I came across this interesting article with a long thread of responses.
You all know this topic is dear to my heart, but my heart sank like a rock as I made my way down the thread.
Look at Davidt’s message: Not In Texas, unfortunately
The time got away from me to post a timely reply to his message regarding whiteboxes being illegal in Texas as of September 2008. I did a bit of research and found it’s HB2417 to which he alludes. Bear in mind I am a layman in these matters and do not take what I say as a final word.
House Bill 2417 is an environmental law which will requires recycling of computers by manufacturers. The bill addresses the problem concerning whitebox (or, “no brand”) computers, namely, that they do not bear the manufacturers name. The bill, as I understand it, is not so much that whiteboxes are illegal, but that the manufacturer must identify itself as the manufacturer in some way even if by some means other than the manufacturers name. Ultimately, the law is about ensuring all computers are disposed of in legal, proper
compliance with Texas state law. Manufacturers are required to submit a recycling policy.
My personal (what else could it be, right?) of the law is that it focuses on manufacturers, not individual sole proprietors. If you advise your neighbor in the purchase of computer components over a three month period, assemble it, load software you have just manufactured a whitebox computer. If you built it for yourself that is a whitebox you manufactured. By all means, as a responsible citizen, turn it over to Dell, HP or retailer who are collection centers for recycling at no cost to you.
The Texas business climate is favors entrepreneurs. I believe our current economic times will
have laptop buyer parents looking at desktops for a better bargain. Yes, laptops are quite inexpensive. Desktops are even more. Whiteboxes even more, still.
Go’on. Build you one.
Friday, October 24, 2008
Friday, October 17, 2008
Whitebox Wonderland
Admittedly, I feel I should have got this one to you sooner. On the other hand, I feel vindicated about what I have been posting on this blog regarding the revenue potential for independent and small business custom system builders.
Read the article, Whitebox Wonderland by Damon Poeter
What are you doing in for yourself in the whitebox market?
What are you doing in the whitebook market?
Some early posts:
http://workingmannequin.blogspot.com/search/label/whitebook
http://workingmannequin.blogspot.com/2007/09/white-box-desktop-notebook-market.html
http://workingmannequin.blogspot.com/search/label/whitebox
Read the article, Whitebox Wonderland by Damon Poeter
What are you doing in for yourself in the whitebox market?
What are you doing in the whitebook market?
Some early posts:
http://workingmannequin.blogspot.com/search/label/whitebook
http://workingmannequin.blogspot.com/2007/09/white-box-desktop-notebook-market.html
http://workingmannequin.blogspot.com/search/label/whitebox
Monday, October 13, 2008
If you build it for the good of all
The words whispered to Ray Kinsella played by Kevin Costner in the 1989 movie, “Field of Dreams” were the catalyst for building a baseball park for the legacy and the legends of the game. We never see the finished park. What was to attract fans was not a humongous facility, but the re-capture of a simple, wholesomeness for the good of all.
The words, “If you build it they will come” were as much about the players, those who play for the absolute love of the game, as well as the fans.
I have been urging and encouraging people with the Knowledge, Skills and Experience to build computers and servers for small business and neighbors, alike. That’s nothing spectacular. People will come to you not for the glitz, but for the homespun trust and “service” (actually, it’s “being neighborly”) they chance not finding at their local retailer for something they can use and is affordable. It is a means of revenue for the system builders and a means of allowing low-income Americans the opportunity to own a computer.
My search for the cheapest computer came up with $279, $195 and $164 (monitor not included). I am not going to name brands as a matter of principal. I maintain with a little resourcefulness an at-home tech-built computer system will beat the cheapest. How, you ask?
Lets understand, for starters, even $164 is a bit more than many people can comfortable to pull out of pocket for a single purchase. So, why do I believe they would be willing to pay even twice as much?
The next time your co-worker, neighbor or friend laughs at the prospect of owning a computer tell him to drop by when he’s got $10 to spare. Then, you send him off with a single-item grocery list to Goodwill or a discount parts reseller to buy a power supply, keyboard or mouse. Next month he’s got $20 and he holds it another month until he’s got $35. You send him off with a grocery list and he returns with a motherboard. Finally, six months later after purchasing a hard drive and monitor and other essentials he has everything you need to build his system.
On a sunny Saturday morning your friend brings coffee and tacos (donuts? bagels?) and joins you in the garage. You assemble the system and install the Windows copy he bought at Goodwill or you go online to download the OS for his computer. After numerous reboots your friend is a happy, proud owner of his first system and puts $30 dollars in your hand as agreed between neighbors, previously. Total price: $400. SAY WHAT!! Whoa thar, hombre!!
What happened to the cheaper-than-retailer talk? No, this is not a case of poor addition. The above scenario is not to depict exact price for every single piece nor your service fee. It is intended to show how your friend, on his own terms, buys all the essential components for his system, himself. In the end the price tag could possibly exceed the reseller’s display case model. What’s the advantage for your friend? It is a deal he is never going to get at Best Buy, Circuit City, Walmart, Dell or HP. He won’t even get that on layaway and it's certainly not a handout.
The advantage and the reason your friend is happy is that despite the fact he could see this was turning out to cost a bit more than the store model
The words, “If you build it they will come” were as much about the players, those who play for the absolute love of the game, as well as the fans.
