What Small Business Can Learn from Borders
Today we welcome Sarah Mitchell, owner of Global Copywriting, to the Small Business Owner blog. Sarah identifies a valuable lesson from the recent Borders experience and shares her thoughts on not losing sight of your core business and what made you successful. Thank you Sarah. Naomi 
The news that Borders has gone into voluntary administration hit hard. As a lifelong bookworm, it’s always difficult to hear a bookstore is failing. I’ve spent countless nights trolling the aisles of Borders looking for a treasure or six to satisfy my love of the written word. With the benefit of hindsight, it’s easy to see where they went wrong.
The Old Borders Experience
I’m originally from Michigan where Borders was founded so this particular news is even harder to bear. When I think back to the Borders heyday, it’s a very different picture than the megastores of today. My neighbourhood Borders was on a corner block with lots of parking. While the store was spacious inside, you could hardly move because of the narrow aisles and stacks of books on the floors and every available surface. While you were always encouraged to read, it was often hard to find a place to crack a book open. The staff were extremely friendly and well-read which helped when you needed to find something in the jumbled maze of books.
The New, Improved Borders
Every Borders I’ve been in during the past 10 years has been very different. The shops tend to be located in city centres garnering plenty of foot traffic. The aisles are wide. Comfortable chairs are littered throughout the shop. Coffee shops are installed in central places to encourage you to linger longer. The shelving is all accessible and online search stations are located around the selling floor to help you find what you’re looking for. Someone gave the shopping experience a lot of thought – or did they?
Loyal Following
Last week my family visited the only Borders in Western Australia in the Perth CBD. We immediately dispersed to three different corners of the store – science/math, children’s section, and literature. We arrived with the intent to prop the place up with as much of our custom as our monthly budget would allow. If Borders closes shop, it’s not because my family didn’t do what they could to keep them open.
At the end of an hour, we met to assess the damage and prioritise our purchases. The sum total of our selections came to $14.95. Yep, that’s right. We managed to select a single book to be used as a baby gift. How did that happen? In an effort to improve their trade, Borders forgot about their core business. None of us found a single book we wanted to purchase.
The New Customer Experience
I’ve been thinking about this a lot. The old Borders used to have shelves crammed with books, not just bestsellers and tomes from celebrity authors. Browsing in the shop was also an exercise in discovery. With so much diverse stock, I always found something new. The floor clerks were keen to recommend something based on where I was looking or what I had brought to the counter for purchase. I usually bought a couple more books than I planned because of this individual ‘word of mouth’ service. The online search kiosk doesn’t recommend anything.
We all agreed while there were plenty of books in the store, the variety was limited to what we could find anywhere and buy much cheaper online. My young son made the astute observation that he didn’t go to Borders to buy Thomas the Tank Engine toys or a vegetable brush. When we took stock of the sales floor, a large percentage of it had been turned over to merchandise not related to books or book reading. The net result is three dedicated book buyers walked out without making any significant purchase.
The Take-Away
The lesson for this, of course, is to stick to your core business. It may be tempting to diversify or alter your service and product offering in an effort to expand. If you lose sight of what’s made you successful, you run the risk of derailing your whole company. There’s nothing wrong with staying in a niche. Your customers are probably hoping you do.
Have you ever been tempted to expand your business? What happened?
Sarah Mitchell, Content Marketing Consultant and owner of Global Copywriting
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How lucky we are to have you, Sarah. Thank you so much for guesting.
I was in Borders the other day. Faced with pallet loads of mass market best sellers, I picked a couple up to see what the fuss was about. I couldn’t get past the second sentence!
I went for a long wander, but every book seemed by or about a cook, sportsperson or politican. I also walked out empty handed.
Best regards and thanks again. P.
G’Day Sarah,
Abloodymen! Back in 1996, Al Ries wrote a book called “Focus: The Future of Your Company Depends On It.” Nothing’s changed. It was true in 1911. It’s still true in 2011.
Along with Jack Trout in the 1981 bestseller, “Positioning” they warn of the dangers of line extension. .Over the past few years, a visit to Borders found you in a bookshop, coffee shop, toy shop, gift shop. CD/DVD shop type place where you quickly discovered that you, the customer, knew more about books than the staff.
Amazon and the internet didn’t kill Borders and A&R. Inept marketing and a complete misunderstanding of retail basics introduced by outside bean-counters did a much cleaner, quicker kill than Amazon could ever have done.
