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| | The May Report: 8/30/2010: Drink Deck's launch party reviewed by Melanie Adcock along with some new TMR YouTube videos; John Aiello looks good on TV; Are Groupon users primarily variety seekers and bargain hunters -- not loyal --and not a good fit for long-term customer relationship businesses?; Vhaat's a vendor to do?; The five stages of grief applied to hot Chicago firms -- or are we in danger of piling on?
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| | August 30, 2010
The May Report: 8/30/2010: Drink Deck's launch party reviewed by Melanie Adcock along with some new TMR YouTube videos; John Aiello looks good on TV; Are Groupon users primarily variety seekers and bargain hunters -- not loyal --and not a good fit for long-term customer relationship businesses?; Vhaat's a vendor to do?; The five stages of grief applied to hot Chicago firms -- or are we in danger of piling on?
Editor and publisher: ron@themayreport.com, ronaldmay@aol.com, www.themayreport.com , 773-525-3944.
Assistant editor: Melanie Adcock, iPHONE: 312-259-0610, melanie_adcock@msn.com
If you missed an article, go here: http://www.tmronline.com/A55951/tmrarticles.nsf/vwFullNewsletter
_____________________________
****************************************************
GP Ventures specializes in M&A advisory services for technology companies in a wide range of sectors.
NEW PROJECT: Business Development for Japanese electronics distribution company seeking new products in semiconductors, electronics, new energy, materials, sensors, etc. Please contact GP Ventures if you know of an electronics company seeking to establish or expand their sales network in Japan/Asia.
Other current projects include:
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*Acquisition Program for US PC Board Manufacturer seeking US PCB shops ($1 million to $30 million revenues)
*Sell Side Program for 40 million Euro Fiber Optics Company (based in Europe, now preparing materials)
Please contact GP Ventures to discuss sell-side projects, acquisition programs, and "grooming" consulting projects.
Tom Kastner
GP Ventures
847-431-3993
M&A Advisory Services for technology companies in EMS, PCB, Software, Defense, IT Services, Electronics, Distribution
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_____________________________________
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B2B Corporation
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******************************************
___________________________________
TABLE OF CONTENTS
The Scoop section:
-- This just in: Winners of the Fiji Urban Water Hunt on August 14th run by Leyla Arsan
-- Drink Deck Thursday August 26th, 2010, by Melanie Adcock
-- St. Louis-based Thompson Street Capital Partners acquired a majority
interest in Barcodes Inc., a Chicago company engages in barcode, mobile
computing and radio-frequency identification solutions
-- Charles Stack: Reply to Mr. Stopa regarding blog "Watts Up With That?"
-- Dave McMurrray: Thanks again
-- J. Kaufmann: Question about the CHTA and the CSA
-- Bill Scheurer: KarmaKorn Opening
-- Thomas Bennett: Why did Marty Nesbitt abruptly leave the Chicago Housing Authority? Inquiring minds want to know....
-- John Aiello, CEO of SAVO Group, looks good on Television, by Melanie Adcock
-- Briefly noted, by Ron May
__________________________________
**************************************************
Announcing Early Registration for 3rd Annual Business Innovation Conference October 4-6, 2010
Top-tier Innovation Conference Features Thought Leaders from Business, Government and Academe
WHAT: 3-day business innovation event with 6 high-impact workshops, 18 outstanding speaker presentations, and 5 compelling keynote addresses from a diverse range of industries and domains
WHEN: October 4-6, 2010
WHERE: IIT Rice Campus, 201 East Loop Road, Wheaton, IL 60189
The 3rd annual Business Innovation Conference is a premier educational and networking event bringing together leading innovation experts and practitioners from business, academia and government to exchange experiences and knowledge about the science of innovation. The conference focuses on the tools we now have to master innovation so that we can become continual thinkers, capable of innovating on demand, and managing innovation teams to predictable outcomes.
Attendees will also make invaluable professional connections and have opportunities to share ideas and experiences with other accomplished innovators from around the US and the world.
For more information, including registration instructions and sponsorship opportunities, please visit http://www.businessinnovationconference.com
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__________________________
The Scoop section:
_________________________
This just in: Winners of the Fiji Urban Water Hunt on August 14th run by Leyla Arsan
Subject: Re: Leyla, I left you a VM. Who were the winners 1, 2, 3 at the Fiji event?
Date: 8/30/2010 5:06:31 P.M. Central Daylight Time
From: leyla@lotusmarketingservices.com
Reply To:
To: RONALDMAY@aol.com
Hi Ronald,
I am sorry, I don't check my voicemail as often as I should. I've been in client meetings since 2pm today. Just got this email.
Here is the URL where all winners are listed: http://www.theurbanhunt.com/ (scroll down below the fold)
The winners were:
1st Place
The Tea baggers:
Team Captain : Jim Schreiber
Twitter Handle : jimmydoestea
Facebook URL : www.facebook.com/jschreib
Team Member : Chico Lansiri
Twitter Handle : chicofc
2nd place
Team Name : DrizzyHustle
Team Captain : Hustle Simmons
Twitter Handle : HustleSimmons
Facebook URL : http://www.facebook.com/TerrenceRandolphakaHustleSimmons
Team Member : Niéna Drake
Twitter Handle : NienaDrake
Facebook URL : http://www.facebook.com/DJNienaDrake
Third place: Team Name : Gossip Genie
Team Captain : Jacqui Monieson
Twitter Handle : SocialJacqui
Facebook URL : http://www.facebook.com/jacquim and http://www.facebook.com/GossipGenie
Team Member : Colleen Kokaisl
Twitter Handle : SocialColleen
Facebook URL : http://www.facebook.com/profile.php?id=1157790090&v=info&ref=ts
You also left me a message after the event regarding the event but I saw that you had published something about the event so I assumed that you didn't need any additional information. If you'd like some information regarding reach - let me know and I will get you some numbers.
Thanks,
Leyla Arsan
312.970.0659 Direct
www.lotusmarketingservices.com
--------------------------------------------------------------------------------
From: "RONALDMAY@aol.com" <ronaldmay@aol.com></ronaldmay@aol.com>
To: leyla@lotusmarketingservices.com
Sent: Mon, August 30, 2010 4:52:15 PM
Subject: Leyla, I left you a VM. Who were the winners 1, 2, 3 at the Fiji event?
_____________________________________
Drink Deck Thursday August 26th, 2010, by Melanie Adcock
Drink Deck was a launch party for a product developed by Will Glass that took place at Trader Vic's. By mistake I went to the Palmer House where Trader Vic's was located for 40 plus years here in Chicago. I had to hoof it over to the new Trader Vic's location on 1030 N. State Street. What the old location had going for it in location; the new spot makes up for with over the top Tiki themed decorations.
In the dim light I reached down to grab from the quickly disappearing snack bar what I thought was tomato salsa but found I had a mouthful of raw tuna. For me this was a nice surprise and an appropriate snack given the venue.
Approximately 50 people were in attendance. Social media types, small tech start-up companies and prospects who all needed technology solutions.
