Where is the Silver Bullet?

I have bad news to report: There is NO Santa Claus, NO Easter Bunny, Superman never existed, and there isn’t any single item that will turn your business around. We all look for that silver bullet but frankly it’s never just one thing. I’m sure there are some doubters out there that will say that’s not true. They will share stories of internet successes or a specialty that made them a leader in their field. So doesn’t that throw my statement out the window?

No, because just having the idea is only half of the battle. Sometimes it is even less than half of the battle. A few years ago a Wall Street stock broker used the ad line that said, “It’s not how many ideas you have; it’s how many ideas you implement.” Many of us have silver bullets in our hands and throw them away. I recently met a small bookshop that had been in business for 40 years and survived every type of competition possible. Then he shared his greatest idea with me. Sell books on line. At first you might say it’s a great idea but it is just a little late. What about Amazon and Barnes and Nobles? Actually he had the idea in 1994. Amazon started in 1995. He had the silver bullet that revolutionized the retail world but never acted on it.

My point is to look for the silver bullet, but knowing you have it is just as important. Again there is more than that. It is the ability to execute the idea and make it work. Some people can take the exact same idea and interpret in a way that doesn’t work while others think of the most finite detail that insures success. Some people just rush it through without thinking.

Ah, that must be all. Let me recap. First, have the idea. Second, know you have that killer idea. Third, act on your idea. Forth, execute the idea in a way that makes the idea work. Poor implementation kills some truly wonderful ideas.

You are probably saying another thing as important as the idea is the ability to finance the idea. But I don’t consider that an obstacle anymore. There are so many ways to get financing today and more angel investors who just want idea people. So as important as money is, there is one element that far outweighs it. That is the perseverance to stay with the idea after it has been rejected and rejected. When you won’t accept defeat because you believe in the idea so much that when someone says NO, you say NEXT.

The sheer enthusiasm and the uncompromising belief in a project can turn the common idea into a silver bullet. The irony of the whole process is that the better the idea, the more passion and belief in the idea, the better the execution of the idea, the more people will think you found that silver bullet to success. When that happens just smile to yourself and agree with them because they wouldn’t understand even if you tried. Every idea can be a winner and a loser but that’s up to you.

What Did You Learn Today?

When I was growing up, my parents had a nightly bedtime ritual for my sister and me. We had to brush our teeth, take our bath, put our dirty clothes in the hamper, and then jump into bed for that special time with one of our parents. We would always have a short story, and before we said our prayers my parents would ask one question every night that in retrospect has shaped our lives. The question was, “What did you learn today?” So many times we would say, “Nothing.” Then they would always expand that question in a fun way by saying things like “something small” or “something big” or “something you will never ever forget” or “something that you will forget tomorrow”. (Like Sally Johnson was a meany) If we still said nothing (which would never really happen) our parents would say, “Well I guess today was a bad day”.

The reason we rarely said “nothing” was because of the sheer excitement our parents would demonstrably show when we told them what we learned. Some days we might have 5 or 6 things we learned and they would get so excited and tell us that today was a stupendous, miraculous, and /or sensational day.

That little daily exercise shaped my life and the way I have lived it. My sister and I are never ending learners. I have a section on my computer of the things I learned today. It is right on the desktop of my computer and it is storage place for any new promotional ideas I learned, a new word or phrase, or teaching or writing techniques. No, I don’t make entries everyday but I always carry a manila folder with me of the things I learned to enter into computer later. Before I used a computer, I tracked what I learned in steno pad spiral note books. When I recently moved I went through my boxes or pads and read my thoughts from years before and I saved the best pages of the books I read and reluctantly threw the rest away. I then put the notes in my manila folder to enter into my computer. I told myself that I better plan to enter all this stuff soon because my folder was getting too big and I do carry it in my computer bag everywhere I go.

We went to a gala celebration on Saturday night of the New England Speakers Association’s 20th anniversary which brought people in from all across the country. It was just a wonderful affair. I am a past president of this group and it was great seeing all of my old speaker friends since we rarely get together because of everyone’s travel schedule. Feeling great about the event, we walked to our car only to see the back window of our SUV shattered and many things stolen--all of our Father’s day presents, gifts for the grandchildren whom we were visiting the next day, and of course my computer bag. One of my closest friends parked beside me and her car was also vandalized the same way.

