J C Penny Will Disappear in 2014

J.C. Penney Co. Inc. (NYSE: JCP) has been in trouble for some time. Those who still believe in its future as an independent retailer point to the company’s ability to get a loan of $2.25 billion from Goldman Sachs and other investors, secured primarily by real estate and leases. That money, optimists claim, will last until CEO Myron Ullman can turn the company around. Ullman recently has returned to the company’s top job.
On the other hand, many believe the company cannot come back from the unprecedented sales losses it has suffered in recent years. The industry is very competitive, both at brick-and-mortar stores and online. Big-box retailers from Walmart to Target and successful department stores such as Macy’s are larger than J.C. Penney and are growing. At the e-commerce level, companies such as Amazon.com and eBay, are gobbling up market share. Amazon has done damage to retailers much healthier than J.C. Penney.
Even in a less competitive environment, a J.C. Penney comeback could not be sustained. For the year ended February 3, the company reported that comparable store sales dropped 25.2%, revenue fell 24.8 % to $12.985 billion and Internet sales were $1.02 billion, a plunge of 33% from the previous year. While the most recent quarter was considered an improvement with sales down 16.4%, in reality it was nothing more than a brief reprieve. There is absolutely no reason to believe that J.C. Penney’s prospects will improve.
By Douglas A McIntyre

Unusual September Holidays

These are real holidays that you can use in your business for fun and profit.

 4 Newspaper carrier day
 5 Be late for something day
 6 Read a book day
 8 Pregnant woman day
 9 Teddy bear day
 12 Video Game day
 13 Helicopter day
 15 Born to be wild day
 17 Citizen's day
 21 Miniature golf day
 22 National dear diary day
 23 Checkers day
 24 National Cherries Jubilee day
 26 National good neighbor day
 29 National goose day

Meet With Employees

If your business has 3 or more employees or associates you need to meet with them at least once a month. There are may issues that can't easily be discussed or resolved during regular business hours and this will give everyone a chance to  talk.  These meetings can even be called get-togethers to make it more casual but the purpose is really business. It is a chance for employees to recall situations that came up and ideas to handle them in the future.

Management can explain anything new and review areas that need improvement. But the best meetings will let the employees speak more and get out anything bothering them or offer new ideas. It also can build company loyalty and a chance for one person to help another. Many of these employees deal directly with your customers and clients so you want to hear from them. You may be surprised at some of the great ideas that come from these meetings. These meetings should be a "must attend" event to most effective.

Barry is a business advisor that helps medium & small businesses grow. www.idealetter.com

Tips for Traveling With Kids

1. If you are taking a road trip, plan your stops ahead of time. Choose locations that might have something interesting to do that will break up the trip for the young ones you have in tow. Ideas include choosing rest-stops that have parks and play areas for the children, or finding an exit with a neat tourist attraction such as “Mystery Spot” or “Largest Ice Cream Cone in America.”
2. Pack plenty of snacks, and make sure you have a variety of treats stashed away. While road trips are often a good excuse to junk out, your children will feel better and happier if you throw a few healthy treats their way. Whole grain crackers, bananas, yogurt and rice cakes are good snacking options for the car. Of course, a stop at their favorite fast food restaurant along the way won’t hurt either.
3. Keep things interesting. Allow your children to pack their tablets, iPods and gaming devices, but also give them unique non-electronic games to play. Provide them with a United States map and have them check off the different license plates they see along the way, or play a family game of 20 questions while you are on the road.
4. Choose a family-friendly destination that your kids will enjoy. Walt Disney World in Orlando, Florida is always a viable option, but there are other destinations such as Williamsburg, Virginia or San Francisco, California that are packed with plenty of things for your children to enjoy.
5. Plan your trip so that there is something special for everyone in the family. If your son is a history buff, plan a stop at a local museum near your destination. If your daughter loves everything about the outdoors, make sure to schedule in a nature hike. Your individual children will feel appreciated, and this gives everyone in the family an opportunity to try something new.

In the moment, your family vacation might seem frustrating and stressful. It’s important to remember, though, that your children are making memories that they will savor for a lifetime. Try to enjoy each day of your trip for what it is — you’ll be reminiscing of this trip in the years to come, and the mistakes will make for lots of laughter in the future. You only have a few special years when your children are young, so make the most of your family vacations while you can.

