Ah, What's One Lost Sale?

My recent Face book posts have been harping on the need for the "back-to- basics- old- school- real- and- relevant- marketing- strategies"  that direct the execution of specific tactics to  reach our goals.

I wrote these posts in the face of 50 to 100 posts I receive daily from proprietors about being invited to this event, that tournament or to take part in a special offer or two.  Mostly, I read them for content and then go to the next post.

Now I am not saying that new media is all wrong, nor am I saying to not use it. I would be the first one to stand up and say, "embrace it, understand it and master it."

But let me give you an example of what I mean.  Recently, I saw a series of communications from a noted proprietor where he sent out great emails, Face book posts, ramped up his mobile marketing and invited people to consider his center for a Holiday party.

So I called and asked about some information. NO ONE in the center knew anything about it and the owner was not in.  Three hours later I called back...and got the same answer, "Gee, the owner isn't in, could you call back later?"

But maybe, just maybe if Mr. Owner would have spent the same amount of time on a customer response strategy as he did on his Face book strategy, he would have made another sale and dazzled the potential customer.

Because even with all of us using the new media, our business is still off; our open play on weekends is hurting and our league play is flat to down.

Why?  Perhaps, it is because we have lost site of developing and tactically implementing the basic strategies of our business.

Getting back to basics and developing relevant marketing strategies that have to be implemented with real tactics, not just inbound marketing communications, is something we all need to do...and do it quickly.

What do you think?

50% of Workers Earned Less Than $26,000 in 2010

If you have been wondering why open play bowling is off (as are restaurants, bars and nightclubs), maybe this article will shed some light on  the issue.

The following article was excerpted from a recent report on payroll taxes.

"1) Half of all workers made less than $26,364, the median wage in 2010. That means the typical wage is at its lowest level since 1999, after adjusting for inflation.

2) The number of millionaires increased by about 20 percent.

3) The size of the missing work force is 10 million. The number of working people fell by 5.2 million since 2007. But that's not the entire job deficit, because, based on population growth estimates, 4.5 million more would have joined the work force between 2007 and 2011. Add it up, and you get a 10-million-worker gap.

 

What you see in the graph above is that median pay took a  nose dive after 2007, effectively wiping out all gains made in the previous eight years. The macro explanation is that the economy shrunk, and middle class jobs disappeared and were replaced with (or outlasted by) lower-paying positions that companies kept on.  But the economy isn't one giant corporation. It's thousands of giant, medium-sized, and small companies in industries that lived through very different recessions.

So to fix our open play, is it an either or situation of having to cut our prices to  get to this market or target a  more affluent  market?  Perhaps a combination of both.

Or do we create a high level bowling loyalty program that encourages repeat business by offering discounts for future business transactions?

What would you do?

The Consumer's Confidence Problem Is Your Open Play Problem

I speak to allot of business people every day.

From bowling and entertainment industry people to automotive dealers to software developers, to restaurant owners to distributors and manufacturers of high tech and low tech products.

Not one of these folks has indicated that business is good or at least improving.  There is almost a quiet (but angry) acceptance, grudgingly so may I add, that this "new normal" is  here to stay and that the future isn't all that bright.

Smarter minds than mine have dissected the reasons for all this, but in my simple point of view. I think its all about housing.  Even when the stock market went into the tank during the "tech crunch"', people still had their housing "asset" and that was continuing to increase. So if we felt less wealthy because our portfolios went down, we secretly knew that our house was "our safe" place; our last bastion of economic solidarity.

With the hosing meltdown of 2008 to present, consumers looked around and found they were naked, out in the cold with no back up asset. Not only did their 401k's take a major hit, but their homes (THEIR HOMES, FOR CRISSAKE!!)  lost value.

In fact, according to a recent Standard & Poor report the ratio of total mortgage debt to property value now stands at 69.8%. In some areas like Las Vegas NV and Orlando, FL this ratio is 119% and 100% respectively.  In Warren MI, its 88.4% in Nassau and Suffolk County NY, it is 45.4%.

