January.

For retailers, it’s cold not just outside, but indoors when it comes to moving the stock off the shelves. After the Christmas-buying sprees, most shoppers are back at home cooling their heels while retailers try to entice them back out to buy. The one stand-by many local store owners turn to is holding big sales, and they’re finding that in a tough economy it’s necessary to offer deeper and deeper discounts to get folks back and willing to buy. It’s great to have warm bodies in your store again, but it’s not great if your sale ends up making you no profit due to all that deep discounting.

So what’s the method of success that allows you to get the customers back and still make a profit? Is there a way to get both?

There are several methods you can employ to attract business and still maintain a profit margin. See which one of these (or more than one) will work best in your restaurant, retail store, or service-based business and give it a go.

Know Your Bottom Line, and Sell Just Above

This is the method to use with that inventory that needs to move out the door, not with that great new batch of products that just came in for Spring. Calculate your bottom dollar on these items: how low can you go and still make something, even if it’s a small something? Then make your strategy to sell many of these items, each bringing in that small amount of profit, and you’ll end up with a good amount of profit when all is said and done. Plus you’ll have cleared your store of excess, aging inventory.

Create a Loss-Leader

Grocery stores use the loss-leader method just about every week; their circulars advertise a deal that’s “too good to pass up” for their shoppers. In many cases, the grocery stores are taking a loss on this item, but they know that just getting the customers in the store is worth that small loss. How many times have you gone to the grocery store and bought just one item? Most of us don’t shop for groceries that way, and why not? Because in the process of locating and purchasing the loss-leader item, we’re unable to ignore the displays of other great merchandise – some also discounted, some not – that we have to walk past and around to find our goal. Use the same strategy in your store; advertise a huge discount on a popular item, set up a great display for it, and put it smack in the middle of many other great displays with enticing offers of their own.

Offer Package Deals

Another angle on the loss-leader strategy is to offer package deals and discounts; this method allows you to package your items of choice together, being sure that one of them is a cheaper item for you to purchase, which gives you greater wiggle room for a discount. You can offer a greater discount on a combined package, knowing that your combined investment in all the package items is still well below the discounted package price. You might even use a “buy one of these, get one of these other things” free method to sell a costlier item without a discount while taking the “loss” on your cheaper, freebie item. It’s the same method beauty product companies’ use when they offer a “special gift” with a purchase.

Add Value that Doesn’t Cost You Cash

What can you offer your customers that doesn’t come with any cash cost to you? Look beyond the basic inventory, and think about subscriptions, memberships, special discount or dining clubs, consultations, or other perks that offer a huge incentive for customers thinking about a purchase. The value is still there for the customer, who would otherwise have to pay to get the subscription or membership or consultation; but the value-added item isn’t costing you cash that you can’t afford to lose. Use these value-added items to upsell; offer them as freebies or part of a package, which allows you to give your customers an increased value for the same cost without decreasing your profit margin.

What method sounds best for your business?

Image by Alan Cleaver2000.

On Thursday, Facebook announced major changes to the platform that we all know – and hardly love. Through the wonders of modern technology (thank you, C Spire), I watched the entire presentation through streaming video, from my car, while Andy drove. An hour or so later, my summary and comments went to the media in the following statement. To begin what will certainly be a lengthy discussion on this blog of the money-making possibilities for a variety of businesses with the new Facebook platform, I wanted to share this release with you.

Chapman Comments on Facebook Overhaul

September 22, 2011 – Today, changes were announced in the last few hours by Facebook CEO Mark Zuckerburg. Below is a summary and extemporaneous comments from The Gibbes Company’s Director of New Media Marianna Chapman.

Today, Facebook announced major changes that in the words of their CEO Mark Zuckerburg will “reinvent industries.”
Among those that will be transformed by today’s announcement are music, video, media, and businesses selling lifestyle brands, products or experiences… that’s a pretty broad range of reinvention!

Facebook’s announcement today centered around two major changes and a third change that I believe is the most transformational of all for business. Today’s announcement will forever change the way that life is shared and how content spreads virally throughout the social web.

Most importantly for business, I believe, is the introduction of “verbs” to the open graph. Last year, Facebook introduced nouns to the open graph, allowing users to “like” a variety of people, places, things, experiences, etc. Many businesses have experienced the benefit of the “like” button as it has driven personal preferences for brands, products and experiences virally over the past year.

Now, verbs are added. Developers will be able to add any verb they wish to the open graph and insert those reactions into the open graph in a variety of ways. For example, the possibilities include the addition of a “want,” “ate,” “cooked,” “read,” “listened” or “watched” buttons that operate similarly to the current “like” button. For business purposes, this allows marketers to personalize more specifically how users engage with products, brands and experiences in a way that boosts social sharing – and thus the exponential power of their marketing machine when used strategically.

