Making Ripples: post-corporate adventures in Floyd County Virginia

Some companies still do not understand that customers talk about their experiences

I recently purchased some supplies from a company I have done business with for three years but after this experience I probably will never do business with them again.

They sent me an email promising a 10% discount if the purchase was made in the next three days. I made the purchase the next day and although the website said the 10% discount was being honored, it did not show up in the final charges.

I sent them this email:

I placed an order today after receiving an email with your 72 hour offer. The Order number was  #24452.  While I was putting the items in the cart, the site said that the discount would be shown later. When the order was completed, there was no discount shown.

That is very bad PR and is a definite "bait and switch" tactic.
I expect to see a correction to the total on my order to show the discount.

I received my PayPal charges later that day and the final price showed no discount and the shipping charges were not broken out.

I got this email back from the president of this company:

Our system does not allow us to show the discount in the shopping cart. As for "That is very bad PR and is a definite "bait and switch" tactic." We will apply the discount here when we enter your order. this is not a bait and switch tactic. We have been in business for over 100 years and I do not appreciate attacks of our credibility. You will receive the discount you expect.

I wrote:

Thanks for giving me the discount.Your credibility is suspect when the discount does not appear anywhere, even on the final order. Making customers wrong for questioning your order handling does not bolster your credibility either. All you have to do is to say that the discount will not ever appear until you get the final reckoning and customer expectations will be set properly.

The next day I received an additional PayPal charge instead of a credit for the missing discount. (He never gave me the discount)

This company president's credibility is no longer in question. He has proved beyond a doubt that he does not know what his company is doing. He has also proved that he does not pay attention to customer complaints.

What a pitiful excuse for non-performance: "We have been in business for over 100 years and I do not appreciate attacks of our credibility.

That sounds too much like what we hear from our elected representatives in Washington, DC and elsewhere.

Any company that does not listen to its customers is on a short route to oblivion because their marketplace is well-connected on the Internet and discusses poor treatment as well as good treatment.

Stellar One goes the extra distance

This is a drive-thru window at the Stellar One Bank in Floyd, Virginia. It has all of the characteristics you would expect in an up and coming bank that is trying to create an outstanding customer experience.

Take this window as an example: a friendly welcoming smile on the face of the young lady, clear signage that can be easily read under all lighting conditions, and a bowl of lollipops for the children who accompany their parents to the bank.

This is a standard action by businesses that treat customers as people rather than as anonymous sources of income.

The extra touch that makes this Stellar One branch stand out in my opinion is shown in this next image.

While you are banking, your dog gets a treat!

I have it on good authority that the dogs perk up immediately when their owner drives up to this window. With this thoughtful gesture the Stellar One branch in Floyd has turned a routine bank visit into a special event for the entire family.

This bank provides good service in all the ways that matter to us so providing treats for children and the family dog is is not the only reason to bank here. It is another example of choosing to provide extraordinary customer experiences.

Any business that recognizes the importance of children and pets in their customers lives is treating customers as whole individuals. Granting importance to all aspects of a customer's life practically guarantees good referrals and customer loyalty.

I don't know if all branches of Stellar One are this customer oriented, but if not it is something they should consider.

Life has been interfering with blogging again

In a down economy where income can drop drastically overnight, small business owners like myself have to go from production mode to full-on promotional activity.. All non-income generating activity gets put on hold. Blogging is an incredibly satisfying and rewarding experience, but it does not produce income in the short term so it gets relegated to non prime time activity or never.

Promotion is the only way that new business relationships are created and it can take many forms. There is only so much advertising that one can do with limited funds, but there is almost no limit to the amount of personal contact that can be accomplished if one is sufficiently motivated.

About two months ago I figured out that customers still wanted custom picture framing, but most of them needed to feel that they were getting an amazing deal as well as an extraordinary buying experience in order to part with their dwindling disposable income.

After all, that was what I was doing and is what my friends are doing for almost every purchase. We still want the good things in life and are willing to do with a more economical version, but it takes a really special deal from a business we like dealing with to justify spending money.

So, I have been making friends with potential customers and have been promoting ways for them to save money on picture framing for several months and this activity has finally begun to produce results.

As I've mentioned before, promoting a business follows the well known Law of Ketchup. You promote and promote and it seems like nothing is happening until finally people show up in bunches and you are suddenly racing around like a madman trying to stay ahead of the rush.

