Readers’ Response on How to Motivate High Potential Employees

First, let’s thank Eunice for sending in a very interesting scenario that has brought out some really terrific responses.  The thing that is the most amazing is the wide variety of the ways people would handle this situation.  It’s hard to say what’s right and what’s wrong although many people certainly have their opinions.

I think the main issue here is the separation between employer and friend.  Can an employer be a friend?  Some people say no, however, my personal opinion is yes, an employer can be a friend of an employee with one condition.  That condition is that the employee NEVER puts the employer in a compromising situation, the way Tracy put Eunice in.  It works the other way as well.  An employer should never put an employee in a compromising or embarrassing situation.  Basic management says you never reprimand an employee in public.  What is critically important to understand is that the health of the business comes first.  

By Tracy not coming in when she is expected, it hurts the business.  It is not healthy for the business.  The reason why is ownership cannot depend on her, and her co-workers can feel slighted because you have one employee who is on a pedestal and can do anything they want.  Can’t you hear it now ”that’s not fair” and it hurts the morale of the business.  The owner also loses credibility with the other employees because of poor management practices.  Lastly, the customers become the biggest losers because she is never there when they expect her.  

Having said all of that, I still personally would take the loss of such a talented employee as a personal defeat.  I would look at having to fire her as a sign that I did not manage the situation as best as I could.  The following are excerpts from the responses received from this article.  You can read the complete responses on my blog at ricksegel.com/blog. 

• Wow! That has DEPRESSION written all over it! Sounds to me like Tracy needs real help! It makes perfect sense considering all that has happened to her.  Still he fact that she's such a wonderful employee and quite capable day.  I don't think this is a discipline problem. She seriously needs mental help!” -Donna Erwin
• “You need to sit down with her and confront her.  She will probably  refuse at first, but it must be done.  She needs professional help.
  
  Plan on making arrangements to meet with her at least twice a week. You will need to make her feel grounded and loved again before she can move on with her life and enjoy working at your store.  
  
  It’s not usually the responsibility of an employer to make things right but this could be a worthwhile investment.” -Mehdi
• “Encourage Tracy to attend classes and you may even offer to pay something for them.  Working toward a degree will boost her morale.” -Melissa Bailey
• “Have her champion a cause through the store, one that might be close to her situation, such as a cause for single mothers.  Find a charity that is in alignment with her needs. This will give her more of a sense of purpose and may motivate her to have better attendance.” -Phil Wrzesinski  
• “You may not want to fire her, but allowing her to come as she pleases is only enabling Tracy to continue this behavior. You can't be both her friend and her employer, so you will have to choose which one you would rather be. If you choose to be her employer, than perhaps a 30 day review should be set up, with your expectations clearly stated - including letting her go if those expectations are not met. After 30 days you would need to decide - does she stay or does she go. Sounds like tough love, but Tracy is an adult. The choice is hers.” -K. Wooden
• “Regardless of the reasons, this behavior is not appropriate and establishing boundaries and limitations is up to the employer. This is true whether the employee is a top producer or not, and the employer must not use being a good producer as justification for not confronting the problems.  My recommendation is for the employer to work on her ability to be a more effective manager, specifically in understanding what the correct roles are between she and her employees.” -Philip M. Barcellona
• Yes, she may have lost you one $5,000 sale. But weigh it against the unbelievable sales numbers she garners you. If you didn't have her, how many sales would you lose?  
   
  Can you work around her limitations? For example, don't schedule her to open, only schedule appointments with her in the late afternoon, notify customers if she won't be in that day and reschedule them to another day or another salesperson (whatever works).   
   
  I've had my share of unreliable employees -- and fired them. However, in this situation, firing her may cost you more in the long run than working around her shortcomings.” -Karen
• “I have had employees like this in the past... one minute they are your biggest headache and the next they are blowing you away with brilliance! I have 2 suggestions that I have used in the past.
• Give her more responsibility. She understands that what she is doing affects the business and when shown the errors she makes them right; she genuinely feels bad for her actions. By forcing her to be more responsible she might rise to the challenge.  
• Take away all responsibility. If you don't need to rely on her for anything then you will rarely be disappointed.
  
  Separate your personal feeling for her from the needs of the business so you can make rational decisions.” -Jared Habre
• “Sounds like a drinking or drug problem to me.  I don't care how good of a sales person she is, she is being abusive to Eunice and the other employees.  Eunice needs to learn to sell more herself and learn from Tracy as do the other 14 employees.” -Sharla Bush

It was also suggested that Eunice pay for counseling and 30 days off with pay.  I personally think that may be going overboard because that is a sizable investment, but if it worked it would be worth it.  This was a wonderful thought provoking exercise that I would love to repeat.  So, send in your scenarios and let’s see how we can help you.  Eunice, thanks again, and I hope this helped.

Have a great week!

How to Motivate High Potential Employees

I recently received an email from a jewelry store outside of Los Angeles.

The owner posed an interesting question that she suggested would be a wonderful discussion question for my readers. I agreed that it would be a great question and I would get as many opinions as possible. So here goes:

Dear Rick,

I have an employee who has worked for me for 3 years. I own a smaller jewelry store outside of Los Angeles and employ 14 people who all work part-time. The business was originally started by my husband who passed away 9 years ago. I have been running it alone by myself since then. My children have graduated from college and have no interest in entering the business (one is an accountant, the other is an electrical engineer). Tracy, who is in her early 30’s is one of the most talented employees I have ever had. She outsells everyone in the store, including me, all of the other employees love working with her, and customers call to find out when she will be in.

Tracy is also one of the most honest and trustworthy people I know. So, what could be wrong? She really doesn’t want to work, and I don’t know what I have to do to motivate her. Most people are probably thinking by now that she doesn’t need the money. WRONG! She is a single mom with more debt than you can imagine. In her defense, her husband ran up a bunch of credit cards and took off. She has made payment arrangements with most of the credit card companies but she needs to honor her commitments. She has one 12 year old son.

