Christie Hefner, Chairman and CEO of Playboy Enterprises, Inc. "With our Playboy Boutique and the opening of our Playboy branded entertainment-destination in Las Vegas in early '06, it is clear that Playboy and Las Vegas are a powerful match, presenting the chance for consumers and visitors to experience all of the glamour, sexiness, style and fun associated with both."
The Playboy Boutique, whose concept was developed by the WalkerGroup, offers a unique shopping experience to Playboy fans. ids architects, inc. who have also developed stores for brands such as Rolex and LeSportsac was responsible for the store design. Unlike traditional retailers, the Playboy "Concept" boutique emphasizes a design-driven look, inspired by the spirit of the Playboy brand and representing concepts inherent to the iconic brand. Its fixturing was purpose-developed for Playboy, making the architectural elements "concepts" unto themselves, with furniture and fixtures inspired by Playboy iconography, such as cufflink-detailed tables and Rabbit Head chairs.
Other design details that enable shoppers to immerse themselves in the Playboy lifestyle include, a plasma-screen video wall featuring archival and contemporary footage and a customized pebble cash-point countertop inspired by rocks from the Playboy Mansion Grotto. Evoking the sexiness of the Playboy brand a stand-alone lingerie area sells Playboy's "Pink Label" and will house Playboy's sophisticated "White Label" lingerie collections, showcased on the mirrored tile walls and complimented with satin quilted upper walls. The memorabilia area of the boutique offers one-of-a-kind artifacts for sale from Playboy archives and Hugh Hefner's personal memorabilia collection, including his pipe and slippers, vintage Bunny Costumes, and paintings and sketches from Alberto Vargas and LeRoy Neiman, respectively all showcased in museum-style cases.
The first U.S. retail location follows Playboy's successful 2002 launch of its freestanding Playboy Tokyo fashion boutique, which in was recognized as one of 40 top stores in the world by the Retail Leaders Association. The Las Vegas opening also leverages Playboy's expansion at retail in specialty stores and leading department stores throughout the United States, Asia and Europe. Retail stores that have carried Playboy fashion merchandise include Henri Bendel in New York, Colette in Paris, Selfridges in London, and Seibu in Hong Kong. The next freestanding Playboy store, a 2,300 square-foot store on Chapel Street, Melbourne, one of Australia's premier fashion areas, will open in fall 2005.
Playboy's branded line of licensed fashion and consumer products has experienced growth at retail since its repositioning in 1999, with a product offering that includes men's and women's fashion apparel and accessories, underwear, legwear, outerwear and footwear, as well as home furnishings and lifestyle and entertainment products. Playboy's licensed products business as a whole now generates in excess of $500 million in global retail sales in more than 130 countries and territories.
Branded merchandise sells. Sexy sells. What more can we say?
"Playboy strategically selected the Forum Shops at Caesars in Las Vegas to debut our first U. S. store because it is one of the most successful retail shopping destinations in the world, in one of the most visited cities in the world," commented Christie Hefner, Chairman and CEO of Playboy Enterprises, Inc. "With our Playboy Boutique and the opening of our Playboy branded entertainment-destination in Las Vegas in early '06, it is clear that Playboy and Las Vegas are a powerful match, presenting the chance for consumers and visitors to experience all of the glamour, sexiness, style and fun associated with both."
The Playboy Boutique, whose concept was developed by the WalkerGroup, offers a unique shopping experience to Playboy fans. ids architects, inc. who have also developed stores for brands such as Rolex and LeSportsac was responsible for the store design. Unlike traditional retailers, the Playboy "Concept" boutique emphasizes a design-driven look, inspired by the spirit of the Playboy brand and representing concepts inherent to the iconic brand. Its fixturing was purpose-developed for Playboy, making the architectural elements "concepts" unto themselves, with furniture and fixtures inspired by Playboy iconography, such as cufflink-detailed tables and Rabbit Head chairs.
