The Donald Cooper Corporation Newsletter
Volume 2, Issue 10 - October 2003
 Greetings !
If this is your first time receiving our Newsletter, "Welcome"!!
1. Everybody's looking for a "deal"...get used to it!
(time to read this article is about 2 minutes)
For a printable version of this article, click here.
This is the new reality...and it won't go away! Whether you're in the low end or the high end of the market, it doesn't matter. Everybody now expects a deal.
People will buy twice as many shoes as they really need...but only on sale.
People buying a $15,000 car want a deal and so do the people buying an $80,000 car. So, using this car example, one of the most important decisions that you must make as you define and position your business is whether you can have more fun and make more money selling $80,000 cars for $72,000 or $15,000 cars for $12,500.
How is it that everyone has come to expect a "deal"? It's simple! We've trained them...and we've trained them very well. Since virtually every industry and every service sector is in a crisis of over-capacity, companies have cut their prices to attract customers and keep busy.
Hyatt, one of the world's upscale hotel chains, has just launched a new website, hyatt.com with the slogan "Lowest price guarantee!". Not a "Best room guarantee!" or a "Best location guarantee!" or a "Best service guarantee!" but a "Lowest price guarantee!"
Not satisfied with 0% financing, a car dealer in Detroit is now offering to pay you $100 a month for three months, if you'll buy a car. And, of course, malls are full of stores pleading with us to buy their stuff at 70% off.
Rather than ask, "How much value do we need to deliver to get the price we need to get?" most businesses now ask, "How much do we have to cut our price to get the customers that we need to get?"
Then, the problem is that business can't survive selling at these discounted prices so they must resort to one of three unfortunate strategies, each of which ultimately destroys trust and drives customers away...
1) Reduce quality and/or service and hope that nobody notices. (But we do notice.)
2) Implement sneaky and annoying additional charges. (Have you rented a car lately?)
3) Resort to fake pricing and phony discounts to create the illusion of savings. (A Canadian retailer recently paid the government $1 million to settle a charge of deceptive pricing. They paid a $300,000 fine a few years earlier but apparently didn't get the message)
Have you resorted to any of these three negative strategies in the past few years?
So, what can you do in this new reality of "Deals, Deals, Deals"? Here's four thoughts...
1) Create world-class efficiency in every part of your business that allows you to be price competitive, service competitive and profitable... and do this without beating up on your staff.
2) Focus on creating the value that you need to deliver to get the price you need to get.
3) Tell the truth and build trust in everything you do.
4) Don't give your stuff away...you're killing your Brand.
2. Is the "currency crutch" being kicked out from under your business?
(time to read this article is about 2 minutes)
For a printable version of this article, click here.
The Canadian dollar recently hit 77¢ (US) and Canadian companies that have built a booming export business based on a 60¢ dollar are "crying the blues". Apparently a 23% currency subsidy just isn't enough for them!
Over the past 10 years, thousands of Canadian manufacturing and service companies have invested hundreds of millions of dollars to expand their operations to serve the American market based on a 60¢ dollar...and now they're panicking!
"Free trade" under the NAFTA agreement has been credited for much of Canada's economic growth over the past several years...but let's face it, our growth has come from a 60¢ dollar. It's rather pathetic, when you think about it, that we can only be competitive when we have what amounts to a 40% currency "subsidy". And how long did we think that we'd get away with that one?
As crushing as it may be to our collective national pride, what this really means is that Canada is the world's best "third world country"! Sorry...sometimes the truth hurts! But the beginning of wisdom is the recognition of reality.
Here's the lesson from all of this. Don't make large, long-term capital investments to take advantage of a short-term situation...especially when you personally have no control over the eventual demise of the advantage.
So now, with the currency crutch kicked out from under them, Canadian businesses need to be truly world-class in their innovation, their efficiency and their marketing...or they're in big, long-term trouble! Every Canadian business person needs to read Eli Goldratt's book "The Goal" ...and the sooner, the better! Then, to check out our brief and free article(s) on what "Value" really is and how to create it, click here.
For information on how our Keynote presentations or half-day interactive Seminars can help focus and energize everyone on your team to create, deliver and communicate world-class Value, contact our Director of Marketing, Sharen Skene.
3. Chuckles & Hugs...Beeethoven could help your bottom line!
(time to read this article is about 40 seconds)
Back in our March issue I told you about 10 year old Daniel McElmurray's Science Fair project that revealed that his father's 300 dairy cattle produced an additional 1000 pounds of milk daily when classical music was played in the barn.
