The Real Reason Brick and Mortar Stores Are Dying: Showrooms For Amazon?

The Real Reason Brick and Mortar Stores Are Dying

We hear it all of the time, "The Internet is killing brick and mortar stores!" While it is true that selling over the Internet has its advantages, especially when it comes to price, there is something a brick and mortar store can offer that Amazon cannot. It is a high level of personal customer service, or as Jeffrey Gitomer says, “its customer help.” Unfortunately based on my experience lately, customer help at most brick and mortar stores suck!

I went into a local music store to check out some guitar amps that I have been eyeing on the Internet. I read some reviews on them but I wanted to see one in person, so I went to the local music store. I figured if the price was in the same ballpark I might even buy it at the local store. If I can, I like to buy from local stores even if it may be a few bucks more, but what I do expect is a friendly, knowledgeable sales staff that can tell me about the product and show me how cool it is. I want them to show me the differences in the makes and models so I can purchase the best one that fits my music style and usage. I think most people probably don't mind paying a little extra if they can play with the product, and converse with an educated person at the store so they can make a more educated buying decision. 

I walked in the store and there were at least 4 sales people on the floor, a couple playing guitars talking about their next gig, the other two chatting behind the counter. I walked around the store for about 15 minutes and not one of them even recognized I was in the store! I don’t know if they realize this or not, but potential customers are not interested in an employee sideshow. They don’t care how good they are at playing guitar or what song they are going to play at their next gig. What we do want is a friendly, personable, knowledgeable sale adviser to show us the products and help us make an educated decision on buying an amp, or a guitar for example. In my eyes, the only time any of their employees should be playing an instrument is to learn about it, or demonstrate something about a product to a customer. 

I find similar situations at other stores. Best Buy for example, terrible service if you can find anyone. If you do find someone it is never their department. Their staff are not well trained and they know little about the products. I can usually learn more on the Internet than from one of their staff. The moral of the story is this. If many brick and mortar stores are going to survive the Amazon’s of the world, they are going to have to offer a high level of service "help" to do it. They are going to have to train their employees to a high level, and they are going to have to train their employees on more than just one area of expertise. Below is the email I sent after recently visiting the music store.

Hi, my name is Matt. I stopped by your store in Sarasota today to take a look at a Line6 Spider IV 75Watt 1x12 amp that I am interested in. I walked about your store for about 15 minutes and your entire staff sat around and played guitars and never once came over to show me how cool that amp was. I am in the sales business. Your potential customers do not care how good of a guitar player your sales staff are, they want a friendly person to stop over and show them how cool your products are. I like to support brick and mortar stores like yours when I can, even if it costs a few bucks more. But, I expect great service, not a sideshow of your staff noodling on their instruments talking about their next gig. I don't want to come across as a jerk, but the only way your brick and mortar stores are going to survive is to offer something Amazon, or your online store cannot, which is friendly, knowledgeable sales staff that can show me, the customer how cool your products are. Otherwise you'll end up being only a show room for Amazon or your online store. My advice is to make every sales person in that store learn about every product so they can greet customers in a friendly manner and show them your products in a friendly engaging manner. I know nothing more about that amp after visiting your store than what I read on the Internet, so I may as well buy it on the Internet. The only reason your staff should be playing any instruments is to learn how a product works, or to demonstrate something to a customer. Superior service is the only way many brick and mortar stores are going to survive.

Be More Productive: Build Your Own Standing Desk!

Sitting at your desk all day can be bad for you. It is also makes you lethargic. The answer? The standing desk workstation! I built my own about 6 months ago and I will never go back to a regular desk.

I used a nice piece of 2ft by 4ft Birch plywood for the top. I used 2x4s for the legs. Then I built the back computer monitor ledge with 1x4s sitting on top of pieces of 4x4s. The unit sits on top of my old desk, which gives me a nice accessible storage area underneath, as well as a niche for my PC to sit in next to it. Now I stand most of the time, but can sit for a bit to rest on my stool. It actually makes me more productive throughout the day standing most of the time, rather than sitting in my old office chair.

Once I had mine in place my CEO saw it and got his own standing desk, and he loves it. Others in the office are also considering having one. Take the standing desk challenge! You can put it together for about 25 bucks, and you will never do business the same way again.

Mom's 15 Minute Rule "Never Be Late!"

From my earliest years I can remember my mother telling me to never make people wait for you, and always be 15 minutes early. To this day, whether I have an appointment, I am going to work, or meeting someone I am always about 15 minutes early. My daily work hours are from 8:30 to 5:30. There is rarely a day where I have not been at the office at least 15 minutes early.

