Keep Failing and Start Succeeding

The sign off on my email for years was, “Keep thinking, keep trying, keep failing, keep succeeding, keep growing.”  I want to emphasize Keep Failing today.

Fear of failure is one of the biggest detriments to the growth of both people and businesses.

  • Let’s look at just a few historical failures.
    JFK failed the bar exam twice.
  • Mark Twain, Henry Ford, P.T. Barnum, Milton Hershey, and Henry Heinz all went bankrupt.
  • Walt Disney was fired because of a lack of new ideas.
  • Winston Churchill flunked 8th grade.

Perhaps, one of the most famous failures that directly relates to business is Thomas Edison’s statement while attempting to create the light bulb, “I have not failed, I’ve just found 10,000 ways that won’t work”.

One of the most important concepts in the Make-You-Happy Management System is getting lots of input and ideas on how to improve from your team.  It’s really important that in coming up with ideas and input that they not be afraid to fail. That they not be afraid to suggest lots of things – things that may not be implemented. If people are afraid to fail in your business the ideas will dry up.

The following is excerpted from Fail Fast, Fail Often: How Losing Can Help You Win by Ryan Babineaux, PhD., and John Krumboltz, PhD.

“There’s something to notice about successful people: they act quickly, even if they may fail.

In the book Art and Fear, the artists Ted Orland and David Waylon share a story about a ceramics teacher who tried an experiment with his class.

The teacher divided the students into two groups.  Those sitting on the left side of the studio were to be graded solely on the quantity of their work, while those on the right, solely on the quality.  The instructor informed the students in the quantity group that a simple rule would be applied to evaluate their grades: those who produced fifty pounds of pots would get an A, those who produced forty pounds a B, and so on.

For the quality group, the instructor told the students that he would assign a course grade based on the single best piece produced over the duration of the course.  So if a student created a first-rate pot on day one of the course and did nothing else for the term, he would still get an A.

When the end of the quarter arrived and it came to grading time, the instructor made an interesting discovery: the students who created the best work, as judged by technical and artistic sophistication, were the quantity group.  While they were busy producing pot after pot, they were experimenting, becoming more adept at working with the clay, and learning from the mistakes on each progressive piece.

In contrast, the students in the quality group carefully planned out each pot and tried to produce refined, flawless work, and so they only worked on a few pieces over the length of the course.  Because of their limited practice, they showed little improvement.

I like this story because it points out an important principle: successful people take action as quickly as possible, even though they may perform badly.

Instead of trying to avoid making mistakes and failing, they actively seek opportunities where they can face the limits of their skills and knowledge so that they can learn quickly.  They understand that feeling afraid or under prepared is a sign of being in the space for optimal growth and is all the more reason to press ahead.  In contrast, when unsuccessful people feel unprepared or afraid, they interpret it as a sign that it is time to stop, readdress their plans, question their motives, or spend more time preparing and planning.”

It is also critical that you not be afraid of failure in marketing and sales. In fact, one of the characteristics of good marketing businesses is that they fail fast!  The faster you fail and get on to the next idea, the faster you’ll find something that works. Even the best marketers have more failures than successes.  If you are interested in this kind of marketing, you can get a FREE Gift at: www.3dMailResults.com.

Do what you do so well
that people can’t help telling others about you

Keith Lee
www.keithlee.com

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.

That Complainer May Be Your Next Great Leader

Here’s an excerpt from John C. Maxwell’s book, The 360 Degree Leader.

 

“Have you ever found yourself saying something like, “You know, if I were in charge, we wouldn’t have done this, and we wouldn’t have done that. Things sure would be different around here if I were the boss”? If so, let me tell you that there’s good news and bad news. The good news is that the desire to improve an organization and the belief that you’re capable of doing it are often the marks of a leader. 

 

Andy Stanley said, “If you’re a leader and leaders work for you, they think they can do a better job than you. They just do (just like you do). And that’s not wrong; that’s just leadership.” The desires to innovate, to improve, to create, and to find a better way are all leadership characteristics.

