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The Best Sweepstakes/Email for Small Businesses

You all know I’m a fan of Roy H. Williams, aka The Wizard of Ads. (Look down the right-hand column to see how many posts I’ve tagged him.)

You also know I have studied a number of Wizard of Ads Partners like Tim Miles and Jeff Sexton and follow a lot of their work.

You also know that I am a life-long learner always looking for more information to consume to be better at what I do. If you’re reading this blog, it is likely that you are, too.

That’s why I’m telling you to follow this link…

http://www.wizardacademy.org/giveaways/foundations-of-the-academy/

The link will take you to a Sweepstakes offer of over $3000 in materials from Roy and others associated with Wizard Academy.

Most importantly, it will sign you up for an email newsletter that will bring you amazing articles from a wide variety of Wizard Academy Alumni – Nobel prize winners, best-selling authors, NASA scientists (yes, true rocket scientists!), marketing wizards, and business owners just like you and me.

I hope you win. (The emails alone will make us all winners.)

-Phil Wrzesinski
www.PhilsForum.com

PS I entered. I also get extra entries when I send people to enter, but I’m not sure if this blog will qualify to get me those extra entries (you can tell them Phil sent you). That’s okay. I’m more about getting you signed up for the email and all the goodies in it (I’ve already received one email and found tons of value). That’s the real value.

Getting Customers to Walk Those Last 20 Feet

“At the end of the day you’ll get nothing for nothing.” -Les Miserables

I’m on the planning committee for a new street festival that will happen this summer in downtown Jackson. It’s a big one. Artists, Musicians, Restaurateurs, Local Brewers and Wineries, a Color Run and more.

Some of the merchants on the streets that will be closed are concerned. I hear comments like…
“These events never draw me any traffic.”
“All these events do is close me down to my regular traffic.”
“Too many street closures and I’ll have to close, too.”

Five thousand people walking past your shop and you can’t do any business?!?

When you ask those who are complaining what they did to get those people the last 20 feet from street through door, the usual response is a blank stare.

Street closures for construction suck! Street closures for fairs and events can be a windfall… if you recognize that it is your job to get the customers from the street through your door.

If you do nothing, you’ll get nothing.

You have to do something.
You have to do something special.
You have to do something that will move the needle for someone who came down to look at classic cars or taste local cuisine or peruse amazing art.
You have to do something that gets their attention, makes them notice you, be interested in you, desire your products and services, and make the purchase.

You can’t reach them through radio or TV or email. They are 20 feet away. Right here right now. You have to go out and get them. You have to do something so amazingly wonderful that they drag their friends through the door with them.

That last statement could apply any time of the year. If you’re not getting the traffic you think you should be getting, whatever you’re doing to try to attract customers is pretty close to nothing in their minds. Time to up your game.

-Phil Wrzesinski
www.PhilsForum.com

PS One simple clue into what not to do to get them that last 20 feet… People at street fairs – especially ones involving art and food – spend like drunken sailors. You won’t win them over with a sale or special price or discount nearly as much as you will by offering them something that matches their world view. They are already over-paying for food and drinks at these events. Entice them with something impulsive and fun and in line with their (your) Core Values. They are ready to overspend. Don’t disappoint them.

Teach What You Can Teach Part 2

In a follow-up to yesterday’s post, today I taught two high school classes. They were Child Development classes and I taught about the importance of Play for child development and how to find the right toys (tools) for Play. I’ve now taught this class to high schoolers, new parents, mom’s groups, and even a grandparents group.

For thirteen years I taught expectant parents and grandparents how to choose baby products at a class we did right in the store.

I do another talk called The Family that Plays Together, Stays Together that highlights how play and fun and laughter make you healthier and happier and strengthen the bonds of your family.

That’s just three classes based on the knowledge I gained running my store.

I’m pretty sure a good shoe store owner could teach about the importance of posture and good walking habits.
I’m pretty sure a good jeweler could teach about how to care for precious stones or the best way to polish gold and silver and brass.
I’m pretty sure a good grocer (especially one who specializes in locally produced goods) could talk about GMO’s and artificial sweeteners.
I’m pretty sure a good clothing store owner could talk about current fashions and trends in the clothing industry.
I’m pretty sure a good craft store owner could teach how to make something out of next-to-nothing.
I’m pretty sure a good health food store owner could teach about the difference in quality of certain vitamins and supplements.
I’m pretty sure a good bike shop owner could teach how to change your inner tube on your bike and other simple maintenance.
I’m pretty sure a good furniture store could teach the proper way to fix mars and scratches in a wood surface or how to get stains out of upholstery.
I’m pretty sure a good appliance store owner could teach about how to save energy while using appliances.
I’m quite certain a good hardware store owner could teach how to use tools safely and properly.

