Family Business


Sunday, January 23rd, 2011

The Lively Merchant Headlines in Vegas

Welcome to Las VegasCatch The Lively Merchant in Vegas this week during the first Next Generation-NOW educational session at the Las Vegas Furniture Market on Tuesday, January 25 from 4:00 – 5:00 pm in the new Retailer Resource Center, WMC-C488/496.

In this session, David Lively will teach you how to work with four generations around your conference table and on your sales floor. Differences in each generation will be explained, and you’ll get hands-on methods to use in your business to bridge the generation gaps.

Next Generation-NOW provides professional development, networking and hosted forums to give a voice to the unique needs of young furniture professionals.

Our team is in Vegas through Thursday, January 27. Give us a call if you want to meet up and talk shop.

800-549-9206 ext. 1

  • Generational Transfer Consulting: How to leave a legacy without losing your sanity
  • Online Selling Solutions: Combine our rocket-science web design with 20+ years of award-winning retail ownership for online marketing and selling strategies that will help you make money on the web and in your store

Ante 4 Autism Poker TournamentDon’t forget the Third Annual Ante 4 Autism Texas Hold’em Poker Tournament at Binion’s (Downtown Las Vegas) on Tuesday, January 25, at 7:00 pm. Click here to register or donate online. All donations and $50 from each registration will go to support Autism Speaks, whose mission is to increase awareness about the growing Autism epidemic and raise funds for research, family services and advocacy in local communities and nationwide.

What happens in Vegas, stays in your head and makes life better when you get home.

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Thursday, January 13th, 2011

Snowed in? Here’s something to keep you occupied

While part of the Lively Merchant team is snowbound in Ohio, another part is sitting on a beach in Florida (the only state in the Union without snow). What’s wrong with this picture?

Whether you’re running low on bread and beer after the South’s worst snow event in 15 years or you live south of the Equator, here’s some recently publisher reading material to keep you occupied until you dig out:


Nine Lessons on Proper Use of Retail Authority

Nine Lessons On Proper Use of Retail AuthorityFurniture World Magazine  ::  by David Lively

Four men stand chatting causally in a golf club locker room after their round of 18 holes when a ringing phone interrupts their conversation. “Sure, I can talk,” says the man who answers the call. “You’re out shopping? That’s nice.” His eavesdropping friends smile knowingly at each other. “You want to buy that new living room and dining room group? Okay… and they’ll include the custom rug for an extra five thousand?  Sure, why not?” The grins grow wider among the listeners. “You want to book a week-long vacation in Hilton Head?  What’s that, they’re holding the price at ten thousand? Sounds like a bargain to me! Let’s go for two weeks instead!” Slowly, the smiles fade to expressions of envy. “And you want to give the builder the go-ahead for the new outdoor kitchen and pool? Fifty-five thousand if we say yes today? Sounds fair… sure, that’s fine.” The listeners exchange glances of amazement. “Okay, honey, see you later. I love you, too,” says the man as he ends the call. He looks slyly at his friends and asks… Read more


Essential Tool for Furniture Stores: Family Boards

Essential Tool For Furniture Stores: Family BoardsFurniture World Magazine  ::  by David Lively

“The father buys, the son builds, the grandchild sells, and his son begs,” goes an old Scottish proverb. The Americanized version says, “Shirtsleeves to shirtsleeves in three generations.” The founding generation starts with nothing, works hard and amasses wealth, but by the time their great-grandchildren have come of age, the family is back where it started: nothing. With business under such tremendous pressure and the furniture industry failure rate at its highest in over 25 years, it is useful to reconcile these timeless truths with what is going on in today’s family furniture businesses.

Do you recognize yourself in the stereotypical framework for the family business lifecycle? Read more



Family Affair

Family AffairFamily Businesses Are a Cornerstone of Furniture Retailing—Here Are Ways to Help Keep Them Thriving

Home Furnishings Business  ::  by Powell Slaughter

“With the transition from third to fourth generation, less than 5 percent of companies survive,” Lively said. “The numbers are the same transferring from sibling to sibling. Businesses just don’t get this. They think its only about writing a stock purchase agreement and transferring ownership.”

For his family business clients, Lively conducts an eight-step “Family Health-Risk Assessment.”