Having said all of that, maybe you can start to share my frustration when I tell you she calls in sick or has an excuse why she cannot come in more than any other employee I have ever had. I can’t depend on her. We tell customers that she is scheduled to work on a specific day. They come in with pieces to have redesigned and/or buy something new, and Tracy is not there. I am particularly frustrated today because one poor couple have now come in three different times and left because she wasn’t there to take care of them. They will not return. I am guessing now, but it was probably a $5,000 lost sale.

Now to make matters worse. When I confronted Tracy, she felt terrible about her actions, and promised that she will make it up to me. And she did. They day I confronted her with this she felt so bad she made four $3,000 sales; one $12,000 sale, and helped two other people to have sales over $2,500 each.

The irony is the fact that the store wasn’t even busy that day. It’s as if she has the ability to just manufacture sales. She also refused to take her normal commission on $5,000 of those sales because of the sale that was lost.

The next day after she had $24,000 in sales, she felt so bad and apologized that it would never happen again. But she didn’t show up for work until 1:00 when she was scheduled to open at 10:00. At least she did call me to open and said she was running a little late. I have offered her more money, bigger bonuses, a flexible schedule, health insurance, and have even looked into help with her child. Rick, I just don’t know what to do. I really would love to sell her the business, and although I have mentioned it a few times, she has never responded to my suggestions. She is a combination of a daughter, sister, friend, colleague and business partner. I could never dream of firing her because I couldn’t do it.

I know she has a very active social life, but we don’t talk about it while sometimes I think I should. It is not as if she has even setting a bad example to the other employees because she openly admits she is wrong. Rick, what should I do? I am at my wit’s end. PLEASE HELP!

Sincerely,
Eunice K.

Eunice, I feel your frustration. I had a similar situation happen to me many years ago. Unfortunately, this employee left the store, but I always wondered what might have been.

Now here’s the challenge.

Write in at rick@ricksegel.com or coment below and share your opinion with any possible suggestions to make Eunice’s life less stressful and to help Tracy reach her full potential. I will leave you with just one idea, and I will be working on ideas all week long. And that would be to sit down with Tracy and draw up an agreement of do’s and don’ts or some type of contract between the two of them. I look forward to your responses and let’s see if we can help Eunice out.

Have a great week.

Here Is a Simple Idea That Works

I just got an interesting job that I think could become a great business tool for you. This is so good a business model that I might even want to pursue it even further and use it for more than this one client.  But the best part is that anyone can do it and reap the rewards from this model.

I will be working for a distributor that has two major trade shows a year. All of the vendors he represents attend these buying shows. They offer 2 educational programs before the show begins and I will be doing one presentation for their sales reps and another one for their retailers.  

In addition to the presentations, the distributor asked me to do a rather interesting assignment that could become a major trend. What I will be doing is going from trade show booth to trade show booth, with a video camera and a microphone and asking the vendors sales/managers or sales reps a few simple but powerful questions:

1. What is HOT from your company?
2. Why is it HOT?
3. Why should the consumer buy it?
4. What’s new?
5. What are the advantages of doing business with your company?

When I edit the responses I will break the videos down to a 3 to 5 minute maximum.  They will be converted into YouTube and placed in a private section of YouTube.  Then the distributor will offer this library of videos for the retailers to use on their websites. FREE Content.  And the distributor will charge the vendor an advertising fee.  

What makes this important for you to do?  

One of the reasons that online sales have been strong is because of the amount of educational data, product reviews, customer feedback, and owner’s polls. When you think about it, an online merchant is able to beat the retailer at their own strength which has traditionally been customer service, expertise, and dependability of the specialty retailer to know and stand behind the product.

Things have changed and the difference is in the area of expertise and sharing that expertise. Having a website filled with instructional and informative short video makes your website one that people will return to again and again. Even if someone doesn’t buy from you, people will be talking about you and in time that will pay big dividends.

SO WHAT IS THE ACTION STEP?

First, ask every vendor you do business with if they have created short instructional, fun, or informational videos that you can use on your website. If not, start to bring a camera to trade shows, any point and shoot camera works since they all take movies today. Then, ask the questions I listed earlier. OR When a sales rep is in your store, take a video.  OR you can use SKYPE (it’s free or has a tiny charge) to capture a video recording right through your computer.

I have found someone to edit my videos. Trust me, there are plenty of people who do that work as a part time job. Then just have them up load it to YouTube (it’s really pretty simple- I even did 2 of them a month ago myself). Once they are on YouTube, you can easily add them to your website and Facebook site.  You can even use these videos in your store if you have a flat screen monitor.  You can use some of the smaller screens that are not very expensive.  

This is really a winner and it just enhances the shopping experience within your store. It also makes your website far more interesting and encourages your visitors to return again and again. 

It’s Time to Recoup, Refocus and Regrow

I just spent a long weekend at The International Humor & Creativity Conference sponsored by the Humor Project. It was located at a sprawling resort and conference center at Silver Bay on Lake George in New York. It was like going back in time a 100 years-- not only because the facility was 100 years old but for 3 days I was at a location that had limited telephone service (no phones in the rooms and one public phone to share with 20 guest rooms). Cell phones did not work at all and internet access was limited to only a few of the building in a 40+ building  facility. The term rustic was used many times but being in a facility like that, with all of the distractions of the world at bay, it clears the air and makes you think about who you are and what  you are doing with your life and career.

This was a very different audience for me because most of the groups I speak to are focused on  business issues, where this group consisted of doctors, medical professionals, educators, and just a whole bunch of really bright creative people who believe in the importance of fun, humor, and playful behavior. They are serious about their fun and the benefits both medically and emotionally.  

It was a place that lent itself for long philosophical discussions on the type of porch that we might have seen Roosevelt and Churchill discussing the politics of the day. This porch that overlooked the Lake accommodated over 50 old rocking chairs and was the right place with the right people and the right environment to truly make a difference on the world.  

