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WELCOMEWELCOME
The first thing I want to do The first thing I want to do today is to check your IQ…today is to check your IQ…
1) Where does “olive oil” come from?1) Where does “olive oil” come from?
2) Where does “cotton-seed oil” come from?2) Where does “cotton-seed oil” come from?
3) Where does “soybean oil” come from? 3) Where does “soybean oil” come from?
4) Where do they get “baby oil” ? 4) Where do they get “baby oil” ?
Promoting and
Supporting Small
Businesses in
Your Community
Promoting and
Supporting Small
Businesses in
Your Community
Today’s agenda…Today’s agenda… The Economic Foundation of
Healthy Communities.
Seven Strategies for Promoting and
Supporting Small Business in Your
Community.
Q and A and/or wild guesses.
The Economic
Foundation of
Healthy
Communities
The Economic
Foundation of
Healthy
Communities
Community development…Community development… The betterment, growth, or expansion
of community issues related to the overall quality of life.
Economic development…Economic development…
Community efforts dedicated to the
growth and expansion of “basic income.” (This pays for all quality of
life issues.)
Basic Income
The Community Money TreeⒸ
Tt
RetailSector Service
Sector
EducationGov.Services
Construction
©2005, Don Taylor, David Terry, Dan Redd – All rights reserved
Basic Income
Mailbox Income Tourism Income
The Community Money TreeⒸ
RetailSector Service
Sector
EducationGov.Services Construction
The things we’re going to talk about
today, will not take the place of “basic
income” in ensuring the long-term
viability of your existing businesses.
The best way to ensure their success,
is to increase the flow of “new
money” coming into your community.
Your economy is notnot supported by
retail spending… but rather the
strengthstrength of your economy is
measured by the amount of retail
spending. If the “economic“economic pie” pie”
isn’t growing…
There are two exceptions…There are two exceptions…
1) Out-shopping reduction.*2) Trade-area expansion.
*Reduced not eliminated.
Seven Strategies for
Promoting and
Supporting Small
Businesses in Your
Community
Seven Strategies for
Promoting and
Supporting Small
Businesses in Your
Community
From theFrom thenew book new book which will which will be publishedbe publishedmid-Augustmid-Augustthis year!this year!
Ten second book synopsisTen second book synopsis……
Success in business Success in business
is achieved through is achieved through
the relentless pursuit the relentless pursuit
of doing simple of doing simple
things well.things well.
Strategy Number
ONE
It’s Still About
the Customer
Strategy Number
ONE
It’s Still About
the Customer
Focusing on the customer…Focusing on the customer…Customers are good for business.
The only reason any business
exists is to serve the customer.
Two natural customer laws:
Customers go where they get good value.
Customers stay where they are treated well.
Focusing on the customer…Focusing on the customer…
Businesses succeed
when they are able to
createcreate, satisfysatisfy, and
keep keep customers.
Think about this…Think about this… If we are going to create, satisfy
and keep customers coming
back… it makes sense that we
have to know what they want
and then give it to them.
What customers want…What customers want… Customers want value.Value is the perceived relationship
between price, and quality and quantity.
Price Quality and Quantity
What customers want…What customers want… (Continued) (Continued) Customers want convenience.
Convenience is the unspoken cry:
“Make my life easy, save me time,
eliminate any hassles, let me be
lazy, etc. (Drive through, car wash,
maid service, laundry, etc.)
What customers want…What customers want… (Continued) (Continued) Customers want service.
Service has been redefined by
both customers and the big
boxes, and I’ll share the new
definition later.
What customers want…What customers want… (Continued) (Continued) Customers want
information. They need information for two
main reasons:
1. To make good decisions
2. For reassurance (about their decisions)
What customers want…What customers want… (Continued) (Continued) Customers want choices. There’s a reason why Wal-Mart
Supercenters offer 150,000 different items. (SKUs)
There’s a reason why McDonald’s restaurants offer “small, medium, and large.”