 

So next time you’re complaining about that complainer, you might want to consider that she may just be what you need as a leader.

I tell our mangers in our divisions away from the home office that they, at times, need to be a pain in the butt for me.  It’s easy to tell who is and who is not really trying to improve things and grow.  They are the people who tell you things you don’t always want to hear.

 

Here’s an excerpt from an email I sent to one of our division managers who, in a previous email had apologized for “causing a problem”.

 

“Remember I told you a good division manager would be a pain in the butt at times.  You do that well. 

 

Seriously, thanks for the great comments.  I don’t need a yes lady and I certainly don’t want the responsibility for coming up with all the good ideas or fixing everything myself.”

 

Now, I wouldn’t say it like that to a newer person who didn’t know me, but I could with this division manager.

 

With The Make-You-Happy Management System you don’t just allow someone to complain, you require them to help with a solution when they see a problem.  If they are constantly coming up with problems but don’t have solutions, they just may be an immature complainer and not a true helper.  If that’s the case, you need to quickly train them to have a solution when they see a problem or fire them.   

 

But if it is someone who is uncovering true problems and opportunities to improve, that’s what the Make-You-Happy Management System is all about.  With these people, do not always require them to come up with a solution.  A huge principle in the Make-You-Happy Management System is that a few heads are better than one in solving problems and taking advantage of opportunities. 

 

But does that complainer have what it takes to be a leader?  Sure you want a leader that can recognize problems and opportunities, but they also need to be tactful.  So keep your eyes open (or maybe better yet, your ears) for that person who thinks they can do the job better than you.  You just might have a great leader.

 

Follow the link below and discover How to Control Your Business and your Life with Proven Secrets to Creating Highly Productive Teams

 

https://americanretailsupply.wistia.com/medias/jl3pr8dbpk

 

All Wealth is Based on Systems

All Wealth is Based on Systems

My friend and mentor Dan Kennedy says, “All Wealth is Based on Systems”

When it’s time to sell your business, what is it worth if you’re critical to it?  Not much!

What if you’re not only, not critical, but the business gets better whether you’re there or not?  What is your business worth now when it’s time to sell?  You know the answer.

When you get Buy-In from your team, have Systems in place for everything you do, an effective Performance Feedback System, and Systems to consistently deliver world class customer service your business will improve whether you’re there or not.

The goal I have with all of my clients is to make them irrelevant to the day-to-day, then week-to-week, and then month-to-month operations of their business, so they can create real wealth.

A few years ago I went on a three-week Mediterranean cruise.  When I left I told our operations manager what cruise line I was on, and the ship, that’s it.

I knew I wasn’t going to get a phone call.  That’s why I didn’t need to worry about giving her any more information, or getting an international phone number for three weeks.  For the last 20 years, while on vacation, I’ve never gotten a phone call from work.  That’s the freedom you get when you have the proper Systems in place.

But what’s even better than no phone calls, is that when I got back, the business was running better than when I left.  When you have the right systems in place, that’s what happens.

In the E-Myth Revisited Michael Gerber says,

“Let systems run the business and people run the systems.  People come and go but systems remain constant.”

One of the reasons systems give you true freedom is that when you have the right systems in place, and you have turn over in your business, things continue to get better rather than having to learn everything all over again.

When you hire someone, over time, the knowledge the person has at that job rises.

Without Systems (everything in writing) what happens when they leave?  The knowledge is gone and someone is back to training the new person one-on-one in everything that needs to be done.

Over-time you’re lucky if you make any progress.

But what if you have systems?  That is, written documentation for everything that the person does.  What happens to knowledge when someone leaves and you have systems?

It’s that simple.  When they leave, and everything they do is documented, how hard is it to replace the person and get the new person up to speed?  Just think of the amount of time you’ll save.

