What is the New economy?

The New Economy is a term to describe the result of the transition from a manufacturing-based economy to a service-based economy. This particular use of the term was popular during the Dot.Com bubble of the late 1990s. The high growth, low inflation and high employment of this period led to overly optimistic predictions and many flawed business plans

What does the New Economy Mean?

There are two broad trends of the new economy globalization and information technology.

Globalization: On a larger scale means numerous things such as world currency and leadership. However for you and me it means no longer are we demographically limited by our location but free to do business world wide. No longer do we have competition but alliances which we can form to help each other grow.

Information Technology: We have such an abundance of information available to us, for everybody, on every topic and delivered in a way that is best suited to you. You can read it as it happens in the most formal and informal manner, both paid and unpaid. We want information and we want it now, in business product knowledge has always been crucial however a good sales person knows it’s not actually the “knowledge” that sells, but the feelings they will have and the outcome they can expect when the use it.

A Great Example of The New Economy in Business

2 words sum up the new economy; RELATIONSHIPS & TRANSPARENCY

The creator of The Lingerie Journal, Luis Paredes realises the importance of relationships and transparency. You see independent businesses such as Designers don’t always have the budget or the time to reach their potential market. Just like Retailers don’t always have the time to research upcoming labels and search for Exclusive Designers therefore they settle for generic labels.

Both know that success lies in being different, being open and being ready.

In New York City we will see the beginning of the new economy at it’s finest, the Retailers will shop for new and exclusive labels in a way they want to buy. Luis has created a space for both Designers and Retailers to get to know each other, build relationships and trust in an intimate environment. With no ‘In-your-face-this-is-my-sells-pitch’ but a sophisticated respectful conversation between two people to see if there is a potential lucrative business arrangement….a good market match.

Check it out

The Designer Showcase is a new lingerie trade show designed to give independent designers and emerging brands the opportunity to meet and do business with buyers in an intimate setting. The new show dates are February 21 – 23, 2012 at the AKA Hotel Residences in New York City.

The second edition of the Lingerie Designer Showcase (lingeriedesignershowcase.com) returns this coming February as NY’s premiere venue for independent lingerie designers and emerging brands. Show dates are February 21 – 23, 2012 at the AKA Hotel Residences (on 44th street between 6th and 7th avenues) in New York City.

Newcomers to the Designer Showcase include Priscilla Jade Lingerie by Priscilla Codinach; Toad Lillie, a handcrafted lingerie collection by Laurie Shapiro; Dottie’s Delights by Stephanie Kuhr; Good Night Gilda by Whitney Galitz; the luxury Sleepwear brand Ann Vogue by NYC-based designer Asi Efros and Frances Smiley Lingerie.

Also, returning to the show is the eco-conscious lingerie line, Clare Bare Lingerie and Ombrato Sleepwear by Masako Shirokawa.

“We’re incredibly thrilled to have all of our new and returning exhibitors,” said Luis Paredes, the show’s organizer. “Buyers will absolutely love the designers we have on board and they will have the chance to really get to know them and their collections through the Lingerie Journal in the next two months and finally at the show.”

The Lingerie Designer Showcase is a new lingerie trade show designed to give independent designers and emerging brands the opportunity to meet and do business with buyers in an intimate setting. The show is free for buyers to attend.

“It’s rare in the tradeshow world to get the opportunity to really get to speak directly to designers in such an intimate setting. Some of our newest products are from two of the companies we met at the Showcase and it is absolutely at the top of our ‘must attend’ list for 2012,” said Nicole Cordova of the online boutique GiseleLima.com

It’s a small, affordable and effective show for designers explained Paredes. “Our goal to is to help them succeed by putting the designers first.”

Participating brands are supported at the show by the Lingerie Journal through a mix of aggressive marketing, PR and buyer outreach.  On twitter, the show has a dedicated account - @TLJ_Showcase

“Our first show was a huge success for our exhibitors Clare Bare Lingerie, Ombrato Sleepwear and Fun Factory” said Paredes. “We were able to promote and raise awareness of their brands and each of the exhibitors were able to do business with visiting buyers at or after the show.”

