Wednesday, June 29, 2016

Keeping the High Profit Customer. Dump Difficult People

Subject: Keeping the High Profit Customer. Dump Difficult People. Author: Woody

Your right Dennis, Every year or so We CLEAN HOUSE that's what we call it anyway. Once we stop making profit on a customer we have to let them go. This hurts the cash-flow for the short term but it works. if a customer spends 500 a month but has hammered you down to cost or near cost why bother! Let them shop elsewhere and put them out of business.

Subject: Re: Keeping the High Profit Customer. Dump Difficult People Author: Dennis S. Vogel

In reply to: Woody 's message, "Keeping the High Profit Customer"

Hi Woody:

That's a good insight.

Thank you for posting it.

How do you do it?

Do you just stop calling them or take them off of your mailing list?

Do you let them know that they're not welcomed anymore?

Do you refer them to competitors?

Or do you do it another way?

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

In reply to: Dennis S. Vogel 's message, "Re: Keeping the High Profit Customer"  Author: Woody

Just charge Top Dollar plus Tax. No Discounts!!!!!No Price breaks at all.. They will run out of your shop to the guy down the street who is happy to sell to them at cost or below just to buy their business. Not only do you get rid of these low price only shoppers but the compeition will fold in a year or so. Treat your good customers like Royalty because they are. Some old faces have been stopping by the shop lately so on the way home tonight l stopped to SPY on the Low priced shop down the road. The store is empty and up for lease. Poor guy priced himself out of business:( ............ Woody

Subject: Re: Keeping the High Profit Customer. Dump Difficult People Author: Dennis S. Vogel

In reply to: Woody 's message, "Keeping the High Profit Customer"

Hi Woody,

Thank you for answering.
People seem to think they can start successful businesses by copying what others do. They might use low prices despite their high cost structures.

Because they notice what a successful store stocks, novices might stock too much or the wrong kind of inventory.

Since big retailers seem to attract "everybody", novices think they can do it successfully too.

There will always be differences between what successful businesses do & what outsiders observe.

The effects can be similar to a patient's body rejecting a transplanted organ.

Some case studies are valuable, but business owners should realize every situation will always have unnoticed & unreported factors. The combined effects of a few minor factors can make major differences.

Before a "best practice" or full case study is implemented in a different situation, there are unnoticed - or seemingly unimportant - factors in that situation.

Without optimal tactics & strategies, any combination of differences can lead to failure.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/




Saturday, June 25, 2016

Setting Your Market Niche's Buying Criteria Will Make You More Successful Than Your Competitors


Subject: Setting Your Market Niche's Buying Criteria Will Make You More Successful Than Your Competitors Author:Dennis S. Vogel

Why should anybody buy something from you instead of from a competitor?

Whatever that reason(s) is/are won't make a difference (won't do you any good) if they're not presented logically, with emotional appeal, to your target market.

If you have a mobile oil change service, here's something that will help you. If you have a different business, then adapt this.

1) What's the biggest benefit you offer?
2) Why is it such a big benefit (compared to other alternative products/services)?
3) Why is it more important to a certain group of people than to others?

Let's say your prospects are very busy and distracted, so they have a hard time remembering appointments. Also, when their work shifts are over, there's a lot of traffic, they're tired and just want to get home and rest. But they've driven their cars more than 3,000 miles since they had the oil changed.

They can set up an appointment with you, up to a month in advance. (When they have an accurate estimate how many miles they'll drive.) You'll call them the previous day to confirm your appointment, you'll already have the vehicle's description and license plate number, so you'll want to be sure you have a good idea where their vehicle will be at the appointed time.

So, knowing all that, let's set your market niche's buying criteria so you can reach and catch the attention of others like them. Their buying criteria is something they'll identify with and use when they consider what to buy or even whether or not buy anything.

"You work 8 or more hours per day. After work and on days off, you're tired and still too busy to fight traffic just to bring your vehicle to an oil change service. That's why ABC Mobile Oil Change comes to you and your vehicle.

"Your vehicle is too valuable to neglect oil changes, and your time is too valuable to use it driving to a service station.

"ABC Mobile Oil Change saves your vehicle and your time. Call ###-#### for time and energy saving details today before you drive too many more miles."

That's how to do it. It seems simple and maybe even simplistic, but it can make the difference between thousands of people picking you or your competitors. It's literally that important.

An added note- you should send them or leave a reminder card or magnet for their next oil change (what the mileage will be when another change is needed).

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Subject: My big competitors sell the same brands Author: Cassandra

My major competitors sell the same brands. Their store brands are just like the private label products I sell.

How can I set or reset the buying criteria, when it's already set - DISCOUNT prices?

Subject: Re: My big competitors sell the same brands Author:Dennis S. Vogel

Hi Cassandra:

Brands are important to some people and others will buy whatever is less expensive. There are other things that matter to people also.

I don't what kind of business you have, so let's concentrate on your location and what could be important about it.

Some of your competitors are probably further away from your prospective customers than you are. So you may be able to save people time and hassle in traffic.

If you have a ground level store with one floor and your competitors have stairs or slow elevators, shopping at your store may be more convenient. Especially if you have products that appeal to people with joint pain (especially in their knees).

I don't mean to be sexist but let's try this. Other males and I tend to go into a store commando-style. We go in, get the mission done, then we get out quickly.

Some women tend to browse as they shop. That's the experience they want. I'm not judging them.

Do you have your store set up in a way that makes it easy to shop quickly? Or is it set up for browsing?

Is on one floor? The ground floor?

Are your competitors in the middle of a business district while your store is near a residential area?