People I spoke to:
Nicole Duhoski coordinated the event with partner Ben Pavlovic. Nicole has just taken a new job at Sears helping them out with Social Media and various other things. She will have a new business card shortly. Good for Sears.
Edward Domain, the Fly Over Geeks Blog writer. He spent a lot of time speaking with a fellow named Ian from a company named Vine Joy that specializes in discounts for wine buyers. Ed talked about when he was in college working in a nice restaurant that taught him about wine. Ed spoke with Ian for quite some time and mentioned throwing a party of some sorts. Ed was not drinking wine at that time. He was drinking martinis.
Ian DeGraff explained his business model for Vine Joy as hosting parties distributing wine and using software and high tech solutions to help provide discounts to consumers. He says everything is going local via Social Media, and Vine Joy can give consumers specialty wine you can't buy in Chicago. Video of Ed and Ian here: http://www.youtube.com/watch?v=qAXwF1KmjTA
Interactive Amy, a social media marketing dynamo. I introduced her to Ed, she mentioned something about The North Coast festival she was promoting She was wearing a summery shirt with stylish crocheted detail that looked handmade. She also has a very cool calendar of events on her website: http://interactiveamy.com/networking-event-calendar/
Theresa Carter from The Local Tourist. She is interested in possibly having MobileAppEx, the Mobile Tradeshow, http://www.mobileappex.com/sponsor one of her events in the future. I hope that works out.
Random thing I heard, "After getting laid off last year my life will not become my job." Says a lot about how the little guy feels about the workforce these days.
I spoke to James Villalpando Founder of Broke Hipster, a company that helps people find cool deals on things to do in the city. He is working on making the company mobile, but says he has a bigger need for the mobile web and claims he is working on his own app. He says he's great programmer but not a graphics person. He was with a nice young lady from the music industry who made me laugh but she didn't have a business card. Let's hope she gives me a call.
Jean Iverson Publisher at BYOB Chicago is looking to go mobile for her company and would like someone to help her design an app.
Will Glass spoke to me at length about Drink Deck and how they are currently working on taking the company mobile through a mobile app. Drink Deck is a deck of 52 cards you can buy for $29.99 and it gives you $520 in gift cards to 52 Chicago area bars. The gift cards do not expire. The deck ranges from hipster bars like Motel Bar and classic destinations like Webster's Wine Bar. I asked him why there were so many tech and social media people at his event and he said it's because he's primarily a technology person. His wife who works in the health care industry was there supporting him. She was such a dear. She also didn't have a business card. I must say Ron is really onto something with the idea of using a tape recorder.
Here is a link to the Drink Deck website: http://www.thedrinkdeck.com/faq.html
Here is a video I made will interviewing Will Glass: http://www.youtube.com/watch?v=pKPhgTMaolg
Cards Melanie collected from Drink Deck:
Ian Degraaf
Founder
Vine Joy
ian@vinejoy.com
http://www.vinejoy.net
Jean Iverson
Publisher
BYOB
info@byobchicago.com
http://www.byob-chicago.com
James Villalpando
Founder
Broke Hipster
ILove@BrokeHipster.com
http://www.brokehipster.com/
Theresa Carter
The Boss
The Local Tourist
tlc@thelocaltourist.com
http://www.thelocaltourist.com
Leyla Arsan
Lotus Marketing Services
leyla@lotusmarketingservices.com
http://www.lotusmarketingservices.com
Amy Ravit Korin
Founder
Interactive Amy
amy@interactiveamy.com
http://www.interactivemay.com
Will Glass
Founder
Drink Deck LLC
thedrinkdeck@gmail.com
http://www.thedrinkdeck.com
Benjamin Pavlovic
ben.pavloic@gmail.com
Also worth noting, Mobile Visionary, an organization for the mobile industry, had a networking event at the same time as Drink Deck which took place out in Schamburg, IL. I was not able to get out there but I have asked Raymond Reinhart and Keith McGorisk who coordinate Mobile Visionary to write into The May Report about how it went. I have gone to two Mobile Visionary events so far and have found them to be quite good. Let's see if they get back to me in time for this report. In the meantime I found these photos of their event on Facebook:
http://www.facebook.com/?sk=messages&tid=1588439548940#!/album.php?aid=14495&id=105958232773750
You can learn more about Mobile Visionary by visiting: http://mobilevisionary.com/
What can Rickshaw Drivers teach us about High Tech business practices?
Getting appointed Assistant Editor for The May Report has been a real trip so far. So many crazy things have started to happen in my life. On my way back from Drink Deck I ran into three out of the ordinary characters that have a rickshaw business and offered me a ride home. I was still wearing my name tag from the event and had just gotten off the bus near 18th and Halsted Street. They were dirty and sweaty free spirits unencumbered by MBAs, politics, venture capital, and industry gossip. What can we learn from them as it applies to the high tech industry?
They made whimsical on the fly remarks about their business that can be interpreted as either genius or idiocy, but in their defense they didn't have a fancy marketing team preparing their message.
Idiocy in that they break all of the rules of how many businesses think in terms of what they need- they don't even need a name for their business-and what they consider to be, "high tech," is questionable by many people's standards.
Genius in that they seem to be happy, free to pursue creative ideas and alive. A couple weeks back I attended a talk at Social Dev Camp by two employees from Groupon and they said they measure success of projects by team happiness. Groupon is one of the fastest growing tech companies in Chicago. These Rickshaw Drivers get an A+ in the happiness department. It's definitely worth drawing some parallels. Here's an excerpt of what the Rickshaw business had to say when I spoke with them:
Melanie: Okay, guys, tell us the name of your company and who you are and what you do.
Dave: These are Petty [sic: PEDI] Cabs, tricycles. Uh, I don't have a company name. My name is Dave. This is my Petty [sic: PEDI] Cab.
Melanie: Hi Dave, this is a very nice vehicle you have here.
Bradley: I'm Bradley and this is my petty [sic: PEDI} cab...It was painted by an autistic child. I like to give back to the community.
Melanie; You said you were just coming from a Sox game is that right?
Dave: Yeah, that's right.
Melanie: Now you mentioned you are not very high tech?
Dave and Bradley: That's right, but you seem very high tech.
Melanie: So you're not very high tech, but how's business?
Bradley: Business is GREAT! It's a beautiful day outside. It's great there's no reason for it not to be.
Melanie, turning to Dave: Now what about you, you said that might not necessarily be the case. There might be some technology there?
Dave and Bradley explain how their Rickshaws are very elaborate machines. Tricycles are even more elaborate because they have one more wheel , a rear differentiator and hydraulic breaks. Dave takes out a metal fork and uses it to ring the bell on his bicycle as a way to demonstrate his creative way to use the features of his bike and explains they have a unique experiential mode of transportation that doesn't burn carbon emissions that doesn't use much of the earth beyond their bikes.
I asked for their number or a way to get a hold of them and they said they best way to get a petty [sic: PEDI] cab ride was to contact the cosmos and by chance the cosmos will put you in touch with them. It was something they referred to as Petty [sic: PEDI] Cab Magic. I have no proof this off the wall marketing concept works but it does seem to contribute to their overall joyous mood.