One of the reasons for the show’s success explained Paredes, is how affordable the show is to designers looking for a venue that will not eat up their entire yearly budget. Rooms can be shared and costs divided between designers as well.

Luna Logo, owner of the online boutique, mylunakiss.com added, “I think this is wonderful. It’s great that designers get a chance to meet with buyers in this intimate setting. At a lot of convention shows, you don’t get a chance to do that and I think it’s great they get one-on-one time.”

Also on schedule for the show is a seminar for buyers and a networking social at the show to bring together designers and brands. More details will be announced soon said Paredes.

Buyers interested in attending can stop in any day of the show or schedule an appointment on the show’s site: http://lingeriedesignershowcase.com/attendee-registration/  

Interested Designers can also get and request more information: http://lingeriedesignershowcase.com/participate/

“We have limited spaces and are almost sold out so if you’d like to join us, please let us know soon,” noted Paredes. “We’re going to make this the best show yet.”

The Show is being sponsored by Eucalan Lingerie Wash; the online lingerie directory, Directory-Sexy.com and Love Me Sugar, a line of vintage inspired sleep masks and accessories.

1. Production Phrase
Have high standards remember your name is on this it is crucial you keep a close eye all aspects; the fit and finish must be perfect. I am beginning to critique sample bras all the time to ensure a successful launch and collection. Your products must match your samples! Biggest mistake I see is that the samples are not perfect. They are on show at the fashion expo and in fashion shows where can all see the shape and fit. Retailers are looking with a hawk eye to this detail and if the fit isn’t there they will not buy.

Think about this; would you invest in something that you weren’t 100% sure on? We’ll do it once but we’ve all learnt from that. The returns will not be kind, fashion is brutal.

2. Shipping on time
Credibility is everything- In some ways the fashion business can be very unforgiving. You can’t ship one season late; that will be your downfall.

3. Wanting to be in certain stores
Designers sometimes underprice their goods in order to have certain prestigious or department stores buy their lines with the thought process that can raise their prices later and it does not work. Those stores bought you to fit into a certain price point. Slip out of it and they won’t be buying your next line. It may work in one season but not for the life of your company. In spite of funding you by season most businesses are in it for the long haul. Increased volumes will not necessary cover the shortfall of underpricing. It works for off-shore mega producers but by then, you’re not a fashion forward line anymore are you?

4. Spend now, worry about it later
Designers get caught up in the whirl of marketing and PR, putting on fashion shows and invest in a lot of money thinking they can pay the bills later; there is no later. Focus on your spending priorities; invest in your product and what is guaranteed to give you a return so it’s not necessary expensive PR.

5. Don’t believe your own media
While making the pages of a glossy magazine is a feather in anyone’s cap, it’s not a million dollar deal. You’re not a star. There is no instant stardom. Making it in the fashion business is not an overnight accomplishment; the product is what it’s all about. It’s not you, it’s your product.
6. Credit worthy stores
Designers and wholesalers make the mistake of assuming a prestigious beautiful store is a good credit risk, bypassing mainstay stores. The store is beautiful because they spent a lot of money on it may mean leaving them less money to pay you! Don’t assume a beautiful store will be a credit worthy customer. You have to take a hard line; honourable long term businesses aren’t built on weak credit.

7. Don’t speculate
Do not over produce. Do not cut extra goods with the potential of reorders in mind. As it is, you’ll get some goods returned so you’ll end up with more inventory on hand than you’d expected. Pushed for a figure, you should never cut over 3%-5% of total orders. You aim is to increase the initial order amount.

8. Never sell on consignment

You never know what you’ll get back. You won’t be able to use it or resell it to anyone because it’ll be shop worn. If a retailer wants the goods on consignment, they’re not committed to you. You’re much better off selling on straight terms.

9. Hands on all aspects
Some body must watch the watchers at all times in every stage and that’s you. Keep it simple, this is a cash business. The sooner you see that fashion is a one season, cash flow business, the better off you’ll be. Focus on the long term by producing the best product and keep unnecessary extravagant expenses low.

