Give Better Gifts: Shop Local

November 22, 2011

A few Sundays ago I was heading out to run my errands. And I’ll admit, Walmart was on my “to-do” list.. As a small
business owner who works with small business owners, I try to support my local small businesses when I can and as I made my Walmart shopping list I wondered  if I could  fulfill it  - on a Sunday –  shopping at nothing but local independent stores.  Sadly, the answer was “no, I couldn’t”.

 That’s when I realized that learning to shop local would be more than just a minor shift in how we do things- it has to become a way of life.  It probably means not only altering how, when, and where we buy – but WHAT we buy.  small business shopping

Tis the season for us all to storm to  the mall in droves to buy  the same boring gifts as everyone else in the country. Or worse yet, spend hours browsing aisle after aisle and shelf after shelf, because we don’t know what to get Aunty Millie – because it all just seems so … impersonal!

 This year be different!  How about a few jars of  yummy homemade low-sugar marionberry jam from a local farm with a dozen fresh muffins from a local bakery? Much better than that Yankee Candle set you were going to pick up at Costco, right? Or how about a gift certificate to a favorite local restaurant instead of a Macy’s scarf? Or some olive oil from your local olive grower, a handmade box of chocolates from a small local chocolatier , a car tune-up from a local mechanic, a car wash, a haircut,  fresh flowers,  dog grooming services,  a round of golf for your husband and his buddies or bowling for the family, maid or landscaping services for that busy working couple,  or bookkeeping or CPA services gift certificates for that small business owner? Make it a day of visiting local businesses to fulfill your holiday shopping list! And have fun- get out there, meet your neighbors!

Besides, doesn’t the effort put into choosing a gift count almost more than the gift itself?  It’s much more special when you put thought into it – and even go out of your way a little for it.

Supporting our local small businesses isn’t just good for the people on your shopping list, it’s good for small business owners, our neighborhoods, and our communities! Here are some facts:

  • For every $100 spent locally, $68 goes back to the community through payroll, taxes, and other expenditures. If you spend that at a national chain only $43 dollars stays here, and if you shop online nothing comes home. (Source: the 3/50 Project)
  • Locally owned firms contribute more to local charities and fundraisers than their national counterparts. (Source: Anderson Study of Retail Economics, Chicago, IL, Oct. 2004)
  • Small Business accounts for 75% of all new jobs*
  • Locally owned businesses reinvest in the local economy at a 60% higher rate than chains and internet retailers*
  • Small businesses create more than half of the non-farm gross domestic product (GDP)*
  • Locally owned and operated businesses create higher paying jobs for you and your neighbors*
  • More of your tax dollars are reinvested in your community to fund local schools, hire more police, and improve roads*
  • *Sources: Sources: U.S. Chamber of Commerce – Small Business Nation; Civic Economics – Andersonville Study of Retail Economics; Civic Economics – San Francisco Report on Retail Diversity; U.S. Dept. of Commerce, Bureau of the Census.

Ok, so maybe you can’t get everything on that Christmas or shopping  list  from a locally owned retailer – and maybe it’s too much to ask to completely change our lifestyles to give up shopping national chains and buy only from local companies. But these stats show that shifting just 10% of our spend will have a huge impact.  Not only on the local business owners and their families, and the families of the people they employ, but our local communities – and even our country.

Start NOW – show your support for local businesses by saving some of that holiday budget for small businesses and making a statement…  This Saturday, November 26th is national Small Business Saturday-   So instead of hitting the malls in droves, let’s hit our local small businesses in droves!!!  Wouldn’t it be great to see a decline in sales at national retailers on Black Friday and an increase in local spending on Small Business Saturday??? That would be awesome!

For more information about shop local movements visit the 3/50 project and Small Business Saturday. 

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Welcome to the Fortune Friday Free Marketing Tips Featured Article!

November 17, 2011

 Why Your Business Shouldn’t Advertise Like McDonald’s

See, with a multi- million – or even billion – dollar marketing budget you can buy the “know, like and trust” needed to make your business work. Human psychology is a funny thing… the more we hear or see something, the more we begin to trust in it (as long as what we hear and see isn’t negative); regardless of what our common sense tells us.

Why Infomercials Work

Think about how you’ve responded or reacted to certain product / brand messages over time. Those annoying  advertising for small business infomercials are a great example of how constant bombardment of messaging can work.  The first time you see one you think “what a crock, who would buy such a thing?”, or “that could never work”. Then, the 15th  or 16th  time you catch a glimpse of the extra fancy schmancy all-in-one fried chicken, quiche, and Bundt cake maker you’re intrigued.. “Hmmm. What does this do, really? Maybe I’ve been a little too hard on this extra fancy schmancy all-in-one fried chicken, quiche, and Bundt cake maker”.