Why is the 15 minute rule important? It is important because you do not want to make someone wait on you! Everyone's time is valuable. When you arrive late you are implicitly telling the person you are meeting a couple of things. The first is, that they are not a priority. Try getting a job after you are late to an interview. Try keeping your job after coming in late every day. Good luck! Secondly you telling them that your time is more valuable than theirs. Not a good move when you are meeting with a potential client. When you are early you are telling the person you are meeting that you see value in them, and that your meeting with them is important to you.

Now you may ask, what can you do with all of that extra time? Great question. How about reading a good book that can help you in your line of work? Spend that time educating yourself. If you are meeting with someone why not use your fancy Android or iPhone for something other than playing a video game or chatting on Facebook with your friends? Read up on your client, or potential employer and make that 15 minutes a productive 15 minutes!

My mom's rule has helped many times over the course of my life and has played a role in making me successful. My advice is to apply mom's 15 minute rule to your life!

Keep Up With Technology To Stay In The Lead! What We Can Learn From BMW

As Bob Dylan sings, “The times they are a changin,” and so it is true for the business world. As technology advances, the way we conduct business changes, and for many in the business world, technology is leaving them behind! In order for a business to stay competitive in today’s marketplace, it must be able to keep up with and utilize the latest technology in its products, services and the way it operates.

BMW started out in 1916 as a small manufacturer of aero-engines. In 1922 they moved into motorcycle production and in 1928 they began their journey into car manufacturing. Over the course of 85 years they have grown and have now managed to move out in front and stay in the lead of car and motorcycle manufacturing with their stylish and innovative designs. They now manufacture their products at 28 sites in 13 countries on four continents! How are they managing to remain the world’s leader in the luxury car industry?

Their strategy is based upon four pillars which are: “Growth, Shaping the Future, Profitability and Access to Technologies and Customers.” For any company to remain a leader in their industry, they must grow in market share and in profitability. BMW has managed to do this by utilizing the latest technology at their disposal to improve their products, and connect with their potential clients in the luxury car market.

If you look at BMW cars over the past 85 years, there has obviously been advancements in technology, and the car industry, much like other industries must apply these advancements to their product in order to appeal to consumers. The same can be said for almost any company, whether you are selling cars, computers, software, telephone systems, or technical gadgets. Even many services are at risk of falling behind the times by avoiding new technology.

If we look at the development of BMW’s 3 series line of cars, they have been one of the most popular of their lines since 1977 when the first one rolled off of the production line. The series was launched as an advertised improvement to their 2002 series line. Over the course 37 years BMW has modified its beloved 3 series model by changing engines, body styles, interior layout, options, features, the suspension, etc. The company has managed to keep their product relevant for the times by being flexible and innovative. For example, would a 1984 BMW be competitive on the market today? The obvious answer is no. Yet many companies are trying to stay alive by selling their outdated products and using inefficient means of conducting business.

Although the BMW body styles have remained intriguing and eye catching over the years, the 1984 car would pale in overall comparison to any modern car. Can you imagine BMW trying to stay on the racing circuit with 30 year old technology? They would get hammered on the track. This same also goes for BMW marketing. If BMW did not have a well maintained website and well-connected company structure that allowed them to work efficiently and connect with potential clients, would they be the world’s leader in luxury cars? Case in point, you also have to run your business in the same fashion. If you don’t stay up with times in how your company operates and in the products and services you offer, you will not be a leader in your industry.

Here are a few points to ponder.

1. Website: Do you have an appealing, updated website for your company? Is it easy to navigate and does it compel you to act? If you look at BMW’s website, it has a clean easy to navigate interface that encourages you to explore their product models, and play with the configuration of the cars. It’s easy to make payments on it, it’s easy to navigate and find a dealer near you, and the personal portal has useful information on it. The site is also appealing to the eye with images that tend to capture your imagination, and make you want to put yourself behind the wheel of one of their cars. What about their cool tag line, “The Ultimate Driving Machine.” What is yours? Is your website outdated? How much useful information do you have on it? Does it compel your visitors to act?

2. Product Innovation: Do you offer the latest technological advances in your product market or service? Are you still offering old technology because you are comfortable with it and are afraid to change? Are you willing to take the time and make the effort to keep learning new technology to improve your product line? I have had two 328i BMWs, and the difference between my 2011 model and my 2013 model are substantial. It has a more sophisticated on board navigation package and more digital controls and apps on the user interface. The suspension has improvements and BMW now has an improved Efficient Dynamics package which reduces fuel consumption without sacrificing power. Notice how they market Efficient Dynamics: “BMW Efficient Dynamics stands for the noticeable reduction of consumption and emissions with a simultaneous increase in performance and driving pleasure. Intelligent energy management and lightweight construction as well as aerodynamics and engine efficiency measures mean sustainable mobility is already standard in every BMW.” How are clever are you in marketing your product or service?

