Why Some Retailers SUCK and others ROCK

In the current economic climate, one would think that a retailer would go to great lengths to consummate a transaction. Here's a story of one retailer who avoided (lost) a sale and one who perfected the sale:

Two days ago, I entered a PUMA store with the sole purpose of purchasing a digital watch for my wife. Within seconds, I found my "one-of-a-kind" in a trendy, pink design that was clearly more form than function. The price tag? A mere $80 - an insignificant amount in the watch world, but in the retail world (and to a company who needs to sell watches, shoes, t-shirts, hats and sunglasses) a healthy transaction that took less than 3 minutes to complete. BUT, as I inspected the watch up close at the checkout, it occurred to me that the digital numbers were nearly impossible to view. The illumination was almost non-existent. The "salesperson" quipped by disclosing that he had never sold a watch at PUMA and that all of these other watches in the case looked the same. He even suggested that I take my newly purchased watch to a jeweler for a new battery as most of the watches in the display had been there for as long as he could remember.

I left the store thinking that with my technical prowess, I could easily troubleshoot the illumination problem and present my wife with her new Thanksgiving present.

Not the case.

Frustrated, I ventured back to PUMA the following day determined to leave with a functional watch. I was delighted to find a new "salesperson" behind the checkout desk; someone who was sure to know more about the pink PUMA watch. Nope. Amazingly, I was given the same suggestion of replacing the battery on a brand-new watch. For a brief moment, my mind went adrift as I gave thought to how I would handle such a situation in my business. No doubt, I would have taken the watch to the jeweler literally NEXT DOOR, paid $3 for a replacement battery, a presented the customer with a fully functional pink watch 5 minutes later.

So, I left with no watch and PUMA lost (blew) an easy $80 sale.

Not all retailers blow the sale. Some even take their customer to unimaginable levels. Here's the story of a small retailer who went the extra mile. Make that 30 miles:

My mom, Kathy, and my brother, Adam, a learning disabled adult, recently went clothes shopping in Columbus, Ohio (Short North district). They were specifically looking for dress suits as Adam wears a suit and tie to work (like me!). They discovered a fashionable boutique on High Street offering Ben Sherman designs and quickly found their one-of-a-kind. Unfortunately, this clothier's tailor had recently quit leaving no qualified replacement at the store. Because my brother doesn't drive and he lives on the other side of town, coming back to the store when a qualified tailor was re-hired wasn't a practical alternative. So, the deal was done. No suit.

But this local boutique owner wouldn't give up. What happened next is pretty special.

A few days passed and the boutique owner called my mom to inform her that he had just taken a class on how to properly fit and pin a suit for alteration. He asked for a chance to custom-fit my brother for a new suit. Coincidentally, my brother was at my parent's house nearby (and not on the other side of town) recovering from H1N1. 30 minutes later, they were back in the boutique and in the dressing room. So pleased with the service they were, they decided to purchase not one Ben Sherman suit, but two.

A week had passed while the suits were being altered and the boutique owner called my mom. "Your suits are ready," he said. "I would like to personally deliver them to Adam (on the other side of town) if that's okay."

Do you think this boutique owner has a happy customer? Absolutely. Do you think PUMA can say the same?

Bankruptcy is Immoral

I know it's a bold statement, but it's a bold move, too.

First, I am very clear about the legal rights afforded to businesses and individuals as it pertains to filing for bankruptcy. Second, I also realize that some people have no option but to file. When you have NO money and no way to pay for things by which you are obligated, you are left with no other options. As a tactic, filing for bankruptcy is not immoral.

However, refusing to pay (more like re-pay) the creditors consistutes an immoral action.

I completely understand one's inability to repay a debtor in the NOW world. But what about next year? Or five years from now? Or fifty years from now? Therein lies the moral aspect. Because one who chooses and succeeds in filing is saying to the world, "I can't pay you now. Please forgive me. Oh, by the way, I am choosing not to pay you for the rest of my lifetime - even when I can afford to do so."

As more and more Americans resort to the strategy of bankruptcy, the once-strong moral fibers of this nation weaken. Future generations will look back and recognize The Great Recession was a moral one.

The New Joint Venture: Your Customers

Question to Homebuilders and Developers:

What thoughts come to mind when you think of a Homeowner's Assocation meeting? Do you think of axiety, anger, tomatoes, frustration, friction and burning torches? Probably. I've had those thoughts, too.

Last Thursday, I entered such a meeting.

But this one had the makings of being worse. I was about to inform the homeowners that the construction of the clubhouse and pool would be delayed indefinitely. Not permanently, mind you, but for the foreseable future. Financing of the clubhouse and pool had recently by de-funded by my construction lender leaving me with no choice but to postpone the December 2009 opening.

Not surprising, tensions rose; emotions erupted. Profanity ensued.

After a period of civil discussion (missing from our culture in every day America) something amazing happened. I mean AMAZING. A handful of homeowners offered to loan the money to pay for the clubhouse. Unbelievable.

Details haven't been worked out and I'm sure there will be a few. One thing is for sure: My business has a new Joint Venture. I couldn't be happier.

In these (economic) times, can you think of anyone you'd rather partner with than your customers?

How Much Do You Charge for Integrity?

I know, it's a strange question.

