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Why Brand integrity Matters and How to Get It

Michael Houlihan & Bonnie Harvey — Fri, 21 Feb 2020 00:09:39 +0000

There’s so much noise out there, you don’t have the luxury to try to be all things to all people. You must focus on the core value you offer to your customer.

We are successful consumer brand developers, but we made a ton of mistakes before we finally achieved our success.

In our impatience to achieve a positive cash flow as soon as possible, we diluted our brand message several times. We were desperately trying to find the perfect product-market fit that would please our buyers.

To read the complete article, please visit The Business Journals

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Casting About or Fishing Where the Fish Are

Michael Houlihan & Bonnie Harvey — Thu, 03 Jan 2019 18:00:51 +0000

One of the biggest challenges that entrepreneurs face is not coming up with a good idea as much as it is deciding on which one of their good ideas they want to focus on. You don’t want to put all your eggs in one basket, but you don’t want to be so distracted that you can’t put the proper amount of energy into the one idea that will bring you the greatest return.

This dilemma is especially perplexing as we begin the new year. We’re determined to make a change. We’re determined to stop beating on dead horses. And we’re determined to seek out and recognize alternatives. There’s been books written about how entrepreneurs on the edge of success have been distracted by the shiny ball. If only they had worked a little harder a little more focused… But no, they were distracted.

Somewhere between the dead horse and the shiny ball is the answer. Is that horse really dead after all? Or maybe there is something in that shiny ball that will save him.

Most entrepreneurs have just completed a year working hard on their main project while, at the same time, entertaining new opportunities. As we start the new year we should take a lesson from the ancient Japanese craft culture. At the end of every year they clean their shop. They do this to show respect for their workplace and it is their opportunity to sort things out mentally and physically.

Take Inventory

By looking at their inventory, they discover what sold and what didn’t sell. Although this simple exercise seems obvious, most entrepreneurs just plow ahead without really taking the time to acknowledge and validate what worked! What’s left in inventory are the un-sold products and slow moving items. Now they’re taking up room in your physical and mental workspace. It’s time to reflect on how much energy you put, and continue to put, into your slow movers. You’ll need that space and mind share in the new year!

Clean House

Pick up everything you’ve made and decide if you want to keep it, change it, or just plain get rid of it. When you look at each initiative you have pursued in the past year, the ones that didn’t work don’t have to be a total loss. What did you learn from each experience? How can those lessons help you when applied to your main pursuit?

One approach is to reorganize. Take your failed and nonproducing initiatives and incorporate them into the one or ones that worked. Have you acquired new skills, new contacts, or new referrals that will help you in the new year? Identify them and make a list to acknowledge them, so you will have gotten the most out of those “shiny balls.”

Refocus

Use the experiences of the past year to help you focus on your true customer. They may not be the people you have been pursuing. Like a fisherman casting about hoping for a bite, now it’s time to pull in the lines, check your bait, and move the boat in the direction you experienced the most action.

There is a market for what you have sold in the past year. It’s time to move closer by better addressing that market. How did the customers who bought products from you last year find out about your offerings? How can you improve those channels? Identify and endeavor to utilize any new communication skills you have learned over the past year.

Has the market for your main pursuit changed? How can you modify your product and your presentation to become more relevant and compelling? Time to talk to your customers.

We know that years are just arbitrary measures of time. But they also represent a period of work that we can learn from if we take the time to take inventory, clean house, and refocus. So while everybody is feeling compelled to blastoff in new directions, maybe we can emulate those Japanese craftsmen with reflection, analysis, and redirection.

Here’s to a New Year made better by the last!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Acknowledgement, Confirmation, and Status Reporting Demonstrate Responsibility

Michael Houlihan & Bonnie Harvey — Thu, 07 Jun 2018 17:00:16 +0000

A Classic Case of a Lack of Acknowledgement & Confirmation

Our friend recently graduated with an advanced degree in Nursing. To celebrate, we invited her and her friends over for a party. A week before the party, we went to our friendly neighborhood grocery store where a young man does barbecuing out in front on the weekends. We thought, “Why not keep the money in the neighborhood and support a local merchant?”

So, we went to the barbecue guy and asked him if he was going to be barbecuing the following weekend. He said he would start at 11 AM on the day of our event. So, we ordered several chickens and several sides of ribs, enough for everyone. It was a sizable order. We told him we would pick the order up at 2 o’clock on the day of the event. He agreed and took our name and number.

