Variety is King of Sales

At our small business, a Lotto outlet, we sell scratch cards i.e. cards that you scratch to reveal money prices that you can either exchange for cash or purchase more cards to scratch. Price is P50/card for the Diamond Dazzler & Cash Extravaganza and the rest are sold for P20.

They go by names like Go Bananas, Cash Extravaganza, Lucky Pick, Sargo Eight Ball, Pera sa Baul (which is Tagalog for Money in the Chest), Bee Lucky and many more.

Some people say focus on a few product variations to hold down inventory costs. I want you to look at the following situation as it challenges the Limited product concept:

1. When we started, we had only 4 kinds of cards. Now, we have about 15 kinds of cards.


(Picture shows a sample of the many kinds of PCSO Lotto Scratch It Cards that is the craze among Lotto patrons)

2. My supervisor noticed that sales is better when our customers have a choice of all 15 kinds. When we are down to say 10 as when we have ran-out of some card types, sales is less.

3. Seems like our customers want to see many choices even if invariably they only play 2 or 3 kinds per day. Think about that.



(For the Knockout Scratch card, find the pic of a Boxing Glove and win the amount below)

The Cost of NOT PAYING FOR A GOOD LOCATION

Every business startup goes through this, much more so for a small business like our Lotto Outlet. We have all heard the saying LOCATION. LOCATION. LOCATION. But what if we already have a location and are already operating our small business and then suddenly, A NEW AND BETTER LOCATION COMES UP. What do we do? Read on:

Try to imagine this layout as I don't have a sketch (hay): Between Mall Entrance 1 and 7, there are food restaurants, namely Resto A, Jollibee, Resto B, Resto C and McDonalds. Entrance 1 is the highest pedestrian traffice entrance to the mall while Entrance 7 is the lowest traffic. After sometime, Resto A closed shop as their food fanfare did not suit the mall type of clients.

1. The road fronting the two entrances is a Main Thoroughfare but all public buses and jeepneys stop in front of Entrance 1, hence the reason why Entrance 1 has the highest traffic.

2. Even at great expense, I feel McDo should transfer their operations to the site of Resto A to take advantage of the heavy traffic.

3. They did not. KFC did. And now, KFC is siphoning the eaters from the other restos except Jollibee,

4. Jollibee still kept its traffic despite being beside KFC is that Jollibee is popular to kids and as we know, parents follow whatever their kids want.

5. For adults, KFC tops McDo, I think.

Let me know what you think of my analysis.

Warning against Counterfeit Money

Today I was advised by Mall Security to warn my Crew not to entertain persons who present P1000/P500 peso bills to be exchanged for smaller bills. A Fried Chicken Restaurant was just victimized.

Things to remember about Counterfeit Money:

1. Having a Money Detector (UV Light) used to illuminate the Marks on the peso bills IS NO GUARANTEE YOU WILL NOT BE A VICTIM as the counterfeit peso bills are so good that they also have the feature showing the Illuminated Marks!!

2. That same teller also told my crew and myself she no longer uses (Relies) on the Money Detector anymore (Her money detector is kept under her counter) and instead, RELIES ON THE FEEL OF THE BILLS to tell if the security paper used is genuine. (This skill can only be learned after handling thousands of bills day-in/day-out)

3. The genuine peso bill has a ribbon on the right side that changes in color when shifted under the light whereas the Fake money only has one color.

4. The pictures of the public figures on the face of the fake money bill appear cartoonish and rough as compared to the genuine peso bill especially when held under a bright light.

5. The feel of the paper of the Fake Money does feel right (some say it feels thinner, others say it feels like ordinary bond paper).

6. The green color on the P200 peso bill appears too bright or maybe a different shade of green from the genuine P200 peso bill.

7. Even Philippine Coins are being counterfeited and that is why some stores have resorted to having Magnets on hand. (Fake coins will be attracted to the magnet)

8. The opinion of our bank teller friend is that the counterfeiter are getting better and better and the above defects will in time disappear as the counterfeiter improve their skills.

The bank where we do business with said that on average, they encounter fake money 2 or 3 times a week!!

It's so hard to make a sale only to find out you just got robbed.

A Hearty Meal but NOT a Hearty Experience

I was so hungry as it was already past 1pm and my stomach was beyond grumbling. After scanning the various food chains hawkiing burgers, fried fanfare and other High-Cholesterol delights, I decided on a popular roasted chicken chain and selected their Hearty Meal (1/4 Roast Chicken, Fresh Fruit Salad, Green Vegie Salad, piece of Muffin & an Upsized Iced Tea - Lite to boot all for P195 which looks kinda pricey but hey, its billed as Healthy.