From the World Tourism website

Keep Networking

I go to several different networking groups each week and only belong to one or two. You never know who you will meet that was not there before. When I see someone I don't know I immediately approach them, offer my business card and ask for theirs. I have over 1000 business cards from these meetings and I group them by the meeting I got them from. When I am speaking at a business meeting I send an email inviting them to attend, I like a bigger audience.

You may not get much new business until you attend meetings for a while and get known as an expert in your field. About two-thirds of the people I meet just try to push a sale on me rather than building a relationship. Those are the ones I probably won't buy from or send referrals. I always try to find out who the speaker is and attend the meetings with someone I want to learn from. At most meetings you can be a guest a few times before you must join and others you can come anytime you want and be a 'semi-member".

Don't say you don't have time to attend networking meeting because they are important to your business awareness and growth. There are meetings at different times for your changing schedule so find one or two that work for you and GO. When you find a group you like offer to speak at a future meeting on what you are an expert and offer useful ideas. You will soon be remembered and referrals will start coming. "People do business with people they like".

Barry is a speaker, author and business advisor www.idealetter.com

Eleven Marketing Mistakes

Business owners and managers get so wrapped up in day-to-day activities and challenges that sometimes they forget about marketing. To grow the business you must keep marketing on your mind all the time. Here are some ways that entrepreneurs get off-track.

 *Don't lose focus on your goals
 *Don't try to outsmart the market
 *Don't underestimate repeat business
 *Don't ignore marketing & promotion
 *Don't take customer satisfaction for granted
 *Don't overlook test marketing
 *Don't give up on publicty
 *Don't ignore competitors
 *Don't disregard market changes
 *Don't stop being street smart
 *Don't just sit in your comfort zone
 *Don't stop networking

Barry is a business speaker, international author and assists people starting and growing a business or franchise.  www.idealetter.com

How Often to Send Business Emails?

One question I frequently get is about the timing of sending emails. “When do I send emails to get the biggest impact?” is generally the question. Does it make a difference when an email marketing campaign is sent? The short answer is yes.
You will likely see different results based on day of the week, time of day and even seasonally. Of course differing industries will see varying results as well. Let’s look at how when your emails are sent makes an impact.
Time of Day
A MailerMailer’s Email Marketing Metrics Report from last year suggests that emails sent very early in the morning have a better chance to get opened than those sent later in the day. In fact by early, they are suggesting extremely early, like midnight to 3am. Their research, and that of others, strongly suggest scheduling your emails so they are received by the recipient’s first thing in the morning. Emails sent after mid to late morning have decreasing chances of being opened. With that thought in mind you should also consider your particular list. If your list doesn’t contain “normal” 8am-5pm working people, you may wish to try different times.
Day of the Week
When do you send emails? The Email Marketing Metrics Report also suggests that if you want to increase your chances of email success, send your emails out earlier in the week. While not a dramatic difference, success rates gradually drop as the week progresses. Saturday’s are a day to avoid altogether. Some marketers will avoid Mondays, just due to the sheer volume of accumulated weekend mail, but research indicates that Monday is still a good day to send.
Time of the Month
Many marketers believe that sending out emails at the beginning of the month is good practice. Perhaps this is because many government checks go out at that time. It may also be because many emails are themed monthly and with the change of a calendar month there is new reason to send an email. What effect the time of the month that your email is sent will have will depend on your product and your audience.
Seasonally
Traditionally warm weather months see lower response to email campaigns, but I believe this area is the one most affected by the type of business you are promoting. If you have been in business for any length of time you already know your “seasons” for the greatest activity. Keep in mind though, if you give your list the right reasons it can help your seasons!
By Kevin Woodcock

Why Your Business Loan Was Rejected

Many entrepreneurs that apply for loans at banks and other financial institutions get rejected for a variety of reasons. Be sure you are prepared for the following rejection reasons.

 *Incomplete loan proposal/documents
 *Unrealistic expense forecasts
 *Lack of needed collateral
 *Underestimated capital requirements
 *Poor or incomplete business plan
 *Applying at too many lenders at the same time
 *Little or no business experience
 *Overstated revenue and sales projections
 *Can't explain their target market
 *Cash flow projection doesn't support repayment
 *Borrower argues with lender representative
 *Poorly dressed or sloppy presentation
 *Can't support document figures
 *Trying to enter a dying or shrinking industry
 *Poor communication skills
 *Unable to explain use of funds properly
 *Refuse to sign personal guarantee

Cover these points in advance of meeting with the lender and speak to them with assurance. If you are not completely confident in your plan how can they be?