Watch this hour long video to Discover You Can Create The Systems You Need to Become Wealthy:

Ya Sure…George S. Patton Was a Make-You-Happy Leader

Ya Sure…George S. Patton Was a Make-You-Happy Leader

by Keith Lee

Managers in the Make-You-Happy Management System are coaches, cheerleaders, facilitators, and nurturers of champions, rather than cops, referees, and nay-sayers.

This leadership principle is from the magazine “Armchair General” available from Armchair General, LLC 386-246-3456.  Let’s learn about management from Old Blood & Guts, George S. Patton, America’s greatest World War II battle commander.

General George S. Patton Jr. studied – and practiced – leadership all his life.  What “Old Blood & Guts” left behind is a priceless leadership legacy containing a wealth of material for today’s military and business executives.

Providing “Mission-Type” Orders

An organization benefits from both the individual and collective intelligence and experience of its members.  Too often, leaders attempt to provide a solution without tapping into the wisdom and abilities of those in the command structure.  Patton’s rapid, slashing, war of maneuver campaigns in World War II were propelled by issuing “mission-type” orders – assigning broad objectives and letting subordinates work out the details.

He advised, “Never tell people how to do things.  Tell them what to do and they will astonish you with their ingenuity.”

The Make-You-Happy Management System was created out of my frustration in having no time for myself, no time to work on the important things in my business because I was babysitting employees and making every King Solomon decision in the company.

In order to alleviate this you need to issue “mission-type” orders:  Assign broad objectives and let subordinates work out the details.  You’ll be amazed at the results and the freedom you achieve.

Demand Discipline

Discipline is the bedrock characteristic of any successful military unit or corporation.  Commanders and executives who want to win must teach it to subordinates and then demand that they act accordingly.  The fiery and headstrong Patton may have suffered lapses in regulating his own behavior from time to time, but he always understood that the controlled actions of his units remained the key to battlefield success.  “You cannot be disciplined in great things and undisciplined in small things,” said Patton.  “There is only one sort of discipline – perfect discipline.”

As this article suggests Patton may have suffered lapses in his own behavior in this regard, but we can still learn from this principle.

While I’m not suggesting peeling potatoes or forcing your Team to run miles when they don’t perform, I think that it is absolutely imperative that your Team understands your core beliefs and they understand that those core beliefs are unwavering.

Here’s an example.  Everyone in our company understands that the minimum level of Customer Service that is acceptable is “truly appreciative service.”  And while we may fail at this at times in the eyes of our Client, everyone understands that indifferent, or heaven forbid anything approaching rude service means immediate termination of employment.

Another example is seen in our company values.  Again, everyone understands that one of our values is, “We will do nothing illegal or unethical.”  If someone decides to consciously do something illegal or unethical they will be dismissed.

Take Timely Action

Perhaps because they fear failure, commanders and business leaders often become timid in their decision making, delaying final orders until the plan in “perfect.”  Patton, however, recognized that seizing the unforgiving moment is vastly more important to success than postponing an action until the ideal plan is devised – too late to produce positive results.  Remember Patton’s admonition, “A good plan executed now is better than a perfect plan executed next week.”

One of the basic tenants of Make-You-Happy Management is empowering your Team to make decisions.  You’ll obviously want to give some guidelines concerning those decisions, but as you and your Team understands the system and each other, those guidelines can be very broad.

For instance, while using our L.E.A.R system to take care of upset Customers, after finding out what the Customer wants to make them happy, the guideline for our front line Team member is unless it’s NUTS, do it!”

Instill Self-Confidence

Self-confidence on the battlefield of in the boardroom is crucial for success.  Patton created within his Third US Army a tradition of winning and a corresponding leadership climate that let his Soldiers know they were second to none.  The proudly exclaimed, oft-heard cry of the Third Army Vets, “I fought with Patton!” testifies to his ability to encourage and instill faith in oneself.  Patton wrote, “The most vital quality a Soldier can possess is self-confidence; utter complete and bumptious.”