Dave did finally give me his phone number and it is 847-275-9417. I called Dave and this number actually works. He's excited to read The May Report. Oh, and by the way, the ride home was fantastic!
Check out the video I shot of them on YouTube: http://www.youtube.com/watch?v=l-JMamIVM1o
Melanie Adcock
iPHONE: 312-259-0610
DROID: 312-833-1825
E-Mail: melanie_adcock@msn.com
Facebook Fan Page: http://bit.ly/MelanieAdcockFacebookFanPage
Bio: http://bit.ly/MelanieAdcockARC
LinkedIn: http://www.linkedin.com/in/melanieadcock
Twitter: http://twitter.com/melanie_adcock
Facebook Profile: http://www.facebook.com/melanie.a.adcock
________________________________________
St. Louis-based Thompson Street Capital Partners acquired a majority
interest in Barcodes Inc., a Chicago company engages in barcode, mobile
computing and radio-frequency identification solutions
St. Louis-based Thompson Street Capital Partners acquired a majority
interest in Barcodes Inc., a Chicago company engages in barcode, mobile
computing and radio-frequency identification solutions. Financial terms were
not disclosed. Thompson Street Capital, which manages $450 million in
capital, has made six acquisitions this year.
PRESS RELEASE
Thompson Street Capital Partners (TSCP), a private equity fund based in St.
Louis, announced today that it has acquired a majority stake in Barcodes Inc
of Chicago. Terms of the transaction were not disclosed. Barcodes Inc
specializes in barcode, mobile computing and radio-frequency identification
(RFID) solutions throughout North America. TSCP is partnering with Barcodes
Inc's current management team and the previous owner, Dixon Midland Company,
which will remain active as minority shareholders.
"We are eager to partner with the Thompson Street team to further assess our
market strengths and ensure Barcodes Inc's continued expansion as a leader
in data collection services and state-of-the-art technology sales," said Dan
Nettesheim, CEO and co-president of Barcodes Inc.
"Having worked with the principals at Thompson Street in the past, we knew
their team would be well suited to help Barcodes Inc continue to grow and
prosper," said Aaron Mobarak, co-president of Dixon Midland Company. "Known
for excellence in customer service, Barcodes Inc serves a variety of
industries, including health care, manufacturing and retail. We look
forward to working with Thompson Street to continue to expand into new
industries and specialties."
This is the sixth acquisition for TSCP in 2010. TSCP
(www.thompsonstreet.net ), which manages
$450 million in private equity funds, invests in a variety of privately held
service, manufacturing and distribution companies.
"We are excited to support this management team and to invest alongside
Dixon Midland on this tremendous opportunity," said Neal Berman, managing
director of TSCP. "We see great promise for the barcode and RFID industry as
companies seek to improve efficiency, productivity and profitability
throughout the supply chain process. With Barcodes Inc's reputation for
product knowledge, availability and ongoing support, we are eager to build
upon its business relationships and ensure future growth."
About Thompson Street Capital Partners (www.thompsonstreet.net
)
Thompson Street Capital Partners has $450 million in capital under
management. The private equity firm makes investments in service,
manufacturing and distribution businesses. The fund's philosophy is to
partner with management in leveraged acquisitions, recapitalizations,
corporate divestitures and going-private transactions. Thompson Street
Capital Partners is located in St. Louis, Mo. and was founded in 2000.
About Barcodes Inc: (www.barcodesinc.com )
Barcodes Inc is North America's leading provider of barcode, mobile
computing and radio-frequency identification solutions. For more than 15
years, the company has earned the reputation for being dedicated, reliable,
and customer-oriented. Barcodes Inc's product experts have extensive
experience in field mobility, inventory and point-of-sale solutions.
About Dixon Midland Company: (www.dixonmidland.com
)
Dixon Midland Company is a private investment firm that acquires and manages
growth-oriented companies. The firm strives to invest in a limited number of
businesses so that it can spend substantial amounts of time helping each
business grow.
____________________________________
Charles Stack: Reply to Mr. Stopa regarding blog "Watts Up With That?"
From: "Charles Stack, MPH" <cstack@2ci.com>
Sender: "Charles Stack, MPH" <cstack@2ci.com>
Subject: Reply to Mr. Stopa regarding blog "Watts Up With That?"
Date: Sat, 28 Aug 2010 00:42:11 -0500
To: "ron@themayreport.com" <ron@themayreport.com>
Hi Ron! Thanks for posting my email to you about the blog "Watts Up With
That?" (WUWT) and their upgrade in service provider.
I shared Mr. Stopa's reply to my email with Anthony Watts, and he replied:
"REPLY: gee, all that from a simple announcement on an upgrade to
wordpress.com features I made? Anthony"
My original email was to bring the existence of Layered Technologies Chicago
operations to the attention of your readers. I was not aware of this B2B
facility and found the news facinating.
Mr. Stopa's reaction to the blog WUWT seems quite typical of reactions I
perceive regarding climate change, i.e. You are either "for" or "against."
I've studied climate change at University of Illinois since 1979, attached
is a Jack Mabley article discussing my research in alternative energy.
Mabley's article actually made page 1, column 1 of the Trib morning edition.
Watt's blog WUWT is fascinating for its diversity of contributors and its
focus upon the business side of climate change. These are not routinely
discussed in the blogosphere or conventional media. As a consultant to
greenhouse mitigation firms in the US, Canada and Europe, I've witnessed the
utter collapse of European cap and trade and carbon trading systems, which
does not augur well for the USA if we choose this path.
I found this posting about the Chicago Climate Exchange quite interesting:
http://wattsupwiththat.com/2010/08/13/chicago-climate-exchange-still-flatlin
ing-employee-cuts/
Another story on WUWT pertains to John Deere:
http://wattsupwiththat.com/2010/08/25/nothing-runs-like-a-deere-company-bail
s-on-cap-and-trade/
Anyway, please know that you have a fellow "skunk in the room" in Anthony
Watts! All the best, Chuck
Charles R. Stack, MPH
Vice President
Constant Compliance Inc.
140 South Dearborn Street
Suite 411
Chicago, Illinois 60603 USA
Cell phone (630) 841-8706
Fax (312) 782-0936
Website: http://www.2Ci.com/
_______________________________________
Dave McMurrray: Thanks again
From: dave mcmurray <loslobos416@yahoo.com>
Subject: thanks again
Date: Fri, 27 Aug 2010 14:54:16 -0700 (PDT)
To: ron@themayreport.com
Hi Ron -
Once again please accept my thanks for your time over the phone earlier today - quite an interesting conversation regarding our relative hospital experiences. Towards that end, here's the latest regarding Madigan's lawsuit against the non - profits:
http://articles.chicagotribune.com/2010-03-19/business/ct-biz-0319-provena--20100319_1_charity-care-nonprofit-hospitals-tax-exemptions
Unfortunately I haven't heard of any new developments since the Supreme Court announced their decision.
Have a great weekend.
