Qcumberz Helps Mama’s Kitchen
With Special Sale
Having trouble attracting customers? Ray Smilor, president of the La Jolla-based business promotions group The Foundation for Enterprise Development, said there are three universal laws of entrepreneurial marketing.
The first law is, it is more important to be significantly different than a little bit better.
“Companies (try) to outdo competitors by being a little bit better rather than by being different. They try to add a little bit more memory to their chip, or make the monitor a little bit bigger, or run their programs a little faster. But this is a game emerging firms can’t win. Competitors can simply augment their memories, enhance their monitors and speed up their programs,” he said.
The same is true with goods and services. Retailers must try to think differently to succeed. Sam Walton made Wal-Mart a success by targeting smaller, rural communities and the then-big retailers believed to be unprofitable, Smilor said.
Thinking differently also means identifying with customers and learning what they worry about. Once retailers learn what stops buyers from purchasing, the products and services can be changed to address those concerns, he said.
Smilor cited Amazon.com, which promises safety so consumers don’t have to worry about using a credit card. Another example is the software company, Ashton-Tate, which called the first version of its product dBASE II, because “no one wants to buy the first of anything,” he said.
This also means focusing on the “intangibles” in addition to price or specifications. When combined with a traditional quality product, these intangibles , convenience, reliability, quality, upgradability and service , are powerful incentives to buy, Smilor said.
The second law is to remember customers don’t just buy a product or service. They buy trust, so that means entrepreneurs must follow through on their promises.
Customers have learned to trust FedEx because it delivered on its famed slogan that packages do indeed get there “absolutely, positively” overnight, Smilor said.
“A company’s reputation is its most treasured asset,” he said. “Research has shown people who have a good experience with a company will tell three others, while those with a bad experience will tell 10 others.”
The third law is customers are buying more than the product. Instead, they’re buying the whole experience, he said.
That means good customer service, Web sites that are easy to use, helpful people handling phone calls, and correcting mistakes fast and without question, Smilor said.
“Too often, entrepreneurs forget all the other expectations that customers have along with the product or service. Entrepreneurs attuned to the range of customer expectations surround their products and services with all the support, features, acts and information that add not only real value and utility but also comfort for their customers,” he said.
For more tips, visit the FED Web site at (www.fed.org) or call (858) 459-4662.
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I Remember Mama’s:
A local furniture store is helping Mama’s Kitchen, a nonprofit meal delivery service that provides food for AIDS victims.
Qcumberz, which specializes in “one-of-a-kind” collectibles and unique furniture, is donating 100 percent of the sale price of specially designated items at its San Diego store. Eligible items include vintage pillows, glassware, vintage ash trays from the 1950s and ’60s, and more, said Erika Link, spokeswoman for Mama’s Kitchen.
Items range in price from 75 cents to $25, she said.
“Mama’s Kitchen is pleased to partner with Qcumberz,” said Carolyn McFarlane, executive director of Mama’s Kitchen. “The proceeds of the Qcumberz program will help us to continue to provide services to those affected by AIDS.”
For information, call Mama’s Kitchen at (619) 233-MAMA.
New Clique Called CLAC:
A new lobbying voice for state businesses has set up shop in California.
Martyn Hopper, California director of the Washington, D.C.-based business advocacy group the National Federation of Independent Business, announced June 8 the NFIB has formed a group called the California Local Action Council.
The first local action council was established in Los Angeles. Others are planned throughout California, Hopper said.
The CLAC will conduct lobbying activities, organize group visits to lawmakers and media, and provide expert testimony to legislative committees.
In addition, it will work to raise money and campaign for pro-small-business candidates for state and federal office, he said.
“Small-business owners realize they can’t compete with the celebrity power of corporate executives, but they can make certain elected officials know they are greater in number, more influential in their communities, and increasingly active. (We) will work to harness that energy,” Hopper said.
Hopper pointed out about 90 percent of all businesses in the United States have fewer than 20 workers. Also, small businesses are more likely to employ women, younger workers, older workers, and welfare recipients, he said.
But as big as small business is, it is also fragile. When a small-business owner initially sets up shop, he will earn about $40,000 a year at the start. But then the reality of government regulation sets in.
The regulatory costs per employee for businesses with four employees or fewer averages $31,748. For companies with more than 500 employees, it is $16,241, Hopper said.
“A large corporation can absorb the cost by spreading it out over a greater pool of employees. Not so with a small business. Making bureaucrats and lawmakers aware of this is (our) most important educational mission,” he said.
Send small business-related items to Zion at lzion@sdbj.com, or call (858) 277-6359.