So how did it affect me? The biggest thing was it reinforced a belief I have held for a very long time and is clearly documented in the first chapter of both of my Dummies books. I talk about dreaming. Yes, a touchy feely subject but one that is so important. It was asked how many times is a house built? The answer is twice. It is first built in your mind, then the second time it’s built with bricks and wood.  It all starts with a dream.

The people that start a business all start with a dream. If you were to ask most entrepreneurs if they would rather work for someone for more money or be in business for themselves, the answer is always to stay in business for themselves.  Yes, it’s tough sometimes but it’s worth it.

The message I want to share is that sometimes it’s important for us to go back to the original dream we had for and about our businesses.  The unfortunate thing is that sometimes life gets in the way: recessions, urban renewal, competition, new ideas, a changing demographic, or a new technology that changes the way we do business. There sometimes seem like there are a 100 things that can go wrong and very few that make things right. We feel like that from time to time. The grass is always greener on the other side of the street.

By the way, customers aren’t any different all over the world. The customer today wants it all because they can get it all. Competition is tougher than ever before. IT’S NOT JUST YOU. We need to focus on the customer that appreciates what we do.  

As you revisit your dream, add this to the equation. Ask yourself how you and your business can enhance the lives of your customers. Are you bringing unique merchandise that they can’t find elsewhere? Are you providing a service that is so special they wouldn’t go elsewhere? Or realize that your competitive advantage is the location and the convenience you offer your customer? Just know what makes you special and/or why your customers think you are special. After all, if you are going to be a specialty business, it’s time you put special back into your businesses.

Sometimes we might just have to change or adjust our dreams and goals and remember this. People love change. It’s the transition from changing from one thing to another that we hate. We all want change to be immediate and it never is.  

One last point from this philosophical mood I have taken with me from the conference. We tend to beat ourselves up over some of the tough times we go through. We are never as good as our greatest success and never as bad as our worst failure. Start dreaming again. After all it got you to where you are today. Besides, if it was good enough for Walt Disney, it’s good enough for me. 

It was the Best of Times and the WORST of Times

I experienced a week like no other; I had two companies touch me and I will never ever forget them.

I have had the pleasure of serving some of the finest companies and governments around the world, even as far away as Australia and South Africa. BUT I can honestly say that very few of them ever touched me the way New Balance Corporation, a Boston footwear company, did.

Their commitment to the independent retailer is unmatched. They care about people - their people and the people who buy their products. They care about ideals, they care about their brand and what will it look like 5 and 10 years from now, NOT just what the quarterly results are on Wall Street.

They love Cause Marketing, but also work to have their retailers make money with their products while also making sure the consumer is receiving a true value. 

Their mission statement says it all:

"Demonstrating responsible leadership, we build global brands that athletes are proud to wear, associates are proud to create and communities are proud to host."

New Balance had me speak to their key retailers in Boston last Wednesday. I was the last speaker of the day, which gave me time to listen to other presenters starting the night before.  I ended up getting caught up in the emotion of it all, and started to make changes to my PowerPoint presentation. I just wanted everything to tie in perfectly.

One of the themes that was so powerful was the concept of "move." It is more than just running or walking - we must stay active and cannot be sedentary.

I could easily tie that whole theme into the larger scope of "business today," but that message became far more personal than that because of what happened next...

To explain this part of the story, I'll leave you with an excerpt from a letter I wrote to the general manager of the Marriot Copley Hotel and to Mr. Bill Marriott, CEO of the Marriot Corporation, which is the second company I need to honor in this article.

It took place on Wednesday, April 21, 2010 at the Marriott Copley. It was 5:00 p.m. and I had just delivered a presentation for New Balance Shoes. It went very well, and after the compliment of well wishes, everyone had left the ballroom. I sat down in shear exhaustion to gather my strength before heading back to my room. However, instead of improving my strength my health started to deteriorate as I broke out in a serious sweat, accompanied with heart palpitations.

Being the trooper that I am, I asked one of the folks cleaning up if he could call security to get me a wheel chair to bring me back to my room because I thought the walk might be too much for me. (Boy, that was dumb in retrospect.) He called security and that's when I met the man who probably saved my life. His name is Al McCarthy, who so diplomatically told me that he would bring me to my room but just wanted someone to take a look at me. I said that made sense. (What was I thinking? But I don't think I was thinking at that moment.)

Al and, I was told afterward, his supervisor Daniel Dodsom, had called for an ambulance.  When The EMTs arrived, there was no question I was experiencing a very serious, life-and-death heart episode.  Actually, I knew I was in trouble when one of the EMTs said, "I'm not getting a pulse." As an attempt to lighten up the severity of the situation, I said, "I don't think that is a good sign."

I actually fainted a couple of times, but saw and heard Al's voice reassuring me that everything was going to be just fine. I became far more coherent as they put the oxygen on me. Actually, being taken out by stretcher in a very busy Marriott Copley Lobby at 5:30 p.m., I wish I wasn't that coherent. But Al was right there with his reassuring comments.

I was taken to Brigham & Women's Hospital in Boston, and after three days of extensive testing I learned that I had experienced some minor heart damage caused by fatigue, stress and some misused prescription medicine. As the doctors put it, I avoided more serious damage by the actions that were taken and when they were taken. If I had started to walk back to my room, I might have passed out and might not have been noticed in a timely fashion, considering everything had ended for the day in that section of the hotel.

Yes, I was lucky, but I was lucky because I was staying at a Marriott. Your employees cared because you created an environment that allows people to care. Even down to a man named Tom Brazell, who answered the phone in security, when I called from my hospital bed, to ask if someone could pack up my room. He was aware of everything and he personally took care of it himself. He was great.

Your employees' compassion showed, and I am here because of them. So thank you for everything.  Thank you for my life and for all the wonderful employees who deliver the standard of service they deliver everyday.  Thank you for all of the Al McCarthy's who are making a difference in your guests' lives and saving this guest's life. It's nice to be around to be able to write this.

