Lessons From a Wise Friend

I was a volunteer ski patroller for a number of years.  We usually patrolled in a team of two.

One morning, Grandpa Willis and I teamed up for the day. Grandpa Willis wasn’t my grandpa or my kid’s grandpa, but he was a wonderfully, kind, and wise man who my kids called Grandpa Willis.

It had snowed about 12 inches of Cascade Crude overnight.  That thick wet snow that makes skiing a real chore.  I was, and am, a darned good skier, but I was having a heck of a time that morning.  As we stopped on the hill, I told Willis, “I’m having a heck of a time in this crude.”  Willis replied, “Ya, I just can’t get forward in this stuff.”

I thought, “Ya, I need to stay forward too,” and off I went, staying forward and skiing better.  A minute or two later I thought, “Look at him.  He’s not having any trouble skiing in this crude at all.  That was just his, very nice, way of telling me to get forward.”

If I had seen someone skiing like me, I’m sure I would have said, “You need to stay forward in the crap or it will eat you up.”

I’ve used Willis’ wonderful teaching technique many times over the years and think of him often.

Another similar technique is giving people the time, and maybe a nudge, to come up with great ideas for themselves rather than forcing implementation.  This is really effective in your Personal Development Interviews.

Here’s an example.  Johnny The Bagger is a story from the book, The Simple Truths of Service written by Ken Blanchard & Barbara Glanz.  Johnny is an autistic bagger at a grocery store who changes the entire culture of the store.

I introduced Johnny to our entire team here at American Retail Supply by giving each person their own copy of the book and asking them to read it on company time.

Now, I could have then had a company meeting after they read the book and asked each team member to come up with ideas to be Johnny.  I’m sure it would have been valuable.

But I thought it would be more valuable if I just gave them the book and let them do what they wanted.  Shortly, I had a number of people tell me about what they were going to do to be Johnny.

I’m guessing that by them coming up with what they were going to do, it had far more impact on them than me telling them to come up with something.

Now it’s time to combine this teaching idea with “Atta Boys”.  See Secret #32 in The Happy Customer Handbook.  When someone shares what they are doing to become “Johnny” share it with your entire team and watch other “Johnnys” appear.

You can get my hardcopy book (not an e-book), The Happy Customer Handbook, 59 Secrets to Creating Happy Customers Who Come Back Time and Time Again and Enthusiastically Tell Others About You at www.TheHappyCustomerHandbook.com.  Your cost is $2.97 and that includes shipping and handling.

Exposed!!! Owner of Company Named, “Best Business To Work For In Washington State” is a “Ruthless Manager

It was reported today that Keith Lee, the owner of American Retail Supply, which was named the Best Small Business to Work for in Washington State by Washington CEO Magazine is a Ruthless Manager.

How is that?  How can the owner of the company named “The Best Small Business to Work for in Washington State” now be revealed as the co-author of the New Edition of No B.S. Ruthless Management of People & Profits?

It was revealed today that Dan Kennedy, the author of numerous No B.S. books, chose Keith Lee as the co-author for his newest edition of No B.S. Ruthless Management of People & Profits.

Our intrepid reporter, Lois Lane, caught up with Mr. Lee as he was sneaking into his office today and asked him how he could head the Best Business to Work for in Washington State and be a Ruthless Manager.

Mr. Lee replied… “I don’t choose the names for Mr. Kennedy’s books, and Dan and I don’t agree on everything, but when it comes to managing a business and the people in it; we agree much more than we disagree.”

Keith pointed to page 14 in the No B.S. book where Dan Kennedy writes about business owners, “And one thing they all have in common: gripes, complaints, disappointments, frustrations, pain and agony with regard to their employees.  Much of this has to do with unreasonable expectations and a misunderstanding of the actual nature of employer-employee relationships.  Some of it lies squarely at the fault of the business owner for failing in one or more of the Three Requirements for Having Employees: Leadership, Management, Supervision.”

