Jonathan Kranz is the author of Writing Copy for Dummies and the principal of Kranz Communications, www.kranzcom.com. He may be contacted at jonkranz@kranzcom.com.

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T R E N D S

Haggling is back in style 

Imagine walking into Home Depot and asking for a better deal on that power washer. Not possible? Think again.

A bargaining culture once confined largely to car showrooms and jewelry stores is taking root in major stores like Best Buy, Circuit City and Home Depot, as well as mom-and-pop operations.

Savvy consumers, empowered by the Internet and encouraged by a slowing economy, are finding that they can dicker on prices, not just on clearance items or big-ticket products like televisions but also on lower-cost goods like cameras, couches, rugs and even clothing.

The change is not particularly overt, and most store policies on bargaining are informal. Some major retailers, however, are quietly telling their salespeople that negotiating is acceptable.

John D. Morris, an apparel industry analyst for Wachovia, said that the ailing economy was not necessarily forcing all retailers to negotiate. But he says he believes that when there is an opportunity for negotiation, the shopper has the upper hand.

So does that mean you should allow haggling in your store? For big businesses, the strategy is probably without significant risk, simply because of the sheer volume of shoppers they serve and their ability to absorb thinner profit margins on a relatively few number of sales.

For small businesses, it’s a different story. Most small firms cannot compete on price alone, and there’s little proof these days that lowering prices buys customer loyalty. That’s not to say that some negotiation isn’t prudent in bad times. The question is how much before it sends the wrong message and prices you out of the ball game altogether?  

Sources: New York Times, March 23, 2008; The Wall Street Journal’s Independent Street, March 24, 2008  

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N E W S

New websites help with appointment booking 

The e-commerce bandwagon bypassed millions of lawyers, doctors, carpenters, massage therapists and other service providers, mostly because it is impossible to drop an appointment into a shopping cart without unleashing a scheduling nightmare. However, a set of Internet startup companies has emerged to help solve this problem, and small businesses could start using the Web as more than just an online brochure.

Service providers spend a considerable portion of their work time playing phone tag and emailing clients who would like to book an appointment. Now, online companies, such as HourTown and GenBook, are offering online calendar tools with a twist. Service providers fill the calendar with personal and business appointments, but they can also transmit to the Web any blocks of time they would like to make available for business appointments. Customers can book a time directly from the service provider’s website, or they can reserve a slot and wait for confirmation of the appointment by email.
 
Free versions are available from both HourTown and GenBook, or for more features, service providers can upgrade for a monthly fee.

One weakness in the online booking model is that businesses with more expensive services, and their first-time customers, often need to speak directly to determine what type of work is required and to establish a price. However, in most cases, the added convenience for businesses and clients alike will outweigh any pitfalls.

Source: International Herald Tribune, March 31, 2008 

Newspaper ads drive online research, store sales 

Is newspaper advertising getting a bum rap these days? According to a recent Google study conducted by Clark, Martire & Bartolomeo, print newspaper ads reach people at all stages of the buying cycle — inspiring Web research at the beginning and prompting in-store or online purchase at the end.

The study found that over half (56%) of Internet-using newspaper readers researched or purchased at least one product they saw advertised in the newspaper in the last month, with a 30% overlap between the two groups. Of those who responded to a newspaper ad by going online, 47% went directly to a URL they saw in the advertisement, while 31% chose to use a search engine.

Furthermore, some 48% of respondents said they would trust the product more if they saw it in the newspaper after seeing it online, and over half (52%) said they would be more likely to purchase that product.

Finally, the majority of respondents noted that newspapers are more useful than the Internet for learning about promotions, deciding where to buy and when to buy.  

Source: MarketingCharts.com, April 21, 2008 

Merchant cash advance: a risky finance option 

In a tight credit market, businesses sometimes take funding wherever they can find it. But money that seems easy now may prove extremely difficult later. That’s especially true with a fast-growing and risky new product for businesses, the merchant cash advance, or MCA.

Also known as credit and receivables financing, an MCA is essentially the business equivalent of a payday loan. A business owner is advanced a cash sum — usually less than $150,000, often within a week and without the paperwork or collateral required by banks. The merchant agrees to pay back the principal plus a fee, which is typically at least 25% of the total amount advanced but sometimes much more. The MCA provider collects the money by taking a portion of credit card sales until the debt is paid.

Ideally, MCA providers offer companies with few financing options a quick, easy way to find funds in a cash-flow emergency. Some entrepreneurs like the arrangement because it allows them to repay less when sales are slow and more if revenue picks up.