I have only one question to all the business people who are reading this column. Would someone write the same things about your company? What would you have to do to change it?

I just got a second chance, and I will make a difference in the lives of the people I touch. I am proud of what I have accomplished, but there is still so much more to do. This time I will pace myself and prioritize better.

Now you see why "It Was the Best of Times and The WORST of Times."

One last thing I have to share. My kids were nothing short of sensational during this life-altering scare.  That is why I will always remember my lasting legacy that rests with the 12 people that that either call me Dad, Daddy or Papa.

Have a great week.

What Does Passion Have To Do With Business? EVERYTHING!

Passion has become one of my favorite words. I suppose it was inevitable that Rick Segel (that's me) and the words passion and passionate come together for all eternity.  Yes, we are getting married.

What am I talking about? Words and people don't get married?

Yes they do!

Actually companies marry words everyday:

• Tastes Great - Miller Brewing Company 
• Ultimate Driving Machine - BMW    
• Mmm...Good - Campbell's Soup

And what about...

• "Oh, I wish I was an..." - Oscar Mayer

I know what you are thinking, those are just ad slogans. Yes they are, BUT those words are permanently associated with those companies. In other words, they got married.

This article has two purposes:

• First, to show you the power of Positioning, the obstacles around it and how to create and find the perfect positioning statement

• Second, to talk about Passion and what it means to you and your business

What is a Positioning Statement and why is it so important?  Positioning Statements can be called many different things such as an Advertising Slogans, Themes or Mini-Mission Statements.  But whatever you call it, they all serve the same purpose: to position the company in the eyes of the customer.  In other words, it should tell the customer who you are and what makes you special.

Your Theme or Positioning Statement should be your distinct and unifying idea!

Some people call those few words after the business name their Signature Line because those few words should be thought of as your Business DNA. It is the unique signature you bring to the world.

Think about Hallmark Cards: When you care enough to send the very best. They are selling "paper with ink on it," but when my wife gets a card she always checks to see if it's a Hallmark.  That's powerful positioning.

So how do you write these? YOU don't. They literally will write themselves. What I mean by that is LISTEN to what your customers are saying about you and how they say it.

In my women's clothing store, which sold high-quality merchandise in a middle-income area, we would her constantly hear our customers say, "When I want something nice I go to Ruth's." We heard it so much that writing the signature/ positioning statement was easy. It's the words that the customers say over and over again that are the most natural and the most powerful words and phrases you can use.

In 1991 I started speaking, and since then I have spoken over 2,000 times in 12 countries and on 5 continents, and in 49 states. (Does anyone in Alaska need a retail specialist?) During this time period I have used about 5 different signature lines and NOT one of them really said who I am.  I wasn't in love with any of them.  Then I was reminded about my tool for letting your customer write the signature line for you.

A new web developer I am working with ended my 19-year quest almost instantly when she said the words I have heard over and over again to describe me. She said, "You are so passionate about retailing and marketing, aren't you?"

Then I responded with, "I hear that all the time. As a matter of fact I even tell people that my greatest asset is my passion and my greatest detriment is my passion as well."

That short exchange literally changed the direction of my company as we incorporate that theme into everything we do.

So let me officially announce my new Signature/Positioning Statements:

The Passion For Retailing
The Passion for Marketing
The Passion for Business

Passion? We will be making major changes to my business that will benefit ALL of you. We are about to kick off a new brand initiative, new website, and new, overhauled theme for Rick Segel & Associates.   

I have believed in the concept of Passion and being Passionate.  I believe wholeheartedly in that extra boost of energy that comes from inside of you - that desire to bring more of you into everything you do. It allows me to overcome my obstacles because I won't settle for less than my goal.

My passion for a project is my adrenaline kicking in and it doesn't allow me to stop when others would give up.  I want to share with you two the two quotes that I live by and have made me who I am today:

"Nothing great in the world has ever been accomplished without passion."

"If there is no passion in your life, then have you really lived? Find your passion, whatever it may be. Become it, and let it become you and you will find great things."

Allow what defines you help you find the words to marry, and always remember to run your business with passion.

The 2010 Retail Survey

This year's retail survey as usual offered some surprises, along with the things we had hunches about that turned out to be right on target. Because of the amount of responses and because the responses keep on coming in, I am going to report on eight of the 15 questions and finish the survey next week.

Let's get to the first question and see how you compare to majorities.

Question #1: Are you using Facebook on a regular basis?

This was one of those questions that surprised me a little bit. Yes, I have preached about the benefits of Facebook but I have also listened to the retailers who have been overwhelmed with the prospects of learning and mastering Facebook. It didn't surprise me that 32% surveyed used Facebook on a daily basis and 16% that use it on weekly basis. That totals 48% or close to a simple majority of the retailers that responded. It is pretty significant because a year ago 40% of the retailers responding had never heard of or were vaguely familiar with Facebook. Then you add in an additional 23% that use Facebook once in a while you have 71% using this tool. That even impresses me! Facebook is no longer on the fringes of retailing-- it is an accepted way of communicating with your customers.

The real shocker to me was the fact that they were only 12% who expressed no interest at all. As hard as it might be to believe, I feel that a year from now those Facebook numbers will even improve. I also am of the belief that Facebook is replacing the traditional website. So my question is, what were those 12% thinking? Certainly there is an application that they could use. But I don't think that's the reason for the 12%. I believe there are many retailers who are simply intimidated by new technology. I might add justly so because we have been trained that new technology doesn't always work and Facebook to them is a new technology.

We will be doing more programs over the next 12 months solely dedicated to Facebook and relationship building between retailers and their customers.

Question #2: Have you created any videos on YouTube for your customers benefit.

I believe by the end of the year Youtube will be used by retailers in multiple ways that are 10 times more effective than traditional advertising and far more cost-effective. Having said that I am a bit surprised that only 5.6% surveyed have created more than five videos. The interesting part of this question was that 33% were not sure exactly how it applies but are curious.

