Sales is more than just a numbers game...

Could LG Electronics MPH technology for DTV deal another blow to newspapers?

I recently came across the local demonstration for LG’s MPH (Mobile Pedestrian Handheld) technology on a cell phone; the technology can deliver local digital TV (DTV) broadcasts while connected to your mobile phone, in-car display, personal handheld TV, or PC/laptop (via a USB dongle). At first glance, I said, “Oh, no. Not another little screen (device) to grab my attention.”

Like we don’t have enough of them already. I have one in the form of a portable GPS (I am now on my fourth brand and style across as many vehicles), one serving as a personal DVD player, a dashboard monitor in the car, and I guess you could consider my cell phone yet another. You could stretch this to include my laptop, too. And, I am considering moving to the new mini-notebook in an effort to reduce the size and weight of what I carry onboard an airplane. But, in the case of LG Electronics, it’s the technology (MPH in-band mobile DTV system), not the device. So, at some point, I may be able to use MPH across all of them.

With all these devices to distract us, I often wonder what’s happening to productivity. Where companies are concerned about online video on desktops via the Internet, they’ll now be faced with employees watching TV from the comfort of their handheld, or other device. And, if you think “smoke breaks” cost employers lost time, this could certainly burn a hole in the workday.

Once I got beyond the point of do we really need another device, I began to think of who would be impacted by this from a revenue perspective. One of our local television stations, WRAL, the local CBS affiliate, recently demonstrated MPH connected to a cell phone. As part of their cbc New Media Group, and News Over Wireless (NOW) division, the business opportunity comes down to broadcasting’s primary target; more “eyeballs”. This same group of people is aggressively delivering software applications to deliver “news over wireless” to your cell phone in your local television market. It’s all about advertising and another platform to deliver it.

As local television broadcasters thrive on delivering local news, what about newspapers? In Raleigh there is but one, The News & Observer (part of The McClatchy Company) – oh, how I miss the San Francisco/Bay Area newspapers. And, if it were not for my subscription to The Wall Street Journal, delivered at the same time, it would take me less than 15 minutes to read the newspaper in the morning. National news? Already read it online. Local news? Same thing; I picked it up from the local television Web site before the paper arrived. Favorite local journalists and reporters? Yep; I have a couple, and that’s what takes the 15 minutes; if it weren’t for them, I could do without the daily edition altogether. And, I certainly don’t need it for the ad sections; I can access all those flyers online, too.

What about newspapers delivering more local, community content? Good point; The News & Observer makes an effort to do just that. But, here again, television is entering into that space. WNCN, our local NBC affiliate, delivers localized news and content under the umbrella of MyNC.com. They begin at the County level, and get Citizen Journalism to deliver news at the street level. But, I think there will be some competition for them, too. As EveryBlock (“A news feed for your block”) grows their list of cities – the closest to me is Charlotte – they will encroach on all the traditional local content providers. I have kept in touch with my old neighborhood in Chicago through EveryBlock; it’s more curiosity than need, but demonstrates the reach.

So, I am left wondering; where is the future for newspapers and how will they survive? In our case, who reads the stock tables in the morning (IMHO - wasted space; serious investors are online)? Classifieds? Sorry, there is craigslist and others to choose from that are much better. A sense of community? No, I don't think so. That seems to be falling away to social networks – not to mention the business hit from social media marketing. More in-depth journalism? Well, the likes of Sony’s eReader and Amazon’s Kindle have a good chance to disrupt that notion (in the form of a delivery platform of newsprint vs. digital).

What do you think? Is LG’s MPH just another gadget? Are you a candidate for mobile, handheld TV? What will be the impact to business; not just in lost revenue across media competition, but in terms of employee productivity, too. Is this another “canary in the coal mine” that gives a warning to (the demise of) newspapers, as we know them today?