Barry is a speaker, international business author and helps people start and grow a business or franchise. www.idealetter.com

Network Correctly ?

I go to many business and networking group meetings, several every week, and I am amazed at how many people don't present themselves correctly. We are all there to spread the word on what we do and hope that others there will remember us when a referral comes along. Building our business or organization is why we spend the time and money to participate at all. But if it's all one-sided. are you really getting any benefit and should you continue to attend?

When talking to people at these meetings I notice that many (not all) of them can't wait to rattle on about how great they are and why you should buy or refer people to buy their products or services. With some of them it's hard to get a word in before you have to go on to the next one; are they afraid you might challenge what they said. I like when people challenge what I have said because it gives me a chance to respond or figure out how I can better present myself.

The correct way to network (in my opinion) is to have a discussion, not a sales pitch which many times just goes in one ear and out the other. Find out about the person first, then what they do, sell or promote. If I am not comfortable with the person I could never be optimistic about what business or organization they represent. If they don't give you a chance to explain what you do in the first 2 minutes maybe it's time to tune them out and move on. Networking can greatly increase your business, IF done the correct way. I would like to read your comments on this.

Barry is a business speaker, international author of 6 business books, and helps people start and grow a business or franchise.  www.idealetter.com

Business Lease Do's & Don'ts

Before signing a lease for your business office or retail space consider these ideas:

DOs

 *Look at several sites before deciding

 *Check zoning and codes for the space

 *Have all extra agreements in the lease

 *Have a lawyer or legal service review the lease

 *Read the lease yourself

 *Check demographics id a retail space

 *Check signage rules before executing the lease

 *Get a trade-up escape clause

 *Ask for 1-2 months free rent

 *Negotiate a lower rent rate

 *Request 24/7 access with heat & A/C

DON'TS

 *Jump at the first place you like

 *Take the cheapest rent you find

 *Believe everything the renting agent tells you

 *Personally guarantee the lease

 *Be rushed into a decision

 *make a deal only with a handshake

 *Ask for unreasonable things

 *Forget to ask about any permits or licenses you may need

 *Let the potential landlord bully you

Barry is a business speaker and advisor that helps people start a business or franchise. www.idealetter.com

"Can We Talk?"

Joan River’s TV show in the 1980s was titled “Can We Talk?” That’s what small business owners should be saying to their customers on a regular basis, but often don’t. Lack of communication is a major cause of lost business opportunity and disgruntled customers.

Missed business opportunities
Satisfied customers are repeat customers and a referral source. Yet many businesses owners fail to follow up with customers to see if they need any additional services from you or whether they can refer you to other customers.

Suggestions:

• Create an anniversary for each customer. This allows you to schedule a follow-up and ask for additional business a year (or even quarterly) from the completion of a sale. For example, if you designed a brochure for a customer, one year later contact the customer to see whether the brochure needs updating or if the customer has a new job for you.

• Ask for referrals. Do this when you finish a job and the customer expresses satisfaction.

Customer problems
It amazes me how many customer relations problems could easily have been avoided if only there had been better communication from the outset.

It’s not up to the customers to track you down, but to businesses servicing them, to explain what’s going on.

Common problems and what to do about them:

• A delivery person is running late. Things happen, such as traffic or a longer appointment earlier in the day. Just call to let the customer know that the promised time of arrival will be missed and what the new arrival time is expected to be.

• A delivery will be late. If you don’t receive items when you expect them, you can’t deliver them to your customers on time. Again, just let the customer know the problem and when you expect to resolve the problem.

• A personal problem arises. This can put you behind the eight ball with respect to meeting customer needs. Everyone understands that things happen, but you have to explain your problem. Maybe it’s minor and temporary; maybe it’s so big that you won’t be able to satisfy your customer no matter how much of an extension you obtain. Once again, talk about it and offer options to satisfy the customer. Maybe you can get someone else to fill in or help you out so that the customer is serviced properly.

Conclusion
Put yourself in your customers’ shoes. What would you like to hear? How often would you like to be contacted? How would you like to be contacted (email; phone; in person)? Communicate!