You’re a great retailer. What can you teach?

-Phil Wrzesinski
www.PhilsForum.com

PS When you decide to teach, the next thing you need is an audience. I get some of my talks because I put it on my website. I get others because I put it on brochures in the store. I get the rest because I make it so much fun that people in those classes tell others about it. (Yeah, that thing we call word-of-mouth).

Doing Business When Your Street is Closed

Winter is finally giving way to that other season – Construction. Orange cones are popping up everywhere.

And shortly after that, if you’re a downtown business, you’ll probably be facing Festival Season – that time of year when the city shuts down the street for a car cruise or an art fair or some other event.

Either way, at one point or another, if you have a Main Street business, your business is going to have to deal with a street closure. How you deal with that will be critical to your success. Here are some suggestions for keeping the till humming while the streets are closed.

CONSTRUCTION

This is usually a long-haul situation and requires some smart strategy. The key is communication.

  • Communicate with your fan base the best ways to approach the store and the best places to park.
  • Communicate what is happening with the construction. Give blow-by-blow accounts and updates.
  • Have fun with the construction. Post trivial facts, goofy pictures, interesting finds. Get your fans to post their own pictures. Play guessing games – take close-ups or partial pictures and have them guess what machine it is. Turn it into a focal point that might make people want to stop by and gawk.
  • Set up a shuttle (you can partner with other businesses affected by the closure) to help get your customers in to see you.
  • Offer delivery services for the time the construction is taking place.
  • Expand your hours so that you are open at times when less work and disruption is taking place.
  • Roll out a red carpet – yes an actual red carpet – to get people over muddy, dirty, disrupted areas.

Don’t just assume business as usual. Plan for a small fall off, but be proactive in your approach to make it as convenient and fun as possible for your customers to do business with you.

FESTIVALS

Street closures for festivals are a different beast and require different tactics. First, they are usually short-term events that take place during your typically busiest times – Friday nights and Saturdays. Second, they draw a lot of people, but not necessarily your regular customers, and not necessarily anyone who wants to shop with you. At the same time, they disrupt your regular customers and keep those people away.

Therein lies the key. The people on the street are not your regular customers. What would you do differently to try to turn these people into your regular customers? The first goal is to get them off the street and into the store.

  • If you sell jewelry, put out a sandwich board and offer “Free Ring Cleanings”. Get those customers in the store looking at the shiny, bright, glittery stuff in your cases while they wait for your polishers to make their rings sparkle. 
  • If you sell clothing, put some racks on the street of your unique offerings that will entice someone to stop on by.
  • If you sell candles, get that aroma wafting out your door and onto the street. You’ll attract attention in no time.
  • If you sell baked goods set up a fan inside the door so that chocolate chip cookie scent reaches the end of the block.
  • If you sell shoes, put out a sign showing how to check your own shoes for wear and tear. Have a sizing specialist standing out front to engage the folks on the street. Offer a free shoe-polishing stand.

No matter what you sell, there is something you can do to engage with the festival goers and either get them in the door today or at some point down the road. You just have to be creative and proactive. Open the doors, put out a banner and make sure people know you are open for business. Do something in conjunction with the theme of the festival. Sign them up to your mailing lists, your birthday clubs, and any other program you offer. Use this opportunity to farm for new customers. There are a ton out there. Most of all be ENGAGING. Have fun with the event.

Street Closures are a reality. How you deal with them will have a direct impact on your bottom line. You can wallow in misery complaining about the lost business or you can let your creative juices flow and look at them as an opportunity to do things differently.

You know which one will pay off in the long run.

-Phil Wrzesinski
www.PhilsForum.com

PS I knew of a hair salon that was half a block off the beaten path of a major festival in her town. Rather than lament the street closures combined with no foot traffic at the front door, she had her staff on the street handing out coupons for free ice cream cones inside her salon. For the cost of some ice cream she was able to get a ton of traffic that always resulted in new clients and new appointments.