I started to list all the things I kept in my bag, such the computer, an extra wallet with back up identification, two credit cards, all my cords, my cell phone and of course my manila folder of the things I learned. I then realized I hadn’t backed up the “the things I learned file” for about one month.

The computer will be replaced as will my cell phone, cords and credit cards. Most of it will hopefully be insured but I lost the irreplaceable--the things that make me who I am. It’s amazing that the things that are most important to us have little to do with money. My wife reminded me that I was attending some workshops and seminars next month and I would be full of new ideas. That actually eased the pain because my quest for learning has been ingrained in me from the time I was small and IS the reason for all of the success in my life.

Sometime it takes a tragedy to appreciate what we have. Maybe that’s the thing I learned today. Maybe it was the feeling of getting my mind expanded with a class or workshop that actually numbed the pain. Take a class, attend a seminar (you can even attend one of mine), read a book, start your own file, or just commit yourself to constant and never ending learning. Ask yourself the question, “What did you learn today?” Then apply it. It might just change your world. It did mine.

What Makes A Winner?

In the last 2 months I have been honored by being asked to join the judging teams of three of the most prestigious retail store competitions in the United States. Along with the Retail Association of Massachusetts (The RAMAEs which I created 10 years ago) that makes three additional awards programs I am judging (eat your heart out Paula Abdul): NICHE Magazine Top Retailer Awards from the Philadelphia Buyers Market of American Craft, Instore Magazine which judges jewelry stores in its America’s Coolest Stores contest, and The Dance Retailer News Magazine Awards.

I just want to share some general observations you might find interesting. First, there are a lot of great independents in America today that are better run, more profitable, more creative and innovative than people even realize. The second observation is that most of these stores are NOT in a mall. Actually, to my surprise, more are located in downtowns than in malls. Many are in shopping centers, but not the traditional enclosed malls. Many of these winning stores are free-standing stores which create their own traffic. They are the big fish in the small pond. They are truly destination businesses.

The majority of these stores sell better merchandise. They have promotional merchandise but they are known for better, upscale merchandise. None of the finalists I have reviewed ever claimed to be the cheapest in town-- the best, yes, but not the cheapest. Most of these winners have fair and competitive prices but they work on very healthy margins.

They are all specialists and experts in their area of expertise. They are perceived as the authority by their customers. I believe that customers shop these stores for reasons other than their merchandise although they are all known for their selection. It might just be expertise or service. Education is also a common denominator among all of these winners. They believe in both educating their customer and the constant education and training of their employees. This might also be the reason that the employee turnover rate among these winners is significantly less than the average. It is also uncanny how most of these winners embrace charity and their involvement in charitable initiatives and campaigns. Again the winners are generally involved in their trade associations and have had leadership roles.

Business can get tough and some have experienced challenging times. Many are very proud to share how they were able to come back after a disaster. A few have even overcome bankruptcies or failed stores or concepts. Is that what makes them a little sharper and hungrier than their competition?

All of these winners have a clear message in the mind of the customer. They don’t do this and that. They are known for something. They don’t confuse the customer. They seem to believe the philosophy that there is always someone doing business. And then they go a step higher by adding it better be me.

BUT- THAT’S NOT WHY THEY WIN.

They all deserve to win, but they win because of the story. Because of something that is so compelling that it captures the attention of the judges. Something that the judges love to talk about. Something that’s different, innovative, ground breaking, or a bold ingenious idea. It all still comes down to being or doing something just a little different. There are plenty of stores that have overcome obstacles, created a strong following of customers, built great looking stores, and are involved in their communities or charities. But how many have created a new category, a way to compete with internet shopping, a new type of merchandise, or their own signature collection? (And this is NOT just in apparel, gifts or jewelry. I know a landscaper in Florida who created his own signature line of mulch.)

Doing all of the things I mentioned will get you in the arena but the winners are the ones that rewrite the book. They learn, adapt, and adopt great ideas from the masters, but then they create something completely different. CNBC created a series called Made in America profiling this type of winner. They are all founders of true American business successes. They interviewed Howard Schultz, the founder of Starbucks, and he completely changed the rules of a coffee shop. When coffee was sold at 50 cents a cup, he sold coffee for $2. He changed a culture and he provides health insurance to every employee and now Starbucks spends more on health insurance costs than coffee beans. WOW!

