Do You Remember, The Future?

Posted by Michael Reagan

on Wednesday, November 26, 2008

Here we are in the year 2015. I was feeling a bit nostalgic this week and was recalling the future as it was predicted in the 1989 film Back To The Future II. I actually enjoyed this film more so than the first and third in the trilogy. I loved the way it went back to the first film and interacted with it in a way that made it very enjoyable. It was also great to see the future depicted in a bright and fun way instead of the many post apocalyptic visions we have been subjected to. Was it a profit driven sequel? Sure, but when you come up with an incredible idea in Hollywood, you milk it for all it's worth! As I watched the film again recently, I took notice as to what technologies came to fruition and which ones died on the vine. Let's see if you remember the future?

#1- In 2015, Fax Machines Common Place In Homes - This one never had a chance. While the fax machine is still used extensively in business, less than 5% of US homes have fax machines in them.

#2- In 2015, Cars Can Fly Easily - I don't think we will ever see this in our lifetimes. While many an inventor tries to come up with the flying car concept can you image a sky filled with them? The constant raining debris field from all the accidents alone will keep this from becoming reality. Maybe in 2115?

#3- In 2015, Food Is Easily Re-Hydrated - While the technology exists, it's not the same as depicted in the film. In order to rehydrate a pizza you would need hours and a huge hydration device and let's just say the taste would not exactly be lip smacking good.

#4 - In 2015, 3-D Holography is Common - This is getting closer and closer by the day. With the advent of digital projectors we are already seeing this technology come to life. While it's not the Holodeck on Star Trek, the technology seen in the film will probably see the light of day before 2015.

#5 - In 2015, Paper Is Obsolete - While I don't think the printed word is going completely away, we have already seen printed media moving to a digital form. Imagine soon your morning paper being electronically delivered in the morning on your 1/4 inch thick tablet display. This is coming sooner than you think!

#6 - In 2015, You'll Pay By Thumbprint - This technology exists right now. However, many believe this is too intrusive into our privacy. Especially to those who would rather not have their partners know their whereabouts. Imagine your statement arriving and you not being able to claim your card was stolen and used at Lola's Erotic Massage.

So there you have it, just a sample of what what the future held for us in 2015 as seen through Robert Zemekis and Steven Spielberg's eyes. My only hope is our future 7 years from now is as bright and cheerful as it is portrayed in the film. Except, I don't condone abolishing all lawyers!

Keep Moving Forward!

Happy Birthday Mickey Mouse!

Posted by Michael Reagan

on Tuesday, November 18, 2008

Today, November 18th is Mickey Mouse's 80th birthday. The Walt Disney Company is not planning a huge celebration as it did for his 75th Anniversary. Just a simple ceremony at Disneyland today. Kind of a letdown for such an iconic character and for one of the worlds most recognized brands. Little did Walt know on that train trip to California after he lost his beloved Oswald The Lucky Rabbit character, he would be drawing the foundation of an entertainment empire that has touched and inspired billions. So I want to take a moment and wish Mickey Mouse a Happy Birthday. He has given me countless happy memories and fun. While not my favorite Disney character, (That's reserved for Donald Duck) he is my second favorite. Everyone can relate to Mickey through one way or another. He is the "every person" in all of us. We can all at one point or another look to this mouse for inspiration. While just the work of one man's imagination, what an imagination it was. As Eric Severeid reported on Walt Disney's passing. "He was an original, we will not see his like again." Perhaps, that's true. But everyone holds a spark to ignite their full potential, it's just how we continue to fuel the fire is what makes it explode into wonderful creativity. Happy Birthday Mickey, I hope you have many more...

Keep Moving Forward!

"I'm Not Going To Take It Anymore!"

Posted by Michael Reagan

on Thursday, November 13, 2008

Two weeks from tomorrow, all eyes will be on the nations retailers. The official kick-off to the Holiday shopping season begins the day after Thanksgiving. This year however will be unlike any Black Friday in history. Now for those not in the retail lingo know, The term "Black Friday" was coined by the retailers as the time of year when they make the majority of their profits. Now with everyone in a tail-spin over the economy, retailers are running scared and for good reason. When I started this post, it was going to be on all of the different things retailers do to get you to spend. However, mid-stream, I changed it up a bit.

