Collaboration: Localization: Is Buy Local a Collaborative Effort?

Collaboration is an "in vogue" topic these days.  "Buy Local" is equally, if not more so, in vogue.  But we really need to understand that these efforts did not begin yesterday.

A newspaper is a collaborative effort being managed by the newspaper company local to the area the newspaper is delivered with each of the advertisers sharing in the cost to produce the newspaper leaving some extra money as profit for the newspaper.


A strip mall (or any mall for that matter) is a collaborator in that the businesses, through a management company / owner / landlord, share costs. From the parking lot, to the signage, to the walkways (common areas) - a cost sharing collaborative is taking place.  The businesses share more than that, they share customers; the customer may come for one specific purchase, but see all the other "opportunities" (other stores).  It is why businesses like to rent where there is a popular "anchor" store (like a large grocer); because they can ride the coat tails of the anchor and collaborate as a larger force.

Collaborating is much more than good business, it is business.

~B

Collaboration - Why Collaborative, Cooperative, Complimentary Sales Efforts Work.

Call it what you will, it’s all pretty much the same. Any time you can build a team of people who call on like customers, and refer those customers to each other, develop a win-win for all involved. It’s formalized/structured networking. BNI groups do this better, on a general business basis, than any others I have seen – they say “Givers Gain”. The giver, by making the referral, is building trust within the customer by recognizing a need and assisting outside their normal business scope. The customer, by receiving the referral has saved time by receiving it from someone they already trust thus shortening their search effort (even if they need to evaluate multiple suitors – one down).  Finally, the receiver of the lead - a warm lead - a sale that is theirs to lose. It still takes follow up with the lead and making the sale – Sales Is All About Numbers – I call this an easy number.

Collaboration multiplies your efforts, reduces risks and creates more opportunity - Why Pay Twice!

Don't play well with others? Learn.

Bob

Buy Eat Live Local

Localization - It's about Much More Than Printing.

Let's make this country a better place and there is no better place to start than in our own hometowns.

As anyone who follows this blog or knows the Time4 and LightsOn initiative; it is quite simple: Make Our Customer Succeed.  We are all about recreating local in a world that knows more about a Jersey Shore celebrity than their own neighbor.  Lets fix this by starting in our own home town.  The following three past articles give some background to this idea.

• Collaborative Marketing Efforts Make The Impossible - Probable. 
• Followup on "Who Me, Who Three - Fixing the Local Print Business" Can the Local Printer Survive?
• The Post Offices (USPS) Encore or the Beginning of the End

Over the last couple months we have been testing our "Buy. Eat. Live. Local." concept with the purpose of moving "Buy Local" from a lip service to a way of life - our lives and our future.  We have made the objective of "Buy. Eat. Live. Local." a product (evolving as it is) to help communities across the country by providing it to local entrepreneurs who, most importantly, live there, work there and buy there.  Have you ever been there?

"Buy. Eat. Live. Local." is the coming together of many environmental, business, social and economic factors.  One of the biggest factors is the forth coming re-urbanization of America over the next 20-30 years which I will be writing about extensively.  For those as old as I, think about it as Megatrends 2013.

How well grasped is this concept?

Here is the Town of Windham Maine's ad - a paid ad - giving 10 reasons why this just makes sense.  So Shop Smart and Shop Local.

 ....and here is what we say:

”Natural Communities Form Around Community and Commerce Centers”.

Buy. Eat. Live. Local

In almost all cases your Windham merchant will provide
Better Service at a Better Price with Less Hassle.

Why?  You know them – They depend on Windham people and they live in Windham.

Buy. Eat. Live. Local and watch Windham grow.

 This is not a concept coming to your home town, it's already there !!!

 

Followup on "Who Me, Who Three - Fixing the Local Print Business" Can the Local Printer Survive?

 There is an economy of scale that the local quick printer (franchise or independent) needs to have to survive.  Read my blog entry "Who Me, “Who Three” - Fixing the Local Print Business", it will provide some further background and insight.

The local printer's first issue is utilization of assets which means increasing it's business.  Since they have higher end and more capable equipment than the new competition (office product stores and postal stores), they have a bigger financial mouth to feed.  Reduced copy business revenue and traffic and then losing some of the higher end business to online printers has made this difficult and their future questionable. It will require some aggressive creativity for these businesses to continue as an ongoing entity.

The local printer needs to aggressively network to two groups, the graphic designer and the local postal stores and signing them up as partner/affiliates (sound familiar).  This will require very attractive commissions be paid to the partners; so attractive that they wont want to do it with anyone else.  As it is said in the venture capital business, "Do you want to own a percentage of something or 100% of nothing".  It's a strong argument.  This is one of those areas where I can tell everyone the answer, and for one reason or another (can't execute, too busy, don't have talents beyond retail, etc), its doesn't happen. Let's just say they need to begin to collaborate with each other more aggressively.

The franchisors should be all over this as they need to help (save) their franchisees.  BetaGraphics (our make believe franchisor) needs to do more than educate, but actually push their local franchise into partnering with local graphic artists and postal stores, basically offering satellite franchises (BizOps) and relationships to the local BetaGraphics.  These people are looking for a solution that the local quick printer has.

What you read is the why our business model at LightsOnGraphics exists.  A player needs to unify the fragmented local market or the local market will ultimately disappear causing everyone to lose; quality will suffer (as it already is) and prices will ultimately rise.

Bob Leonard
561-371-4113

Collaborative Marketing Efforts Make The Impossible - Probable.

One misconception I have found in talking to prospective partners and affiliates is that they think we are selling them a website - we are not.  We are simply partnering to bring local exposure (everywhere) to LightsOnGraphics.com in exchange for the local exposure of the partner and affiliate resulting in local foot traffic, additional revenues and commissions (commissions from LightsOn Graphics).