What customers want…What customers want… (Continued) (Continued) Customers want peace. …an undisturbed state of mind,
absence of mental conflict, freedom from disagreement or quarrels. In short… Customers don’t want hassles.
What customers want…What customers want… (Continued) (Continued) Customers want
personal attention. All business is personal…
people want to do business
with folks they know and trust.
What customers want…What customers want… (Continued) (Continued) Customers want
experiences. Stuff is out… experiences are in. People are looking for fun,
exciting, and different experiences. This is why “out-shopping” will
never be eliminated.
Taylor’s tip:
Those business owners
who stay focused on
satisfying the customer
can compete with
anyone.
Strategy Number
TWO
Great Companies
Have Great People
Strategy Number
TWO
Great Companies
Have Great People
Great People…Great People…Walt Disney said, “You can
dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality.
I’ve never seen any business out grow the quality of its people.
Great People…Great People…
Great peoplepeople create (attract) great
customerscustomers.
To compete with larger firms, you
must have the rightright peoplepeople, with the
right traitsright traits, in the right jobright job, with the
right trainingright training, and the right toolsright tools.
Ten traits of great employees…Ten traits of great employees…
High self esteemHigh self esteem
Good communication Good communication
skillsskills
Self-motivatedSelf-motivated
DependableDependable
Energy and dedication Energy and dedication
to hard workto hard work
Positive attitudePositive attitude
PerseverancePerseverance
EnthusiasticEnthusiastic
Good sense of humorGood sense of humor
Unquestionable Unquestionable
integrityintegrity
Taylor’s tip:
If you can’t have all ten
traits, hire attitudeattitude,
enthusiasmenthusiasm and integrityintegrity.
The other traits can be
developed or taught.
Strategy Number
THREE
Add Obvious
Value
Strategy Number
THREE
Add Obvious
Value
Five ways to change your Five ways to change your customer’s value perception:customer’s value perception:
1) Cut your price.1) Cut your price. This is easy.
Even I could do it. I know how…
Here’s what I might do…
The Cheaper The Cheaper SpeakerSpeaker
The Cheaper The Cheaper SpeakerSpeaker
More mouth, less More mouth, less moneymoneyMore mouth, less More mouth, less moneymoney
Five ways to change your Five ways to change your customer’s value perception:customer’s value perception:
1) Cut your price.1) Cut your price. The only
problem is that cutting price also
reduces margin and profit. You can’t
be the low-price seller unless you
are the low-cost provider.
Five ways to change your Five ways to change your customer’s value perception:customer’s value perception:
2) Reduce your costs.2) Reduce your costs. When Wal-
Mart passed Sears to become the
largest retailer in the U.S., (1990)
their operating expenses were 15% of
sales… compared to nearly 35% at
Sears. (More on this later.)
Five ways to change your Five ways to change your customer’s value perception:customer’s value perception:
3) Improve Quality.3) Improve Quality. Remember,
value is a balance between price
and qualityquality and quantityquantity. Improving
quality can improve your value
perception.
Five ways to change your Five ways to change your customer’s value perception:customer’s value perception:
4) Add service.4) Add service. Offer free safety
checks, free energy usage
assessments, free delivery, free
installation, free adjustments,etc.
(Barry Steinberg…Greg Lair…)
Five ways:Five ways:
5) Bundle value. Computer folks 5) Bundle value. Computer folks
package low-cost software… Sam’s package low-cost software… Sam’s
Club bundles two boxes of cereal… Club bundles two boxes of cereal…
premium vacs provide a 1-year premium vacs provide a 1-year
service contract… Las Vegas clothier service contract… Las Vegas clothier
bundles 3 suits, 3 shirts, 3 ties and 3 bundles 3 suits, 3 shirts, 3 ties and 3
pairs of sox for $399., etc. pairs of sox for $399., etc.
Taylor’s tip:
Obvious value means: “Value
that is easy to see and
understand.” When you add
obvious value, your customer
should see what you’ve
added, and how they will
benefit from it.
