Price Comparison Power to the People

If you're a retail operation selling barcoded goods, there's a new tool in town that can make or break a sale. It's a phone application that allows consumers to get more information about a product by scanning its barcode on-site--and shows if it's available cheaper elsewhere. (See NPR's coverage for more information.)

For those who buy purely on price--and those who aim to be the low-cost leader--this is a match made in heaven, er, airwaves. For the rest of the retailers out there, your 2009 marketing strategy should clearly address a response for the value-based buyers--those who are not as concerned with finding the best price. What does your store offer that means something to consumers and would be worth paying more for? What can you do to increase value? To be competitive, this is the kind of thinking you'll need to do . . . unless you want to offer price-matching (risky) or are structured such that you can afford (and want!) to compete on price alone.

The Rabbit Hole

There's an article worth noting in Jacksonville's Business Journal by Ray Attiyah. His premise is that managers should not chase more than one "rabbit" at a time and he offers a very clear analysis based on experience of why organizations lose focus. I like that he draws to the surface a substantial list of contributing factors but wish he offered a clear-cut systematic plan to avoid chasing two rabbits—or even chasing one down its hole, only to disappear. So, here is the systematic plan that I'd like to offer to small business owners and executives who feel overwhelmed by frequent changes in direction and its compounding problems:

Step 1: Be willing to look squarely at the state of affairs. It takes a tremendous amount of courage to admit errors, bad decisions, barriers to success, market challenges, and customer complaints. If you can silence the ego long enough to examine the environment without blame or judgement, you can overcome any obstacles.

Step 2: Identify root causes (as hard as they may be to admit), again in a way that rises above finger-pointing and blame-laying. However, do not shy away from crucial conversations. Be honest with yourself and others.

Step 3: Make gradual steps toward improvement by eliminating root causes. Enlist support where you need it and focus on what contributing factors must be minimized to foment change.

Sometimes this all of this is easier with the help of an outside, objective observer and facilitator, particularly in organizations rife with political battles. Scary as it may seem, the rewards of these steps are well worth it for those who truly want to lead a successful company.

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A Note on “Doing” and “Doing Well”

Issues of quality are a common concern for me, and there have been some lonely times when I was the sole champion of a high standard for professional outcomes, even if it meant more work for myself and others. As the leader of your own enterprise, you might also have that tireless commitment to quality, but we both know that not all things can be done as well as we’d like in a small business environment, where being nimble, responsive, and accountable to clients must come first--with fewer resources. If you're not putting out immediate fires, the pressures can be just as great to do things that drive client satisfaction and sales—from product development to promotions. And typically these things, because client-facing, also need to be “done well” vs. just “done.” What's the exception? Procrastinating because a task MUST be done well, when, in the meantime, doing nothing means losing a greater potential return. So as a microbusiness or small business owner, next time you’re faced with an almost scary expectation for quality, ask with these simple test questions to determine your course:

--What is the cost of doing nothing?
--What do I stand to lose by just doing it and making it better later?
--How much do I stand to gain from doing it well now?

This is an overly simplified strategy, of course, but one that I hope to build on to acheive a more robust model. To help this along, please post your comments!