Dave McMurray
*BTW, forgot to mention your excellent takedown regarding the Trib article titled "Rebooting Chicago's Tech Scene." Nothing but a rehash, quite a lazy piece of work by the "reporter" in question.
++++++++++++++++++++++++++++
From: dave mcmurray <loslobos416@yahoo.com>
Subject: re: Governor Christie response to Race to the Top snafu
Date: Fri, 27 Aug 2010 14:58:52 -0700 (PDT)
To: ron@themayreport.com
Forgot to add this - don't worry, I'm not going to start flooding your e - mail box now:
http://www.youtube.com/watch?v=rLSahbjR3k0&feature=player_embedded
______________________________
J. Kaufmann: Question about the CHTA and the CSA
From: jkimaging@aol.com
Subject: Re: The May Report: 8/27/2010: How do Illinois and Midwest firms rate in the INC 500 and 5000?; Dave McMurray -- a profile in courage; The raging debate over the role and history of the Koch brothers; Is "Watts Up With That?" a science blog?
Date: Fri, 27 Aug 2010 21:20:52 -0400
To: ron@themayreport.com
Ron :
Going back to local Ancient Times ... When was the Chicago High-Tech Association first renamed ?
And next week, possibly even today, but certainly no later than the 31st of August, is the 13th anniversary of the first online TMR newsletter being sent out; and this August is the 18th anniversary of my writing about the tech industry (software at the time) in Chicago following my now famous four hour first conversation with Dick Reck -- and that was followed by many hours talking to Wally Cornett, Jerry Mitchell, Bill Weaver and Bob Geras; and this month is the 22nd anniversary of my first column in the now defunct Chicago Computer Guide, a trade rag for the computer field distributed in boxes on the street.]
Best,
J. Kaufmann
+++++++++++++++++++++++++++++++
Subject: Re: Denison resigned in '98 after 5 yrs as ED. CSA started late '93. Right, Dick?
Date: 8/29/2010 8:56:13 A.M. Central Daylight Time
From: jkimaging@aol.com
To: dick@rreck.com
CC: RONALDMAY@aol.com
Thanks, Dick. Your timing looks correct.
I moved to the area in the mid-80's, and I remember attending several CHTA meetings downtown Chicago in the late 80's (from '87 on)
'Imaging' had to be explained at the time ...
Best,
Jacques Kauffmann
Imaging Management & Communications
-----Original Message-----
From: Dick Reck <dick@reck.com>
To: RONALDMAY@aol.com; jkimaging@aol.com
Sent: Sat, Aug 28, 2010 10:13 pm
Subject: RE: Denison resigned in '98 after 5 yrs as ED. CSA started late '93. Right, Dick?
Ron - I don't remember the exact dates - just that the Illinois Software Association and Center was started in 1982 and I was on that first board and was started as a result of the economic development initiatives of Governor Thompson's Department of Commerce and Community Affairs. The CHTA started about the same time as a result of an initiative growing out of Mayor Byrne's office.
We merged with the Chicago High Tech Association in the late 80s or early 90s and a few years later changed the name to the Chicago Software Association as about 90% of our membership companies were software companies. We brought in Ed Denison and he resigned when he decided to move to Arizona.
So, the CSA was not started in the 90s as it really was just a focusing of the merged operations of ISAC and CHTA on our predominantly software membership.
To get the exact dates, I would have to dig around in a bunch of boxes I have not opened up in years. Hopefully, that is helpful to you.
Dick Reck
Business Strategy Advisors LLC
BSA Heartsfield
BSA Management
128 Hillcrest Avenue
Hinsdale, Illinois 60521
312-307-8030
425-740-0987 Fax
dick@rreck.com
--------------------------------------------------------------------------------
From: RONALDMAY@aol.com [mailto:RONALDMAY@aol.com]
Sent: Friday, August 27, 2010 8:51 PM
To: jkimaging@aol.com
Cc: dick@rreck.com
Subject: Denison resigned in '98 after 5 yrs as ED. CSA started late '93. Right, Dick?
_______________________________________
Bill Scheurer: KarmaKorn Opening
From: "Bill Scheurer" <wcscheurer@comcast.net>
Subject: KarmaKorn Opening
Date: Sat, 28 Aug 2010 14:17:16 -0500
To: "Ron May" <ron@themayreport.com>
Chief Tech Star
KarmaKorn is looking for a hands-on tech star to join our two-person management team. You must be fluent in the LAMP stack, Javascript & Ajax. Strong skills in reading/writing APIs are important too.
This is not a job or contract opening. It is an opportunity for a tech entrepreneur to help build the next big thing. You need to be able to work 3-6 months before we get to VC funding & employment.
KarmaKorn ... grow good! is a social app & virtual currency that lets people buy and sell "actions" they believe will help make the world a better place. It doesn't require any money. Instead, you earn KarmaKorn "kernels" for doing actions other people want to see done, and then can use these kernels to pay other people to do actions you want to see done.
Visit our initial Facebook app to see if KarmaKorn calls to you:
Fan page - http://bit.ly/KKfan
App page - http://bit.ly/KKapp
Website - http://KarmaKorn.com
Bill Scheurer
Chief Karma Officer
847-245-1421 home
847-370-3411 mobile
http://KarmaKorn.com
karmakorn_email_stacked
_________________________________________
Thomas Bennett: Why did Marty Nesbitt abruptly leave the Chicago Housing Authority? Inquiring minds want to know....
From: Thomas Bennett <tomrbennett@yahoo.com>
Subject: Why did Marty Nesbitt abruptly leave the Chicago Housing Authority? Inquiring minds want to know....
Date: Fri, 27 Aug 2010 16:15:56 -0700 (PDT)
To: The May Report <ron@themayreport.com>, ronaldmay@aol.com
Hey Ron:
I hope this email finds you doing exceptionally well.
Quick question....Why did Marty Nesbitt abruptly leave the Chicago Housing Authority?
http://www.suntimes.com/news/cityhall/2644690,cha-ceo-082810.article
http://newsblogs.chicagotribune.com/clout_st/2010/08/daley-names-new-cha-board-chairman.html
http://www.wbez.org/Content.aspx?audioID=44081
Perhaps, Rich Daley and Team Obama see a "federal-lawsuit" coming down the pipeline due to Marty Nesbitt's illegal steering of 626 West Jackson for campaign contributions?
Thomas R. Bennett vs. Chicago Housing Authority, Obama Victory Fund, Marty Nesbitt, et al.
biggovernment.com/bgough/2010/01/26/the-fix-was-in-obama-donor-gets-sweetheart-real-estate-deal-in-chicago/
breitbart.tv/the-b-cast-interview-obama-donor-gets-sweetheart-real-estate-deal-in-chicago/comment-page-1/
So, when exactly will Mr. Patrick Fitzgerald be explaining his "logic" behind Ed Vrdolyak is going to federal prison after being accused of essentially the same illegal behavior that Marty Nesbitt & Company engaged-in in 2007?
Interesting.
Stay tuned.
And grab some popcorn folks.
