Hi-Tech Features

R.I.P. Circuit City 1949-2009

2009-01-16T20:57:00.007-07:00

We'll look back on today and remember when a retailing giant fell to it's knees. It was announced today that Circuit City would cease operations and hand over control of it's stores to liquidators. 567 stores will be closed by March 31st 2009 and over 34,000 Circuit City associates will be left jobless.

It doesn't really matter anymore how they got themselves into this predicament. It's over now. I have to say that I know exactly what these associates are going through. I was laid off from a retailing company 3 years ago after going through a liquidation sale.

If you have never been through a liquidation sale consider yourself lucky. The liquidation company sends a representative whose sole purpose is to make as much money in the least amount of time as possible. The liquidation company essentially owns the assets of the company as they purchased it for roughly pennies on the dollar. The liquidator goes through the building placing integrity seals on all the fire doors and dock doors to make sure employees are not stealing anything from the store. During these times store shrink can skyrocket from disgruntled employees. They will usually conduct a store inventory of all assets and thus begin the liquidation of the building.

Sometimes you get a good person in charge of the liquidation who understands what the associates are going through. Employees are in shock and disbelief as their world is being turned upside down. At other times, you can get someone who simply doesn't care. They are there to do a job and be done with it, and the associates. When I worked for Media Play several years ago and we began liquidation, my staff and I did something our liquidator said he has never seen before. "We Went Down With The Ship, With Class" We continued to operate the store as best we could under the circumstances. However the longer a liquidation sale progresses, the harder it becomes to go on. A liquidator once said to me, "As The Discounts Go Up, The I.Q.'s Of The Customers Go Down." He was 100% right. Many a times we would get patrons screaming at us because we couldn't accept their returns on merchandise or we were trying to rip them off. One lovely exchange had a woman screaming at a poor 16 year old cashier of mine that couldn't accept her return. I tried to reason with the guest as she screamed at us to return her $19 DVD as if her very life depended on it. Finally, the liquidator came over and instructed her to leave. The last thing she said as she walked out of the door I will never forget. "I'm Glad You're All Losing Your Jobs!" I wonder as I type this if she has been effected by the economic downturn. I hope she never knows what it's like to lose something you worked so hard to build.

My favorite memory of my stores liquidation was when we were given a replacement liquidation supervisor because our supervisor fell ill and was hospitalized. We were counting a deposit and discovered through some system error that we were $400 over in cash for the day. This man created a dragnet in the store. He was convinced that a cashier had planned on stealing the money and they were staging it. I explained that the registers were acting horribly since we began liquidation because of the crazy discounts. He told me it was better to be $400 short in cash than $400 over! To this day, I still try to work the logic through on that one.

So I will end this post today by saying my heart goes out to the 34,000 Circuit City associates. I actually interviewed with them for a position 3 years ago. I wound up declining the job offer when they wanted to pay me $10,000 less a year than what I was currently making, and work a minimum of 50 hours per week. Today, I'm relieved I turned the position down or I would be repeating history today. Rest in Peace Circuit City, I used to enjoy shopping in your stores years ago before you began all of the cutbacks in service and other areas. I can't say your a complete victim of a bad economy, but you made yourself very sick before things started getting bad. At that point, there was no hope left.

I for one will not be picking over your cadaver. I deplore liquidation sales. I would rather remember you in a happier time and not on your deathbed.

Keep Moving Forward!

5 Things You Can Do Right Now To Improve Your Business!

2009-01-10T09:01:00.004-07:00

In my consulting company, we are often asked how firms can get immediate results in helping their retail operations or stores. The answer is there is no immediate quick-fix. However, there are things you can do to instill behaviors in your organization now that can begin to pay off almost immediately!

#1 – Position To Notice
Are you in a Position To Notice? What this means is are you there to help your customer? Many times managers and supervisors tend to work behind the scenes instead of being on the floor or in the trenches helping their team members. How fast can you be in front of a disgruntled customer? If it’s more than 1 minute, you’ve already lost the battle.