“We interview every family member, whether they work at the company or not, and any management within the organization who has decision-making capability, one-on-one, face-to-face,” he said. “Based on the results of those interviews, you have to deal with a lot of different issues—legal, financial and interpersonal. You have to line up the reasons why family businesses get themselves into trouble with the transition.”

Nine reasons typical reasons for trouble include… Read more

Hiring Digital Retail Furniture Employees

Hiring Digital Retail Furniture EmployeesFurniture World Magazine  ::  by David Lively

Have you ever read about a time when people believed the world was flat? Or when it was thought the sun revolved around the earth? Sure you have. Well, just as accepted truth about our physical world changes, so do our notions about doing business. In fact, the business landscape is littered with the carcasses of people who were certain they knew the truth… right up until the day they found out that they didn’t!

So that your furniture business doesn’t end up on that trash heap of out dated truths, you should take some time, before it is too late, to review the kinds of people you hire. Read more


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Thursday, December 9th, 2010

Why Don’t You Try This?

Dr. Howard Thurman was born in 1899 in the segregated South. In 1923, Thurman graduated from Morehouse College as valedictorian. He was ordained a Baptist minister in 1925, after completing his study at the Colgate Rochester Crozer Divinity School. He then pursued further study as a special student of philosophy at Haverford College with Rufus Jones, a noted Quaker philosopher and mystic. Thurman later earned his doctorate at Haverford.Colgate Rochester Crozer Divinity School
Dr. Thurman was then invited to Boston University, where he became the first Black Dean of Marsh Chapel (1953–1965). He was the first man person to be named tenured Dean of Chapel at a majority-white university. Thurman was also active and well-known in the Boston community, where he influenced many leaders.
While at Boston University Thurman would tell the story of a man on a journey who came to a town where no one wore shoes. It was winter time and all of the residents had blue and frozen feet, in some cases even bleeding from the snow and ice. The visitor asked the manager of the hotel where he was staying what the bizarre practice meant. “What practice?” the manager responded. The visitor pointed to the man’s bare feet. “Why isn’t anyone in this town wearing shoes? Don’t you believe in shoes?”
“Believe in shoes, my friend! I should say we do,” the manager replied. “A belief in shoes is the first article of our creed. They are indispensible to the well being of humanity. They prevent cuts, sores, and suffering.”
“Well, why don’t you wear them?” asked the traveler. “Ah,” responded the manager, “that’s just it. Why don’t we?”
Later, walking through the town the visitor inquired about a huge building he saw. “That is one of outstanding shoe manufacturing establishments,” he was told. “You mean you make shoes there?” asked the newcomer in amazement. “Well not exactly,” was the answer. “We talk about making shoes there and we have hired a brilliant young fellow to speak on the subject every week. Just yesterday his speech was so compelling that his hearers broke down and wept. It was powerful!” “But why don’t you wear shoes?” the visitor asked. “That’s just it … why don’t we?”
The story ends when the traveler discovers a cobbler making shoes in a little basement shop. He rushes in and buys three pairs as a gift for his new friend. The friend was embarrassed. “Ah, thank you,” he said politely. “But you don’t understand. It just isn’t done. We don’t wear them.”
Thurman’s story suggests, all too often the way things happen in our industry. There are ways of life everyone believes in but no one practices.
I’m confounded by the things that are said verses the actions that are actually taken. I see this often when working with family businesses on a regular basis and talking about the importance of planning the transition from one generation to another. Not everything is the same when it comes to generational communication or training. However, we often apply a one size fits all approach to training and development. In addition, training and development is most often looked at from a single direction, meaning the elder generation believes they have little to learn and that the junior generation must understand how things have always been before they can begin offering suggestions. This is a big mistake in today’s fast paced tech driven retail environment. At the same time the junior generation often fails to realize and take advantage of the wisdom, patience, and relationships that have been built during a lifetime of minding the family business.
Today’s family business consists of a diverse mix of up to four generations dealing with the same business issues. While there are countless names and descriptions for each generation, I would like to use Greatest Generation, Baby Boomer, Gen – X, and Gen – Y as examples here. I want you to consider from the perspective of training how generational differences result in poor outcomes if they are not taken into account.