Further reports indicate that for every $1,000 lost in property value, each individual consumer cuts back anywhere from $20 to $70 a year in spending. 


Doesn't sound like much, but if you put it all together, from 2005 to 2009, consumer spending decreased by $240 BILLION DOLLARS.  This decrease represents about 1.7% of annual economic activity, enough  to be the difference between mediocre economic growth  and healthy growth.


What has happened is that people have realized that the economy is not going to get better any time soon, so they have stopped spending. Period.

I hear it every day from bowling proprietors. They tell me how their open play and bar business has taken a big hit, especially liquor. Even beer companies like Bud and Miller report very soft sales with some markets being off as much as 50%.

So what are you supposed to do?

In good times and bad, customers are first and foremost people.
And people always want to do business with people they trust and who they believe really care about them. In this economy, your number one job is to prove to your customer that you are a member of the community who cares about the community.  (Why would you not?)

Simply stated. Be their friend and continue to build on the relationships you have with them. Here's seven (7) actions you can take right now

1. Go back to your existing customers and invite them in with your very best offers.  Best beer offers, liquor specials...all within the confines of your state laws of course
2. Communicate with them about ways to save money and live better. Be a resource they can trust for helpful information.
3. Be more visible in the community. sponsor local events, get involved in fund raising, put out the "Christmas Toys for Tots" cans early. 
4. Work with area merchants to co-promote. Distribute other merchants coupons that will save your customers money and time.
5. Give free games away to get people to bowl paid games
6. Create frequency programs where they can get premiums for bowling more.
7. Make sure your people respect and honor the customer and treat him with more dignity than ever.

As people settle into lives of believing they are less prosperous, discretionary income is the first thing to go
But if you show them that having quality family time in a safe and clean environment is something that IS vital to their well being and can prove your center's "value proposition", you can survive this cycle

For more information on what you can do to retain and grow customers, please email me at fredkaplowitz@gmail.com

Lets talk.

Something's Happening Here

"There's something happening here. What it is ain't exactly clear. There's a man with a gun over there. Telling me I got to beware                                                                                                                                                                            Buffalo Springfield

I'm not sure when this song was recorded, but somewhere in my 70's memory I recall it. Now seeing the "Occupied Wall Street" demonstration, (getting bigger every day) I am reminded of this song. Yes, there is something happening here and I am not exactly clear.

But most definitely, it is forming, perhaps not quite like a Tsunami, but definitely a major wave of change to our system is beginning to manifest itself. 

From Wall Street to Los Angeles, sea to shining sea, occupiers are taking to the streets. No longer is it credible to say of protests and massive civil unrest abroad “It will never happen here.” To do so today would be a denial of reality. It is here...wherever that “here” may be for you. And if it is not, it soon will be.

In the 21st century, we use terms like "open source architecture" to define how a group of people build a software program or even an encyclopedia.  

If anyone would have told you back in the early 90's that the Encyclopedia Britannica would be dwarfed by a new encyclopedia called WIKIPEDIA and constructed, added to and modified every day by a bevy of people doing it for FREE, you would have said that is impossible to comprehend.In fact, where is the Encyclopedia Britannica?  Where is Microsoft's encyclopedia, Encarta?  Gone! Even to this day it is impossible to comprehend that millions of people have devoted endless hours to building this "open source" product. And continue to do it even as I write this blog.

What is happening on Wall Street is no less a phenomenon. People are building the "movement" every day. At first it was viewed as another display by malcontents and have-nots.  Some were even referred to as "hippies" Yikes.But then something happened. People from around the country started to show up at Zuccotti Park near Wall Street and the "movement" began to form.  Even the Iranian clerics are posting this as "America's Spring", which they claim, will bring the downfall of American capitalism.  Pretty heady stuff from a world away. 