NOTE- Don't think that if your store has been there for 20 years that everybody knows and remembers it's there. They don't. They don't own it so they think about many other things that don't include your store.

Don't think that just because you advertise your message is received. It may not be understood. It may not be compelling to prospects. You may think it's great because it pushes your hot buttons, but you're not your market niche.

Let's try this buying criteria. I'm writing this in a way that I hope will appeal to some people, but it hasn't been tested. (You can adapt it to your business and test it for effectiveness. Please read my posts about testing for an explanation.)

"In between working and your time off at home is your life as a commuter. You want to get home and enjoy the rest you deserve. But there are things you need at home.

"When you're on your way home from work, you're tired & possibly frustrated. You're not in the mood to shop. At Life's Necessities, you can shop quickly because everything is easy to find & reach.

"The store is on one floor, you don't have to climb stairs or wait for elevators. We've even timed some typical customers who agreed to test our system. Most of them were able to complete their usual shopping in 20 minutes. They told us that they're able to get to the store within 10 minutes from when they leave work. They get home five minutes after they leave the store.

"Your situation may be different, but it probably won't take you much more than 35 minutes to do your shopping after work. That is unless you want to browse for a while. Our sales floor is set up so you can quickly find things that you need weekly, in just a few minutes. Things you need less often are set up so you have enough room to look at your own pace."

The criteria I wrote is 209 words long (depending on what's considered a word, just number or symbol), so it's a bit long. You'd need to adapt and edit it for your situation.

If you want specific guidance, please contact me or post another message.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

What Should My USP Be?


Subject: What Should My USP Be? Author: candyshack

OK, I know I should have a unique selling proposition for my business. I don't want to set one until I know it's the right one.

The wrong one will bring in the wrong people or worse yet nobody!!

But until I set one, how can I know if it's right?
I'm not sure I'm asking this the right way.

Subject: Re: What Should My USP Be? Author: Dennis S. Vogel

Hi:

Just as a guess, I'm figuring you have a candy store. Even if you don't you can apply the information in this post to a different business.

Sometimes USPs can be used as headlines in ads. So, what I advise you to do is test different possibilities in ads or other marketing messages. Find out which one gets the best response. This doesn't mean the most responses though.

It means that it gets you profitable sales, not just people looking for on-sale/discount items.

So, here's the way you can do this -
1) Pick businesses that serve the same target market.
2) Ask the owners to distribute (give not just put on the counter top) your flyers.
3) Then develop two or more different flyers. Everything on each should be the same except the headline.
Have instructions on the flyers for people to bring them in when they come to your store.
4) Collate/shuffle them so that (If you have two different flyers) - customer #1 gets flyer #1; customer #2 gets flyer #2; customer #3 gets flyer #1; customer #4 gets flyer #2; and so on.
5) Carefully track which flyer induces more people to come in.

OK, now for the flyer content.

Base the messages on what customers have told about the candy. If your business has just started, use information from your trade association or your marketing survey.

You can try marketing candy as people's way of rewarding themselves for working hard or accomplishing something.

If you sell gourmet candy, you can focus on the better, deeper taste and/or better ingredients.

Dennis S. Vogel

Subject: Re: What Should My USP Be? Author: Dion Jackson

Hi Dennis:

My main local competitor seems to have the best USP and has upstaged me. That's besides the competition from the national chains.

He used to be a successful stock car driver and his own mechanic. Now he owns an auto parts store. Mechanics that buy wholesale parts from him even advertise that they get parts from him.

I'm embarassed to do but I'll take a chance on advertising for him.

His business is Winner's Circle Auto Parts. His USP is
"Life is a race you've got to win."

Should I concede the race or do you have something I can use?

Dion Jackson

Subject: Re: What Should My USP Be? Author: Dennis S. Vogel

Thank you for being patient, I hope you were patient.

I ended up moving into another apartment so my computers were out of service for a while.

I won't and can't decide for you what to do. But I do have
something you can test for effectiveness.

I'm glad you included information about your competitor and his business, because that helps me to help you.

I want to point out that this isn't a USP, it's a slogan -"Life is a race you've got to win." Yes, it does tie in with his reputation and business name but it doesn't really "say" anything.

A Unique Selling Proposition is different.

If you have a strong USP, you won't have to concede the race. All you need to do is get the USP out to your target market.

The locally-based auto parts stores where I live are affiliated with or franchisees of CarQuest and NAPA. If yours is like these (near me) you may be better off tying in with the supplier's/ manufacturer's USP. If you're involved with one that doesn't have a USP or has an ineffective USP, then let's develop one for your business.

I know many people are racing fans, but to me, racing isn't the real, everyday world. What I mean is that many people may admire stock car drivers and aspire to be like them, but that's not true reality. (Though to racing fans it may seem like reality.) And your business may never appeal to them. That may seem bad, but you can make it into something good.

You shouldn't try to appeal to everybody because:
1) Different people like different things so nothing will appeal to everybody except pure survival items;
2) It's too expensive to try to reach everybody consistently enough to make a difference.

True reality is driving a regular vehicle - car, (mini)van or truck in traffic. So, your USP could be -
"You need what’s here: Auto parts and supplies for vehicles like yours that have to work in real world traffic." You should test it like I'd advised "candyshack" to do.

If you can get a public domain (non-copyrighted) picture of a stock car on trailer next to a regular car or mini-van, I have an idea that may work. Or you could have a picture like that you own the copyright to.

With a picture like that, you can use a supporting statement like -- "Your car, truck or van doesn't get pulled on a trailer, so it has to work in traffic day after day."