I have been urging and encouraging people with the Knowledge, Skills and Experience to build computers and servers for small business and neighbors, alike. That’s nothing spectacular. People will come to you not for the glitz, but for the homespun trust and “service” (actually, it’s “being neighborly”) they chance not finding at their local retailer for something they can use and is affordable. It is a means of revenue for the system builders and a means of allowing low-income Americans the opportunity to own a computer.
My search for the cheapest computer came up with $279, $195 and $164 (monitor not included). I am not going to name brands as a matter of principal. I maintain with a little resourcefulness an at-home tech-built computer system will beat the cheapest. How, you ask?
Lets understand, for starters, even $164 is a bit more than many people can comfortable to pull out of pocket for a single purchase. So, why do I believe they would be willing to pay even twice as much?
The next time your co-worker, neighbor or friend laughs at the prospect of owning a computer tell him to drop by when he’s got $10 to spare. Then, you send him off with a single-item grocery list to Goodwill or a discount parts reseller to buy a power supply, keyboard or mouse. Next month he’s got $20 and he holds it another month until he’s got $35. You send him off with a grocery list and he returns with a motherboard. Finally, six months later after purchasing a hard drive and monitor and other essentials he has everything you need to build his system.
On a sunny Saturday morning your friend brings coffee and tacos (donuts? bagels?) and joins you in the garage. You assemble the system and install the Windows copy he bought at Goodwill or you go online to download the OS for his computer. After numerous reboots your friend is a happy, proud owner of his first system and puts $30 dollars in your hand as agreed between neighbors, previously. Total price: $400. SAY WHAT!! Whoa thar, hombre!!
What happened to the cheaper-than-retailer talk? No, this is not a case of poor addition. The above scenario is not to depict exact price for every single piece nor your service fee. It is intended to show how your friend, on his own terms, buys all the essential components for his system, himself. In the end the price tag could possibly exceed the reseller’s display case model. What’s the advantage for your friend? It is a deal he is never going to get at Best Buy, Circuit City, Walmart, Dell or HP. He won’t even get that on layaway and it's certainly not a handout.
The advantage and the reason your friend is happy is that despite the fact he could see this was turning out to cost a bit more than the store model
The bottom dollar price was one he was able to absorb into his daily living expenses.
This scenario, when replicated through the dynamic of a network is nothing less than the inclusion of the low-income consumer into the cyber world. Greater still than building a computer for a neighbor is the buildup of community one neighbor at a time for the good of all.
Sunday, October 12, 2008
Do you believe in myths?
America is a consumer society. We buy things and ideas. When it comes to computers those in the industry, who are themselves consumers, buy, both computers and the IT myth: There is no longer a digital divide.
Other takes on this myth: Desktops are out. Everybody’s buying laptops. Sure.
The focus of the EDUCAUSE Review article The Myth about the Digital Divide: We Have Overcome the Digital Divide by Brian L Hawkins and Diana G Oblinger is on computer owners, primarily. Elsewhere, I have called for computer manufacturers and VARs and resellers to target the low-income consumer market; those who do not own a computer in America. This is a consumer overlooked on the blazing path to obliterating (NOT!) the digital divide.
The four points below are taken from the IT myth article.
1. Do we know whether students have a computer? Do we know their skill level? Although it is easy to assume that all students own a computer and are computer-literate, is that a correct description of the student body? Is ownership the same for all students, or are there significant differences between groups, such as traditional-age students and adult learners? Are there different needs based on academic discipline?
2. Do we look beyond who has Internet access to consider online skills? What online skills, support, and freedom of use define an appropriate threshold for digital access and use on campus?
3. Do we limit the definition of digital divide to a haves and have-nots dichotomy? The digital divide is not a yes-no proposition; it is a continuum. Beyond computer ownership lie issues of Internet access at a reasonable speed, as well as availability of support. The campus may need to define its own metrics to determine the extent of its underserved, digital divide population.
4. How limiting will inadequate online skills be to students? The ultimate issue behind the digital divide is the ability of students to learn, explore, and become participating members of their chosen communities. Education is increasingly dependent on students technical proficiency not only to find information but also to analyze material and access experts. If students are regularly expected to participate in online discussions or use tools such as wikis, campuses should provide reasonable support to ensure that students can participate effectively and autonomously.
What I infer from this article is there is a sizeable market among these existing computer owners. Unless they are buying a new computer Dell, HP and Lenovo have no interest in them. These computer owners are not a myth. They are an open market for VARs, resellers and independent consultants who don’t believe the myth.
Get your name on the IC-TechNetwork. Spread the word.
Other takes on this myth: Desktops are out. Everybody’s buying laptops. Sure.
The focus of the EDUCAUSE Review article The Myth about the Digital Divide: We Have Overcome the Digital Divide by Brian L Hawkins and Diana G Oblinger is on computer owners, primarily. Elsewhere, I have called for computer manufacturers and VARs and resellers to target the low-income consumer market; those who do not own a computer in America. This is a consumer overlooked on the blazing path to obliterating (NOT!) the digital divide.
The four points below are taken from the IT myth article.
1. Do we know whether students have a computer? Do we know their skill level? Although it is easy to assume that all students own a computer and are computer-literate, is that a correct description of the student body? Is ownership the same for all students, or are there significant differences between groups, such as traditional-age students and adult learners? Are there different needs based on academic discipline?