Marketing isn’t everything; but everything is marketing. The moment your business loses focus and you try to extend your target market, you’re in trouble. I’m just a curmudgeonly HR bloke But even I’ve learnt that much.
Sarah, you’ve done all of us a favour with this post. And Naomi and Kevin Sheedy’s mate, Paul, deserve credit for inviting you.
Make sure you have fun
Regards
Leon
Hi Leon,
Thank you for an extremely generous comment. It’s a bit scary showing up in Paul Hassing’s space. He has a formidable pair of shoes to fill.
I love the phrase, “Marketing isn’t everything; but everything is marketing.” I’ll use that again.
But you’re right. Amazon did not kill Borders. They didn’t kill Starbucks or Krispy Kreme Donuts, either. It’s a case of expanding too quickly, forgetting what your target market is after, and forgetting what you do better than anyone else.
Thanks so much for your comment.
Hi Paul,
My heart bleed for you and the rest of us book lovers out there. For as nice as it is to go to a place where you can stretch out, find a comfortable chair to sit on and not get frowned upon for reading the merchandise before purchase, there’s nothing good about not having the products you want.
For me, the worst part of the Borders debacle is they lost the sense of discovery people like me were looking for. It’s an intangible thing but I used to rely on the fact I would find the perfect book even if I had no idea what that was. I would go to Borders without a plan or a list, only the idea I was going to find some great books. For the past several years, I usually came away empty handed even though the shelves were heavily stocked.
Let’s hope they can turn it around. For a Michigan gal like me, having Borders close door permanently is the worst thing I can think of.
Thanks for your insight.
Hi Sarah and Paul,
I was only in a Borders store the other day saying the same thing about the number of products that they had which had nothing to do with books! As I deal with retailers regularly, I take note of the merchandise that they carry and take an interest when they add products that do not seem to sit within their usual mix. It is often interesting to note that the more the product diversifies, the more they do not look like they know what they are doing and the more likely they are to fail.
I have also noticed, recently, within the wholesale/importing side of our business that there are also many of my competitors tempted into diversifying their product mix way beyond what they are known for and they start to lose their way as well.
Hi Ann-Maree,
In some ways, I can see how this happens. I remember when Borders first started offering greeting cards and wrapping paper. It was fantastic to be able to buy a gift and get the rest of what you needed all in one place. It wasn’t long before they started offering gifts targeted at readers during the holidays – book lights, expensive book marks, etc. Again, it made sense.
It wasn’t until this last visit with my family I realised how far away they’ve moved from their core business. When my 6-year-old commented that he wasn’t interested in buying toys at Borders, I really knew they were in trouble.
Here’s the thing, I think it’s okay – and even makes sense – for shops to offer complementary products to support customers. When they move into new lines of business, they just can’t compete with the specialists.
I do think Borders is getting a taste of their own medicine. They put a lot of smaller independent book owners out of business by offering a better selection and cheaper prices. That’s changes these past few years. When I’m back in Michigan now, I forgo the big chains altogether and head to the local bookshop. Even though the floor space is a fraction of the size, I end up in state of delighted anticipation at the arms full of books I find.
Thanks for stopping in and sharing your expertise.
I really do wonder in Australia if Borders hasn’t been dragged down into administration by their sister stores Angus and Robinson. A&R have been on the decline for years sliding like Borders into the dangerous habit of stocking the popular market books only. In some cases a range little better than a Target or Kmart.
The main problem Borders faced was to innovate in the market place. Which they did, but as you say, they forgot to stay focused on some of the core problems they were solving. The desire to find to browse to discover, to have the personalised experience of the store, to be immersed in the book range. To do this you need a large range.
People want a large range in this case. Wal-mart recently also made the same mistake.
Innovation is tricky, but we all need to take stock from time to time and go back and look at the problems and issues your business is solving for your clients.
This is the core, this is the thing you need to do better.
Taking stock of what your clients problems really are is the key to Innovation. If you don’t understand what your customers really want you will just fail or be overtaken in business.
Hi Gary,
You’ve raised an interesting point. I hadn’t considered that Borders may have been trying to be innovative. I’m sure the decisions made at the ‘C’ level were entirely about attracting more business, too. As you say, it’s tricky.