Other design details that enable shoppers to immerse themselves in the Playboy lifestyle include, a plasma-screen video wall featuring archival and contemporary footage and a customized pebble cash-point countertop inspired by rocks from the Playboy Mansion Grotto. Evoking the sexiness of the Playboy brand a stand-alone lingerie area sells Playboy's "Pink Label" and will house Playboy's sophisticated "White Label" lingerie collections, showcased on the mirrored tile walls and complimented with satin quilted upper walls. The memorabilia area of the boutique offers one-of-a-kind artifacts for sale from Playboy archives and Hugh Hefner's personal memorabilia collection, including his pipe and slippers, vintage Bunny Costumes, and paintings and sketches from Alberto Vargas and LeRoy Neiman, respectively all showcased in museum-style cases.
The first U.S. retail location follows Playboy's successful 2002 launch of its freestanding Playboy Tokyo fashion boutique, which in was recognized as one of 40 top stores in the world by the Retail Leaders Association. The Las Vegas opening also leverages Playboy's expansion at retail in specialty stores and leading department stores throughout the United States, Asia and Europe. Retail stores that have carried Playboy fashion merchandise include Henri Bendel in New York, Colette in Paris, Selfridges in London, and Seibu in Hong Kong. The next freestanding Playboy store, a 2,300 square-foot store on Chapel Street, Melbourne, one of Australia's premier fashion areas, will open in fall 2005.
Playboy's branded line of licensed fashion and consumer products has experienced growth at retail since its repositioning in 1999, with a product offering that includes men's and women's fashion apparel and accessories, underwear, legwear, outerwear and footwear, as well as home furnishings and lifestyle and entertainment products. Playboy's licensed products business as a whole now generates in excess of $500 million in global retail sales in more than 130 countries and territories.
Branded merchandise sells. Sexy sells. What more can we say?
Retail Success Story: Alligator Purse
The Alligator Purse
in Hyde Park is a high-end women's wear boutique with five years of
success. The three relatives who started the business with no previous
retail experience did three smart things: they chose a high-end niche,
found a good location, and were patient. They make quarterly buying
trips to New York and Los Angeles to find exclusive goods and they limit
the inventory to select sizes.
The owners no longer staff the store -- which might be another advantage. It's hard to work "on the business" when you're spending all your time working "in the business".
The owners no longer staff the store -- which might be another advantage. It's hard to work "on the business" when you're spending all your time working "in the business".
Sexy Advertising: Asian Ads Swap Gender Roles
The new face of cosmetics ads in Asia is soft, delicate -- and male. From the Wall Street Journal via the Pittsburg Post-Gazette:
Lounging in a pink apartment in a television commercial for Able C&C Inc.'s South Korean makeup brand Missha, actor Won Bin leans in as if to kiss a woman sitting next to him -- but he does her bidding instead, taking her dusky-colored lipstick and carefully applying it to her lips.Obviously there are a lot of ways to do sexy advertising. If you're brave, you could put this unusual ad theme to use for your store. It would certainly get attention, but it would probably also tag your store as a "gay" place ... which might be too small a niche market.
In an ad for skin-care chain The Face Shop, ruby-lipped film star Kwon Sang Woo nuzzles a berry tree, then dons a crown of leaves. Mr. Kwon, famous for six-pack abs and a slight lisp, "has a kind of neutral gender," says Scott Han, the company's public-relations director. "Our customers think he is healthy and adorable."
Marketers aren't out to poke fun at the lipstick lads of Asia. Instead, they are pushing shampoos and makeup by tapping into a powerful shift in gender images taking place in a number of developed East Asian countries. The conservative, macho male stereotypes that have long dominated society in countries like Japan and South Korea are falling out of fashion. Women are gaining power and independence and expressing a preference for different kinds of men.
"A pretty face with big eyes and fair skin, and a moderately masculine body, are what Korean women want in men these days," says Rhie Hye Young, a spokeswoman for Missha.
Retail Success: American Girl to Open Third Store
Mattel is going to open another American Girl Place store.