For many Americans, this is quite a confusing time. Frightening, even. They know something is happening here...but they don’t know what it is. And that includes many of them in the occupying camps themselves. They know they are angry...that they have been dealt a rotten hand...that they are the “have-nots.” But they don’t know why...or who to blame. Then, along comes an “open source” movement. They didn’t even know such a thing existed a few weeks ago. But they are drawn to its energy and their fellow downtrodden within it. The see that it is going somewhere, doing something. It is on all the news channels and in the paper. And now they are neck deep in it, swept along with the tides of change, resistance and revolution. 

Lets keep an eye on this; who knows what effect it will have on our lives, our families or our business. What do you think?  What kind of effect do you think this "movement" could have? 

I will keep you posted from "something happening here land."

Yikes! Find Out Why Facebook is Killing Conventional E mail

My daughter is getting married in six weeks.

And while almost all of the details have been taken care of, it seems that Internet communications are about a solid two to three months behind my planning and buying process. I am still getting information about catering halls, hotels, car rentals and even dresses, invitations, DJ's, bands, and flowers; not to mention information about tuxedos (which we won't be wearing!).

The web has discovered that I am a target for wedding stuff and because of that discovery, various companies out there have cranked up their automated marketing machines, Facebook ads, and Google ad words to consistently and unrelenting send information to either my Inbox, Spam box and Boxbe filter folder. 

No matter how frequently I delete, unsubscribe or just ignore, more keep coming.  Sometimes the companies will go away, only to come back 30, 60 days or 90 days later. (Hey, it's all programmed).

And there is the flaw. 

These companies don't know when to turn it off.  

I posted an email to over twenty of these companies (in the bcc box) writing that our family's arrangements for this event are DONE; marriage essentials are done, done done,

And to, please, not send me any more information! For every "unsubscribe" I post, I get two NEW ones.

As time went by, I started to not open some companies' emails and then, after a while, not open them at all. B-Bye.

These companies who only utilize email as their one hit pony media strategy and view email as an inexpensive way to reach customers (i.e. a substitute for direct mail) will note in the long run, it is neither inexpensive nor the only one trick pony around. There's always a new one coming. Things change.

No wonder fewer than 15% of all emails are opened; some estimates even peg it 12% or lower.

And that's one reason Facebook is killing E-Mail as the social media of choice.

People are using Facebook, to talk about themselves, to stay connected, to maintain and build on existing relationships to exchange information, to solve a problem, check a fact, research a topic, etc. And , of course, to just talk about their lives and things they are doing, or contemplating...which includes, sometimes, pretty personal stuff.

On the Facebook side, the information I received from my Facebook Friends were more credible and I opened them more often than email  from a company always trying to "tell me and sell me."

Because customers want valuable information from a company they can use or at least appreciate.

• First, so they can  trust  if their information is genuine and credible.
• Second, to give you permission to send them either information, coupons and deals" or a combination of both.
• Third, so they can decide if you have any product or service that would either make them money, save them money, free up time, make them feel good.

Ask yourself this, please?

What is Your Social Media Strategy?

Steve Jobs 1955 - 2011 RIP

Steve Jobs died yesterday.

Accolades from President Obama to the man in the street flooded the internet. People tweeted, facebooked and emailed their feelings about Steve Jobs.  I  re-read his speech  from his 2005 Stanford University Commencement speech His insights about life, death and making a difference through your work came through. Here it is.  I hope it inspires you as muchg as it has inspired me

"Your time is limited, so don’t waste it living someone else’s life. Don’t let the noise of others’ opinions drown out your own inner voice.

You have to trust that the dots will somehow connect in your future. You have to trust in something - your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.

Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful, that’s what matters to me."

What are your thoughts about Steve Jobs?

7 Ways to Raise prices and Have Your Customers Thank You

Raising prices is one of the best ways to double your profits - because all the extra money goes straight into your pocket. Yet, isn't our greatest fear that if we raise prices we will lose customers - or that our new customers will go somewhere else that's cheaper?

Price is determined by the amount of value that your customers see in your product or service. Simply, if they see lots of value they will be willing to pay a higher price. What if you could quickly boost the value in your customers eyes, enough so that they will be willing to pay more for it?