Before you know it, you doubt your original impression of the product.  Then, by the 50th or 60th time you see it, your brain starts telling you you might actually need one! (Come on, admit it, I know that’s happened to you too!).You may even have half a bottle of that “amazing, scientifically proven weight loss formula” in your medicine cabinet.  Or that super-duper, extra cool tomato slicer stuffed away in a drawer somewhere. Or how many times have you been going about your day, minding your own business when you see an ad or a billboard for a Big Mac? And then suddenly, maybe without even realizing it, you’re craving McDonalds…???

Ok- so, yes, this type of advertising can “work”… depending on how you define “work”. But can you spend millions of dollars to be in front of everyone 24/7? Of course not!  So then why are you trying to? Wouldn’t it make sense to find a marketing strategy that works for a company like yours; not like the McDonalds’ and Toyotas of the world?

Things you need to consider before trying to advertise like McDonald’s: 

  1. Can you afford to invest in “awareness” advertising? There are a couple of different ways to advertise: there is direct response advertising (an offer) and “awareness” advertising (some people call it “top of mind”). Awareness advertising is about putting your name out there to raise awareness. If you aren’t’ doing this constantly and consistently it’s a waste of time and money.
  2.  Do you have the budget to advertise consistently over time? A person will need to see an ad at least 3 times before remembering seeing it- and another 10 or so times before she starts to believe in the legitimacy of the company, product or service. If you don’t have the money to invest in a long-term consistent advertising campaign, you are throwing money out the window. One ad here and there isn’t going to do anything for you.
  3. Do you have realistic expectations about what the ad can do for you? Ok, so you have a few hundred bucks burning a hole in your pocket and want to place an ad. So you put a coupon in the paper for 10% off your product or service, turn on the “Open” sign and wait for the crowds to line up around the block….  And you wait… and wait… Nothing happens.  As stated in #1 and #2, advertising is a process and must be done consistently and repetitively. Don’t expect to place one ad and have the products fly off the shelf and the phone to ring off the hook.  Unless you are using the 2 Step advertising approach you probably won’t get the response you expect.

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It’s Marketing, Horn Tooting is Allowed!

November 14, 2011

How often do you remind your customers of all the little extras you provide that they most likely take for granted as just a routine part of doing business with you? If you’re like most of us, probably not often enough. Marketing is as much about reminding our existing customers of our value as it is attracting new customers. So how do you gently remind your customers of all the value you bring to them every day?

Here are a couple of ways I saw businesses do it this week that I  think we can all learn from:

Marketing is horn tootingAt the Vet

My vet’s office has a notice on their counter, nicely printed and in a decorative frame that reads,

Dear Customers, We realize that times are tough for many these days and your pets are very  important parts of your lives. That’s why we haven’t raised our rates in over 3 years. We want to make sure your best friend stays a happy healthy part of your family for years to come.”

This is brilliant on so many levels – I stood there just staring and re-reading in some kind of marketing-envy trance while my dog Capone tugged on the leash wanting to get the heck out of harm’s way.

Why is this so brilliant? What marketing purpose does this simple notice serve? For one, it tells their customers they care and they are looking out for our needs and interests – every customer wants to know a business cares, right?

And secondly, this simple little sign actually sets the stage for their next rate hike. Yup – this notice is preparing their customers to justify a rate hike for them!!!  Think about it, businesses usually wait until we’re increasing our prices to remind customers that we haven’t done so in a while – and that always seems self serving. But reminding customers consistently without asking for anything now, allows us to send a message of care, concern, and understanding. So when it’s time for a rate hike customers will justify it for us! They’ll remember the notice and come to the conclusion themselves, “Well they haven’t raised them in 3 years, it’s only fair…”  Absolutely Brilliant!
At the Grocery Store
The second example of “horn tooting” I saw was in the checkout line at Raley’s Grocery Store.  “We unload your cart for you; it’s our job, not yours!” 

WOW… again, brilliant!  Really? Your job, not mine?  These days I feel guilty  just standing at the cash register staring at the cashier if there’s no bagger  and these guys are telling me I don’t even have to unload my groceries , much less feel guilty about bagging my own? Ok, that’s worth the extra 5 cents for a box of cheerios!

With this simple sign Raley’s is marketing to existing customers; setting themselves apart from the other grocery stores and reminding me of why I shop there. It’s an excellent testimonial to the value they bring their customers every day.  What this sign really says is, “Other grocery stores make you do their work for them… not here!   We’re different. You’re the customer – relax and let us do our job, that’s what you pay us (a little extra) for! “

Do You Toot Your Own Horn?

So, what sets you apart and what are you doing to remind your customers?   Do you offer free delivery? Do you perform complimentary audits or inspections? Do you offer longer payment terms than your competition? Have you not raised rates?  What are the little – or not so little – things that you – and your customers take for granted?

Or did you win an award, donate, volunteer, fund-raise, or get mentioned in the news? Did a customer rant and rave about you? All of these things are toot-worthy!  Put a notice on your invoices, website, or your next ad. Or include it in a Thank You, Birthday, or Holiday cards. Don’t be afraid to announce these things on Facebook, LinkedIn, Twitter, your newsletter, – or even a special email to clients!  It’s Marketing, horn-tooting is allowed!

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