#2 – How Clean Is Your Location?
Walt Disney was instrumental in making sure that no one has to walk more than 20 paces to a trash can. You may think your customers don’t notice the burned out lights, the peeling paint or the dirty floors but you’re wrong. Too many times employees get used to their surroundings and tend to ignore the obvious. You should have a visual inspection of your location each day as if you were a customer. If it’s broken, burned-out, or dirty, FIX-IT!

#3 – Greeting and Open Ended Questions
How do you, or your associates welcome your customers? Is it “Hey” or “Welcome! What Can I Do For You Today!?” Don’t ask “How Are You Doing?” That is a close-ended question that results in a one word response from your customer usually using the word “Fine”. This is the same with the oldie ‘Can I Help You Find Something?”. That one usually results in “No, Just Looking”. Re-phrase it to what the customer or guest is looking at. For example, they are in a toaster aisle. The associate would phrase the greeting/statement to “This toaster will toast everything from bagels to bread. Let me show you!” This is an open-ended statement that makes the customer interact. You can then assess their needs and begin a friendly interaction.

#4 – Add-On!
Many times we sell just the one item and we don’t offer additional items to compliment the purchase. When a customer is making a purchase, what else can you suggest as an add-on? If a customer isn’t offered a suggestion they will purchase one item over 90% of the time. However if a suggestion is made, that percentage decreases to less than 30%! Think of the additional revenue!

#5 – What You Sell Has Value!
With the current economic conditions, many times we think we need to mark everything down to try to sell it. This results in eroded margins and less money coming in. There’s nothing wrong with offering occasional promotions, but don’t get sucked into marking everything down all the time. You begin to run the risk of de-valuing your products! If your widget is worth $29 then stand behind it and sell the value of it! If you mark it down to $19 then it may begin to be perceived as cheap and not of value!
While these are not the end all, be all to every business. You will be surprised how you can instill these behaviors into your location and begin to see almost immediate results!

For additional assistance in your business contact me directly! I have over 20 years of out-of-the-box retail thinking to make your business flourish!

Keep Moving Forward!

The Next Format?

2009-01-04T07:18:00.005-07:00

At this weeks consumer electronics show Toshiba will introduce a new way to own movies. On SD Memory cards. Now if you read some of the blogosphere, many are laughably writing this off. I say don't laugh so fast. If you having been reading the writing on the wall, we are moving to a solid state future. Take a look at the current netbook craze. The majority of these mini PCs are powered by solid-state hard drives. What this means is no moving parts. In fact, if you look ahead, in roughly five years or less the hard drive in PC's as we know today will cease to exist. The fact that there will no longer be a need for moving parts in a PC or other devices will mean longer life and possibly more secure ways to store data. However, for the time being, the largest SSD-HD can only hold up to 512GB of data. The cost is also still prohibitive.

However, storing movies on SD cards can offer a new way to own and collect films. Remember our huge VHS collections of the 80's and 90's? The amount of shelf space needed was staggering. Then in the late 90's DVD came on board and cut that storage space in half. That's nothing to speak of the improvement in picture quality. In the past few years, downloading movies from the likes of iTunes and what-not have become mildly popular. I have always been a huge proponent of disc media simply due to the fact of having a hard copy in case of hard drive failure. Putting films on SD cards though gives you a way to not only have huge collection, but have a back-up as well.

Toshiba through a partnership with NCR, is creating download kiosks that will enable you to purchase films that can be written to yours, or a purchased card in moments. Imagine, for the first time we could have access to thousands of movies and programs that the studios would have otherwise not released on DVD due to the fact that it wouldn't be cost effective to print and replicate so many DVD's.

We would also be able to enjoy films in high-definition as well. SD slots which are already being placed into many HDTV's could act as a way to play them. Even if we had to purchase a separate player, they would be very small and inexpensive as well.

So while the jury is still out, I for one would welcome this new format and look forward to seeing what it's potential can be.

Keep Moving Forward!

Not Your Average Phone Company, Just Worse.