To understand it all you have to look at the big picture here. While it's becoming the "in" thing to stay at home cocooning ourselves while watching the doom-mongers being prophetic on television about the end of the economic world, we are now not spending money, or charging anything. Everyone is terrified about the future. What we are in essence are doing is putting the equivalent of a monkey wrench into the economy. We are creating a trickle-down effect that will have major ramifications down the road. When you, and everyone else, stops spending money what keeps these companies going? Nothing. So what begins to happen? People start losing their jobs. Everyone from the cashier, to the delivery person, to every support person you can think of. Including, eventually. YOU!

Think about it, if everyone stopped spending money, how long do you think we can sustain our economy? What we are starting to create here folks is what I call a "vicious circle" we are cutting our own throats and we refuse to acknowledge it. You can't stop feeding your cow, then expect to have a bountiful steak later. It just doesn't work that way!

So what do you do? For starters, you can turn off the idiot box. I have seen the Dow rise and fall by triple digits so much in the last 30 days that a 300 point swing is becoming the new norm. I'm tired of the gang on CNBC extolling the virtues of socking it all away. So much so that I attune Suze Orman to nothing but 'White-Noise" now. I literally laughed myself off the chair when Jim Cramer on CNBC said that he was cutting back, and when he visited his favorite New York restaurant he skipped the appetizer to save money. "Puh-leaseee" The guy makes six figures a year (And Good For Him By The Way) and he's telling me he's cutting back?!!? These shows love the fact that people watch and cling to their every word! The news stations thrive on this as well. It was said to one news organization by it's producer, "We can't say enough about this crisis! Run it into the ground!! We need the ratings!"

Now I know people are scared. Heck, I'm self-employed. So by all accounts I should be a screaming maniac by now. But I'm not, I'm no longer going to let this consume me. Not anymore. To quote the late actor Peter Finch from the 1976 film "Network" "I'm As Mad As Hell And I'm Not Going To Take It Anymore!" So what did I do? I went to "Sears"! I spent $600 on a new snow blower that I wanted to clean the driveway off with so I don't break my back again. Oh, of course I could have just shoveled, then stuffed all that money under my bed and not spend it. But wait! I did something even more dirty... I charged it on my Sears card! NO!!!! How could I be so irresponsible?!!? How could I take advantage of that wonderful sale price of $100 off! How could I be so callous as to put it on a 12 Month No Interest Payment Plan! What am I, nuts?!!? Who am I to keep the Sears Holding Corporation in business another day?! I should be at home baking cookies and putting them in Tupperware boxes for Christmas gifts. Not spending money!!!

If I listened to the TV Spinsters I might as well be digging my own grave with my precious snow blower. Well to all of you, I say. "Whatever". What's the worst thing that could happen? I could lose everything. Yes, But you know what? That's what makes our country so great. You can start over. Walt Disney filed for bankruptcy on more than one occasion. If he can start over again then so can I. I work very hard for what I have, and while I'm not going to run down a busy highway with my eyes closed hoping not to get hit by a car, I will run down a busy street with my eyes open looking for potholes and steering clear from danger.

Be smart, but don't be so smart that it winds up costing you. Because remember, everything one way or another, trickles down and effects everyone.

Keep Moving Forward!

How To Save Circuit City

Posted by Michael Reagan

on Monday, November 10, 2008

Today, November 10th 2008 Circuit City Stores filed for Bankruptcy in US District Court. They listed over 1 billion dollars in liabilities and 100 million dollars in assets. It will be a difficult road ahead for the number two retailer in electronics. Plus, the major electronic manufacturers don't want them to go under either. That would leave less shelf space for their products. Many may think that Best Buy is wringing its hands now over the news, happy that Circuit City's days may be numbered. However, I don't agree. Best Buy doesn't necessarily want the pressure of being the last man standing. Especially since it could be them having the same problems.