In our never-ending search for fascinating research that could help you increase sales or productivity in your business, here's more good news about the power of classical music from British psychologist Dr. Adrian North.
Dr. North has determined that playing classical music in restaurants will induce customers to spend more, while bland music will have the opposite effect.
Apparently, classical music creates connotations of affluence and sophistication that put people in a spending mood. So, the next time your customers try to get you to cut your price, hum a little Beethoven and tell them not to be so cheap!
Stay tuned for next month's musical update on the influence of banjo music on convincing cousins to marry.
4. "Human Marketing" helps entrepreneur get $400,000 contract!
(time to read this article is about 45 seconds)
We love hearing about your successes using our insights and process of Human Marketing ...and here's the most dramatic success story from this month's feedback! Mr. Paris Fru, who attended our half-day Seminar in Victoria, British Columbia on Sept. 5th, reports the following...
"Donald, I can say, without exaggeration, that I learned more about marketing in 3 hours with you than I have in all my business experience! Using your 4 steps of Human Marketing, I recently submitted a proposal to a very important client and two days later had a signed contract for $400,000. Thank you for the opportunity to attend your wonderful, eye-opening Seminar."
The good news is that you can bring this same 3 hour Seminar to your business for just $80!
The very same Human Marketing Seminar and Implementation Guide that Mr. Fru found so powerful in growing his business are now available on Video CD or DVD. Or, if you prefer to listen in your car and skip the video part, it's also available as an Audio CD for only $60.
This is a tiny investment in "jump starting" you and your team to create compelling, customer-owning Value in your business! To order now for immediate shipment, simply visit our On-line Store .
5. Businesses don't die from a single shot to the head!
(time to read this article is about one minute)
For a printable version of this article, click here.
It's true...businesses do not die from a single shot to the head. They die, slowly but surely, from a thousand uncompleted tasks.
Here's how it happens. We ask our staff to do things but, all to often, they don't get around to it...or, they do eventually, but it's too late and the opportunity is missed. They procrastinate... and it's killing your business!
The solution is a simple 4-step process that will revolutionize your management style and your business...
1) Every time you assign a task, get agreement on a completion date. Ask the question, "By when can we agree that this will be completed?" Agree on a specific time (i.e. next Thursday at noon) based on the importance and complexity of the assignment.
Be reasonable and make sure that they have the information, resources and authority to successfully complete the assignment. Remember, we're trying to help people to succeed, not to fail.
2) Always document the agreed completion date and time...and always follow up. One of the biggest problems in business today is failure to hold people accountable for their commitments. The simplest way to do this is to write in your Weekly Planner (or Palm Pilot) the specific date and time when you will meet to review the outcome.
If it's a long-term project, meet at regular intervals (every 2 to 4 weeks) to review progress. This way, you know immediately if there's a problem and corrective action can be taken.
3) Reschedule completion dates when necessary because of new priorities or special circumstances...but never create "orphans". Always assign a new date and, once again, always follow up.
4) Reward performance and deal with non-performance!
Implement this simple 4-step process in your business and you'll be amazed at how much gets done!
6. Bits & Pieces:
(time to read this section one minute)
Here are two "Bit's & Pieces" gleaned from recent events that are worth thinking about for your business...
1) Krispy Kreme Doughnuts, one of the hottest "Brand building" stories of the past few years, has just made two major distribution moves that have me scratching my head about their "Brand Positioning" strategy.
In September, they announced an agreement to make their famous doughnuts available through Wal-Mart stores in North America. Wal-Mart, as you know, is the world's largest discounter, and this seems to make sense because, from my visits to Wal-Mart, I'd guess that a lot of their customers are already big fans of doughnuts.
But what really has me wondering about "Brand Positioning" is that on October 3rd Krispy Kreme opened their first retail outlet in the United Kingdom in Harrods...the world's most famous and most expensive department store. Harrods is so upscale and stuffy that, if you're not dressed up to their standards, they won't let you in.
Wal-Mart and Harrods...what are they thinking?
The thing for you to think about here is, "Are you clear and congruent in your Brand Positioning...or are you sending out confusing signals as to who you are and who your target customers are?"
2) Cross Pens, one of the world's most expensive makers of fine writing instruments has just announced that they're moving their production from Rhode Island, where they've been making pens since 1846, to China...with a loss of 300 jobs. These aren't 35¢ stick pens for Pete's sake. These are expensive pieces of jewelry with ink in them and they can't make money producing them in North America. What does this tell us?
