The Myth of the Rational Buyer

How Too Much Thinking Can Hurt Your Brand

BY Mark Dziersk

Fast Company blog

A wonderful question is conventional marketing hurting sales. What if the best thing is to market emotionally to your customers. After all, what are you offering them?

http://www.fastcompany.com/blog/mark-dziersk/design-finds-you/myth-rational-buyer-how-too-much-thinking-can-hurt-your-brand

The truth is often simpler. People want what works, looks good, and give pleasure by doing what it is suppose to. How can product development be easier.

Celebrities Share Secrets of Success

Great article about a Fox News special on how to succeed. The ten rules are spot on for business and your life. Please read...

http://www.foxnews.com/story/0,2933,521421,00.html

Watch “Secrets of Success,” hosted by Uma Pemmaraju on Sunday at 2 p.m. and 2 a.m. EDT.

Search the title if the link does not work
Steve

Here is part of the article:
"Here is a list of some of the common threads they share: lessons they picked up on their own personal journeys towards what they describe as happy and fulfilled lives.

1. How You Think Is Everything. — Learn to visualize success and not failure. The phrase "You are what you think" is a powerful idea. Don’t listen to the voices that are pulling you down -- you can’t spend all your time trying to win over your critics. Run your own race.

2. It's Not About the Money — Material things are the results of success, but are not success itself. It’s great having a nice home, a six-figure salary or luxury vacations, but success isn’t measured by the dollars. It’s measured by how satisfied you feel.

3. Goals, Goal, Goals — Remember that goals must be meaningful and personal; otherwise, you won’t be inspired to achieve them.

4. Great Expectations — For something desirable to happen, you must want the event to happen, firmly believing it will occur and expecting it to take place.

5. To Fail Is to Succeed — Failure pushes you to levels you never dreamed of, and can open doors you never thought possible. See failure as a life lesson for what works and what doesn’t.

6. Dream Big — Never be afraid to follow the dreams of your heart. It’s the fuel for success. Your dreams give you the energy and inspiration to aim for an authentic life.

7. Take Responsibility — Stop expecting things to just happen without action. You need to take action to reach your goals, without blaming others for bumps or setbacks you may find along the way. Own the choices you make: Be a victor, not a victim.

8. Positive, Not Negative — If you are passionate about your dreams and goals, you’re likely to attract people who will want to support and help you. Call on them when you need encouragement or guidance.

9. Never Stop Learning — Read books, take classes, take the time to learn all you can about things that excite, motivate or inspire you. Never lose that sense of wonder or curiosity when it comes to seeking more knowledge.

10. Belief in a Higher Power — Regardless of your religion, develop a strong sense of faith in God and have a daily attitude of gratitude for what you have in this life. Believe that there is a divine purpose to your life and know that there is power in prayer."

Game Changer Pocket-Sized Robot Could Change Urban Warfare

Here is a perfect example of a game changer innovation. A successful supplier to the US military, iRobot, develops a better product that will revolutionize warfare. This is the type of innovation needed to stay on top of your business.

http://www.foxnews.com/story/0,2933,520851,00.html

If link does not work, search Foxnews for “Pocket-Sized Robot”

How can you change your market today?
Steve

Deregulation versus Regulation Failure

Really good commentary by NIALL FERGUSON on blaming the right source.

"All of these were sins of commission, not omission, by Washington, and some at least were not unrelated to the very considerable political contributions and lobbying expenditures of the financial sector. Taxpayers, therefore, should beware."
Enjoy!
http://www.nytimes.com/2009/05/17/magazine/17wwln-lede-t.html

Really enjoy reading about economics, the market and will include links in the future.
Steve

Manufacturers have not yet truly embraced what LEAN Six Sigma tells us

Good article at Industry Week. Lean Manufacturing produce to order which is a huge advantage in agility and responding to customers. The US has not fully embraced an advantage we have over suppliers across an ocean. Read "Viewpoint - Industry's New Look" below:

http://www.industryweek.com/articles/viewpoint_--_industrys_new_look_18708.aspx?ShowAll=1

There are also good webinars available on http://www.industryweek.com/
Steve

Businesses Need to Plan for the Recovery

It is about the opportunities, not the problems. We are in a good sized recession, and the uncertainty is making life difficult for business owners and managers. Orders are down as customers order smaller quantities, or no longer have demand for some products. Credit is in short supply, and cash is king.