Or a picture of a pit crew working on stock car may work, but again don't use a picture if you don't have a legal right to use it. (If you don't know if you can legally use it, then please don't just to be safe.) Your supporting statement could be - "If you could afford to have a crew work on your car like this, then you may be to afford the same parts that are used in this car. But if one repair has to last through years of traffic, then you need the right parts and supplies for your situation."

Of course, a good USP, as important as it is, is only part of a good marketing program.

If you were a long-term client I'd ask you a lot of questions before I'd be able to develop a whole marketing program. So please, keep my advice in perspective. I believe it will help you, but you need more than just a good USP.

You may be to differentiate yourself (set yourself a *PART* - Come on, Dion at least smile) by giving your customers good information about car repairs and maintenance.

If the local mechanics buy from your competitor anyway, you may be able to afford to tick them off by having clinics in which you show people how to do basic repairs and maintenance. Consider appealing to people who want to do repairs themselves or who can't afford to pay a mechanic to do it.

Just be sure you have insurance to cover you in case somebody gets hurts while following your advice or somebody messes up his/her vehicle despite your good advice. Ask a lawyer about having people sign a waiver form stating they take full responsibility for the work they do.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Starting a business


Subject: Starting a business Author: Melissa

NOTE - This message was sent to me via my e-mail address. I'm posting it here to help you. If you like to send me a question and have me post it, then please do that.
My e-mail address is - thrivingbusiness@email.com

I really would like to open a business. I want to open a restaurant with entertainment. I have chosen a name but don't know where to begin. Could you give me some insight on where I start. I don't have the understanding or know
how to begin. So I feel like I am procrastinating from starting something I want so badly. I am not sure what type of information you need from me to help. I want to start small and go from there.
HELP!!!

Thanks, Melissa

Subject: Re: Starting a business Author: Dennis S. Vogel

My specialty starts after a business has started. I only have a few tips about starting businesses.
The advice I gave Melissa wasn't as much as she wanted or as much as I wish I could have given her. The basics of it may help you. Please read the warnings I gave her.

Hi Melissa:

One thing I definitely know about the restaurant business is that it's hard to make a restaurant profitable. So, if you open one you need to know a lot more than I know about it.

A web site you can get information from is https://www.entrepreneur.com/

I could give you good ideas to market a restaurant, but first it's best for you start it.

Is there a restaurateur near you who may be retiring soon and would let you exchange work (sweat equity) for partial ownership?

Or is there a restaurateur in a nearby city who will want a second restaurant in the near future? If so, you may be able to work yourself into an ownership position.

Just be careful whom you get involved with. If you feel uneasy about somebody, don't get involved with that person no matter how good the opportunity may seem. Our intuition won't look us in the eye and say "Don't do it!"

Intuition just gives us strong hints - gut reactions, tension/insomnia, or feelings of well-being. Don't ignore any of these.

When you're ready to open your restaurant, then I can help you market it.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

What Kind of Business Should I Have?


Subject: What Kind of Business Should I Have? Author: Larry

NOTE - This message was sent to me via my e-mail address. I'm posting it here to help you.
I only post what people send, I don't correct spelling or grammar.
If you like to send me a question and have me post it, then please do that.
My e-mail address is - thrivingbusiness@email.com

Hi there!!!

I was just browsing through Yahoo when I came across your wonderful website but given my deadlines at work (I am still
working for someone else i.e not self-employed yet) I could not read through a lot of important stuff you have in there.

All I need is information regarding what business can I venture into.I have currently raised about R30 000(About $5000),and currently looking for some small business that I can start but that firstly :won't require a huge capital
investment,secondly it should not require 100% of my time as I am currently working for some other IT company but it should be a viable option.

Even though it can earn me some R1000($250) per month.The idea is I want a secondary income as my current salary is way too low to make ends meet.

I am South African but I am sure anywhere in a capitalist market,good business ideas will always thrive. I have started up a small car-wash and valet service business but it is not doing very well. My cousin is helping me take of the business but it is not making enough moolah yet,i guess we are just breaking even as we can just afford to pay the rent, rates & taxes,other expenses and that's it.

We have been going on for almost a year now and I do not think it's a succesful venture.

If you can please advise me on ways I can make this car-wash thingy work or should I give up on it and start something new with the money I have raised, or should I rather keep my money in the bank (though banks give very little interest in return).

Your urgent response will be appreciated.

Regards Larry

NOTE - I answered his questions via e-mail but I'm also including my answer for him here.


Subject: Re: What Kind of Business Should I Have? Author: Dennis S. Vogel

Here's the answer I sent to Larry. The questions I asked him to consider may pertain to you and your situation too.

Hi Larry:

I could give you advice that might help you get some profit from your business. Considering what you wrote, I don't know if that would be best for you.

I'd need more details to customize my advice for you.

I'm not able to able to make your decision, but I can give you some guidance.

There are many things to consider here -
1) Do you like the car-wash and valet service business?
2) If you closed the business down, would you feel frustrated?
2a) If so, why would you feel frustrated?
2b) If  you wouldn't feel frustrated, would you feel relieved because having the business is a burden?
3) Why do you have that business? 3a) Is it because it seemed like a way of getting money?
3b) Or because you enthusiastically want to do it/you're passionate about it?
4) Does it seem like you have a car-wash and valet JOB instead of a BUSINESS?

A personal note - I used to be a janitor just to bring in money for myself and my family. But when I cleaned, I did it to my standards. If I didn't like the results, somebody's compliments were meaningless. When I returned to work the next night, I was mad if somebody messed up what I did.