It’s hard to say if Angus & Robinson contributed to Borders problems in Australia. I know Borders USA is in the same dire straights. So, too, is Barnes & Noble, another beautiful bookstore with nothing much I want to buy in it.
I do hope they start to view innovation from the customer viewpoint. Everyone wins then. Thanks for giving me something to ponder today.
Oh, what great timing.
I spent 5 minutes the other day in each of two book stores. Not because I was in a hurry but because they didn’t have any books different from what could be bought for half the price in Target. And as I wasn’t wanting a love story involving teenage vampires, nor a cooking book, I was stuck.
I know a store can’t keep an inventory the size of Amazon – But how can you position yourself as a generalist book store and only keep short run popular titles in limited retail space?
Surely there is space in the market for one of our local book retail brands to ‘own’ reference books – in a stack of genres. Could another be the killer brand for classic through contemporary fiction? If they focussed more narrowly they could build a serious brand.
Sarah – I had so many thoughts popping off in my head after reading your post and subsequent comments that I didn’t want to be rude and take up even more space here than I usually do. So I have posted some more thoughts on my blog: http://www.thewoo.com.au/BlogRetrieve.aspx?BlogID=419
(Thx to Leon for bringing Mr Reis & Mr Trout to us! Our younger folk should go off and read all of their books! Guess you want find them in your local book retailer though).
Thanks Paul for inviting Sarah to guest.
Hi Bambi,
Yes, thank you Leon for the astute book mentions. I will source them and read. They don’t currently sit on my shelf.
One other thing I find Borders not doing so well anymore is book ordering. It used to be they would order ANYTHING they didn’t have in stock. When my husband asked for an engineering book at Christmas, I was told I should call the other stores and see if they would send it to me. What?? (Did I mention I live in Perth and we don’t have any other Borders in WA?)
Your point is well taken about specialist book shops. Perth is home to Boffins, (http://www.boffinsbookshop.com.au/)a technical and specialist book shop that seems to do a roaring trade and not a vampire book in sight. Interestingly, they’re on the same street in the CBD.
Thanks so much for your enthusiastic comment, Bambi. I’ve never had a blog post spawn another – or at least not so quickly. I’m leaving here to comment on your post. It has my brain cells firing too.
Nice post Sarah. What you say makes a lot of sense, as many businesses seem to wander off the straight an narrow track of core business and get lost in the deep dark forest of ‘pursuing extra profit’.. I commiserate with Borders though, as I think their original core audience is a dying breed – with many of their ranks being tempted over to the big bad online store who can ship the same items overnight at a lower price..
Relating to personal experience I’ve actually gone in the opposite direction. I started out trying to be a jack of all (marketing) trades, finding it impossible to turn down business and trying to provide everything requested regardless of my knowledge in that area – but have slowly realised the many benefits of focusing on a niche; improved service offering, easier target marketing, and less confusion about what you offer.
Thanks for your insightful post!
Cheers
Dan
Dan!
You’re a man after my own heart. I’ve dedicated 2011 to the same thing – scaling back, becoming more specialised, and saying “no” more often. Guess what? It’s working beautifully and I’m even having evenings and weekends away from my desk. My business is booming and I’m a lot happier.
Maybe Borders would hire us to do some consulting work for them. What do you think?
Thanks for stopping by. I’m really happy you found it helpful.
Great post as always, Sarah.
I actually used to work at Boffins, and they definitely know what they’re doing by specialising and have a very strong brand: non-fiction books only (technical/business is one segment; art/cooking/travel another), very, very well organised sections and amazing service. Believe me when I say I worked hard at that store! A lot of people are happy to pay a bit extra to get that service and to shop somewhere where it’s obvious a lot of care has been taken in presentation and selection of stock.
Their market is business people buying books on their lunch break or through an organisation, as well as people that love books as mini works of art and pursue quality in all areas of their life. Everything they do – from staff to how they wrap the books to the music they play (classical, always!), comes back to these customer profiles, and that’s why it works.
Wow, Adrianne, That’s valuable insight to prove Bambi’s point; when you focus on the customer, the money follows. Thanks so much for sharing that with us. I’m tingling at the thought of a bookstore concerned about how well the books are being wrapped. That’s my sort of place.
What a ripper coversation! Thanks to those who’ve thanked me for inviting Sarah. Far from being a talent spotter, I’ve found Sarah’s writing tends to smack me in the face until I pay attention. I’m delighted her skills have transferred to this forum.