Mr. Lee continued, “While I don’t think the nature of the employer-employee relationship need be as adversarial as Dan, the expectations and the nature of the relationship needs to be addressed during the employees’ first day of employment.  With our DVD training business owners who use our Make-You-Happy Management System set those expectations during the first hour of employment.”

Mr. Lee agrees wholeheartedly with Mr. Kennedy’s statement that business owners failing in one or more of the Three Requirements for Having Employees is the cause of many of their headaches.

Mr. Lee says, “Business owners usually lead, manage and supervise as they were led, managed and supervised, or how they learned in business school; neither of which work very well.”

Performance Reviews Suck

Mr. Lee pointed to Performance Management.  Every business owner knows that they need a Performance Management System but the only type of system they know about is Performance Reviews and they know that Performance Reviews Suck.  With this the business owner continues with Performance Reviews knowing that they suck, or they stop them altogether, and are left with no Performance Management System.

Mr. Lee informed this reporter than Dan Kennedy agrees that Performance Reviews are “like looking in your rearview mirror to drive your car.”  Mr. Kennedy’s tells the story of how the late Mike Vance, who worked personally with Walt Disney on the original Disney University and other projects, laughed and scoffed at standardized annual or quarterly ‘performance reviews.”

Mr. Lee’s management system replaces Performance Reviews with Personal Development Interviews.

Mr. Lee went on to explain.  “Just listen to what they’re called.  Which would you rather give… a Performance Review or a Personal Development Interview?  Would you rather review someone’s performance, or develop someone?

What if you’re on the receiving end?  Would you like your performance reviewed or would you rather have someone work proactively to develop you?

Which do you think gets better results, developing people and coaching them or reviewing their performance after the fact?

Traditional management focuses on catching people doing things wrong.  If every time I do something wrong the boss catches me, but he doesn’t catch me when I do things right, my creativity is stymied and I stop using my creativity, stop stepping out front, and stop helping the organization grow by using my creativity.

Conversely, when we start catching people doing things right, we encourage empowerment.  People start to do things in the organization.  Productivity improves on an ongoing basis.  Improvement doesn’t just come from management but from the whole organization interacting with each other and picking each other up.  The organization is permeated with a motivating environment.

Another benefit of this type of management is you create a learning organization.  Researchers tell us that as we move forward, people are going to stay with organizations where they have an opportunity to grow and learn.  There are going to be many more skilled positions than there are people to fill them.  And if there are a lot of skilled positions and not enough people to fill them, money isn’t going to make the difference.  Money is going to be a given.  You’re going to have to pay in the competitive market to get good people.  But they want to work in a place where they can grow, where they can enjoy themselves, where they can use their creativity to help the organization grow, and that happens in a learning organization.  That’s exactly why my company, American Retail Supply was named the Best Company to Work for in Washington, by Washington CEO Magazine.”

You can get Keith’s hardcopy book (not an e-book), How to Control Your Business and your Life, Proven Secrets to Creating Highly Productive Teams at www.HowToControlYourBusiness.com.  Your cost is $2.97 and that includes shipping and handling.

Beating The Odds – Part 2

Beating The Odds – Part 2

We’re picking up our conversation on one of our great clients at American Retail Supply, McLendon’s Hardware, which has seven locations throughout the Seattle area.  To review part one, refer to the last blog post (Beating The Odds).

Competition Makes Them Better

I’ve done a lot of research over the years on how to compete with the national chains.  I’ve been sharing that information with my clients in my monthly newsletter for 21 years and my bi-weekly email retail tip since 2004.  In my research I found that those companies that survive and thrive look at the new competition as a challenge to get better themselves.  McLendon’s has done this also.

For years McLendon’s knew they should be looking into better automating their inventory and point-of-sale computer system.  When the retail giants came to town they made the investment in their future but also were sure to invest in new software that really helped them stay focused on their customers and not allowing the software to take away from their exceptional customer service.

Other areas in which McLendon feels the competition has made them better are display, advertising and pricing.  McLendon says, “We never really concentrated on end caps other than to put things on them.  Now we have a person in every store hire just to do that.”

