DIM Business Ideas

Archive for September, 2009

Here’s a case study in how an art supply company trained me to NEVER pay full price.

People who know me know I’m in Internet shopper and a paper crafter. I’m always feeding my habit of new and different papers, inks, stamps, and embellishments. One business I used to frequent (notice the past tense there) was a paper art supply house that offers many specialty items. But their constant e-mails with constant sales actually cost them a steady customer — me!

Let’s look at why. A while ago, I saved some of their e-mails so that I can show you this company’s fatal error. Take a look at these e-mail titles:

Exclusive 30% Storewide* Savings Holiday Sale – Final 24 Hours (12/8/07)
25% Holiday Savings – Still Time for Delivery by Christmas (12/13/07)
Still Time for 25% Storewide* Savings & Delivery by Christmas (12/18/07)
Year End Inventory Clearance Sale 35% off (12/27/07)
Prices Slashed – up to 50% Storewide Savings (1/3/08
Prices Slashed – up to 50% Storewide Savings (1/6/08)
Embellishments Blow-Out Sale – Save up to 35% Department Wide (1/15/08)
Winter Sale – up to 50% Savings & Free Shipping Offer (1/17/08)
Craft Tools Sale – Save up to 50%* + Free Shipping Offer (1/22/08)
Craft Adhesives Sale – Save up to 50%* + Free Shipping Offer (1/24/08)
Inventory Reduction Sale – up to 50% Savings + Free Shipping Offer (2/10/08)

I actually didn’t list all the e-mails I received during this period of time. But as you can see, they were frequent!

Here’s my question. Should I ever, for any reason, order from this company and pay full price? My answer is – NO! This business has trained me not only wait for a sale, but wait for a super sale with deep discounts and free shipping. The company would probably die to know that they are regularly referred to on paper artist’s chat sites with the comment “oh, just wait, the sale will get better.”

Maybe you think it’s lack of money…that may have something to do with it. But, no. Is it because the competition is so fierce? Is it because of the economy? Is it because Quickbooks is such a chore to use (no, it’s really not, just for the record)? No. No. No.

Before you run to the U.S. Small Business Association or other statistical entity, let me level with you on this stat: roughly 80% of statistics are made up on the spot…That being said, my gut instinct and life experience tells me that 95% of businesses fail for this one reason – even if I did just consult my life experience and intuition to arrive at the statistic!

Most businesses–given my experience in the field of entrepreneurship–fail because the owners think they’re good at what they do. They think they’re the best, or darn close: painter, accountant, financial consultant, SEO engineer, or what have you–and then they pick up their tools and make a stab at getting their name out there and actually land some work. Maybe life’s good for a short while as the business apparently booms. Some never even get that much out of their venture before drowning in a quagmire of debt. Without getting too technical and chasing down every possible rabbit trail–just why do small businesses fail?

Well, they all start out with the notion that they’re the expert in their field, in their home town or other fishin’ hole, and pound pavement to land work. So far, so good. The failure comes with this: they don’t realize they’re all in the same business! It isn’t remodeling homes or selling homes, it’s not fixing cars or defending court cases…it’s more basic than that. 95% of businesses that fail, imho, fail because the owner doesn’t realize that he or she is fundamentally in advertising and marketing, and in the business of sales.