And now for the Customer Service Experience to make the meal MEMORABLE:

1. I had to stay in line for a while while the cashier was punching somebody else's order even if I was the one in line and when finally it was my turn, she could not get the paper tape to come out;
2. Service was quick as it took only a minute or two from the time I managed to get a seat when the waiter arrived with my order;
3. Food Presentation plays a role and in this case, NOT GOOD as the Lettuce were wilting and the leaf ends were blackening already;
4. When I sliced the Muffin, it crumbled which meant it was dry (maybe a day old or over-baked);
5. I asked the waiter for additional dressing and he said that will be at an Extra Charge. I wanted to say that when I was served, the tiny plastic container with the dressing was half-filled. Oh well, I declined.

The Chicken tasted great but I was looking for a Total Customer Experience and somehow I did not feel I got my money's worth due to disappointments that could have been avoided by the business owner.

All Small business entrepreneurs will have to make sure it is not so much as coming out with a good product that counts but that our customers have a MEMORABLE & PLEASURABLE TOTAL CUSTOMER EXPERIENCE from the time they enter our store to the time they leave our premises.

Alledged Budol-Budol Perpetrators on the Prowl

SMALL BUSINESS OWNERS BEWARE !!!!!

Just learned this afternoon from my Crew that Mall Security has put under surveillance for the past 4 days a heavily-built man and a woman who have been observed hanging around my store and asking inane (senseless) questions from my operator.

Mall guards suspect that the couple is part of a Budol-Budol Team out to swindle money from salespersons through the use of hypnotism and/or as a swindle team wherein one poses as an demanding customer while the other attempts to distract the operator's attention by causing a raucus. Here is how it is done:

1. Under the Budol-budol scheme, salespersons (under a hypnotic spell without their realizing it) have been known to fork-over the cash sales to the thief without even knowing why.

2. In the case of the 2-man swindle team. the man posing as a customer will pay using a big bill (P1,000) to pay for a P10 Lotto bet while at the same time asking the Lotto operator to break his other bills into smaller denominations. At that point, the other man/woman cause a raucus that distracts the operator to the point that she gives change money without actually receiving any payment yet.

Best is not to look straight in the eyes of any customer and not to answer questions when they notice they are of an inane or senseless nature. Report immediately to Mall Security such persons.

How Do People Pick Their Lucky Lotto Numbers

We have been operating for almost 2 years and it never fails to amuse me to observe how my customers pick their Lucky Lotto Numbers. Let me share you some :

1. Birthdays of kids and wife in that order.
2. Lucky Pick (or Quick Pick for you USA Lotto players)
(One customer told me that after betting his wife's birthday the
last 6 years and not winning anything, he gave up and now relies
on the computer-generated Lucky Pick instead)
3. Plate number of a tricycle ( a motorcycle outfitted to carry 4 or
more passengers) that was involved in an accident.
(This customer won the EZ2 game. Talk about profiting from
disaster)
4. A customer told me that there are Active Numbers, Bad Numbers
as well as Lazy Numbers.
5. Another has a chart showing the frequency and time of draw of
all the numbers played. (Whew!!!!!)
6. Any number that the bettor comes across be it the numbers on his
restaurant receipt, house numbers or whatever number he sees.
7. 9-11 is a popular combination betted regularly.

How Do People Pick Their Lucky Lotto Numbers

We have been operating for almost 2 years and it never fails to amuse me to observe how my customers pick their Lucky Lotto Numbers. Let me share you some :

1. Birthdays of kids and wife in that order.
2. Lucky Pick (or Quick Pick for you USA Lotto players)
(One customer told me that after betting his wife's birthday the
last 6 years and not winning anything, he gave up and now relies
on the computer-generated Lucky Pick instead)
3. Plate number of a tricycle ( a motorcycle outfitted to carry 4 or
more passengers) that was involved in an accident.
(This customer won the EZ2 game. Talk about profiting from
disaster)
4. A customer told me that there are Active Numbers, Bad Numbers
as well as Lazy Numbers.
5. Another has a chart showing the frequency and time of draw of
all the numbers played. (Whew!!!!!)
6. Any number that the bettor comes across be it the numbers on his
restaurant receipt, house numbers or whatever number he sees.
7. 9-11 is a popular combination betted regularly.

Help!!! I Can't Think of Any Business Idea to Start

Have we found ourselves in a situation when we tell ourselves "I CAN'T THINK OF ANY BUSINESS TO START" and how much we hate ourselves. Even now, I find myself ofter in that kind of a situation.

