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Member You - Your Own Franchisor's Marketing is Killing You: What Steps Should You Take?
When you are ready to start your own business and your thinking to yourself “What do I do first?” I recommend finding a good business lawyer. Lawyers are a scary bunch when they are after you, but on your side they are a tremendous asset. Their advice can save you a bunch of money in future costs. For example, the cost of litigation can cripple you if you are on the losing side of a lawsuit. A good attorney will be able to keep you out of the courts in the first place with their advice and this may save you your home, business and possibly huge settlements. Another example is your choice of business formation. Any lawyer worth their salt will tell you to avoid sole proprietorships and even wor
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the cu
1. As the old saying goes “Dress for Success”. Business attire only and be well groomed. Go easy on the Aqua-Velva and other perfumes. Haircut, shave, neat make-up, clean clothes without the wrinkles. In other words don't walk in looking like you just came from a night out.2. Don’t concentrate solely on the salary. Ask questions about the job itself, the company and industry.3. Show enthusiasm and interest in the job. If you don’t show these now, how are you going to be on the job?4. Make eye contact with the interviewer. You don’t have to be in a staring contest but don’t look away all the time either.5. Don’t be late to the interview.6. Don’t be late to th
I had not been in this outlet for more than 18+ months, and then only a few times. The owner-franchisee (let's call him Vijay for simplicity) was in the back; but the moment he saw me, he came out with a huge smile and said: "Hello Mr. double-cheese-sausage-and-mushroom...how are you?" He did not remember my name (if he ever knew it in the first place); but he remembered my face and my favorite pizza nearly two years later!
I was shocked and delighted at this. He remembered some of our conversations when we had talked about some of my franchising experiences over the years in six different countries; particularly my being the first to open a "Burger King" in Australia, and helping to launch KFC and Pizza Hut there too. I immediately asked him how things were going.
He grimaced and did not look happy. "I am now the owner of this store. They made me an offer I thought I could not refuse, and so instead of operating it for them, I now own it and I have lost several thousand dollars this year." I was astonished. This was a huge, successful pizza franchise that was famous for making money...lot's of it. I asked him how and why he thought this was happening. He answered with two reasons: the rent was too high (which it was when he confided in me just how much he was paying for this location) and more importantly, the constant discounting by way of couponing was killing him.
Additionally, other pizza outlets had opened up not too far from him and increased the choices for the younger demographic that patronize pizza places for the most part. He has a nice sit down dining area, a super-clean, efficient store, but a lousy parking lot with bad egress and exit. Now here's the point: the franchisor, in an effort to generate sales volume (remember how the franchisor earns his money, right?) will do anything (including lots of couponing) to pump up the sales on which he earns his royalties. Today "pizza" is an almost commoditized food service offering. To get that sales volume, they cover the marketplace with multiple coupons good for two-for-ones, price off, extra toppings, you name it. This is great for them at the head office...they make a percentage of gross revenue. But the little guy, the franchisee, has to pay his bills with what's left, AFTER he has paid the franchisor, food purveyors, staff and other bills.
Usually, the franchisee doesn't have much choice about honoring those coupons either. If they are being dropped in the local newspapers, online, or advertised on local television, if he doesn't accept them, his customers will go elsewhere and he loses a hard-won customer, perhaps for life.
What can you do in such a situation? It's like trying to compete with Wal-Mart on price. Don't even think of doing it. What you have to do is find another way to differentiate yourself so that you still get the business all the time when there are no live coupons out there. In other words, reality dictates that you can never really win on pricing, or discounting (which is what couponing really is). Anyone can drop prices. But you can do things that other competitors won't ever think about doing.
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the cus
One of the best things you can do to increase your career advancement opportunities where you work is to do more than expected.It's often not enough to just do a fine job and expect promotions now and then based on longevity. So find opportunities to show you can handle more responsibility or different duties than those in your job description.Here's one example from my own personal experience. I had a great job as the executive assistant to the general manager. But I often didn't have enough to do to keep me busy. I hate being bored, and I enjoy writing. So I began writing articles and submitting them for the employee newsletter, even though none were solicited.The editor
He grimaced and did not look happy. "I am now the owner of this store. They made me an offer I thought I could not refuse, and so instead of operating it for them, I now own it and I have lost several thousand dollars this year." I was astonished. This was a huge, successful pizza franchise that was famous for making money...lot's of it. I asked him how and why he thought this was happening. He answered with two reasons: the rent was too high (which it was when he confided in me just how much he was paying for this location) and more importantly, the constant discounting by way of couponing was killing him.
Additionally, other pizza outlets had opened up not too far from him and increased the choices for the younger demographic that patronize pizza places for the most part. He has a nice sit down dining area, a super-clean, efficient store, but a lousy parking lot with bad egress and exit. Now here's the point: the franchisor, in an effort to generate sales volume (remember how the franchisor earns his money, right?) will do anything (including lots of couponing) to pump up the sales on which he earns his royalties. Today "pizza" is an almost commoditized food service offering. To get that sales volume, they cover the marketplace with multiple coupons good for two-for-ones, price off, extra toppings, you name it. This is great for them at the head office...they make a percentage of gross revenue. But the little guy, the franchisee, has to pay his bills with what's left, AFTER he has paid the franchisor, food purveyors, staff and other bills.
Usually, the franchisee doesn't have much choice about honoring those coupons either. If they are being dropped in the local newspapers, online, or advertised on local television, if he doesn't accept them, his customers will go elsewhere and he loses a hard-won customer, perhaps for life.
