While small businesses may not be able to undercut the discount prices of products sold by “big box” retailers such as Wal-Mart, they can succeed in the face of such competition if they fully exploit their greatest strengths—the ability to build and foster a close relationship with their customers and each other.
That’s the message Roy Prevost delivered last Wednesday to the 60 people from area businesses attending his seminar, “Creating Customer Loyalty,” at La Place Rendez-Vous.
And the Burnaby, B.C. consultant, who has been giving talks full-time for three years on overcoming the effects of living with “big box” retailers in communities from coast-to-coast, seemed to be getting his message across.
“I thought it was good,” said Angela Halvorsen, business investment officer with the Rainy River Future Development Corp. here.
“He [Prevost] gave a very good seminar, he didn’t hold back. I only wish there would have been more people there to hear it,” she added.
While not a business owner herself, Halvorsen said the information was valuable nonetheless.
“The importance of having a customer service strategy, and making sure your employees are on the same level as your strategy—this a message worth repeating,” she noted.
“I’ve used information from the previous ‘big box’ retailer seminar in April when dealing with clients, and I’m sure I’ll use what I’ve learned this time, too,” Halvorsen added.
“I thought it was very good for businesses in this area,” said Sandra Ross, who works at Home Suite Home here.
“The idea of teamwork is important. A lot of people have been on their own for a long time,” she noted.
“We complain about outshopping, and then we aren’t there to help each other,” Ross added, noting she would like to have seen more businesses from the downtown area at the seminar.
“I thought it was a really good seminar,” said Bev Brunetta, co-owner of Gagné Pharmacy with Nancy Evans.
“I like the ‘circle your wagons,’ team approach to facing up to Wal-Mart,” she noted, referring to Prevost’s emphasis on local small businesses networking and helping each other.
“And the idea of looking at yourself, who you are, and what your business specializes in was great,” added Brunetta.
Prevost was brutally honest, but at the same time supportive, with the business reps on hand.
“Whey they come to town, business is going to drop off for you. What do you do? Circle the wagons,” he remarked.
“How many people here have bought products from a person, despite the fact you knew you could get it cheaper elsewhere, because you had a good personal relationship with them?” he asked to a room that was subsequently full of raised hands.
“Wal-Mart is price-conscious; they’re in the commodity business. They get you in, they get you out,” added Prevost. “It’s a minimum contact situation, a win-lose situation.
“But if you get to know the customers, what they want, charge them a fair price for a great product, and even give back part of that money as members of the community, it’s a win-win situation.
“They do well, you do well, they do well again,” he remarked.
Prevost noted those who think they can try to cut their prices to keep customers will have to “get out of that discount world—you can’t compete!”
He stressed not all customers are simply looking for a bargain as they know, as the adage goes, “you get what you pay for.”
“When Wal-Mart comes, you’ll lose the nickel-and-dimers, but they’re not your clientele. Eighty percent of people want to save pennies, 20 percent appreciate service.
“If you can hold onto that 20 percent, you have your business right there,” he said.
Prevost also laid down four simple “connections” to always keep in mind: connections to yourself, your employees, your colleagues, and your customers.
“If you don’t like what you do, get out of the game,” he exclaimed when talking about the first connection, adding there’s absolutely no shame in self-promotion.
“If you think ‘big box’ is a challenge, wait until e-commerce,” he warned.
Prevost noted employers must treat their employees with dignity and respect, as “they’ll drag down your business faster than a speeding bullet if they’re not trying.”
And he added small businesses can’t afford not to work together these days. “Now is the time to build alliances—know each other, help each other,” he stressed.
For instance, an engaged couple goes into a jeweller to get rings. The jeweller asks them if they have arranged for their wedding flowers yet, and if not, suggests a local florist.
In turn, if a man who was getting his wife flowers for an anniversary realizes he might want to get her jewellery as well, the florist could suggest that jeweller.
As for the connection to customers, Prevost advised business people “have fun, be present, and ratchet up the enthusiasm.”
“It’s showtime, folks,” he remarked, before entertaining the crowd with a story of an Edmonton cab driver who offered his customers coffee, a choice of newspapers to read, a choice of music to listen, and more.
“He’s the most successful cab driver in Edmonton. He’s got four wheels and a piece of tin—what do you got?” challenged Prevost.
This was the second workshop for businesses dealing with surviving the “big box” environment. The first was held in April and drew about 130 people.
The seminar was sponsored by the Fort Frances Chamber of Commerce, RRFDC, Fort Frances Times, and B93-FM.
Fort Frances Times
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