10. Don’t allow one store to dominate your sales
Above all, avoid concentration. It doesn’t matter if it’s Myer or David Jones, one account should not dominate your customer portfolio. If one account dominates, you can be hit hard if they drop your line. Diversify. One customer should not account for more than 25% of your sales. A way to create exclusivity is to create a piece in a particular colour for them and put a time frame on it.

Push Selling   

Product/Service Focus

Learned Sales

Process with a textbook

Questions

Close

Pull Selling

Client outcome focus

Structured but conversational

Stimulate, Demonstrate value, Activate

Are you easy to buy from? We have spoken about Know. Like. Trust and creating a sales journey, however there are three more fundamentals to your selling success.

• Likeability- Your customers need to like you
• Urgency- Create a “must have” experience for example, seasonal lines
• Consistency- Be consistent in ALL areas of your business from your admin and marketing to your level of service.
• Knowledge- Product knowledge is crucial however take it one step further and ensure all employees know what is expected and why. In all areas of your business, because a confused mind NEVER buys.

Have a 3 step qualifier- In your sales journey create 3 questions you can ask that identifies your customer’s needs. For example-

1. I wonder if I can ask you a few questions…
2. If you are online, aim to have everything 2 clicks away then have prompts on every page on their next step.
3. Never assume what people want and need.

By doing this you are gaining clarity around what it is your customers want and need then deliver it to them promptly and efficiently. The biggest mistake most people make is they don’t like to ask questions in fear of appearing unprofessional and lacking in knowledge, however it is quite the opposite because people like to feel heard and respected.

1. Solve their problem
2. Lower their risk
3. Be on their page

Target the right audience, speak to them in their language and you will increase your strike rate.

Sell Without Selling

This would have to be one of my most popular presentations to business owners and their sales team. It is your bottom line and it will make you or break you. In the old economy it was the hard sell think car salesman. In the new economy it’s all about the soft sell Know. Like. Trust. This is nothing new, forward thinking businesses have been doing this for years however this concept is new to the majority of people.

Your customers thought process is simple:

Know. Like. Trust: They need to get to know you, you need to be likeable and most importantly they need to trust you.

Then in their sales journey they need to go through this process:

I love it.

I want it.

I will buy it.

First and foremost you need to understand exactly what their desires, frustrations, feelings, wants and needs are. Focus on their emotions, needs and desires then wrap your product around that.

Top 5 Ways To Sell Without Selling

1. Turn features into benefits, and then turn benefits into feelings. Most people only do the features and benefits but once you add the “feeling” that’s when magic happens.
2. Know the keywords, buzz words or power words. These are the words that melt in their mouths leaving them longing for your product. This has nothing to do with SEO it is about your customer and their feelings. It’s a great idea to brainstorm this with your team.
3. Answer any objections they might have before they ask it. What are their objections and how do I solve it.
4. Understand the 5 emotional triggers- Fear, Guilt, Greed, Pride and Love.
5. Sell the magic pill and always deliver.

What is the return on your energy? Your ROE.

You work so hard in your business that it is not sustainable, you will run out of steam. They don’t tell you that in the beginning!

In the beginning you are prepared to do the hard yards and you have to be if you’re going to get to that break even point. But there will come a day when you need to step back and take a look around, look in the mirror and what do you see…really see. Maybe you’re already there? Refuel your tank; if your business doesn’t run as efficiently when you’re not in it then something has to change.

• Look at the systems you have in place or don’t have in place.
• Train your staff so it runs like a well oiled machine when you’re not there.
• You really need to take time out and work ON your business; at least half of your time should be spent doing this.
• Delegate whatever you don’t have to do and whatever your weaknesses are.

If you are worried about the costs of delegating there are some really inexpensive ways for you to do this, outsourcing is the new black!

Reward them.