The new store will be in the Grove shopping center in Los Angeles. The
first two stores in Chicago and New York are runaway successes and
standard-bearers for "experience retailing". American Girl caters to
customers for whom cachet trumps price, selling them dolls, books and a
bimonthly magazine. Sales ($379.1 million in 2004) come primarily from
its catalog, website and two flagship stores.
Rick Caruso, developer of the Grove, said he expected the store to be "a huge driver of retail sales" at the complex. He said he had been lobbying for an American Girl store well before the Grove opened in 2002, believing it would attract pilgrimages from other states and overseas.1.3 million visitors! And shoppers spend 2 hours in the store. Think about experience retailing ... could you create in-store experiences that would draw shoppers from far away?
That's because American Girl stores are seen as a girls' theme park of sorts, minus the rides.
"There are so many revenue-generating experiences within the store," said Jim Silver, publisher of industry magazines Toy Wishes and the Toy Book.
At 40,000 square feet, the Los Angeles store will be twice the size of a typical chain drugstore.
It will have a 150-seat live theater for the Broadway-style "American Girl Revue," a doll hairstyling salon, a bookstore and a cafe, where girls can take their dolls to tea or pick one to have lunch with — and possibly buy.
The average American Girl shopping trip takes two hours, compared with the 20 minutes a customer spends in a typical retail store, said Ellen Brothers, president of the Mattel division. Brothers won't say exactly how much her customers spend, but she says it is in the hundreds of dollars.
American Girl's Chicago store was the first to open in 1998, the same year that Mattel bought the brand from Pleasant Co. for $700 million. Five years later, Mattel opened a store on Fifth Avenue in New York. That store attracted 1.3 million visitors last year, the company said — and many of them probably had no idea their dolls were sold by Mattel.
Retail Marketing: Adidas Brand Stores
Brand stores continue to succeed and grow. The world's largest Adidas Sport Performance Store has opened in New York City.
"Our adidas Sport Performance Stores are an important communication platform for us - here we can showcase the breadth and depth of our brand offering in a unique setting," said Erich Stamminger, President of adidas America. "adidas makes products for more sports than any other brand and this is our opportunity to demonstrate that. We want people to think of the adidas Sport Performance Store as more than just a store, but a destination for athletes."
adidas currently has more than 15 Sport Performance Stores worldwide located in Marseille, Toulouse, Lisbon, Las Vegas, Manchester and the most recently opened store in London. The next Sport Performance Stores are scheduled to open in Berlin, Rome, Tokyo, Hong Kong and other major metropolitan cities around the world.
What does this mean for your own retail store marketing? Well ... do you feature the brands you sell? Manufacturers spend a fortune on promoting their brands -- take advantage by creating "brand boutiques" inside your larger store. And if you don't sell brands worth promoting? Get some fresh merchandise!
"Our adidas Sport Performance Stores are an important communication platform for us - here we can showcase the breadth and depth of our brand offering in a unique setting," said Erich Stamminger, President of adidas America. "adidas makes products for more sports than any other brand and this is our opportunity to demonstrate that. We want people to think of the adidas Sport Performance Store as more than just a store, but a destination for athletes."
adidas currently has more than 15 Sport Performance Stores worldwide located in Marseille, Toulouse, Lisbon, Las Vegas, Manchester and the most recently opened store in London. The next Sport Performance Stores are scheduled to open in Berlin, Rome, Tokyo, Hong Kong and other major metropolitan cities around the world.
What does this mean for your own retail store marketing? Well ... do you feature the brands you sell? Manufacturers spend a fortune on promoting their brands -- take advantage by creating "brand boutiques" inside your larger store. And if you don't sell brands worth promoting? Get some fresh merchandise!
Retail Marketing: target the kids
Lowes and Home Depot have taken a page from McDonalds' marketing
handbook. They're successfully drawing parents into their stores by
offering free monthly do-it-yourself workshops for children. The kids take home free workshop aprons with the store logo on them.
Home Depot stores host kids workshops from 9 a.m. to noon on the first Saturday of the month. Spokeswoman Chris Gronkiewicz said attendance varies, but the Fort Wayne stores typically see about 50 children each month.If home improvement stores can do this, can't you? There must be something fun that's related to your store that you can offer kids on a regular basis. It's a sure-fire winner.