2. Do we look beyond who has Internet access to consider online skills? What online skills, support, and freedom of use define an appropriate threshold for digital access and use on campus?
3. Do we limit the definition of digital divide to a haves and have-nots dichotomy? The digital divide is not a yes-no proposition; it is a continuum. Beyond computer ownership lie issues of Internet access at a reasonable speed, as well as availability of support. The campus may need to define its own metrics to determine the extent of its underserved, digital divide population.
4. How limiting will inadequate online skills be to students? The ultimate issue behind the digital divide is the ability of students to learn, explore, and become participating members of their chosen communities. Education is increasingly dependent on students technical proficiency not only to find information but also to analyze material and access experts. If students are regularly expected to participate in online discussions or use tools such as wikis, campuses should provide reasonable support to ensure that students can participate effectively and autonomously.
What I infer from this article is there is a sizeable market among these existing computer owners. Unless they are buying a new computer Dell, HP and Lenovo have no interest in them. These computer owners are not a myth. They are an open market for VARs, resellers and independent consultants who don’t believe the myth.
Get your name on the IC-TechNetwork. Spread the word.
Friday, October 10, 2008
A step closer to Prom 2009
I went to Jo-Ann’s Fabrics, today.
What was that like you ask? Well, if you walked into O’Reilly’s and saw all the shiny auto parts, how would you feel? I was a bit apprehensive about being there. I thought to turn and run, but when Toni called “number 18" I stepped up.
Toni stepped out from behind the cutting table (is that the correct term?) to assist me. She followed me to the fabrics section. She was very cordial and helpful, not patronizing or condescending even though she knew she was dealing with someone who doesn’t know taffeta from muslin.
My mission was to get some idea of three key things when making your own prom dress: Fabric, pattern and price. Toni showed me some examples: one Vogue (V2891) and two Simplicity (4070 & 3784) patterns.
The Simplicity 3784 pattern was priced at $16.95, or with the store 40% discount; $10.17. The Vogue V2891 pattern was priced at $27.50 and at 40% discount; $16.50.
Fabric prices ranged at one end from 5.99 – 9.99/yd for the 60 inch bolt to 3.75 to 4.75/yd for the 45 inch bolt.
The approximate cost of the Simplicity 3784 and fabric price at the high end in both ranges is below.
Simplicity pattern 3784: $ 10.17 10.17
Fabric 4.25/ 3yds 14.25
Fabric 9.99/ 3yds 29.97
Total $ 40.14 $ 24.42
Who are your clients? Moms and daughters who will be shopping for prom dresses for Prom 2009. Where are they? McNeil, Round Rock, Stony Point and Westwood high schools in Round Rock Texas or wherever you live.
Once you consult with your client they go and shop Jo-Ann Fabrics for the above pattern (or one similar) and fabric at between 40 and 24 dollars they have taken a big part in the ownership of their designer prom dress.
The next part is yours. You have measurements, needle and thread and a delivery date. The fee you set is your business, but whether a low $40 or high $70 you have a client who has agreed to your fee in consultation. The bottom line fee may be the same or no less than your client would have obtained from a retailer or online. The great thing about it though is they got THEIR fabric, color, fit and price all in time for the big event. No last minute rush shopping.
Something else to consider. The earlier consultation allows clients the benefit of being able to purchase these materials far in advance. Then they can then direct their finances toward covering your fee. In other words, they don’t have to be hit hard with an expenditure of 90 to 120 dollars all at once on the same day.
Think up some incentives to reward clients who send you referrals. An economy like our current one always has opportunity, both for you and your clients. Just do it.
Finally, all the above is my best attempt at being accurate and honest with the numbers. I must allow the possibility I erred in my math somewhere, but I trust you quite likely have a far better understanding of what I’m talking about.
You are invited to get your name posted on the PROM-DRESS NETWORK. It' free. Spread the word.
This is not to be taken as any kind of endorsement by Jo-Ann’ Fabrics, but I can certainly point you in their direction.
Yes. My name is Gilbert Torres and I approved this message.
Jo-Ann Fabric and Craft Larger SuperstoreShops At Arbor Walk10515 N Mopac Expressway Nb, Bld 1Austin, TX 78759Get maps and driving directions
512-795-8086Mon-Sat 9a - 9p Sunday 10a - 7p
Weekly Sales Flyer
What was that like you ask? Well, if you walked into O’Reilly’s and saw all the shiny auto parts, how would you feel? I was a bit apprehensive about being there. I thought to turn and run, but when Toni called “number 18" I stepped up.
Toni stepped out from behind the cutting table (is that the correct term?) to assist me. She followed me to the fabrics section. She was very cordial and helpful, not patronizing or condescending even though she knew she was dealing with someone who doesn’t know taffeta from muslin.
My mission was to get some idea of three key things when making your own prom dress: Fabric, pattern and price. Toni showed me some examples: one Vogue (V2891) and two Simplicity (4070 & 3784) patterns.
The Simplicity 3784 pattern was priced at $16.95, or with the store 40% discount; $10.17. The Vogue V2891 pattern was priced at $27.50 and at 40% discount; $16.50.
Fabric prices ranged at one end from 5.99 – 9.99/yd for the 60 inch bolt to 3.75 to 4.75/yd for the 45 inch bolt.