That's where the bonus comes in. A bonus is something that you add to your product or service - that is highly valuable in the customer's eyes, but is very inexpensive for you to provide.  here are 7 ways to raise prices and have your customers thank you.

1.Special free gift.
Try to get a vendor to give you product for free or sell it to you at cost (one man's trash is another man's treasure) - and then give it to your customer with their purchase.  (what do the beer or liquor distributors give away that you can add to the purchase?) 

2. Add a service to a product.
Provide consultation services that only costs you time, but that the customer values greatly. (offer FREE coaching with an open play special.) 

3. Add a product to a service.
Find a product that your customer needs with your service. Partner with a vendor to provide it and share the profits.  (have a ball, bag or shoes anyone?) 

4. Bundle items together.
Put products or services together, that your customer values - but that cost you close to nothing to provide. (offer a slice of pizza and a soft drink or an alcoholic beverage with a late night mid week open play special.) 

5. Convenience.
Provide more convenience for your customers  without utilizing a lot of time or money.(open earlier, stay open later for kids camps, company parties, fund raisers?) 

6. Special arrangement.
Provide the product or service in a more beneficial format for the customer ( Pizza pins n pop, burgers n bowl, chicken wings n bowl?) 

7. Value pricing.
Add more bonuses for customers that will pay more, less for those who will not (my favorite). bonuses could be a free game with a red head pins trike or a 2 liter bottle of a soft drink or a pizza for bringing 5 people to your cosmic show.

Once you find the bonus that works and provide it as an incentive for raising prices - you will be able to raise prices and your customers will thank you for it.

7 Pillars of Success To Market Your Business on The Internet

I have watched many a proprietor try to build an on line marketing campaign, only to get tripped up on some key points. So I thought I would assemble my "7 pillars of online marketing success" for you.  Here they are>

Pillar 1: A Website You Control
You must operate your own website, which enables you to make basic changes to it yourself, preferably right through your web browser. Waiting for a "webmaster" to update text and pictures does not qualify as a smart use of your time or money. WordPress, an open-source (free) publishing platform, makes an excellent choice for managing and organizing virtually any size website.
Pillar 2: Google Maps
Google now stands alone as the "900 lb. Gorilla" of the online search world. However, most don't realize that "Google Maps" is the most basic component of local online marketing with Google. Get all the details at Google.com/places/. This tool is one of the fastest ways to get found in Google and, best of all, it's free!
Pillar 3: Basic SEO
SEO stands for "search engine optimization," which means making your website relevant when someone searches for your business name or terms related to what you sell. Building all the content, information, and text on your site around a central theme is the No. 1 thing you can do to increase your chances of ranking well in Google and other search engines.
Pillar 4: Make Value-Added Offers
Most people don't make offers on their websites. Their web pages look like everyone else's and say basically the same things. You must make offers on your site that spur people to action. Offer a discount or faster service. Give an incentive to come in today. Most important: Make your offers big, bold and obvious on your site while giving people a reason to do business with you right now!
Pillar 5: Drive Traffic
You won't make a dime with your website if the right people don't see it. The fastest way to drive traffic is to buy it, specifically with the Google AdWords pay-per-click program. Pay-per-click means you only pay when someone clicks your "sponsored" ad on the search engine listings, and Google's AdWords is the largest pay-per-click advertising network. However, make sure you set up a "geo-targeted" campaign when starting out so only people in your local area see your ads (instead of wasting time and money showing your ads to people who could never patronize your local business).
Pillar #6: Local List Building
Building up a local following that you communicate with using online tools rates as one of the smartest and most cost-effective things every local business can do. Whether through email, text, Twitter or Facebook (or some new tool), communicating with a targeted group and providing value-added information and offers can bring huge rewards. One coupon with the right offer to the right audience can turn a ho-hum Thursday into a blockbuster sales day.
Pillar #7: Consistent Follow-Up
The biggest online marketing mistake I see people make is NOT following up with prospects and customers. Use email and other communication tools to keep in contact with your prospects and customers and give them reasons to do business with you (by making offers) while providing useful information they want. As a wise man once said, "The fortune is always made in the repeat business."