But it’s a pricey form of financing. Most business owners complete repayment within six months, so paying a 25% fee is equivalent to taking out a loan with an annual interest rate of 50% or more. And while traditional banks are regulated by several state and federal agencies, MCA providers are not.  

Source: Inc. Magazine, April 2008 

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T I P S

• Do your advertising messages fit with the current economy? As consumers grapple with doomsday headlines, it’s important that you adjust your advertising accordingly. Why? There is scientific evidence that when consumers don’t get information that matches their expectations, they literally can’t see it. Right now many people are moving into fear mode. Experts say to steer clear of messaging that is aspirational, optimistic, lighthearted or patriotic. Instead, marketers should offer reassurance, empower the consumer and emphasize value, not price. Once consumers accept and get used to the recession, they’ll begin looking for distractions. At that point, messages that invoke humor, promote escapism, emphasize affordable indulgences and even take a shot at authority will likely be well-received.

Source: www.adage.com

• You may be tempted to email to inactive clients, but be careful. Customers that haven’t responded to your emails within one year are much more likely to hit the spam button when they get your message (even if you have an opt-out link). While contacting inactive clients may be a good idea for direct mail, using the same strategy with email can get you blacklisted.

Source: www.directmag.com

• Although outsourcing is a great way to grow without taking on extra staff, it’s important to protect yourself in case things don’t work out. Be sure to carefully choose your partners and clearly lay out expectations in your contract along with a method for conflict resolution. Test the waters by including a probationary period. Check references and even ask for a credit report. If you’re concerned about protecting intellectual property, consider splitting up projects and outsourcing piecemeal.

Source: www.businesstn.com

• Be careful how you advertise a sale price. “Regular price: $599; Now: $399” is a common sight in ads. The technique is supposed to influence consumers to take advantage of the reduced price — or to at least head into a sale. However, research shows that putting your product on sale for cheap can actually make consumers perceive your product as, well, cheap. What to do? Make sure to include a time-limiting component to the promotion (e.g., “for 3 days only”). In one study, consumers in the market for a product had more favorable perceptions about brands that were on sale and had a time-limited offer than they did to the same brand at the regular price or the sale price. Sales announcements coupled with time-limited offers also created more favorable perceptions for people who were not in the market for the product.

Source: www.marketingprofs.com

• Watch out for credit cards that look like they were created by Dr. Frankenstein. Thieves are now testing random combinations of credit card numbers on online stores or by calling a verification service. When they find one that works, they shave off numbers from gift cards and paste them onto a counterfeit credit card. They damage the magnetic stripe, forcing the store clerk to manually enter the numbers. The cards are obvious to spot, but many merchants are letting them pass.

Source: www.oregonlive.com

• If you’re finding it hard to tackle those little marketing tasks that, when done day after day, make a big difference, try this tip from marketing expert John Jantsch. Create a scorecard with no more than 10 marketing-related action items on it. Rate each of those items for importance. For example, give a new sales presentation five points and a new blog post two points. Now, set a goal of 20 points every day. By turning your little marketing tasks into a game, you stay focused on completing important actions. This concept can apply to every person in your organization. In fact, spending the time to figure out the most important small actions each of your staff should take on a daily basis could be one of the most valuable tasks you can undertake.

Source: www.ducttapemarketing.com

• Get more mileage from your marketing with high-impact online marketing tactics. Some actions can generate leads for you long into the future. Some examples: 1) Getting recommended on a government, magazine or university website — search engines rate such links as highly credible. A link from one of these sources can bring in traffic and leads for years to come. 2) Issuing keyword-rich press releases, another credible move where search engines are concerned. 3) Posting articles for distribution by ezines and webmasters. 4) Posting content that many colleagues will link to. 5) Tweaking Web pages for improved search engine traffic.

Source: www.yudkin.com

• When workers take “mental health” days, don’t assume that it is because they are lazy or not committed to their jobs. New research by ComPsych reveals that it may be a signal that they are overworked or in the midst of a family or relationship crisis. The study found that most workers who take a day off when they are not physically ill are doing so because they need to re-energize themselves and regroup mentally. You can reduce unexpected days off by encouraging employees to take regularly scheduled vacations and unplug from work.

Source: www.management-issues.com

• What’s the best way to ask for a referral? First, rather than asking right after you’ve made the first sale, wait until you’ve earned their trust by delivering successfully on your initial promise. From there, ask when the “feeling” of the business meeting has the flavor of a meeting between friends rather than a formal interaction between sales rep and customer. Be specific about the type of referral you’re seeking. Rather than asking for a name, ask the referrer to call or email the prospect, and then ask him to get back to you to confirm that the action has been taken. Finally, thank the customer the following day for the referral (it doubles as a gentle reminder).