LightsOn Graphics' business objective is to increase traffic to the LightsOnGraphics.com website, and the local partner/affiliate to appear when the user traffic is in their locale.  It is not to drive traffic to (or from) a local area. The results and objectives are achieved through collaboration and not brut force.

Taking this approach gives the local printer and postal store a chance to compete for the market which is slowly being lost to the major online printer(s) as described in this past blog entry - Understanding the Changing Print Market. 

Bob Leonard

Why Branded Websites Don't Work With Any Business, Especially with Local Printing

Several of the larger trade printers will provide their customers with somewhat sophisticated websites for them to call their own.  There are several problems with these which are listed below.

1 - When there are more and more websites, especially websites that are both functionally and visually identical, the net result is noise in the market place (web market place).  The only people that are going to find these sites are people that the local printer tells.  This is a big negative in my mind as the job of the local printer is to service the local customer; sending the customer online is reducing service levels and introducing your customer to the online competition.

2 - Maintaining the website (just the prices) is a job in and of itself assuming the branded site allows you to determine prices.  If you have the time to spend on this, you may already be out-of-business.  My most commonly used 'line' for printers that say "We already have a website" is "how many orders have come in from your website" or "Have you ever had ANY order from your website?"

3 - Limited Product Line - Typically limited to the trade printer providing the branded site.

4 - Getting Traffic - As was pointed out in the first problem, you do not want to send your face-to-face customer to your website (EVER IMO).  SEO is a very very expensive process as it is a job, not a task - don't be sold SEO by the "expert around the corner"; in my opinion, 99% of the people that sell SEO are fraudulent and don't know the meaning...  Just my opinion ... as a friend of mine says, "tell me how you really feel...!!"  The other way to get traffic is Pay-Per-Click which is expensive, but very real; you will be competing with the big boys and you must position your products against the big boys to convert that click into an order.  Just a note, we estimate the cost of a converted lead in the printing business to be about $150 - How does anyone make money at it?  They do - maybe for some future blog entry.

Finally, I ask,  does anyone know a local printer whose website (branded from a trade printer, or their own home grown) makes them money?  I don't.  All I ever hear is people complaining (always off the record) about Vistaprint - sometimes they will spend 20 - 30 minutes telling me how Vista doesn't effect them - touch a cord..!!

What makes LightsOnGraphics.com different?  Follow me.

I need to start talking about the business rather than the business plan - soon.

Collaborating - Part One - Why Pay Twice - Getting Started

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The easiest form of collaboration comes in being able to share assets and ongoing resources.  What makes this easiest is that it requires the least level of trust with your collaborator.  You and your collaborator provide different services to different customers - the collaboration is on the back end; a shared office, a shared receptionist, even a shared lunch room or gym in the case of business with several employees.  The best example I ever saw of this was a shared kitchen between two totally different restaurants owned by two different restauranteurs; a high-end American Cuisine and a high-end Oriental Cuisine.

There have always been businesses organizing, managing and being made on this concept:  Executive Suites has always allowed for shared traditional business resources and common office areas.  "The Cloud" is probably the latest version or organized collaboration made into a business.

There are several stages to collaboration depending on what stage your business is in.  A start-up wants to conserve cash thus looks for shared assets and resources.  A more mature business may have empty office space, excess Internet/Telephony bandwidth or a receptionist they can share.  This form of collaboration is all about cost awareness and in many cases the first step in forming relationships that can go beyond cost awareness.

The key thing here is to remember that you should not go looking for these opportunities, as this is not what your business is nor is it what will make it successful (even though it will make it more successful), just have your eyes open and know they exist everywhere - and then take advantage of them when the occur - which they do all on their own.

The Time4 and LightsOn businesses are great examples of this as they have shared knowledge, assets and resources between the different companies - one of the reason we each can be so price competitive in the advertising, printing and technology businesses.  I believe this is actually the future of these businesses as the "McPrint" players can collaborate within themselves.  The Time4 and LightsOn offices match and beat the pricing of the "McPrint" players and more importantly, provide an expertise that benefits the buyer.  This is cost collaboration in its finest form.


Collaborating Part Two will be something I consider much more fun - about making more money by creating collaborative relationships that create more sales opportunities and sales.

 Back to "Collaboration and Collaborating; You Should Be" .

Stay Tuned for Collaboration through Collaborative Relationships.

B

Collaboration and Collaborating; You Should Be.

I need to go back into my early professional career to find my collaboration roots and knowledge source.  Large companies and smart people have been collaborating and training collaboration with their peers for as far back as my past brings me – even though they may not have called it such.  Collaboration is not a technical skill, it’s a mindset and attitude that can be used to more effectively achieve objectives.

Collaboration could be:

• Sharing business tools with a non-competing business; like a lawyer and accountant.  Benefit being half the capital needs.
• Sharing office space and costs with a non-competing business; like a lawyer and accountant.  Benefit being half the recurring cash needs.
• Sharing marketing and sales expenses with a non-competing business; like a lawyer and accountant.  .  Benefit being half the exposure and risk.
• Referring businesses based on their needs and your knowledge.  This makes you social and “in the know” by giving you the ability to talk to a prospect (not yours yet) about their needs and someone else’s expertise/service.  This goes to the point that people do business with people they like.
• Sharing clients and referring clients to collaborative partners.  This being possibly the most difficult form of collaboration, but also the one with the greatest potential return.

I will expand on each of these different forms of collaboration over the next week or two as I roll out my newest/latest business venture(s) whose objectives may not be apparent by “just looking”.

read Next: Collaborating - Part One - Why Pay Twice - Getting Started

B