But Japanese companies seem to be struggling too. Sony Corp, the world's largest consumer electronics company, has just announced that they'll trim 20,000 jobs over the next three years as part of a turnaround strategy designed to lift falling profits. The restructuring plan is designed to combat price competition from more cost-efficient rivals.
For you, the thing to think about here is what are the tough decisions that you must make to be a profitable market leader in the next 3 to 5 years?
7. Are you struggling to be a more effective Coach in your biz?
(time to read this article is about 90 seconds)
For a printable version of this article click here.
In our early business life, most of our success comes from our being great "players". We're great at selling, at engineering or making things...or at accounting. In fact, we're so good at "doing things" that our company grows, we add staff and now we have to coach and lead other people who do the "things"...and, sadly, the transition is often a disaster!
To effectively move from being a great player to being a great coach, two things need to happen...
1) First, learn the skills of coaching and leadership. Otherwise, you'll revert back to "doing" and drive your people crazy...and render them ineffective. For our free articles on this important subject, click here. My friend Jim Clemmer, one of the really bright guys on "Leadership", has excellent stuff on his website www.clemmer.net on effective coaching.
For more in-depth help, we've just taped a live 90 minute Seminar on "The Simple Truth About Effective Business Leadership" which will be available on DVD format for $60. Availability will be some time in December. If you'd like us to let you know when it's ready, just send us a quick email and give us your contact info.
2) Second, learn a whole new way of feeling good about yourself. Learn the incredible joy and fulfillment that comes from coaching others to do better and to be better. Coaches help and encourage others to create an extraordinary business and extraordinary lives...and, if there is a heaven, I'll bet you that there's an express lane for coaches!
Bonus Tip...get two hats!: If you're struggling with the difficult transition from being a great player to being a great coach, here's a tip that will be helpful. When I'm working with CEO's who are struggling with this problem, I give them two baseball caps to keep on the corner of their desk. One's embroidered with the word "PLAYER" and the other with the word "COACH".
I tell them, "Every time someone comes into your office, every time your phone rings and every time you go into a meeting, I want you to look at those two hats and ask yourself, 'Which of these two hats does this business need me to wear, right now?'. Not which hat you'd rather wear, or which hat you think is more comfortable...but which hat this business needs me to wear. Because, at that point, it isn't about you...it's about the business and about your people."
Now, here's the really neat part. When you have your two hats, call your team together, show them the hats and tell them that their purpose is to help you be a more effective coach. Then, tell them that whenever you seem to be "wearing" the wrong hat because you're "playing" when you should be "coaching", you give them permission to glance at the top of your head and say, "Hey boss, which hat are you wearing right now?" What this does is to empower your team to help you make one of the most important transitions in your business and your life.
Hey, we'll even supply you with the hats! We'll do a group order and send you the two embroidered caps for your desk. I don't have an exact price...but it'll be reasonable and it will save you the time of running around for hats. If you're interested, send us a quick email.
8. An opportunity of special interest to folks in the Toronto area:
(time to read this article is about 30 seconds)
Once again, I've been asked to join with six of Canada's top speakers to present a day of extraordinary business insights in support of Laura's Hope, a special research fund that accelerates clinical trials of promising treatments for Huntington's Disease.
One of Canada's most respected speakers has already lost one daughter, Laura, to Huntington's Disease and now his second daughter has started to show symptoms...and top speakers around the world have pledged their support. This Toronto event, on Monday, December 8th is part of this worldwide commitment.
This will be an extraordinary day of business-changing ideas and possibilities! For more information about the amazing speakers on the program, what they'll deliver and how to register, click here.
9. Goofy news item of the month..."Immigrants Sue Canada!"
(time to read this article is about 30 seconds)
As In case you missed this one...here it is. Selladurai Premakumaran, a native of Sri Lanka and his wife Nesamalar, from Malaysia, are suing the Canadian Government for lying to them about the availability of suitable jobs in this country. They're claiming damages for mental agony and financial loss.
In their statement of claim the couple alleges that since arriving here from the UK in 1998 they've not been able to find appropriate work. He's an accountant and she is a bookkeeper.
Things are so bad, they claim, that they've had to borrow money from their 15 year old son to pay the bills. Obviously, if your 15 year old son has money to help pay the bills, he's had more luck finding a job than you have. So, here's a tip guys...get some career advice from your kid!
10. That's it for this month!
"Thanks" for all of your 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.
If you know of others anywhere in the world who will find value in our "stuff", we'll appreciate your sending this along to them.
Have a great November!
Kindest regards,
Donald Cooper, MBA
Certified Speaking Professional
Preview a Video Clip of Donald in action!
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