So how do you fix this problem? What will more than likely happen is Circuit City will go about its business as though nothing has happened. However, you have a major PR problem on your hands now. You're going into your busiest time of the year with consumer confidence at all time lows. Now instead of hiding your head under the sand, here is what I would do to help save the company.

#1 - Talk to your customer - instead of acting like nothing has happened, retool your advertising to appeal to the American consumer. Tell them that a company that has been around for over 50 years risks going under and more more American jobs. Admit that mistakes were made in some of your past business decisions and we need your confidence in us to see us through this trying time. The American public is very forgiving and when you admit your mistakes in public, people will usually forgive you.

#2 - Freeze Executive Pay - Of course not popular if you're the executive. However, most of these individuals make substantial salaries and by freezing pay for a few months shows your consumer and employee that you mean business.

#3- Wage Reduction - Least popular option but if everyone took a 10-20% pay reduction you could possible save the company from closure. Better to have 20% less than have nothing at all.

#4 - Reduce Your Newspaper Inserts - Yes those busy weekly inserts look nice, but is anyone really reading them? Create more of an advertising presence on the web. That's where your consumer is price shopping. Not in the inserts every week. If you must advertise in the paper, then place ads steering them to your website for super deals.

#5 - Give The Best Darn Service You Can! - While this seems like a complete no-brainer you might be surprised. Gather your staff together and have the best "George Bailey" inspirational meeting you can create. If everyone, and I mean everyone, bent over backwards to every guest that comes in during the next 45 days you may definitely win friends and influence your customer.

Well there you have it. While not the definitive list, it certainly couldn't be any worse than what Circuit City's senior management comes up with. Another American company is in peril, are you going to let it happen? I won't. I will shop the city this holiday season!

Keep Moving Forward!

Going For Broke?

Posted by Michael Reagan

on Friday, November 7, 2008

1989. Steve Wynn opens the Mirage Resort and thus begins Las Vegas' next building boom. Its a run that will last almost 20 years before it starts to collapse on itself like a cheap face lift.

What happened? Much of it can be blamed on speculative ventures that wound up not paying off. But what happened to the town that has more Dolce & Gabbana stores than 7-11's?


When Vegas re-invented itself in the 1990's, it was trying to be more family friendly. Boomers were coming with their children and Vegas wanted them to stay. Many projects were built only to eventually fall by the wayside. One of the most grandiose projects was the MGM Grand Hotel and Theme Park. The idea was that Mom and Dad would spend time with the kids in the theme park during the day and gamble away the night. The theme park consisted of many disjointed lands and never really took off. Ten years would go by until Vegas thought that it was going after the wrong demographic. What they think they wanted was the "high roller".


Now I love Las Vegas, But not for the gambling, or the decadence, or even the people who walk around with less clothing on in public, than some wear to bed. I love Las Vegas from an engineering and service angle. I watch in awe the work that goes into designing and building these massive super structures which replicate areas of the world. I also love the service aspect that no matter what you want, from a 5 course meal, to an evening of company is just a phone call, and your wallet being made lighter away.