Beyond this development, two major interface changes were announced.

Beginning immediately for developers in beta format, and then rolling out to all users over the next few weeks, Facebook will introduce the Facebook Timeline. The Facebook Timeline will entirely replace the current personal Profile for Facebook users. Facebook calls this Profile replacement a way to present the “story of your life.” This new format looks to me a lot like a “Tumblr style” blog presentation of all the various types of experiences in your life including photos, videos, wall posts and comments, travel, and interactions with all of life among other things.

Next, canvas apps will allow for “frictionless experiences” with apps, and therefore products, brands and experiences, on Facebook. Think of it like the demise of the pop-up box and the birth of more real-time web-based social sharing… That’s a mouthful! But the interface looks fantastic, and the development options for business are mind-boggling. Facebook will immediately introduce music, video and news apps with the launch of Timeline.

These Facebook developments present a fundamental leap forward in the power of Facebook for viral marketing as well as the overall power of social sharing on the greater web.

Want to talk about this more?

Contact me directly at mchapman at gibbes dot net, or let’s chat in the comments. I welcome your thoughts and this discussion is just getting started to be sure!

It’s time to consider using video to market your business. It doesn’t matter what size business you have, video is now an affordable and most importantly, effective, tool that can improve sales significantly. The following statistics about marketing with online video using video sharing sites should make you think twice about ignoring this powerful marketing tool:

“Video in email marketing increases click-through rates by 96%.” – Implix 2010 Email Marketing Trends Survey

“Press releases that include video components receive 500% increase in views.” – Eloqua, April 2010

I found these stats over on Pixability’s web site that say that sites with video receive…

• 30% more clicks
• 18% more calls
• 30% more store visits
• 24% more purchases than those without video

In July 2011, a Pew Research Center study said that 71% of adults watch online video like YouTube or Vimeo videos. According to this study, rural and minority Internet users are no less likely to watch online video than suburban or city dwellers. Men and women are also equally likely to use video-sharing sites. Also of interest, parents use video-sharing sites more than non-parents. Some 81% of parents in the Pew study reported using video-sharing sites compared to 61% of the non-parents.

Mobile use is on the rise, too… It seems that 34% of cell phone users in the United States have shot video with their phone, 26% have watched video on their phone and 22% have posted videos or photos online… all from their mobile phone.

YouTube viewership has grown from 8 million views a day at the end of 2005 to 3 billion views a day in 2011, according to YouTube.

All of this on the heels of Forrester Research’s stunning announcement in 2009 stating “You are 53x more likely to appear on Page 1 of Google’s search results if you have video on your web site.”

Now. That is shocking.

Why aren’t you using video in your marketing? What is holding you back? Ask your questions or share your roadblocks, and I’ll try to answer your questions in future posts on this blog.

Photo Credit: Mike Jennings

I subscribe to lots of online, big box and chain restaurant e-mail newsletters. Why? Because it helps me keep a pulse on the offers and strategies that you local folks are competing with, so I can help you stay on the cutting edge and out maneuver those slow turning big box battleships.

Today I want to use an example from a Boden e-mail newsletter – a company that I think does a very nice job with strategy, offer composition and color psychology in their e-mail marketing efforts.

Win from the Start

All those complicated matters aside, note this one liner found at the top of their e-mails:

Apply this Idea Today

You can do this, too. No matter what e-mail marketing software you use, there is a “click here to read this online” or some one liner similar to that as a default setting on your e-mail marketing software – and included in every e-mail you send – whether from Constant Contact, aWeber, MyEmma, Blue Sky Factory or the like…

Instead of the default message, try updating the message every time you send an e-mail to match the content of your message. Many smartphones don’t automatically load images on such e-mails, and many e-mails go to the smartphone first. Try structuring your next e-mail to include a beefier “can’t see this message?” one liner that includes the offer. I also like that the “click here to view online” element of this sentence is earlier in the sentence rather than later. And I also like that the one liner is short enough to just be literally ONE LINE in the visual display of the e-mail on my computer screen.

Keep it simple but make the offer and ask for the sale right away, and watch your click-thru rates and conversions climb.

Happy e-mailing!

Photo credits: Boden USA (http://www.bodenusa.com)

This is a post in the “How to Create a 2011 Local Business Marketing Plan”* series. Some of it will be shared here on [resultsrevolution.com]. The rest will be shared via my free newsletter. Get the newsletter to get the full planning series.