Training can be designed to avoid miscommunication. But time-and-time again I come face-to-face with family situations that make me scratch my head and think, “That’s just it … why don’t we?”

Here are seven serious differences between the generations. Consider these factors to avoid a communication breakdown and ensure that important training and transition takes hold.
1. Scheduling and timing of training or workshops should account for the differences of generations. The Greatest Generation will arrive early and be ready to “go to work.” Gen – X’ers have the expectation that training will start and end on time. No exceptions. Baby Boomers will be on the lookout for social time during the session, and Gen – Y will be looking for things to start on time, but they might be late and will be looking for ways to get things done early.
2. During training, it is perfectly acceptable to use a lecture style when dealing with the Greatest Generation, while the most effective way to reach Baby Boomers is the use of team activities or teaching methods. The two younger generations prefer activity based training for Gen – X, and the complete use of technology for Gen – Y.
3. Acknowledgment of the participants from the trainer is import to both Boomers and the younger Gen – Y’s in the crowd. Interestingly, Boomers are more interested in hearing from the rest of the crowd how smart their input is, while Gen – X could truly care less if they receive any feedback at all.
4. Case studies are effective for each generation, but the way conclusions are drawn are entirely different. Gen – Y, for example, will want casual discussion to further talk through the studies outcome. Gen – X will simply find a “one solution” case unacceptable while Baby Boomers will want a more experienced version of the study; they aremerely looking for ways everyone might role play each role within the study. And finally the Greatest Generation are simply making sure their opinions and wisdom are included in any finding that comes from a study.
5. Each generation is looking for training to align with their goals differently. The Boomers want training to align with the company’s strategic goals, the Greatest Generation is looking at training as it relates to bottom line success, while X’ers are looking for alignment to mission. Finally Gen – Y is focused on matching values and positive image.
6. In terms of applicable outcomes from training, each generation is again looking for something different. Boomers want deliverables that ensure survival. Greatest Generation attendees are looking to add to their skill set mostly for fun. At the same time Gen – X and Y’ers are looking for skills that are transferable to other companies. Unless the younger generations are family members, they realize they will likely be working somewhere else in a matter of years.
7. As a trainer in a multi generational environment, you should expect very different feedback from each group. The Greatest Generation will be respectful of the evaluation process and will provide detailed comments when asked. Boomers will be looking for additional time in order to provide a true assessment of what they learned. Gen –X’ers will provide feedback to the trainers and the rest of the participants throughout the session. Their feedback will be direct, but not patronizing. Gen – Y’s will do the something, but they will expect praise for taking the time to providing it.

It’s important to realize that you have a very short amount of time to capture people’s attention when training or working in a multi-generational setting. Throughout the session it is important to take people back to the beginning and reconfirm the objectives. If the session is not going well, it is important to be candid and confirm you have not done a good job at drawing everyone in and setting a positive interactive tone. This is when you must ask for forgiveness and time to “re-group.” If the facilitator is sincere, this time will almost always be granted.
Remember one size does not fit all when it comes to clear communication. Use the skills of each age group to deepen understanding and build a company that places value in the diversity of generations. This is hard work in any setting, but especially difficult in a multi-generational environment.
The fruit of this effort is stronger family businesses and often stronger families. Just as the Jewish saying goes; L’Dor V’Dor!

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Wednesday, November 4th, 2009

Do you get personal?

Over 17 years ago, 1111111111 Bruce Springsteen belted out,

“You might need something to hold on to, when all the answers, they don’t amount to much, somebody that you could just to talk to, and a little of that human touch baby, in a world without pity.”

Today more than then we are all desirous of a human touch. Most fast, efficient online transactions are completely lacking human contact. The customer is shocked when you provide a truly personal online experience.

Does your site get personal with your customers?

  1. Call first time customers within a day of their order. Ask them for feedback and thank them for their support.
  2. Ditch the boring executive bios. Post profiles from the rank and file, the people who actually interact with your customers on a daily basis. Profiles remind your customers they are buying from people, not some corporation.
  3. Answer the phones yourself. Tell customers who you are and get their feedback first hand. You will hang up with loads of new ideas.
  4. Give to a worthy cause. Make sure you communicate specifically the people who benefit from your donations, so customers feel the connection.
  5. Include a picture of each customer service representative in their email signatures. Make it easy to remember they are dealing with real, caring people.
  6. Listen and respond to your customers via Facebook and Twitter. Don’t create social media outlets if you’re truly just looking for another way to push you offers down the throats of your online friends.
  7. Start blogging.