I was glad to quit because I dislike the company & because I want to be a marketing consultant.

So how might this apply to you?

How would you feel if you just cleaned a car and got paid for it, then you saw somebody throw mud on it?

Could you walk away from your current business and not feel bad about it?

Is it reasonable to think that you should have a profitable business by now? For most businesses, one year isn't long enough to get a profit.

If you make the business profitable, you may be sell it and use the money to start a different business.

If you decide to stay in your current business, let me know.
I can give you some advice if you give me some details about it.

Warmly,
Dennis
thrivingbusiness@email.com
When you compete against big businesses with big budgets you need powerful marketing strategies and tactics.

Updated Response -

Where I live in the USA, car wash businesses are in buildings & have machines to do the work. Some of these car wash businesses have self-service vacuum cleaners for customers. 

I've heard about some custom car wash businesses. Instead of relying on machines to do all of the work, employees clean the vehicles. They give customers other options. Some options are advanced formula waxes, cleaning vehicle interiors & detailing work, 

Detailing can include removing small, shallow dents, removing rust & fixing small scratches.

Your valet service could overlap with your car wash. Valets can drive vehicles to your shop & deliver the vehicles after the work is done.

Based on the popularity of Uber & Lyft, people might want chauffeur service at scheduled times &/or unplanned rides.

Business Team Work Adds Value

You can add more revenue & profit by helping other business owners add more value.

You could work with mechanics by providing rides for people whose vehicles are being serviced.

During unpleasant weather, you might provide service for store customers. If you bring people from homes & work places & drive up to store entrances. After they finish shopping, your drivers can help customers with their packages & bring people to their next destinations. 

Unpleasant weather is whatever atmospheric issues people don't like. So, this business could be consistent, especially when people enjoy the services.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Wednesday, June 22, 2016

How to market a Software Game?

Subject: How to market a Software Game? Author: veerla

Hi,
I developed a software application which plays some game with the users. The game could be more interesting for students as it deals with words in Dictionary.
I want to launch this product into the market.
I would like to know how to select the Market Segment and how to advertise my product.
Could anyone please help me?

Thanks,
Veerla.


Subject: Re: How to market a Software Game? Author: Dennis S. Vogel

Hi:

I don't know which grade level(s) your product is for. If what I wrote below doesn't apply to your situation, please give me more details so I'll have a better chance of helping you.

Let's try this for starters -
The public school my daughter is in has "Book Fairs" to raise money for the school. (This is necessary because of budget cuts.) But they sell candy, software and other things too.

If you have connections (or want to establish some) in a school or school system that sells things like this, you may be able to find out if one or more teachers will endorse the game.

Some teachers here are active in fund-raising. If that's the case where you live, they may be eager to try your game if you tell them you want it used as a fund-raiser. But their endorsement(s), if any, should be impartial.

You'd end up letting them try out a copy possibly with students. Consider a cost of operations donation.

There's a possible snag here. Does your software run on PCs or Macs?

The classrooms, where my daughter goes to school, are equipped with Macs.

If one or more teachers will endorse your game, you can ask the principal or school administrator about them selling copies of your game to raise money. S/he may refer you to the leader of the PTO (Parent-Teacher-Organization).

In addition to PTOs, boy scouts, girl scouts, The Big Brothers/Big Sisters organizations may be interested in helping you sell your game also if you'll donate some of your profits to them.

You should be willing to do this because they'll get you sales you may not get any other way. Whether or not donations like this would be tax-deductible is something you ask an accountant or the IRS.

If the game does well in fund raisers, then you'd have a target market. If you can get testimonials from teachers and those in the PTO (or other grooups) about it's effectiveness and the level of sales, you may be able to get store owners to stock it.

Store owners don't want to fill shelves with products that people won't buy. If you show that your game is popular they won't be so shy about stocking it. If they don't want to buy it wholesale, offer them a consignment arrangement.

The basic way this would work is -
You leave (let's say) 10 copies with them. Then you'd go back in a week or a month to check how many they have left. They'd pay you for any copies they don't have left unless some were returned as defective or damaged.

They may only stock your game if you advertise it. (Too often if a product isn't advertised people won't know it exists, so they won't buy it.)

If that's the case, let me know and I'll suggest a few low cost ways of doing it. I may be able to help you with some compelling sales copy also.

Now if you've read some of my other posts, you know how I feel about Wal-Mart. However, if you're able to 1) show buyers of big stores how well your game has sold in small stores and 2) produce thousands of units, you may be able to get it sold on a national basis.

If you're just starting in your business, you should start out by testing your product in small risk situations.

Thanks for the question.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Sunday, June 19, 2016

What's a reliable survey?

Subject: What's a reliable survey? Author: mom_pop

I've heard that a survey isn't valid unless its done on a random population of 1,000 or more people.

I'd never have the time to read the completed surveys of 1,000 people.

Am I just out of luck or is there another way?

Subject: Re: What's a reliable survey? Author: Dennis S. Vogel

Hi:

This IS a confusing subject. My views on it may not be the most popular, but I'm sure they're realistic.

If you let people pick up a survey on a "Please Take One" basis, some people will say that the results aren't valid because respondents SELF-SELECTED."

Realistically, all respondents self-select because (in a free country), anybody can refuse to answer any/all of the questions. If you approached everybody at random so that everybody had an equal chance of being picked to participate then 1) It would make the results statistically valid; 2) You can safely bet that some won't respond. That wouldn't invalidate the research, otherwise there'd be very few valid research projects.