McLendon’s realizes that with the big guys right down the street they need to be much more aware of price competition so they can be seen as having “good” prices.  Their advertising person consistently pushes to have “hot buys” in their ads.

What can you learn from the competition to make you better?

Variable Pricing Structure

McLendon refers to his variable pricing structure as A item, B item, C item pricing.  “A” items are very competitive, commodity items, that everyone uses and everyone knows the price.  McLendon knows his prices must be “good” on these items.  They don’t need to be the same or lower than the retail giants, but they need to be very close.  “B” and “C” items are not as competitively priced and the company can get better markups.  Sadly, too many independent retailers refuse to accept this type of pricing strategy.

Buy Right

McLendon’s, like many who compete well with the mass merchandisers, is a member of a buying group.  They buy a lot of their product though True Value.  With the exception of direct import items, McLendon feels their costs are in line with the retail giants.  But he believes the retail giants often get advertising allowances that he does not get.

Don’t Compete Directly With the Retail Giants

McLendon’s knows their niche-huge selection and great service.  In addition, McLendon’s now very carefully considers location as a niche when opening a new store.  When opening a new store McLendon asks, “Is it their market?”

The retail giants in the hardware business like to be near freeways and locations that attract large number of people.  McLendon’s looks for a niche that is not close to freeways, has a good population base, but isn’t a place that the retail giants are likely to put a store that requires a huge population to support.

This is huge.  How can you position your product and/or services to go where the competition ain’t?

Brand Names

A strategy retailers like to use to compete with the retail giants is to carry brands that the giants don’t carry.  In the past, McLendon’s tried to carry brands that the big guy didn’t carry.  With the number of competitors now in the market, and the huge popularity of a few brands in the hardware business, that strategy doesn’t really work.  As a whole, McLendon’s tends to carry quality brand products.

Hours of Operation

Historically hours of operation for McLendon’s shows the company’s long roots and reflect the work ethic in the community – early to bed, early to rise. The company has always opened early and closed early.  Today they’re finding they need to extend those hours.

Store used to close on Sundays.  Today, Sunday is the company’s second busiest day of the week.  McLendon’s stores used to close at 6:00 PM.  Now they close at 8:00.

Temporary Sales Decline

McLendon’s has found that retail giants moving into their market is a cause for concern and an opportunity to improve, but it is not a cause for panic.

Like retailers across the country, McLendon’s has found that stores sales drop somewhat when a retail giant opens a store close to McLendon’s.  but like many independents, McLendon finds that within nine months sales are back to where they were before and growing… maybe not growing as fast as they did before the big guys moved in, but growing.

You Can Thrive

Mike McLendon and McLendon’s Hardware have proven that yes, you can thrive in the shadow of the retail giants and compete with them, but not directly against them.  McLendon’s focuses on a broad product line, great customer service, and a niche location to not only survive, but thrive in the shadow of retail giants.

Discover more ways to improve your business by requesting one of my free books: How to Control Your Business and Your Life and The Happy Customer Handbook

by Keith Lee

Beating The Odds

No matter what business you’re in, you likely have competition from a discounter, national chain, huge franchise, or something along those lines.  Regardless of the competition or the industry we can all learn from those who survive and are thriving in the face of this competition.  This article is about one of those businesses who are beating the odds and what you can learn from them.

You might know that I own American Retail Supply (www.AmericanRetailSupply.com) We provide independent retailers with the things they need to run their stores – the bags they give you, displays, fixtures, marking equipment, point-of-sale computer system, etc.

Let me ask you a few questions. Think back 20 years, or even 10.  How many independent drug stores do you see now versus 20 years ago?  Pet stores?  Department Stores?  Office supply stores?  Hardware stores?  The list goes on and on, and the answer is the same:  NOT MANY.

In those 20 years, while the market has shrunk dramatically, our sales at American Retail Supply have grown more than 10 times.  But this month’s article is not about my business, it’s about one of our clients who has beaten the odds and huge competition from the “BIG GUYS” and not only survived, but thrived.