On the day of the event, we showed up at noon to add to the order as the RSVPs had increased. But to our surprise, no barbecue guy! We went inside and asked the store manager what was up. The store manager said the barbecue guy wasn’t going to be there that day and there would be no barbecue!

Yikes! Now we were panicked! We had all these folks coming over and no barbecue. We quickly got on the phone and found another barbecue guy who was barbecuing in the next town. Luckily, they could fill the order by 2 o’clock. We had to drive a one-hour round-trip to pick up the barbecue. Problem solved.

Then at 3 o’clock, we get a phone call from our original barbecue guy. He wants to know when we’re going to pick up the order. We told him that the store where he worked said he wouldn’t be there that day and so we had to go elsewhere for the barbecue. We felt sorry for the guy but felt we had no choice under the circumstances taking the action we took.

A Growing Problem

We see this is a problem on the increase everywhere. Many folks don’t think to advise those who are depending upon them about the status of their requests. The local barbecue guy expected his customer to blindly trust that he would perform even though he knew that announcements had been made indicating that he could not. He did not feel obligated to call to reassure us. Perhaps he will next time!

To put this problem another way, some may think avoiding acknowledgement, confirmation and proactive status reports is a type of protection. They may think their silence insulates them from criticism. That way, if they perform, great. If they don’t perform, it’s up to the person who’s made the request to get back and ask where they are. That way they don’t really own the job.

The problem with this line of thinking is that most people who have been disappointed in the past assume their request will be dropped if they don’t get acknowledgement, confirmation, and timely updates. They have to! They have taken responsibility for the action whether or not the person they asked performs. That’s because they do own the job! And they will take alternative actions to meet the deadlines.

We’ve seen this minimalist approach in other forms like, not acknowledging a request, dropping an assignment until it’s re-requested, getting the requested information but not reporting it. These are all forms of not owning the job.

Removing Anxiety thru Acknowledgement & Confirmation

The key to being dependable is not give anyone who depends on you apprehension. They shouldn’t have to ask themselves: “Are they going to do it? Are they going to do it on time? Can I rely on them? Are they going to drop it? Do I have to go around them? Why haven’t I heard from them? And why do I have to check up on them anyway?” Remove all these types of anxiety with acknowledgement, confirmation, and status updates. When it comes to a job that others depend on you for, just own it!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Are You Ready to Be Your Own CEO? – 7 Steps You’ve Got to Take

Michael Houlihan & Bonnie Harvey — Thu, 15 Feb 2018 18:00:15 +0000

With the accelerating rate of disruption out there these days, it makes you wonder if all of us will be self-employed one day. Access to technology is already empowering many of us to “hang up the shingle” and go into business for ourselves. With the explosion of new service providers, you can outsource almost every business function, and you can quickly become your own CEO.

Even though your new company may be spartan with just a few employees if any, you will still be responsible to your customers to get the job done and on time, no matter how much is outsourced. The majority of your team may work for other companies and probably will.

But how will you orchestrate all these in-house and outsourced people? How will you hold these folks accountable? How will you know when to hire and how to compensate? What form will your planning take? What will your contracts look like? How about your communications? What about cashflow, personnel, and distribution management? What about decision making? And what about leadership?

Is there an easy way to learn and apply the best practices successful CEO’s have been following for decades? And what about the most recent breakthroughs that can help you succeed? How would you like a neat little playbook that outlines and summarizes 70 of the best classic and modern CEO tools, all proven to be successful?

Our friend and associate Jim Canfield has just published such a CEO “user’s manual.” We think it should be on the desk of every CEO and every self-employed entrepreneur. It’s called CEO Tools 2.O: A System to Think, Manage, and Lead Like a CEO. Jim’s new book updates and pays homage to the famous original work, CEO Tools: The Nuts-n-Bolts of Business for Every Manager’s Success by Kraig Kramers published back in 2002.

CEO Tools 2.0 is a must have for any CEO, president, business owner, or senior executive who wants to execute easier and have more time – while increasing growth and profits. Sound like you?