2009-01-01T09:58:00.009-07:00

Back in the summer of 2007, I wanted to add a second line in my home for my business. I first contacted my local phone company Qwest. I found that it was going to be more than what I really wanted to pay for a secondary line. So I checked into Vonage. Vonage is the broadband phone company that advertises low phone service for only $24.95 a month.

I decided to try it out and signed up. After all at only $24.95, it was less expensive than Qwest. However, I soon realized this was not going to be the case. Once you get signed up for Vonage, you still are charged all the taxes you basically get charged on your home line. So what was $24.95 became almost $32.00! This on top of service that wasn't very great. It wasn't horrible by any means, but it wasn't great either.

After subscribing for 18 months I then decided it wasn't worth continuing the service anymore. I went to the Vonage site to cancel service and that was an exercise in futility. You see, Vonage wants to make it as difficult as they can for you to cancel service. This was strike one. If a company is so proud of it's products and services, you don't have to hide how to cancel your service.

So after finally finding the number to call to disconnect, I was routed to one of my favorite places to talk with a customer service agent, INDIA! After getting the agent who I must say was friendly, I described my situation to her and that I wished to cancel. She at first attempted to try to persuade me to stay with offering a lower priced service package which I declined. At this point, she said she was sorry and would disconnect my service.

She further informed me that I would be charged a disconnect fee of $39.99. I was a bit taken back and said "Excuse Me?" She said this was standard procedure because I did not remain with Vonage for two years. I thought this was ridiculous and stated so. She said there was nothing that she could do and it was in the terms of service buried in legal speak. I became a bit enraged that for her simply clicking a mouse and disconnecting my service, I would be charged $40! At this point I wanted this conversation over. The agent though didn't understand my frustration and continued on about how great Vonage is and the many new things they have planned. I finally had to raise my voice and tell her that no matter what she says I am no longer interested in ever being a Vonage customer again. Why does a company create a policy that it knows will upset it's customers? I would be very curious to know what Vonage's re-subscribe rate is from cancelled service. I'm sure not very high.

So I ask, does Vonage have that many disconnects that it has to charge $40 an account to terminate service? I learned a valuable lesson that day. Don't spend $10 to save $1.

If I ever find that I need an additional phone line again, I will just call my local phone company. It will be easier and probably cheaper.

Keep Moving Forward!

Merry Christmas!

2008-12-25T03:27:00.007-07:00

Here we are on the 25th of December. Our nation and the world celebrate the most holy of days. As the year winds down there is much to reflect on. However, I can't remember a time that I wanted a year to end as badly as I do this one. In less than four weeks we will swear in a new President and hopefully our nation can start to move on.

I think back on some of our other economic troubles of the past and I have to wonder if we were not better off then than we are now. We have never had so many means to communicate as we do now. A few decades ago bad news didn't travel as fast. That's not to say that was a good thing. Or was it? We are inundated with bad news in every step of our days now. Would it be better to sometimes not know? I'm not saying stick your head in the sand, but all of the gloom talk is really getting out of hand with people.

Case in point, I was consulting with a client last week who sells portable heaters. They are a great product. An elderly woman called about them and she explained how cold she was and she was interested in purchasing one. The price for these are $449. They are more expensive than your standard big box store heater because it works so well. Anyways, she wanted info and was sold on the product until I told her the price. Now she didn't say it was too expensive mind you, she just said she didn't know if she should spend the money.

I explained they had a 12 month no interest finance program if she didin't have the money up front and she replied, Oh no, I don't need that. I have the money. It's just I shouldn't spend it because of the economy. Now here is an elderly women who has the means to purchase but because she is so freaked out by all the TV and other media she sees she decides not to purchase.

This is happening all over the country now. It doesn't take a rocket scientist to figure out if no one is spending people start losing jobs. So that's why I am hoping for a better tomorrow in 2009. A new administration with new ideas and fresh thinking can hopefully mix things up. Will he make mistakes? "Of Course!" But hopefully he will be able to offer our country a new path and new ideas.

With that I close with saying Happy Holidays. I hope you find hope and happiness in all you do in 2009.

Keep Moving Forward!

What Will You Celebrate?