For anyone too far from a book store to support it, here are those titles: http://bit.ly/4GD62g
The wrapping is beautiful! You should ask to see it next time you’re there.
I remember working downstairs at the counter and on any given shift as people walked past on Hay Street I would hear dozens of times: “Oh, I LOVE this bookshop!”
Amazing to cultivate such brand love for one, stand-alone store. I do wonder how many people say that when they walk past Borders or A&R…
Well Adrianne, when people walk past the A&R in the Perth CBD they say, “Oh, what a shame they closed.” It’s amazing how the smallest things can really contribute to brand loyalty. I bet a nice selection of wrapping and good training was a much smaller investment for Boffins to make than an in-store coffee shop would have been.
Paul, I’m flattered this conversation has made “ripper’ status. I’ll sleep easily tonight!
Keep this up, Sarah, and you’ll have an Onya Sonya! tomorrow.
Some great points in there, Sarah!
I know a few indie book sellers who have seen sales ramp up over the past few years because they are niche and targeted and engage with their market.
As an author I find it interesting that the bookstores where I’m asked to give talks and signings are invariably independent – I’ve never been asked to speak at one of the major chains.
Hi David,
You raise an excellent point Bambi touched on in her companion piece to this post at http://www.thewoo.com.au/BlogRetrieve.aspx?BlogID=419 publishing doesn’t pay much the writers much respect. You’re not the first author I know who has lamented the sorry state of publishing. It’s almost like the publishers forget they wouldn’t have a product to sell if it wasn’t for the writers.
What would happen if the publishers and bookstores started treating authors the way marketing treats their bloggers? You can become a blogging rockstar much easier than you can become a published author. Readers – of books and blogs – will line up to see their favourite writers if given the opportunity. I’ve done it myself.
Thanks for your valuable comment and a view from another angle of this frustrating story.
Speaking of book shops, I reckon Readings deserves a mention:
http://www.readings.com.au/carlton
From what I’ve seen, it’s EVERYthing a book store should be.
As much as I think we could add to their business I’m not sure they can afford any extra consultants!
Daniel,
I bet they’ve had a gut full of good advice lately, too!
Paul,
It’s every (girl) writer’s dream to get an Onya Sonya.
Thanks for the link to Readings. It looks like my kind of place.
This is certainly something faced by Carbonite all of the time. Demand for more and more features that few will every really use but comparison sites will give you a big tick for. Products get bloated and hard to manage from a development perspective. More errors and more down time means unhappy customers and the eventual move away.
Carbonite has stayed true to its objective of being simple and easy to use for the everyday home PC user. It doesn’t have all of the WOW features that Mozy has and it doesn’t do the files sharing that techos love about Drop Box.
This reluctance to be all things to all people (particularly the 15% that want it all) is what has made it so successful so far.
Not many companies can resist this temptation. I hope Carbonite continues to.
You’ve made a really valuable point. I spent the first 20 years of my career working in the software industry, primarily for one software vendor. When we started, we had solid tools programmers used every day. Through competitive pressures, we kept pouring money into them and making them bigger and better. After awhile, they became very expensive because all that R&D and a big software development lab took a lot of money to keep going.
Here’s the thing, most people using these products only used 1 or 2 key features. The products began to suffer from ‘feature bloat’ and big price tags. They’re became very complicated. No one cared about new releases. Little guys started to undercut us and take business away. In the meantime, the GREAT BIG software companies eventually caught up and put the basic functionality everyone used in their base products at no additional charge. I don’t have to tell you what it’s done to the customer base and stock price of my old company (or the company morale, or their hiring policies).
Thank you for a valuable reminder that sticking to your core business is important for any type, any size organisation. It’s not just about retail. The B2B market runs into real danger, too, when they forget the basics.
Some of those who have commented have referred to line-extension or adding more products and services to the core business.
I think it is important to identify the difference between adding new products and services because you want to broaden your inventory – to adding new products and services to improve the customer experience of the core business (or attract attention to it).
For example, putting a cafe in a book shop so that readers are encouraged to linger longer, meet each other, have a place for Authors’ Talks….may be a great way to enhance the customer experience and be (when you where the first) a great point of difference to buying a book in K Mart.
Renting out space in your retail store for a cafe chain to set up their own operations so that you can generate ongoing income and a %cut of sales – may in the early days add to the customer experience but may also skew the focus of your business, and steal space from what was it’s core purpose.