My point is, that for a small business, if you went through the trouble to make your survey statistically valid, the results would be invalid. Why? Because very few, if any, businesses are going to appeal to everybody in its trade zone unless the products/services are absolute necessities and there are no competitors. So, trying to survey a group that's representative of a whole population is a waste of time, energy and materials.

If you're just starting your business, you should have a good idea before you start who will want and be able to afford what you plan to offer. You should survey THEM ONLY.

If the survey isn't vital to people, not everybody will respond anyway. In many cases, those who don't respond aren't true prospects anyway. They don't respond because they're not interested in the products, services or subject matter the survey is based on. So, it's not worth their time to participate.

If you know that your business will appeal only to blue-collar people, don't survey executives, you ought to know what their answers will generally be anyway.

I doubt that any survey will be totally accurate to the point of being completely definitive. The results should be INDICATIVE.In other words, the results should indicate what a business should do and to whom it should make its offers.

If you don't know for sure if some people will want and be able to pay for what you offer, then be sure that you survey enough of them. If you need a customer-base of 200, and there are 2,000 prospects, don't just randomly survey 20 of them.

NOTE - Representative means the selected people are much like everybody in the group as a whole.

A randomly selected, representative group is chosen because surveying the whole group of thousands or more people isn't affordable. If your target market is small, do your best to reach all or enough of them to find out if your business will be profitable.

For example: If I survey 100 out of 300 small businesses to find out who may be true prospects for my service, I wouldn't care if 80 respond negatively or not at all, if I get 20 clients. 20 clients would be all I could handle at a time.

Realistically, I'd need to reach out to a few more prospects than I need just in case I lose a few clients along the way.

My conclusion is - The research is successful if we get the results we need, even if they're not the results we wanted.

Thank for the question.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Have you ever competed with Wal-Mart?

Subject: Have you ever competed with Wal-Mart? Author: Hamilton

I've read what you've written about Wal-Mart. I wonder if you're not taking it seriously enough. People know that Wal-Mart has low prices and an easy return policy. It's hard to compete with these, plus one stop shopping.

Have you ever competed with Wal-Mart? The supercenters have groceries too.

Subject: Re: Have you ever competed with Wal-Mart? Author: Dennis S. Vogel

Hi:

First of all - No, I've never competed against Wal-Mart.

I worked for W-M for almost 10 years, I started out in a small store in Nebraska. Then I transferred to a bigger store when I moved back to Wisconsin.

On the subject of the easy return policy.
Keep a few things in mind -
1) In many cases, people found the products without any help from a W-M employee.
2) They stood in line waiting to pay for the products.
3) Then they probably wait in line at the service desk to return the products.

These three may be easy, but they're not convenient.

What I'm about to write is something that's not well-known and the facts vary from situation to situation.

Because of W-M's size, it controls most, if not all of its supply chains. This allows it set prices. W-M buyers tell manufacturers what W-M will pay for a product. (W-M also puts other pressures on manufacturers.) So, the manufacturers have some choices.
They can -
1) Tell W-M where to stick it.
2) Achieve economies of scale that let them make a lot of products at increasingly lower costs.
3) Use cheaper materials and labor.

Do you think that those accusations of W-M buying products made in foreign sweat shops is pure fiction?

Maybe W-M executives didn't know about the sweat shops, but some people will have things made that way so they can afford to charge W-M what W-M is willing to pay.

I don't know which manufacturers choose which option(s). However, what I've seen at both W-M stores I've worked in is there are shopping carts full of products that customers had returned. This happened regularly, not just in January when people returned Christmas presents.

There had been, and probably still are, literally pallets of defective products that are kept until a truck comes to pick them up.

If you know somebody who works at the W-M store closest to you, ask about this? Why? Because I think it's significant.

The questions that comes to my mind are -
1) Does W-M return so many defective products because there's a certain percentage of products that are defective no matter who sells them?
2) Or is it because W-M forces manufacturers to cut production costs?

So, let's tie this all together. You can use facts about W-M inconvenience to show how it's easier to do business with you despite the one-stop shopping of W-M stores and its supercenters. If you'd want to use W-M's lack of quality as a marketing focus, then gather facts. W-M may threaten you with legal action but if what you publish is true and a lawyer will back you, call their bluff.

W-M could try to force me to remove and retract things I've written about it. If it did, I'd tell it, go for it. I'd contact the press and the reporters would jump in and investigate. W-M would hurt itself with the bad publicity more than I ever could.

It's major competitors would probably join in, too, like sharks sensing blood in the ocean. Small retailers would probably band together and join the fight too.

It may sound gross or overly macho but it almost applies to this discussion. If an enemy can bleed and it's bones can break, it isn't invincible.

But back to your situation - To be specific, I'd have to know more about your business and target market.

If your target market consists of retired and unemployed people who have little money but a lot of time, you won't win. If your target market consists of people with discretionary income and little spare time, then focus on them.

Very few businesses are going to sell to "everybody." Not even W-M gets "everybody." W-M has weaknesses, you may just end up shining a bright light on them. Just don't base your whole marketing program on W-M's weaknesses, show your own strengths too.

I read an article about the lack of customer service lately. The author wrote that Wal-Mart puts a whole downtown under one roof. He probably wrote that for convenience instead of writing the exact situation.

Just as an example, in the retail sector, the downtown where I live has businesses that offer what W-M doesn't -
-Tailored-made formal wear
-Gourmet candy
-Video tape rental
-High quality upscale men's and women's clothing
-Decorative wind socks and fancy kites
-High quality electronic products
-Service-oriented restaurants (not just a snack bar)
-Computer sales and SERVICE
-Antiques
-High quality upscale gifts
-A pharmacy that delivers prescriptions
-High quality home furnishings not just cheap particle board products that fall apart
-Spas
-Complete lines of auto parts with knowledgeable staff

And these are besides the other businesses.