Have you ever been shocked by a company “getting personal” with you? Share your experience.

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Monday, October 19th, 2009

You can’t reason your way out of this

left-brain-right-brain

Ah, the good old days! Fact is, the furniture industry was successful in the 1950’s and the 1970’s and 1990’s. But “nothing fails like success,” says Gerald Nachman, cultural historian and founder of www.thecolumnist.com. Financial success turned our industry into a left-brain culture. Left-brain cultures are good at preserving old paradigms and programs, what Harvard Business Professor Clayton Christensen calls “sustaining technology.”

This works well when an industry is hitting on all cylinders. But when they slump, as is happening in furniture right now, left-brain cultures fail. In this industry’s case, we have tried to innovate by building lines that look exactly the same only cheaper because we believe the customer is only interested in price. Marketing departments scream louder and louder about unsustainable credit offers, and now we are trying to make cheap computers and bad bicycle give-a-ways the reason Ms. Jones should visit our stores. Leaders won’t implement technology, claiming the customer will not be interested in fully using it, and the result is bland brands and slow growth or dying retailers.

In his 2005 bestseller, A Whole New Mind, Daniel Pink says, “The future belongs to designers, inventors, teachers, storytellers—creative and empathetic right-brain thinkers” who exhibit “the capacity to detect patterns and opportunities, to create artistic and emotional beauty, to craft a satisfying narrative.” In every industry there must be right-brain thinkers. They’ll need promoted and will play a part in upending existing paradigms.

The cold reality is that left-brain cultures are a liability when it comes to innovation. These cultures are not bad—they’re simply not equipped to move forward. Left-brain cultures rearrange existing programs; they rarely allow systemic change. They claim today’s situations is really the same as it ever was.

3+2-5 is not an innovative way of saying 5-3-2. The sum remains the same: zero.

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Wednesday, October 14th, 2009

When the only tool you own is a hammer, every problem begins to resemble a nail

hammerThe last time paid newspaper circulation in the United States was at its current level, a new house was selling for $4,600, a gallon of gas was 15 cents and the average annual wage was $2,400.  Oppenheimer’s Little Boy and Fat Man were about to bring World War II to an end. Clearly a lot has changed in the past sixty-four years.

Unfortunately, furniture marketing is stuck in this mid-20th century fantasy land. Print media is still the dominant media choice for family-owned and family-run furniture companies. According to the 2009 ABTV industry watch report, the Top 25 sources experienced an average drop in sales of 10.4% last year.

According to this same report, “Marketing holds the hope for revival.” This is a scary proposition, because as the report points out, “In furniture companies, of course, marketing has traditionally been weak.” It goes on to say, “Even dire circumstances have not induced furniture companies to try to learn from other consumer goods sectors” (page 15).

Marketing in today’s environment is confusing and difficult. Retailers and suppliers alike are trying to find enough consumer money to keep the lights on. Marketing professionals are paddling beyond control to learn and implement emerging media in a way that benefits their clients.  At the same time, even the studies are confusing and conflicting. An example is a recent NAA (Newspaper Association of America) report stating these glowing claims:

  1. First quarter traffic to newspaper Web sites was reported as 73.3 million unique visitors (average per month) by Nielsen.
  2. That’s 43.6 percent of all U. S. internet users, up 10.5 percent versus the same time last year.
  3. Page views grew from 3.1 billion per month in last year’s first quarter, to 3.5 billion in 2009.
  4. NAA CEO John Sturm suggests these point to “digital success.”