I plan on writing a column and a webinar just on the use of YouTube. But let me give you a couple of quick points on how this can apply to your business. A customer walks into the store and comes right up to the counter to give you a compliment about the last shopping experience in your store. Instead of wasting that testimonial, pull out the camera and make a quick one-minute testimonial about their experience at your store. You can add that your website, put it on Facebook, play it in the store on one of those inexpensive widescreen TVs that can help you and the vendor sell more merchandise. The other way of utilizing YouTube is to prepare a 3-minute educational tip about something you sell and the customer needs to know. Customers will appreciate the fact that you are offering it. Lastly you can create short videos that can be embedded into an e-mail and sent out to your customers personally inviting them to a store event.  It's powerful!

Questions #3: Do you sell from your website?

This question definitely surprised me the most. Maybe the reason I was so shocked at the results is because I remembered just a few short years ago when the retailers battle cry was that customers had to see it, hold it, and touch it before they would buy. I guess those days are over because the survey says, 41% are currently selling online and 36% plan on selling online in the near future. That is a whopping 77%-- a far cry the 5 to 10% or two ago! However, there is a solid 22% that have no interest in selling online at all.

My feelings are there is always some product you can offer your customers online even if it's just a book from Amazon's affiliate program. There's lots of opportunity out there.

Question #4: What percentage of your business are you doing online?

There were no surprises at least to me here. Although the majority of retailers trying to sell online over 83% admit that represents less than 5% of the business. It's as if lots of people are starting to jump on the online selling band wagon but the majority are not doing the biggest part of the business. That's a good sign that traditional brick-and-mortar stores still have a strong place in the marketplace. The interesting coincidence is that the number of 6% is often used for the amount of total retail sales being done online which would put that number in pretty close proximity.

There is some inspiring news within this question and that is 5% (that number keeps coming up) are doing 21% or more online. There is business that is being done there. It's encouraging to know that there is opportunity out there for those that are willing to make the commitment to Web sales and it is a commitment.

Question #5: I am pleased with my website?

I think the answers to this question surprised me the most. I think I've asked myself about 50 times if there was another answer that I could have included that might've made a difference in the response. I'm not sure because I can't think of any specific answer I could have or would have inserted. Having said that, it surprises me that over 62% of the businesses checked off pleased but feel they can do more. I think the term feel they can do more is a relative term and means different things to different people. However I think what people are saying is my site looks good to me but it's not working the way I hear about other business sites.

The thing that's interesting here is that less than 10% considered their sites to be excellent and works really happy. This is where I believe my job begins. The website reviews that I have now been doing for almost 2 years have exposed some sensational and pitiful websites. One thing I've learned is that the prettiest site is rarely the best site.

Question #6: How many various tools that Google offers for free do you employ?

I am not going to respond to this question in this article because I am planning on writing a complete report about Google and all of the free and fee services that they offer. I believe after you read my report on Google, the numbers could change significantly.

Question #7: How is business?

There are a few ways I can interpret responses to this question. I could look at it as if the glass is half-full and tell you that 62% of the businesses responding say their business ranges from I see a little uptick in business to it isn't bad but you have to work much harder to business is great. (As you can see over 13% said business was great.) So considering the depth of the recession that we lived through I suppose that's not bad.

However, almost 38% are saying that the recession isn't over and business is still rough. Let's not kid ourselves-that's scary. It's scarier than we realize because the majority of the people who read my newsletter are considered more proactive retailers. But when you think about it, it really doesn't matter because we have to be proactive retailers in order to survive. We must generate reasons to come to our store or a websites all the time.

#8. When should you markdowns slow selling merchandise?

Boy, things have changed the most is when it comes to markdowns. At one point the retailer would not reduce the price of any merchandise until he came close to the end of the selling cycle, which in many cases was a season or three months. Only about 8% responded that they would hold the merchandise for one month without any activity. The other 92% reported a more flexible attitude toward markdowns. 35% agreed with me that the time to markdown a piece of merchandise was the second you realize it was a dog.

64% did not back themselves into a corner or any rigid archive policy. But they would take markdowns at a time that they believe is appropriate. That's not necessarily a policy that I endorse, however it is a policy that I do respect

That wraps it up for the first half of the 2010 Retail Survey. Look for next week's response to the remaining seven questions and my special report on using Google. Have a great week and remember the Winter Olympics are over and spring training starts this week. There is a light at the end of the tunnel and I think it might just be sunlight. Hopefully we will all remember what it looks like!

What did you learn this year? What did this year teach you?

Every year is challenging but this year was without question one of the most difficult years ever for many reasons. We saw the official end to the recession, which should have meant that things would be good or at least better. WRONG!

The recession was declared over because the stock market had a sustained rally. But we have to remember, the stock market is a leading indicator of things to come. This means Main Street has yet to receive any of the benefits of the rally. So although the news is better, it's still tough out there -- and it will be tough until the employment numbers start dropping. I believe that will happen in the spring of this year.

Many of you have fared very well during these tough times because of the lessons we learned over the course of the year. So here is my year in review. It is based on the following information.

• I wrote 57 columns this year
• I consulted/evaluated 71 small businesses
• I judged 17 stores for award programs
• I interviewed and recorded 42 guests for The Retailer's Advantage
• I delivered 87 presentations

During this time, phenomenon I'd been aware of before became popular -- or even more than popular! I refer to the rising in popularity as "mainstreaming". Something that was on the fringe or experimental became the best-selling item or just the way we do things.

Social Networking has come of age and retailers have done exceptionally well with facebook. I was blown away with the results some stores are getting with their facebook initiatives. Many businesses are putting more effort into facebook than the traditional websites -- and getting results that justify the change.