By Barbara Weltman

Can We Talk?
Joan River’s TV show in the 1980s was titled
“Can We Talk?” That’s what small business owners
should be saying to their customers on a regular
basis, but often don’t. Lack of communication is
a major cause of lost business opportunity and
disgruntled customers.
Missed business opportunities
Satisfied customers are repeat customers and a
referral source. Yet many businesses owners fail
to follow up with customers to see if they need
any additional services from you or whether they
can refer you to other customers. Suggestions:
• Create an anniversary for each customer.
This allows you to schedule a follow-up and ask
for additional business a year (or even
quarterly) from the completion of a sale. For
example, if you designed a brochure for a
customer, one year later contact the customer to
see whether the brochure needs updating or if
the customer has a new job for you.
• Ask for referrals. Do this when you
finish a job and the customer expresses
satisfaction.
Customer problems
It amazes me how many customer relations
problems could easily have been avoided if only
there had been better communication from the
outset. It’s not up to the customers to track
you down, but to businesses servicing them, to
explain what’s going on. Common problems and
what to do about them:
• A delivery person is running late.
Things happen, such as traffic or a longer
appointment earlier in the day. Just call to let
the customer know that the promised time of
arrival will be missed and what the new arrival
time is expected to be.
• A delivery will be late. If you don’t
receive items when you expect them, you can’t
deliver them to your customers on time. Again,
just let the customer know the problem and when
you expect to resolve the problem.
• A personal problem arises. This can put
you behind the eight ball with respect to
meeting customer needs. Everyone understands
that things happen, but you have to explain your
problem. Maybe it’s minor and temporary; maybe
it’s so big that you won’t be able to satisfy
your customer no matter how much of an extension
you obtain. Once again, talk about it and offer
options to satisfy the customer. Maybe you can
get someone else to fill in or help you out so
that the customer is serviced properly.

Why Didn't I Think of That?

We all know a King Midas or Donald Trump who seem to turn anything they touch into gold. Upon learning an entrepreneur suddenly succeeds by uncovering an obvious market need, I lament, “Why didn’t I think of that?” But then my analytical mind asks, “How did he or she know customers would have the money and need to decide to buy now?” As the bank robber, Willie Sutton, put it so eloquently, “Why do I rob banks? Because that’s where the money is.” In the case of our region’s shale gas energy boom, the answer is – Yes! As up to one trillion dollars is steadily flowing into this economy, how can you find out where the money is for what you can sell? Here are five quick ways:

1. Study your customer’s customer. Whatever you sell, your customers’ customers are not just a great bellwether of your next sales but also a good pathway of how you can convert emerging market trends into sales for your company. See where and how your customers’ customer activity is shale gas-related and positions your business to catch what could be coming your way.
2. Ask your vendors what parts of their business are growing. Chances are very good your vendors are somehow either gaining or losing business because of the shale gas economy. Ask them where and who has the money. Vendors always are happy to gain favor with customers like you. Chances are some of it is from shale gas.
3. Look under your nose. Your neighbors, your fellow parishioners and your kid’s friend’s parents are all exposed to other businesses. Certainly some of them are thriving because of shale gas business.
4. Your bankers. No business is closer to where the money is than banks. They lend, deposit, finance and manage money and are always in tune to knowing where the shale gas money is going.
5. Your shopping. Take a drive down your main street or to your mall. Take a look at which stores are full, and if you can, catch a minute with either a sales person or a chatty customer, who are clearly transacting more than average, ask them why times are good. Ask them if and where any of the new money is coming from and expect to hear that it’s from shale gas.

History is full of success stories like Levi Strauss who made millions selling blue jeans to gold miners. Someone around you has figured out where the shale gas money is and can give you an eagle’s eye view into where and how you can make your fortune as well.
So, get out there and ask a lot of questions and keep your eyes open. You will find someone who’s thriving because of the shale gas boom. Chances are both of you have three things in common. You don’t own drillable property, you’re not in the energy business, and you’re not buddies with the president of any gas company. The only difference between you and your neighbor is that right now they have the Midas touch and you need one too.
By Andy Birol

Up to 50% Off ?

This is less of a gimmick, and more a way of life in the retail world: Giving products a higher "original" price than you intend to sell them at, and then marking them down so that people feel like they're getting a deal.

Ron Johnson saw the foolishness of this system when he took over at J.C. Penney, and set out to change it. And while his execution left something to be desired (to say the least), we liked his revolutionary idea to do away with sales and promotions and just offer honest low prices from the start.