Innovation – Swisher ATV QuickSwitch™ System expands ATV function and usefulness

With gas prices at an all-time high, recreational vehicles will probably see a continued decline in use. ATVs may begin collecting dust by sitting idle in the garage or storage shed waiting for hunting season. But, what if you could put more use into this vehicle year-round and make it a bigger helper around the homestead?

In talking to one of our readers, he told me the folks at Swisher have done just that. Known for their lawn and garden power equipment, they have a full product line of accessories that operate as the Swisher ATV QuickSwitch™ System. The universal-fit mounting system is based on a frame under the ATV; the operator can choose from eight attachment options that are mounted to the front or rear of the vehicle. 

For those of us who have spent any time working on a farm – I worked summers in Wisconsin on a dairy farm – you can appreciate the advantage of the attachment changeover is accomplished by pulling on a single pin; no tools are required. And, the attachments can be raised and lowered with a front or rear-mounted winch by simply attaching a single cable. Check out this link to a video by ATV Magazine showing the ATV QuickSwitch™ System in action.

Front Attachments

• Dump Bucket – heavy-duty 14-gauge steel construction with scoring teeth for penetration of compacted soil
• Plow Blade – robust 50-inch blade with built-in downward pressure delivers snow clearing and terrain leveling action
• Fork Lift – 1 ¾-inch square tube forks are ideal for moving materials on the farm, ranch or construction site
• Front-Mount Mower – 50-inch, side-discharge cutting deck with three blades for excellent cut quality

Rear Attachments

• Box Scraper – 10-gauge steel with 6 individual, replaceable, scarifier teeth that etch and break up surfaces
• Box Scraper without Scarifier Teeth – heavy construction ideal for grading, leveling and back filling large areas
• Disc Harrow – Eight 13-inch diameter serrated discs perfect for gardens, grounds maintenance and soil tillage
• Grader Blade – great for scraping and leveling yards, blade can be angled into 5 positions for maneuverability

p.s. ATV Magazine, the industry’s largest ATV consumer publication, named Swisher’s QuickSwitch System to their Product Innovation Award winners.

As Starbucks retreats, it’s full speed ahead for Port City Java

As Starbucks begins closing stores, and fans grumble about their new Pike Place Roast, you may be left wondering if they have lost touch with their loyal customers. Messing with someone’s daily ritual could be hazardous to your business health. One company in the “cup of java” business that understands this all too well is Port City Java.

In talking to Don Reynolds, Chief Operating Officer of Port City Java, the gourmet (or specialty) coffee business breaks down into three primary segments: 1) The volume end of better coffee by the likes of McDonald’s, and Dunkin Donuts, 2) The global specialty coffee segment owned by Starbucks, alone, and 3) The regional specialty coffee segment known as “coffeehouses, cafes, and roasters” like Port City Java, and Peet’s Coffee & Tea.

Starbucks, amongst the more publicized anxiety surrounding the store closings, has been quick to say that the Pike Place Roast has helped increase sales in the drip coffee segment of their business. But, one wonders if the success in one area will be to the detriment of customer loyalty and send Starbucks fans looking for new destinations for their daily grind.

In the case of Port City Java – and others like them – they are in a market segment all their own. And, where Starbucks is in retreat, Port City Java continues to grow and expand – they are even going International with locations in Costa Rica, Saudi Arabia, a new location in Jordan, and possibly Kuwait in the future.

What accounts for Port City’s success? What I found in talking to Don was their success is built on an emphasis to see the patrons as “guests”. When asked about what has fueled their growth, he said, "operations and execution at the unit level is everything; the guests are paying 100% of the bills." As he speaks, you can feel his commitment to a better customer experience.

But, it wasn’t always that way. I asked Don about the proverbial kick in the gut that most growing businesses feel at one time or another. It’s that moment when you realize what you are doing isn’t working and that you have to make a change. He reflected on their franchise operations in 2005 and how they learned the lesson that franchisee selection is very important to long-term success. Don stressed the idea that as a business, you must “differentiate your concept and organization; find YOUR niche and execute better than anyone in the world to create YOUR concept and value for your guest." Today, they manage a very successful franchise operation, which helps fuel their expansion.