I think that businesses should look at how they can value-add to the customer experience to protect their core business and ensure that they “own” their market position. And that should be able to be done financially responsibly.
However, if your dress up ‘value-add’ when it is really “what else can we sell them” you damage the brand, confuse your audience, and lose the core.
I have a song in my head: It’s not what you do, it’s the way that you do it.
(And for Carbonite – if 15% want some add on features – I would be launching a new brand from the makers of Carbonite at a much greater fee that has those extra features).
Dear Sarah,
Thank you for an interesting take on the problems of Borders and A & R. I am a bookseller and you sound like our sort of reader!
You haven’t really mentioned the the current retail climate. For the last 18 months retailing and book selling in particular have been in a real slump. I saw Paul mention Readings (the Melbourne bookshop chain). I bump into Mark Rubbo (the owner of Readings)from time to time and he and I agree that we have never known such tough times. While the world of books is now available to anyone with a modern mobile telephone, I don’t think we can blame the Web for our troubles. Customers are just more cautious at the moment.
That said, Borders did take their eye off the ball and started to treat books like bars of soap – a recipe for disaster.
Serendipity is the wellspring of our business. We search far and wide to find books that we think will appeal to our customers.
Perhaps Paul will tell you how to find us?
Hi Tom,
Please, tell us where to find you. I’m out here in Perth but I know many of the readers of this blog are in your neck of the woods. Don’t hesitate to leave a link.
You’re right, times are tough for book sellers AND book readers. I know Kindle and other digital devices are taking some of the market share, too. (Who are these people that would forgo the pure tactile pleasure of a book? Now I’m starting something.
)
I do think the key to longevity is Bambi’s advice to never forget the customer experience. It seems simple but so easy to forget. The interesting thing is much of these decisions leading to the demise of the big bookstores were made during the boom time of the ’90s. Then no one was talking about anything but to spend the profits.
Leave your link so we can support you and your bookshop! Thanks so much for a personal insight into the current business climate.
Dear Bambi,
How did you get so smart? As I said in my previous comment, it all seems so obvious. Keep the customer happy and you’ll be fine. Make them feel like they’re there to service your balance sheet, you’re going to find yourself in a world of hurt. Any business, no matter how small, can take that advice to the bank.
You’re awesome. Thanks for your invaluable contributions to this discussion, both here and on your own blog.
Sorry Tom and Sarah, I’ve been in the field all day.
I’m delighted you saw fit to join our discussion, Tom. Thank you.
Sarah, here’s the link to the post I did on Clouston & Hall:
http://mybrc.myobnet.com/2010/12/07/hitting-the-books/
And here’s a link to their site:
http://www.cloustonandhall.com.au/CloustonAndHall/index.cfm
I’ve put out tarpaulins, in expectation of your drool.
Tom is a wonderful purveyor, whose amazing book selections have made me look good on many gift-oriented occasions.
I recommend his business VERY highly.
Best regards, P.
Hi Paul,
Thanks for that. You’re right, I’m drooling. I’m looking forward to stopping in next time I’m in the ACT!
Cheers,
Sarah
Dear Sarah,
We send out a catalogue every 4 Weeks and can deliver Australia wide. Simply send me an email with your details and we will add you to our list.
info@cloustonandhall.com.au
Hi Tom,
I’ve sent my details and look forward to seeing your catalogue. I’m very happy to buy from a local Australian business.
Interestingly, Berkelouw, an excellent Sydney bookshop group who started off with second-hand books and now do new and used have been adding gift lines to their space. They really know what they’re doing with books – fresh product and excellent second-hand selection, so their new direction would be very carefully considered.
As well as ‘gifts’, in their fairly new Newtown store (Sydney) a noodle shop has now opened in the back area – they’ve lost a bit of book space but those few square metres were probably under-performing.
I know my own book-buying behaviour has changed dramatically in the last 12 months – an aussie shop is where I find new product and then buy it from Bookdepository or Amazon UK. As an example, all the new cookbooks published by Australian chefs are invariably HALF price from the UK – this shows it’s the distribution model by local publishers that is broken, and local shops suffer from it. Paying $45 instead of $90 is an easy decision to make!