Strategy Number
FOUR
Become a
Master Marketer
Strategy Number
FOUR
Become a
Master Marketer
Product / Service
Price / Profit
Positioning Promotion
People
Place
$MarketingMarketingPowerPowerPyramidPyramid
The Marketing Mix: The Marketing Mix: PRODUCTPRODUCT
Our Product / Service:Must meet customer’s needs, orSatisfy customer’s wants, orSolve customer’s problems, orCreate good feelings, and… Provide obvious benefits and
advantages to our customers.
The Marketing Mix: The Marketing Mix: PRICEPRICEAnyone with a lick of sense wants to
buy the highest quality, and the
largest quantity, at the lowest price.
All things considered equal, we’ll
buy the lowest price every time.
Remember the Teeter-Totter…
The Marketing Mix: The Marketing Mix: POSITIONINGPOSITIONING
Your positions are areas where you can excel. Your positions are the “advantages “advantages and benefits”and benefits” you give your customers that they can’t get from anyone else. Your positions are your strengths.
The Marketing Mix: The Marketing Mix: PROMOTIONPROMOTION
Remember the old saying…?
“Build a better mousetrap and the world will beat a path to your door.”
How many of you believe that?
I want to read you a little poem…
The Marketing Mix: The Marketing Mix: PROMOTIONPROMOTION
The main purpose of all
promotion is to get the
right message, to the right
people at the right time.
The Marketing Mix: The Marketing Mix: PEOPLEPEOPLE
Remember great people
create great customers.
(We discussed this in Strategy
Number Two.)
Place (your location):–Must be easy to access, and–Must be pleasing to the eyes, and–Must be pleasing to the nose, and–Must offer convenient parking, and–Must be consistent with your
“Position and Promotion” image.
The Marketing Mix: The Marketing Mix: PLACEPLACE
Taylor’s tip:
Focus on all six
marketing elements.
We’ve never seen a good
marketing plan that
didn’t utilize all six
elements.
Strategy Number
FIVE
Eliminate Waste
Strategy Number
FIVE
Eliminate Waste
Eliminating Waste…Henry Ford became a millionaire
by eliminating waste in the
manufacturing process.
Sam Walton became a billionaire
by eliminating waste in retail.
Keys to eliminating waste…Remember, every dollar saved
goes directly to the bottom line.Every expense must be justified.Ask: “Does this expense help us
serve our customers more effectively?”
Trim largest categories first.
Some words of caution...“Cutting costs” is not the same
as “eliminating waste.”Some expenses to approach
very carefully: Marketing, promotion, and customer service expenses.
Taylor’s tip:
Use it up, wear it out, make do, do without.
Strategy Number
SIX
Improve Your Service
Strategy Number
SIX
Improve Your Service
Customers are redefining service!Customers are redefining service!
As we did the research for the new As we did the research for the new
book, we asked customers about book, we asked customers about
their service expectations. Their their service expectations. Their
answers surprised us. We found answers surprised us. We found
that every thing they mentioned fit that every thing they mentioned fit
into four neat categories.into four neat categories.
Creating customers for life!Creating customers for life!Some answers were related to the Some answers were related to the
human aspects of service human aspects of service (people)(people) and others had to do with business and others had to do with business locations and facilities locations and facilities (place).(place). Some Some answers were procedural answers were procedural (policies)(policies) and others with the products/services and others with the products/services offered offered (product).(product).
Thus, the Thus, the 44 P’sP’s of Customer Service. of Customer Service.
The first P… PeopleThe first P… PeopleKnowledgeable staff, helpful, Knowledgeable staff, helpful,
friendly, fun.friendly, fun.A real person who answers the A real person who answers the
phone… not voice mail.phone… not voice mail.
Common courtesy, good manners.Common courtesy, good manners.Personal contact – call me by name.Personal contact – call me by name.People who smile a lot.People who smile a lot.
The second P… PlaceThe second P… PlaceConvenient locations – close to me.Convenient locations – close to me.
Easy access from busy streets.Easy access from busy streets.