The approximate cost of the Simplicity 3784 and fabric price at the high end in both ranges is below.
Simplicity pattern 3784: $ 10.17 10.17
Fabric 4.25/ 3yds 14.25
Fabric 9.99/ 3yds 29.97
Total $ 40.14 $ 24.42
Who are your clients? Moms and daughters who will be shopping for prom dresses for Prom 2009. Where are they? McNeil, Round Rock, Stony Point and Westwood high schools in Round Rock Texas or wherever you live.
Once you consult with your client they go and shop Jo-Ann Fabrics for the above pattern (or one similar) and fabric at between 40 and 24 dollars they have taken a big part in the ownership of their designer prom dress.
The next part is yours. You have measurements, needle and thread and a delivery date. The fee you set is your business, but whether a low $40 or high $70 you have a client who has agreed to your fee in consultation. The bottom line fee may be the same or no less than your client would have obtained from a retailer or online. The great thing about it though is they got THEIR fabric, color, fit and price all in time for the big event. No last minute rush shopping.
Something else to consider. The earlier consultation allows clients the benefit of being able to purchase these materials far in advance. Then they can then direct their finances toward covering your fee. In other words, they don’t have to be hit hard with an expenditure of 90 to 120 dollars all at once on the same day.
Think up some incentives to reward clients who send you referrals. An economy like our current one always has opportunity, both for you and your clients. Just do it.
Finally, all the above is my best attempt at being accurate and honest with the numbers. I must allow the possibility I erred in my math somewhere, but I trust you quite likely have a far better understanding of what I’m talking about.
You are invited to get your name posted on the PROM-DRESS NETWORK. It' free. Spread the word.
This is not to be taken as any kind of endorsement by Jo-Ann’ Fabrics, but I can certainly point you in their direction.
Yes. My name is Gilbert Torres and I approved this message.
Jo-Ann Fabric and Craft Larger SuperstoreShops At Arbor Walk10515 N Mopac Expressway Nb, Bld 1Austin, TX 78759Get maps and driving directions
512-795-8086Mon-Sat 9a - 9p Sunday 10a - 7p
Weekly Sales Flyer
Sunday, October 05, 2008
PROM 2009
It is a source of wonder to me the readership on this blog. The StatCounter on my blog has exceeded the free entries I am allowed. That means I am no longer able to get complete, accurate figures for the number of visitors to the blog. More important for me than the numbers is the “visitor paths”, that is, from where the blog site visits come.
Over the past several months there have been repeat visits from Oregon, Florida, Texas, England, Mexico to name a few. Although my initial plans do not extend beyond US borders it indicates an interest on the part of these readers. These are the top four most read posts
Cedar Park TX freelance pattern maker
The PROM DRESS NETWORK: Unlimited
Round Rock Prom Dress Style
Hollister CA
Clearly, the PROM DRESS posts draw the most interest.
It pleases me greatly to announce I have succeeded in, despite being tech-challenged, posting the PROM-DRESS NETWORK link.
Do you think the Prom will be canceled in 2009 because of our economy or because mom or dad have lost their jobs whether in Round Rock TX or Oregon?
Over the past several months there have been repeat visits from Oregon, Florida, Texas, England, Mexico to name a few. Although my initial plans do not extend beyond US borders it indicates an interest on the part of these readers. These are the top four most read posts
Cedar Park TX freelance pattern maker
The PROM DRESS NETWORK: Unlimited
Round Rock Prom Dress Style
Hollister CA
Clearly, the PROM DRESS posts draw the most interest.
It pleases me greatly to announce I have succeeded in, despite being tech-challenged, posting the PROM-DRESS NETWORK link.
Do you think the Prom will be canceled in 2009 because of our economy or because mom or dad have lost their jobs whether in Round Rock TX or Oregon?
I don’t think so. What this does present is a need and an opportunity involving prom dress choices, purchases, costs and income for creative, resourceful people.
Anybody in the 50 US states can have their name added to the Network. Anybody, high school student, mom, dad with the Knowledge, Skills and Experience to assemble/create or design a prom dress in the comfort of their home can do so.
Actually, I see no reason why anybody outside the US can’t be included in the Network if they believe it might help them.
How does it work?
A Stony Point, Round Rock, McNeil, or Westwood high school girl and/or mom is browsing the Internet for Prom Dress choices. This blog site shows up in their Google search. They click the hyper-link and look under their state heading for consultants, that is, a designer in their town or closest to them. They call and come to terms. The designer delivers the client their dress at an affordable price in time for the big event.
Price and payment are agreed upon between consultant and client.
Prom 2009 will be here before you know it. Now is the time to lay down some groundwork. Get your name on the Network.
Email your information to: GTorresCUE@gmail.com Subject: signup
Then, spread the word.
wm
Monday, September 29, 2008
The IC-TechNetwork
How does the IC-TechNetwork operate?
Individuals, including technicians, engineers, hobbyists, VARs and retailers post their information on IC-TechNetwork.
You either contact or are contacted by others on in the Network or outside the Network because of mutual interests.
Payment terms are agreed upon between consultant and client.
Submit your information to: GTorresCUE@gmail.com
The IC-TechNetwork will take on life of its own.
Individuals will connect with VARs or small businesses to perform tasks well within their capabilities. Groups of consultants will find each other and network together to take on projects for clients.