When you empower your Team to make decisions and take care of Customers, they will have the confidence they need to create Happy Customers.

But what happens when your Team Member makes a bad decision?  In the Make-You-Happy Management System the first thing to do is look at your systems to make sure they are not getting in the way of making a better decision.

Once you find the system is OK, then you need to RETRAIN and not beat up the Team Member.  The first thing you need to do is thank the Team Member for making a decision.  Then and only then, discuss how a better decision might have been achieved.

Motivate Subordinates to Excel

The notion that Patton merely drove his men to excel through fear and intimidation is a gross misinterpretation of both his motives and his methods.  Few contemporaries understood as well as Patton how to motivate and get the most out of the American Soldiers.  His leadership philosophy regarding this point is best summed up in his characteristically blunt saying, “We herd sheep, we drive cattle, we lead people.  Lead me, follow me, or get out of my way.”

Remember, managers in the Make-You-Happy Management System are coaches, facilitators, cheerleaders, and nurturers of Champions; not cops, referees or nay-sayers.

L’audace, L’audace, Toujours L’audace!

Finding and adhering to a core belief, as Patton certainly did, will help guide leaders both professionally and personally.  One of Patton’s favorite French sayings, ” L’audace, l’audace, toujours l’audace!” translates to “audacity, audacity, always – audacity!”  Both military and business leaders would be well-advised to follow Patton’s guidance and never fear to act promptly and decisively on reasoned, calculated risks.

The Make-You-Happy Management System starts with your Company Vision which is the combination of your values and Beliefs.  Whatever those Values and Beliefs are it is critical that they are strong enough to carry you through tough decisions.  Often, when I have a hard time with a decision that answer is clear when I review our Company Vision.

Honest Abe and “Reason Why” Advertising

Honest Abe and Reason Why Advertising

By Keith Lee

Even if some of the stories were fiction, two of our greatest presidents were known for their honesty – Honest Abe and “Yes I chopped down the cherry tree” George Washington.

This month we’re going to tie honesty into “reason why” advertising.  People like to know why.  This applies to a lot of things and certainly applies to your advertising and 3D Mail advertising.  Also, while there may not be any real reason your customer saves more at an “Anniversary Sale” or “Back to School Sale” or “End of Season Sale” or etc, etc, we all know that an “Anniversary” or “Back to School” sale is more effective than just “Sale”.

The NOT SO OBVIOUS Part of Reason Why Advertising

The “reason whys” I use above are pretty obvious and are used a lot, but I want to talk about some not so obvious “reason why” advertising and the power in using them.  I send a marketing tip of the week each week (actually twice a week) to my American Retail Supply clients (you can sign up to get the tip at www.AmericanRetailSupply.com by clicking on “Free Retail Store Marketing Newsletter.”  With each tip I send a ‘special of the week’.  Here’s a special I recently went with a reason why.

Let’s look at difference between using ‘reason why’ advertising verses ‘just telling you it’s on Sale’.

I could have simply said “Sale ½ Price” and included the details of the product itself.

Instead I told a story.  Here’s the story with the reason why:

‘I won’t go into details but our client received the wrong OPEN sign so we have this one here in our warehouse, and since it’s not in our catalog, or on our web site, it will just sit here unless I tell YOU about it.  Sale Price One Only $151.93

Now I don’t know how many orders we would have gotten had I simply offered the same product at ½ of its normal price, but I know that the Sale sign in the tip, with reason why advertising, was sold before 10AM on the morning that the Marketing Tip was sent.

So what does this have to do with Honest Abe?  Often a great reason why is simply telling the truth of why you’re having a sale or something in particular is on sale.

Here’s another example of reason why advertising that I used in a marketing tip of the week special:

We just got done with our twice yearly inventory and we found a few things that are going to just sit here taking up room unless we tell you about them.  So, over the next few weeks I’ll be sharing these items with you.  Now remember, these are here due to some mistake so the supplies are very limited at these prices.

