About Donald - Topics & Titles - Back Issues of Newsletters & Free Articles - Contact Us

The Donald Cooper August Business Newsletter


Volume 5,  Issue 7 - August 2006

Donald’s “Quote of the Month”
 
“Just like winning in sports, generating a healthy bottom line in your business is a ‘game of inches’.  It’s about being just a little bit better than your competitors at a few important things.”  
 
Greetings! We have several excellent and thought-provoking articles for you this month...all of which will take about 7 minutes to read.
 
To view our Newsletter as a PDF version, click here. 
 

1.  Just like winning in sports, generating a healthy bottom line in your business is a 'game of inches'!

(time to read this article is about 2-1/2 minutes)

Printable version. 

In most sports, winning is about being a just little bit better than your opponent at the basics of the game.  It’s about blocking, tackling, back checking or hitting just a little bit better. It’s about winning a few more free throws or getting the ball deep into the corner of your opponent’s court. It’s about being a millisecond faster or being just a little bit stronger. Winning is a game of inches.

And so it is in business.  Generating a healthy bottom line is about being just a little bit better than your competitors at a few key things. It’s about selling just a little bit more.  Increasing sales by just 5% could grow your bottom line by 20% to 40%, depending on your gross margin. Turning your inventory just one more time each year could increase your profit by 25%.

In some industries, reducing energy or fuel costs is a key profitability factor.  Papa Johns, the world’s third largest pizza chain, worked with an oven manufacturer to develop a more efficient oven that will bake a pizza just two minutes faster but will save 25% on energy costs. 

Cathay Pacific, one of the world’s best airlines, stripped the paint off all their freight-only aircraft, except for the tails.  The 200 Kg weight reduction will save them $190,000 US per plane, per year.  Then, they cleverly renamed their fleet of freight aircraft “The Silver Bullets” to put a positive marketing spin on their innovation.

In other businesses reducing waste will have a major impact on profitability.  A pizza restaurant owner recently told me that she got tired of seeing carelessly spilled grated cheese on the floor near the “make line” (the area of the kitchen where the pizzas are assembled for baking) where the crew scoops big handfuls of loose cheese out of a bin and spread it on the pizzas…and, apparently, on the floor.

Cheese is the biggest expense in the pizza business and even a little waste will impact the bottom line severely.  So, my restaurant owner friend simply bought a few three foot square plastic tubs and three sizes of zip-lock bags (the ones with the actual slider for efficiency) from the dollar store and created a little portion control program where just the right amount of cheese for each size of pizza fits into the appropriate sized bag.  The bags are filled while being held over the large tub of grated cheese and any that falls, falls back into the tub. Filled and zipped bags of cheese are placed in plastic tubs on the “make line” where they’re quickly unzipped and the cheese neatly dispensed. Simple? Yes, but it immediately increased her bottom line by 25%!

So, are you winning the “game of inches” in your business…or are a lot of little things, not done well, eroding your profitability?  The solution is simple. Start a list of all the things that you can do just a little bit better to amaze your customers, grow the business and increase your bottom line. 

Get your staff involved.  Schedule a two hour “Winning is a game of inches” rally (call it anything but a “meeting”).   Use part or all of this article to create an invitation to the rally and to explain its purpose. Make it fun.  Go to the dollar store and get a bunch of little “prizes” for each idea that’s generated.  Then do something, improve something, fix what needs fixing.  Get the group’s commitment and assign specific responsibility to specific people.  Ultimately it’s about “who will do what, by when”.  Then follow up.  Remember, businesses do not die from a single shot to the head.  They die, slowly but surely, from a thousand uncompleted tasks.  Finally, celebrate and reward success and deal firmly with non-performance.     

 

2.  Are you just "satisfying" your customers...or are you "amazing, delighting and owning" them? 

(time to read this article is about 40 seconds)

Printable version.    

This summer Chrysler took what they thought was a bold and innovative step to move inventory. They introduced the auto industries first ever “If you’re not satisfied after 30 days, you get your money back.” guarantee.  I’m all for guarantees.  Properly done, they’re a very powerful marketing tool. But, sadly, this one falls way short.

On average, people seem to drive their cars for about five or six years nowadays.  So, by the time you get a new one it’s a big bloody deal. You’re excited to finally experience all the improvements, upgrades and new technologies introduced since you bought your last one. You’ve been waiting a long time for this day!
So, after all that, do you just want to be “satisfied” with your new buggy, or do you want to be delighted, amazed, thrilled and tickled pink? “Satisfied” is somewhere just slightly above “not satisfied” and far below delighted, amazed, thrilled and tickled pink.  “Satisfied” is not where emotional connection, brand loyalty and customer ownership take place.  “Satisfied” is where customers are not unhappy enough to return it, but not thrilled enough to buy another one.
Are you just striving for customer “satisfaction” in your business, or are you committed to delivering products, services and experiences that create customer ownership over the long haul? Specifically, what are you doing, every customer, every time to amaze and delight them? 