Recognizing that coffee is often a daily ritual for an individual, Port City Java emphasizes the hospitality aspect to their business. They want to provide exceptional products served in a special way. They spent 18 months developing their breakfast sandwiches, which included a significant investment in equipment – they use a turbo oven that allows them to bake their own products inside each store.

To continue their growth, the spotlight will remain on the customer experience. Beyond the “Give Us A Holla” campaign on the Web site – for customer suggestions, experiences, or questions – managers and staff are in constant chatter with everyday patrons and visitors.

Since coffee falls into the discretionary spending category, in today’s Economy the amount to be spent is fixed. The variable is how it can be spent. The decision of where to spend, and what to spend it on, will ultimately rest with the customer experience. It sounds like Port City Java understands this and knows how to navigate market swings; there is a business lesson in this for all of us.

Podcast: When searching for new contacts, do you struggle with where to start?

When it comes to searching for new contacts to call on, do you struggle with knowing where to start? Do you find yourself asking the question, “Who are the people I should be calling on?” At what level should I begin? Do I choose a department, a person’s organizational title, or just call the receptionist and ask him or her where to begin? In this episode of the One Goal - Revenue Generation ® series, Peter Kusterer of NvestNtech offers you a roadmap of where to begin when calling on customers for the first time, or in pursuit of new contacts within an existing account. Download this episode - "When searching for new contacts, do you struggle with where to start?"

Click on this link for the Podcast directory that includes the One Goal - Revenue Generation ® series, as well as additional Podcast episodes and related topics. Our podcasts are featured on iTunes, Odeo, and Podcast Alley.

Entrepreneurs’ Challenge: PhRMA Code prohibits promotional item distribution

If you are in the promotional items business, i.e., those who produce and sell items that are imprinted with company logos or slogans, what would you perceive to be the market impact when an industry trade group’s decision may prohibit your sale as part of a revised code of marketing ethics?

Recently (July 10, 2008), the Pharmaceutical Research and Manufacturers of America (PhRMA) announced a newly revised PhRMA Code: “Revised Marketing Code Reinforces Commitment To Responsible Interactions With Healthcare Professionals”. In part, it states:

“Prohibits distribution of non-educational items (such as pens, mugs and other “reminder” objects typically adorned with a company or product logo) to healthcare providers and their staff.”

This decision has a cascading or trickle-down effect on the promotional items companies; their customers are being asked to voluntarily cease the practice of distributing these items in a promotional manner, or reinforcement of their brand “…to healthcare providers and their staff”. I would think this could have a significant impact on the promotional item business, and the industry-at-large. But, maybe not; PhRMA Code compliance is noted as voluntary, and it seems carefully worded to only include “healthcare providers and their staff“.

That’s the Entrepreneurs’ Challenge to you. How will you react to a development like this in your industry? What adjustments will you make in your business? Since compliance and adoption is voluntary, how much of an impact will this have on the business, or the industry-at-large? Will distribution continue under the guise of another premise or venue?

p.s. If you know of examples like this in other industries and markets, please offer them up as well.

Innovation – Wagner’s DeckMate with Deckmaster™ patented brush and pad system

During one of our Small Group meetings – as featured in the Small Group Wisdom series here in this blog – one of our members was talking about better ways to stain her deck. She was looking for a tool or innovation that would solve what she believed was a common problem; there must be an easier way of getting stain in the crevice or gap between the boards.

While looking for some new finishing ideas and tools for the infamous paint job – featured here in the blog and talking about the BEHR video on faux finishing - I caught a glimpse of Wagner’s DeckMate finishing tool with the Deckmaster™ patented brush and pad system.

What really got my attention was the small bristle brush that hung down from the pad like a daggerboard on a boat. There was an overlapping pad area on either side of the brush, so you can neatly overlap the adjacent boards and hit the cracks between the boards in one pass. It includes a 1/2 gallon tank for supplying stain or sealer with a flow control valve for proper application and coverage (suggested to be 175-250 sq. ft. per fill).