Who are the people who need to look into the IC-TechNetwork?
Certainly, they are people who possess varying degrees of Knowledge, Skills and Experience in the tech world. They may be gainfully employed. They may be about to become unemployed. They may be unemployed.
1. Individuals who want something to fill in the gap while they look for something else they prefer to do.
2. Resellers/retailers who want to ramp up their sales/service accounts, but cannot afford or do not want to add employees to their payroll.
3. Individuals whose vast KSE intimidates prospective employers salary capabilities and ability to retain such highly qualified individuals.
4. Individuals with B1 visas who must fulfill US Embassy requirements of “gainful employment” for immigrants.
5. VARs who may not be able to hire highly skilled workers, but will work with consultants, eagerly.
What is the goal of IC-TechNetworks?
A launch date is out there in the vastness of Texas in Round Rock. Anyone who wishes to “upgrade” from their network will be able to do so through membership in the IC-TechNetwork. Nobody is required to do so. We are not government or union.
Why would you want to upgrade?
A truly, effective and dynamic network does two things:
1. It brings networkers into and keeps them in contact with friends and peers who share similar abilities and interests, and
2. It generates residual income for you.
Get posted, today!
Individuals, including technicians, engineers, hobbyists, VARs and retailers post their information on IC-TechNetwork.
You either contact or are contacted by others on in the Network or outside the Network because of mutual interests.
Payment terms are agreed upon between consultant and client.
Submit your information to: GTorresCUE@gmail.com
The IC-TechNetwork will take on life of its own.
Individuals will connect with VARs or small businesses to perform tasks well within their capabilities. Groups of consultants will find each other and network together to take on projects for clients.
Who are the people who need to look into the IC-TechNetwork?
Certainly, they are people who possess varying degrees of Knowledge, Skills and Experience in the tech world. They may be gainfully employed. They may be about to become unemployed. They may be unemployed.
1. Individuals who want something to fill in the gap while they look for something else they prefer to do.
2. Resellers/retailers who want to ramp up their sales/service accounts, but cannot afford or do not want to add employees to their payroll.
3. Individuals whose vast KSE intimidates prospective employers salary capabilities and ability to retain such highly qualified individuals.
4. Individuals with B1 visas who must fulfill US Embassy requirements of “gainful employment” for immigrants.
5. VARs who may not be able to hire highly skilled workers, but will work with consultants, eagerly.
What is the goal of IC-TechNetworks?
A launch date is out there in the vastness of Texas in Round Rock. Anyone who wishes to “upgrade” from their network will be able to do so through membership in the IC-TechNetwork. Nobody is required to do so. We are not government or union.
Why would you want to upgrade?
A truly, effective and dynamic network does two things:
1. It brings networkers into and keeps them in contact with friends and peers who share similar abilities and interests, and
2. It generates residual income for you.
Get posted, today!
Sunday, September 28, 2008
TechNetwork
It’s been a really tough task for myself, being tech-challenged as I am, but I have managed thanks to the Google team, to setup the IC-TechNetwork.
If you live anywhere in the 50 states you may send me your information for posting. It will appear under your state of residence.
This service is free. Any earnings you might derive through your products or services as an independent reseller/retailer or independent contractor are yours to keep. Service fees are agreed upon between you and your clients.
Notice to local, independent Apparel Designers and retailers:
Watch for a similiar setup for APPAREL in the days to come. It's another tough challenge, but I am encouraged by my success with the setup of the Tech network.
Keep the faith. Grow in faith.
GT
If you live anywhere in the 50 states you may send me your information for posting. It will appear under your state of residence.
This service is free. Any earnings you might derive through your products or services as an independent reseller/retailer or independent contractor are yours to keep. Service fees are agreed upon between you and your clients.
Notice to local, independent Apparel Designers and retailers:
Watch for a similiar setup for APPAREL in the days to come. It's another tough challenge, but I am encouraged by my success with the setup of the Tech network.
Keep the faith. Grow in faith.
GT
Saturday, September 13, 2008
Boxing clever
This is a great article. I especially call your attention to his point about technology. Technology may be hardware, but in our age we are familiar with software, such as MS Windows, as technology, too. IE-Networks is one such technology independent retailers can leverage for the development of their business. gt
By Neil Davey The last ten years or so in the retail world has been a grim time for smaller independents.
The march of the big box retailers and their relentless focus on scale, efficiency and cost cutting has left many smaller shop owners despairing that they can ever compete.
Of course this is crazy talk. After all Sam Walton began Wal-Mart’s journey by taking over a single franchise store and building from there. And as Uzi Yemen, CEO of the MAPCO Express C-store chain, explains elsewhere in these pages, US retail will always have room for entrepreneurs willing to take risks and build a business.
Of course the key in retail is to give customers something they want. The vast scale of the big boys means that smaller stores won’t succeed if they try to compete directly with supercenters – they don’t have the scale or logistics to make this feasible.
But all is not lost. One of the big buzz’s in retail in localization – how can assortments, and even stores be created to better serve the needs of local, unique markets. And while the heavyweights of the sector scratch their heads and wonder how to re-design supply chains, or take advantage of the reams of customer data they produce to meet these needs, it’s fair to say that smaller, local, stores have an inherent advantage in focusing their efforts on local needs.