Sláinte,
Thomas R. Bennett 773.658.4840 (mobile)
--- On Fri, 8/27/10, The May Report <ron@themayreport.com> wrote:
________________________________________
John Aiello, CEO of SAVO Group, looks good on Television, by Melanie Adcock
Subject: John Aiello CEO of SAVO Group looks good on Television
Date: 8/28/2010 3:51:40 A.M. Central Daylight Time
From: melanie_adcock@msn.com
To: ronaldmay@aol.com
John Aiello, CEO of SAVO Group, looks good on Television
By Melanie Adcock
My funniest memory of working at the SAVO Group was when I struck a bet with a VP there that if I scheduled a certain number of sales appointments that he would have to give me one live chicken. I won the bet. Still holding out for the chicken. If said individual would like to make good on this bet he can feel free to send it in care of The May Report. A chicken might be good company for Ron.
John Aiello, the CEO at SAVO, kept track of the progress of this bet because he's that kind of guy- the type of person who talks to everyone and isn't one of those important people who's too important to ask the little guy how their day is going. He's also a great speaker.
Recently John took part in a televised panel discussion on CBS Sunday Morning News as part of Tech Corner, a segment that focuses on new things happening in technology. While on camera John gave his usual SAVO Sales pitch, but one thing you'll notice is the excellent delivery. There was no stuttering or hesitation and demonstrated excellent eye contact and hand gestures. He only used the word um once, but in all fairness it was barely audible.
Why do I bring this up? After seeing a ton of brand new companies pitching their products and ideas, I've learned this sort of confident well spoken appearance is rare. Many start-ups would do well to take a leaf from his book.
http://blog.savogroup.com/2010/08/john-aiello-on-cbs/
http://cbs2chicago.com/video/?id=73369@wbbm.dayport.com
John also wrote in this incredibly nice note. Thanks, John!
Hi Melanie:
Thank you very much for the note and for the kind words. Things are good with me, and I hope you are well also. The live TV appearance was a lot of fun (albeit kind of intimidating :-)... )... glad you felt the discussion was a good one.
I was not aware of this news below, so first let me say congratulations to you. You have always been very active in Chicago and the tech community, so it seems like a great fit. I will look forward to your insightful, educated, and energetic reporting and opinions on things you see around town. I sincerely wish you the best of luck with that.
As it relates to SAVO, there continues to be a ton of positive momentum going on, on every front. The Sales Enablement space is indeed hot, and while we take pride in having pioneered it and in our growth as a company, we never rest. We continue to innovate aggressively and never lose sight of what truly matters most... our customers' success. If anybody wants to write about SAVO in any regard, all I would ever ask is that they take the time to reach out to me as part of their research.
Again, Melanie, all the best to you. Take care.
-John
______________________
John Aiello
CEO
SAVO
www.savogroup.com>
Office: 312-506-1711
Mobile: 312-560-9648
________________________________
From: Melanie Adcock [melanie_adcock@msn.com]
Sent: Tuesday, August 24, 2010 1:04 PM
To: Aiello, John
Subject: Hi there from Melanie Adcock
Hi John, Just in case you didn't already read this... I was imagining you saying something funny like God help us, LOL! Anyway, what a huge surprise. It's only volunteer and I still have my day job. Ron's said so many things about Savo, maybe I can convince him to write something nice? Anyway, I did see you on television recently on a panel discussion. You looked great and had the same spot on message as usual. Hope you're well. I think of you often and fondly. Take care, :) -Melanie
To read this report in full please click here:
http://tinyurl.com/278yvy4
* And now for my big announcement.
Melanie Adcock
iPHONE: 312-259-0610
DROID: 312-833-1825
E-Mail: melanie_adcock@msn.com
Facebook Fan Page: http://bit.ly/MelanieAdcockFacebookFanPage
Bio: http://bit.ly/MelanieAdcockARC
LinkedIn: http://www.linkedin.com/in/melanieadcock
Twitter: http://twitter.com/melanie_adcock
Facebook Profile: http://www.facebook.com/melanie.a.adcock
_______________________________________
Briefly noted, by Ron May
* As I have been going over various tapes, including for Barcamp 2010, there are some interesting tidbits. One is that if you are a grad student teaching undergrads, the students might give you higher evaluations if you have a tattoo.
Another question was whom would you want to have dinner with: Bill Gates, Steve Jobs, Eric Schmidt -- and most people not being satisfied with this particular selection -- they added Steve Ballmer because he seemed to be the unofficial favorite choice.
The question was also posed: Whom in the tech world do you want to have sex with? I am not sure who won out on that. There were about 92% men at this event.
Other topics included relationships with sponsors, the limits of open source, ISPs and hosting firms, pricing for them, energy issues and one person suggested taking solar energy from satellites and microwaving it down to earth.
This report is not about to become a daily critic of Groupon. Leave that to others like the Chicago Tribune. :-)
I believe we should deal in hard data, not just anecdotal evidence from a few vendors who have a gripe. The Trib article below raises valid issues, but it is just a few data points. The owner of the Chicago Bagel Authority really has no way of knowing if the Groupon experiment paid off unless he tracks all his customers. And how many of the vendors make an effort to make a Groupon customer a regular customer?
If Groupon is somewhat analogous to what retail stores do in creating a "lost leader" on the theory that once in the store people will buy other things where the profit margins are higher, then the question becomes: What is the rate of repeat business?
Is Groupon a one-off deal for most vendors or is it part of a longer term customer acquisition strategy.
What is there to prevent a vendor from offering Groupon customers an additional discount on their return visit or at least getting an emmail address for future contact?
My only issue with the Trib article by Wailin Wong and Robert Channick is that it is only a few data points. I would prefer to do a survey of fifty vendors to get a more complete picture.
Three or four people have given me their take. Rachel Baker, a panelist at Barcamp, said that the deal with The Gap, and going national, may portend difficulties dealing with the local vendors. National is cheaper to do and it involves fewer sales people and fewer feet on the street, but it does have a potential to shift their entire focus.
The local flavor is part of the charm.
Remember that this is essentially a recession based business. It gets lift because people are cost conscious and bargain hunting.
Jason Rexilius raised the issue of the 50% margin going to Groupon. He said that Groupon could be replaced by a Facebook app. Also, he questioned how long Groupon is going to get a 50% margin from its vendors. The 50% margin will probably have to cave a bit or even a lot.
Kevin Harriss pointed out and I have heard this from a number of sources, in fact, it has been quoted in articles, that Andrew Mason is telling local developers not to start up their own firms because they want to make Chicago the epicenter of the action. There is that "giant sucking sound" aspect to the way they are talking. And there are some echoes of good ole Flip Filipowski when divineinterVentures started.
Tim Saylor responded "F*** that, Andrew Mason."
We all know that true entrepreneurs want to start their own businesses. It should also be pointed out that by the time these comments were made, the Drunken Panel had lived up to its name.
Groupon customers are not all just internet bargain hunters who want to squeeze every penny out of a deal. But many of them are. Groupon and the vendors together can probably piece that picture together.