A downtown or even an individual business can sell things that Wal-Mart would never sell. Why would W-M sell some things?

Because W-M stores will only sell (continually stock) products that thousands of people will buy.

If you have a local target market of 600 people who buy often, you may be to stay in business. That won't work in W-M stores except in the electronics department, if even there.

In other words, if a small business were to sell 1,000 bottles of shampoo in a week, it probably couldn't keep the shelves stocked. If a W-M store failed to sell 1,000 bottles of shampoo in a week for a period of 6 months, it'd probably discontinue shampoo sales.

Just one more point.

Have you seen any handicapped people achieve a lot of things? (The stories are available to read in some magazines.)

How do you think they do that?
Do they do it by concentrating on what they can't do?
No, They focus on what they can do.

My advice for you and others reading this is - Develop your strengths, find somebody to compensate for your weaknesses. (We all have some.) Focus on things that you do well and others are willing and able to pay you for. Market it well and W-M won't be able to stop you!

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Wednesday, June 15, 2016

How Much Testing Is Enough?

How Much Testing Is Enough? Author: KatyD

You and others advise us to test ads, but how long should we test them?

How often should we test them?

Re: How Much Testing Is Enough? Author:Dennis S. Vogel

Hi Katy:

I don't remember hearing or reading anything about this before. The best answer I can think of is to advertise something, including test ads until you're sure that the market for that product/service has become or shortly will be saturated. (There may be times that a market for a service or perishable product would be saturated.)

Garrison Keillor wrote in his tales about Lake Woebegon about people desperately wanting a tomato in late spring, but by late summer, after the tomatoes in everybody's gardens are ripe, they can't even give tomatoes away.

If you can't even give something away, then the market is saturated, at least for a while.

This begs the next logical question -
"What would a person know when a market is saturated instead of an ad just losing its effectiveness?"

This would depend on the product/service. One possible way is - If you've tried ads that have covered every "hot button" and sales are weak or not happening, you should probably figure that the market is saturated.

A "hot button" is something that triggers a buying response. If a guy tells me that he needs a car that's dependable, then for him (& others like him) dependability is a "hot button."

In a personal selling example, I could make it even better by helping him precisely what "dependability" means in his situation.

In advertising, I could make it more powerful by learning how niche members define & prioritize factors, so I would know what increases & decreases value (how they define "value").
- Fuel economy - Quick starts - Few expensive/extensive repairs
- Mechanical performance - Body & chassis condition & durability

Of course, it might take the pushing of more than one "hot button" to get somebody to buy something.

You could be daring and offer the product/service for a very low price, (but have an expiration date) and find out if anybody will buy it. You can bill it as a marketing test to find out if anybody is still interested in the product/service.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Wal-Mart is catching my customers Author: fish story

I've read some of the latest marketing books. The authors mostly advocate specializing as a way of limiting competition, plus to draw in more prospects.

I specialize in fishing equipment. Unfortunately, Wal-Mart sells products for prices that are about what it costs from my supplier. I know I shouldn't try to compete on price because it's a weak foundation and Wal-Mart will be able to beat everytime.

But how can I compete when people are more apt to go for the lowest prices?

Re: Wal-Mart is catching my customers Author: Dennis S. Vogel

Hi:

Here's some ideas for you.

You can do joint ventures with boat dealers in which your products would be a purchase bonus or may be they would recommend you as their official fishing equipment supplier.

You can have a contest for best fish story in two categories, true and false. This could attract attention.

This may work with fishing jokes too.

------------------
One year when the Green Bay Packers and the Chicago Bears weren't in the play-offs, the coaches decided to have an ice fishing contest.

Each of the 3 days, the teams were fishing the Packers caught fish, but the Bears didn't catch any.

At the press conference afterward, the Bears accused the Packers of cheating. They took reporters to the Packers' fishing shack and pointed to the hole the Packers cut in the ice.

The Bears showed all of the ice they caught compared to the Packers, who only caught fish.
--------------------

Post pictures of people with their fish.

Invite people to come and discuss fishing in a group setting.

Have somebody you know and trust, who won't be recognized as being connected with you go to Wal-Mart to find out how much/little W-M employees know about fishing. S/he may need to do this a few times to meet the various people who cover that department.

Sometimes, that's all the employees do, they're assigned to cover a few departments at a time, so they probably don't know much about any of them.

Be sure you have a strong Unique Selling Proposition. It can be similar to -

"Do you know how when you go to the sporting goods department in a big discount store the employees grab a flyswatter when you talk about flies? At Fishstory LLC, we know the local fishing conditions and can recommend the right equipment so you can catch what you want."

Get a free web site if you don't already have a site and a message board like this one for your customers and prospects.

Establish yourself as the local authority with fisher-people and the press. If an issue about fishing comes up, submit your opinion by phone or by sending a good, crisp press release. There are plenty of books and articles about publicity and press releases. Ask at a library or book store.

Ask about having a fishing column in the local newspaper or a feature spot on a radio/TV station.

If you have more questions, please post them.


Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Customer Relationships

I've read many times - people want high-tech and high-touch.

Some companies send out messages from their CEOs. We know these messages may have been written by others who do it for the CEOs, but what's important is the effort to reach out to people.

If customers are more apt to identify with somebody else (other than the CEO), then a person who is like them ought to chosen to communicate with them - a spokesperson.