To look at how smaller chains and stores can better compete ERS has spoken to Thomas Zaucha, the CEO of the National Grocers Association, and Marc Jacobs, author and CEO of Dollar Days. They explain how being small should be seen as an advantage – as long as you have the insight to offer something different.
Opportunity knocks
For independent retailers, the news that a big box retailer is to open up shop in their community is enough to send shivers down the spine. Yet evidence suggests that it needn’t be a death knell for small retailers. Indeed, research by DollarDays International has revealed that by undertaking various strategic changes, 42 percent of small retailers maintained their market share when a big box player opened up nearby – and a further 35 percent actually reported an increase in business.
Marc Joseph is CEO of DollarDays International, an internet-based product wholesaler to small businesses and local distributors. After being inundated with calls from entrepreneurs seeking advice, he decided to put his nearly 30 years of experience in retailing and wholesaling, to use in the form of a book. The ensuing tome, entitled “The Secrets of Retailing…Or How to Beat Wal-Mart” details how small businesses can compete with big box retailers that come to their towns, as well as providing advice on the nuts and bolts of setting up a successful retail chain. Marc divulges some of the secrets to ERS.
ERS. What are the main strengths of big box retailers?
MJ. There are two things that have made them strong. The number one is their ability to buy in bulk. There are certain commodity goods on which you can’t compete with chainstores – laundry detergent, for instance, or paper goods. They can just buy truckload after truckload and small stores have to buy it in pallet form, so the chainstores compete on price. The second thing is their efficiencies of distribution. Wal-Mart has a just-in-time inventory system where it can flow goods from manufacturers to the stores very quickly and very efficiently. So the whole distribution center that these chainstores have created for themselves is a competitive advantage.
ERS. According to survey results by DollarDays International, 99 percent of the small businesses have big box retailers located near their stores. Does this spell the end for these small businesses?
MJ. If you are an entrepreneur this is actually an opportune time to go into retail, because the chainstores have created so much opportunity for everybody else. There are a couple of factors that have come about in the last ten years that have made it such a good time. The first thing is technology. The cost of technology has come so far down that small stores can now have the same kind of technology as the chain stores. Independent stores can now track their inventory and track their customers. That has created the opportunity to have the knowledge you need to compete. The other thing that has arrived to give the independent stores a chance to compete is the internet. Small stores are not only selling across the street and across town, but now they can sell across the US and the world. So this has opened up a whole opportunity for bricks and mortar stores.
ERS. Interestingly, the survey results suggest that 72 percent of small businesses opened their stores after the chainstores arrived in town. This seems to tie in with your argument that these chainstores have created opportunities.
MJ. Lets take the coffee shop business as an example. Starbucks is on every corner of the US. They are everywhere. But there are 600 more independent coffee shops now in this country than there were six years ago. What happens is that it is kind of like when the tide comes in, all the ships rise. The awareness of the coffee industry has created a niche for these smaller independents to go out there and find their little piece of the action. So chainstores create opportunity for independent stores.
ERS. How can retailers translate this opportunity into big bucks?
MJ. We advise entrepreneurs to open a store right next to a chain store. The Targets and the Wal-Marts of the world are spending millions of dollars to drive customers into their stores, so smart entrepreneurs are opening up independent stores around that to play off the traffic, so they don’t have to pay for all the advertising. These chainstores have also opened up the opportunity for dollar stores. When you walk into any modern mall these days, you will see a dollar store. A place where everything is easy to understand and you don’t have to ask about pricing and you can buy what you want. Retail Forward predicts that there is going to be another 9000 more dollar stores in the US by 2009.
Another niche that opens up when chainstores arrive are gift stores, selling better kinds of unique interesting kinds of gifts. And then there are specialty retailers – none of these chainstores do large sizes well, and none of them do juniors well. So you see that these independent apparel stores are opening up all over the place. When you think about it, most major trends have started in independent stores, because they are the ones out there taking a little chance and trying something a little different. And then it is picked up by the chainstores. So we see that chainstores have opened up an opportunity for entrepreneurs to open up their own independent stores.
ERS. In your book you suggest that there are a number of secrets to competing with the big players. Can you divulge the secrets?
MJ. There are seven secrets; seven ways that you can compete. One is by selling close-outs. A true close-out is only a couple or three truckloads of product. Because it is small quantities, independent stores can buy what chainstores can’t, because they can’t fill all 500 of their stores with close-outs. So true close-outs give the independent the chance to have a lower price and show something different than the chainstore. The second thing is that there are plenty of manufacturers that are just too small to sell to chainstores – there are more and more places where they just don’t make enough product. So there are plenty of manufacturers with which you can create that relationship and buy unique product. We also have a whole level of manufacturing where they won’t sell to chainstores because it would take up 80 percent of their production to deal with them and then if the store takes their business offshore it will put the manufacturer out of business. So you have the opportunity to find those manufacturers who will do that for you.
Also, the small stores have an agility with their overhead costs – chainstores have got management super structures, teams of buyers, lawyers, store designers, public relations and so forth. If small stores need someone to do public relations they just outsource it. And you run your own store so you have got the ability to figure out when you need people in the store to service your customers and when you don’t. You have got the opportunity to get agility on the overhead. Another reason that small stores can compete is that they offer a much simpler shopping experience. I was in Target last weekend, and I had to park all the way out at the end of the parking lot, It took me ten minutes to get into the store; where I was going to was at the back of the store, so that took me another ten minutes; it took me another ten minutes to check out…it is an experience going in these chain stores! Independent stores are smaller, you can usually park close to them and you can get in and out.