Rarely will I ever defend a giant over an independent. But I can’t believe that independent coffee shops complain when Starbucks come to town, as if to say the “giant killer” is here to squash the small independent. For crying out loud, Starbucks created the category but the independent just copied the innovations.

Innovate, innovate, innovate. And you will win the awards. (But don’t forget all of the other things that you’ll have to do to get you to that level.) Dare to be different. Make your exciting difference your exciting difference.

The Road To Hell Is Paved With Wonderful Intentions

It’s 6-6-06 so to get into that theme, let me share a retail hell story.
A couple of weeks ago I was working with a downtown card and gift shop and observed a simple transaction that perhaps we all can learn from. A man, who was apparently a regular customer, walked into the store and was warmly greeted. He returned the greeting with a fun, equally friendly reply. He said that he had forgotten to pick up a gift for his assistant’s birthday and needed a card and a small gift in a hurry. The shop owner brought the customer to the section of cards and I heard the man quickly say, “That’s good” after an apparent suggestion by the owner. The owner took the card and placed it on the counter as she enthusiastically recommended a small ceramic bank with a clever saying painted on it-- something about putting money in when the assistant is right. The customer with a surprised shout said, “THAT’S PERFECT! Wrap it up”. Then he said, “I love shopping here. You always have exactly what I want.”

So far this is the ideal retail exchange. Warm greeting, suggestion, suggestion, sale. What could possibly go wrong that would prevent that customer from returning? Maybe he tried to pay with a credit card that was bad. Maybe he wanted to pay later or maybe someone insulted the customer. No, it was nothing like that. It was the good intention that was the Road to Hell.

The man was at the counter, someone was quickly processing his credit card, and the owner was wrapping the gift, when the shop owner asked him if he has his loyalty discount card with him. It is a paper card that gets punched so when someone buys 10 cards the next one is free. The customer said that he didn’t have it with him and probably lost it, but then went on to say not top worry about it. He obviously could have cared less about a free greeting card. BUT, the owner insisted and confidently told tells him not to worry because she had her records. She then pulled out a 3x5 metal file box to look for his card. She couldn’t find it right away because it was filed incorrectly. Understand at this point that the customer has the gift and card in his hand and was ready to leave, but the owner realized that he was previously in and apparently didn’t get credit for the last card he had purchased. Again, the customer reassured the owner that it was OK. However, the owner insisted to right the wrong by giving him credit for a card that wasn’t recorded.

Now the man was fidgeting and just wanted to leave but he was trying so hard to be polite about it when the owner asked the customer the deal breaker, “Didn’t you buy 2 cards that day?” The customer said he really couldn’t remember but needed to get back to work, as he rushed to the door and said just let me know when you figure it out. As he had his hand on the door, the owner said, “Give me your phone number so that I can call you when I sort it all out”. The customer rolled his eyes and said, “I’ll be back” and left.

The owner came back to me and said, “Do you see how we care about our customers and the type of service we provide?” It hurt to burst her bubble that I doubted seriously if that customer would ever return. She was shocked until I explained that a free greeting card was NOT the reason he shopped in her store. He shopped there because of the convenience of the store, the right merchandise, the friendly helpful service, and he didn’t give a damn about the discount card and had even said it a couple of times. She disagreed fervently until I asked if there were many other people who had lost their loyalty cards. She said, “Over half lose them and they all say they don’t care, but I know better.” The shop owner personally loved those cards (she admitted later she loved coupons as well) and tried to make everyone love them but her downtown location meant her store had to be quick and convenient first.

Are you letting your customers have it their way or your way? When we try to motivate our customers, are we individualizing our efforts to give them what they want, when they want it, and are we also considering how much they want to spend? Not everyone is a price shopper, not everyone is a coupon customer, and not everyone has extra time to kill in a store. The Road to Hell is paved with very good intentions and this was one of them. On the way to make a customer for life we can kill a customer by saying the wrong things, at the wrong time, with the wrong promotion. Give the customer what they want, not what we want. Have a great day!