PPS Also remember that those festivals do serve a purpose. First they make your downtown seem more active and vibrant. That message sticks with people throughout the year. Second, they attract people to downtown that might not go otherwise. Fear of the unknown keeps people from shopping in new locations. Third, they often serve to raise funds for charities and non-profits, the same ones that would be hitting you up double if not for the events. Embrace them and enjoy them and make them work to your advantage.

Be the Best at One Thing

Quick, name the second place person in the MVP balloting. Any sport. Bet you can’t unless it was your favorite player who got snubbed.

When they give out the awards at the end of a sports season, the big winners are always the leader in at least one category. In fact, the short list of potential MVP’s always starts with the leader in each category.

Being pretty good in everything doesn’t get the same attention as being the best in one thing. It applies in sports and it applies in retail.

If you want attention for your business, you have to be the runaway category leader in one category. You have to be so far out in front that your competitors have already resigned themselves to a fight for second place. You have to be not the first but the only company that comes to mind in that category.

When you do that, you will get all the attention you desire deserve.

How do you figure out which category you should own?

  1. Make a list of everything you do better than your competition.
  2. For everything on that list, write down all the competitors who at least try to own that category.
  3. Figure out which category has the least amount of competition. (In other words, the one you own the most)
  4. Figure out how to do it even better than you already do. (In other words, widen the gap).

Spend all your time and energy growing your lead. You’ll win all the awards (customers) you deserve desire.

-Phil Wrzesinski
www.PhilsForum.com

PS After you focus on your best trait, shore up your worst trait – the one that drives customers away. But always, always, always in that order. Best first. Worst second. No one remembers second place or an average business.

Setting Yourself Apart From the Pack

I read a fascinating book called Built to Sell by John Warrillow. The book is a business parable about a guy who owns an advertising agency and wants to sell it. His mentor shows him how to transform his business to make it salable.

Most retailers would dismiss the book because on the surface it doesn’t seem to apply. The first step is to limit your focus to only that which you do better and more profitable than anyone else so that you can create a turnkey operation. That doesn’t translate well to indie retail.

But there is a lesson hid inside there that we all can use.

Maybe you cannot change your product mix to become the leader of the pack, but you certainly can change your services. In fact, you can change them so radically that you become a category of one (another good business book worth reading).

Simply decide which customer subset you want to cater to, and then cater to them at the exclusion of all others.

Roy H. Williams calls this “choose who to lose”.

For instance, you could decide you only want to cater to the uber-rich. You’ll probably want to change some of your product, but to truly capture that customer you’ll have to totally change your services. Hours by appointment only. Red carpet ready and waiting to be rolled. Soft sofas and chairs for seating. Food and drinks served. A personal shopper to bring the items to the customer. Private showings for her and her friends at her penthouse.

Or you might be a toy store that caters to the daddy crowd. That might mean beer and pizza and big-screen TV’s, pre-wrapped gifts, diaper changing service, plenty of activities to keep the kids occupied until the game is over.

Do something like that and instead of the kids clamoring to go to the toy store, dad will be suggesting it during breakfast.

While it is getting more and more difficult to separate yourself just on the products you carry, this age of self-serve checkouts leaves you a ton of room to separate yourself from the pack by the services you offer.

Who are you willing to lose to win the heart (and pocketbook) of someone else?

-Phil Wrzesinski
www.PhilsForum.com

PS We started with the bargain hunter. I don’t match prices or run coupons or special deals just to entice people in the door. Yes, we have a clearance sale to move out the dogs, but that’s it. We instead focus on customers looking for trust. There are plenty of them out there.

Is it a Business or Just a Job?

I work with a lot of smaller retailers – start-ups and indies who are just getting going in this crazy industry we’ve all chosen. Many of them get this one question wrong.

Did you start a business or just create a job?

Most people think they are starting a business, but in reality all they have done is create a job for themselves, often a low-paying job at that. Then when they go to sell the business, they can’t find any buyers.

Here are three questions you need to ask yourself to see whether your retail shop is truly a business or just a job.

Could the business run without you? More specifically, could you hire someone to do your job, or is the whole reason the business exists because you exist?

Do people come to your business because of what you offer or what your business offers? If the vast majority come because of you, you might have a job, not a business.