As the Summer wears on and the sun takes it toll on your deck, this may be the perfect solution for the refinishing job next Spring, or sooner. The DeckMate has a 53-inch telescoping pole to ease the strain on your back, too. Here are the specs and a handy purchase link for the DeckMate:

SPECIFICATIONS:

• Internal gravity feed
• 1/2 gallon tank
• 4-1/2" sturdy aluminum pole
• Variable flow control
• Wide mouth fluid cap
• Deckmaster pad system with brush for getting in to the cracks between the boards
• Deck groove guide
• Covers 175-250 sq. ft. per fill depending on wood texture
• Latex and oil-based stain/sealer compatible

Decisions with limited options still need deliberation

It was a dark and stormy night with rain pounding on the windshield. Since it was our wedding anniversary, we weren’t going to let this storm cancel our dinner plans. Looking forward to the evening out, the causal conversation was soon broken by a loud noise, and an abrupt, BAM!

You just know hitting a pothole at most any speed is not good news; had I seen it coming, I certainly would have steered clear of it. The tire alert did not go off, and I couldn’t feel any change in the car’s handling characteristics. As soon as I could, I pulled to the side of the road and took a look around. Everything seemed to be in good shape. Since it’s difficult to get under my car, I would have to wait until Monday to have the mechanic put it on the rack.

Looking things over, we didn’t see any obvious damage. But, some time later it surfaced in the form of a small bulge in the tire – which only showed up on the rack - and a now, more obvious bent rim. It’s the hidden and surprise problems that come back to bite you; I would be faced with a decision that would have limited options.

Since this pony has only four shoes – there is no spare at all in this car – I was forced to take some time to think it through. I saw three scenarios: 1) replace the rim with a new one, 2) replace it with a used one, or 3) see if it could be straightened. The tire would be a much easier outcome; it has road hazard insurance, so it would be replaced for a small fee. But, the rim decision needed to be made, first.

What to do about the rim? A new one would be very costly, need to be ordered, and would outshine the other three. A used rim would be half as much, look more like the other three, but have an uncertain past. Getting the rim straightened would carry the uncertainty of whether it could be done, and at what cost.

Normally I would consider this ‘easy’ on the scale of 1-10 for making decisions; in my mind, there were only three choices. Each carried a fairly obvious risk to reward ratio. But, what I found was that I put more thought and consideration into this than other similar situations. Why?

Where some may make a quick decision with such limited options, I chose the longer route. I found that other factors began to creep in; things like safety, performance, and durability. Calls, emails, and some more thought led me to deciding on straightening the rim at a recommended specialty shop.
 
So it is in business. We are often faced with what appears to be an easy decision with limited options. But, if we put a little more thought into it, would that still hold true? Acting too quickly brings about more mistakes and questionable decisions in business. When challenged, I find the response I get from others usually paints a picture of, “There were limited options, and all I had to do was just pick one.”

Has the speed of business and everyday lifestyles contributed to a false sense of urgency in decision-making? Is the ease of response through cell phones, email, and instant messaging a contributing factor? Do you give all decisions the same consideration, weighing (or seeking out) all the available facts?

The simple lesson for me in this event is not to rest with the notion that all is well after an experience that would normally dictate more attention. Just because I didn’t see any immediate damage, and the tire alert didn’t go off, didn’t mean that a problem wouldn’t surface later. And, when the problem does surface, take the approach to good decision-making by gathering all the facts surrounding each option, then reach out to others for their advice.

BEHR How-to paint video falls short of expectations during playback

The weekend brought about the larger painting projects. There are many brands and colors to choose from for interior painting, so once the color was selected the rest appeared to be smooth sailing from there. I must have wished success on our work too soon.

Once the painting project was completed, my wife suggested that adding a faux finish of some sort would add a special touch and appearance to the rooms. That brought on a whole new challenge of finishing choices like sponging, ragging, frottage and more.