Here is a list of reasons why our mind is BLOCKED from thinking of any small business to start:

1. I don't have money to start a business.
(If you don't know what business, how can you say you don't have
enough money for it?)
2. I can't afford to risk my meager funds and I need a SURE THING.
(Except death and taxes, there is no such thing as a SURE THING)
3. I got burned (in Tagalog, napaso na ko) in my last business.
(Colonel Saunders failed more than a thousand times before KFC
Kentucky Fried Chicken was born)
4. I don't have time to think or am too tired to think of a small business.
(Time is the only thing we have control of. We just have to choose
what our priority is)
5. I don't anything about starting a business.
(Asking somebody is always FREE)
6. I miss the 15th and 30th safety of a regular salary.
(You are sure to get a salary every 15th/30th but you are also sure
that your salary will never be what you want to earn)

I do realize that when you are faced in a situation when you see hunger in the faces of your kids or you feel so depressed as you feel so helpless like the world is against you, your mind cannot think anymore and reasoning does not mean anything to you. Panic sets in.

I agree that people would say "That's easy for you to say because you are not in my situation. That is true but if we just give up, then let's just wait for the end to come.

A Private Swimming Pool along the Highway

Manila is melting the HEAT. Yesterday was the HOTTEST DAY IN THE METRO AT 38 degrees CELSIUS!

This has led to people to look for innovative ways of having that Private Swimming Pool that only the Rich and Famous have, even if one does not have a place for it .

I took this pic while traveling along North Avenue, a main Highway Artery in the heart of Quezon City, capital of the Philippines.

Business Networking 101

I think as part of any College Business Course, Business Schools should make Business Networking 101 a required subject.

Many books have been written about the value of Networking and many have recognized the axiom "It is not what you know but WHO YOU KNOW" that determines your success in business (and even for your personal life).

Why should we network?

1. In a highly-competitive market where there are many suppliers of that same-quality product, it will be your Business Contacts that will GIVE YOU THE EDGE over your competitor.
2. There is no such thing as SUPPLIER LOYALTY. (You may be a good supplier for many years but if another supplier comes along with similar quality and expertise but at a lower price, you can expect your CUSTOMER TO SWITCH. It will be your relationship with the customer that will save the day)
3. You have a product but do not know whom to sell it to BUT YOUR BUSINESS ASSOCIATE MAY KNOW SOMEBODY who may need it.
4. A Company has a Big Order for a certain Product and several offers have already been received. Unfortunately you need time to source and prepare your bid. It will be your acquaintance with the Purchasing Manager that will allow to hold-off the awarding until you have submiitted your offer too.
5. In his book, Napoleon Hill spoke of a meeting with Mr. Andrew Carnegie, one of the richest industrialist in the USA, in which Mr. Carnegie said something to the effect that he does not know everything but he surely know somebody who does. And that can spell the edge in losing a business opportunity or winning it.
6. You may meet a person in a particular field that for now may be of no use for you but may prove highly valuable in the future when a requirement presents itself to you in the most unlikely place and time.

Business Networking is all the more important for the Small Business owner as he does not have deep pockets of cash nor can he afford to chase all business opportunities available out there.

Business Opportunities - Wish All Days were Like This

Today, I had a meeting at Shakey's Manila with a long-time friend and fellow Logistics colleague and I expressed my desire to look for possible avenues for small business. The meeting, though short, was filled with Business Opportunities, to wit:

1. Contract manufacturing of Food Products as House Brands for supermarkets
2. Contract manufacture of a New Food Product Line for an established Meat Processing Company in Manila
3. A possible supplier of High-volume T-Shirts for a Uniform order that I am currently negotiating
4. Source of warehouse storage space in Davao and Cagayan De Oro Cities in Mindanao Island (south of Manila)
5. Freelance agent for Construction Materials (Roofing and Tiles)

Because I serve as conduit for the demand to meet the supply, it fits exactly my role as a small business entrepreneur.

Wow! Days like today could only come from Him above. Thank you so much.

On Hiring Relatives

When you are just starting out a small business, the entrepreneur faced with the dilemna of whom to hire, a relative or an outside-the-family person:
1. With a relative, I, as the blood-related small business owner can surely trust them (debatable?)
2. It's cheaper to hire relatives (especially when one is just starting the business & budget is tight. Besides, save on wages & use the cash to purchase inventory to sell)
3. The small business owner can always pile on the tasks to a relative (multi-tasking is the bussword) but an outside hire will only do what you told him/her to do at the time of hiring
4. My In-Laws expect me to hire their chosen relatives as I, the small business owner, has the power to make it happen
5. But isn't it easier to fire an outside hire than a relative??????

Have we not heard the saying " You can choose your friends BUT YOU CANNOT CHOOSE YOUR RELATIVES?"

To Partner or Not to Partner?