But if we look at each of these “glowing” results in some context clearly the picture is not so rosy! Consider this information about the other side of the statistics:

  1. The top three news destinations on the Web (MSNBC, CNN and Yahoo!News) each drew more than half the unique visitors of the entire newspaper industry in March. Year-over-year, MSNBC grew 9 percent, CNN 4 percent, and Yahoo!News 16 percent.
  2. Yahoo! News alone gained 5.2 million unique visitors in March, or nearly 70 percent of the gain of the entire newspaper industry.
  3. Newspaper page views at 3.5 billion per month are less than one percent of total U.S. page views (386 billion in February).
  4. Time spent on newspaper sites in February, 43 minutes, 9 seconds per month per NAA/Nielsen, compares with total time online of 61 hours, 11 minutes and 56 seconds per U.S. person.  This means newspaper sites get the attention of the U.S. online audience just 1.2 percent of the time.
  5. The total U.S. online audience (what Nielsen calls the “active digital media universe”) in February was 167 million individuals.  As NAA does note, 43.6 percent of that audience visited a newspaper web site, but given that newspaper site traffic works out to only about 1.6 page views per reader per day, many of the newspaper site unique viewers are clearly represent one-time-only traffic.

This information is easily found with only a small amount of time and research. As the leader of your privately owned and mostly family run businesses, why there is NOT audible dull noise leading to an ear drum busting roar of insistence on getting best advice for every area of your media strategy?

The conclusion of the ABTV report and my point are exactly the same: “The furniture industry needs to reject the old formulas that no longer get results, to replace the old dogmas that have lost their meaning, to refuse to settle for mediocrity, and to insist on world-class performance. It’s the only way to survive.”

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Sunday, October 11th, 2009

What does the lady say?

What are your customers saying about you?The single most important number that directly impact your profitability doesn’t even appear on your financial statements: Customer Satisfaction. Our Ask Ms. Jones™ process provides you with prompt, actionable information so you’ll know exactly what your customers are saying about you, which positions you as a problem solving expert armed with answers that can laser guide your store to the top of the heap.

Our furniture-exclusive process, based on the Net Promoter Score (or NPS®), is a straightforward metric that holds you accountable for how you treat customers. The concept was first popularized through the book The Ultimate Question, and has since been embraced by leading companies worldwide as the standard for measuring and improving customer loyalty. It has gained popularity thanks to its simplicity and its linkage to profitable growth. Employees at all levels of the organization understand it, opening the door to customer- centric change and improved performance.

How to Calculate Your Score
NPS is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors. By asking one simple question — How likely is it that you would you recommend [Company X] to a friend or colleague? — you can track these groups and get a clear measure of your company’s performance through its customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows:

  • Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
  • Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
  • Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

To calculate your company’s Net Promoter Score (NPS), take the percentage of customers who are Promoters and subtract the percentage who are Detractors.

nps

This is not a traditional customer satisfaction program, and simply measuring your NPS will not lead to success. You’ll need to follow an associated discipline to actually drive improvements in customer loyalty and enable profitable growth. You must have leadership commitment, and the right business processes and systems in place to deliver real-time information to employees, so you can act on customer feedback and achieve results.

Read more at netpromoter.com… or if you are ready to Ask Ms Jones for the nitty gritty truth of how you are doing, sign up now.

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Wednesday, October 7th, 2009

Buy Me Some Peanuts and Crackerjacks

baseballIn this morning’s New York Times I was struck by recent purchase of the Chicago Cubs and Wrigley Field by the Ricketts family from TD Ameritrade fame.

This reminded me of furniture store stories for several reasons. The Cubs haven’t won a World Series for 101 years, Wrigley Field is the second oldest ball park in MLB and the Ricketts family made all of their wealth changing the rules of the stock trading industry. This same juxtaposition is taking place right in front of us in our industry daily.

Opportunity abounds. Our 100 year plus casegoods and textile businesses are dying painfully. New ideas for design, distribution, pricing, etc. are presenting themselves daily. At the same time, the hanger-on-ers continue to hang-on. Old thinking is sucking the life from many.

The Cubs and Wrigley were both owned by the same company, The Tribune Co., which is operating under bankruptcy protection. So is the Los Angeles Times and several other recognizable newspapers. Furniture stores continue to typically spend over one-third of their marketing budgets using this failing delivery vehicle.

Paid content news providers are growing by more than 25% annually. Aggregation websites such as Fark, Boing-Boing, ebaumsworld, CollegeHumor and Digg, and the sheer filtering efficiency of social networks do a pretty good job of separating the wheat from the chaff. Online search is now part of nearly every furniture purchase cycle, reportedly reaching 95% during the last twelve months.