DD pointed this out to me four or five months ago, but I did not want to sound like a nay-sayer, so I never wrote it. Now, today, everyone seems to be piling on, which is the habit in Chicago when there is a success story in the making. This town has a long history of doing that and this report has been one of the worst offenders.
The message here should not be that Groupon is bad or that the vendors are helpless and hapless victims of being overwhelmed by discount seekers. It should be that we must recognize that customer acquisition is not just a matter of competing on price alone.
My own theory is that many Groupon users are intrinsically variety seekers and bargain hunters. They may not want to be regular customers at spas or at particular restaurants for that matter. (Just an aside, Groupon should talk to GrubHub about the customers at their restaurants and cross-correlate the data. Are GrubHub regulars also using Groupon and for what?)
At this point, the data should be there even if it is not all in one place.
The variety seeker and bargain hunter issue would make for a good study. Talk to the Groupon users and find out if they are prone to seek out only particular types of deals or if they are open to a wide variety of deals across industries.
There is much that we don't know and Groupon has the access to the data that we don't. But we are all learning. One thing that The Trib and the other article miss is that this is a work in progress and Groupon can adjust its model as it goes along at any time. Wailin's last paragraph was a bit of a cheap shot, I think. She and her co-reporters wrote: "Tim O'Shaughnessy, chief executive and co-founder of LivingSocial, a major Groupon rival based in Washington, D.C., said his company will be introducing new features that address the problem."
Wailin, there is nothing preventing Groupon from addressing the so-called problem as well. Groupon is changing every day and nothing is etched in stone.
For once, I am sitting back, observing, and I see visions of 1999 and 2000 all over again. A really hot firm springs forth onto the scene in Chicago. The stages parallel the five stages of grief. First there is shock and awe. Have you heard about this great new firm? Second, there is the hype. Look at how fast they are growing (as in the Forbes article). Third, there is a period of evangelizing as publicity levels increase. This business is transforming the way business is done. And come on in, the water is warm. Fourth, then comes the "discovery" of the chinks in the armor even though the problems were extant all along. This thing can't be as good as they say. It can't possibly live up to projections for success. Fifth, as only Chicago can do it, with a history of inferiority built deeply into its cultural psyche (witness a baseball team that has not won the World's Series in over 100 years and nobody is bothered by it,) then comes the piling on.
After the piling on, finally, the firm is sold or leaves Chicago or flops. Andrew Mason has made it clear he wants it to stay right here. Dick Costolo sold out Chicago and comments to that effect were made at Barcamp, but he was smart. He sold FeedBurner when it was hot and did not wait for the denizens to turn on the firm. Stephen Meade used to use the analogy of crabs trying to climb out of a bucket. The minute one got up the side of the bucket and almost got out, the others would pull it back in.
I don't want to repeat past mistakes in this case. I would like a TMR approach which reports legitimate comments and issues, but also dig deeper and not just add to the piling on. There is real research to be done on Groupon that TMR can contribute.
Look at the titles of the Trib article and the other article: "Groupon may be tricky for businesses" and "Will Groupon KILL your Salon and Spa business?"
Both headlines start with a presumption of problems. I would file it under "Duh!" Note little mention in the articles of the tremendous success of the firm, the hockey stick growth, although they do give numbers on subscribers. But where are the quotes from the happy vendors? Buried. The articles could have been titled "How to use Groupon to your advantage if you're a vendor" but that would not sell newspapers.
Slap me, slap me hard. Is my name Ron May? Did I just write that? Could it be the effect of that Adcock woman?
+++++++++++++++++++++++++++++++++++++++++
http://articles.chicagotribune.com/2010-08-16/business/ct-biz-0816-groupon-20100816_1_groupon-businesses-chairs
Growing with Groupon may be tricky for businesses
Surge of customers can hurt bottom line or alienate regulars
August 16, 2010|By Robert Channick and Wailin Wong, Tribune reporters
Michael Tercha, Chicago Tribune
The online group-buying model pioneered by Groupon has become big business, so much so that it's creating growing pains for both the Chicago-based company and the small businesses it's supposed to help.
Greg Gibbs, owner of Chicago Bagel Authority in Lincoln Park, felt this pain firsthand when he signed on with Groupon for a deal-of-the-day in January. His promotion, which cost $3 for an $8 voucher good for any menu item, sold nearly 10,000 Groupons, 10 times more than the top end of Gibbs' expectations.
"This will end up being the year of the Groupon for us, and that's not a good thing," Gibbs said. "We'll count it as a loss. "
After splitting 50 percent of the revenue with Groupon, a standard deal for most businesses, the shop netted about $15,000 for $80,000 worth of food. Gibbs said the promotion hasn't yet translated into additional revenue.
"We just don't get the kind of customer that we want to come back," said Gibbs, who saw patrons put items back if their total exceeded $8. "It's a lot of people that come once for the discount, nobody tips, and they're all trying to squeeze it into the exact dollar amount."
"Let the seller beware," a twist on the old commerce maxim, has become the mantra for a growing list of local merchants that have been overwhelmed by the response to Groupon's popular model. The site offers new deals every day at a deep discount if a minimum threshold of buyers participate.
Groupon has more than 500,000 subscribers in the Chicago area, and an onslaught of rivals has emerged with nearly identical business models. Groupon said it's counted more than 500 copycats worldwide.
"The challenge (for local businesses) is that the way Groupon is constructed today, it's going to go throughout the Chicago area," said Mark Goodman, workshop chair at Score Chicago, a nonprofit association that counsels small businesses. "It runs the risk of giving you distribution beyond what's logical for your business. That's why sitting back and saying, 'What is my business and marketing plan?' is really important."
Groupon spokeswoman Julie Mossler said the company has multiple strategies to manage its increasing scale without alienating small businesses or consumers.
"We certainly believe in learning from past experiences," Mossler said, noting that the company has added staff to its merchant service team. "We've had (sales) representatives go through even more detailed training in terms of different recommendations they can make.
"When a spa is featured, we know to ask how many chairs they have. We did this in the past, but now we're more vigilant about pushing back. ... If you know you can't handle this level of traffic, either you need to staff up and get more chairs if you're a salon, open your books and allow more appointments, or we can put you in a personalized deal or put in a cap."
Groupon started testing personalized deals in Chicago and five other cities last month, asking subscribers for their gender and ZIP code. Mossler said the program eventually will offer deals to consumers based on their Groupon-buying history.
This feature transforms Groupon from a daily deal site to a service that offers multiple promotions per day. Mossler said the segmentation will allow a business that can accommodate only several hundred new customers to participate comfortably.
The Groupon wave can unsettle even a merchant with large capacity. Blo, a 3-year-old beauty salon on West Armitage in Chicago, netted 4,000 new clients in one day in an April promotion, said owner Elizabeth Floersheimer.
The phones were tied up for 10 days after the deal, which cost $40 for $110 in services, and the salon is booked through September.
Unable to get through, Groupon holders groused about the experience on the online review site Yelp, damaging the salon's reputation among the same tech-savvy constituency it sought to reach. Hoping to assuage core customers, the salon posted a message on its Web site instructing regulars to send inquiries via e-mail.