Jim has a patent ability to distill complex ideas, policies and procedures into easy to understand principles and processes. Then he backs them up with tons of examples to help you get the message. His book is organized according to the seven steps of “The CEO Tools Business System”:

Set the Direction. Clarify your overall goals, vision, and action plans with a One-Page Business Plan and use it to better communicate your goals to everyone you depend upon.
Communicate to Build Trust. Ask everyone you depend on how to solve the challenges you face. They will surprise you with their solutions.
Track Metrics and Give Feedback. Identify and track key performance indicators with the Quarterly Priorities Manager (QPM) and the Trailing 12-Month Chart (T12M).
Anticipate the Future and Create It. Ensure your company’s future with tools like What’s Next and the 7 Key plans every business should have in place.
Attract, Hire, and Coach Winners. Put winners in the top 5 customer impacting jobs and make sure they agree on what constitutes excellent performance. Then empower them.
Build an Autonomous Company. Be free of day-to-day involvement with leaders who focus on long-term strategic issues and confidently keep daily issues on track.
Celebrate Successes. Spread recognition and appreciation throughout the company with programs for all team members designed to appreciate the contributions of other team members

CEO Tools 2.0 builds out each step with tools you can use and real case studies showing where and how they have been used effectively. Whether you have a big staff or work with an outsourced team, it’s teamwork that will increase your growth and profits, ease your execution, and save you time. CEO Tools 2.0 is the playbook for winning teams!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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The 7 Tenets of The Barefoot Startup

Michael Houlihan & Bonnie Harvey — Thu, 31 Aug 2017 17:00:24 +0000

According to Forbes, 90% of all new businesses fail. Why is the rate so high with so many great ideas? Is something missing? Something basic? According to the Small Business Administration, businesses that survive over 5 years tend to survive over 10 years. Do they finally learn something that saved them? What if they knew those things right from the beginning?

We are often accused of being Monday morning quarterbacks with 20-20 vision. Well, guilty as charged! And lucky for you! Having been through it from ideation to monetization, we are in a unique position to offer help. After years of wrong assumptions, and actions based on those wrong assumptions, it ultimately became clear to us what we were doing right and what we were doing wrong. Our experience and success in the real world can save you a ton of time, money, and anxiety.

Like the man says, “If you had it to do all over again, what would you do differently?” Well, some things we would do just the same, but others, we would have started doing a whole lot sooner. Starting with no money and no knowledge of our industry, you can bet we had a lot to learn. You can bet we made plenty of mistakes.

These are the same challenges startups face today, like being undercapitalized, finding and keeping the right people, providing effective leadership, and getting the word out, just to name a few. But the biggest mistakes startups make may be in their own heads! They tend to accept popular assumptions about business that are just, well, wrong! We want to change all that.

There’s a new movement afoot. We call it “The Barefoot Startup.” Why “Barefoot”? Because it’s a great analogy for a feet-on-the-ground, step-by-step approach to starting and growing your business. It’s beyond “bootstrap” because it’s sensitive to the terrain, its well-grounded in principle, and clears the path for success.

The Barefoot Startup incorporates the proven strategies we used successfully and the lessons we learned over 20 years building the Barefoot Wine brand. These key tenets made the biggest difference in our success. They can work well for any business. The tenets of The Barefoot Startup (#BarefootStartup) will give you a big head start, mitigate your risk, and reduce your need for capital.

It’s not another set of tactics. It’s not another cut-and-paste process for 6 figures in 6 months. But it is a fundamental understand, and application, of the basic principles of long-term business success. Think of it as an insurance policy for your start-up.

The 7 tenets of The Barefoot Startup spell S-U-C-C-E-S-S:

Strategic Alliances. Who wins if you win? How can you help them win? How can you work with your community to get the word out?
Understandings. How does your distribution system work? What are the challenges you face gaining acceptance in your market?
Customer. Who are your customers? What does each of them really want? How should your company be structured to gain their loyalty? How do you turn your customers into advocates?
Compassion. What does everyone who touches your product want? How can you show empathy for their needs? How do you gain their respect and cooperation?
Empowerment. How can you get the most out of your people, your suppliers, and your buyers? What do they need from you to do their job better for you?
Sales. What is the fastest way to create a positive cash flow? Where is your low-hanging fruit? What is the quickest way to gain a “Hot Mover” reputation?
Slow Down! How can you reduce your need for capital by being more resourceful? How can starting small show you the true cost of sales? How can you get your act together before you take your show on the road?

The Barefoot Startup offers detailed answers with real world examples. How do you spell success? Join the movement at www.thebarefootstartup.com!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Small Business Creates the Most Jobs and Does Most of the Training

Michael Houlihan & Bonnie Harvey — Thu, 11 May 2017 17:00:22 +0000

Last week was National Small Business Week. Every year at this time the North Florida Small Business Development Center at the University of North Florida celebrates with an awards luncheon singling out small business owners in their region who are outstanding. This year was their 25^th anniversary and we were honored to be their keynote speakers.