Not having done this before, it was off to the Internet for some discovery and lessons. In the process, I found many useful utilities and tools on the Web sites of the paint manufacturers. But, wanting something more than a YouTube short video, I was attracted to the advertised BEHR videos on CD that were available at The Home Depot. As an aside, we chose another brand of paint for the base color.

Around $6.00 out-of-pocket, and I am headed for home with my new instructor. It’s a two (2) CD set with what appeared to be more than ample topics. I didn’t pay attention to the instructions on the back of the case (for playback) and put it in my home DVD player, fully expecting the TV screen to light up with a colorful menu and choices. What I got was an error message that the CD was not compatible with my DVD player. I should have looked at the system requirements, first; it’s computer playback, only.

I’m sure this works for many people; but, I found watching it on my laptop less than optimal for the intended purpose. I would have much preferred to see it play on a larger screen in the comfort of the den. Beyond the playback issue, the instruction was adequate. Here again, I had higher expectations. I didn’t find a significant difference in presentation on the BEHR CD than from some of the short clips I had viewed on YouTube.

After the finishing techniques, I had hoped to take advantage of the section on color selection. Truth be told, each time my wife asked me what I thought of the color choices she was showing, I would tense-up debating which answer to give her. In the CD, I was desperately seeking a mediator. I found that the individual manufacturer’s Web sites were more helpful than the video. So, again I was disappointed in the results.

I guess it boils down to the fact that I see this video from BEHR as an excellent marketing tool. But, when it moves to something I have to pay a nominal fee to watch – with so much being free today - then my expectation of quality and results rises significantly. I believe that accounts for my disappointment as much as the overall viewing experience. It was the letdown in shelling out the cash and feeling like I could have learned as much by simply spending more time on the Internet.

Of the two CD set, we watched four videos. That barely scratched the surface of what was shown in the menus. I am left wondering if they, and the rest of the consumer public, would have been served just as well, if not better, by making these free on their Web site.

In my mind, it would have the same marketing value-add, without the larger distribution costs to The Home Depot. Add the ease of updates and additional content delivered over the Web, and I see further gain for both BEHR and the consumer. BEHR does offer this over the Web with their video clips of BEHR Exterior Wood Care products. So is the driving force here to bring customers into The Home Depot?

What do you think? Does an experience like this change your purchase or brand preference in a manufacturer’s goods or services? What are your expectations for availability and viewing surrounding How-to videos? Should they be free on the Web, or purchased in a pre-packaged multi-CD set? As a manufacturer, how do you know where to draw the line between free and pay-to-view marketing materials?

Letter Writing – A sentence, a paragraph, and no more than a page

With all the digital communication tools at one’s fingertips these days, it would seem that letter writing is a lost art. The reality is that good letter writing skills are still important in business communications.

It’s not unusual for me to resort to sending a letter by regular postal mail. I even get some added satisfaction as I consider more carefully my choice of wording and structure than if I were sending an email. Signing the letter with pen in hand adds another touch to the experience.

Early in my business career – in those days, electric typewriters were considered high-tech – it was a time-consuming process to compose a quality letter. Fortunately I had some good coaching along the way. Here are two suggestions I still follow to this day.

The first is, “Say it in a sentence, say it in a paragraph, and say it in a page.” The idea was to keep each line short, and to the point. Sentences should be brief, and paragraphs should consist of as few sentences as possible to make the point. Lastly, the letter should never be more than a page. This guideline has proven useful beyond just letter writing. A good Press Release can be composed in 400 words, or less. That’s usually less than a page with a reasonable font size.

While I am on the topic of page size, one of my current ‘hot buttons’ is the ease of variable font sizes in a letter. 10 pt. font is a good all-around size for a letter; using something less to squeeze more words per page is self-defeating if the reader has to struggle just to read it. Jumping up to 12 pt. font in an effort to fill a page, and make it look like more content, is not much better. Stick with easier read font styles, too; I find Arial my font of choice.