"We never could have been prepared as far as the phone lines go," Floersheimer said. "We have a strong following, and our regulars couldn't get through."
Groupon has increased its outreach to merchants, hoping to get more feedback from local businesses and better prepare them for promotions. A checklist sent to business owners advises them to add an additional phone line for every 100,000 Groupon subscribers in their city. They also are reminded to increase staff, stock additional merchandise and make sure their Web site servers can handle a fivefold increase in average daily traffic.
In an effort to help merchants plan ahead, the site notes that 20 percent of vouchers sold typically get redeemed in the first month, and 15 percent will be used in the promotion's expiring month.
At Marion Street Cheese Market in Oak Park, assistant general manager Michelle Dirks said the bistro should be prepared to handle some 3,750 Groupon customers that bought last month's deal. The restaurant's offer was $20 for $40 worth of food.
"It is a promotion budget that is spread out over the course of the year, so we're not looking at having $150,000 of value gone in this week," Dirks said.
Preparing for life after Groupon is also important.
"If someone comes in with a Groupon, make sure you get their e-mail address," Goodman said. "Make sure you have a plan to convert that visit into ongoing business."
Silver Lake Country Club in Orland Park is planning to do that. In April, the club offered a $27 deal for a round of golf and a cart, discounted from $61. It sold almost 7,500 Groupons. Golf director Bert Coghill said he's planning to tap his new clients with direct offers. The fresh faces at his club were mostly younger players from Chicago, and the influx didn't displace regulars, making the experience a positive one.
The Groupon users "are actually filling a time slot that I have a really hard time filling," Coghill said. "We still have to cut the grass, we still have to fertilize, whether we have people here or not, so you might as well get some people here."
The dilemma of getting more subscribers while remaining an effective marketing tool for merchants is one that Groupon's competitors will face as they grow.
Tim O'Shaughnessy, chief executive and co-founder of LivingSocial, a major Groupon rival based in Washington, D.C., said his company will be introducing new features that address the problem. Possibilities include offering an exclusive deal to a small subset of loyal users or targeting deals to a specific neighborhood within a city.
These kinds of strategies will ensure that even the smallest of small businesses still can run a group-buying promotion.
"If we truly are viewing ourselves as a city explorer and a service to help you find cool and new things to do in your city, some of those things will be 10-table restaurants," O'Shaughnessy said.
wawong@tribune.com
+++++++++++++++++++++++++++++++++++++++
May again. I called Greg Gibbs of Chicago Bagel Authority and he was not in today, Monday, but one of the workers told me that the bit about alienating existing customers did not apply to their Bagel store, but rather to a spa for which Groupon had offered a deal. She explained that some of the regular spa customers were put off by the new people coming in and taking the appointment times away from the regulars. I would like to know how that $80K cost figure is arrived at. In the food biz, cost of goods sold runs about 37%. Is that $80K out of pocket or list price?
My issue with this article is that it is not so much a critique of Groupon as it is of the vendors who should know better and understand the complexities of creating true customers rather than one-off bargain hunters.
It does seem to support Rachel Baker's point about the need for feet on the street and the need for developing longer term vendor relationships. If Groupon just goes national, with deals like The Gap, they may lose some of their local connections, Rachel said. There are trade-offs.
May again. Groupon may not be for every industry. Service businesses such as spas which are built on longer term customer relationships may not be the best fit.
The article below highlights the problem and be sure to read the comments.
++++++++++++++++++++++++++++++++
http://salonmarketingblog.com/?p=286
Will Groupon KILL your Salon and Spa business?
by admin on June 13, 2010
As times stay "tough" we're kicking things into high gear. We're refining our marketing plans, business systems, marketing systems, retail, upsells, expenses... everything we can tweak to make us leaner and meaner to give us more of an edge on the competition as each day passes (and YES, these are the things we'll be making available to you in our "marketing systems" program).
We even have an edge on the chain franchise discount places who have huge places (at triple our rent) and are still direct mailing the masses to get new clients through the door in the hopes of selling a membership.
Many places are in dire straights, so watch out for those opportunistic sharks who will be knocking on your door very soon. FYI, in the "internet marketing" world the new buzz word is "local businesses" and their plan is to cash in on YOUR despair by showing you how to do the simplest of tasks for big bucks (things we talk about daily in our forums online and monthly during our mastermind call, which is this morning).
... and leading the pack of these vultures are the hoardes of sites opening up in your town offering a "deal of the day" such as Groupon, LivingSocial, the local newspaper and others. So what do you do about them?
Well, the plus side is that these guys actually offer you a piece of the pie, unlike radio and tv that have been taking your gift certificates, selling them for half off and keeping it all in the name of "exposure" for you (btw, whenever someone plays the "exposure" card, it's a bad idea for you). But half of something half off doesn't leave you with much.
Things to consider:
- Are your expenses lean and mean? Can you do it for 25% off and still make a couple bucks?
- Is your staff trained in adding on services, upselling, spa-scribing programs and/or retail items?
- What are your real chances of selling this client on coming back when they'll get another offer online in another week? Most spa clients don't return but quarterly anyway at best.
- What will be the consequence of offering your services so low to your reputation? The "lowest price" game is one best avoided.
- How can you add value instead of lowering your price?
...and it goes on and on.
Here's an idea, try this on. How about tapping into that goldmine right in your own back yard of your existing clients? When was the last time you emailed them? Sent them a card? (www.CardEmergency.com) or even simpler and cheaper, picked up the phone and called them???
How are your staff? Are they trained in all the opportunities you have available each time a client is with you? Is each welcome face through your door a potential goldmine or are they doing what most do... which is leave money on the table???
Have you started tracking your marketing to see what is getting you a ROI (return on investment)? Have you cut the stuff that ISN'T WORKING (i.e. the phone book)? Have you started marketing online and with social media?
There isn't one way to get 100 clients, but there are 100 ways to get 1 client and you need to be setting all of these things up to bring you a steady stream of new clients automatically. (HINT: It all starts with a marketing PLAN).
...comment here on our blog please:) And make sure to signup as a member if you haven't yet, because if you work ON your business an hour/day you could quite literally turn around your business overnight.
"Who loves ya?"
-Christopher
{ 8 comments... read them below or add one }
Liliya June 14, 2010 at 9:13 am
Great topic of discussion. In this tough economy time, when people expect to pay lowest prices for the great service, becouse spa and skin care business are hurting, we need encoragement to help remember how to survive and promote business.
Ashley June 14, 2010 at 9:47 am
As always, Christopher hits it right on the nose. Great info - but it's no good if you don't put it to work. It doesn't have to be perfect, just implement something - and tweak as you go. just do it! Have a great week - enjoy your customers, reward your staff and keep moving forward! You can do it! God bless!
p.s. I decided to NOT jump on the Groupon wagon. One time exposure to me is never worth it.
Sandie W June 14, 2010 at 10:58 am
Thank god we are addressing this as an industry. I had one spa partner program put out a 50% off without my permission. So I felt obliged to honor the clients that came through as I have built a solid reputation through hard work, quality of services and high customer service.