I am enjoying the flood of work, but it has temporarily put a halt to my blogging. Lots of interesting things are happening in Floyd and I will do my best to catch up on those that are most interesting.

I hope to be back blogging next week. Stay tuned.

Rule #1 in starting your own business - revised and updated

I have written so many articles about starting a business and striking off in new directions that I can't believe I failed to mention one of the most basic rules of them all when it comes to starting your own business. This actually applies to startups of any size.

Rule #1 - Lower your cost of living to the point where you can pay for rent and food doing outside work while you struggle to generate enough income with your new business.

If you live in a comfortable suburban house and you bailed out or were ejected from the corporate mothership, don't expect that you are going to develop a viable business in less than six months and a decent customer base in less than a year. Many people report that it takes two years or more to start generating decent cash flow.

During that time you will be laying out money for equipment and training and you will still have to pay the mortgage and all the other expenses for your lovely home. You will burn through your 401K and any savings faster than you can believe.

You need to completely restructure your living arrangements so that your cost of living can be covered during the startup period and for some time beyond.

This calls for a great deal of resolve and understanding by all members of the family. Life is not going to continue in the same old way.

Sell the Land Rover and the McMansion and look for a living and workspace that doesn't leak too badly that you can buy for cash or on terms that result in a mortgage payment of a few hundred dollars a month. Buy a used van or pickup truck or a used car for cash.

Put enough money away to live on for six months and rethink your identity. You are starting over and you are no longer a senior manager of anything. You need to get busy and learn your new trade in a big hurry.

Take classes at a good craft school. Learn the ropes by working as an apprentice if you can. If your significant other is not engaged in learning a craft, she or he should find work that provides enough income that your bank balance does not dwindle.

Make everyone part of the new solution. Ideally, your new venture should provide work for all members of the family, but if the teenagers aren't interested in helping with your new venture, they need to find employment and an educational path that fits your new circumstances.

You don't have to follow this advice of course, because you can always search for another corporate berth instead of risking everything on your own business acumen.

However, you will probably have to sell the house and the Land Rover anyway if you are over fifty because it may take you a year to find a new job and it will pay less than your last job.

This may sound unduly grim, but it has been done by tens of thousands of people and they have emerged from the experience stronger and more self reliant than ever before. The freedom that comes from managing your own destiny more than makes up for the temporary hardships of starting your own business.

Find any successful small business owner, craftsperson or artist and ask how they lived until they became successful and you will hear a story much like I have described here.

Talk to business owners who quit after a short, unsuccessful attempt at starting a career and you will find that they ran out of money before they could become self-supporting.

You will also find that their lifestyle had a lot of creature comforts that did nothing to advance their careers.

Whether this change in life is a forced decision or a free choice, changing your lifestyle and cutting your costs to the bone will give you the best chance of a successful transition.

If you have gotten this far, it has probably occurred to you that this same advice applies if you are embarking on a career in any new field.

Your lifestyle has to be leaner and meaner than you ever imagined if you are to succeed.

Wishing you the very best.

( I wrote the original post in August 2006 and am still encountering people who envision launching new businesses which will provide seamless continuity of their comfortable suburban lives. Get over it. Startups are the most exciting adventure I can conceive of, but they involve drastic changes to your lifestyle.)

I have written so many articles about starting a business and striking off in new directions that I can't believe I failed to mention one of the most basic rules of them all when it comes to starting your own business. This actually applies to startups of any size.

Rule #1 - Lower your cost of living to the point where you can pay for rent and food doing outside work while you struggle to generate enough income with your new business.

If you live in a comfortable suburban house and you bailed out or were ejected from the corporate mothership, don't expect that you are going to develop a viable business in less than six months and a decent customer base in less than a year. Many people report that it takes two years or more to start generating decent cash flow.

During that time you will be laying out money for equipment and training and you will still have to pay the mortgage and all the other expenses for your lovely home. You will burn through your 401K and any savings faster than you can believe.

You need to completely restructure your living arrangements so that your cost of living can be covered during the startup period and for some time beyond.

This calls for a great deal of resolve and understanding by all members of the family. Life is not going to continue in the same old way.

Sell the Land Rover and the McMansion and look for a living and workspace that doesn't leak too badly that you can buy for cash or on terms that result in a mortgage payment of a few hundred dollars a month. Buy a used van or pickup truck or a used car for cash.