Even worse is the drumbeat of bad news shouted from the TV, and on front pages of magazines and newspapers. They are trying to scare you to look or listen for better ratings. Hello, this is about the size of the 1982 or 1975 recession. Not the Great Depression 2 or even the end of the world.

Today is not about the fear. Business is about the relationships, especially with the customers. Business is about being better than the competition. Business is about finding our niches, and serving the customer. Business is about making a profit through service.

So what can you do differently to improve profits?

Can you offer 2 for 1? Make twice as much and lower your prices? Develop a low cost version? Add more products to sell to your customers? Redesign dated products? Bundle more services together?

What about when the recession ends? What products or services would you like to develop now to be ready for the next couple years? Who do you need or want on your team? What skills do you need to train your staff to have? Don’t you think this is the best time to prepare?

We have to be careful, but business will go on during and after the recession. Will you be ready?
Steve

Scroll down to Anticipating the Credit Crunch for more ideas to increase profits.

About the Market
Personally I am not ready to declare the bottom of the market, and it may be further off than we would like. However there are reasons to think we are closer to the end than at the beginning. Housing has already corrected about 40% from the peak of the bubble. The Dow has dropped from the $14,000’s to the low $7,000’s. For other hints see Irwin Keller’s article below.


Signs of life
Commentary: The economy's worst may be past
By Irwin Kellner, MarketWatch
Feb. 24, 2009

http://www.marketwatch.com/news/story/evidence-mounts-recessions-worst-past/story.aspx?guid=%7B71467556%2D3683%2D4018%2D906C%2D7FFC8A3F9E8C%7D&dist=TNMostRead

Note Marketwatch Links are soon broken. If the link does not work, go to
http://www.marketwatch.com/
Search for Irwin Kellner

Some businesses think big during the downturn

A great article about the companies that will succeed during and after the recession.

http://www.latimes.com/news/la-fi-expand13-2009jan13,0,4036581.story?track=ntothtml

We all need to think like this,
Steve Amos

Happy 2009!

Everyone is finally over 2008, but the economy is still a concern for most of us. Lets face it, few investors made money last year, and most of us took a substantial loss. At least my 401K has been crunched :( Thank God I am 50% cash right now, and the rest is losing money in stocks. However I focus on long term investments and good companies, so I will survive and recover.

However my predictions for 2009 are not as pessimistic as most of what you read in the media. Most of the worst effects of the recession already occurred in 2008. No one knows what will really happen, but I will make a few economic predictions like I did last year with oil prices. Warning your mileage may vary as I am limited in experience and make lots of mistakes. But it is good to present views for you to think about and analyze.

Recession: We are still going forward with the recession, and businesses are hanging on to money carefully since borrowing is so difficult. I do not expect the recession to grow into a worldwide depression. The news reports comparing us to a depression are vastly exaggerated. Most people have not experienced a serious recession since the early 1980's. We have lived through recessions before, and will survive.

Jobs: If you personally have a good job you may not feel the recession. People who are job hunting or looking for a better position will have to take more time to find a great job, and may have to take a step backward right now. It is just a delay for the good times to come. My prediction is job loses will peak early in 2009, and by the end of the year jobs will start recovering. So if you are job hunting keep persisting.

Stock Market: I suspect we are getting closer to the market bottom. I suspect we are within six months of the bottom. It may take a year, but I am looking for evidence it is time to fully invest again.

Housing: I see no bottom to the real estate market until around 2010. The over supply of home will have to be worked off the market. I expect prices to fall another 5% - 15% in 2009.