The messages may not elicit warm and fuzzy feelings though they may be written in an informal, friendly way. However, they still show an effort is made to have a relationship.

In a relationship, each party involved has to "own" it. As owners, they're able to change it. So, a company doing what I propose should be flexible. A rigid agenda will probably lead to failure.

A facilitator, like a moderator, will have to "drive" the project but still open to directions from the customers. As a facilitator, s/he may have to stir things up at times by introducing new subjects.

Each part of a business has to be like this to thrive. Too many business owners are watching competitors too much and listening to customers too little.

The internet, with e-mail, gives businesses quick access to customers. Businesses should be open to quick access from prospects and customers.

The internet is too powerful to be used only for advertising.

A possible way to get people to opt-in to receiving messages is to show the company has opted-in - is set - to receive messages from customers who have concerns.

To do this effectively, the company must have real people that customers can contact (burt@abc.com instead of info@abc.com).

I know this can cause problems when people like "Burt" quit or are downsized. It may leave customers feeling abandoned. It may be worth the risk.

Somebody else can be assigned to replace "Burt" or whomever leaves.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Keeping High-Profit Customers

I'm writing this based on bricks-and-mortar businesses and direct sales. (I'm condensing this a lot.)

It can be dangerous, financially, to serve low-/no-profit customers. They may demand the same amount as or more service from the staff than high-/medium-profit customers.
This means-

1) Some (valuable) customers may not be served satisfactorily and go to competitors.

2) It's bad for staff morale if they're being pulled in too many directions at once.
2a) They may be able to serve fewer customers and still bring in enough to cover overhead and generate profits, if they're serving high-/medium-profit customers.

3) It uses up payroll inefficiently. By using database marketing (recording customer information), high-/medium-profit customers can be called or sent letters (e-mail or postal). This means attractive offers can be sent to them instead of to the general public or the whole customer-base.

I realize some low-/no-profit customers may become high-/medium-profit customers in time. It may be best to refer them to a business (a competitor) that has a different cost structure and can serve them better and profitability.

High-/medium-profit customers are apt to be those who may 1) buy often; 2) buy a lot per transaction; and don't tie up the sales staff up for long periods of time.

Since the average American moves every 4-5 years and/or changes e-mail addresses often, it's vital to give them ample incentive(s) to keep their information in your database up-to-date. What constitutes ample incentive(s) is up to them, not up to us, to decide. (Ask them.)

Since high-/medium-profit customers probably value your products/services, it shouldn't be hard to get their input.
Here's a sample script-
"Since it seems that you enjoy what we offer about as much as we enjoy serving you, I think it may be important to you to keep getting notices of offers and new products/services. If we're able to send you notices by e-mail, we could offer you lower prices because e-mailing notices saves us money. Would you like to receive our notices personally, by mail, or through the mass media?
What is your (e-mail) address? -OR-
Which radio station do you listen to most?
Which newspaper do you read most often?

Thank you for the information, to show our appreciation, here's __. Would you please be sure to keep us updated on changes of your (e-mail) address so we can keep you updated?" Whatever you say, practice it so you can say it smoothly and confidently. If you're shy about asking, then your customer is apt to be shy about answering the questions. Just ask calmly and reverently as if it's just a regular part of business.

In my post above I wrote-
I'm writing this based on bricks-and-mortar businesses and direct sales. (I'm condensing this a lot.)

Evidently, I condensed my post too much.
People have respond negatively to it in another venue, so I'd like to try to keep you from misunderstanding my points.

There's a maximum number of customers that any one business or salesperson can serve.

Since Wal-Mart gives very little service, its cost of fulfillment is low. So, it can afford to get small amounts of money per customer, as long as each store takes in a minimum dollar amount everyday.

But a service intensive business that has a high cost of fulfillment can't afford to have a lot of small transactions, why? Because small transactions may take up just as much time and energy as big transactions.

In the beginning of a business or a sales career, it may be necessary to serve whomever is able to buy. After the business or career is established, it's vital to concentrate on customers who are most interested in what you offer and are able to pay for it.

I also wrote that it's best to concentrate, preferably through direct mail or e-mail, on marketing to high-profit customers. I'm not suggesting that you slam your door in anybody's face. Don't insult anybody.

You can get more high-profit customers with referrals. If you'll ask any customers for referrals, I advise you to ask your high-profit customers. They're more apt to know other people, like themselves, who may become high-profit customers.

I know it sounds mercenary, but as a marketing consultant, would you want me to help you reach people who will pay you $2,000 per year or people who will pay you $20 per year?

It'd be my job, as I understand it, to help you reach and keep those who will pay a lot of money. I'd also advise you not to turn up your nose at anybody.

The way you handle low-profit customers is up to you and your business category. I'd advise you to use a form of what I'd say to somebody who can't afford my service.

"What I can do for you is give you some high power information and my free service. This way, you can keep the money you take in. You can invest that money back into your business and help it grow even faster. After using these, you're business will grow to the point where you're serving more customers and you won't have time to run your marketing program. At that point, you'll have money that you can spare and you'll need my full-service."

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Don't Cut Back On Marketing, Just Do It Better

In Case of Economic Slowdown, Spend More

First, I want to make it clear that I don't advocate clobbering consumers with marketing messages wherever they may go.

Second, what I do advocate is finding what consumers will want in a situation, then offer it to them either at that point or just before it.

This highly targeted method may actually mean spending the same amount or less on marketing (your actual results may vary).

