January Newsletter
By Don Eckles, President
How is Business? Are you concerned about what lies ahead in 2009? Just this week, huge, well known companies have announced closure or bankruptcy, or both. Even in the specialty coffee business, a large regional player has gone down. What does that mean to you? Maybe nothing…but, it sure should be a reminder of what happens when we get lazy, or when we cut corners.
In our company, we see this as a time of great opportunity, while at the same time recognizing the realities of the market. In the past 2 or 3 months, we have purchased 3 coffee stores from banks for pennies on the dollar. These are stores that were doing fairly well, as far as sales volume goes, but were completely out of control in the area of debt and operating expenses. The same thing could happen to us, or you, if we’re not diligent about sales and expenses.
In the past few newsletters we talked about the importance of using high quality products, controlling cost of goods and cost of labor, and, giving exceptional customer service. In this edition, we’re going to discuss marketing, and the impact it could have on your business. And, we’re going to look at how you can market your store for very little money.
Before you start any marketing program, I think it’s essential that you know what it is that you’re going to market. In other words…what is it about your store that would entice a customer to come to you instead of someone else? Do you make better drinks? Is your atmosphere better? Is it a lower price? Are you more convenient or do you provide better and faster customer service? If you can honestly say “yes” to most of those things, you’ve got a winner, and you need to tell someone (customers) about it. If you can’t say “yes” to at least a few of those things, you need to figure how you can truthfully change your answer. Look back at our past newsletters for some free advice relating to these areas of your business.
Once you’ve figured out what separates you from the crowd, you need to find a way to get people to try your store. Make sure your staff is prepared for the extra business, and that your store is ready for its debut. Once you start marketing your store, people will come in. You need to be sure that, once they come in, the experience is so good that they will come back, again and again.
Marketing on a budget:
The least expensive form of advertising is called “gorilla marketing”. It’s not fancy, but it’s effective. It can be as simple as you or some of your employees going to neighboring businesses and passing out some coupons, or taking some samples of coffee and muffins. Be sure to leave a take-out menu with each business you visit. You will be surprised at just how many people have never tried your store, or maybe didn’t even know you were there. Make sure the samples are “out of this world” good, and that, whoever is going on your behalf, knows the importance of a big smile and a warm invitation.
I love banners. They’re inexpensive, and VERY effective. You may need a temporary sign permit to put a banner out, but it is very much worth the expense. When we want to market a new store, or one that needs a jump start, we like to do a 3 day “free drink” promotion. We put out a banner announcing that all 12 ounce drinks are free for a certain number of days, and, that all other drinks and smoothies are $1.00 off for the same period. The 1st day you’ll give away quite a few drinks, but will still sell a surprising number of drinks for $1.00 off. Day 2 you’ll do more…and the 3rd day, more still. I always tell customers to “tell your friends and co-workers that the drinks are free”. The idea is to get as many people as possible to try your drinks.
Direct mail can be a great way to build your business…if the offer is right, and you’re ready to “wow” people when they come in. Do not do one of those “mailer” campaigns, where your ad is one of a dozen or so that gets sent to homes in the area. Do your own piece. It’s more expensive, but the results can be staggering. You can create a very nice piece and produce 10,000 of them for less than $1,500.00. Then, you can bulk mail them for about a quarter a piece.
Or, you can create a different piece…one that offers a free drink, and maybe a five punch card which, after filling, gives the customer another free drink (this gives you 7 chances to impress that customer). With an offer like this, the best way to distribute the cards is by buying a few boxes of clear plastic bags with a slit for a handle…put a card in the bag, then, go through the neighborhoods and hang them on doors. It takes longer, but it’s also much less expensive. You could see a return in the 8%-15% range, which is much better than the 1%-2% range you’ll get from most mailer programs. And, with the plastic bags that you hang yourself, you can do 200 or so each week. That allows you to really focus on the new people coming in, and to absorb the cost of the promotion a little bit at a time.
Don’t be shy about asking for some financial support from your suppliers or your franchisor. Many franchisors will offer co-op dollars for marketing, and many suppliers will give you some free products to help support your efforts. Don’t ask your milk delivery person…call his boss and ask. Same with coffee…call your roaster and ask for some marketing support. Your cup supplier would probably provide you with a case or two of cups, if you ask.
One last thing about marketing. You won’t get the most bang for your buck, if your store looks shabby. Make sure the lights are working, inside and out. Look at the store through the eyes of a customer. Is it clean and comfortable? Are the employees clean and neat? Do they know their stuff? You’ll get 1 or 2 chances with a new customer, so you must get it right.
I hope you find these letters helpful…
Remember, if you feel the need for some additional help, we do consult. The cost of consulting is $500.00 per day, plus expenses. But, we’ll give you that $500.00 per day back in the way of free products from Harvest Roasting. So, for the cost of the expenses, you can get consulting help. If you’re a current Harvest coffee bean customer, I might be able to help you over the phone…and that’s free. Also, if you would like to receive this newsletter via e-mail, please let us know. You can e-mail me directly at don@harvestroasting.com. Give us your e-mail address and the name and location of your business, and we’ll take care of the rest.
Finally…we would love to be your coffee supplier. Harvest Roasting supplies most of the products for coffee houses all over the country, every week. Please check out our web-site, or call Barb Miller. Barb’s number is 402-670-9755. Our web-site is www.harvestroasting.com. As an added inducement, we’re offering free shipping on your entire order, when you purchase at least 75lbs. of our specialty and premium grade fresh roasted coffee beans. If you’re currently not using 75 lbs. of beans per week, you can order every other week, or even once a month. As long as you order 75 lbs. of beans, we’ll ship your entire order, freight free. That includes syrups and sauces, smoothie mixes, cups and lids…everything. Ask Bill for details.
Here’s hoping that 2009 will not only be a year you survive, but one in which you thrive.
Sincerely,
Don Eckles
Harvest Roasting