 


3.  "Bunches of Love"...the bottom-line power of connecting with your customers!  

(time to read this article is about 90 seconds)

Note: I wrote the article below a few years ago and had completely forgotten the story behind it.  Then, last month, my friend Jurek Leon, an Australian-based retail consultant, speaker and trainer, (www.terrifictrading.com) included it in his July Newsletter.  The message is still important and the story is still worth reading.  So here it is…

While walking through a shopping mall in Calgary, Alberta I came across a beautiful, but empty flower shop. Displayed just outside the doorway, in the mall aisle, were mixed bunches of fresh flowers, nicely wrapped and ready to go.  A great idea to encourage that 'impulse sale' and to attract new customers.
However, there was one small but significant problem.  I searched everywhere for a price but there was none to be found. No price on the flowers and no price sign on the display.  The information that I needed to make a buying decision was missing in action. 

I went inside, chatted with the proprietor for a short time and then asked her the price of the flowers.  “Oh, they're $9.00 a bunch", she said. "And how do they sell?" I enquired. "Not very well and I don't know why…they're a great price.", she  replied.

I asked her what business she's in. She looked at me as if I had two heads and said, "I sell flowers. Can't you see that?"  "Yes, I do." I said, "But that's not what business you're in. You're in the 'love' business. You’re in the business of helping other people express caring, joy, sorrow, support or celebration…and all of that is love. So, what those flowers need is a simple sign that says, ‘Bunches of love...only $9.00’ and I bet that you'll sell out every day!"

I asked her to humour me and give it a try. Then, I gave her my card and asked her to call me in a month with the results. She called to say that not only had her sales of those "Bunches of love" tripled but that she and her staff were now focused on doing everything in the store and treating every customer with a feeling of love.  Overall sales were already up 15% and the whole feel of the store had changed! There was energy, joy and laughter that was missing previously.
 
In any market, the business that becomes the dominant player will likely be the one that knows what business they're really in…and then makes it easy, uplifting and fun for customers to buy. So, how could you redefine your business by the emotional connection that what you sell makes with your target customers? And then, what will you do to be easier, more uplifting and more fun to do business with?

 

4.  Announcing our "new and improved 2-day Management Boot Camp!

(time to read this section is about 60 seconds)

After running a number on one-day management Boot Camps for business owners and their management teams, we’ve determined that one day to rethink, reinvent and transform a business is simply not enough time.  So, we’ve expanded the program to two intensive & productive days…but added only a little bit to the cost.

This new two-day management Boot Camp is available two ways…
 
a)
First, it’s available to individual companies where the two days are focused exclusively on their realities, challenges and opportunities.  In this format, there’s no limit to the number of managers that can attend along with the business owner or CEO.
b)
Second, the Boot Camp experience can be shared by 4 to 5 companies at a huge saving. While you don’t get my undivided attention for the two days, the results will still amaze and delight you.  In this scenario there is a limit of eight attendees from each business.
 
Here’s a quote from one CEO client…
“Donald’s management ‘Boot Camp’ has delivered the best take-away value of any program that we’ve attended. He delivers effective tools that will have a profound impact on any business.”
 
If your business is facing any of these challenges, my Management Boot Camp is definitely for you!
£ 
Increased competition for our customers’ loyalty, money, time and attention.
£ 
More demanding customers, stronger competition and shrinking margins.
£ 
We need to better understand our target customers…who they are, why they buy and what they really want.                                                                                                                        
£ 
We need to create and deliver compelling customer-owning Value that will “grab” our target customers, clearly differentiate us from our competitors and grow our bottom line.
£ 
Communicating our Value story more effectively in a marketplace suffering from increased competition, customer confusion and communication overload.
£ 
Finding, challenging, motivating and keeping top performers at every level of our organization.
£ 
Improving the focus, productivity and passion of our staff.  Creating a culture of commitment and accountability…and dealing more effectively with non-performance.
£ 
More effective and consistent implementation of our ideas, decisions and processes. 
£ 
Achieving true two-way communication throughout our organization in a way that improves service, efficiency, profitability and employee satisfaction.
£ 
Our industry and market are changing quickly. We need to redefine and/or reinvent some aspects of our business in order to be a profitable market leader in 3 to 5 years.
£ 
We need to clarify a clear purpose and direction for our business…and then, we need to focus and inspire our entire team to embrace and commit to that purpose.
 