Don’t Put Yourself at a Disadvantage at the Start

Whether planning or executing a small business marketing plan, one of the biggest failures I see is in the area of branding. In particular, brands seem to disappear – or at best – are very weak. With that in mind, I want to encourage you that as you think towards 2011 that you renew your dedication to your small business brand (or establish one – if you’ve never cared about branding before).

Nuts & Bolts of a Small Business Brand

We’ve talked about branding basics before. You can read more about it here without me re-hashing the basic elements of visual logo, color scheme and domain name.

Behind every good brand are the “nuts and bolts” that hold it together. The breath that gives it life. And that’s what I want to focus on right now.

In my experience, there are two basic types of businesses: there are businesses that have to compete in a category (men’s clothing, ladies shoes, groceries, etc.) and those that created and own a category (like the lost and unclaimed baggage store in Alabama). The second category is pretty rare. But both categories need some branding “nuts and bolts” in order to survive because we ALL compete for the spending dollars and attention of consumers.

What will make your business stand out – no matter how “typical” it’s product – is the personality and culture of the business. Before you can promote a brand – you have to have a brand. And a brand is simply boiled down to be your reputation.

Your Brand is Your Reputation

That’s right, the logo, color scheme and domain name are just the elements that propel your brand into the marketplace. Your reputation IS your brand.

The Chick-fil-A Example

Chick-fil-A has the fun-loving personality of a bunch of cows campaigning that we all “Eat Mor Chikin.” Their antics and creativity are the “reputation” upon which the brand that sells an average chicken sandwich has soared to amazing heights of success and profitability.

The Broad Street Baking Company Example

On a local level, our client, Broad Street Baking Company, has embraced a colorful (literally) bunch of employees from all walks of life to meet, great and sell with the same enthusiasm that embodies their owners Jeff Good (a former technology sales guy  whose passion for community and people is contagious) and Chef Dan Blumenthal (a descendant of a baking family from New Jersey who loves driving very fast cars and can create amazing menu items in every possible menu category). They live the “Have You Hugged Your Baker Today?” mentality that fronts their famous t-shirts, and they also rock and roll through the day just like their new “Grateful Bread” t-shirts attest. They keep life jazzy and full of fresh colorful flavor – on and off the plate – a colossally successful recipe in a town full of great sandwiches.

The Peru Paper Company Example

On the flip side, another client, Peru Paper Company, is filled with heart-warming, genuine goodness that spills over into every life it touches – whether employees or customers. Her brand is the story of changing lives by giving previously impoverished workers a way to provide for their families safely and with dignity – and by spreading a culture of helping others in everything they do stateside and abroad. Their story is their brand – a story that is constantly unfolding because it is the “breath” of who they are. A different kind of brand – but one filled with the brand “nuts and bolts” that lead to success. (Want to read their story about “Cards That Care,” check out this online article out today.)

What is Your Brand?

As you set your sights on 2011, make a list of the elements of your own personality and that of your business that you wish to embody more fully in the new year. Branding needs a CONSISTENT presence that you and your employees can live. It must be your business personality naturally – and fit your business culture naturally. As you cannot force yourself to be someone you are not, you cannot force your business to be something it is not. Find the “nuts and bolts” of your business, then explore ways to bring them more into focus in 2011. Look at the case studies above – and others that you see around that are making their mark – in a highly competitive market. I guarantee it’s because they are far from vanilla – they have a brand that is memorable and consistent. They know who they are – and they’re BEING THEIR BRAND.

Here are just a few more small business branding ideas for you as you embark on this part of your 2011 Marketing Planning journey.

How will you BE YOUR BRAND in 2011?

Twitter can be a powerful marketing and outreach tool for small, brick-and-mortar business. You can reach out to and engage with your local market, and you can also reach further than your local boundaries. But you’ve got to start with a few basics if you want Twitter to promote your business rather than just take up your time! Most Twitter “failure” comes from just not knowing a few basics, and then getting lost in the question of “Okay, now what?”

There are three basic rules of Twitter business use; and these rules define the purpose of your tweeting. Every tweet you send out should accomplish one of these three purposes: to entertain, to educate, or to engage.

Rule 1: Tweet to Entertain

You already know your potential Twitter audience has lots of choices, so don’t bore them with mundane items like “Just drank my 3rd cup of coffee” or “really bored today.” They’re looking for something new, interesting, something they don’t already know or can’t easily find out for themselves.
For example, if you’re a chef or restaurant owner, you can provide endless entertainment by giving people an “insider view” of the kitchen. (Here are more restaurant marketing ideas.) Think about all the reality TV shows, cook-off shows, and celebrity chefs out there; people are nuts about knowing what really happens inside a commercial kitchen. Remember, this stuff may seem mundane to you because you live it every day, but for the average person, this is intriguing, different, and thus, entertaining.