Put enough money away to live on for six months and rethink your identity. You are starting over and you are no longer a senior manager of anything. You need to get busy and learn your new trade in a big hurry.

Take classes at a good craft school. Learn the ropes by working as an apprentice if you can. If your significant other is not engaged in learning a craft, she or he should find work that provides enough income that your bank balance does not dwindle.

Make everyone part of the new solution. Ideally, your new venture should provide work for all members of the family, but if the teenagers aren't interested in helping with your new venture, they need to find employment and an educational path that fits your new circumstances.

You don't have to follow this advice of course, because you can always search for another corporate berth instead of risking everything on your own business acumen.

However, you will probably have to sell the house and the Land Rover anyway if you are over fifty because it may take you a year to find a new job and it will pay less than your last job.

This may sound unduly grim, but it has been done by tens of thousands of people and they have emerged from the experience stronger and more self reliant than ever before. The freedom that comes from managing your own destiny more than makes up for the temporary hardships of starting your own business.

Find any successful small business owner, craftsperson or artist and ask how they lived until they became successful and you will hear a story much like I have described here.

Talk to business owners who quit after a short, unsuccessful attempt at starting a career and you will find that they ran out of money before they could become self-supporting.

You will also find that their lifestyle had a lot of creature comforts that did nothing to advance their careers.

Whether this change in life is a forced decision or a free choice, changing your lifestyle and cutting your costs to the bone will give you the best chance of a successful transition.

If you have gotten this far, it has probably occurred to you that this same advice applies if you are embarking on a career in any new field.

Your lifestyle has to be leaner and meaner than you ever imagined if you are to succeed.

Wishing you the very best.

( I wrote the original post in August 2006 and am still encountering people who envision launching new businesses which will provide seamless continuity of their comfortable suburban lives. Get over it. Startups are the most exciting adventure I can conceive of, but they involve drastic changes to your lifestyle.)

Time for another reality check

It seems like our political class is comfortably divorced from reality. Congress voted itself another raise this year, increased their expense budgets and are working hard to pull off a trifecta of bills that will raise taxes and energy costs while the economy crumbles around us.

Government is preoccupied with saving the world from computer model "disasters" like "poisonous" CO2 and Anthropogenic Global Warming, while ignoring the rising tide of real disasters like massive unemployment, a real recession, and an indecisively managed war in Afghanistan.

Taxpayer resistance is growing, but will not significantly reverse the process until the 2010 elections.

If there is to be an economic resurgence, it will probably start at the grassroots level with local actions attuned to local needs and resources.

I do not see that government bail outs have helped GM or Chrysler and do not expect that the balance of the Stimulus money will produce significant results either, as most of the money will be funnelled to patronage jobs or to support union activity.

Certainly some money will trickle down to worthwhile projects, but the percentage of taxpayer money that arrives where it s needed is a small fraction what was borrowed and will eventually be collected from the taxpayers in future generations.

There is a question that should be asked about any government project: How many real jobs will this program create?

Failing to understand that Government and State jobs are a burden on the economy is a classic mistake. They are an OVERHEAD expense. When your company is not doing well, you cut overhead first.

No company I have ever known has improved their operating basis during a crisis by adding more levels of management, yet our current administration is adding Czars and new government organizations every day.

I don't see that as a winning strategy.

( Photo credit: wrensongfarm.blogspot.com)

Business and Art make a good mix in Floyd

(This was originally written for the Floyd Press and appeared in the Thursday, September 24 issue.)

A number of local Floyd VA businesses display art by local artists on their walls. Are they just being public spirited or have they discovered a way to harness artistic talent for the benefit of their customers? It appears that their generosity is paying off in unexpected ways.

According to the business owners who display local art, it started with their desire to support local artists but it has become a vital benefit for their customers and staff as well.

These enlightened business include restaurants, financial advisors, health care professionals, and coffee shops which have adopted a business model where they provide free display space for local art and accept payment for art on behalf of the artists. They do not charge a commission for this service and the artists are responsible for recording the sale and paying taxes.

One of the recent additions to the ranks of art-supporting businesses is the Avellar, Stone, & Houston Financial Group whose offices are shown in the picture above. They have made almost a hundred feet of wall space available for displaying the work of local artists. The display space will include their lobby, the main hallways and their conference room. Currently, art has been hung in the lobby and one hallway with more to be hung in the coming week.