McLendon Hardware opened in 1926.  Today they have 7 stores and continue to grow while Home Depot and Lowes blanket the market area with new stores.  At the same time that the entry of these retail giants forced the biggest regional hardware chain into bankruptcy, McLendon’s continues to thrive and open new stores.

How do they do it?  How does McLendon’s Hardware continue to grow, survive, and thrive while the old leader in the market has gone bankrupt?  I interviewed the president of McLendon Hardware, Mike McLendon, a few years ago to find their secrets, and you can use these same secrets to thrive in your market place.  Throughout this article I’ll use italics to ask you questions about using the ideas previously discussed in your business.

Find a Niche and Fill It

McLendon’s niche hasn’t changed in 87 years… Their niche – SERVICE, SELECTION, and LOCATION.

McLendon says they see themselves as being more family oriented than their competition.  That makes sense coming from an 87 year-old family business.  McLendon says, “People come to a hardware store because they have a problem, and they want to be able to go home and fix the problem themselves.  And they want to be able to understand something about the problem.  That’s one of the reasons we stay in business.  People think we can help them with their problem, they get the solution, go home and fix it, and they’re happy.”

Seems kind of simple, right?  Give your niche what they want.  McLendon’s wide breadth of products and friendly, helpful staff, insures that customers go home with solutions that make them happy!

What makes you different?  As my mentor Dan Kennedy says, “Why should someone do business with you versus every other option in your business category?” 

I shop at McLendon’s Hardware.  Here are just a few examples of their selection and great service.

I had a chip in my bathroom sink that I wanted to repair.  I went to the national chain about a half mile from my house.  They had one color – white.  My sink is cream.  I drove 5 more miles to McLendon’s.  They had the exact color match and 50 other colors!

What do you offer that your clients can’t get from the competition?

I needed a Philips head screw driver bit for my power drill.  I went down to McLendon’s, and like always quickly found someone to help me.  She suggested a bit and then said, “Here, try this one also.  We just got them in.  You can have it for free.  Let me know what you think of it.” Are you kidding me?!?!

It really is the little things.  What can you do to surprise and delight your clients with the little things?

I traced a leak in my hot water tank to the flexible copper tubing water inlet hose.  I took the old hose to McLendon’s where again someone was ready to help me.  Instead of just handing me the hose and letting me go, the sales person took an extra 30 seconds to tell me exactly how to install the hose.  His information made the job much easier and the repair will last longer.

What information, education, expert advice can you give to you clients that your competition doesn’t?

I’ve learned my lesson.  I now drive right past the national chain and go a few more miles to McLendon every time.  For me, McLendon is right on the mark.  When I go to other hardware stores, because it’s convenient, I often leave discouraged.  When I go to McLendon’s I go home with the solution to my problem.  McLendon tells me he often hears customers saying, “I should have just come here in the first place.”

What can you do to create loyal customers who, even if more convenient, don’t even think about going somewhere else?

Finding Good People

With the national chains coming into town, finding and keeping god employees has become a bigger challenge.  The big guys can often afford to pay more.  But McLendon’s relies on great help to send customers home with solutions.  How do they do that?

McLendon’s attracts employees who want to be more than just a clerk.  Trades people are attracted to McLendon’s.  They have a tool guy who was a contractor and didn’t want to be a contractor anymore.  He likes his job, he likes the people, and he gets the regular hours he wanted.

A journeyman electrician hurt his back and couldn’t work as an electrician, so now he works at McLendon’s.

The new store manager at the Kent store started at McLendon’s when he was in high school.  McLendon finds that people may leave the company to go to work for a new competitor, but they often come back to McLendon’s.

What can you do to attract the kind of employees you want, and will give your customers Out-Nordstrom Nordstrom Customer Service, without having to pay premium wages?

There’s more to this article, but you’re going to have to wait until part 2 of this series next month when I reveal the six core strategies McLendon’s is using to not only survive in the shadow of the retail giants, but thrive.  Stay tuned!

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