Work | The Barefoot Spirit

7 Lessons Taught in College but not in the Curriculum

Michael Houlihan & Bonnie Harvey — Sat, 08 Sep 2012 18:07:50 +0000

If you are thinking about running your own business, stay in school. Many of the skills learned surviving the college experience can be just as important as what they teach you in the classroom.

Just to get through 4 years of college requires disciplines and mindsets that are essential to self-employment and building your business. Yes, college is expensive and there’s no promise of a job. But just going through the process is an education you can’t get anywhere else. It forces you to learn how to learn on many levels.

Here is a list of what you learn outside the posted curriculum, and why it is critical to your entrepreneurial future:

1. Taking Notes. It’s virtually impossible to remember everything that is said in class. You must take good notes. You listen for, not just “to” what is being said. You have to organize your notes to clearly understand the lesson. These habits of writing it down, organizing, and making conclusions based on evidence are at the heart of any successful business.

2. Research. College projects inadvertently teach you the research skills you will need to create a well-documented business plan. Your writing skills will also improve, because you have to clearly communicate what you have discovered, organize the premises, and build on the conclusions. You learn the vast array of resources available to you. This is encouraging to overcoming any business challenge.

3. Accountability. Exams are the bane of any college education. They require great notes, good comprehension, and excellent retention. They teach a mindset of accountability, which is essential to business success. Whether it’s the bank, vendors, employees, government, or your customers, you are going to be held accountable. Instead of getting A’s or F’s, it will be credit or no credit, sales or no sales. The college exam process teaches you to prepare and deliver.

4. Delayed gratification. Studying for exams, hours of research, and forgoing fun times are necessary just to get through college. Making a four-year commitment and seeing it through is a lesson in sacrifice for a greater good. The amount of personal sacrifice in the start-up phase of a business can discourage many would-be entrepreneurs. College grads are used to it.

5. Social Skills. Unlike high school, college students often travel far from their familiar surroundings. Being exposed to different cultures and realizing what they all have in common are great advantages going into business. In college, you learn about different cultures through your study partners, roommates, and classmates. This understanding will teach you how to get along with a wide range of people.

6. Multi-tasking. In college, you learn quickly how to juggle classes, work, social, income and expenses. Giving attention to each, but not neglecting any, is a skill that will last a lifetime, and is absolutely required in business. Just covering the cost of college by itself is a lesson in cash flow management and accounting. Scheduling classes and allocating study and work time is a lesson in risk management.

7. Transition. Going from being dependent on your parents to becoming independent is a real wake-up call. Many students have to put themselves through college. That in itself can be a great education. Being independent and self-reliant will become the backbone of your business.

Years after you graduate, when you get out in the real world, you will look back and realize that you learned quite a bit they didn’t think they were teaching you in college. You learned many of the key skills required for a successful business. Most of all, you learned how to learn!

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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Put Your People on the Same Team

Michael Houlihan & Bonnie Harvey — Sun, 26 Aug 2012 00:29:36 +0000

No matter what kind of business you think you’re in, you quickly find out you are in the personnel management business. With careful hiring, mentoring, recognition, and compensation plans, your people can be your greatest asset.

Recurrent, personnel issues can be a distraction to you and your staff. Some react to personnel problems by firing the offending parties. Occasionally this may be necessary, however the issue may be a symptom of misunderstanding how your company works.

This is why it’s so important to address the main areas that can permit or actually cause personnel issues:

1. Hiring. Before you are dazzled by a stellar resume with the perfect skill set for your opening, consider the individual’s ethics, motives, and team outlook. Do they think they should be paid whether or not you are paid, or whether or not the company satisfies its customers? Are they bringing an agenda to work that has nothing to do with the job? Do they want to get paid for attendance or for production? Are they willing to take responsibility for their own behavior or are they looking to blame and complain?

2. Orientation. Don’t just show them the lunchroom and the bathroom. Show them where the funds come from that pay their salary, benefits, and bonuses. Give them an info graphic that traces the money from your customer, through your sales people, to cover your overhead and eventually pay them. Show them how their job affects the bottom line. Show them how everybody else’s job affects their paycheck. It’s easier to look beyond a co-worker’s personality when they know how everyone fits into the big picture.

