On Customer Loyalty ... ?

[Dan Hintz]

my "plan" isn't to grow bigger, just more profitable.

With this in mind, I would say stay away from a value line of products altogether, then.

[Ross Moshinsky]

With this in mind, I would say stay away from a value line of products altogether, then.

Not the case necessary. You can make decent money on laminate plaques and plates cut on a sheer. In fact, I'd be curious why anyone wouldn't offer these kinds of plaques.

[Scott Shepherd]

Not the case necessary. You can make decent money on laminate plaques and plates cut on a sheer. In fact, I'd be curious why anyone wouldn't offer these kinds of plaques.

Because we don't need to. Too much higher paying work available. Those are some of my answers to why we don't want to play at that end of the market.

[Bill Stearns]

Hello again -
How confused I must be making those of you who are trying to help. Sorry. Writing what I have 'bout my situation, reading your responses, has helped me to realize just how muddled I am in my thinking. One minute I'm saying I need a great deal more business, the next I'm saying I'm not out to grow larger. (what an oxymoron, uh?) On the bright-side, I love my business; really enjoy it. I run around a 76% gross profit margin - leading me to think my pricing of items, and COG, is reasonable. (please tell me if I'm wrong?) Attempting to think more clearly, guess I feel I just need more traffic, and much more awareness of my business and capabilities. Thus, my always asking about your advertising and promotional experiences. Been told to forget about newspaper ads, flyers, mailers, etc. - which, frankly, threw me for a loop! (Other than thru word-of-mouth, how else do people learn about a business?) Thinking. Thinking. I do tend to think they forget I'm here. (My chief competitor has a much more visible free standing store on the main drag, has been around for years 'n years - very well known - first place people think of when needing engraving. Even after 8 years, think I am an "after thought". 65, still a kid-at-heart, I could stand to be 'lot busier than I am; just no longer out to build empires. Thus my considering expanding into "low cost" awards. But, like Dan said: Is this the best, most profitable, use of my time? More than likely not. With taxes mailed off, property taxes coming up, guess I'm just running 'little scared - what ever I come up with to improve business, should probably happen pretty soon! Thanks, as always, for all your caring. (Oh, and Dave, thanks for checking out my web site - can use any suggesting there I can get!)

Bill
Great Engravings

[Ross Moshinsky]

Because we don't need to. Too much higher paying work available. Those are some of my answers to why we don't want to play at that end of the market.

7-20x markup isn't good enough for you then, that's your call.

[Scott Shepherd]

7-20x markup isn't good enough for you then, that's your call.

I have no desire to be in the trophy side of the business. Good margins or not. I'll stick to what got me where I am today. If it's not broke, I'm not going to fix it.

[David Somers]

Bill,

No worries! One of the lovely things about a group of people like this is you can use us to help clarify your thoughts, not just seek technical answers. Working through thoughts can be a bit awkward in a forum, but if any group is going to give you the space to do it, and politely and patiently try to help it is this one. In fact. I truly can't think of a group that is as patient with this kind of thing as everyone has been here. (sorry....I am being schmaltzy. But you folks are really good to each other. The way you work with each other would be impressive in person, let alone on an internet forum)

Dave

[David Somers]

Bill,

Another thought. Have you considered sitting down with a business coach? They would be in a position to actually review your numbers, talk about your goals and feelings about where you currently stand,and perhaps help you put it in perspective and help you decide where to take it, if anywhere. I have a few friends with businesses that are in a kind of crux.....a position where they need to grow or contract in order for things to work. The coach hasn't actually given them an answer, but kind of like a counselor might help with personal decisions they have helped the person define what it is they want, and compare where they are with others so there is more of a grounding in reality about their situation. They were a knowledgable sounding board in other words. Might be worth it since you seem to really enjoy what you are doing, but are not feeling secure about it? Again, perhaps I am misreading what you are saying, but that seems to be the situation?

Dave

PS...I will try to take some time this weekend and go look more at your web site and see if I can offer any thoughts. If anyone else has thoughts and some time you might do the same thing.

[Bill Stearns]

Dave 'n Others -

Thanks so much for your kind and encouraging words. And, indeed, this is an incredible group of people. Believe you hit the nail-on-the-head. Writing to you all helps me to more clearly define how I am thinking and feeling 'bout my business and issues. (My friends' eyes glaze over, whenever I talk business.) Now thinking that my primary objective needs to be: greater awareness = more traffic = higher sales. My 76% gross profit margin would seem fine for a one person operation; nobody suggested it wasn't. Guess I feel that I am diversified in my product offerings - that my prices are reasonable - my quality and workmanship fine. So, now, feeling I simply need to do 'much better job of reaching those people and places where the money is! And of keeping my business name in front of current and past customers. In a past post, someone asked: "What do you offer that competitors do not?" Awful lot to chew on there.
BTW Dave - I have tried business counseling in the past. Our so-called business development center; found it a political can 'o worms! They made short-work of me as I was not interested in borrowing 'n investing thousands, growing large, hiring 'bunch of people, and joining the Chamber. (mentioned earlier one of my competitors "heads" the Chamber.) Also, found that while counselors may spout general business advice, if they don't understand your specific business/industry, well lets just say - I find this forum vastly more helpful. Will appreciate your feeling 'bout my web site - kind of a "here is what I have to offer" kind' a site. Thanks again. (will now shut-up and listen.)