Gary Stone, Brecc Avellar and John Paul Houston (shown in the picture above) are enthusiastic supporters of local artists and invite visitors and tourists to come in and view the art on display. They are also planning to join the ranks of businesses that are open to visitors on First Fridays.

Floyd businesses have been supporting artists in this way for many years. The Barter Clinic, The Blackwater Loft, Oddfellas Cantina, Cafe del Sol, and Tuggles Gap Restaurant are among those that exhibit different local artists every month.

Customers make a point of looking at the art on display and often provide feedback on how much the art contributes to their enjoyment of doing business in such pleasant surroundings. Employees in several businesses mentioned their enjoyment of the artwork as well.

Employees of one business confided that customers are so used to seeing art that they will actually complain when there is no art on display. Fortunately this occurs only during the brief intervals between exhibits.

This continuing cooperation of business and artists has a positive effect on the viability of Floyd as a destination for potential settlers and cultural tourists. A town with one art gallery is not as desirable for a weekend visit as a town with multiple galleries and showplaces for local artists.

Art in Floyd is an integral part of local community life, not just a commodity that is sold only in our fine gift shops and galleries. People visiting Floyd get an unusual opportunity to immerse themselves in the local art and music community. It leaves them with a lasting and favorable impression.

Floyd's galleries also support local artists and have become a significant tourist attraction. The best known are the Bell Gallery and Garden, the art galleries at The Station on Locust, Over the Moon Gallery, Jeanie O'Neill's Gallery and the Jacksonville Center.

Whether you visit Floyd's art galleries or patronize the businesses which support local artists, you will have a chance to see the latest works by a growing number of local artists.

Done any bartering lately?

As the economy worsens, individuals and small businesses are turning to barter in steadily increasing numbers. The image above is from http://news.bbc.co.uk/2/hi/uk_news/england/norfolk/7560246.stm

Bartering has usually been done on a one to one basis or through barter exchanges that charged a fee. Now there are free online barter exchanges which are generating a lot of interest. Smarterbarter.com and favorpals.com are just two of these free online barter exchanges.

This 2008 article on Thomasnet still applies today.

Before there was money, credit cards and loans, people relied on bartering. Today, as tight credit conditions squeeze cash-strapped businesses, many businesses are rediscovering the benefits of small-biz bartering.

Bartering has come a long way since farmers and merchants gathered at bazaars to trade their harvest and wares. Nowadays, many modern businesses trade through barter exchanges online, though one-to-one bartering transactions still occur.

Small Biz Owners Revisiting Age-old Tradition: Bartering By Jorina Fontelera  

Bob Bagga, the President and Chief Executive Officer of BizXchange, has an interesting viewpoint on efficiency:

At its base, barter is an efficiency tool, which is why so many companies are now discovering it—everyone’s working to become more efficient to weather the storm.  People are discovering they can use barter to pay for a wide variety of products and services for which they are accustomed to writing checks, including advertising, capital expenditures, commodities and assets.  They’re also realizing that using barter helps bring in new cash-paying customers.

Unemployment and tight credit are spurring an increasing interest in barter. If you have skills or products that others might need, consider bartering them for goods and services you need.

As disposable income shrinks to the vanishing point, I found that barter is a welcome way to service customers who have been hit by the faltering economy.  I am bartering custom framing services every week for goods and services.

I am also bartering labor for firewood. I have more hardwood logs than I can burn this year. If someone wants to cut the logs into stove lengths, they can take half of what they cut. I have been doing this for a year now and it has worked out for all concerned. Since I have a log splitter and a chainsaw, one person can cut and split two truckloads of wood in a day. I keep one and they drive away with the other.

Barter has shortcomings like lack of portability and transparency, but these are being addressed through use of online barter exchanges. Some communities are also facilitating barter through "local currencies".

I plan to write other posts on the subject of barter. If you have any suggestions, please send them along.

Another look at Data Knight 365 / Power Direct Marketing

There is more to be seen at 4805 Pearl Rd in Cleveland Ohio, the headquarters location of Data Knight 365 aka Power Direct Marketing.

The building shown in my previous post seems to be part of a three building office complex. It is not an anonymous storefront as it originally appeared. Instead it is the kind of office complex that many small businesses occupy before they are large enough to build their own building.