Earlier in the day, they asked us to present a workshop to their VIP members and supporters. These folks were already successful, so we had to give them something special that would help them, hopefully, in a unique way.

We shared one of our favorite business principles, which is “Make Mistakes W-R-I-T-E,” (not just right)! We had plenty of experience in making mistakes; so much in fact that we got good at it. We actually developed a process for making mistakes that greatly improved our company and caused our acquirer to remark, “Wow! This is the best documented company we’ve ever seen!”

It all starts with giving your people permission to make mistakes. They are going to make mistakes whether you give them permission or not, but without permission, they are going to deny the mistake, cover it up, or blame others. They prefer to think it never happened, and go off to the next thing.

You can’t blame them. They’ve been programmed since grade school not to make mistakes. After all, a mistake would get you marked down, give you a lower grade, and could go on your record.

Yet, by giving your people permission to make mistakes w-r-i-t-e, you encourage the improvement of your documents and your very way of doing business. How? By asking your people to identify all the documents that need to be changed, clarified, or created to make the mistake less likely to happen again. Something written must be created, changed or improved. It may involve policies, procedures, checklists, sign off sheets, or even clauses in contracts.

The next step is circulating the new document to get everyone’s sign off of understanding. Then, and this is an important part, thanking the person publicly for improving your business!

Now, everyone knows that you celebrate mistakes – when they are used to refine your business process and ultimately help with training, communication, and profitability.

Sure, you have to apologize and make any one hurt by the mistake whole again. But when you show a customer or a vendor that you are changing written materials to prevent a reoccurrence, they are more likely to not only forgive you, but give you more credibility. They saw you in action. Remember, people judge you by how well you handle a mistake. So, why not do it really well?

And what about those outside vendors, that salesperson, or that difficult customer? Surely, many of the mistakes are their fault, right? We say, “Aim, don’t blame!” When you blame the other guy, you disempower yourself. Rather, take action and clean up you own backyard. What can you do to make the mistake less likely to happen again?

We once had an executive who commented on our unrelenting campaign to tweak, write, and rewrite our documents in the face of any mistake. He complained, “You guys are trying to make everything idiot proof!” We responded, “No, we are trying to make it idiot resistant!” to which he responded, “But even now, as we speak, they’re building a better idiot!”

So, the best way to stay ahead of the “improved idiots” out there is to make mistakes write, and build your business on the back of your mistakes – like we did!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Terms That Can Hurt Your Business and Undo Your Good Will

Michael Houlihan & Bonnie Harvey — Thu, 13 Oct 2016 17:00:03 +0000

You won’t get too much argument against the proposition that an excellent customer experience results in return customers, loyalty, and even advocacy. But few owners are aware that the terms their own people use can sour their hard earned customers on an otherwise great experience. These terms may pop up in those critical interfaces where either the service you provide is being delivered, or where the customer has a complaint.

In the past decade, these terms have slipped in under the radar and become part of the customer service lexicon. Most owners are unaware that they are even being used, or worse, that they have a negative effect. But the use of these terms can exacerbate an already prickly situation. Your customers will notice and may be offended.

The term that especially rubs customers the wrong way is “I want you to do this for me.” It implies that the person doing the asking, your employee, wants to make their job easier and that the customer is the problem. It’s like saying, “If only you would just do what I need you to do, then my job would go easier.” It also conveys the idea, “The ease of my job is more important than what you want or need.” This selfish and arrogant expression is unfortunately becoming common place in situations especially where the customer is trapped, like technical support, customer service, and the medical profession. In these situations, the customer must deal with your employee when, all the while, they are treated like they are expendable, and they are the problem.

Doesn’t “And now, what I want you to do for me is…” sound like you are ordering the customer/client/patient around when you should be grateful they gave you their business and their time?

After a string of “Now-what-I-want-you-to-do-for-me’s”, all your customer hears is “I want – for me”! Do they think you put them first? No! Does it put them on the defensive? Yes! Are they more likely or less likely to recommend you? Less likely! Then why allow this term to be used by your people in the first place? This is something you can quickly stop that will improve your business immediately. You need not let all the work your production, marketing and salespeople put into making your customers feel important be spoiled by a selfish and off-putting term that you can stop.

Why not change the vocabulary of your service people by starting with their mentality? Perhaps they think they will get paid and have a good job even if they use selfish and demanding language. If so, start by asking them if they know where their paychecks come from. The customer is the correct answer. Explain the value of a return customer, a customer advocate, and yes, even a complaining customer, to their job security. Offer alternatives like, “How can I help you?”, and “Let me help you,” or “Would you please,” and of course, “Thank you!” Discover with your employees how many ways they can get a customer’s cooperation in the solution they are looking for that send a kind, soothing, respectful, and appreciative message.