Here’s an example of our sales rep using reason why advertising and making lemonade out of lemons.  BTW – this was a huge success!

The picture shown is of a refrigerator magnet.  The middle of the magnet can be removed after the event and used by the recipient for other pictures.  The American Retail Supply logo shown is the picture below is a label that Ariane used to cover up the RSVP phone numbers, email and the like.

Here’s the letter Ariane sent.

“You’re Invited…”

OK, I admit, you’re not actually invited to my wedding. To be perfectly honest the wedding was called off before I could even send out the invitations, and now I’m stuck with 200 of these magnet invitations! But I am inviting you to take a couple minutes to look at the enclosed magnet and flyer and see if they’d be right for your store.

I’ve always been one to make lemonade from lemons, and after holding these things for over a year wondering what the heck to do with them, I finally had an idea. I’ll send them to my top clients, like you, to show you the great BIC products especially magnets you can get from me at American Retail Supply.

I’ve enclosed the flyer so you can see some of the shapes, sizes and colors you can get for your store. I realize budgets are tight right now, but you’ve still got to advertise your business and get the word out. Promotional products and magnets in particular are a great way to do that. You can give them away as gifts to your best clients, give them to people who make a qualifying purchase, or you can even sell them in your store and make a profit while you advertise yourself!

Hopefully you know by now when you purchase your packaging and fixtures from me you’ll always get my “Make-You-Happy” customer service. The same goes for any promotional products including:

  • Magnets
  • Pens
  • Cups & Mugs
  • Key Chains
  • And 1,000’s of other great products!

As an added bonus, I’ll give you 20% off your first order of any promotional product, you purchase in the next 30 days. Please give me a call at your earliest convenience to talk this over. I look forward to speaking with you.

Sincerely,

Ariane Caruso Ariane (AmericanRetailSupply.com

800-XXX-XXXX ext. XXXX

P.S. Remember, no matter what you order from me you’re always guaranteed to get my “Make¬You-Happy” service. If you’re not over-the-top, grinning from ear to ear happy when you receive your order, just give me a call at XXX-XXX-XXXX and I’ll do what it takes to make YOU happy.

(End letter… con’t on next page…)

 

How can you use ‘reason why’ advertising in your business?  You know, I think it’s next to impossible (and very risky for your business) to have one way to get 100 new clients each month.  I think it’s much more secure and achievable to have 100 ways to get one new client each month.

The same is true of keeping existing clients and getting them to buy more from you.  You need 100 different ways of doing that.  But how do you find time to do that?

If you’re going to do the marketing for your business (and I suggest you do) you better have systems in place to see that everything else runs very well.

That’s what I do.  I spend the huge majority of my time doing the marketing for American Retail Supply.

How do you get 100 things done?  Our Management System creates consistently great client service but also allows for a lot of personal initiative.  So in the case of Ariane’s letter, Ariane had the idea.  She took the idea to Travis, and Travis created the letter.  Then our receptionist Megan stuffed the envelopes to complete the mailing.

So the point is, I don’t personally complete all the 100 ways we have of getting or keeping a client.  I can’t get 100 things done and I don’t have the ideas to get 100 things done.  We have systems that encourage individual initiative and that means I’m not the only person getting 100 things done.

How can you tie in transparent honesty with your “reason why” advertising?

 

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!

See how the Out-Nordstrom Nordstrom Customer Service System can help you

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Temptations by Dan Kennedy

Dan Kennedy

Intro given by Keith Lee

Dan Kennedy is not only the leading expert in Marketing; he is the highest paid Copywriter in the world and is my personal mentor.  Everything Dan says to do, I do because I know what an impact it has had and will continue to have on my businesses.  If you are a small business owner looking to grow your business you’d be wrong to NOT listen to Dan.

