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What changes have you made?
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Question of the month: This month’s e-mailed question comes from a drycleaning company that has been in business
about 10 years. “For the first seven or eight years my business kept growing. Over the last two
or three years sales have flattened and now are in a decline. What can I do to
turn things around?”
He never used his computer system for marketing to his new or existing
clientele. Thank You cards or Miss You cards were never mailed. Packaging was
minimal. Tissue paper or garment covers were never used to dress the garments.
There was no branding on anything. Plain plastic and generic materials cost
less, and what the heck, they saved money. His plant was the only game in town.
The customers did not know any better and, if they did, the convenience of his
location won the day. Free pick-up and delivery and a web site were unheard of.
This story is very familiar. It is about a businessperson who is so used to
success that he does not have to do anything. The dollars just roll in, and the
company keeps growing.
What changed was another shopping center was built two years ago. A new
competitor opened. House building in the area stopped three years ago. In
addition, in case you have not heard, the economy is slowing.
The problem with this owner is he is spoiled. He did nothing to improve his
product or change the way he did business. His new competitor was taking
customers away.
My advice to this businessperson was as follows. In the ten years he owned the
plant, he has never painted the call office. I suggested that he not only paint
the call office, he should change the counters and décor. It was time to give the place a fresh, new look. I further suggested he
redesign the company logo. His old one was dated and tired.
Next, his marketing tactics needed changing. Since they were non-existent,
anything I told him would be an improvement over zero.
Next to his brick and mortar location, his computer database is the most
valuable asset he owns. He is now going to send Thank You cards every week, and
Miss You cards the first of every month. A couple of website designers have
been contacted to provide quotes for design and search engine optimization. I
could not believe I got this man thinking about CRM (customer relationship
management). Thank goodness, he is computer literate.
His new logo and company name will be printed on everything. Branding is going
to become his new middle name. A dress code will be instituted. No more
T-shirts, blue jeans, short shorts, or nose rings at the counter. A coffee pot
and a cookie plate will be put into the counter sales area.
A secret shopper program will be started, and the first visit will be to the new
competitor to find out what he is doing to capture customers. I told him that
once he finds out, he has to play one up, and be certain to do everything
better.
He has to expand his hours of operation to match his new competition and
consider longer hours to do more than the new competitor down the block.
Last but not least, a van will be purchased or leased. Since the lease on his
car was about to end, this was easy. Free pick-up and delivery are going to be
offered.
I gave this man a timeline and told him he had six months to complete his
mission. Tune in six months from now and I will let you know what is happening
to this company.
Do you have questions regarding the operation of your business? If you do, you
can email them to me.
My email address is consultme@msn.com . In the event the question is of general
interest, I will put it into my next column and respond with an answer.
Do you attend seminars?
Many businesspersons attend seminars but are not prepared to gather the
information that is provided. The company that provides the seminar spends a
great deal of time and money. Their goal is to educate those who elect to
attend. What disturbs me when I attend seminars are the people who sit there
and do nothing but listen and shake their head on occasion when a point of
interest is presented.
Let us maximize your time when you attend a seminar. Let us prepare for the
event that you have laid out your hard-earned money for, so you can improve
yourself and or your business.
First, you need to make a list of specific things you want to learn. Read all
the handouts and information you can about the subject matter that is to be
provided. If you have employees that need some information and they are not
attending, write their questions and take them with you.
Take notes on the topics of interest that you and your employees are concerned
about the most. Take two pens with you just in case one stops working. Take a
writing pad, large yellow, legal size is best. Make sure your notes are concise
and to the point. Do not attempt to write everything said verbatim. Unless you
can take shorthand, you will miss a great deal of information.
Ask questions. If you do not understand the information that is provided, do not
hesitate to ask questions. You paid a lot of money to attend the seminar and
you should get every bit of information you can. You can ask questions either
during the question and answer period or during scheduled breaks. Do not be
afraid to open your mouth. You are there to learn and the best way to benefit
from the seminar is to go back to your business with your questions answered.
During breaks, make friends with other attendees, assuming you are not asking
the facilitator questions. You might find that you have mutual interests and
mutual problems.
Finally, when you return to your business, meet with your employees, and share
the knowledge that you have gained. Consider creating a written report and
distributing it when you meet. By doing a written report, you will give
yourself the opportunity to review the information you gathered and think how
you are going to apply it to your company. When you meet with your employees,
get their feedback. Nothing beats brainstorming when it comes to working as a
team.
This month I have two presidential quotes for you. Both are important because of
next month’s election.
The first comes from Dwight D. Eisenhower: “There is nothing wrong with America that the faith, love of freedom,
intelligence and energy of her citizens cannot cure.”
The second comes from John F. Kennedy: “And so my fellow Americans, ask not what your country can do for you; ask what
you can do for your country.”
Do not forget to vote, no matter who you vote for!
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Harvey Gershenson operates Sterling Drycleaning Consulting and is a former owner
of Sterling Dry Cleaners. A second-generation drycleaner, he has been in the
industry since he was in high school. He has served as president of the
Cleaners and Dyers Guild of Los Angeles and has served on the boards of
directors of the Drycleaning and Laundry Institute and the California Cleaners
Association. He is also a guest lecturer for the California Department of
Corrections. He can be reached by e-mail at
consultme@msn.com or phone at (310) 261-2623. His web site is drycleanerconsulting.com.
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