Happy Easter All -
Bill

[Mike Null]

Bill

The secret to success in this or any other business is marketing. Hone your marketing skills and you will see your business grow.

I wouldn't get locked into a fixed gross margin when pricing your wares. I have a number of jobs which deliver a margin half what you're quoting but other than cutting an invoice and packaging them I do no work. I have a few other customers where I've developed a unique marketing approach tailored to their needs. I make a shorter mark on them but I make a few thousand pieces every year. Be flexible.

Since I am home based I've tried to focus on commercial rather than retail clients. I can now pretty much turn away retail business.

[Bill Stearns]

Mike,
Thanks, as always. That's what I am realizing more 'n more - my future "marketing" will be key! Why I've been asking you all 'bout advertising, promotions, loyalty, etc. BTW: the 76% GPM I mentioned is year-to-date, not a profit margin that I place on individual items. Also: neat to hear that yours is a "home business" - me too! An obstacle only in the sense that my chief competitors both have attractive, free-standing stores on main drags. (not so much a problem once customers discover where I am, and what I offer.) Hence the need for more customers learning about me. Marketing. Marketing! I do enjoy the "retail side" of my business - walk-ins, etc. - but, would like clarification on what you, and others, call "commercial" - as pertains to laser engraving. (most potential opportunities have called for metal-marking; where Cermark wouldn't be practical for the jobs.) Also, could you share with me what you meant by "developed a unique marketing approach tailored to your customers"? Maybe in pvt? Open to any and every idea you can offer. Really am scraping the barrel right now. Thanks 'gain! - Bill

[Gary Hair]

and joining the Chamber

It may be different in other communities, but I found the chamber to be of absolutely no value to me. I was VERY active, on the board and was the Chair for a year - still brought in almost no business.

found that while counselors may spout general business advice, if they don't understand your specific business/industry, well lets just say - I find this forum vastly more helpful.

Business is business, but the advice you get from someone who knows exactly what you are going through is much more valuable and can get you more focused than generic business advice.

Will appreciate your feeling 'bout my web site - kind of a "here is what I have to offer" kind' a site.

I looked it over a bit and, for my taste, it looks really nice. It's easy to navigate and shows good examples of what you do with good pictures. The only thing I didn't care for were the places where you have bolded-red text that state you don't engrave metal. I'm guessing you put it there so emphatically because you get lots of people asking about it? If so then it wouldn't hurt to leave it if it helps to reduce those calls. If not, I would get rid of the 2 or 3 places you have the red text and just state that you "mark stainless steel". It just seemed like you were yelling this and it was in pretty start contrast to the rest of your site. Just my .02

[Bill Stearns]

Gary -
I understand - thanks. I should know better than to publish "negatives". Will change this tomorrow. (or, at least, reword it somehow.) Reason it's there: awful lot of people come in looking to have jewelry engraved, which I don't do. Have been sending 'em to a gal down town who does this using a - what's it called? a panogram engraver? - the old etch by hand style. Also: being in Northern Minnesota I get so many guys looking to have rifles 'n guns engraved - I am just trying to save 'em a trip. BTW: Thanks for the comments 'bout my site! - I was indeed shooting for easy navigation. Earlier on the forum someone suggested 'few tricks which helped me gain in the search ratings - now, when you Google "engraving - Minnesota" my site is on the first, or second, page. Has helped 'lot. One question: (based on earlier forum discussions 'bout web sites) - did you feel I needed more text describing items? - a little written "sizzle"? Also: do you feel that an "about us" page might help - showing my products as they are nicely displayed in the main room of my house? (might help customers feel more comfortable coming in - know 'head of time what to expect?_

Thanks again - Bill

[Gary Hair]

what's it called? a panogram engraver?

Pantograph

I get so many guys looking to have rifles 'n guns engraved - I am just trying to save 'em a trip

Why not do the work? It really doesn't take much to get your FFL, I went through the process and mine literally arrived today!

did you feel I needed more text describing items?

I think that most people just want the basics. So many people are using phones and other small devices like that to search/browse and if you have too much it would be difficult to browse with those small screens. I would give just enough info to let them know what it is and compel them to call for more.

do you feel that an "about us" page might help - showing my products as they are nicely displayed in the main room of my house?

I wouldn't put it on your website but let them know before they come. There are some people, businesses mainly, that may not want to work with a home-based business. I run mine out of my house and have had no problems, but where I live it seems that every other house is running some type of business so they are very accepting of me doing the same. Nowhere on my site does it mention it though and that was by design. I do work for several large companies out of state that have no idea that I work out of my house and there is no reason for them to know - I get their work done and that's all that really matters.

[Frank barry]

I am with Gary on this if you have customers coming in looking for you to do engraving and your telling them you don't do it your sending out a very bad message you want to be seen as the engraving guy why not buy a cheap machine for now and do it ?or sub it out in that way they are still your customer Just my taught cheers Frank