Scribe/Convener: Troy Lucas Beyond A 11:45
Attendees: Deb Rhizal, Sam Nickels, Eddie Bumbaugh, Alexis Morehouse, Justin Creasy, Lori Clouse, Bill Ney, Mary Post, Troy Lucas
CONCERNS FOR LOCAL BRICK AND MORTAR STORES IN A RECESSION
Competing with big box stores:
- buying power advantages
- marketing budgets
- ability to offer “all things” under one roof
Maintaining mom and pop shops:
- simply generating the walk-in traffic needed to pay overhead of store
Providing competitive online marketing strategies:
- Giving an older generation of business owner the knowledge s/he needs in this rapidly changing time of online/electronic marketing
- Website creation is expensive and upkeep is time consuming for businesses without professionals to handle this arena
Financing options for small businesses:
- “Lacking” is currently the best term for the situation
- Even existing businesses having difficulty receiving capital when needed
- Much creativity needed to bring in funding (ie, the Friendly City Food Coop – funding received from numerous directions)
Cost of doing business is rising:
- Loss of walk-in traffic to online shopping hurts brick and mortar retailers
- Overhead costs (electricity, fuel, insurance, etc) all continue to go up whether customer support does or not
General store vs. specialty store mentality:
- Many small, local businesses specialize in something, but groups sees trending towards population spending being directed to a store with numerous specialties vs. one or two focuses
How to communicate the value through marketing or advertising?
- With an emphasis on “low pricing” being predominent after the introduction of “big-box” chains, it seems people are now seeking out price over value and/or knowledge of the person/store selling the item
- Advertising is expensive and selling a “relationship” with a business owner and staff is much harder these days than it used to be
Energy of owners/operators and pessimistic attitudes:
- Pessimism is easy to come by in anyone that owns a struggling business, but this is a surefire way to drive away clients if shared with them
- Business owners typically found to be highly energetic people willing to do anything to attain goals, but current state of the economy is crippling many businesses beyond viability
IDEAS THAT FORMED FROM DISCUSSION
Cross promotion with complimentary businesses:
- Instead of the former competition between similar businesses, it is now imperative to look for relationship building
- Finding complimentary businesses (flooring store and home furnishing store) that can make referrals to each other is crucial
- Area businesses (downtown or small town) getting together to provide promotions when a coupon is presented to Ex: (5 out of 20) local businesses for use.
Providing educational services and capitalize on expertise:
- Using available stores and area experts to present educational tools for use by their customers
Joint promotional campaigns city wide/region wide (ex: 3/50 program):
- Area businesses (downtown or small town) getting together to provide promotions when a coupon is presented to Ex: (5 out of 20) local businesses for use.
- 3/50 program = spending $50 locally each month amongst 3 businesses that you value and deem important to brick and mortar community…Google “3/50 program” for greater details
Collaborative programs (ex: computer programmers that provide free software ‘for the greater good’ – youtube, open office software)
- Getting people to understand the “greater good” concept of local community and that a community is stronger when united than when divided
Customer membership programs
- Buying into either a store membership program where the upfront money for membership allows store greater flexibility by having more operating capital OR creating networks of stores that allow “buy-in” to a joint program…again creating operating capital to be shared.
This was a FANTASTIC group with very deep observation and analysis of the current economic situation facing businesses. We hope this insight is helpful to any readers!
Contact Troy Lucas troy [at] lucasroasting.com