Do you pay yourself a salary? If you don’t then it isn’t even a job, it’s a hobby. If you do pay yourself a salary, is it a good one? Is it enough to hire someone else to do that job? If you said no, then you might have a job, not a business.

Do you show a profit? If you’re paying yourself a salary, that is a good thing. It means that you could potentially hire someone else to do that job, while you reap the profits – assuming there are some profits. Some owners will make the correct move of paying themselves a salary, but do so at the expense of showing a profit. Some will keep profits low on purpose to avoid taxes. There might be a number of reasons for not showing a profit. Amazon doesn’t seem to need to show a profit. As long as the cash keeps flowing they (and you) can usually keep doing your job. But an indie retailer without profits probably won’t be able to sustain that cash flow for too long. You and I don’t have the deep pocket investors Amazon has. If you’re paying yourself a salary in lieu of showing a profit, you might have a job, not a business.

Not that there is anything wrong with having a job, not a business. You can make a healthy living for many years that way. You might like the job of being boss (and you might be really good at it). You might like the salary you pay yourself for being boss in lieu of having your business show a profit. Those are good and valid points for you to keep doing what you do.

The only downside will be the exit strategy. Once you decide you no longer want your job, if you didn’t first turn it into a business, you’re going to have a hard time finding anyone who wants to buy it. No one “buys” jobs. They buy businesses. Without a business, all you have left to sell are your assets.

Neither concept is wrong, but not knowing the difference can be costly down the road.

-Phil Wrzesinski
www.PhilsForum.com

PS If you want to turn your job into a business, you need to think about three things.

  1. Could I hire and train someone to do my job?
  2. Do I pay well enough to hire someone competent to do my job?
  3. Is there enough profit and/or growth potential to keep the business making money?
When you can answer yes to all three, you have a business, not a job. You have something you could sell down the road. You are truly an entrepreneur. Heck, you could should hire someone to do your job right now and go start another business or two.

The Best Ways to Grow Your Facebook Reach

Everyone is buzzing about the Facebook Fraud.

Real or not, paying for FB to “promote” your page is not a smart way to grow your business.

You need FANS not “Likes”. You want people who will engage and share. You want people who want to hear from you. You want people who want to see you succeed. You want people who will be your evangelists, bringing others to see you.

You cannot buy those people on Facebook. You have to earn them one at a time.

How?

Post Relevant Stuff: Tell them interesting information that is important in their lives. If you are a running shoe store, post information about training tips, upcoming events, injury prevention, etc. If you are a baby store, talk about safe sleeping, car seat installation, and potty-training. If you are an electronics store, post about innovations and upgrades and whether or not they are of value.

Post Shareworthy Stuff: Post things that no one else knows. Post things so cute and funny (while also relevant) that your current fans want others to see it. Post things that just beg to be shared. Share things to your page. If you found it Shareworthy, your fans will, too.

Post Engaging Stuff: Ask for opinions (and act on the results). Ask for thoughts and ideas. Naming contests, polls, and guessing games are engaging and fun.

Post Emotional Stuff: Speak to the heart of your customer. What is her desire in relation to your products? Sell toys? Speak to the growth and success of her child. Sell jewelry? Speak to the reaction on her face when she opens the box. Sell mattresses? Speak to the feelings of finally getting a good night’s sleep.

Nostalgia is a strong emotion for businesses that have been around the block a few decades. Post stories and pics about the olden days (if you think FB is only for the younger crowd, post a pic from the 60’s and get ready to be amazed).

Facebook, to truly be effective for your store, is not a numbers game. It is a message game. Win the message and you’ll have all the numbers you want.

-Phil Wrzesinski
www.PhilsForum.com

PS The big question is, “How often should I post?” To be most effective you should post at least once a day, but only when you have the right message and something new to say.

Tired of Saying No?

Everyone wants a discount. Everyone wants a deal. They bombard you daily. Can you match this price? Can you give us this break?

You’re tired of saying no. Me, too.

What if instead you started saying Yes?

Yes, I can do that. Yes, I can offer that. Yes, I can do something.

What would it take to say yes? Higher prices and margins? Support from your vendors? Lower expenses? Guts?

There are certain aspects of retail that lend themselves perfectly to saying yes. Food service is one. If you sell food, whether a sit-down restaurant in a fancy part of downtown or an ice cream stand on the boardwalk, you should set your prices high enough that you can say yes all day long to whatever gets asked.