A very simple example would be- Getting a factory owner to give the following message to his/her workers.
"I appreciate the fact that you've been working in near record heat. It's important to refresh yourselves and be sure you drink enough liquids. Please accept this certificate for a free 12 ounce beverage at __ as a gift of appreciation." Now, why would the factory owner do this (and probably even pay to make the copies)? Because the morale and health of the workforce is vital. And because, other than paying about ten cents for the copies to be made and distributed, it would be free.

Why would a restaurant or grocery store owner want to do this?
1) 12 ounces of soda isn't apt to fully quench the thirst of hard-working, overheated factory workers. (They'll probably buy more.)
2) The air-conditioned environment of the restaurant or store will feel very good. (They'll probably stay for a while.)
3) The workers may be hungry also. (They may buy some food, too.)
4) The combination of these factors are apt to register in the workers' minds. (When they get overheated and thirsty again, what do you think will come to their minds?) In short, don't cut back on marketing, just do it more efficiently and effectively.
Note: There are also ways of using mass media in similar ways.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Plant A Mental Seed That Your Big Competitor Will Water & Fertilize

Here's an example a retailer can write-
"Next time you're in a big discount store looking for somebody to answer your question, remember we're here at Life's Necessities with your answers."
-OR-
"Next time you're waiting in a long check out in a big discount store remember that at Life's Necessities you can find what you and check out quickly because we realize your time is important to you."

What you should do is-
Pick out an obvious weakness your big competitor has and isn't apt to fix and keep picking on it.
It's violent example but- In boxing if an opponent has an injury, a boxer is apt to keep punching it in order to win.

This is what you need to do to win your fight. You can do this in mass media or flyers, but remember to include a product or service offer so it will be a specific invitation.
==================
So, remember, when you need an idea to overcome a big competitor, come back to this forum. Be sure to bookmark this site so you can get the idea you need quickly then you can implement it quickly.
(This pertains to my mentor, Jay Abraham saying, "People are silently begging to led."

You should do this too. Suggest what people should do to get the most benefit from their relationship with you.

Thanks for visiting the Thriving Small Businesses forum.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/

Why Good Small Businesses Are Struggling To Survive

Somebody asked this in another forum I'm involved in-
>Can someone tell me why these 98% of small
>business provide better services but still
>struggle to survive?

The whole answer to this question would require more space than is available in this forum.
My short answer to his question is-
The best product/service, even ancillary customer service is unprofitable unless it's properly marketed.

Some small business owners say they rely on Word Of Mouth. So, of course, they're struggling.
Referral marketing (please don't call 'Word Of Mouth' a form of marketing unless it's managed) is good but not effective if the business's customers aren't articulate or motivated enough to refer their relatives and friends to the business.

Some businesses use customer testimonials that are just generalities like-
"It was terrific." JM St. Paul MN

This is how some people talk about good experiences with businesses. That's why referral marketing doesn't always work.

When you talk to customers, ask them for specific examples of what pleased them. That will give you better feedback that you can take action on (implement on a wider scale) and also may help them bring you referrals because they'll have something specific to say.

You may have to softly coach them by saying something like-
"So, what you're saying is- We took the time to find out what you needed instead of trying to sell what would bring us the most profit. Is that what you mean?" Then when they talk to others they'll have a clearer statement to make.

Wal-Mart goes into its stores and makes commercials that seem like real testimonials from customers and employees. W-M spends big bucks on airing them. (They should, however, be required to post the notice "Your actual experience may vary." Or "WILL vary.")

Small businesses don't have enough money to match that. But small business owners have a better chance (than big businesses) of tracking who refers others to them. By tracking it, business owners can thank and maybe reward their vocal customers.

Remember that whichever behaviors you praise a person for will probably be repeated.
People want positive strokes!

I recently read an article in Zig Ziglar's e-zine. I'll quote part of it then I'll write my view.

Keeping More Of Your Customers By John P. Hayes, Ph.D.
Why does your business lose customers?
Studies of customer defection tell us that 3% of customers move away or die;
5%, friends lead them to shop elsewhere;
9%, competitors provide a better offer;
14%, product dissatisfaction causes them to shop elsewhere; and 68%, indifference
makes them feel no one cares about them, so they spend their money elsewhere.

Notice: More than two-thirds of customers defect because of indifference!
There's not much you can do about the 3% of customers who move away or die. Nor can
you do much about the 5% of customers who are persuaded by friends to shop elsewhere.
I disagree. I know there are things business owners can do to prevent defections. Below is one of my
proposed solutions.

Institute A "Defector Detector Program" Post a message (send it if you have a mailing list) that "We're Looking For Defectors."
Let customers know that you're interested in knowing why they buy from your competitors.
Ask what it would take to keep them as a customer.

Yes, I realize that some may just say that they're leaving you to get some kind of concession, but wouldn't it be worth it to stop as many defectors as you can. Whatever it takes to keep a customer, it's apt to cost more to replace a lost customer. How else will you easily find out what your competitors are offering AND what is interesting to your customers? By doing this, you may not only keep a customer, but gain the vocal, evangelical person who (almost) persuaded your customer to switch sides. This "evangelist" would be a valuable member of your team, right? How many people might s/he convert to you?

This will also show the 9% who may think that you're indifferent, that you really care. I know that spending levels vary from customer to customer, but can you afford to lose 14% (5% + 9%) or more of your profits? This program may cut into your profit margin, but losing and replacing customers will definitely cut into your profit margin.

If you invest 10% of your profits to keep customers (you would otherwise lose), you'd still probably save four or more percent. This is besides what you'd gain in referrals.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2016 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/