Written by Administrator | 14 January 2010

2008 and 2009 definitely weren’t bullish years for many small businesses. To stay afloat and actually profit, companies really had to step up and try decisive and divisive tactics. For Terry Finley, president of West Point Thoroughbreds, there were several key decisions he took in 2009 to make this a good year. He didn’t sink and he didn’t just float through the year either: West Point actually increased sales by $1 million. Not too shabby for an industry (fractional ownership of thoroughbred racehorses) in major distress. Below are a few suggestions on how to turn the zeroes into heroes.

Take the risk and buy up the lower-priced competitor debt. Three years ago, the horse auction market, like many industries, was booming.  “There were people who would spend a lot of their funny money, and now are either spending less money, or, no longer around.” Where less “funny money” puts a damper on the industry, Finley decided it would help West Point.  The company purchased more high-quality horses this year than before at much lower prices, which in tern showed faith in industry.

“We bought the kind of horses this year that we never would have been able to touch price-wise,” says Finley who said some horses were marked down as much as 50%. “The market was white-hot then and now it’s softened enough where we could buy our competition.” As a result of the risk they took, West Point got better quality and proved to current and prospective clients that there was some real value in the market.

Explore outside the local and domestic market. When it comes to horse racing, for years the leading buyers destination was Dubai thanks to the wealthy investments by the Royal Family. With Dubai in flux, many investors have backed off.  Finley has been exploring Ireland now instead. “We were one of the first to buy and bring back horses from Ireland,” says Finley. “Now we have Irish investors interested in us.”

Leave the comforts of your own turf for your prospective client’s turf. It’s certainly easier to hide behind your desktop computer and phone when doing business, but meeting clients face-to-face shows just how important their business is. Showing your willingness to give some real time face time goes a long way. “Nothing beats sitting down with a client/prospect for lunch or in their office,” says Finley. “At least once a month I get on the train in Trenton to go to [Manhattan]. “We build rapport and help sell more horses when we visit clients or prospects in their own offices.”

Change up your purchasing style and practice. What worked for years might not be effective in the current economy.  For years Finley’s formula was to by 90 percent of his horses at 24 months old when they were already part of a race training schedule, and 10 percent of his costs were for the purchase of the younger yearlings. This year the company decided to focus more on horse training so found the less pricy yearlings to be worth the investment. He changed his order pattern to 50 percent 24 months and 50 percent yearlings. The change has proven successful.

Make “How does this enhance the customer experience?” your mantra. Most businesses are inundated with all kinds of initiatives and activities that “are well intentioned, but at the end of the day take our focus off clients and enhancing their experiences,” says Finley. “Always keep what you are actually selling at the center of what you do.”  Follow up that mantra with: “If I were a client, how would this impact me?” suggests Finley. This focus helped West Point Thoroughbreds remain attentive to its clients.

Tap into the next generation of clients. Horse racing has classically been a hobby enjoyed by those in the 50s and older. Finley is refocusing his efforts on bringing in the sons and daughters of his committed clients. What nailed it for Finley was a phone call he got from Dallas Cowboys player Duke Preston. “He called us and said his father loved the horses and that he wanted to find something he could do to spend more time with his father.” He sees that multi-generational investment as a lifestyle trend. “When you come into an investment with a partner, you don’t shoulder the responsibility alone, but when you win you really feel like you’ve won it all,” says Finley.

Nip company issues in the bud lickety-split. Address and give attention to problems immediately. Finley uses what he dubs the "puppy principal," explaining (albeit questionably): “If you have a puppy who wets the floor in your dining room, you don't correct him a week later in the living room, you do it right there in the dining room,” says Finley. “We began using the same principle with our team members. It's a constant battle but we try our best to hold each other accountable and address, right away, things that need attention.” West Point Thoroughbreds are sticklers for recording everything and use the CRM software Goldmine.  “If it’s not in Goldmine, it didn’t happen,” says Finley. “When a team member doesn’t input something into Goldmine, they know about it right away. We [also] make sure we give credit, right away, when credit is due.”

We would like to thank Shira Levine for this article.

Written by Administrator | 16 December 2009

Who’s Your Customer? Here is a Lesson from a Big Company and a Small One.
Media blogger Tom Taylor (www.radio-info.com) recently heard Starbucks executive, Bill Black, talk at an Arbitron conference. Taylor had this to say in his newsletter:
Boy, does Starbucks study its customers; creating profiles of “super regulars” who visit daily and produce 20% of revenue, spending over $1,000 a year at Starbucks. (They're just 4% of total customers.) And “coffee house enthusiasts,” who comprise 17% of the customer base and 37% of the revenue. Then “treat-seekers,” who visit maybe once a week and are 27% of customers/25% of revenue. And finally, “basic occasionals,” with special attention on the “youth occasionals.” Bill Black – who donned the famous Starbucks green barista apron – says “It would take us 16 basic occasionals to replace one super regular,” who for some reason quit coming in. So, “we need to focus our attention on the one, and make sure we’re showing the love.”
All customers are not created equal. A Super Regular is worth 16 times as much as a Basic Occasional – so Starbucks directs its time, attention, and resources toward learning about their Super Regulars, attracting them, and keeping them happy.
We have trained ourselves to always ask prospects about their core customer – the person most likely to do business with the advertiser. And we receive a wide range of answers. Some advertisers have a pretty good idea, while others would say things like,
“I’ve seen teenagers in here, and I’ve seen seniors.”
“Mostly women, but I don’t want to ignore the men!”
“Everyone is a customer!”
Now, very few local advertisers can afford to do the kind of market research that Starbucks does. But it’s possible for an advertiser, to learn a great deal about their core customers just by spending time with them.
Recently, we met with Marvin (names and info has been changed to protect the innocent), who owns a small consumer electronics store in the Southwest. Marvin’s store specializes in big-screen TV’s. He doesn’t have a research department – he is the research department. When we asked him who his core customer is, he answered right away:
“Men, 55 and over. They don’t trust the salespeople in the big box stores, so they come to my store for help. They come in here twice – the first time they’re by themselves, so they can decide what they want. But they can’t make a $3,000 decision without permission, so they have to come back in with their wife to make the purchase. When they come back, I make sure I give a lot of attention to the wife – the man’s already sold, but if she feels ignored, she can kill the deal.”
Concentrating his advertising dollars on shows that men 55 and over watch is key to his success. He has learned what’s important to those customers: for example, they get up early, so while the Best Buys of the world open at 10:00, he’s open at 8:30 every day.
There are riches in niches, and Marvin’s niche is older men. He doesn’t have a big marketing budget, but he’s figured out who his core customer is, and focuses his dollars on the core. That approach has allowed him to successfully compete against the big boxes for two decades.
The next time a prospect tells you that he wants to reach anyone who can fog a mirror, remember the story of Starbucks…and the story of Marvin.