Although Twitter is all the rage, I am not seeing the results that Facebook brings. However, hot on the horizon is the concept of multiple Landing Pages. A landing page is what the name implies-- a place where people first land when they are searching for what you sell. There are so many different ways or terms that customers can use to find us online that we need to create these separate pages that will them bring them to what they are looking for. The problem is they just don't come in the front door anymore -- or to the main page of our website.

I discovered a company that specializes in In-Bound Marketing called Hubspot. They have some incredible tools that made my business life so much better. Some of those tools that I introduced to my readers and subscribers were: http://www.websitegrader.com/ , http://www.facebookgrader.com/, and http://www.pressreleasegrader.com/. These are all free tools that are just terrific.

Speaking about Websites, I learned that having as many vendor names on as many pages as possible helps the ranking of your website. There has been one other major change when it comes to websites, and that is the growth and mainstreaming of the video testimonial. That's when we have one of our customers say nice things about us, we capture it, then download it to a website.

The use of video has become so easy and now is being used in applications other than just testimonials. It can be used for the owner to welcome customers to the site, to educate our customers with short 3 to 5 minute videos, and to give tours of a store so that customers know exactly what to expect when they come in.

We can't talk about video without mentioning YouTube.com. All of these videos reporting about websites should also be appearing on YouTube.com. Actually YouTube makes it so easy to download the video that it's almost effortless. Just shoot a video, download it to YouTube, and then create a link to your website. Now customers have more opportunities -- and reasons!-- to visit your website.

There is another phenomenon that is becoming as critical a component to retail as education that I will be exploring in depth in 2010. The concept is called store touring. This is having a third party organize and sponsor a tour for retailers to a major metropolitan area with retailers and tour the leading businesses in the area. The businesses are selected in advance and they show how they do business and what makes them different and interesting. The question you probably have is why would a business allow other retailers to come in to see what they are doing? The reason why is every store on the tour must fill out a detailed evaluation form with ideas for the store's improvement. It's a real win-win proposition.

This year we also learned about the growing movement of staying local and buying local. We saw the rise in popularity of the 350 Project and I applaud all of their efforts. I wrote a piece this year about how impressed I was with the merchants and their sense of community spirit when I worked in downtown Detroit. I didn't expect to find this spirit and was blown away by it. I look forward to returning to Detroit to continue my work and be awed by the merchants there.

There is an additional twist to the buying local initiative and that is buying from local vendors and highlighting or spotlighting them within the store. I learned the way to do it from a store that won the RAMAE Award Rookie of the Year, Madison and Mason, located in Middleton, Massachusetts. Every display in this store that was from a local vendor or artisan had a sign with a brief story about the artisan.

The perfect segue from buying local to supporting our fellow local merchants and neighbors is to add one page to your website that talks about businesses that are in your area with links to their sites. The merchants will love you and your customers will respect you. This is an easy thing to do and the benefits far outweigh the effort. This is a must do idea for 2010.

The one thing I learned about or finally realized was the true impact of The Apple Experience. Go into any major mall, just about anywhere in the world, and look at the store that has the most traffic. It's the Apple store. I've talked before about the Genius Bar and how education and retailing go hand-in-hand, but I never fully understood the impact of having a place where customers come back to again and again can have. It's unbelievable how many additional sales can be made because you're bringing the customer back. The most basic benefit of them all is that the additional traffic count creates the buying frenzy.

Another concept that was an inspiration came from the financial TV host, Jim Cramer, the idea of What is your Special Sauce? The special sauce came from a line in a 1974 McDonald's commercial that got America humming and trying to remember the exact words (which were "two all beef patties, special sauce, cheese, onions, pickles on a sesame seed bun.") Jim Cramer believes that it was the management of the business that is its special sauce. I agree with him, in part. However, he didn't get the whole picture. There are many things that can be a business' special sauce. It can be the way they display the merchandise, the training their employees receive, their level of customer service, or the uniqueness of the merchandise. For some reason, just using the term special sauce motivated retailers to look for their special sauce.

There were two other RAMEA Award winners this year that taught me valuable lessons and unique ways of doing business. The first business that won the award for visual merchandising is a gallery in Northampton, Massachusetts named Don Mueller's Gallery. I have visited, evaluated, judged, and consulted the with thousands of retailers and from a visual perspective, no one comes close to the work that Don Mueller has done. He has a very different and unique approach to visual merchandising. I will refer to this as his display concept. Most retailers change or remodel their display concept every 4 to 7 years. At Don Mueller's, he builds a display piece that is not only permanent but blends in perfectly to what already exists. The displays are not only breathtaking and sell merchandise, but you never know which display or showcase is two months old or 32 years old. I believe this is a must see store that every retailer should shop. They sell works of art in many different forms, from paintings to sculpture to glass art to jewelry, and nothing that anyone needs but everyone wants. This is truly a remarkable store in the true innovator in retailing.

The other RAMEA winner for creative concepts is a clothing boutique by the name of IZZY'S located in Andover, Massachusetts. This store sells new and vintage boutique apparel but does it in a way that is so special and won them the award. What they did was create a unique Branding Initiative for their vintage clothing. They call it "Reborn". Every piece of vintage merchandise has a label that is made out of fabric that is approximately 3 inches wide by5 inches long that tells the story about the merchandise and how it should be worn. It actually gives the date of birth or rebirth. It is a brilliant concept and executed perfectly.

There was one revolutionary concept that finally got a name. The concept that's been around forever but formalized by a book by Chris Anderson, named "FREE". One of the main reasons for the book is because of the business model that has been created by Google. 85% of everything that Google produces is free to the public and yet they have become not only the fastest growing but one of the largest corporations in America today. When I wrote an article named, FREE is GOOD. No! FREE is EXCELLENT! I never expected the amount of people that responded to my request for ways to utilized FREE. It's here to stay and something we all need to adopt in some way. Obviously it's something that I've done for years with this column but also with many of my efforts with The Retailer's Advantage.