When your customer calls on your company for service, that’s your opportunity to shine! This is a touchy moment where your reputation can go either way. You are judged more by how you do when things are challenging than when everything is smooth sailing. So take advantage of this great opportunity to demonstrate with your choice of words how much you appreciate your customers!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Be an Entrepreneurial Job Applicant – A Message to Grads

Michael Houlihan & Bonnie Harvey — Thu, 15 Sep 2016 17:00:33 +0000

If you are a recent college grad, you may be hitting the employment market about now. You may think you are searching for a job, but maybe you should be searching for a “customer.”

“I need to pay my bills,” you say, or “I need some security,” but by changing the paradigm slightly to “I need to find a customer, or client, for my services,” you can stay in control of your career and approach the job search more effectively.

If you think of yourself as a self-employed entrepreneur you will focus more on what you do best, what your skill sets are, where your experience is, and how you can alleviate your client’s concerns. You will have to bone up on the “prospect” and distinguish yourself from the competition to land the deal.

In addition to seeing your employer as a customer for your services, you also have to consider your own reputation. All your “customers” have to benefit from, and advocate for, your services in order for you to improve your personal brand image and justify higher fees in your future. So be careful not to take on a “client” whom you cannot really help, or who cannot give you the extended experience and responsibility you need to build your reputation.

By putting yourself in your customer’s shoes you can better understand what they are really looking for in terms of (your) features and benefits. Your features and benefits should address your employer’s major concerns when hiring any new person:

False Starts. The cost of turnover is the #1 hidden cost of any business. But after a while every business becomes painfully aware of the cost of searching, vetting, and interviewing. What if it doesn’t work out? Start all over again! Have some empathy for their investment in the search itself. Selling yourself to them before there’s an opening can give you a big advantage when the time comes to hire.

Orienting and Training. If it doesn’t work out, they lose the cost of reduced production by both the trainer and the trainee. You can reduce their anxiety by becoming thoroughly familiar with how they make their money, what their biggest challenges are, and how your potential job fits into the big picture. Learn as much as you can about the company and the job before you apply. The faster they think you can get up to speed and contribute, the more likely they will be to hire you.

Production. They are naturally concerned with your ability to produce. You are pretty much an unknown for which they will take a big risk. Demonstrate your past experience at successfully overcoming steep learning curves. Get testimonials from previous employers or professors that address this specific issue.

Longevity. They worry that after they invest in training you, you will quit! If you can demonstrate that you have stayed at your previous jobs for at least two years, even if it was internships, you will relieve some of their fear.

Dependability and Responsibility. They want to believe that they can depend on you to show up, produce, meet deadlines, and take responsibility for your own actions. Show them that in the past when mistakes were made you have improved processes to prevent their reoccurrence. They want a process improver, not someone who passes on the blame.

These should be among the features you offer that will benefit your employer by reducing costs and anxiety while improving production. Take another look at the “services” you offer as if you were an entrepreneur selling them. You will be much better prepared to get the “customer” you want!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Organizations That Say They Want an Entrepreneurial Culture Need to Walk the Talk

Michael Houlihan & Bonnie Harvey — Thu, 11 Aug 2016 17:00:16 +0000

Every day we hear companies, organizations, and institutions say they “want to hire people with entrepreneurial DNA.” They all say they “want an entrepreneurial culture where their employees are engaged and empowered.” But do they really? You can hire the best. You can vet for self-starting, creative, resourceful people with a sense of urgency, who take responsibility for their own actions. And you can even hire entrepreneurship grads. But without the proper environment in your own company you will stifle the new hires, and lose others who are frustrated.

We saw a cartoon recently that best summed up the paradox. The tired, haggard, office employee was down at the bar after work, sipping on his martini. He turns to the woman next to him and says, “Sure, they want me to be creative, imaginative, and resourceful, but I have a career to think about!”

Long before Barefoot Wines, Michael worked for the Federal Government. Right out of college, he was keen on being productive, making a mark, and moving ahead. But he ran into office politics, turf battles, and empire building within the organization. Few folks seemed to care about more than their job security. Most had become isolated and insulated from the real job at hand. Upon realizing that this could become his future too, Michael decided to not just quit his job, but quit the idea of having a job in any siloed organization.