Interestingly a colleague who has an optician business now has the same problem – people try on the fancy Italian frames here, photograph the bar-code with their iPhone then order from OS. Retailing has changed forever…
Hi Ken,
It will be interesting to see how Berkelouw goes. I’m not sure I want to eat noodles while I’m reading a new book. The splash factor is a worry for a sloppy slurper like me. In Fremantle where I live, we have an excellent bookstore called New Editions. They’ve given over space to a vintage clothing store. Like you, I watch with interest. I don’t see the synergy the two businesses have for book lovers.
Part of the problem with expensive books in Australia goes back to the laws governing the publishing industry here. They’re designed to encourage new writers which I fully support. When they have to keep better track of their margins, the first thing to go out the window is funding for new authors and anything not likely to turn into a bestseller. In the end we all lose with that model.
Still, I do think there’s a puzzling problem with pricing in general. I know we’re a relatively small country and can’t expect the same ‘economy of scale’ pricing larger countries like the UK and the USA enjoy. I also realise we’re very remote ‘down under’ and it costs more to get products to us. Still, as our dollar strengthens, I would expect to see savings in the price of imported goods. Alas, nothing of the sort is happening.
Thanks so much for sharing your keen observations.
Last week I went in search of a book recommended to me. Jumped on the phone to both Borders and Angus & Robertson, both said – ‘Not in Stock but can order for you, will take 3 weeks minimum to get here’. But I could jump online to both the Borders and Angus Robertson sites and purchase, both of them had it in stock – but again had to wait 15 business days for delivery..???
Ok, so lets go have a look at Amazon – $US10 to purchase the book and get it within the week with delivery fee, which is still cheaper than the $35 being asked to purchase in Australia.
When I called Borders – she actually told me I would be better off buying it online. She didnt say “Online at Borders”, she said “Online”.
Now many would argue that the our local bookstores have been killed off because of cheap options from overseas, but as an owner of a Marketing Business – All I can say is… “People will only base their decision to purchase on price when no other reason to purchase from you has been given”.
Hi Matthew,
You raise an excellent point about purchasing decisions. It’s hard to believe Borders and Angus & Robertson didn’t jump through the proverbial hoop to get the book you wanted in your hands. Maybe they can owe customer service, or lack thereof, to their demise. Adrianne and Tom both gave us examples of independent bookstores hanging on because of their attention to service.
One reason America has such good service is because Americans shop with their feet. They demand it. I don’t see that in Australia. Whenever I mention this I’m always told it’s because Americans work for tips. Well, yes they do in restaurants and bars. But most Americans in service jobs don’t get anything extra. It’s ingrained in the business culture that good service earns business. I wish it was true here.
I frequently buy books at Amazon and wish they did have free shipping to Australia. Alas, that benefit is only for people living in the 50 United States, territories and Armed Services addresses. Still, you can get books shipped from Amazon in a couple days if you need it quick. As you point out, that’s not true with our local chains.
Thanks for your sharp observations. They’ve added a new dimension to a very robust discussion.
Hi Sarah
Yes, lack of service is a huge consideration but lack of thought has also gone into their demise.
If at the time I had called instead of saying ‘Book is not in stock – you will have to wait 3 weeks or go buy it online”, they had instead said “Mr Jones, its not in stock now – but I will order it for you right now and because we value you as a customer we will give you 5% discount off the book for having to wait. What type of credit card do you wish to use today”? Most people at that stage would grab their credit card and purchase on the spot over the phone.
You’re absolutely right, Matthew. In my view, what you’re describing *is* good service. It’s so much easier just to say, ‘Nah, it’s not in stock now.” It takes a real customer service mentality to solve the problem. I suspect most people would grab their card even without the lure of a 5% discount. Why? Because people buy things when merchants make it easy for them to do so.
Ha! That wonderful retail maven, Deborah Templar (@DeborahTemplar), just posted a link on Twitter saying specifically what Matt and I have been discussing, shoppers are interested in more than price: http://www.warc.com/Content/News/US_shoppers_go_beyond_price.content?ID=e589aa1c-9a56-4f5e-8eae-2a1e34c036b0
Sarah
What a great discussion.
for me customer service is the key.
I recently went to my car dealer to get a brake globe replaced ( large brand with rings in logo ) great young guy dealt with me and took my key and said take a seat 10 minutes. I walked of course thru showroom saw more dreams, emotions and passion. I approached a sales man and asked if a certain model was in stock. No he said ‘ like hens teeth they are’ then, then, then, nothing!