Oil prices: This was my best prediction of 2008. On January 17, 2008 I predicted oil prices would peak and fall during 2008. I thought the bubble prices were way out of line at $105 per barrel, and thought oil would fall into the $60 - $80 per barrel by the end of the year and to $40 - $60 per barrel early in 2009. My prediction was based on the long term cost of alternatives to oil were in the $40 to $60 per barrel range. In spite of the gyrations of politics, wars and speculation, I expect prices to stay in the $40 to $60 per barrel range. We might see another over correction with prices falling into the $30's per barrel with the slow economy. There is an oversupply which will be corrected over the long term.

The best advice summary: The best thing you could do is maintain a very positive attitude. This one action will help no matter the crisis's you face, and will help you reach your goals. Heck you may even succeed with your resolutions. Spend some time every morning meditating on what is good in your life, and thank God for everything. Even the challenges and problems you face.

Have a great 2009! I will no matter what.
Steve

Anticipating the Credit Crunch

Business has to adapt to the changing conditions and change your plans. Business conditions right now are transitioning into a more severe recession than expected. The shutdown and forced sales of US financial companies and banks. This is the reason for the bailout which really should be called a credit stabilization bill.

Inflation was the story at the beginning of 2008. Currently inflation is being reduced by the improving value of the US Dollar. It is not how much the US economy has improved, but the global economy has gotten worse faster than expected in Europe and Asia. Only the oil producer’s economies are doing well. The rest of the world is slowing down quicker than the US economy is.

Helping with inflation is the bursting of the bubble in commodity prices. Oil rose to a high of $145 per barrel, and now has returned to around $95 per barrel. This happened in only a few months. Oil price will be volatile depending on political and weather related interruptions, but is gradually dropping towards the $60 – 80 range in 2009. Demand for all commodities except food has dropped.

The real problem now is the credit crunch. Banks are trying to raise capital to survive, and are not giving loans they gave last year. Credit card companies are tightening their limits because of losses. This not only affects consumers, but lots of small companies use credit cards instead of a line of credit. Lines of credit are harder to get for larger businesses. Taking a second mortgage on your house is more difficult due to lower values and tightened lender requirement. These all will accelerate the credit crunch.

Keep your perspective. No recession lasts forever. There are a few steps to take right now to prepare.

Hang on to all your cash
1. Sell down inventory as low as you can. Sell excess and obsolete products by reducing prices.
2. Cancel all unnecessary expenses, subscriptions, software, and leases.
3. Sell and scrap unnecessary equipment.
4. Lease out or sell unused space. A sublet tenant can improve profits.
5. Pay credit on time and make sure your bank knows you are profitable. You need a good relationship for future credit needs.

Review your products and prices
1. Do you know which products create profit for you? What do they actually cost without overhead?
2. Increase prices or discontinue unprofitable products. Do you need all the finishes or colors? Increase prices on money losers to reduce demand, or…
3. Replace dated and noncompetitive products with new designs to improve margins. Design simpler products or combine two products to reduce cost and improve margins.

Improve your business

This is a major opportunity to improve. Focus your business on a mission. We need to serve our customers better and better. Measure your most important attributes for customer satisfaction and make sure you improve.

1. Advertise more. Stay in contact with existing customers more. Find new customers.
2. Expand by adding more products to sell existing customers. Partner with other suppliers to your customers.
3. Keep your key people and performers. It is too expensive to replace your best talent.
4. Hire better talent. Lose your weakest performers who slow down or move them to positions where they have ability. This is the best time to find the people you need to grow and be ready for the recovery.
5. Plan to grow more profitable over five years. Find new products, services, or profitable niches. Others are cutting costs only. The great companies grow more competitive.

Recessions are opportunities. Take full advantage of them for your benefit.

A Geeky Remedy For Recession Blues

Forbes has a wonderful article by Christian Lindholm about the power of design in results, and what sells in a recession. Highly recommend reading it

http://www.forbes.com/technology/2008/09/16/iphone-nokia-design-techsolutions08-enter-cx_cl_0917design.html?partner=technology_newsletter

It has been too long since I have written, so expect some new postings soon. Basically would like to comment on the economy.

Enjoy,
Steve