Elsewhere, there are plenty of rural areas that are just too small to support chainstores. And there are inner cities where chainstores just don’t go. So there are independent stores being opened up by entrepreneurs because of their location. And the last thing is customer service. If you run an independent store you get to know the customer so that he/she feels at home. You go to a chainstore and sure they have a guy greeting you but that is really for security. They want to get you through the registers as fast as they can. The whole personal attention thing really works and is something that independents could run with.
ERS. Ultimately, is your message that small retailers need to understand that when a big box retailer opens in their community it’s not a death sentence?
MJ. It is more of an opportunity than a challenge.
So there you have it – for smaller stores the secret seems to be leveraging the best practice and technology that has been developed by the bigger boys, and utilizing their size and agility to offer a different customer experience to the supercenters. You might not be able to land a knock-out blow to the might of Wal-Mart et al, but clever retailers should at least be able to get to a points decision. Difficulties remain for sure, but if retail were easy then it wouldn’t be any fun.
Tips to compete with big box retailers
Think small?
Large chains can’t benefit from true closeouts, which are broken lots or leftover goods that a manufacturer needs to unload. This gives the smaller retailer a chance to show products of real value.
Be unique?
There are many new and unique products that, because the supply is limited, chains pass over them, giving the independent stores a chance.
Develop relationships with small manufacturers?
Many small manufacturers will not sell to chainstores.
Agility on overhead cost?
Small retailers can beat the giants in another price-related factor: their overheads can be significantly lower.
Simpler shopping experience for the customer?
A store that is 2000 square feet is much easier to shop than a 100,000 square foot giant.
Location?
Underserved neighborhoods are a real opportunity for independent stores to thrive. Be where the giants are not. Personal attention?Customer service is the backbone to the independent business. People like to shop where they feel comfortable and at home, where they feel the owner cares about their wants and needs.
By Neil Davey The last ten years or so in the retail world has been a grim time for smaller independents.
The march of the big box retailers and their relentless focus on scale, efficiency and cost cutting has left many smaller shop owners despairing that they can ever compete.
Of course this is crazy talk. After all Sam Walton began Wal-Mart’s journey by taking over a single franchise store and building from there. And as Uzi Yemen, CEO of the MAPCO Express C-store chain, explains elsewhere in these pages, US retail will always have room for entrepreneurs willing to take risks and build a business.
Of course the key in retail is to give customers something they want. The vast scale of the big boys means that smaller stores won’t succeed if they try to compete directly with supercenters – they don’t have the scale or logistics to make this feasible.
But all is not lost. One of the big buzz’s in retail in localization – how can assortments, and even stores be created to better serve the needs of local, unique markets. And while the heavyweights of the sector scratch their heads and wonder how to re-design supply chains, or take advantage of the reams of customer data they produce to meet these needs, it’s fair to say that smaller, local, stores have an inherent advantage in focusing their efforts on local needs.
To look at how smaller chains and stores can better compete ERS has spoken to Thomas Zaucha, the CEO of the National Grocers Association, and Marc Jacobs, author and CEO of Dollar Days. They explain how being small should be seen as an advantage – as long as you have the insight to offer something different.
Opportunity knocks
For independent retailers, the news that a big box retailer is to open up shop in their community is enough to send shivers down the spine. Yet evidence suggests that it needn’t be a death knell for small retailers. Indeed, research by DollarDays International has revealed that by undertaking various strategic changes, 42 percent of small retailers maintained their market share when a big box player opened up nearby – and a further 35 percent actually reported an increase in business.
Marc Joseph is CEO of DollarDays International, an internet-based product wholesaler to small businesses and local distributors. After being inundated with calls from entrepreneurs seeking advice, he decided to put his nearly 30 years of experience in retailing and wholesaling, to use in the form of a book. The ensuing tome, entitled “The Secrets of Retailing…Or How to Beat Wal-Mart” details how small businesses can compete with big box retailers that come to their towns, as well as providing advice on the nuts and bolts of setting up a successful retail chain. Marc divulges some of the secrets to ERS.
ERS. What are the main strengths of big box retailers?
MJ. There are two things that have made them strong. The number one is their ability to buy in bulk. There are certain commodity goods on which you can’t compete with chainstores – laundry detergent, for instance, or paper goods. They can just buy truckload after truckload and small stores have to buy it in pallet form, so the chainstores compete on price. The second thing is their efficiencies of distribution. Wal-Mart has a just-in-time inventory system where it can flow goods from manufacturers to the stores very quickly and very efficiently. So the whole distribution center that these chainstores have created for themselves is a competitive advantage.
ERS. According to survey results by DollarDays International, 99 percent of the small businesses have big box retailers located near their stores. Does this spell the end for these small businesses?
MJ. If you are an entrepreneur this is actually an opportune time to go into retail, because the chainstores have created so much opportunity for everybody else. There are a couple of factors that have come about in the last ten years that have made it such a good time. The first thing is technology. The cost of technology has come so far down that small stores can now have the same kind of technology as the chain stores. Independent stores can now track their inventory and track their customers. That has created the opportunity to have the knowledge you need to compete. The other thing that has arrived to give the independent stores a chance to compete is the internet. Small stores are not only selling across the street and across town, but now they can sell across the US and the world. So this has opened up a whole opportunity for bricks and mortar stores.
