September 2024
Volume #25 Issue No 10

Telling the doctor what medicine you want; it may work with the television ads, but should not work with your business!

I was asked to be the guest expert in a podcast recently. Apparently, we made an impression on a participant who wrote several weeks later looking for help with their business. The response I gave was that I would like to first look at the "vital signs" of the business.

I like to work much like a doctor who takes your pulse; checks your eyes, nose, ears, and mouth; listens to your lungs and heart; and checks your blood pressure.

When there was no response for a couple of weeks, I decided to call this person. The first comment was, "I don't want to look at numbers. Marketing is what is important."

This person went on to explain how many millions of dollars their business does each year in products and services. They also said their lines of credit were maxed out and they could not pay their bills.

Those who watch television can't help but see a lot of commercials about medicines. Each with a statement of, "Ask your doctor about...", which is what the drug company expects you to do. And, I would expect the lazy doctor is going to give their patient a prescription for that drug.

Back to the business owner with the problem. They said they were contacting several consultants. Perhaps there will be a consultant who will tell the owner what they want to hear.

I am not looking for any consulting work. However, I am concerned about this owner and others in a similar situation. This is not the first one this year that I have had a similar conversation with.

The advice is simple; Share the symptoms of what you see as the problem and then let an expert explain the cause and cure.

Should you be flying solo? Article of the Month

We had a bit of a giggle when we received an email in July addressed to Independent Retailer Month. This individual wanted to "participate" in the celebration by sharing their expertise in inventory control.

With a bit of research we found them to be one of many people selling a service and consulting service. Last time we looked there were over 60 people selling themselves as "experts" in retail; all using the same software from this company. We have not heard back from this person when we told them we knew the product they were selling.

If you are reading this and thinking I am poking at them, you are correct. If you are going to use the services of a "consultant", they should be there to solve a problem; not be a permanent part of your business. (Just my opinion and experience)

The article of the month for September shares alternative ideas. They work and can produce results. And, they do not have to be getting money from you every month.

Article of the Month

The Thank You Economy
September's book of the month

The Thank You Economy by Gary Vaynerchuk is our September book of the month. The book has an important message as it discusses the transition of advertising that overwhelms customers with repetitiveness and compares it to what a customer learns through social media.

However, when it comes to marketing, it is not the most important message. The most important message is, "Spend the majority of your marketing money to retain and not to attain".

Last month I shared an example with jewelry store owners. A person comes into the store and the salesperson asks what occasion they are shopping for. In the example, it is an anniversary gift. My question to these owners was, "Why aren't you marketing to this person at the same time next year?"

Shy of a breakup, divorce or death, there will be an anniversary on the same date next year. This example also fits florists and many other small businesses.

The concept fits for a chimney sweep or any other service business that could provide an annual check-up.

Book of the Month

Determining the cost of inventory
Internet Tool for Your Business

It may have started with donuts; one donut is fifty cents and a dozen is five dollars. When you buy more you get a better price. In your business, you can often increase your profit by buying for less.

But, making more profit is more than just buying enough to get a better price. You have to consider the cost of freight as a vendor will often pay the freight cost when the order reaches a certain size. There is the consideration of how long before you pay for what you have bought. And you have to consider how long it will take you to go through the entirety of what you have bought.

The other option is buying a lesser quantity sufficient to meet only your immediate needs.

Buying for your business is more complicated than our donut example. Hence, the Internet tool of the month is a special calculator on the Profits Plus website. This calculator will compare these two options. All you need is to enter the information about the item you are buying and the calculator can help you make a decision as to which option will help you make the most money and how many you should order..

Each month we highlight one of the 47 free tools on the Profits Plus website; we call them "calculators". While some provide analysis by numbers and ratios, some are assessments and others are self-examination questions. Many are downloadable while others, because of the complexity of the calculations going on behind the scene, are a part of the website and allow you to print your answers. None of them require you to give any personal information nor are there any "cookies" tracking you or your information.

Internet Tool for Your Business

Swag
Staff Incentive for Your Business

We have attended a couple of events in the last month that give us an idea for the September staff incentive. Each of the events had swag bags for the guests. We had special swag items for our staff. The name of our business was Skyway and our staff education program was called, "Skyway University."

With the initials, "SU", we found that Syracuse University had a lot of items in their campus bookstore that had, "SU" on them. We did some shopping for coffee mugs, key chains, pens, and other items.

This merchandise became the incentives for various occasions of accomplishment. As with other forms of recognition, the incentive does not have to be expensive. The incentive is not remembered for the cost. It is remembered for the occasion that caused the incentive to be given.

We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.