The Two Cent Candy
Today, I have to tell you about finding profit from “Two Cent Candy”.
I just read an excerpt from Tom Peters’ new book – The Little Big Things: 163 Ways to Pursue EXCELLENCE – due in stores next week. His books and teachings have changed big business and many ideas that work for corporations can work in small businesses too.
Tom Peters idea # 131 involves a very simple but important idea… Back in the olden days at a local shop, there was often a small candy dish sitting next to the cash register. The dish was filled with wrapped candies, usually a peppermint or root beer barrell. As a customer would pay, they would take a piece of candy, smile and feel good about their purchase.
This very small gesture (and cost) gave the impression to the customer that they were valued and appreciated by the shopkeeper. On the surface, this small piece of candy seems ridiculous and insignificant. In reality, it is HUGE!
Establishing customer satisfaction and building a long-term buyer/seller relationship can start with something as small as a piece of candy. Making a customer feel appreciated can lead to them returning for another purchase.
I’m not necessarily suggesting that everyone needs a candy dish – but everyone can use this idea to improve customer relations which will lead to more sales and PROFIT!
Here are a few ideas that might work well for your business -
- Giving customers a 15% off coupon for their next purchase.
- Having a give-away drawing for a product.
- Creating a “Super Customer” card that tracks purchases and gives rewards when a certain level is reached. For example, buy 3, get the 4th free.
- Making a logo pen and giving it to customers to keep as they sign their credit card receipts.
One of the key points is to make the connection at the point of the sale. Whether it’s at a cash register, or a mailed invoice – find a way to say thank you for spending your money with me.
Yes, these ideas have costs associated with them but they can all be tied to creating future sales. Why not spend a few pennies today to make several dollars tomorrow. Think about it and implement this idea.
I’m going to be looking for candy dishes and smiles when I go shopping. Will you have one? Kay Peck
Teen Entrepreneurs Make Profits
Teenagers are probably my favorite type of an entrepreneur. Teenagers have a unique perspective on life and bring that into their companies. They don’t have a lot of preconceived ideas about how the business world operates, nor do they really care.
The teens I know started their business when they realized they could sell something. Once they learned Bill Gates started his first company at 14, they thought they could too. If you’ve got the idea of starting a company, it’s near impossible to give it up.
No matter what your age, when you first become an entrepreneur, the sky is the limit! You think very big! You follow your interests and see where the money can be made.
The time to be creative and adventurous is when you are first considering your business ideas. Play the “What If…?” game. “What if you …?” each time making it larger or more diverse. Keep a list, build off the good ideas.
Once you have a qualified idea, it’s time to learn some of the nitty gritty of start-ups. I found this reference written by Stuart Harris called Teenpreneur Teens Making Money
If you are over 21, we have to work extra hard at keeping that youthful ambition. I know it’s hard as you get more experienced. It is difficult not to get jaded. Don’t think back to the days when things were better. Look to the future with mind and eyes wide open.
To find the profit today, remove any negativity from your thinking and play the “What If…?” game. What if you added a few new products, or ran a promotion, or changed a supplier. Look at the various areas within your company and see what you could improve. I’m confident you can have more profit when you’re done. Kay Peck
Get Multiple Profit Sources
It’s an old saying, but couldn’t be more true today – Don’t Put All Your Eggs in One Basket
While the quote suggests putting your eggs into multiple baskets, another idea is to have more than just eggs in your basket. In other words, diversify your business.
To generate the most profit in your business, you must build your business on a foundation of Multiple Profit Sources instead of depending on one single revenue source.
Why grow incrementally or linear, if you can grow geometrically and exponentially with the same time, effort and capital. Let geometry work for you. Geometry is not 2 + 2. It’s 2 x 2 x 2. It’s basically bringing
three different factors, or more, together.
It’s been proven that it is easier to sell more to each customer than it is to get in more customers. One stop shopping has become the standard. While the term – upselling- may be distasteful for your industry, it’s a fact of sales. Get the buyer in and offer them many, many products.
Let’s say you own a yoga studio that does very well with group classes. Have you specialized into different demographics for those classes? Pregnant yoga, couples yoga, senior yoga. Do you sell yoga-related products like mats, videos and soothing music? How about gift certificates or promotions with local spas?
If you have a foundation of multiple profit sources, then your business can continue to prosper through difficult times. If sales go down in one area, they will go up in another.
Sometimes an expansion of products is obvious, sometimes it’s not. Disney started out with cartoon movies, built theme parks and now has cruise ships. The overall brand of family entertainment is present, but the diversity of their distribution channels is vast – from movies to travel to clothing and even a basketball team.
Disney is an example of their egg being in different baskets. Mickey is everywhere and making money everyday. Walt Disney was brilliant to diversify into the theme parks, when DisneyLand was built in the 1940s it was revolutionary.
If you think your business is limited, I suggest going online to research ideas from your competitors. One great thing about the internet is that you can overcome geographical barriers. You can spy on companies on the other coast and use their ideas in your community. Study the big businesses in your industry and incorporate some of their practices into your business.
Think Big! Be creative and find a new idea for an expansion of your current offerings. The profit will increase as you add more options for your customers. Let me know if I can help you brainstorm! Kay Peck
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