3. Getting Connected: Are you using the latest accessible means to stay connected with your existing customers as well as increase your connections with new prospects? Are you the expert in your field who provides useful information to people, and do you use the latest social media to distribute it? Are you using the latest mobility applications to make your company, service and product more relevant? Do you give them a reason to stay connected with you? The key question is, are you to be found where your customers are looking for your product or service, and when they find you do you peak their interest?

While there are certainly more lessons to be learned from analyzing BMW’s success in the luxury car market, these few points are certainly food for thought. Are we really making an effort to learn and apply the latest and greatest technology to grow our businesses and put ourselves at the front of the pack?

Be a Leader in Today’s Competitive PBX Telecom Market!

Cross the Finish Line First: Be A Leader in VoIP Telecommunications Solutions!

There are many PBX companies in the telecommunications industry all competing for a limited market share. Many businesses are hanging on to their old phone system as long as they can, and those who have decided to invest in a new system are not quick to move. This equates to a much higher level of competition than ever before. What are some factors to consider when choosing a PBX product line to keep your business competitive? There are several elements to keep in mind to determine the overall value of a PBX manufacturer. Once you determine this and take on a new product, then you must also differentiate yourself on how you market your company and product. All three of these factors are inseparable in today's economy. 

1.       Price Point: Although only about 30% of businesses buy on price alone, having a lower price point on your equipment purchase does not necessarily have to equate to a rock bottom price to your buyer. Yes, you may want to have a very competitive price point so that you can come in under your competitor, but it is not absolutely necessary. Most importantly, you want the flexibility to have margins so you can make a profit. Your price no matter what it is must include high value. The lowest price with low value is worth little. 

2.       Quality and Loyalty: Having a competitive price will not get you far if you do not offer a quality product and service. Your equipment must be reliable, and your company must also be reliable. It no longer suffices to keep your customers “happy.” You have to keep them loyal, and that means you must earn their trust. One of the most important factors is equipment quality and personal service. Keeping in touch with your customers earns you loyalty. Don’t be an ‘install it and disappear’ kind of company. If problems arise be the hero. 

3.       Value in the Product: Overall value does not equate to always being the lowest price. Being able to offer more features and flexibility with your PBX is extremely important. In order to differentiate yourself from the competition, you should look for a VoIP phone system that is rich in features and does not require extra licensing for every feature the customer wants. A PBX with a large standard feature set out of the box is more valuable to a potential client than one you have to keep adding licensing costs, even if the PBX is cheaper on the front end. Watch out for those back end costs. You also want a product that is easily upgradable so that when the latest features and applications are developed, you can upgrade at a reasonable cost to obtain the latest and greatest.

4.       Premise Based and Cloud Based Platforms: Since many businesses are looking at running their communications solutions in the Cloud, it is wise to find a manufacturer that can give you the best of both worlds. While premise based systems are here to stay, it is imperative to be able to offer a Cloud solution to those companies that desire it. Look for a manufacturer that offers a robust VoIP PBX as well as a Cloud based solution. Ultimately, the Cloud based solution would be one that lets you retain control and direct contact with your customer. A hosted option in which you are only a reseller for a hosted company builds up their customer base, not yours!

5.       Customer Service: No PBX can fit the value mold without support from the manufacturer. Being able to contact personnel in the US who can actually help you with your challenges is extremely important. You must also receive the proper training to install the systems and maintain them. Does the manufacturer charge for tech support and training, or do they offer it as a value in the dealer partnership?

6.       You Are The Final Differentiatior: Once you have chosen your product line, it is now up to you! You must now make the effort to personalize the PBX solution to match the desires of your potential clients. Your company must be known for its commitment to helping customers obtain an efficient and well managed communications solution. Sales is not a part time job, it’s a fulltime commitment to introducing your company to as many people as you can as many ways as you can. Utilize every avenue available to you to communicate the expertise of your company. Use manufacturer brochures, videos and testimonials to build an effective website. Remember, when you meet a potential client they are buying you first! Once they buy you, then they will consider your value offering.

Meeting the requirements of these six key elements will have you well on the way to being a leader in today’s telecommunications industry.

 I am glad to help you with obtaining all six of these elements, and help you build a leading communications company.

   

Matthew Bellisario

941-306-2209

mattb@ipitomy.com

IPitomy HD VoIP Phones

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