At the start of a business or when a business opportunity presents itself, a small business owner would have pondered over this question.
What if you did your homework and found the business opportunity to be sound but you are short of cash, would this be the best time to seek a partner?
Take for example this situation and tell me what you think?
1. Partner A has close ties with the Purchasing or Procurement dept manager as well as the department end use of a product that you intend to supply and advised Partner B of the business opportunity
2. Partner A is well-versed in the prospect's Bid Process
3. Partner B does most of the grunt work like
a. Search for suppliers & negotiate the best price
b. Handles costs of communication between the suppliers,
company end-user, purchasing dept as well as keeping
Partner A updated in the transaction
c. Transportation and meal expenses are borne by Partner B
as he is the one with his own personal car (though Partner
A agreed to offset the costs against the project's income
d. Prepare the quotations, emails and other Back Office work
4. Profit will be shared equally minus receipted and agreed expenses

Would you consider this a fair and equitable partnership?

My take is that if I need to increase my business income, I would consider this to be FAIR considering that if Partner A did not advice me of the opportunity, I would be earning ZERO PESOS.

Is Skill better than Trust?

Being in a small business that requires my staff to handle cash, I would go for Trust over Skill (or work experience).

I firmly BELIEVE THAT SKILL CAN BE LEARNED BUT TRUST CANNOT. It is either I trust the person or I don't!

Many will shudder at the long learning curve (and its attendant cost of mistakes) as compared to hiring an adept employee but whose Trust Factor is not yet proven. They would say ' we will just put the necessary safeguards to ensure nothing is lost". But isn't prevention better than correction especially in a small business enterprise that is surviving on a slim margin and tight budget?

What do you think?

It's Lonely at the Top

How many times have we heard this? Do we really know what it means?

On one hand when business is good, you as the owner, top honcho or The Boss, gets to keep all the profits and it certainly is a nice feeling. But when things go negatively the other way and you need to make painful decisions like firing your best staff, cutting back on the airconditioning and the free meals or some such other unpopular moves, you wish you had somebody supporting you or at the least, understanding why you have to do it but alas, there is no one there guarding your back.

Such is the lot of the small business entrepreneur and the sooner he realizes he has to do it, the better for the small business, In the end, it is hoped that the small business entrepreneur made a good call and the company will come out stronger and ultimately, the people, at least those remaining, will understand.

It's My Birthday!!!

Am getting old and really older and hopefully wiser. Here's a List of the Great Gifts I received-----
1. Today, May 18, my birthday, a new client asked me to source for their company 3 units of Dental Air compressors (What a headstart to start a new business relationship!!!)
2. Submitted samples of T-Shirt to be used by my client's field personnel and reassuringly, my contact chose the Class A sample to present to her boss
3. a set of Bench boxer shorts & Dickie's socks aside from a card with a smattering of english written here and there from my operator (she had to use an english-tagalog dictionary and its probably the first time she gave a birthday card and gift-wrapped the gift in HER WHOLE LIFE)
4. Was able to talk to my daughter who is now abroad twice in a week and to me those minutes were worth more than gold
5. She did send me an expensive Sony digicam and have been using it every day since it arrive a couple of days ago
6. I received a nice molecule shirt (that fits!) from my friend who I know is so hard up that she needs to go out every day in search of a way to earn but she still went out to get me that shirt
7.I got also a Bench Shirt from my supervisor who is also very sick and very hard up financially too but spent her precious few pesos to get me something for my birthday
8. Last Sunday, i treated everybody (mom. 2 sis, my sis' husband & son) at the Jolibee Burger chain. It is very rare for us to be complete.
9. My sis did not get me a physical gift but instead a) did not go home to Tarlac, a province north of Manila) and b) had her husband and son take the early morning bus to Manila just so we can all be together on my birthday (or 3 days earlier)
10. My other sis got me also a Bench shirt and fantastic, it fitted ( I always teased her about her ability to size people up)
11. I attended the 6am church service and a lady gave me a rose to offer to Mother Mary
12. The above business in Nos. 1 & 2 would not be possible if my Lotto customer who became my friend did not offer to take me in and share her business with me. Another blessing is that her contact for the TShirts happened to be the mother of my dentist. What a small world we live in.
13. 13 is supposed to be an Unlucky Number but to me it is not as Gift Nos. 1 to 12 would not be possible without God whom I cannot thank enough for making it happen.

What it means to Own a House

I remembered 25 years ago on the relief that I got when I finally moved in to my one-storey 3BR house---- it was simply heaven.

No more dreading every end of the month when the landlady/lord would come to collect the month's rent. No more having to move out every so many years to another dreary apartment and watch all your sentimental stuff accumulated over the years get lost or damaged after each house transfer.

My house sits on a 192-sqm lot which during the 80s was considered tiny. Now, you can see Row Houses (aka Barracks) sitting on 30sqm, house and lot on 40sqm and so on. I mean, house and lot packages going for a couple of million pesos where really really tiny. But never mind, so long as one can now have roof over his head that he call his own, nothing else mattered.