Written by Administrator | 20 November 2009

We live in a fast paced society. That is a fact! I even know some people that will not go to Starbucks if there is not a drive up window. Fast food, crackberry, another app for this and that, scanners, webcams, text, you name it. We want it to make us FASTER. Technology has not made our lives easier, it just makes people expect things from us more quickly.However, most of us relish the opportunity to deliver on these (mostly self-imposed) timetables.

Since this is the situation in our daily lives why do some advertisers continue to use lengthy messages to promote their product or service? The answer is that they are not changing with the times. Have you ever asked a young person why they text instead of just picking up the phone and calling? They usually just shrug their shoulders and reply, "I don't know?" but the fact is that it is all about time management. Ah ha! Those teenagers do not seem so unresponsive when you put it in those terms. My point is that times have changed. The way we communicate has changed. Thus our advertising messages should change.

Our philosophy is: Get To the Point! The days of the 60 second ad in radio and the 30 second ad in TV are a dying breed. Why? Well, in the past we needed (and our audience had more) time to explain our product or service. However, now we have websites and the Internet to explain in more detail what we have to offer. Really listen to your messages. Do you say the same thing more then once in your ad in a different way possibly? Could you cut the ad in half? Why not just say it once lead them to your website and get on with it? Many people are getting a little fed up with giving time to get the end result i.e. TV commercials for FREE Programming. We know this is a fact or Tivo would not exist. That is why you have to get to the point! How do you do it without losing the message and are there any advantages? Well, there are many advantages to this approach that cover: budgets, frequency, multiple messaging and branding. My favorite 1 second ad is: "Beep, beep. Mini" which was developed for the Mini Cooper. I am not suggesting 1 second ads for everyone but if you had that strong of a brand you could!

RATES has been doing these type of ads for quite some time now and know how to make it work. We would love to talk with you if you have more questions.

Written by Administrator | 12 November 2009

It’s so funny how we always ponder life’s perceived failures instead of looking at the successes in our lives. I know from experience that having a type “A” overachiever, win at all costs personality tends to not only humble us when we hit a bump in the road but bring us to our knees. I have participated in enough life coaching opportunities from professionals to helpful friends to know that it not how one rises from their success but how one rises from the falls that truly makes the person you are. Failure is inevitable, if we are to succeed in life. Unfortunately, many people do not know how to overcome failure, and they are stopped by it when they encounter one. The ability to overcome failure is one big difference between successful and mediocre people. After all, we should pass failure on the way to success, so it is the ability to pass it that makes the difference between those who eventually reach success and those who don’t? These are things that I can catch myself constantly get caught in. So as a self-imposed exercise, okay my partner puts me on these quests to keep me focused; I am marching to the positive force and posting these tips to move forward. I put them up in plain site on the wall by my computer to always stay motivated and positive everyday.

Tip 1# Rise up and have no regrets. You have spent your time wisely!

A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing.

-George Bernard Shaw

Tip 2# Failure is how we gain wisdom and is always an opportunity to learn.

Good people are good because they've come to wisdom through failure

-William Saroyan

Tip 3# Keep confidence in yourself. Don’t give up on the most important person YOU!

Don't be afraid of the space between your dreams and reality.  If you can dream it, you can make it so.

-Belva Davis

Tip 4# Stay motivated and enthusiastic. One good way is by realizing that you are now one step closer to success thanks to the lessons you learn.

Many of life's failures are people who did not realize how close they were to success when they gave up.

-Thomas A. Edison

Tip 5# Learn as much as possible from the failed attempts.

Learn from yesterday, live for today, hope for tomorrow.

- Albert Einstein

Tip 6# Dream Big! Post a Goal Board and don't be afraid to post big!

Tip 7# Pick a new path, a new client even a new direction.  It's important not to get caught up on unrewarding returns.

Tip 8# Focus on giving.  Contributing to others is always motivating.   It works for me, I don't know why.  Maybe it's because by doing so one becomes less focused on my own problems.  It doesn't mean that the problems that one runs from the problem, it just means that the problems seem less daunting and intimidating.  Why? One is not thinking about oneself.  Brighten someone else's life today and somehow your life will also be brightened.

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