3. Compensation. Most compensation plans are based on an hourly rate, which is paying for attendance, not necessarily production. Consider offering bonuses based on sales, cost reductions, and customer retention. Give them a financial reason to help the team perform. With the ideal compensation system, non-producers can’t afford to work for you and producers can’t afford to leave.

4. Mentoring. The time and attention you put into a new hire pays off. Listen to their questions. Clear up quickly any misconceptions about processes and interrelationships. Instead of narrowing down their focus, broaden their outlook to include their co-workers and the larger processes at work. Help them establish priorities. Seeing the big picture keeps the focus on their careers and performance rather than personnel issues.

5. Acknowledgement. A great way to build team spirit is to send out written acknowledgements or make an announcement when a person does something that positively affects business. We did this on each employee’s anniversary. Your people will gain more respect for their co-workers’ value as a team member. It is great when your employees can be friends, but respect and appreciation for their interdependence can be more effective in reducing personnel issues.

When your people know how their check gets to them, how they depend on their teammates, and how their bonuses are affected by the company’s performance, they are more likely to all pull together. Then you can focus on the journey and not the pebble in your shoe.

Who We Are

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

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World’s Best Sale Pitch: “My Product will help you Increase Sales”

Michael Houlihan & Bonnie Harvey — Sat, 28 Jul 2012 21:50:23 +0000

We’ve spent over two decades in sales, and it’s true – nothing happens until the sale is made. We have a friend who described her sales job as “conveying the value proposition of (her) product to (her) buyers.”

There are many books written on the subject of sales, sale techniques, and best closing strategies. We’ve often said the best sales person is the “Assistant Buyer”. The key to sales success is simply to sincerely have the buyer’s best interest at heart.

When you produce a product that goes through distribution channels, or when you offer a service business to business, the funds your buyer has to buy from you came from the sale of their product or service. If you are selling direct to the consumer, you still have to recognize that they have to work for the income, one way or another, that enables them to buy your product.

Everybody who sells products or services wants to sell more. The ultimate question from your prospect is: “How does your product or service help me sell my product or service?” or “How can you help me make more money?” That’s why positioning your sales pitch as enhancing theirs is so effective.

Here are some ways your product or service can help your customer’s bottom line:

1. Reduce his overhead cost per unit sold. He has to pay rent, lights, power, insurance, staff, cleaning, etc., whether he sells your product quickly or slowly. If it’s a fast seller, his cost per sale is reduced. He improves his ROI on his capital investment, maintenance, advertising, and staffing.

2. Increase his profits with lower acquisition costs and, consequently, higher profit margins on your product. Give him a volume purchase program that enables a lower retail price and increased volume resulting in higher profits per month.

3. Make his retail environment more attractive with seasonal point of sale materials and promotional programs geared to the theme of the given holiday. Make your displays festive decorations to his retail space.

4. Increase his business with local promotions and support for neighborhood causes. Use Worthy Cause Marketing to bring in customers who have a social reason to buy your product. Let the membership of the non-profit you support know where your product is for sale in his neighborhood.

5. Sell him a product or service that makes him more attractive and more competitive to his clients or retail customers. Give him the best price in your category, or an area-wide exclusive for an introductory period.

6. Add value to his total sales package. Is there something you can sell him that makes what he’s selling more valuable, adds an extra feature or delivers another benefit – like a guarantee, excellent customer service or loyalty program? Does your product give him “green” bragging rights?

7. Improve his personnel’s efficiency by providing training, benefits or tools his staff can use to increase his sales. Help him find and keep good people.

These are just a few examples of how you can help your buyer increase profits and do his job more efficiently. When you focus on what your buyer is trying to do, you can quickly get a clue as to what you can do to help him increase his sales. Adding value to his sales efforts with your product allows him to say to his customers, “But wait, there’s more!”

Who We Are

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

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Improving Your Productivity can be as Simple as a Walk in the Park

Michael Houlihan & Bonnie Harvey — Mon, 04 Jun 2012 20:17:58 +0000

We often take walks in natural environments for more reasons than just the exercise. We’ve found that putting ourselves in nature provides many subtle benefits beyond physical fitness.

Even if you get out for just 45 minutes in the middle of a hectic day, amazing things can happen. For one thing, it’s natural, like we all are. Our bodies were meant to be in a natural environment. We are perfectly designed to walk, rather than sit all day.

Changing our venue from the abstract, man-made world to the natural world can recharge our batteries on many levels and make us more effective when we get back to work. Rather than losing the time it takes to go for a walk, we actually make up time by making better and quicker decisions.