I have to say that the service here is often unmatched. it's rare when I have a bad experience in any of the properties. However what I find happening, besides a stifling economy that has slowed the action in the city to a crawl, is that has Las Vegas finally priced itself out of existence? When Las Vegas started going after the high roller crowd it seemed that building nightclubs in casinos was the way to go. Nightclubs started popping up like Starbucks locations all over the city. In fact, there are more nightclubs in Las Vegas per capita then any other city in the world. These places offer expensive table service for $500 a bottle liquor along with paying celebrity "C" Lister's to show up and look cool.
The problem is that many of the young "high-rollers" these places are trying to attract don't necessarily have the money to be there. So what you get is 20 to 30 year olds hanging out nursing one drink for hours on end looking for a quick pick-up, then hopefully back to the $39 per night room off the strip.
The problem doesn't stop there either, Las Vegas room rates went from an average per night of $79 in 2000 to over $150 per night in 2008. The food prices have also skyrocketed. Las Vegas used to be known as a very inexpensive place to eat. Not anymore. Several places I used to love to go to have also been placed out of reach of the average consumer. The Forum Shops at Cesar's Palace when it open in 1989 had many fun places to go with many affordable shops. However, in the quest to be "the" place to go for high rollers, they chased out the affordable and welcomed in the unaffordable to the average visitor. You know the kind of stores I mean. Where one sale usually takes care of the store expenses for the week.
So now in a struggling economy, where have all the high rollers gone? They're not going to Las Vegas. Everyday I receive emails from the resorts offering free nights, discounted rooms and other offers. The Bellagio Hotel, where on average would receive $250 a night for a Sunday - Thursday stay is now offering the same rooms for $150. Now that's still a lot of money, but at $100 cheaper, they're not trying to attract Diamond Jim Brady now. They want the average gambler back.
So now with the 9 billion dollar City Center project coming on-line at the end of this year, and many high-end condominiums sitting unsold. One has to begin to ask this question, Did Las Vegas go from one extreme to the other? Instead of appeasing one type of demographic, (The Average Family) they shifted completely to the other side and spent billions more doing it to appease to another, (The Mah-Ha Crowd). What needs to happen is a meeting in the middle now. I don't need a COACH bag store on every corner. Nor do I need a Versace store in every shopping center. Bring back a Las Vegas that appeals to both sides of the demographic, not one. You'll find they can co-habitat together with no problem. I want the fun part of Las Vegas back. Stop tearing down the theme that the hotels built that made it fun to go to. (i.e. Luxor with the fun Nile Boat Ride) and bring back a Vegas that everyone can afford!

Keep Moving Forward!

That's Not Our Policy!

Posted by Michael Reagan

on Thursday, November 6, 2008

Everywhere you look today you see another company placed on deathwatch because of the economy. I began to ponder this dilemma, and thought long and hard about it. In our "Self-Service Is The New Full Service" culture, we are allowing businesses to erode all that is left of customer service.

Case in point, I was shopping for a book to help me master Apple's Final Cut Pro software. I went on-line to research the best one and came across a copy that was available at Amazon for around $37.

Now I belong to the Amazon.com Prime Service which allows me 2 day shipping on all my Amazon.com purchases for only $79 per year. I was about to purchase the book then thought, I wonder if my local Barnes & Noble store would have the title? I went to the bn.com website and saw it available for around $39 if you were a member of The B&N Reader's Advantage Program which I was. It had a link to check for in-store availability and my local store had it. I figured for an extra $2 and a lovely drive with my wife it was worth it.

I sent a request to have the title held in store. This was supposed to save a call to the store to speak with an associate to hold the title. I was supposed to receive an e-mail confirmation in an hour that it was available. After several hours, and no e-mail I contacted the store.

The associate I spoke with said that she just got in and nobody had checked the in-box to see if any hold requests had come in. This was fine, mistakes happen. Soon a confirmation email arrived in my in-box that the book was being held. However, the price in the email was $54.99. Almost $20 more than the site.

I decided to print the page out on the site. I just wanted to make sure there wouldn't be an issue in case it was not marked on sale in the store the way it was on-line. I arrived at the store and proceeded to the check-out with a magazine I had also picked up there and my Reader's Advantage card.

The associate rang the title up and it came up $54.99. I explained that I saw it featured on the website for $39.59 and his comeback was "We don't match our web-site price" I explained that is all well and good, but nowhere on the site did it mention that prices may be higher in store.

I know this because I looked for it before I drove down. The associate immediately erected a wall higher than a stack of War & Peace novels and firmly stood behind them. I asked for a supervisor and he extolled "Fine, but they won't do it." This associate then made his second fatal customer service mistake. Never Challenge A Customer To A Duel, You'll always lose. A manager came up and in a very calm and friendly tone I explained the problem. I could have very easily ordered it on-line and avoided this whole confrontation, but I had a print-out from their company site and my member card which mind you is $25 a year to keep. She told me that it's cheaper on line because you have to pay for shipping and they have to pay someone to stock it here in the store. (She obviously didn't know that BN.com ships orders over $25 for free and I didn't know they paid $20 an hour to stock books.)