By looking after your staff you are treating them with respect and when they feel liked, trusted and respected they will work hard for you. It’s cliché but so true “treat your employees the way you would like them to treat your customers”. When you create staff incentives it doesn’t have to be expensive or extravagant, so get creative and ask your staff what they would like to work for because it isn’t always money it maybe the recognition that means more to them.

Different incentives for your employees-

• Give them movie tickets
• Dinner vouchers
• Have a point program where they accumulate points/$ that you keep then they can withdraw it once a year for a holiday
• Jewellery
• Lingerie
• A title

Make it fun

• Get the winner to pick the incentive for the following month
• Staff should always be involved in setting the goals
• If you are offering a commission the rule of thumb is 3 times the employee’s wage.
• Don’t always make it a dollar amount they have to reach, try making it service  or customer related because it’s about adding value not just $$$.

This is a time when we need to think and price creatively! Let’s face it the big boys have been doing it for years and it’s not about misleading our customers it’s about understanding the physiology behind it. I know you may feel like you have no control, with the RRP on your collection because its determined by the wholesaler however there are heaps of ways you can price your merchandise to maximise your sales.

1. Know which class you’re in- Decide which class you want to be in and be the best in that class. Whether you sell luxury items or bargain basics the same rule applies and as soon as you mix the class you mix the message and you’re sales will drop. Think about-

• What does your price say about you?
• What are your competitors doing?
• Where else can your customers buy this from?
• Is it easy to switch from one to the other with no real difference?
• Know how much it is per item and how much it is with overheads.
• Lower Prices- Think about Kmart and Bunnings pricing structure. They never/rarely go on sale, they will always be the cheapest prices guaranteed. So people automatically know to go there if it’s low prices they want.
• Luxury Brands- Promote exclusivity, a trick is to be extremely expensive to lead, then have a slightly expensive but affordable collection. That way they are surprised at how affordable it really is. This works well if celebrities are pictured with a handbag in a magazine for example with a price tag of $30,000 people see it jump on the their site and see “Oh look they also have bags for $3000, I can afford that!”
• Medium Price Points- Think Coles and Woolworths, they promote “Freshness” and supporting the “Community”. They don’t really have any specials anymore however what works really well is the 3 for $….

2. Anchoring- You need to find your sweet spot and everyone’s sweet spot is different. When you position yourself think about this-
• Don’t cheapen yourself! This is what everyone does when they are scared. Over the last few years we have slowly become immune to SALE signs because instead of being something we did twice a year, we now have them week in and week out. As you can see by the latest retails reports Sale’s have no impact on your business.
• Don’t be too expensive for your market- If your business is sitting in a luxury class it is crucial that you back it up with massive amounts of value. Adding value is generally at no cost to the business yet it enhances your customers experience ten fold.
• Don’t sell rubbish- No matter which class you are in you can never sell rubbish. While the quality and/or level of service may vary, people will always remember if you sell them rubbish and tell their friends. Have standards that are aligned with your prices.
3. Price Creatively-  Create Value and package them up in 3’s

HOT TIP: You may want to do exclusive offer to your best, most fashion forward customers and release it to them before you put it on the rack.

Think different | Be different

Your Brand

• Do you have any new concepts in place? What have you introduced into your business in the last 6 to 12 months? These changes can be big and small or it maybe just a slightly different thought process you have. Make a list of all the new things you have introduced into your business.
• Assess your advertising and marketing results from this year. What has worked and what hasn’t? What were the highlights of your current season?
• What is your brand message and did you deliver and align with it this year? Ensure that you and your staff are aligned with your brand message at every point of your business.
• Delivering your message- Write down all of the possible marketing opportunities. For example television, print and press, events and promotions, social media, trade shows, window displays and point of sale.
• Most importantly think about and write down where you would like to take your business in the next 12 months, what do you need to accomplish?

Now you are ready to put together your marketing plan for 2012.

Once you have your marketing plan together think of ways you can support it and back it up with some awesome value added strategies for your customers. The key to the success of a marketing campaign, is to ensure you educate and communicate it with your team to deliver on your message.  For example with the recent NAB marketing campaign they actually started making changes 2 years ago to ensure everything was in place so they could deliver on their message. You don’t want to invest time and money into marketing your business then have it fall down at the first hurdle.