We enjoy increased productivity the rest of the day. Our attitude and the quality of our decisions also improve.

Just a short walk in nature uses all of our senses. Walking inadvertently requires the use of many human faculties not required in the office. Here are some benefits we have found to taking a walk in the park:

1. Refocus Your Eyes. Take note of the natural surroundings. Looking at flowers, trees, lakes and landscapes takes our vision from the myopic 18-inch focus we need to see our screens, to the depth of field needed just to stay on the path. Changing our focus mentally and physically gives our eyes a chance to do what they were designed to do and helps them relax. When we get back to work, we “see” the difference.

2. Refocus Your Attention. We try to forget the office for the duration of the walk and take note of our natural surroundings. We think about our breathing, balance and posture. We are out of the chair, on our feet and moving. The natural world unfolds before us and passes by as we propel our consciousness down the trail on our own two feet. Giving our attention to our natal relationship with the earth unclutters our minds. We know our concerns will still be there when we get back, but by then we will be better prepared to think clearly.

3. Listen to the Sounds of Nature. Water flowing, birds singing, and wind whispering through the trees are music to ears that have heard only voices, beeping, phones ringing, and road noise all day. Natural sounds are soothing. They help us relax, like we are home, and we are. It’s peaceful and calming. Instead of deliberately shutting out all unwanted sounds to concentrate, we try to make out as many different natural sounds as we can.

4. Clear the Mind. Sometimes we actually prevent solutions and insights from getting through to us because we are focused on our own hypotheses and preconceived ideas. The brain is a marvelous faculty. It is working on our problems even when we apparently are not. Often synergies, elegant solutions and insights pop into our brains suddenly during and right after a nature walk.

Reboot your brain, find solutions, and nurture your health. It’s a simple walk in the park!

Who We Are

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

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Grow Your Business Faster by Sharing the Wealth

Michael Houlihan & Bonnie Harvey — Fri, 18 May 2012 03:19:46 +0000

Henry Ford used to say he’d rather have 1% of what a hundred others made working for him, than 100% of what he made by himself. Some business owners want to have it all, but in the process, cut off the very folks they need to get what they want.

Our business colleagues have chastised us for “overpaying” our sales people. They’d say, “Aren’t you afraid they will make more than you?” Actually, we had several sales people who made more than we did.

When we looked at the efficiencies of scale, the value of stability, and the increase in sales, we knew we were doing the right thing. So, why should you apply this winning philosophy to your business?

1. Reduce Your Turnover. Turnover is the largest hidden cost in business. It can take up to six months to find and train a new person. There is no guarantee that this new person will work out, either. You may have to start all over again with someone new. This can go on for quite a while until you get the right person.

Now you have someone who will be under-producing until he or she is fully trained. You also lose the time of the new hire’s trainer, who now has two jobs to do. Both jobs suffer. And the relationships built by the person who left could either be dropped or taken away by the departing employee. These must be re-built.

Remember, top performers who get a “piece of the action” are generally loyal and truly concerned about the welfare of your business.

2. Attract the Go-Getters. People who know they are excellent at their jobs want to work for a company that compensates them based on their performance. People who are less productive can’t afford to work for a company that has performance-based compensation plans.

When your job candidates ask where your profit centers are and how that flows into their paychecks, you should realize you are talking to a go-getter. Keep your performance metrics well thought out and achievable.

Rewarding for growth over same month last year is a good start. Averaging last year’s prior and subsequent months with the same month will smooth out most anomalies. Renegotiate profit-sharing bonuses annually.

3. It’s Free! If you know the profit of your business now, and you know your rate of growth for the past few years, any increase in that rate of growth attributable to your people’s performance is “found money.” When you cut an employee in for a piece of your increased profit, he is motivated to produce even more. It really costs you nothing. Just make sure the payment is tied into profitability, and not based solely on “growth.”

You are paying too much for labor when you pay for “attendance” alone. It’s their production you really want, because that is where your profits come from.

Why settle for 100% of a smaller pie when you can have more pie by taking a smaller piece of the larger pie others helped you get. When it comes to growing your business fast, it pays to share the wealth.

Who We Are

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

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Vacations Increase Creativity and Productivity

Michael Houlihan & Bonnie Harvey — Thu, 05 Apr 2012 04:19:23 +0000

Some people have to be forced to take vacation. Some even feel guilty or “irresponsible.” Others rack up unused vacation time for its monetary value. Still others see honor in putting their job ahead of a timely break.