2008-12-11T16:34:00.002-07:00

Just how cool is this?!?! It's amazing what can be done with technology!

This is why I just love Disney!

Try it out for yourself! Click Here!

As Loud As We Want To Be!

2008-12-08T20:51:00.004-07:00

Don't you love going to the theatre? The talking, the texting, the screaming Mimi's running up and down the aisles, It's a pistol! You want to complain, but what's the use? They just scream that their rights are being violated and they paid to be there as well. This is a problem that goes on everyday in theatres all over the world. Well, leave it to Wal-Mart to create a new ad campaign which is designed to appeal to all the Theater-Going "Joe Sixpacks" and "Mary Housecoats" out there that are looking to create indoor drive-ins within their double-wides with fancy new Blu-Ray Disc players this Holiday season.

Case in point, Wal-Mart's new Blu-Ray Disc commercial shows the prototypical family with two kids, a mother, and husband. They speak of all the merits of upgrading to Blu-Ray. They show footage from Hancock and other films and extol about how great it looks. What disturbed me the most in this commercial is the line the mother speaks when talking about when her family watches movies. She states "Now we can be as loud as we want!" What she's essentially saying is, Now we can behave like asses at home and not worry about being asked by the theater to leave. When I saw this commercial I cringed. It also re-enforced why I never shop at Wal-Mart. I'm just not their target demographic. I say this because at 4AM on Friday November 28th I was at home asleep, not trampling to death a poor Wal-Mart employee looking for $128 Blu-Ray Player so I could be "As Loud As I Want!"

Keep Moving Forward!

Do You Remember, The Future?

2008-11-26T08:28:00.011-07:00

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!

2008-11-18T08:39:00.004-07:00

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!"

2008-11-13T11:25:00.010-07:00

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

2008-11-10T14:45:00.009-07:00

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?

2008-11-07T21:37:00.014-07:00

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!

2008-11-06T07:36:00.010-07:00

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

2008-11-03T20:16:00.004-07:00

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!

R.I.P. VHS VCR 1975 - 2008

2008-10-28T22:05:00.006-06:00

It was bound to happen. This week, JVC the creator of the VHS video format, annouced that it was ceasing production of its stand-alone manufactured VHS VCR's this month. JVC was the last man standing in the production of stand-alone VHS machines; as other manufacturers ceased production of stand-alone machines long ago. What this means is that going forward, in order to play any of your old VHS tape collection you will need to purchase a combo DVD-VHS machine. The VHS VCR first came into our homes in 1975. The first machines were priced at over $2000 each.

I remember when my dad brought home our first VHS VCR. It was 1981 and it was a JCPenney branded model. It was a top loading machine with a wired remote control. Blockbuster was still years away and there was only two places in my neighborhood to rent movies. The first was a video store owned by a group of partners called "Movieland". Back then it was $25 to "join" the club and then you would pay $3 per night for a movie. It was $4 on Saturday because you had it for two days. The other location was FotoMat. for those who never heard of FotoMat it used to be little kiosks in parking lots that you would drop off your film to be developed. They began renting movies in 1980 with huge success. It was said that because of the millions made in video rentals, it kept the company afloat longer than it would have without them. There was no sell-through business to speak of back then as the suggested list price of VHS movies were around $80 to $100 each.

Of course we were very popular on our block, as we watched hundreds of movies over the next few years with many friends and neighbors.

I could go on and on about the video industry. I grew up with, and worked in it for many years. For now, we must say goodbye to an old friend whose time has passed. Over 900 million VHS VCR's were manufactured. 50 million of those by JVC alone.

So the next time your stand-alone VCR goes on the fritz know that you will only be able to replace it with a combo unit. Farewell VHS VCR, it was one incredible ride.

Genius? Maybe. Helpful? No.

2008-10-24T01:00:00.006-06:00

Today I visited the Apple Store at The Gateway Shopping Center. I needed to see if my Apple iPhone could be repaired. Yesterday, the battery starting draining at an alarming rate. I thought at first it was a fluke, but today starting bringing the same problem. I called AT&T and spoke with Brent who was very helpful. A few minutes into the conversation Brent realized that I knew what I was talking about and set up an appointment to replace the phone.