Points to think about when you’re putting your marketing plan together-

• Spread your major events evenly through out the year.
• Know your quiet and busy periods then create a strategy to maximise business and results.
• Plan how many man hours you will require
• Know the previous years results
• Work out how much growth you need then how much you need to make in order to get it.
• Know and align yourself with things that are happening in your community and your favourite charity.
• Create different levels of status, for example know how big or small you would like the promotion to be and back it up with innovative ways to support and promote it.

Good luck and be creative!

As I mentioned in my previous post Donald Trump says “If you can’t handle the pressure get a job”. Truer words have never been spoken. In this current economy boy does it bring out all sorts of crazy thoughts, accusations and “experts.” The aim of this is not to judge anyone or put anyone down but simply to shed some light and say we are all on this path together and if you can avoid some of these crazy notions and mistakes it will save you time, money and whole lot of stress.

1. Knowledge is key:-When I started my first online business 6 years ago I spent over $10,000 on a site that looked gorgeous but was crap in the SEO department and Google really did not share the same love for my site. We didn’t know any better because we didn’t understand the internet and how it works. We also paid $50 a month for hosting which we thought was fair and reasonable because we didn’t know any better and we receive quotes that were all around the same price.

We had the entire business on the line here, so it was crucial that we begin to learn and quickly about how the foreign world wide web worked. I studied everything and anything I could get my hands on to get my head around it. Pretty soon we were dominating SEO, our ranking and realised that $50 a month for hosting is a joke. I now pay $14.90 a month on Bra Queen and around $6 a month for Busting Out, Renee Mayne and Bras Exposed, not too mention the cost to build my sites are MUCH lower then 10K. The first thing I say to my clients is even if you outsource your SEO, social media, book keeping or anything, you must have a basic understanding of how it works to ensure you’re not getting ripped off and it’s actually doing what it should.

Recently a business I know paid an absolute bomb for SEO on their site only to discover that it failed in many areas. Now this is were connections come in very handy my friend Jim over at http://stewartmedia.biz/ helped me out by looking into this website then shared his expertise and knowledge for FREE. It took quite a bit a time for him to go through it however he did it as a favour to me, but also because he is passionate about what he does and he is fantastic at it. Now the business can move forward and work through the issues to create a cranking website with great SEO. If this wasn’t brought to our attention they would have continued to pay a premium price for something that wasn’t working.

LESSON: Know the basics at minimum about everything in your business and build rock solid relationships.

1. Don’t get mad at the world wide web:- It’s really easy to blame the government, the internet, the carbon tax, the weather or mother in law for whatever isn’t going your way in your business. But that doesn’t solve a thing and don’t ask a question you aren’t prepared to hear the answer to. The day you think you know everything is the day you know nothing. Business owners ask me all the time about email marketing, conversions and expecting miracles “because everyone is spending money online”.

a. Making money online does not happen over night, think of it as another business. You have to do all the same things like create a business model, sales and marketing etc etc.

b. “If I sent out 100 emails why did only 10 go to my site?” Tell me for every 100 who walk past your shop how many come in? Be realistic about the results you expect.

c. “I sent out 2000 SMS’s why did only X amount go to my site?” Think about your call to action, you may think it will entice them however you may not be looking at it through their eyes. If you are trying to convert your data base to online and you are sending an SMS to everyone who has entered your doors in the last 10 years sorry to break it to you however not all of them are going to be raving fans AND that is a good thing. The people who do sign up to your site, you want them to love you and get to know you better…they are your loyal customers. You can have a list of 20,000 bodies who don’t really care about your business or 10,000 people who do. Which do you think will be more profitable?