Whatever your reason for not taking regular vacations, it can’t measure up to the benefits you and your job receive when you put business aside and give yourself a rest.

Regular vacations not only give you and your people a healthy recharge, they actually help your business. A good policy is to make vacation mandatory and start with yourself.

Here are some suggestions we’ve discovered to get the most out of your vacation:

1. Take two weeks in a row. Long weekends are great, and they certainly break up the year, but an extended vacation is required to really wind down. After a week, you’re finally relaxed enough to start to really enjoy yourself. So do!

2. Put a buck on it. Plan the trip. Buy a ticket. Make reservations. The minute you do, you’ll know your vacation is going to happen. Even if its 6 months away, you are no longer working “indefinitely!”

3. Count down and prioritize your work. You only have so much time to get your work done before you leave. Decide what needs to be completed before you go and what can wait until you get back.

4. Make an announcement to your coworkers, customers and vendors. You will notice a new sense of urgency on the part of all who depend on you. People will be more willing to make accommodations to help you make your vacation date.

5. Spend a day or two at home. Decompress. Take a breath and realize that you are now going to do something different. It’s not what you leave; it’s what you return to. So straighten out your home office as well. The comfort of knowing you will return to a well-organized home front will be well worth it!

6. Go somewhere and stay put. Many folks like to see how many places they can see in a week or two. You may need a vacation just to recuperate from the wild, whirl wind tour. It not necessarily how much you see, it’s how much you relax.

7. Unplug – literally. Take at least a period of time to be unconnected. Get your eyes off the screen and your mind off work for several consecutive days. Focus on your new surroundings.

8. Watch your diet. Be careful not to over do it with food and drink. Why wake up with a headache and indigestion on your vacation? Give your body a break, too.

9. Get some exercise. Make it a point to walk or even hike if you are in shape. Get around on your feet as much as possible. Remember you are probably sitting most of the time at your job.

10. Read something positive. Try not to keep up with the world. It will go on just fine without you staying up on the latest crisis. You will hear about the really important things anyway.

11. Make a soft landing. Spend your last full day at home. Take some time to unpack and enjoy your pictures. Get caught up at your own pace before you go back to work.

You will increase your objectivity, focus, creativity, and production with a timely break. If you still have a hard time justifying your vacation, do it to benefit your job and your business. You’ll thank yourself for doing it!

Who We Are

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

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The Advantages of Being a Small Start-Up – Part 2

Michael Houlihan & Bonnie Harvey — Tue, 24 Jan 2012 03:35:06 +0000

This is the second installment in a four-part series designed to encourage small start-ups by recognizing some of their inherent advantages.

Small start-ups face a myriad of challenges. They are undercapitalized, unproven and have no market traction. They are up against the status quo that will use its established power and influence in the marketplace to suppress any new challengers. Buyers are reticent to take a risk on anything new or unproven.

The big boys have might and muscle, but there are still several advantages the little guys have that can move them ahead:

6. Being New. The small start-up has not yet established its direction and can turn on a dime. This advantage affects everything from plans to budgets, from design to being responsive to consumer feedback. Flexibility is a big advantage when it comes to satisfying your customer and improving your product. The big corps are well established with set ways of doing things that can bog them down.

7. Closer to the Ground. If you are the little guy, survival is dependent on having your ear to the ground and in most cases, your feet as well. Starting out requires a lot of hand-selling and “missionary” work. You are painfully aware of what needs to be done in the market place. Because it’s your company, you deal with your customers up close and personal on a daily basis. You can’t afford to be isolated and insulated. You don’t have MBAs and focus groups to rely on. You rely on yourself.

8. Faster Communication. Information can cross departmental lines easily in a small start-up. For one thing, there are fewer departments. For another, staying in business is more important than “going through channels,” which can be a maze of department heads, divisions, silos, and, if you’re lucky, ending with the intended recipient. The big company keeps order by installing informational gatekeepers. They can stop, change, or delay a critical message based on their perception of priorities, and, too often, job security.