As the company has backpedaled away from the policy and reinstituted sales, it's revealed a lot about the craziness of the retail industry's mark-up-to-mark-down strategy. Earlier this year it had to fend off accusations that it was pushing suppliers to make up 'suggested' prices to make its own prices seem lower. Shoppers have found higher-priced stickers slapped on top of the old ones, clear evidence that it was raising prices just so it could lower them through sales and coupons. And former employees have come out to accuse the retailer of misleading consumers with its new pricing strategy.

To be clear, there is nothing unique about what J.C. Penney is doing now -- it's just more visible, because we can actually see it raising prices after experimenting with a more honest pricing strategy. When Banana Republic prices its dress shirts at $80 and then has sales every other day offering 30% or 40% off, it's not being generous. It's just taking a $50 shirt, marking it up to $80, and then discounting it to make you feel like you're getting a great deal on an $80 shirt.

It's an annoying marketing gimmick. And as Ron Johnson's fiery demise proved, it's never going away.

Marking Up to Mark Down

...Or "97." Or "95." The last digit might vary, but the goal is the same: To make the price seems a little lower by knocking a few pennies off. A $5 burger becomes a $4.99 one. A $200 TV becomes a $199.99 TV. What, they think we won't notice?

Well, here's the thing: We might notice, but it still makes a pretty big difference in our buying behavior. A study conducted a few years ago asked participants to choose between a $2 pen and a $4 pen. When the prices were altered so that the choice was between a $1.99 pen and a $4 pen, participants were suddenly more likely to go for the cheaper pen. Make it a choice between a $2 pen and a $3.99 pen, and suddenly the pricier pen became more attractive.

"Consumers should be aware of the subconscious tendency to focus on the leftmost digits of prices and how this tendency might bias their decision-making," concluded one of the authors.

And even if consumers aren't aware of this tendency, retailers certainly are. Unfortunately, that experiment makes it clear why this is another gimmick that will never go away: No store wants to be the first to round up its prices and be perceived as more expensive than the competition.

Introductory Teaser Rates

Wow, cable, internet and voice for just $80 a month? It seems too good to be true!

Well, it is. That's only the introductory promotional rate, and after a given amount of time -- usually 12 months -- your price goes up. Way up. Other industries will give you a free trial month before signing you up at a fixed monthly rate, but we're hard-pressed to think of any other major industry that uses introductory pricing like the cable business does.

The problem is that bills like cable are fixed costs in a budget, and fixed costs are supposed to stay fixed. You're hooked in by a monthly rate that seems feasible for your income, but then the second year of the contract rolls around, your rate skyrockets, and you have to reconsider your whole budget.

Sure, it's possible to get your bill lowered by calling up the cable company and yelling at them. But should a lower bill really be reserved for those with the time and temperament to fight with customer service representatives every six months?

Here's an idea for cable companies: Advertise your service at one price point, and then keep it there.

What You Need to Offer

Try to find what is lacking in your industry or what concern is not being addressed and use that to attract customers and clients. Being an innovator will get you more new business and respect from your peers. Here are a few things to consider to create more interest and growth in your business:

 *Bigger and better selection than competitors
 *Outstanding customer service (not just good)
 *Easy special orders and requests
 *Constantly adding more value to purchases
 *Your USP (Unique Selling Proposition) is superior to others
 *Faster delivery or availability at no additional cost
 *Loyalty rewards for regular patrons ( Never use "For new customers only")
 *Customer/client education and training
 *Longer business hours - 24/7 online
 *Several ways to order or purchase
 *Several ways to pay
 *Your front line people are experts
 *State-of-the-art marketing and promotion
 *Painless exchanges, returns, repairs and adjustments
 *Going that extra mile - always

Barry is a business/customer experience speaker available at www.idealetter.com

Make Sure Your Outsourcing Works

When you outsource business tasks that you don't know how to do or don't want to do it will help you grow. Just picking any outsource company without checking them out could backfire and cause you problems. Also if you don't go into the project with everything clearly defined it could cost you valuable time and money. Keep these things in mind when you are ready to outsource:

 *Clearly explain the project
 *Check several references
 *Get everything in writing
 *Have an escape clause in case of problems
 *Start with a small test project project
 *Cover all costs in advance
 *Specify delivery and finish times
 *Promise future work if if done well
 *Monitor all results
 *Don't hesitate to cancel or change

Barry has started many businesses and helped others with independent or franchises business. www.idealetter.com