Temptations by Dan Kennedy

Success and productivity are not the same things nor does maximum productivity necessarily translated to success. You might, for example, achieve a very high level of productivity at cold-calling prospecting and pushing through CEO’s doors in order to sell your services, but come to understand that you do not feel at all successful as a result; instead, perpetually stressed and anxious, demeaned by the ‘numbers game’ and the rejection; burnt-out…and come to realize you would have been better served devoting productive energy to building a marketing system that brought interested prospects to you.

As you set out to get a far stronger grip on your time, to enhance your performance, it’s important to be constantly assessing your reasons for doing so and the validity of the objectives you are pursuing and achieving.

Entrepreneurs tend to be under more constant assault than executives or others, so it is easier to lose grip on the thread that leads through the muddle to the prize. Prizes you don’t really want to get set up in front of you by others, and you race to get to them while losing the critical thinking that questions the appropriateness of the prize. This takes your time and invests it where it can’t get a desirable return. Entrepreneurs are, by conditioned habit, often by ingrained compulsion, perhaps even by nature Problem Solvers and Mountain Climbers. It’s what we do. But not every problem is one you need to solve or should care about solving. Not every mountain you are led to needs conquered by you.

My racehorses are incapable of critical thinking. They are bred and trained and conditioned nearly from birth to race. They are notable and fierce and automatic competitors. When I climb into the sulky and drive the horse to the track, get him moving behind the starting gate amongst the other horses, never, never, never does he stop and think—gee, maybe this is a race I don’t need to run. But you and I are capable of such critical thinking. We can reign ourselves in. As entrepreneurs, we are automatic competitors, automatic problem-solvers, automatic mountain climbers—but we are capable of overriding our automatic inclinations.

If you put a business problem or opportunity in front of a true entrepreneur, he automatically leaps upon it and begins solving it or capitalizing on it. He reacts as if a lion is thrown a hunk of raw, red meat. The lion will respond even if he has just had a big meal and is not hungry.

The entrepreneur will respond even if he has more on his plate than he can handle, no need to respond, no time to respond. In this way, entrepreneurs are dangerous to themselves.

You can reduce that danger with more disciplined time management. With entire weeks scheduled and scripted in advance, the new and unexpected must take a place in line, patiently wait, and instead of reacting impulsively, you can attend to it more calmly and thoughtfully. One of my principles is that nothing is ever as bad or as good as it initially appears. Before acting hastily based on first impressions, each new thing—problem or opportunity—must be carefully inspected.

Temptations by Dan Kennedy

Click here to find out what Dan Kennedy is giving away!

Nine Things More Important Than Money by Jim Rohn

*Note from Keith:

I have been a huge fan of Jim Rohn’s for years.  When I think about the heavy-hitters when it comes to business and life success Jim Rohn always comes to mind along with Zig Ziglar, Dale Carnegie, Brian Tracy, Earl Nightingale, and Napoleon Hill.  Whenever I read or listen to Jim I get extremely motivated and feel as though I can take on the world, and that’s a great feeling!

 

Nine Things More Important Than Money

Jim Rohn

When starting any enterprise or business, whether it’s full time or part time, we all know the value of having plenty of capital (money).  But I bet we both know or at least have heard of people who started with no capital who went on to make fortunes.  How, you may ask?

Well, I believe there are actually some things that are more valuable than capital that can lead to your entrepreneurial success.  Let me give you the list.

Time

time is more valuable than capital.  The time you set aside not to be wasted, not to be given away.  Time you set aside to be invested in an enterprise that bring value to the marketplace with the hope of making a profit.  Now we have capital time.

How valuable is time?  Time properly invested is worth a fortune.  Time wasted can be devastation.  Time invested can perform miracles, so you invest your time.

Desperation

I have a friend Lydia, whose first major investment in her new enterprise was desperation.  She said, “My kids are hungry, I gotta make this work.  If this doesn’t work, what will I do?”  So she invested $1 in her enterprise selling a product she believed in.  the $1 was to buy a few fliers so she could make a sale at retail, collect the money and then buy the product wholesale to deliver back to the customer.