Another article that I wrote that became a breakthrough concept was called, Who CARES How Long You've Been in Business? What Can You Do for ME? When I was working in Minneapolis this past summer for a wonderful group of menswear retailers, I realized that each one of these businesses was quick to share with the world how long they'd been in business. The sad truth is only the retailer cares about that; a customer could care less. The inspiration for the idea and article was that there was a company at the tradeshow selling gift cards. They had only been in business a few years but they were wildly successful because in their marketing pieces they gave exact facts, figures, and case studies about how well their programs worked. They did not focus on how long they'd been in business. Yet all these businesses that were focused on longevity were lining up to do business with them. Think about it-- it's what a business can do for us!

Another concept that was born in 2009 is the concept of Maximizing the Customer. What it means is getting the most out of every customer who walks through our front door. That's more than selling them as much as we possibly can! We have to look for ways to get them to return to the store, to be able to utilize that person's business experiences, shopping experiences, and knowledge in a way to improve our business. This includes asking customer's opinions, surveys, asking customers to serve on boards of advisors or directors, or just taking the time to ask them where they shopped and what kind of stores they like. And of course, we can optimize that customer further by asking for testimonials!

The last new idea that was definitely born from the economic conditions of 2008 and 2009 is the concept of my new book called, "Proactive Retailing...Bringing Your Business to the Next Level". We can no longer just sit and wait for customers to come into the store. We must all become destination businesses and proactive on all of our marketing and advertising efforts. We can't blame the shopping center for the lack of traffic; we must look in the mirror for answers. Maybe that's the best way to end this piece, reflecting on one of the true greats in the entertainment world who passed on this year, Michael Jackson. He recorded the song that said, "If you want to make the world a better place, take a look at yourself and then make a change, just look at the man in the mirror." These words definitely apply to every one of us in a business.

It's been one heck of a year and I never realized how much I learned that I didn't know 365 days ago. I ended last year with a quote from Tracy Mullins, the president of the National Retail Federation who said, "It's time for us to understand and accept the new normal." Many of us have done just that -- but get ready, because the new normal for 2010 is going to be much better than it was in 2009.

Have a sensational holiday season and look for new ideas, concepts, initiatives, and new ways of doing business that we didn't know about in 2009. It's an honor to write these newsletters and I appreciate every single one of you who reads my work and takes action to bring your business to the next level.

The Opportunity....That We Sometimes Forget

The Christmas rush is on and the folks in the Northeast were dealing with a blizzard on the "Busiest Day of the Year", the Saturday before Christmas. Will that day's sales be made up? Not really but generally the impact of these type of events is never as devastating as we first expect.

However, there is one thing that can be even more devastating than a crippling snowstorm before Christmas, and that is our attitude and the attitudes of our employees in relationship to after Christmas returns. (Many stores have a credit only policy on Christmas returns, especially those smaller boutique shops that sell time-sensitive merchandise. I am not here to debate the merits of such a policy. There are strong opinions on both sides of the argument and this piece isn't about that.)

When someone returns something to our store, they are giving us an opportunity to sell them even more than what they are returning. Many times we get our guards up because we assume that the customer is going to give us a hard time. That happens when you deal with 2 customers in a row who are making unreasonable demands. You got it. We start to think that every customer is going to be unreasonable. It's simply not so. We know it, we understand it, we can intellectually deal with it, BUT emotionally we take it so personally that we start to develop this belief that every customer is out to take advantage of us. It's wrong and every time we do that it just hurts our business. It's something I call Last Customer Residue -- you carry over the effect of one negative customer onto all of the customers who follow.

It's Showtime every time a customer walks through our front door. The Last Customer Residue Syndrome must end. Understand that customers today know that if they yell loud enough they generally get what they want. (Sad but true...It's never worth the fight.) They also know all of the right buzz words to use that can get under our skin. Such as: "everywhere else I get"; or "no one every told me that policy!" spoken as defiantly as possible; and the classic "I'm never coming back and I am telling all of my friends". (BTW they generally don't have any friends!)

4% of your customers belong to the PLO, Pushy Loud and Obnoxious. The rest are OK. Customers have Christmas cash. Maybe not as much as they once did, but they are also aware of the savings after a holiday as well and they plan on buying. They are giving us a great opportunity and we need to be able to capitalize on it. All it takes is a compassionate smile, a willingness to listen, help, and an attitude of how you can turn a return into a multiple sale.

They are NOT the enemy. They are the customer, and they are giving us an opportunity to do business with them. Seize the moment, remember my famous line, "Did you see this?" and SELL, SELL, SELL.

Have a wonderful holiday and let's get ready for 2010. The long recovery has begun.

The Power of “ing” …Introducing The Retailer’s Advantage 2.0

How do you build a building? One brick at a time. But how do you build a business? You start by thinking about a business idea, talking about your business idea, researching your business idea, reading about your business, experimenting with your ideas, rejecting some preconceived thoughts, accepting new concepts or models, observing, and listening. We have to listen to the world around us — from family to friends to the consultants, teachers and our own gut instincts. Throughout the process we are constantly listening and learning.

The key to business success is Constant and Never-Ending Learning but the world is changing faster than ever before. We cannot run a business today the way we did just a few short years ago. Think of the new business models that have emerged that are making college students into mega–millionaires and think about all the new words and expressions that have changed our vocabularies in just this decade. Words such as: social media, blogging, page rank, affiliate programs, Google, AdSense, pay-per-click, YouTube, Twitter, Facebook, and online just about anything. Google is so powerful it can be used as a noun, verb, or adjective.

Now, let me explain about the “ing” and why it has a special meaning. Here is a little known secret that I had to learn when I wrote my first Dummies book:

Use words ending with “ing.”

Why? Because they are action words and action words make things happen. Yes, all 2000+ Dummies books all use the same formula. Chapter titles, sections within the book, and the Parts of 10 (aka Top 10 Lists of Do’s and Don’ts) all must include words ending in “ing.”