Here is my experience of the few people that did book appointments:
One called and said she was unable to pay the $25 that her appointment was costing and could she reschedule. She also kept calling to make sure she would be receiving everything the regular clients would get, ie. sauna, steam room, jacuzzi, ocean view.
In addition to getting paid only $25, the spa partner also took out an additional $7!
Client #2, calls me 2 hrs before her appointment and says she cannot make it, can she reschedule for 6pm. I told her we are booked and that we had discussed there is a 24hr cancellation policy. I gave her a courtesy reschedule for the next day.
From the very beginning, she was the most unfriendliest person, I had ever met. She never even looked at me. We served her tea on the ocean porch and gave her the same courtesy that we would give any client. I knew something was not quite right as she came into the tea room and started some strange behavior. ie. moving things around abruptly, marching around the aromatherapy store, just things that made me scratch my head as to how I could put this client at ease. I decided that maybe a tour of the premises would put her at ease (she wasn"t at all interested in anything I said and still made no eye contact . I said to her, "I want to meet your expectations and be sure everything is exactly what you were expecting of your visit" she seemed assured and then she said " I will let you know after I have had my treatment". The red flags were there. To cut a long story short, she began asking some very strange questions, and this is the first client that I had to refuse service to (I had to - I even offered her a gift certificate for another day as a courtesy) she almost ran me over with her car as I tried to continue to please this client (I would never have been able to please this client). She left ranting that I would hear about this.
There were another 2 clients, one who was rude over the phone who hasn't made it here yet, the other had said she was going to another spa that she got at half price next month, I wonder if I will see her again....She told me about all the spas she has been to at half price.
Most of my clients are so precious that they actually leave and give me a hug, I find them relaxing like they never have before, I never tire of their compliments and I feel very blessed to enjoy such a work environment and to offer them a retreat at the ocean.
I think that these half-pricers are simply not our clients and I am shaking like a leaf after this traumatic experience. If we continue to allow them to sell our spas cheap we will all lose.
It is great to offer restaurants, boat tickets etc at half price but our services are really special in that we have an exchange of energy with another human. There are only so many massages a therapist can do a week without it being routine and machine-like. We are part of the health paradigm, this volume supermarket situation is truly going to hurt us all in the long run.
Janet (Mambo-Tango) June 15, 2010 at 10:19 pm
That was an amazing comment and very well said. I guess it is true - not everyone is your client. You can't please people who want "free". Ok all you "lurkers" out there in blog land - what are you doing to get your spa moving? Don't be shy - post in the forum or here on the blog or at least give Chris a call and he will make you sit down and write up a to-do list and call you back in a few days and check in with you. If you need hand holding - just ask for it! Your staff will see you working hard and trying to make things happen and they will follow suit. Be the leader. Act like a leader. Make things happen! Great article as always Chris! Jan
Lori Hoyt June 18, 2010 at 3:31 pm
Great input above. As a medspa owner, laser technician and MBA (not that titles mean anything....the school of hard knocks is just as helpful)...I'd like to applaud the efforts of those that stick to their marketing plans (you do have one right?) as well as their tracked strategies and refuse to be lurred into accepting 50% off 50% off! Last I checked, my tuition and training fees were due in full. I opened my first medspa 8 years ago in MD and my second medpsa (in TN) almost 2 years ago...times get tough - but clients are and can be loyal. This is a relationship builiding business! Treat your clients (and employees) well - it will be returned. Getting new clients in for the supposed "free" exposure and having to deal with the issues above....doesn't feel good does it? Nope. Yet, giving a free add on service to a long-time loyal client who just recently divorced, etc...feels really good! When you aren't giving your time and talent away - you can afford an occasional freebie to your loyal top 10 clients...it feels great and that client walks out a clients for life - and they tell everyone. One more point...you know those hard to deal with clients? Kick em off the short bus fast....because - birds of a feather flock together! Do you really want their friends in your spa? Have a great weekend. We're booked full - laser running 8-10 hours per day - and it's summer!
Scott and Eva Kerschbaumer June 19, 2010 at 7:06 am
Great comments everyone but I think that the "Goldilocks Zone" exisits somewhere between Lori and Sandie. In our 8+ years, we have offered only 1 of these third-party "50% Off" deals (with a local television station). Our particular deal sold out (200 certificates) in less than 5 minutes. And yes, there were a handful of "new guests" who were obviously there only because of the deal and did present a problem. But the biggest problem that we found from participating in that "deal" was that many of our existing customers went and bought these 50% off coupons. That was over 5 years ago.
Groupon came calling last fall and we looked closely at their arrangement and finally said no after a long talk with their lawyers because they would not change the fine print which put the entire liability of any certificates sold (including the part that Groupon keeps) on us, the merchant.
Regardless, I think there is a way to specifically target certain audiences with special deals and bonuses - we NEVER discount but we are not afraid to offer very substantial bonuses (big difference there) because the key is the type of guest. We will offer 2nd services for free or "bring a friend for free" specials because if a loyal client is bringing a good friend who has never been to our spa - THAT new guest is probably going to be a good continuing guest (additionally, the friend who brought her is going to act as a personal assistant most of the day - give her tours, introduce her to staff, tell her what is great, etc, which helps us immensely).
Eva gives stuff away (products, treatments, dinners, louis vuitton purses) to our best guests all the time. It makes Eva feel good and it makes our guests rabidly, fanatically loyal - which makes me feel good. And they buy, more, often. The key (and the "Goldilocks Zone" secret) is that WE are the ones giving things away at our spa, not Groupon or the local radion station or some other outlet.
A bit rambling but if you want some details or just want to chat, ask Chris for our number and we can help you dominate your market. Have a great weekend.
Nikki Hyde July 1, 2010 at 11:04 pm
Something I learned a long time ago- never give specials, just adjust. I have never in my 12 years of working in this industry seen so many use Groupon and as "wonderful" as they say the service is, once the coupon is out and a very professional service given the people who look for a deal will look somewhere else for a deal. Loyalty means nothing because of underselling. I love what I do but notice this coupon is detrimental to business and to continuity of care we put into each and every client and service. Just my 2 cents.
Richard July 20, 2010 at 3:11 pm
i have been promoting salons and spas for 17 years and all of my clients give something away. The fact is if someone is sitting around doing nothing, they are not making a penny. Granted my promotions are for new clients only and geared towards down time. The schools tell these kids these days that they will make 6 figures in this industry but does not teach how to get the client in the door.
Would you rather
A. Would you rather spend $1500 for radio or television or even a billboard or
B. Put that money into people who never been in your place, in services that cost nothing to do, that just takes time to show them what you can do.
I do understand and would not go with a groupon that will sell thousands and you cant get in your normal paying clientel but if you give away mini services your staff should be able to upsell or look for a new job!
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May again. Enough on this for today. I will say that many vendors in a down economy may not be ready to handle variety seekers and bargain hunters. They need to get ready if they are going to use Groupon and survive economic conditions.
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