The other good advice I learned early on was to outline the key points of the message before composition. Although computers make this a breeze, it’s sometimes just as easy to scribble some notes on paper. Add some time for reflection and you will probably spend less time in the actual writing or composition of the letter.

Speaking of reflection, I believe that the setting in which you write the letter, or compose your work, can help set the tone. When I want to write a more personal letter, retreating to a peaceful surrounding is helpful; here’s where wireless access on the deck - early in the morning or before the sun sets – pays off handsomely for me. But, if it’s ‘all business’, I find I can really crank it out in the confines of my office.

There is much to be said for brevity in this exercise. But, it doesn’t call for the shortcuts learned from instant messaging or email. I would encourage you to take a few minutes to consider your own communications needs. Are you spending adequate time in preparation before you compose? How many rewrites before you consider it a quality piece; or is it more like, running with your first draft? Does your sense of urgency to get something out interfere with the quality of your work? If you have some additional advice on effective letter writing, please share it with the rest of us.

p.s. I applaud those of you who send hand-written notes as a “Thank You”. I wish my handwriting were such that others could easily read it. When I send these, I have to resort to printing if the recipient has any hope of reading it. When was the last time you sent a hand-written Thank You to a customer or business associate?

BuilderLink™ puts material control and inventory into the hands of the building contractor

Much has been written about the creative and innovative talent of today’s CIOs. For some, their in-house work can turn into a commercialized application for sale to others. So it is with BuilderLink™; the exception here is that the driving force behind this launch was a seasoned lumberyard manager with a penchant for computer systems and software.

What began years ago as an in-house ‘green screen’ software application called M2L – short for “Modem to Load ‘em” – has evolved into a more robust, browser-based commercial application called BuilderLink™. Having been familiar with the initial launch of its predecessor, M2L, I welcomed the invitation to experience a new-user training session, and the offer to feature a product review here in the blog.

Some History

M2L offered a simple, character-based means for building contractors, architects, and other commercial builders to access the inventory at a local wholesale lumber and building materials dealer, Truitt & White Lumber Company (Berkeley, CA). Early PC and Mac users could use their modem to login to the Truitt & White Lumber database and perform a lookup of items and pricing. They could even build an order, and in most cases, fax it in for shipment or pickup, thus bypassing the traditional phone inquiries, or visits.

With the early success of M2L, Mark Pearsall, General Manager of Truitt & White Lumber, recognized that the underlying architecture of their custom in-house systems could help other wholesale building materials dealers. The sale and support of these systems and software would necessitate a spin-off company. Soon thereafter, Softwood, Inc. enters the picture with Mark assuming a dual-role with Truitt & White and Softwood, Inc.

"Having been a lumber dealer for decades, I kept my ears and eyes open to changes that have been happening in our industry," says Pearsall, a lumberyard manager for twenty years "The new generation of builders and contractors want immediate, accurate information at their fingertips whether they’re on the job site or at home in their living room.” With the growing interest in Internet applications, Softwood embarked on a migration path to take M2L into a browser-based application and additional functionality. Renamed BuilderLink™, the new graphical interface simplified use and added an opportunity to incorporate pictures and graphics into the otherwise plain-vanilla text, previously available in M2L.

Fast Forward to Today

In addition to the new graphical interface and platform independent nature of BuilderLink™, additional features and functionality have been incorporated from the user community wish list. Contractors can now build an “assembly”, or an “estimate”, as well as export their work into other business software applications like Sage Master Builder. The previous inventory lookup mnemonics have been replaced with a combination pull-down and free-form text search box. Many of the products incorporate additional material detail, pictures and graphics, with some incorporating hyperlinks to the manufacturer’s Web site.

Building an assembly in BuilderLink™ is a simple, yet powerful feature of the software application. Here a builder or architect can assemble common materials into a named “Assembly” and save it for later use. It can be modified over time, or adjusted for individual jobs or estimates. A good example of this would be a common deck project on a home. Various assemblies would make up the average job and individual projects could be adjusted accordingly.