Not a question like “are you interested in buying one”
I got my keys back from the young service guy who indicated no charge after I asked how much. Great service
My point, like Borders, this dealer and brand who spends millions on showrooms and billboards fails in the basics of salesmanship and customer service.
I may have a new car if he had just realized I was a customer with needs and lifted his head and asked a simple question.
I may have a new car if he had of done a bit of homework and found one for me
great work Sarah
Mike Boyle
Mike!!
Oh my goodness, if I were the sales manager at that auto dealer someone would lose their job. The fastest way to make a sale is to ask the question, Do you want to buy? Of course, it needs a bit of finesse attached to it but I’ve had the same exact experience as you many times.
So many businesses view themselves as order takers. As small business owners, we need to be selling ALL THE TIME. You never know when someone might be ready to part with 6 figures as you so aptly point out.
Thanks for an excellent case study
Mike, that reminds me of when I went to buy my signature perfume that was advertised in a catalogue on special at my local chemist. I went in with the catalogue and asked for three large bottles.Hey, it was on special. Perfume is expensive!
I mentioned to the shop assistant how fantastic the deal was and did they have perfume ABC on special too as it was my sister’s favourite. I was promptly chastised by her quite harshly. She insinuated I was frivolous with money and did I really need THREE bottles of perfume, and now MORE for my sister as well! Girls these days! How dare I buy something advertised!
I left the bottles on the counter and didn’t buy anything. I reminded her that my ‘frivolity’ pays her wages, and that the point of advertising such a deal is to try and get as many people as possible to buy it. She really did make me feel bad about purchasing them and I left with a bad feeling like I’d been told off by a headmistress. I won’t be going back there. I hate to think of the money they spend on advertising, buying large amounts of stock to offer such deals and the catalogues, only to have it fail where it matters most: in the store.
I ended up going to Mariposa, a small perfume/skincare boutique in an upmarket suburb where I paid three times the price, but was also shown body lotion (which I also bought), shown how to layer the fragrance, and got mini samples of other things by the same brand and service with a smile, not a scowl. I’m happy to pay for that. ELKE.
Oh dear Elke, you’ve achieved the impossible. You’ve rendered me speechless. Your experience is a lesson to small business owners everywhere – we can never forget we have to continue selling and so does everyone in our organisation. Thanks so much for sharing a very frustrating case study on what not to do.
Just spotted this tweet from our @WinstonMarsh
‘Great Clouston & Hall book remainder sale 9 a.m.Fri 20/5 to 5 p.m. Sun 22/5 St Brigids Hall, 378 Nicholson St, Fitzroy North. I recommend it.’
Me too!
Interesting …
http://www.theage.com.au/victoria/booksellers-may-get-cheap-postage-20110528-1f9u4.html
Hi Paul,
This article is interesting but I doubt cheap or free postage would do much to stem the competition from Amazon. While we do pay a bundle to get things shipped here – the prices of the books from overseas vendors are so much cheaper it’s still a great deal.
I do hope something is done soon. In the meantime, the remainder books from Clouston & Hall remain an attractive option.
Hi Sarah. I agree it may be too little too late. Just as BIG RETAIL’s fight for 10% GST on online purchases was fiddling at the edges. As it stands, C&H seems an excellent local option.
Going … going …
http://www.theage.com.au/business/more-store-closures-loom-for-borders-angus–robertson-20110530-1fbrg.html
Now this makes me feel terrible. Borders was such a great brand and a wonderful business. I’m going to miss them.
I do wonder if the noise about pressure from online sales isn’t an excuse though. Amazon isn’t exactly the new kid on the block anymore and many other bookstores remain in business.
It’s a bugger alright. Who knows what goes on behind closed covers?!
A big shift appears afoot:
http://www.theage.com.au/business/why-big-retailers-should-embrace-twitter-and-facebook-20110602-1fhyi.html
A controversial prediction:
http://www.theage.com.au/business/booksellers-outraged-over-ministers-predictions-20110614-1g15n.html
Or is it?
Well that is an astounding piece of news. Maybe the good senator needs to read this blog so she’s better informed!
I don’t think online book sales are killing the bookstores. There are far too many bookworms who WANT to shop in a bricks and mortar business. Booksellers need to tighten their game, just like the rest of us.
I sure hope you’re right, Sarah. But with retail chains failing left right and centre, I’m becoming ever more guarded in my pronouncements.