So, who will be the Ricketts family who changes the furniture landscape in the coming years? It will be the folks who laugh out loud when they read quotes like this one by Elbert Hubbard, “Parties who want milk should not seat themselves on a stool in the middle of the field in hope that the cow will back up to them.”

Bob Garfield, Robert Picard, and Greg Stielstra are all making the case that we have entered the post-advertising age. How are you allowing your customer to engage with your company? How are you answering her concerns on her terms? What have you provided as a communications platform to allow her to tell you how you are doing?

At The Lively Merchant we are focused on the future. We won’t waste you money on pie-in-the-sky wild ideas. More importantly we won’t waste you money on nearly worthless newspapers just because it is the way it’s always been done.

I haven’t passed a horse and buggy on the highway recently. Have you?

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Monday, September 7th, 2009

“How To Make Your Website Really Sell” Entrepreneur Magazine interviews The Lively Merchant

Check out this excerpt from “How To Make Your Website Really Sell” in the September, 2009 issue of Entrepreneur Magazine featuring David Lively:

Be sure to post toll-free phone numbers and e-mail addresses on every page, as well as fields for visitors to submit questions, says David Lively, whose Ohio consulting firm, The Lively Merchant, specializes in retail sales. Glickman says retail sites should also allow visitors to calculate shipping costs early in the purchase process so that they aren’t ambushed at the conclusion of the transaction.

The ability to send automated responses to visitors who have reached the shopping cart is also critical, Lively says. “You want to be able to send auto responses that correspond to the exact point where a customer exits the shopping cart before purchasing, a communication that says, ‘We saw you were considering purchasing so-and-so product. If there are any questions we can answer about that product…’”

Whether you sell generic widgets or provide a highly specialized service, your efforts are more likely to bear fruit if your prospects perceive you as a benevolent authority in your field.

To that end, Lively says, a well-written, informative and regularly updated blog not only can boost credibility, it can also hold visitors’ interest and reengage them in the shopping experience. Read more…

How to Hold a Hot Lead by By David Port   |   Entrepreneur MagazineSeptember 2009


Make the essentials accessible. The company phone and e-mail should be prominent on most every page of a site, says Jay Bower of the Crossbow Group. Sites with a shopping cart should also provide ready access to privacy policies, return policies and shipping info.

Don’t demand too much information. “Only ask a customer or prospect for information you really need,” advises retail sales consultant David Lively. “Long forms are a source of frustration.”

Let them buy first, join later. It’s important to give customers an opportunity to open an account, but only after the close, says Dave Nevogt, owner of e-tailer PurePointGolf.com.

Remember: Less is more. “It’s a Facebook-driven world right now,” says Bower. You don’t want a site that looks text-heavy.

Function well with any browser. The best sites accommodate all visitors similarly, whether they arrived via Safari, Explorer or Firefox.

Be original. Don’t use a common template. Dare to differentiate with a site that looks and feels like no one else’s, says David Gass, who heads Business Credit Services.

Keep the site fresh. Regularly update your content, graphics and so on, and don’t be shy about trying new stuff on your site (a blog or video, for example).

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Wednesday, August 26th, 2009

Using Your Head

business owners have to use their heads in order to compete in today's world

Business owners have to use their heads in order to compete in today's world.

As I talk with a business owners of all sizes, and they explain how their hands are tied in moving forward with an internet strategy. They believe they are doing the best they can under the circumstances, of course, but really there are departments in their organization that need to be protected, prices that need to be kept, sacred cows that can’t be touched. “After all,” they argue, “why should I wipe out my current business just to succeed online?”

This dogged thinking is great, unless your competition decides differently.

When you have someone who is willing to accomplish THIS without worrying about THUS and SO, they will likely defeat you. Online, this happens fast, since there are organizations that are willing to grow at the expense of revenue, ethics or reputation. In your short term, being focused may be a real advantage.  Sometimes, focusing on accomplishing just one thing (whatever it is) pushes a business through this recession or  that far ahead pothole. But at what expense? The competition makes a ton of money and you’ve lost forever.

Retailers, vendors, suppliers, factory branded stores, chains, regional players, local independents, Top 100’s, Mom-n-Pop’s and every other nook and cranny of our industry need to think hard about this before it’s too late

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