9. Out-of-the-Box Thinking. Because the small companies are usually under financed, they are always scrambling for inexpensive and effective ideas to stay in business. This apparent financial hardship forces you to discover and employ unorthodox ideas, strategies, and tactics that the big guys wouldn’t dream of. They don’t have to. In a small company, cost-saving ideas, customer retention, and marketing concepts can come from anywhere. The big guys tend to want ideas to originate from their proper divisions, which can miss or kill some gems in an effort to defend precious turf.

10. Better Risk Tolerance. Just starting something new is a big risk, and most start-ups don’t make it. Because they are desperate to survive and have less at stake, they are more risk tolerant than the established companies. Small companies tend to tell their legal advisors what they want to do, then ask how to do it. The big guys are more risk adverse and tend to be guided by their legal advisors. Risk adversity can blind companies to new, unproven concepts.

So when you feel overwhelmed by big, established competition, remember that your flexibility and freshness can help you survive. The benefits of being a start-up give you the flexibility to grow and ultimately improve not only your own company, but also your industry.

Next time we will see how being an outsider, with enhanced concepts and simplified processes can have an advantage over an insider with simplified concepts and complicated processes.

Who We Are

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

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Dress for Success (Especially in the Office)

Michael Houlihan & Bonnie Harvey — Mon, 09 Jan 2012 02:35:50 +0000

Many companies these days seem to think that they are giving their office staff some kind of a benefit by letting them dress any way they want. Business casual has become casual and casual has become downright scruffy. What happens when Mr. Big walks into your company and your people are dressed in a way that doesn’t telegraph customer service and professionalism? Before you can say anything, your new client has made a judgment about you, your company, your service, and your product based on how the first person he met was dressed. Now, un-ring that bell! It seems old-fashioned and unpopular to enforce a dress code, but before you write the whole idea off, consider the following:

Are you influenced by the way your retailers, vendors, and people trying to sell you something are dressed? How would you like it if your pilot wore jeans, your attorney wore a tee shirt, your doctor wore a sweat shirt? Would you be more likely to chose a service or product presented by a crisp and sharp dressing representative? Why give the advantage to a competitor who gets the “first yes” just because of the way she dressed?
Is your staff influenced by the way other staff members are dressed? When your staff looks around at their fellow staff members, does the dress they see convey expectations for productive and time-sensitive action, or is it a message that is laid back and disorderly?
Are your sales people influenced by the way your office staff is dressed when they visit? Most sales people have to dress at least business casual or better to gain the respect of their clients. Their success pays everybody’s salary – everybody’s! What kind of message do they get when they visit the office? Do they think “hey, these guys are with me!” or do your sales people think that they are somehow separated from your office staff?
Are your vendors influenced by the way your people are dressed when they visit your offices? Your vendors can provide valuable information about the market, your competition, discounts, how to buy to be the most cost efficient, and advise you about overstocks that you can pick up cheap. Do they want to waste that valuable information on what appears to be a laid-back company? Do they want to save it for a company that looks like they mean business and will expand and give him more business?
Is there less likelihood of problems between the genders when they are dressed to a certain standard? When men and woman are in business dress they tend to view one another as professionals, on the same team, playing by the same rules, and with the same business goals. They know they appear as capable go-getters and are proud of it.

When we had Barefoot Cellars, everybody thought, because of our beach and care-free California lifestyle theme, that we would be wearing go-aheads, shorts, and T-shirts in the office. They just naturally expected a laid back staff with surf boards out in the lobby. In fact we all wore business suits!

Customer service is Job One. Once your people start to get bonused on the profitability of your company, they’ll want to do everything they can to give your company the edge. They’ll want to dress for success. The way you dress in business reflects your respect for the impressions you and your staff give to your customers, vendors, sales people, bankers, and each other.

Who We Are

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

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Positive Company Culture is critical to Growth and Survival – Part 3

Michael Houlihan & Bonnie Harvey — Sat, 31 Dec 2011 21:05:55 +0000

This is the third part in the series about the original Barefoot culture. Culture really sets the tone, boundaries, and expectations the team has toward your company, your mission and your product.

We’ve saved the best for last because having a common cause and a common challenge forges, more than any other single factor, positive company culture.

When you are growing especially a new a brand, something out of the box that has never been done before, you are going to face stiff resistance from the distribution channels and the retail establishment. You can’t blame them because what you are attempting to do is new and unproven. We jujitsued that resistance into the glue that held our team together and gave it a common cause.

