Tag Archives: business

In a tough economy, budget brands are king

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It’s a bit of a no brainer really, but in tough times businesses that specialise in providing their customer with low cost products tend to do better than others. I had this thought when I was reading an article about Zenni Optical. It’s a company that sells eyeglasses starting at $6.95. Add $4.95 for shipping to the US and you have the cheapest pair of prescription glasses you can get anywhere.

So, how does Zenni Optical manage to keep their prices so low? Well, reading from the article I learnt that they produce and ship their glasses all the way from China. Yes, the shipping cost and time it takes to deliver is certainly more than getting it locally, but they can drive the cost of production right down. And how do they keep their costs so low? Well, the website links customers directly to the manufacturer. There are no middle men in the process, which means that any overheads are immediately minimised. All cost savings are passed on to the customers and voila, you have a lean process that places Zenni Optical right up there with the cheapest suppliers of prescription specs around.

They also ship internationally. I might even consider getting myself a pair!

Social Media and Your Business

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It’s funny how sometimes something sticks in your head as an action or placeholder for something you want to do. Well, a few months ago I had heard my friend Sherrilynne talk about a set of stages that organisations go through in their jounrey to adopting Social Media. I ended up digging around and found her source, a most excellent post by Brian Solis called The 10 Stages of Social Media Integration in Business.

In a nutshell, the 10 stages are:

  • Stage 1: Observe and Report
  • Stage 2: Setting the Stage
  • Stage 3: Socialising Media
  • Stage 4: Finding a Voice and a Sense of Purpose
  • Stage 5: Putting Words into Action
  • Stage 6: Humanizing the Brand and Defining the Experience
  • Stage 7: Community
  • Stage 8: Social Darwinism
  • Stage 9: The Socialization of Business Process
  • Stage 10: Business Performance Metrics

It’s a thought provoking piece, and if you read nothing else today, read THIS. And I mean really read it; don’t skim through it, savour every word and ponder on its significance. It will give you a deeper understanding of the journey we’re all heading through.

The cost of the Ash Cloud

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British Airways tailfin
Image via Wikipedia

Some interesting facts and figures surrounding the current ash cloud crisis in Europe and the cost it is causing to business. Here are some numbers:

  • British Airways: £15m to £20m a day in lost business
  • TUI Travel: £5m to £6m a day
  • IATA: Industry costs of up to £165m a day

Some of the numbers mentioned are staggering, but it does give an indication of what a devastating effect natural causes can have on a business. You can expect to insure against this sort of eventuality, but the premiums would be astronomical. And then bring to bear the human cost of what could happen once companies start failing and jobs are lost and you begin painting a really bleak picture. It may not be as bleak as the current mesothelioma survival rate, but it still pretty ugly.

Have you been affected by the volcanic ash?

NSA chief endores the iPad

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You know, there are many things that can help market your product, but when the chief of the NSA calles it “wonderful” you know you’re on the right track. This is exactly what happened to Apple when Lieutenant General Keith Alexander, will will be leading the U.S. Cyber Command, went on record speaking highly about the iPad. When a company launches a new product they take a massive risk, and to get a high profile recommendation like that can be a very powerful tool.

It looks like the iPad launch actually went better than iPad planned, it looks like supplies are tight because they underestimated the US demand. The thing about a new product is that you can hardly turn the outdoor lighting on it and see how brightly it will shine. Things have to be kept under wraps while the product is being developed. When Apple announced the iPad, it was already being produced and the amounts to make would already have been agreed.

Still, they can always make more huh?

Of Firsts, Nevers and Revolutions

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Great post on Seth Godin‘s blog entitled “Firsts and Never” talks about firsts and great and exciting, never being harder to accept and how revolutions change everything. There are a couple of great thoughts in there, particularly how the Internet is changing the way we transact with companies, the way we talk to each other and the way we perceive value. It doesn’t matter whether you’re in the business of selling ballet shoes or the cheapest car insurance on the block, being first is important, but moving the goalpost by innovating and coming up with something new i much more valuable .. both to you and to the rest of the world.

Focus on niche markets

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One of the great things about the Internet is that it provides a great marketplace where traders and customers can meet. And it’s really effective at providing a steady stream of custom for niche markets that wouldn’t survive otherwise. If you deal with specialised products, like WordPress themes or gold coins, you wouldn’t survive unless you had a way to tap into a steady stream of customers. And one such market is industrial valves.

Valves Suppliers UK is a company that specialises in industrial values, a pretty specialised market where customers number in the thousands rather than in the millions. They sell products like the Stainless Steel Dual Plate Wafer Check Valve that retails for around £500. You won’t be buying one of those every day, won’t you? Anyway, the Internet lets them get in touch with customers all around the globe, offering their products to any potential customers regardless of where they are in the world. They also have a selection of technical documents on the website and a user forum that helps them prove their authority in the field.

Any other niches you can find online?