I arrived at my appointment, and after a few moments I was working with Darrel. At least I believe his name was that, I couldn't tell because he was the only person in the store not wearing a name badge. I explained to him the issue and told him that nothing has changed in my usage patterns or installed apps in the last month. It just simply started to consume battery power quickly as of yesterday. He looks at the phone and says. "Yeah, you've got the Bluetooth on. That consumes a lot of battery" I explained, "Yes, I know. However as I stated nothing has changed on the phone in a month and the Bluetooth was on then." He looks at me again as if the iPhone is the first mobile phone I have owned since I bought the Brick Phone used in the 1985 film "Wall Street".

"This is a small computer that uses a lot of power." At this point I was getting agitated. The phone was defective, I had purchased Apple Care, (which is Apple's version of a extended warranty) and I just wanted it replaced. He then began to inform me that the battery isn't covered under Apple Care. He also took out his medical scope to see if it had water damage. "It didn't". After this I spent the next two minutes wondering if this "Genius" was going to help me. "Yeah, I will make a one time exception and replace your phone" His tone was so condescending it was making me feel like a moron.

This was not the service I was used to from an Apple Store. It was also not very high touch. This associate was going to prove to me that HE was in charge, and that HE was making an exception. Instead of consoling me for my trouble, and for having to come in and have the device replaced, HE was going to show me that he was calling the shots. At this point I decided its not worth the hassle and I let him strut his tail feathers.

Now think about this situation. Yes, he deals with broken phones, iPods, and Apple computers all day long and maybe he was just tired. However, his interaction will be what I always will remember when I go into that store again. I always tell my team members, "Think about how you like to be treated when you visit a store or restaurant. Now extend that same level of service to your next client or customer!

Keep Moving Forward!

Blue Skies Smiling At Me...

2008-10-23T09:16:00.007-06:00

Have you ever heard the term "Blue-Sky"? It's a term that Walt Disney coined when he would bring his Imagineering team together to come up with ideas for new projects. During this phase, money is no object, cost and size are unimportant. Walt Disney found these sessions invaluable to his business.

Recently, "The Blue Sky Cellar" was opened at Disneyland's California Adventure Theme Park. Now much has been said, and maligned about this park almost from the moment it opened. When it was originally conceived in the mid-nineties, there was many Blue-Sky ideas for it. However, the powers that be opted to go on the "cheap" and this park opened with few attractions. In fact, many of the attractions that were in the park were called "Off The Shelf" rides. These are the type of attractions you would find in any two-bit amusement park. Well, the public didn't buy it, and California Adventure has been suffering for it ever since. So finally, it was announced last year that The Walt Disney Company would invest over one billion dollars to fix California Adventure. Now bear in mind, that when California Adventure was originally built, it cost a little over one billion dollars! This also included the construction of the Downtown Disney district, along with what has become the world's largest parking structure.

So almost eight years later, the company decided it was time for a change. They would finally fix this ailing park that the public never really connected to the way it did to it's older sibling across the esplanade. So hence, The Blue Sky Cellar opened in California Adventure to show off the many new and exciting things that are to come!

Now imagine if you had your own Blue Sky Cellar preview center? What would be in it? Too many of us, including myself, get caught up in the "here and now" and never take a moment to create a "Blue-Sky Cellar" of our own. Just take a moment and write down some of your own Blue Sky Cellar ideas. What would be that one thing you always wanted to do but never did?

What would you do if money or limitations didn't play into the equation?

Over a year ago, I took a chance on my own "Blue Sky Cellar" idea and started my own consulting company. While it's scary being self-employed, I have learned more in the last 18 months than I could have ever possibly imagined. I have a quote from Walt Disney that hangs on my wall that I read every morning when I wake up. it's also the last thing I look at when I go to bed. It's a very simple quote...

"Keep Moving Forward"

Go ahead, Right now. Create your own "Blue Sky Cellar"

Where Has All The Service Gone?

