Archive for July, 2008
Musa Scarf
I was recently given some gorgeous wool along with the instructions: garter stitch, size 8-10mm needles, cast on 17 stitches. So I spent some time this week knocking out a fun, colourful scarf. I’ve spent a lot of this year working on larger knitting projects, so it was nice to knock out something simple in three days time. I feel accomplished!
Planograms: Urban vs. Suburban vs. Rural?
Hearing about the Rogers Video stores made me think about why they closed, outside of obvious issues like the increase in downloading leading to fewer rentals. I have a theory that part of the problem is that the drive towards uniformity fails to take into the account the differences in markets. As much as we want customers to walk into one of our stores anywhere and recognize it, is having the same layout the best way to accomplish this?
Take a video store. If you are in a suburban location, you have lots of space available for less money (relatively). Your store can have wide aisles and the multiple copies of that hot new release displayed side by side. However, if you are in an urban location where space is limited and comes at price premium does this sort of planogram continue to make sense? I’d argue no. In fact, I think that part of the reason why companies have trouble making some stores profitable is because they blindly implement planograms without taking the location into account.
Personally, I don’t know why downtown movie stores have wide aisles; aisles that are in fact wider than those at my local grocery store. Or why they need to display multiple copies of movies side by side – why not have a single display copy and then have the multiples shelved so that only their spines are visible? Yes it would destroy the copy cat training you provide from your employees, but it would allow you the flexibility to remain in the market.
For that matter take this one step further and expand into rural markets (i.e. small non-suburban cities). Why not create a category of video store that offers several (but not thirty) copies of the latest new release, some classics, and the ability to order other movies from the local big store for delivery once a week.
This thought originated from discussions with a friend on planograms, but the underlying issue is I believe is that businesses expand so much that they equate control and standardization to organizational efficiency and proper business planning.
No commentsPFL Fight Club: Return of Sailor Gerri & Ursula Anvil
SATURDAY, AUGUST 9TH Live @ the PFL Studios (and its top secret location). Free-for-all fights chosen by the fighters.
The Return of Ursula Anvil! The Return of Sailor Gerri! & The Return of their Tag Team, The Hot Twins!
Tickets are $10 @ Rotate This. 801 Queen St. W *** only 100 available so get ‘em quick! *** Or, if you are a super ninja and know one of the fighters personally, ask ‘em!
ursula anvil
Customers Pay for Poor Business Management
As a customer (and a business person) I understand that a portion of what I pay for goods and services is profit for the company. I’m okay with this. What I’m not okay with is increasing prices and decreasing services & service levels being used to support poor business decisions and the resulting operational inefficiencies. This goes back to the story I told about my high school administration; if I can see what’s wrong, don’t expect me to sit back and willingly accept poor treatment.
Recently Rogers closed the majority of the Rogers Video stores (reasons behind this and the way in which employees are treated are a whole separate issue). There was one reasonably close to my house. I have friends who rented movies regularly. They went one day and the store was just closed. No warning, no retention effort, nothing. Instead they walked the extra block and went to Blockbuster.
The Rogers Video stores were closed because they weren’t profitable. That’s fine. But just because the retail location or store concept isn’t profitable doesn’t mean that individual customers who went to that particular store are also not profitable. And if there is a way to keep the revenue from those customers in house (and for that matter, to not send them directly into the arms of the competition) why wouldn’t you take it?
The retention offer could be as simple as a coupon offering two free video on demand movies. It’s a substitute product with extra convenience. Plus it’s a way to potentially get customers using a new product (and one that doesn’t require retail locations and additional staff). And really it would have shown the customers who used those stores that Rogers valued them as customers. If video rental customers are also cable, internet, wireless, or home phone customers than this goodwill may have spilled over into other silos within the business. Instead, the customers were ignored and a chance to retain them fell by the wayside.
When I can see opportunities to retain customers and revenue ignored or projects mismanaged, I get mad. I get mad because I’m expected to pay for these mistakes. The counter may be that due to the oligopoly that exists in the telecommunications market (i.e. that there aren’t enough companies for perfect competition to truly exist), I don’t have a choice to punish companies for poor management choices by taking my money elsewhere. If my choices are Rogers, Bell, and Telus – then do I really have a choice at all?
Vegan Sugar Cookies & Cupcakes
Here are some pictures I promised of the baking I did last week. I’ll assume that both were a smashing success given that nothing survived Friday evening!
vegan sugar cookies
vegan chocolate cupcakes with 'buttercream icing'