The good news is that if it wasn’t for that experience, there would be no Barefoot Wine today!

The biggest problem with any kind of vertical or pyramid structure is that the structure itself is contrary to the entrepreneurial culture. Why? Because as the organization grows, sales and personal responsibility for the customer experience become more removed from the process. Soon, under the guise of efficiencies of scale and divisions of labor, folks get comfortable strictly focusing on their own specialties. They figure they‘re going to get paid, no matter what. Sales is someone else’s responsibility, they think. At the governmental level, it can be even worse. They can feel like their organization exists without customers, sales, or accountability.

Sales is the key to the entrepreneurial culture. Three entrepreneurs in a garage have no question that they must make sales happen or they won’t be there tomorrow. No matter what their skill set, all know that sales are critical. So what happened as they grew? Simply, many new divisions were created and they separated themselves from sales! So it’s not so much how to build an entrepreneurial culture as it is how you lose it! Little by little, the principles that allow an entrepreneurial culture to survive and flourish are replaced by fear, compliance, and restrictions on communication. Compensation systems increasingly are based on attendance, status, and tenure, rather than sales, growth, and productivity.

In order to attract and retain a staff with entrepreneurial DNA, you must provide the fertile ground that is essential for them to thrive and be effective. Just like an early stage startup, you must provide a culture of permission, enthusiasm, inclusiveness, recognition, acknowledgment, and performance-based compensation. The customer experience must be more important than the structural or political limitations of the organization.

You must get back in touch with the organization’s goals and means of support (i.e. sales). That must be the entrepreneurial motive that overrides corporate divisions of labor, status, and tenure. Serve your customer with an engaged and empowered culture that wants to, and is allowed to, deliver the excellent customer experience you desire. Your people are engaged when they know they can make a difference, and are encouraged, appreciated and compensated to do so!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Label Damage Screams “Damaged Goods” to Your Customer

Michael Houlihan & Bonnie Harvey — Thu, 09 Jun 2016 17:00:37 +0000

In the packaged consumer goods industry, the condition of your label telegraphs the condition of your goods. Even though it has nothing to do with what’s inside your package, your consumer will avoid purchasing any product with a damaged label or package. And it makes sense, because she can only see the damaged package and is unable to determine the quality of the product until she opens it.

Space is at a premium in retail stores. You are lucky to get shelf space at all, let alone more than one space or “facing.” Brands can get pushed around by the competition, mispriced by the store, not reordered even though they are selling well, and stay in the back room and never make it to the shelf. So just “making it to the shelf” is an achievement.

You work your way up from the bottom shelf, where folks generally don’t look, to the eyelevel shelf. Eyelevel is the most coveted real-estate in the store because it’s where the customer naturally looks. We used to say, “If you’re not in their face, you’re not in the place!” But now that you made it, anything that is wrong with your label or packaging works against you.

For one thing, you can’t be in every store to inspect every one of your products, although you should try! Even though you have great quality control in your production facility, once it leaves the condition of your label is in the hands of folks who can scratch it, scuff it, and stain it between the back room and the shelf.

That label damage can impact sales in many ways:

First Impressions. A scuffed or otherwise compromised label or package can turn off a potential first time customer. “The product is still good; it’s just the label that got a little scuffed.” You want to say that, but you can’t! So customers buy another product with a pristine label.
Sales Blocking. If you have only one space on the shelf, you are at the mercy of the condition of the label that’s in front of your narrow line of products. If that label isn’t perfect, she won’t pull that one out and grab the one behind it. She will buy another brand. The sales of all your other products lined up single file behind the one in front with the scuffed label are stopped.
Spoils Pick Ups. The retailer will eventually notice that your sales have stopped and want to discontinue your product. But you will send a representative to that store to see why sales have stopped. You will have to pick up what the retailer considers spoils, or damaged goods if you want to continue in his store.
Lost Customers. You can even lose previously loyal customers due to a scuffed label. They may feel the quality is going down and try another brand in your category, like it, and leave you. All because of a damaged package.
Deliberate Damage. We sometimes discovered deliberate damage from competitors who knew the effects of an imperfect label. This is yet another reason for constant vigilance at the store level.

Here’s a tip we found very useful: If the label got scuffed, it was usually on the edges. So we avoided the appearance of most label scuffing with labels that were white on the edges, the same color as the paper underneath the printed image. Thus, many of the scuffs were not visible because we allowed a lot of white space around the edges.

But there’s no replacement for actually being there at the shelf once a week!

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