L.L.

Bean: "Sell good merchandise at a reasonable price; treat your customers like
you would your friends, and the business will take care of itself."

Long Live the Mom and Pop: Why Small

Businesses Have a Magic Touch
The saying “bigger is better” doesn’t always hold true. Take for example those old, huge
brick cell phones that lived in the trunk of your car circa 1990. Though I never got the
opportunity to see these mammoths in action (I’m far too young for that) my parents tell me
stories of pulling over on the side of the road, popping the trunk and unzipping the briefcase
the cellphone was housed in all to make a simple call. I’ll gladly take my much smaller
iPhone4, thank you!

Not a techy guru? Then let’s use cars as another example. Bigger cars are not necessarily
better, either. Think about finding a parking spot for a Mack truck! Thanks but no thanks. I’d
much prefer driving my Jeep Liberty. Or how about in the instance of food? While the
thought of sinking your teeth into a huge burger with mounds of fries may sound tempting,
you must remember your eyes are often bigger than your stomach. Large portions of food
aren’t always better because that “I’m so full I could burst” feeling isn’t a pleasant one. I’d
much rather take a portion size that was just right so as to avoid busting at the seams (and the
temptation of extra calories) when I can’t clear my enormous plate. This theory that bigger
isn’t always necessarily better can be applied to retail examples as well. Let’s take a
look:

Boutique-themed shops are popping up everywhere I look. Bed and breakfasts are gaining
popularity as they compete against large chain hotels. Why? Because small bed and
breakfasts and privately-owned shops not only offer character and a unique experience but
they also embody that “make yourself at home” atmosphere. And that’s exactly what
travelers are looking for – a home away from home!

Personalized service, ambiance, and competitive beverages give bigger chains a run for their
money.
The restaurant industry is taking this boutique-y lead as well. Many privately-owned cafés are
now stealing the spotlight of chain stores such as Starbucks and Caribou Coffee. I saw this
theory in action during a recent trip to Los Angeles. While I consider myself a loyal
Starbucks fan, I noticed the trend of L.A. natives retreating to local cafes almost religiously in
place of Starbucks. It didn’t take me long to figure out why, though. Smaller boutique cafes
offer a personalized experience from the moment you walk through the door.

While I don’t fault Starbucks for their atmosphere at all, the ambiance at these smaller local
coffee shops is just THAT much more appealing. Added to the atmosphere, the customization
of beverages even outdid Starbucks’ millions of options! Then, to round out the personalized
experience, café waiters hand delivered your beverage once it was ready, which was a
welcomed change from simply blurting out the order number as it happens in coffee house
chains.

Finally, even America’s largest supercenter is scaling down: Wal-Mart has announced plans
to scale down their sprawling establishments so as to cast a larger appeal to communities
around the nation. Wal-Mart, which has received endless criticism for their expansive
buildings, is going to start new store concepts over the next few years. Instead of building the
enormous supercenters (which average 187,000 square feet), Wal-Mart will be featuring
smaller versions which average 40,000 square feet. Hopefully this will be a step in the right
direction for this discount retailer. Personal attention and customer satisfaction is
something that is becoming increasingly more popular and Wal-Mart would be stupid
not to accommodate those interests!

What’s the take away from these scenarios? You guessed it: bigger isn’t always better.
America is moving from large chains – which don’t offer much in the way of showing their
customer appreciation – and more towards smaller establishments that take a vested interest
in the wants and needs of shoppers. The individual attention small businesses offer make the
experience more enjoyable and consumers around the country agree. Time to ditch the bigger
is better attitude and get with the program: smaller is actually better!

Generally, there is a direct correlation between company size and customer satisfaction. That is, the
larger the company, the lower the overall customer satisfaction. After all, when you are a giant it’s
hard to service everyone, and in some cases practically impossible. Their business model is not based
on making everyone happy, but rather making JUST ENOUGH people happy. This philosophy is
significantly different than that of a small shop or business, in which every dollar counts. They may
sell products, but what they are really selling is an experience. With the rise of exacting customer
specifications, it’s no wonder why the demand for boutique-size businesses are booming.

This is a great reason why small businesses of any type, should be more forward-thinking when it
comes to advertising. No, you probably can’t afford a TV or radio ad. No, you can’t afford a billboard
that most people won’t even look at anyway. BUT… you CAN afford 1,000 pens with your company’s
name on them that will undoubtedly change hands a few times before they run out of ink. Residual
marketing (promotional products) is, in many cases, much more effective than the typical forms of
mass communication-style marketing that many people may think are the most effective. In reality, a
logo-imprinted water bottle, refrigerator magnet, stress reliever, or any number of thousands of
different items is WAY more effective, targeted, and personal. I used to think direct mail was the
best way to target a specific audience, and as much as it does have it’s advantages, it doesn’t put a
company name or logo in your face several times a day. There is also something to be said (quite a
bit, actually) about the emotional aspect of marketing, especially when it comes to promotional
products. I’ve gotten some pretty cool ones as gifts before in the past, and I’ve gotten some pretty
bad ones too! At the end of the day, the carabiner I got from a local pizza place with their name and
phone number on it was lost as soon as it was given to me (nor am I climbing mountains any time
soon), but I’ll never forget how I felt when the guy across the counter thanked me for my business
and handed it to me with a smile. In my opinion, there is no other form of advertising/marketing
that will ever go further than that, in terms of a business truly showing a customer how valued they
are. That is what will keep people coming back again and again. There will always be the Wal-Mart’s
of the world, but they can’t sell everything, and they also can’t put that kind of smile on my face.

In these tough economic times, it’s more important than ever to support your local economy by
purchasing as much as possible through local businesses and keep the money in your own
community. Sometimes the cost is more, but if it’s not a huge difference, I think it’s worth it. We
should all think about why China is the only country that is really prospering right now…maybe
because we keep sending them all of our money through these big box-mart’s??? Food for thought.

When considering improvements to your store's design, it is best to start outside. This means an
attractive storefront and signage. The outside of your business is what the customer will see first, so
it makes sense to focus on exterior improvements before making interior improvements. If your
signage hasn't been updated in the last decade, you just might be giving your potential customers
the impression that you are outdated and behind the times. For example, would you get your hair
cut at a salon which had a sign that looked as though it was made in 1972? Would you expect to
receive a modern hairstyle? Probably not.

When considering improvements to your store's design, it is best to start outside. This means an
attractive storefront and signage. The outside of your business is what the customer will see first, so
it makes sense to focus on exterior improvements before making interior improvements. If your
signage hasn't been updated in the last decade, you just might be giving your potential customers
the impression that you are outdated and behind the times. For example, would you get your hair
cut at a salon which had a sign that looked as though it was made in 1972? Would you expect to
receive a modern hairstyle? Probably not.