This is the view from the front of the building:

 

And this is how it looks from a satellite:

 

So they may occupy a little or a lot of this three-building complex.

Here is another view, this time from across the parking lot in back of the building:

 

From this vantage point it could be any of a thousand small marketing companies scrambling for a piece of the market. It does not look like a company that runs data centers, but there may be more to their portfolio than is visible at this distance.

Having been personally involved in mergers and acquisitions, I would suggest a thorough investigation of this companies finances and enter into many discussions with their existing customers before announcing grand plans for building new buildings and investing $25,000,000 in Floyd.

The most troubling thing about this company is the lack of corporate and executive visibility on the Internet. Most marketing companies fill pages on a Google search. This one doesn't. Perhaps I am not searching on the right key words, but they do not seem to fit the profile of a successful data center/marketing company.

If anyone has direct experience with Power Direct Marketing or Data Knight 365, send me an email so I can fill in the gaps.

Those who are following this story should read Doug Thompson's latest article on the people involved in Data Knight 365.

Horizon Realty's self-made PR nightmare

When a customer complains about a moldy apartment to her 20 friends on Twitter, a rational response is to contact the customer and work out a solution.

Amanda Bonnen posted this on Twitter May 12:

"Who said sleeping in a moldy apartment was bad for you? Horizon realty thinks it's okay."

The apartment had suffered a leak and in these situations mold can occur. This is a common situation and it normally handled by fixing the problem before it escalates into a dispute.

Instead of resolving the problem, Horizon Group Management LLC filed a libel lawsuit against Amanda because of her Twitter post. Horizon seems to be stuck in the 20th century mindset where grumbling customers could be squashed like a bug by legal action.

After filing the $50,000 lawsuit for libel, a company spokesperson worsened the situation by saying, "We're a sue first, ask questions later kind of organization."

This was an inept PR handing of the situation and in Internet parlance this is called an "Epic Fail". If you Google "Horizon Realty Epic Fail" you will get this result:

   Results 1 - 10 of about 5,600 for Horizon Realty epic fail. (0.23 seconds)

Instead of 20 people commenting on Horizon's lack of customer service, there are now thousands of people who will warn others about Horizon. Ouch!

Horizon Realty has had their head handed to them and seems to have damaged their company reputation severely. They are also the butt of Internet humor, "Hello, I'd like to rent a moldy apartment."

Horizon's failure to recognize the validity of a customer complaint has made them very visible to potential renters as a litigious and unresponsive landlord. Will their attractive website serve to overcome this PR gaffe? Hard to tell.

What can be learned from this?

If you hear anyone complain about your product or service, it is an opportunity to improve what you are doing and to reestablish trust on the part of the customer.

Any action other than solving the problem is completely wrong. Attempting to shoot or sue the messenger alerts all and sundry that you have something to hide.

H/T Ace of Spades

United Breaks Guitars - a public relations nightmare

Customers who are mistreated can use the Internet and YouTube to make their unhappiness known. If they are as persuasive and entertaining as Dave Carroll, it can result in a viral campaign of enormous power.

United Airlines is discovering that their failure to handle a valid customer complaint has generated  extremely bad publicity which will cost them millions of dollars to repair.

United Airlines baggage handlers smashed Dave Carroll's Taylor guitar on a flight from Nebraska to Nova Scotia in the spring of 2008. Passengers actually saw them doing it and Dave set about getting the problem handled.

After nine months of being passed around from one employee to another, he was finally told that United would not compensate him for the damage, even though they acknowledged that it occurred.

Dave Carroll told the person who said no (a Ms. Irlweg) that he would write and produce three songs about his experience with United Airlines and make videos to be viewed online by anyone in the world.

The first video, United Breaks Guitars, went up on YouTube July 6 and has had 2,496,000 2,902,775 views. There are two more videos being released.

It is a brand new world out there. Customers with a valid complaint and a bit of talent can cancel out millions of dollars of public relations work in a few days.

Unhappy customers can bring their story to the court of public opinion and the company that fails to respond can lose market share overnight.

United is toast.

A search for United Breaks Guitars produces 19,100,000 mentions on Google

Dave Carroll and the Canadian country band, Sons of Maxwell, are doing fine. You can read the whole story on his website.