The Culture of Common Causes

When Barefoot was trying to get traction in the marketplace, it was an uphill battle. Just to keep the bottles on the shelves was a daily struggle. The Barefooters ( Sales Reps) spent much of their time just replacing vacancies and point of sale materials that had been removed by competitors. Being a small company, Barefoot did not yet have the respect of the distributors or the retailers, and, therefore, did not warrant the attention required to keep the product in stock. Every Barefooter faced the same challenge all over the country.

“How could you put a foot on a wine label?” is what the wine snob detractors were demanding at the time. They thought it was just a passing fad, and a wine not to be taken seriously. The Barefooters were out to show them differently, and they did! Thanks to a great winemaker, Barefoot wines kept winning more medals than any others in the same price category. There’s nothing like team victory to bind the team together!

All the sales staff knew that Barefoot was indeed destined to become big, very big, so they worked together, shared war stories and kept each other energized. They felt like Davids, up against the Goliaths of the wine industry.

They also knew that their fellow Barefooters were actively engaging the ultimate market, the general public. They knew that Barefoot had a “secret weapon”: worthy cause marketing. They were making the world a better place through wine, and they were proud of it.

These forces forged a real team spirit and life-long friendships between the Barefooters. They all knew that it takes a certain type of person to be a Barefooter. They were happy to be one of the team, and they sincerely enjoyed each other’s company and support.

The original Barefoot culture was based on the human desire to have a positive effect on the industry, the community, and the environment, and to be recognized and appreciated for it. It was a philosophy of win-win-win.

Although the example of the original Barefoot culture was that of a consumer product delivered through conventional distribiutions channels, we hope that the lessons we learned will be helpful to you and your business no matter what it is. Good luck and good selling with a positive company culture!

Who We Are

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

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Positive Company Culture is critical to Growth and Survival – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 23 Dec 2011 20:19:28 +0000

A company survives and grows due to sales and the loyalty of customers and staff. Sales are based on price, value, dependability, integrity, availability and perception. The basis of perception is image, networking, and more recently, the transparency of the producer.

Transparency is what the brand stands for, its authenticity, its identification with higher values, and the actions it takes to demonstrate those values.

When companies subscribe to a higher order of value, beyond the products they sell, they have an advantage in today’s marketplace. Employees excel, and tend to stay with these companies, providing long-term relationships with retail buyers, customers and complementary organizations.

The Culture of Customer Service

At the time Barefoot Wine was founded, the business model was considered radical. The founders viewed it as more of a “service” rather than merely a product. At Barefoot’s price point, which we termed the “velocity price point”, it was clear that it could not survive without becoming “America’s Personal House Wine”. From the beginning, it was understood that it had to sell massive quantities to stay in business.

“Personal House Wine” was defined as the wine one serves in one’s own house as a staple: “Tuesday night wine, picnic wine, beach wine”. It was the wine to always keep on hand. It was the brand you discovered that consistently delivered the quality and value you had come to expect from your own “personal house wine”.

The company knew that customers (“foot fans”) would be loyal to the brand as long as the price remained stable (at the velocity price point), the taste profile was consistent (delicious), and it was available and easy to buy (in stock).

The original Barefoot culture wa based on the most comprehensive definition of customer service. Imagine a company that, through worthy cause promotions, encouraged customers to go into specific retail establishments to buy their brand. Imagine a company that viewed its displays as retail entertainment, adding color, fun, and theme sets for the enjoyment of its customers! This is the ultimate in customer service to your retailer, your end-user, and to your community.

The Culture of Acknowledgement

People are motivated by goal achievement, but also by public recognition. It not only validates their creativity, but it send a message to the rest of the troops that this type of behavior is not only appreciated, but also identified and exemplified.

Appreciation goes a long way toward building team spirit and encouraging everyone on the team to be creative in a productive and fun way. They know that top management and their teammates will recognize their achievement and are not afraid to speak up about it. They are encouraged to create imaginative promotions and fun events.

Public acknowledgement, especially in written form, circulated to all staff, is validation. Employees want to know that they are contributing, and that their efforts are being appreciated. Third party validation from managers, peers, customers, associates and non-profits builds confidence to go out and do more of the same, or better! It also give your people an appreciation of what their team mates are doing to improve everybody’s circumstances.

Positive company culture is the foundation of company success. It reduces turnover, improves morale, cooperation and overall team spirit, all of which result in increased imagination and productivity. Next time we will examine the culture of Common Causes.

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