Plenty of parking, close to the business.Plenty of parking, close to the business.
Signs to tell me where things are.Signs to tell me where things are.
Clean floors, shelves, and windows.Clean floors, shelves, and windows.
Outside is well lit, safe at night.Outside is well lit, safe at night.
Clean, convenient restrooms.Clean, convenient restrooms.
The third P… PoliciesThe third P… PoliciesThe business is open when I can go.The business is open when I can go.
Credit availability.Credit availability.
Accept personal checks.Accept personal checks.
Being able to return things easily.Being able to return things easily.
Pay-at-the-pump gas stations.Pay-at-the-pump gas stations.
No waiting in lines at the counter.No waiting in lines at the counter.
Service people arrive when promised.Service people arrive when promised.
The fourth P… ProductsThe fourth P… ProductsThey have what I want in stock.They have what I want in stock.
Several items to choose from.Several items to choose from.
Getting exactly what I ordered.Getting exactly what I ordered.
Quality products that last.Quality products that last.
Products that deliver what they claim.Products that deliver what they claim.
Having special requests honored.Having special requests honored.
A part of your handout…A part of your handout… I’ve included some service help I’ve included some service help
from our new book, from our new book, Up Against Up Against
the Wal-Marts, Second Edition.the Wal-Marts, Second Edition.
It’s called: It’s called: Improving Your Improving Your
Service – A Seven-Step PlanService – A Seven-Step Plan. .
Taylor’s tip:
Assume that your service
is bad… or at least can
be improved. Then
make it everyone’s job to
improve your service.
Strategy Number
SEVEN
Develop Your “A” and “E”
Strategy Number
SEVEN
Develop Your “A” and “E”
Develop your attitude and enthusiasmDevelop your attitude and enthusiasm
The happiest and highest The happiest and highest
paid people in the world are paid people in the world are
those with the best attitudes those with the best attitudes
and the most enthusiasm.and the most enthusiasm.
Develop a Positive Attitude.Develop a Positive Attitude.Attitude is “the state of mind with which we approach any given situation.”
Our attitude controls the way we get along with our friends, family, customers, co-workers, peers, and our bosses. Our attitude controls all of our relationships.
But it can’t control us… unless we allow it to…
Remember, YouYou are in
charge of your own attitude.
NoNo one can make you have
a bad day unless you let
them.
Thoughts on Attitude...Thoughts on Attitude... Zig Ziglar said, “Your attitude
determines your altitude.” …I would add... also your latitude
and longitude. Proverbs 23:7 says, “As a man
thinks in his heart, so is he.”–What you think about, what you
dwell upon, you will become.
Develop Enthusiasm…Develop Enthusiasm…
A survey of 70 CEO’s and presidents of Fortune 500 companies asked: “What factors contributed the most to your success?”
EnthusiasmEnthusiasm was among the top three answers on every executive’s list.
Enthusiasm is: “inspiration to action.”
Emerson said, “Nothing great …”Nehemiah 4:6 says, “So we built the wall… for
the people had a mind to work.” Read… “for the people were enthusiastic about rebuilding the wall, increasing their security and regaining their self esteem... ”
But, Don… You don’t know my…
That’s true… I don’t know…But I do know what it’s like to have a
bad day…I remember a day back in 1996…
This poem sums up my thoughts on attitude and enthusiasm…
If you think you’re beaten, you are.
If you think you dare not, you don’t.
If you’d like to win but think you can’t,
It’s almost certain you won’t.
This poem sums up my thoughts on attitude and enthusiasm…
If you think you’ll lose, you’re lost.
For out in the world we find,
Success begins with a person’s will,
It’s all in your state of mind.
Four Thoughts From the FarmFour Thoughts From the Farm……
Don’t squat too near the pitchfork.
Never, ever miss an opportunity to shut up!
Keep skunks, rattle snakes and lawyers at a distance.Tearing down your neighbor’s fence
doesn’t make yours any stronger.
Questions?Questions?