ERS. Interestingly, the survey results suggest that 72 percent of small businesses opened their stores after the chainstores arrived in town. This seems to tie in with your argument that these chainstores have created opportunities.
MJ. Lets take the coffee shop business as an example. Starbucks is on every corner of the US. They are everywhere. But there are 600 more independent coffee shops now in this country than there were six years ago. What happens is that it is kind of like when the tide comes in, all the ships rise. The awareness of the coffee industry has created a niche for these smaller independents to go out there and find their little piece of the action. So chainstores create opportunity for independent stores.
ERS. How can retailers translate this opportunity into big bucks?
MJ. We advise entrepreneurs to open a store right next to a chain store. The Targets and the Wal-Marts of the world are spending millions of dollars to drive customers into their stores, so smart entrepreneurs are opening up independent stores around that to play off the traffic, so they don’t have to pay for all the advertising. These chainstores have also opened up the opportunity for dollar stores. When you walk into any modern mall these days, you will see a dollar store. A place where everything is easy to understand and you don’t have to ask about pricing and you can buy what you want. Retail Forward predicts that there is going to be another 9000 more dollar stores in the US by 2009.
Another niche that opens up when chainstores arrive are gift stores, selling better kinds of unique interesting kinds of gifts. And then there are specialty retailers – none of these chainstores do large sizes well, and none of them do juniors well. So you see that these independent apparel stores are opening up all over the place. When you think about it, most major trends have started in independent stores, because they are the ones out there taking a little chance and trying something a little different. And then it is picked up by the chainstores. So we see that chainstores have opened up an opportunity for entrepreneurs to open up their own independent stores.
ERS. In your book you suggest that there are a number of secrets to competing with the big players. Can you divulge the secrets?
MJ. There are seven secrets; seven ways that you can compete. One is by selling close-outs. A true close-out is only a couple or three truckloads of product. Because it is small quantities, independent stores can buy what chainstores can’t, because they can’t fill all 500 of their stores with close-outs. So true close-outs give the independent the chance to have a lower price and show something different than the chainstore. The second thing is that there are plenty of manufacturers that are just too small to sell to chainstores – there are more and more places where they just don’t make enough product. So there are plenty of manufacturers with which you can create that relationship and buy unique product. We also have a whole level of manufacturing where they won’t sell to chainstores because it would take up 80 percent of their production to deal with them and then if the store takes their business offshore it will put the manufacturer out of business. So you have the opportunity to find those manufacturers who will do that for you.
Also, the small stores have an agility with their overhead costs – chainstores have got management super structures, teams of buyers, lawyers, store designers, public relations and so forth. If small stores need someone to do public relations they just outsource it. And you run your own store so you have got the ability to figure out when you need people in the store to service your customers and when you don’t. You have got the opportunity to get agility on the overhead. Another reason that small stores can compete is that they offer a much simpler shopping experience. I was in Target last weekend, and I had to park all the way out at the end of the parking lot, It took me ten minutes to get into the store; where I was going to was at the back of the store, so that took me another ten minutes; it took me another ten minutes to check out…it is an experience going in these chain stores! Independent stores are smaller, you can usually park close to them and you can get in and out.
Elsewhere, there are plenty of rural areas that are just too small to support chainstores. And there are inner cities where chainstores just don’t go. So there are independent stores being opened up by entrepreneurs because of their location. And the last thing is customer service. If you run an independent store you get to know the customer so that he/she feels at home. You go to a chainstore and sure they have a guy greeting you but that is really for security. They want to get you through the registers as fast as they can. The whole personal attention thing really works and is something that independents could run with.
ERS. Ultimately, is your message that small retailers need to understand that when a big box retailer opens in their community it’s not a death sentence?
MJ. It is more of an opportunity than a challenge.
So there you have it – for smaller stores the secret seems to be leveraging the best practice and technology that has been developed by the bigger boys, and utilizing their size and agility to offer a different customer experience to the supercenters. You might not be able to land a knock-out blow to the might of Wal-Mart et al, but clever retailers should at least be able to get to a points decision. Difficulties remain for sure, but if retail were easy then it wouldn’t be any fun.
Tips to compete with big box retailers
Think small?
Large chains can’t benefit from true closeouts, which are broken lots or leftover goods that a manufacturer needs to unload. This gives the smaller retailer a chance to show products of real value.
Be unique?
There are many new and unique products that, because the supply is limited, chains pass over them, giving the independent stores a chance.
Develop relationships with small manufacturers?
Many small manufacturers will not sell to chainstores.
Agility on overhead cost?
Small retailers can beat the giants in another price-related factor: their overheads can be significantly lower.
Simpler shopping experience for the customer?
A store that is 2000 square feet is much easier to shop than a 100,000 square foot giant.
Location?
Underserved neighborhoods are a real opportunity for independent stores to thrive. Be where the giants are not. Personal attention?Customer service is the backbone to the independent business. People like to shop where they feel comfortable and at home, where they feel the owner cares about their wants and needs.
Subscribe to:
Posts (Atom)
Posts