Lowe’s stores have their kids clinics at 10 a.m. on the second Saturday of each month. The clinics at Lowe’s store at 44430 Illinois Road are so popular that the location has added a second session: the fourth Saturday of each month. Jane Ward, kids clinic captain, said the first workshop of the month can draw as many as 200 or more children to the Illinois Road location. And the store drew almost 100 last weekend for its second workshop of the month.
Cause marketing: eco-wear
The New York Times reports on FutureFashion,
a fashion show sponsored by Earth Pledge, a nonprofit group that
promotes environmental programs. It challenged designers to create
fashion using only fabrics that were renewable, reusable or generated
less pollution than conventional material.
Organic food and beauty products have become a $15 billion industry. Organic fiber clothes are much smaller ($85 million retail for organic cotton in 2003), but interest is growing. The designer Rogan Gregory will introduce organic cotton denim clothing under the Loomstate label in high-end stores such as Barneys and Fred Segal this month. For the more cost-conscious shopper, Sam's Club will start selling 100 percent organic cotton active wear by Chaus at its 550 stores this month, with prices starting at $10. Whole Foods began selling organic cotton clothes and linens from more than 10 companies early this month.
"Green" is a fine niche market for smaller retailers. There's a large group of consumers out there who want organic products and very little competition amongst retailers.
Organic food and beauty products have become a $15 billion industry. Organic fiber clothes are much smaller ($85 million retail for organic cotton in 2003), but interest is growing. The designer Rogan Gregory will introduce organic cotton denim clothing under the Loomstate label in high-end stores such as Barneys and Fred Segal this month. For the more cost-conscious shopper, Sam's Club will start selling 100 percent organic cotton active wear by Chaus at its 550 stores this month, with prices starting at $10. Whole Foods began selling organic cotton clothes and linens from more than 10 companies early this month.
"Green" is a fine niche market for smaller retailers. There's a large group of consumers out there who want organic products and very little competition amongst retailers.
Retail marketing: prepare to make money from mature consumers
Advertisers in Europe have turned their attention to aging Baby Boomers,
at least in a small way. The statistics are hard to ignore: In Britain,
the 50-plus age group is the only growing demographic segment. Over the
next 20 years, the number of Britons older than 75 will leap by 43
percent. In Europe as a whole, the proportion of the population over 65
will grow from 12 percent today to 28.5 percent - easily the largest of
any region in the world.
A study last year found that 86 percent of seniors felt ignored by marketers, and 70 percent felt patronized.
Remember ... Baby Boomers will NEVER admit to being "old". They aren't going to act like seniors in the generations that came before them. Appeal to their desire to remain fit, active and involved. You'll reap huge benefits.
A study last year found that 86 percent of seniors felt ignored by marketers, and 70 percent felt patronized.
Remember ... Baby Boomers will NEVER admit to being "old". They aren't going to act like seniors in the generations that came before them. Appeal to their desire to remain fit, active and involved. You'll reap huge benefits.
How to turnaround a dot-com retail failure
Seth Greenberg saved eHobbies.com by getting down to retail basics.
He decreased the payroll from 250 to 3, and moved from swank offices to
the warehouse. The online retailer was profitable with 2 years and is
now back up to 20 employees and 75,000 products.
Hobby shops traditionally are hard to make profitable because the of the sparse population of hobbyists in any one location. On the other hand, it's a natural industry for online sales because eHobbies can aggregate shoppers nationwide and around the world.
Hobby shops traditionally are hard to make profitable because the of the sparse population of hobbyists in any one location. On the other hand, it's a natural industry for online sales because eHobbies can aggregate shoppers nationwide and around the world.
Latest Carnival of Capitalists
This week's Carnival of Capitalists is online at Beyond the Brand
blog. The Carnival is an always-interesting collection of links to the
week's best business and economics blog entries. Give it a try, you'll
like it.
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