For more information, including the cost on our transformational Management Boot Camp, click here or email the wonderful Sharen lady at sharen@donaldcooper.com.  

 

5.  Bits & Pieces:

(time to read this section is about 80 seconds)

Item #1:  The China Watch:  China’s growing world domination of the manufacturing sector is well known but it’s generally thought that it lags behind in the agricultural field.  However, I’ve just learned from a friend who deals in the huge international fruit juice market that China now supplies most of the world market for apple juice concentrate.  Apparently no other country can compete with them.  Does that sound familiar? So, for our readers in the agricultural business, don’t get too smug.


Item #2:  The effect of global warming may end up being much worse than first thought.   The melting of the carbon-rich Siberian permafrost will eject about 500 billion tons of carbon dioxide into the earth’s atmosphere during the next century.   By comparison, our atmosphere currently contains about 700 billion tons of greenhouse gases.


Item #3:  Three cheers for Marriott!  Starting in September all Marriott Corporation hotels in the USA and Canada will be 100% smoke-free. The new policy includes all guest rooms, restaurants, lounges, meeting rooms, public spaces and employee work areas.


Item #4:  Going to Orlando, Florida in the next while?  Restaurant consultant Bill Marvin recommends Le Coq au Vin as one of his favorite restaurants in the whole world.


Item #5:  Here’s a little reminder to check all of your brochures, labels and other written material to make sure that they don’t make you look stupid. 

We’ve just had a computer controlled in-ground watering system installed at our cottage so that we don’t spend half of every day dragging hoses around the property.  It’s one of the smartest things we ever invested in but when I sat down to read the instruction manual, right there on page one, I came across this absolutely stupid statement from the manufacturer…“You can be sure that you’ve chosen with confidence.”  Who writes this crap?


Item #6:  Last month we told you that Alex Tilley, inventor of the famous and enormously successful Tilley Hat, (www.tilley.com) has agreed to be our unofficial proof reader and word fixer.  Sadly, Alex was unavailable last month so the very Newsletter that announced him as our new “unofficial proof reader” contained a number of errors.  We apologize to Alex for jeopardizing his reputation as a world-class ‘wordsmith’.  


6.  Marketing is not supposed to be "smoke and mirrors"!

(time to read this article is about 35 seconds)

Printable version.

During a recent magazine interview I was asked an interesting question that goes right to the heart of what marketing is…and what it isn’t. To quote the interviewer, “I’ve heard it said that it’s all in the marketing of the ‘thing’, not about the ‘thing’ itself…how do you feel about that statement?”

I disagree strongly!  Marketing is not supposed to be a clever “smoke & mirrors” trick designed to fool people into buying products or services that simply don’t work.  In fact, marketing starts with the creation of something that delivers real functional, emotional and financial value. 

Simple definitions clarify any discussion, so here’s my simple definition of "marketing"…
 
“Marketing is anything that we do to increase the demand for and sales of what we sell.”
 
According to this definition, marketing would start with clearly defining and understanding our target customers and then creating products, services and experiences that truly work for them.

Then comes the creation of a clear brand promise, a brand personality and a brand message that will, in turn, guide all of our decisions on pricing, packaging, distribution (or ‘supply chain management’…take your pick), advertising, promotion and selling.

So, unless you’re intentionally trying to deceive or defraud your customers, marketing starts with creating the right “thing” and everything else follows from that.

 

7.  Our "Quiz of the Month":

(time to read this section is about 40 seconds)

"Thanks" to all of you who answered our July Quiz question which was, “What is Chile's largest industry?”  Choose from tourism, seafood, agriculture and copper mining.  The answer is copper mining.  
And the Bonus Question was:  What is the original but undesirable name of the now revered Chilean Sea Bass?  The answer is the Patagonian Toothfish.

Congratulations to Aden Wells of the Scotia Bank this month’s winner who selected as his prize our "Creating a Winning Culture" and "The 8 Essential Steps to Finding & Keeping the Best Staff" DVD Seminars.

  
This month’s Quiz: 
  
Canadians have a reputation for being polite but in a recent international survey of 35 major cities the best that any Canadian city did was to come in #3. 

This month’s Quiz Question is, “What city turned out to be the #1 most polite?”     
Bonus question: “Which Canadian city, at #3, was most polite in this survey?” 