3. Some “Industry Experts” are not trust worthy:- For example I receive all sorts of information from various sources because I have my ear to the ground. I love that they are trying to educate businesses on e tail and m comm however not all information is wise information.

a. Capture ALL details: I’m sorry this is total BS, you MUST capture details a name and email is more then enough. However truth i,s most bricks and mortar stores want to capture the number, their postal address, their cats name, dogs name and their favourite ice cream. People do not have time for that! You can get that information later when they do buy or when they are ready to give it to you. Just today I went onto an “Industry Leaders” website and I couldn’t even LOOK at the content if I didn’t sign up and not just sign up enter my ENTIRE details, now that is just ridiculous.

b. Experts are also recommending it is crucial to have FREE postage online and factor it into your margins however this is NOT always the best option. From my experience most people want to see the cheaper price then add in postage IF it is a flat rate and they are aware of it before they reach the check out. Some people do prefer it to be factored into the price so it is something you will either have to trial or ask your customers.

Most people who have been online for a while and understand how it works say, if the break even on postage it’s a bonus, most lose a little money but for a long term gain. If you create a great customer experience, they will be back and tell their friends so those few dollars want hurt too much.

Look on the bright side-

Some will say “Oh I sold $1,000 worth of products but then I had to pay Paypal fees AND postage”

Me: “Was it new customers?”

Them: “Yes”

Me: “Well then I would say it was MORE then worth it. Big picture and change your mindset.”

Train hard to win easy, don’t just be positive be smart.

There is no denying the world of retail as we know it is changing, the way we shop is changing, the way we market our businesses is changing and the economy is changing. It is crucial we change, move and grow with it. Believe it or not, once you surrender to what is and make some changes it really isn’t that hard and it doesn’t have to cost the earth. Recently I had the pleasure of being in the same room as some business leaders and here are some ways you can boost your business and get your brand out there from their perspective.

1. Robert Kiyosaki:- Author of RICH DAD POOR DAD
   and founder of the Rich Dad empire believes in a few vital fundamentals. He says “Wealth is in business and investing it’s not about being self employed. Avoid paying tax where you can (legally) by getting a fantastic accountant then asking him “How can I offset this”. This alone will give your business a major cash injection.” If you haven’t read RICH DAD POOR DAD
   it’s a MUST read and he has just launched a new book called MIDAS TOUCH: Why Some Get Rich-And Why Most Don’t
   which he co authored with Donald Trump. The next crucial element to business success is featured in the image you see on the right. Start to think about whom you can align yourself with and create some magic. It could be a gym, an image consultant, a playgroup, a charity, a school or your Tupperware lady the trick is to be creative and think outside the square. For example I once worked with a Hair Salon and discovered the clientele had a particular car they liked to drive, so we created a fabulous joint venture with this particular car company and it was a very successful campaign for everyone.
2. Tony Robbins will change your life! This man is incredible for both business and personal growth.  He talks about your state, your story and your strategy. If you change your state and your story then create a strategy you will find success. In other words know exactly where you are and where you want to go, then create a map to get there.

He says in business you must know the road ahead, for example:-

-          New competition

-          Change in technology

-          Change in culture

-          Change in the economy

-          Change in lives

-          Change in your employees lives

-          Change in your life stage

Tony Robbins will be in Australia next year if you can go, make it happen because he really is amazing. He also talks about the 7 crucial steps you must implement in your business which will be featured in this weeks newsletter so if you haven’t signed up, then do so because you don’t want to miss it.

3. Donald Trump- Believes in strong relationships “Show them respect but don’t always trust them”. You can have the worst product and a great marketing campaign that will beat a great product any day of the week. *cough cough Ahh bra* Donald also says “If you can’t handle the pressure, then go and work for someone else” he believes that the most important area of your business is sales, marketing and negotiating. Donald also thinks that “Retail is too hard and tough to make money in but if you do it right, you will and can make money.”

Something Tony Robbins, Robert Kiyosaki and Donald Trump said as well as all the other business leaders who attended said, the next 2 to 5 years in business is going to be time where you will either sink or swim so you need the MIDAS TOUCH: Why Some Get Rich-And Why Most Don’t
to survive:-

• Strength and character
• Focus
• F**k you (strong) branding
• Strong Relationships
• It’s little things you do