My friend Bill Bailey went to Chicago as a teenager after he got out of high school.  And the first job he got was a night janitor.  Someone said, “Bill, why would you settle for night janitor?”  He said, “Malnutrition.”  You work at whatever you can possibly get when you get hungry.  You go to work somewhere – night janitor, it doesn’t matter where it is.  Years later, Bill is a recipient of the Horatio Alger Award, rich and powerful and one of the great examples of life style that I know.  But his first job – night janitor.  Desperation can be a powerful incentive.  When you say – I must.

Determination

determination says I will.  First Lydia said, “I must find a customer.”  Desperation.  Second, she said, “I will find someone before this day is over.”  Sure enough, she found someone.  She said, “If it works once, it will work again.”  But then the next person said, “No.”  Now what must you invest?

Courage

Courage is more valuable than capital.  If you’ve only got $1 and a lot of courage, I’m telling you, you’ve got a good fortune ahead of you.  Courage in spite of the circumstances.  Humans can do the most incredible things no matter what happens.  Haven’t we heard those stories?  It’s humans.  You can’t sell humans short.  Courage in spite of, not because of, but in spite of.  Now once Lydia has made 3 or 4 sales and gotten going, here’s what now takes over.

Ambition

“Wow!  If I can sell 3, I can sell 33.  If I can sell 33, I can sell 103.”  Wow.  Lydia is no dazzled by her own dreams of the future.

Faith

now she begins to believe she’s got a good product.  This is probably a good company.  And she then starts to believe in herself.  Lydia, single mother, 2 kids, no job.  “My gosh, I’m going to pull it off!”  Her self-esteem starts to soar.  These are investments that are unmatched.  Money can’t touch it.  What if you had a million dollars and no faith?  You’d be poor.  You wouldn’t be rich.  Now here is the next one, the reason why she’s a millionaire today.

Ingenuity

Putting your brains to work.  Probably up until now, you’ve put about 1/10 of your brainpower to work.  What if you employed the other 9/10?   You can’t believe what can happen.  Huans can come up with the most intriguing things to do.  Ingenuity.  What’s ingenuity worth?  A fortune.  It is more valuable than money.  All you need is a $1 and plenty of ingenuity.  Figuring out a way to make it work, make it work, make it work.

Heart and Soul

what is a substitute for heart and soul?  It’s not money.  Money can’t buy heart and soul.  Heart and soul is more valuable than a million dollars.  A million dollars without heart and soul, you have no life.  You are ineffective.  But, heart and soul is like the unseen magic that moves people, moves people to buy, move people to make decisions, move people to act, moves people to respond.

Personality

You’ve just got to spruce up and sharpen up your own personality.  You’ve got plenty of personality.  Just get it developed to where it is effective every day, it’s effective no matter who you talk to – whether it’s a child or a business person – whether it’s a rich person or a poor person.  A unique personality that is at home anywhere.  My mentor Bill Bailey taught me, “You’ve got to learn to be just as comfortable, Mr. Rohn, whether it is in a little shack in Kentucky having a beer and watching the fights with Winfred, my old friend or in a Georgian mansion in Washington, DC as the Senator’s guest.”  Move with ease whether it is with the rich or whether it is with the poor.  And it makes no difference to you who is rich or who is poor.  A chance to have a unique relationship with whomever.  The kind of personality that’s comfortable.  The kind of personality that’s not bent out of shape.

And lastly, let’s not forget charisma and sophistication.  Charisma with a touch of humility.  This entire list is more valuable than money.  With one dollar and this list I just gave you, the world is yours.  It belongs to you, whatever piece of it you desire whatever development you wish for in your life.  I’ve given you the secret.  Capital.  The kind of capital that is more valuable than money and that can secure your future and fortune.  Remember that you lack not the resources.

Jim Rohn is considered to be America’s Foremost Business Philosopher.