She stood behind the wall with her fellow associate and was going to stand her ground as well. I could have gotten angry and started to wail. However I explained to her that I am not trying to be difficult, I would have not even made the effort to come down here if I knew that I would have to fight for it. After more back and forth banter, she finally decided to take care of me. Of course she had to speak those lovely words "I will do it this one time, but don't ever expect it to happen again" Wow, I thought. Is this what customer service has come to in a struggling economy?

In my retail management days when this same problem arose, I taught my staff a creed that became our store Prime Directive. "You will never be disciplined for making a customer satisfied." I also informed my staff that whenever they called me to the front, you better have remembered our other directive, "A Guest May Not Always be Right, But They Are Still Our Guest."

I learned that statement from the book, "Be Our Guest" from Disney Press. I also knew from past experience, that you never allow a guest complaint to escalate outside the building. You will always lose. Now I am not a hard person to please. I just expect to "Receive What I Give" when it comes to guest service. All this Manager had to do is apologize for the confusion of the website, educate me on the policy, happily make an exception to the rule, and we both would have benefited from it. Instead, I am writing this today.

My advice to all who deal with others is this. Most of the time, making a guest happy in your business will go far beyond what the lowest price is. Sure, there are people out there that do nothing but shop price because that's all that's important to them. I and many others on the other hand shop service. Do I pay more sometimes, Sure! But not always. Another example of exemplary customer service is Harmon's Grocery Stores. Are they the least expensive grocer? Not by a long shot. But their service is so second to none that I love going in there. So when I see a retailer struggling with business, I think to myself, Would they be struggling as much if they treated all of their guests the way they should be treated? With respect and sincerity for coming into their Establishment?

Keep Moving Forward!

Been There, Done That

Posted by Michael Reagan

on Monday, November 3, 2008

Today was a rough day for many Circuit City store teams. It was announced today that Circuit City will close 155 stores in order to keep the company in business. If history repeats itself, and it usually does, the bell will soon toll for the remaining divisions and stores of the company. Circuit City was founded in 1949 as The Wards Company. For the next 60 years the company has seen its share of failure and fortune. Many are asking how did a company once more powerful than Best Buy fall so far. The answer, they worked hard at it.

Circuit City didn't get to this point overnight. Many believe that the decisions made by management over the last 10 years helped lead it to this point. It is thought that Circuit City's downfall began when they discontinued appliance sales back in the early 2000's. This was done at a point when the building boom in the United States was just beginning. They effectively gave up billions of dollars in sales because they felt they were not making enough in sales to justify carrying them.

In 2003 the company gave up on it's commissioned sales staff. The first of what would be nails in their coffin came in 2007 when they laid off over 3,400 employees. They felt were being over compensated for their position. This all leads up to today. 155 store teams lives turned upside down. I know what they are going through. It was almost 3 years ago that I was in the same predicament they are in now. I remember receiving an e-mail on the night of December 4th. It was for a manager's only conference call. On the morning of December 5th, I called in and was told that effective January 5th, I would no longer have a job.

I was in a state of shock. I couldn't believe that something I put 12 years of my life into, and had every intention of spending the rest of my working life doing, was now over. First it was shock, followed by anger, then finally disbelief. While it's very sad that another retailer is falling by the wayside, the American Consumer should really begin to take note. You see, slowly, but surely. we are losing places to go to find specialty items. I first took notice of this when Comp USA closed last year. Now all I have available to me when I want to purchase PC components is Best Buy, Office Supply Stores, or the Internet.

While everyone loves to go to Wal-Mart under the auspice of saving money, we are losing variety in this country. If Circuit City closes, where does that leave me to find electronics?
All I can say is that I wish the best for those 155 store teams. I know many of you feel like your world has come to an end. It hasn't. You will pull yourself together and find something else. I did that two years ago, I haven't regretted it since.

Keep Moving Forward!