Don’t advertise that you say Yes. Just do it. Say Yes out of the generosity of your heart. You’ll feel better (Yes always feels better than No). Your customers will feel better. They’ll start telling everyone else about your generosity. New customers will flock to see you because of that generosity.

When you say Yes more than you say No you’ll get more customers. Period.

Those of you selling non-consumable goods are tuning out. Stay with me. There is something you can do, too.

Generosity is contagious. You will be surprised what you can give when you start looking to give. Can you give free delivery? Free giftwrapping? Free extended warranty? Free balloons with your logo on it? Free assembly? Free tune-ups? Free shoe laces? Free yard stick? Free gift with purchase? Free information? Free instructions? Free tips? All of that should be built into your business from day one.

When someone asks for something, rather than tell them No, tell them what you can do. Say Yes. It feels better.

(Once again, though, don’t advertise it. Just do it. Give, give, give, and let your customers advertise your generosity for you.)

-Phil Wrzesinski
www.PhilsForum.com

PS Yeah, you might be thinking that you can’t raise your prices enough to cover any generosity. I’m telling you that you can. The formula is in my first Freebie, the one that launched Phil’s Forum Publishing LLC, and it is still as relevant and effective today as it was the day I wrote it. If you aren’t using my Pricing for Profit tips, you’re leaving money on the table and not giving yourself enough room to say Yes.

PPS Notice I did not say “match prices”. You don’t have to match prices to give generously. There are other valuable services you can offer. In fact, you don’t have to give away anything. But if your current strategy isn’t working or you are feeling beat up by the requests, this is another way to go. If you’re in food service, this is one of the best ways to go.

Give Your Business a Physical – Track These Numbers, Too

There are many different metrics you need to measure to determine the health of your business. Two of the biggest are Profits and Cash Flow. If both of those are good, your business is probably doing well.

But that doesn’t mean you don’t look at other numbers, too. That would be the equivalent of a doctor checking your temp and blood pressure and determining you are completely healthy without looking at anything else.

Here are some other numbers you should track to keep a check on the pulse of your business.

Traffic – Number of transactions you had this year compared to last year. Did that number go up or down? If it went down, why? 
  • Did your location get worse? 
  • Was there a change in the types and numbers of stores around you? 
  • Was there a drop in population? 
  • Did you cut back your offerings and categories significantly?
If your traffic was down, but none of these other factors were negative, you have a hole in your Customer Service (repeat and referral business) and/or Advertising (first-timer business). You need to find that leak and fix it fast.

Average Transaction – Take your total sales and divide by # of transactions. Compare to last year. If this number went down, why? 
  • Did you carry fewer high-ticket items? 
  • Did you add more low-ticket impulse items that people might run in and grab? 
  • Did you do anything to attract more youth? 
If none of those factors were in play but your average ticket went down, you have a hole in your staff’s ability to sell. You need to fix that fast.

Market Share – This is a little harder to calculate, but an incredibly valuable piece of information that can pinpoint problems – even if you had a great year on paper!
  1. Find the national sales figure for your industry. 
  2. Divide that by the population of the United States to determine sales per person. 
  3. Multiply that times the population of your trade area to determine the market potential for your area.
  4. Divide your total sales by that market potential to find your percentage or share of the market.
  5. Compare it to last year’s number.
You can have an awesome year with solid sales growth and decent profits and cash flow, but still be in potential trouble if your market share is slipping. If all your growth was fueled by huge growth in your market, but you aren’t holding onto your share of that market, then you are ripe for being picked off by a better competitor entering your market. You need to figure out why your share is decreasing and fix that problem now.

You can also have a lousy year with declining sales and profits, but mostly fueled by a change in the market. Maybe your industry is in decline (smaller sales per person). Maybe your trade area is shrinking. But if your market share is growing, then your big issue is determining whether to cut expenses and inventory and hope the market comes back or move to a new market.

Make sure your Profit and Cash Flow are good. Those are immediate life threatening problems for your business. If those are good, it buys you time to check/fix the other problems.

Give your business a full physical. An ounce of prevention is worth a pound of cure.

-Phil Wrzesinski
PS Be honest in your evaluations. Even if there are circumstances beyond your control, there are always circumstances you can control and improve while you ride out the storm.