Examples:
“Just cracked 142 eggs for the batter for our fried fish.”
“I’m slicing up the fresh tuna just flown in… will be the chef’s special tonight!”
“Making up 3 gallons of hot fudge sauce for our dessert special.”
“Lettuce just arrived from the produce market; half of it is bad, going to have to redo the night’s menu.”

Rule 2: Tweet to Educate

Think about what the average guy doesn’t know about your business, product, service, or specialty that you do know. Tweet about what you have expertise in; remember, it may be day-to-day stuff for you, but it’s new, interesting, informative, and educational for folks who don’t work and live this subject daily. Get into the educational aspect of your business; maybe you’re a retail shop owner (more retail ideas here), a restaurant owner, or a service-based business. You might not think of yourself as an educator (education-based marketing is a winning strategy), but take time to think about how you would train a new employee, or explain a process to a new contractor. What do people find fascinating about your business? What expertise do you have? Break that knowledge down into bite-sized pieces, and you’ve got educational Twitter material just waiting to be shared.

Examples:
“Just got in a new shipment of linen skirts. Linen is one of the most durable materials out there! Always wash it in cold water for longest life.”
“Picked up some great heirloom tomatoes from the local farmer’s market today. Check the market out – they’re open every Saturday.”
“Best time of year to put a new coat of paint on your home’s exterior is fall. Anybody know why?”

Rule 3: Tweet to Engage

One of the biggest things people fail to use on Twitter is the question mark. Ask questions; lots of questions. And when you see questions related to your topic, answer them! Ask for input, ask for opinions, ask for help. And be ready to offer your professional input, expert opinion, and help whenever you can via Twitter interaction. Answering a question or responding to a direct message on Twitter only takes a few seconds, but it can gain you a fan who will share that information with all their friends… and so on it goes that leads to sales.

Examples:
“Which new dessert should we add? Vanilla bean cheesecake or apple crumble with caramel sauce?”
“Having an open house at the store for Halloween; Anybody know a great bluegrass band for hire?”
“What’s your favorite fall clothing item? Boots, sweaters, scarf, something else?”

Don’t waste other people’s time; stick with tweets that entertain or educate or engage (or all three, even better) and you’ll be using Twitter successfully to build, promote, and expand your local business.

Photo By: Spencer E. Holtaway

‘Tis the season for shopping. For small business owners everywhere, this is usually one of the most profitable times of the year. And even in tough economic times, people will still be out buying presents, putting up decorations, and finding ways to celebrate. Budgets may be a little tighter than we want them to be, but we’re still going to enjoy the holidays and spread the cheer.

For locally owned businesses, the holiday season is the perfect time to build relationships with new customers, because the simple increase in shopping activity means you’re more likely to be getting new faces on your retail showroom or in your restaurant.

The important question you need to be asking is how do you maintain and continue that relationship once the holiday shopping season has ended?

Making a great first impression is the first step; a cheerful greeting, a nicely decorated space, helpful and friendly staff, great products and great service all combine to make an unforgettable first impression.

Then what?

Consider, in the products and services you offer, how you can convert a one-time sale into an ongoing, subscription-based sale. Subscription-based sales work well for both customer and business. The business is assured of ongoing sales, and has an automatic way to continue building the relationship with the customer. And the customer gets to pay for the subscription on a monthly basis (or other ongoing, time or delivery-based basis), which makes the purchase easier on the budget. Think of all those “Coffee of the Month” or “Fruit of the Month” clubs.

If you’re a restauranteur, do you sell packaged food products from your restaurant? Why not create a monthly food gift from your offerings? It could be the “Gourmet Food of the Month” club, and it will enable you to keep selling those fabulous packaged foods well past the holiday season. For retail sales, think about your specialty product and how that could become an ongoing, subscription-based offer. It could be seasonal or simply spin off from your most popular items: candle of the month, fragrance of the month, book of the month, movie of the month, and so on.

Be sure to offer various buy-ins and price points so that the subscriptions can appeal to all sorts of shoppers, no matter the budget. You can offer three-month, six-month, and twelve-month subscriptions. You can give customers the option of paying for it all in one lump sum (you might make it discounted that way) or paying with an “as-you-go” plan.

Subscription-based sales not only ensure you’ll have some cash flow in those slower winter months; they also give you a way to keep communicating with those new buyers. With every month’s item, your customers get a reason to remember you. They’re continuing to invest in your product or service, and you’ve got a great way to get feedback from your customers.

What products or services can you turn into subscription-based services?

Image by mmlolek.