But it seems to me that too many people are willing to compromise their integrity. In other words, people will discount their moral values to get the deal done, to please the boss, to avoid scrutiny. Some people don't even hide their intent.

You already knew that.

Here's the interesting part: I'm seeing this (lack of integrity) trend within prospective buyers of our homes. It's strange because I come from the school of thought that the buyer is always right. It occurs to me, though, that some buyers are only in the deal for themselves. There is no reciprocity.

Don't get me wrong. I respect the fact that people are looking out for themselves. Sometimes, you are all YOU have.

What I challenge is the immoral actions these buyers will take. For example, a prospective buyer who works with a buyer's agent (without a written agreement) for weeks in search of a new home only to then exclude the agent when the right (or wrong) home is chosen, hoping that the builder will slash the price even further. That's lack of integrity.

No doubt, the economy is wreaking havoc on our pocketbooks. It doesn't have to take a toll on our integrity.

At the end of the day, if you're only left with your integrity (and literally nothing else), you'll live a life worth living.

See You at the Cheesecake Factory

While on vacation recently, my family and I were biking the beautiful trails of Beaver Creek, CO. As lunchtime approached, we began searching for a nice lunch spot. A place where we could find a nice salad, some refreshing iced tea and enough fuel to get us back to our final destination.

We rode thru a quanit mixed-use shopping center housing some trend retail stores, your corner coffee shop and a handful of restaurants - all of which would likely satisfy our hunger after two hours of biking. After skipping over three or four dining establishments, our interest was piqued by the line of people waiting outside of a normal-looking cafe. Just like that our name was on a list (behind 13 other people).

The last thing we wanted was to wait 30 minutes to silence our growling stomachs. We could have easily walked across the street and grabbed a table for five and finished our meal by the time we were seated at the first place. But we didn't.

So, there we were, like the dozens and dozens of patrons with handheld pagers at The Cheesecake Factory, waiting for a table. The same people I mock every time I go to the mall. What in the world would cause someone to wait in line (sometimes hours) for an average meal, with average service at an average price when you could go across the mall for the same thing? BECAUSE EVERYONE ELSE IS DOING IT.

Human beings like to be led. In other words, humans like to follow (See Seth Godin's, Tribes). A select few (people, restaurants, amusement parks, automobile manufacturers, athletes) choose to lead. Learn how to lead and the people will follow. Add incredible service, great value and quality products and you'll have people waiting in line to buy from you.

Are you a Kategadi

Last night, I (thought) I had the greatest idea. I was watching an episode of Property Virgins on HGTV and..............Wait a minute. I should probably clarify why I was watching HGTV at 9:00 on a Monday evening.

I recently attended a Jeff Shore sales training workshop (twitter.com/jeffshore) in Charlotte and he recommended that we watch HGTV (especially House Hunters) to see how real prospective home buyers search for, (think about) and purchase property. Hint: everybody compromises.

Anway, I saw the most awesome way to market your home. Take the market value of your home, slash the price 25% (and reduce that number by $100), and advertise the lower price. Instruct all prospective buyers they have one week to present any and all offers. Seems catchy, doesn't it? For example, your home's market value is $380,000. You decide to list it for $284,900. Seems like it could be the deal of a lifetime, right?

Hopefully, the pool of prospective buyers know that the $284,900 asking price will likely be met and exceeded since it is significantly below market value. Consequently, those "bidding" on the home during the one-week silent auction period will get caught up in the frenzy (because people assume other prospective buyers are doing the same). Assuming the home you are marketing isn't average, you might dupe the marketplace into paying more for your home than if you had just listed it for $380,000.

You've created urgency.

Those of us in home sales know how hard it is to create urgency (in today's market). It's as hard as shooting a 59 on a par-72.

But are you willing to commit yourself (and your company, and your employees, and your reputation) to schemes; gimmicks (e.g., Cash for Clunkers, $8,000 tax credit); distrustful techniques? Are you a Kategadi (Greek slang for scam artist)?

Or are you the consummate professional?

On the Road to Recovery. I DON'T CARE.

News flash: The Economy is on the Road to Recovery

As Dana Carvey (the Church Lady) used to say, "Well, isn't that special."

It sure would be nice to think that these "experts" are correct. Signs (as miniscule as they may be) of recovery and so-called 'green shoots' are apparently popping up across the economic landscape. The stock market is up; housing starts are up; the sky is still up.

On the other hand, one could make an argument that recovery, while eminent, is not upon us. There are even accusations that the media is falsely reporting signs of an economic recovery. Unemployment is growing; foreclosures are mounting; and Tiger just choked on a 54-hole lead in a Major.

Here's the cool part: I DON'T CARE.

I don't care because my plan isn't contingent on statistics or data. My future success isn't predicated on anyone other than ME and the energy I commit. Notwithstanding the support of my wife, my parents and siblings, my treasured employees, a few select friends and, of course, my bankers, I cannot (and will not) allow my energies to adjust like a thermometer depending on the latest news flash that makes me FEEL better (or worse) about being in business.

This is why you won't view me Twittering or emailing or regurgitating these economic statistics or fighting to save these useless government programs (see The Clunker Close blog) intended to spur economic activity.

Here's to being a thermostat.