What can you do in such a situation? It's like trying to compete with Wal-Mart on price. Don't even think of doing it. What you have to do is find another way to differentiate yourself so that you still get the business all the time when there are no live coupons out there. In other words, reality dictates that you can never really win on pricing, or discounting (which is what couponing really is). Anyone can drop prices. But you can do things that other competitors won't ever think about doing.
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the cu
Efficient teams work well together and when they do you can see the value in their force multiplier affect. You can see it in special teams in Championship Football Games, you hear about with Navy Seal Teams and you can certainly feel it in America’s Corporate Board Rooms.Of course the opposite is true when a new team lacks organizational capital or when Organizational Capital is being drained. When this happens it is time for Change Management. It is time to shape up or ship out the non-performers or those, which cause stress for the team and act like contestants on Donald Trumps “Apprentice” reality television show.You see really there is no room for that when in do or die situ
Additionally, other pizza outlets had opened up not too far from him and increased the choices for the younger demographic that patronize pizza places for the most part. He has a nice sit down dining area, a super-clean, efficient store, but a lousy parking lot with bad egress and exit. Now here's the point: the franchisor, in an effort to generate sales volume (remember how the franchisor earns his money, right?) will do anything (including lots of couponing) to pump up the sales on which he earns his royalties. Today "pizza" is an almost commoditized food service offering. To get that sales volume, they cover the marketplace with multiple coupons good for two-for-ones, price off, extra toppings, you name it. This is great for them at the head office...they make a percentage of gross revenue. But the little guy, the franchisee, has to pay his bills with what's left, AFTER he has paid the franchisor, food purveyors, staff and other bills.
Usually, the franchisee doesn't have much choice about honoring those coupons either. If they are being dropped in the local newspapers, online, or advertised on local television, if he doesn't accept them, his customers will go elsewhere and he loses a hard-won customer, perhaps for life.
What can you do in such a situation? It's like trying to compete with Wal-Mart on price. Don't even think of doing it. What you have to do is find another way to differentiate yourself so that you still get the business all the time when there are no live coupons out there. In other words, reality dictates that you can never really win on pricing, or discounting (which is what couponing really is). Anyone can drop prices. But you can do things that other competitors won't ever think about doing.
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the cu
A friend has informed you that there is a job opening in his office. You’re intrigued, especially since it seems as if it is time to move on from your current job. You immediately begin the process of applying for the position, drafting your cover letter and fine-tuning your resume.However, you’re forgetting a very important point. Before you do anything else, you should research the company you are hoping to work for.At first, you might wonder why such research is necessary. After all, research is time-consuming and can be difficult at times. Also, if you are planning to apply to more than one company, you may think you simply don’t have the time to do any research.T
Usually, the franchisee doesn't have much choice about honoring those coupons either. If they are being dropped in the local newspapers, online, or advertised on local television, if he doesn't accept them, his customers will go elsewhere and he loses a hard-won customer, perhaps for life.
What can you do in such a situation? It's like trying to compete with Wal-Mart on price. Don't even think of doing it. What you have to do is find another way to differentiate yourself so that you still get the business all the time when there are no live coupons out there. In other words, reality dictates that you can never really win on pricing, or discounting (which is what couponing really is). Anyone can drop prices. But you can do things that other competitors won't ever think about doing.
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the cu
I am going to relate this true story out of a sense of frustration. Hopefully, my experience, and disappointment at seeing a wonderful opportunity torched by sloppiness, will enlighten others to maximize the chance to succeed in their chosen endeavor. Great ideas need to be properly fertilized, cultured and harvested. Taking shortcuts always results in failure.My consulting firm reviews hundreds of new product ideas, inventions and small business projects each and every year. We have been doing so for over two decades. Very few of the deals we review ever become commercial realities. However, many more of these have real, exciting, but unrealized potential. That is the real shame.
For instance, look at how this independent franchisee remembered me and my favorite pizza. That ability to remember, attitude and posture is a "gift"...or one heckuva lot of hard work. This really impresses customers. There are a variety of things you might consider that are contained within this "label" that you might call "customer service". These are the tactics you need to employ to out-service your competition. People are always attracted to differences, not similarities. They already know by heart that when they come to this specific pizza outlet, they will receive the standard, similarly-produced, pizza that they would receive at every one of this brand's outlets.
Just like a Big Mac is a big mac is a Big Mac, all over the world. What you can provide is a wonderful, customized, personalized, HUMAN experience for the customer...one he seldom receives anywhere else. Most operators have been doing their routine job so long, they have commoditized their product and themselves and staff too. You can offer an alternative to that sameness. Offer friendliness, genuine smiles (not those "have-a-nice-day-stupid-empty-grin-smiles" that everyone knows means nothing that you get everywhere today). After each customer comes in, say: "Hey...thanks for stopping by today." Or you can try: "Hey...thanks for coming in today." They both work well. I know, I tested them with a major franchise client of mine more than a decade ago. Most important though, is to get rid of that "have a nice day" sound-like-a-robot crap.
This is not a rule just for pizza businesses. It applies to all small businesses, franchised or not. You can't do anything about the darned coupons, or the constant discounting; you are locked into a legal franchise agreement; but you can operate your business differently and this will help you compete more profitably. The other business variables seem to be fixed, but how you run your business on a day-to-day basis, depends on you.
© Copyright, Roy W. MacNaughton, 2006-7
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