2008-10-21T20:24:00.004-06:00

When was the last time you called a company and were not greeted by a computer? Over the last five years, companies have spent millions of dollars in high tech voice recognition software systems so they don't have to speak to you. These systems are pretty sophisticated. They work well most of the time so long as you know what and how to say what you want. Don't try to hit the zero button for the operator anymore, They disabled that function long ago! The funny thing is, how many times have you jumped through the hoops, pressed all the buttons like a good caller, only to have to repeat all the information again to a live agent?

Companies have also spent millions in outsourcing their customer service call centers to India and other countries. It's funny, it's cheaper to call Internationally than it is to call another state now. Sure they speak "English", but have you ever tried to complete a tech support phone call when all the agent can keep saying to you is "Yes! Very Good Now! I am pleased to hear that!". After the 10th time, the statement begins to lose its sincerity and charms.

The same thing happens in retail stores or other companies. You ask to speak to a supervisor and you have to at times re-explain yourself over and over again until you get to the person that makes the decisions. What happens in all of these cases? FRUSTRATION!

Imagine what would happen if you made yourself accessible to your customer or your employees? When companies and managers grow, we begin a climb to the ranks of success. When this happens, many people and companies begin to shield themselves from the genuinue rank and file that got them there in the first place.In these tighter economic times, imagine how much more business you could keep, or get, if you were right there in the customers face, ready to solve the problem the moment an issue arose? You would impress that customer right away! Go a step further and imagine a company that you called, would have an operator answer the call, and immediately directed you to the department you needed! Sure, you might sit on hold a moment or two longer. But how nice would that feel to not have to repeat yourself to a voice recognition system over and over and over again. It would be like 1982 all over again. Have you ever thought, The more connected we become, The more disconnected we become from each other?

Trick Or Treat?

2008-10-20T19:21:00.002-06:00

For many years, I have always taken to the ritual of going to local area Haunted Houses or "Spook Alleys" as they are called in my area. For many years I have visited some very well done attractions. However, over the last several years the quality of these attractions have let's say fallen down the well. Several weeks ago I visited an attraction that I had heard of a few times but never went to. "The Castle Of Chaos" is located in South Salt Lake City, Utah and for reasons completely unknown to me, was voted one of the scariest attractions in the United States by The Travel Channel.

I went with several friends and after arriving at the location, the true chaos began. Their line queue was completely in disarray. Hundreds of people standing in line and many of them don't even know what line they were standing in. The inside attraction area didn't offer much hope either. Instead of building a suspenseful attraction that could be enjoyed by many family members, they construct a complicated mess of tight tunnels, pipes to crawl through, filthy walls and floors, and top it off with every cheap thrilled rubber cadaver gag you could find at a going out of business novelty shop.

Now I know what many are thinking. These things are not designed for people who have finished puberty. However, I saw many guests of all ages entering this disaster. What happened to the good old fashioned suspense and scare? I wish it would come back. I also just recently visited "The Haunted Village". This attraction is located among the many acres of "This Is The Place State Park". While last years village was a complete thrill and literally nailed it into the coffin at every turn, this year was not so fortunate. They removed many of the elements that made last year so successful.

What I am getting to with all of this, is businesses begin to disconnect with their clientele. Many companies will become complacent with the status quo and begin to settle for second best. They also do not take kindly to criticism. When I contacted the Castle Of Chaos I was completely ignored and blown off. However, that was not the case with the Haunted Village. They welcomed my remarks and responded in kind to them. They even admitted that my voice was not the only one that remarked at the changes and that this will help them do better next year.

It's important to remember that in your business, organization, or job, you learn how to deal with and correct problems when you receive guest or customer complaints. Now even though I didn't have the best of time at The Haunted Village do you think I will speak poorly about them? "No!" They made the attempt to correct the situation, and we both parted company satisfied. That won't be the same with the Castle Of Chaos. I wouldn't send business their way even if it were the last Haunted Attraction on earth!

Remember this lesson! It's far more expensive to attract new customers than it is to retain old ones.