To succeed we must take action and become proactive. The days of opening up a store and just waiting for people to walk through your front door are over. We also need a method to keep up with this ever changing world and the trends of the day. We must be aware of what is hot and what is not. We used to be able to do that at trade shows or various conferences but the recession has killed that steady stream of fresh new ideas. Budgets have been cut for retailer’s education across the board.

So what’s the next best way? Ask your customers. They shop, they know what’s happening. Plus it’s the best source for new ideas — and it’s cheap. That is exactly what I did for The Retailer’s Advantage. A year ago I started The Retailer’s Advantage, a dynamic online learning solution. The feedback was great and my commitment to this type of retail education grew — both in my time commitment and financial resources. Then I spoke in Minneapolis in March, and I listened to a husband and wife team of gift and floral retailers from Iowa who crystallized my challenge at The Retailer’s Advantage. They said the information was great, but they couldn’t find it much of the time. After all there are more than 1000 pages on this site!

As I mentioned earlier, you build a building one brick at a time. Well, I built The Retailer’s Advantage Version 2.0 one brick at a time. You see, the name of the gift store that articulated the comments is called Brick’s of Iowa. Ever since the day I heard their feedback, I have dedicated the majority of my waking hours to working with web professionals and my customers to develop what I am about to reveal for the first time to anyone.

Version 2.0 of The Retailer’s Advantage
is now ready for your review!

So what’s changed?

The Retailer’s Advantage has 7 major components that are either brand-new or greatly improved.

Here they are:

1.) Retail Stock Reporter: An up-to-the minute Retail Stock Reporter that just specializes in the leading specialty retail stocks, the Retail ETF (Exchange Traded Funds). This fund only buys specialty retail public company. In essence this fund becomes a great barometer or index of specialty retailing. You will be able to recognize how the major specialty store chains are doing and it is a very good barometer of how retail business is. Within this section are also the current prices of gold and silver. (That was requested by the jewelers, but it’s something we can all profit from.)

2.) Retail News and Trend Report: This section has a 24/7 feed from the major media sources that select articles from around the world about retail issues only. Just a daily glance at these headlines will help to keep you in touch with what’s happening in the world of retailing.

3.) Respected Contributors: This section is comprised of all of the consultants, trainers, teachers, retailers and vendors who have given workshops, been interviewed, or written articles for The Retailer’s Advantage. Each individual will have a section for you to learn more about them and explore other ways to utilize their talents for your business.

4.) The Events Section has all of the planned events for the next three months to help you plan according. We are committed to offering 52 new event programs a year, one every Wednesday night. These programs will include workshops, website visual merchandising reviews, interviews with the movers and shakers that effect retailing today, and our most popular event — website reviews of member’s sites.

5.) Retail Tool Section is a collection of retail and business tools, short cuts, and exercises that will make you a better retailer. There are currently 25 different tools. However, by October 15th, there will be more than 50 different tools available to use. These range from inventory control methods, to advertising and marketing planning tools, and just about everything in between. Many people join The Retailer’s Advantage just for this section alone.

6.) The Retail Reference Library is becoming the source for the best articles about the hottest topics in retailing today. Our editors have a mandate to find the best information packed articles from some of the best names in retailing to create a new standard of retail information collections. The best part is we consulted with library science professionals to create a simple easy system to find what you are looking for every time.

7.) The Levels of Membership: This is the biggest change in The Retailer’s Advantage — the introduction of Three-Tiered Pricing.

One of the comments we heard over and over again was that some of our members would only use one section or service but not the other. We have a very large group of members who just use The Retailer’s Advantage for our award winning event schedule. To address that issue, we created the Silver Membership Level that is only $29.95 per month that gives you 52 live event programs a year.

We also have members who were once members of my Coaching Program that ended two years ago. Many of them keep asking me to continue with that program, but unfortunately I can’t because of the massive time commitment on my part. However, because the calls and emails continued for this type of service, we are introducing our Platinum Membership Level that offers 1 one-on-one coaching session per month plus enrollment in a mastermind group of between 6 and 10 stores that will meet monthly online, plus many other services. We believe this is going to be a great program and the perfect and affordable education solution. The price for this service is $149.95 per month.

Our Gold Membership Level is the continuation of the current program and it is priced at $49.95. At the bottom of this page, we have a chart that explains the various levels.

We have dedicated ourselves to the word Simplicity. This site is logical! You’ll know where to go to find what you want. It was as if Mr. Spock from Star Trek designed it in the most logical of ways. But we are always open for ideas and suggestions. Let us know what you think about the new Retailer’s Advantage website! We have also left certain portions of the site open to the public. Please understand we have no contracts to sign or long term commitments. That’s just the way we do business.

So, please check out our labor of love and my commitment to making a difference in the lives of the independent retailer. As you review our pages and programs, understand that this site is and will always remain a work in progress. We have no "finish lin" and we’ll always be constantly seeking the best material from around the world. I hope you will consider joining the site to continue learning, researching, reading, experimenting, and thinking about ways to improve your business. Thank you for reading this and being part of the world I serve. Click here to see The Retailer’s Advantage 2.0.

Membership Levels:	Silver $2995	Gold $4995	Platinum $14995
Access to our complete program of live events — which includes webinars, teleseminars, workshops, retail roundtable discussions, and conversations with the movers and shakers in retailing!
Full access to the entire Retailer’s Advantage membership site, including more than 50 helpful Retail Tools — such as the Misery Meter, Retail Sign Manifesto, Customer Service Evaluation System, the Differentiator Survey, and others — specifically created to help you improve your retail performance!
Complete use of our extensive Retail Reference Library, which includes archived webinars, teleseminars, workshops, interviews with prominent retail experts… plus hundreds of articles & resources about advertising, marketing, customer service & experiences, financial issues, accounting, human resources & management, merchandising, buying, online marketing & social media, promotions, selling, store operations, technology, visual merchandising, and more!
Monthly 1-hour One-on-One Coaching Session with Rick Segel
Monthly Mastermind Group with 6 – 10 store owners, facilitated by Rick Segel