Send your guess to Sharen Skene, our wonderful Director of Marketing, at sharen@donaldcooper.com.  Each correct answer received will go into the ‘pot’ and one winner will be randomly selected.  The winner will receive their choice of any of our excellent Video Seminars worth $60 to $80. 

BONUS:  If you also answer the bonus question correctly, you’ll get to pick two of our wonderful Video Seminars.  


8.  Where in the world is Donald? 

(time to read this section is about 40 seconds)

We share this info, not to brag, but to create opportunities for clients to save money by tying in with our existing bookings.  Since 85% of my work is repeat and referral business clients often want to know if I shall be in their “neighbourhood” in the next few months.  If you'd like to chat about travel-sharing opportunities, simply contact Sharen at sharen@donaldcooper.com to look at dates.

September, 2006:
1) Sept 13th - I am speaking just south of Calgary, AB.
 
2)  Sept 14 - I am speaking in Vancouver, BC.   This is a public seminar.   To find out more or to register for this event, visit the Vancouver Board of Trade website or click here.
 
3) Sept 15-17 - I am in Whistler, BC.
 
4)  Various other dates in September - I’m speaking in the Toronto, Southern Ontario area.


October, 2006:
1) In early October I’ll be in London, Ontario.
 
2)  Oct. 6th - I'll be in Ottawa.

3) Oct. 16th - I’ll be speaking in Gravenhurst , ON  for Small Business Day in Muskoka.  This is a public seminar.  To find out more or to register for this event contact the Gravenhurst Chamber of Commerce at 705-687-4432.

4) Throughout the middle of October I’ll be doing a speaking tour of Atlantic Canada.

5) October 27th finds me in Edmonton, Alberta.

 

December, 2006:
1) In early December I’ll be back in Vancouver, BC.
 

March,  2007:
1) I shall be speaking and coaching in Australia and New Zealand for most of the month of March, 2007.  This is an excellent opportunity for clients and “fans” in that wonderful part of the world to tie in on a cost-friendly basis.

 


9.  Chuckles & Hugs:

(time to read this section is about 40 seconds)

Here are seven cute “quotes from the 1950s”, sent along by one of our readers.  For those of you old enough to remember, see how many sound familiar. And, for those who weren’t around in the 50s, you’ll get a real kick out of the perspective that they provide.

1.
"If things keep going the way they are, it's going to be impossible to buy a week's groceries for $20."
2.
"When I first started driving, who would have thought gas would someday cost 29 cents a gallon. Guess we'd be better off leaving the car in the garage."
3.
"I'm afraid to send my kids to the movies any more. Ever since they let Clark Gable get away with saying 'damn' in 'Gone With The Wind,' it seems every new movie has either ‘hell’ or ‘damn’ in it.”                     
4.
"Did you see where some baseball player just signed a contract for $75,000 a year just to play ball? It wouldn't surprise me if someday they'll be making more than the president."
5.
"It's too bad things are so tough nowadays. I see where a few married women are having to work to make ends meet."
6.
"Marriage doesn't mean a thing any more; those Hollywood stars seem to be getting divorced at the drop of a hat."
7.
"I'm just afraid that the Volkswagen car is going to open the door to a whole lot of foreign imports."
 
 

10. That’s all for this month!



"Thanks" for all of your great feedback and suggestions!  We especially love to hear of your successes using our insights.
 
Don't forget to visit our Free Articles section on our website for lots more valuable info on how to sell more, manage smarter and make more money in your business.
 
Also, let us know what you'd like to hear more about...or less about.  And, do send us your stories and examples of great, horrible or just plain bizarre business practices that you find in your travels.
 
Finally, if you know of others, anywhere in the world, who will find value in this E-Newsletter, we'll appreciate your sending this along to them and inviting them to sign up at www.donaldcooper.com.
 
Kindest regards!! 
Donald Cooper,  MBA
Canadian Speaking Professional
Member of the Canadian Speaking Hall of Fame

For information about booking Donald for your company or Association, contact Sharen Skene our wonderful Director of Marketing at Sharen@donaldcooper.com.

If this Newsletter has been forwarded to you from a friend or business colleague and you'd like to continue receiving our free business Newsletter, please click here: subscribe.

To unsubscribe to this newsletter, simply click here: unsubscribe

Back Issues of our Newsletters are available on our website (along with lots of other valuable articles and implementation tools). 

 
 

THE DONALD COOPER CORPORATION
1 Palace Pier Court, Suite 3406, Toronto, ON, M8V 3W9 Canada Website:  www.donaldcooper.com     Email: sharen@donaldcooper.com 

Tel: 1+(416) 252-3704      Fax: 1+(416) 252-3705