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Small business need help
Question:
Hello, Gurus Maybe some of you are interested in trying to help a small business located in Brazil, some 5.000 miles away. If so, here’s some data: 1 – It’s a service franchise, mostly for women, kind of beauty parlor. The franchiser is lousy; the franchisees are going the lawsuit way. 2 – ALL the franchise stores in the country where you have some winter (Brazil is mostly a hot country) are doing bad. Most of the ones located in non-winter areas are doing better. 3 – However, many competitors (independent stores, even in cool areas) are doing well. So, it’s above all something wrong with the brand/product. I will keep it short as this; if someone is interested in helping, pls post your questions and I will try to answer them. Thanks for your help. — Jorge Omar Technical solutions when change is the steady-state
Response:
:Maybe some of you are interested in trying to help a small business :located in Brazil, some 5.000 miles away. Hello Jorge: I’m very tempted to relocate to Ipanema Beach, but just don’t *relish* the thought of having a hot dog cart as a means to becoming an emergente <g> :If so, here’s some data: : :1 – It’s a service franchise, mostly for women, kind of beauty parlor. :The franchiser is lousy; the franchisees are going the lawsuit way. :2 – ALL the franchise stores in the country where you have some winter 
Brazil is mostly a hot country) are doing bad. Most of the ones :located in non-winter areas are doing better. :3 – However, many competitors (independent stores, even in cool areas) :are doing well. So, it’s above all something wrong with the :brand/product. Why are the competitors doing well? Is it a question of a bad brand/product? Or lack of support from the franchiser? Where are you in all this? What’s your interest? What about buying out the franchiser? Introducing or franchising a competitive brand/product? If the brand is weak, what’s stopping you from going independent? — ROI Marketing www.nijenrode.nl/mbmm/roimarketing An association for marketing consultants, a service and directory for business
Response:
Hell, John [we had a backbone blackout here in Brazil for 46 hours and I've found your posting in Deja News]
:>Maybe some of you are interested in trying to help a small business :>located in Brazil, some 5.000 miles away. :>If so, here’s some data: :>1 – It’s a service franchise, mostly for women, kind of beauty parlor. :>The franchiser is lousy; the franchisees are going the lawsuit way. :>2 – ALL the franchise stores in the country where you have some winter :>(Brazil is mostly a hot country) are doing bad. Most of the ones :>located in non-winter areas are doing better. :>3 – However, many competitors (independent stores, even in cool areas) :>are doing well. So, it’s above all something wrong with the :brand/product. :Why are the competitors doing well? Is it a question of a bad brand/product? Or :lack of support from the franchiser? That’s a big doubt. The brand is unknown, per a simple market research I’ve done. There is/was not franchiser support. Customers are invited to fill a questionaire when they finish the service and we are classified good or excelent in service by 75% and in personal rapport excelent for over 85%. However, they seldom send in their friends (return by ex customers is not to be expected before 6 months; however, they hardly return). I just can guess about competition, but I think it’s mostly a matter of personal rapport/status or other untangible value. Prices are about equal for the same service, our being some 10% lower. Discount campaign during winter did not work. :Where are you in all this? What’s your interest? Well, I bought one franchise for my wife ))-: :What about buying out the franchiser? Introducing or franchising a competitive :brand/product? No money for that. :If the brand is weak, what’s stopping you from going independent? Practically we are. All that’s left of the franchise now in my state is that the franchisees are doing cooperated advertising and we meet from time to time to exange ideas, but that simply isn’t enought. NONE of the francisees over here have a past of trading to the feminine market, so there’s no real guidance. I’ve tried hiring a women market consultant, but she spoke too much and did too little… Thanks for the interest. P.S. My area of work is telecom and computers… Jorge The opinions expressed here are from my employer (-:
Response:
Jorge, You’ve done simple market research. Good move. But you didn’t find the answer, which means you need to do more. ***No one on this board can tell you more than your own customers.*** In the States, it’s quite a challenge to design a survey instrument that works. In part, you have to account for the fact that people like to please: in general, people give fewer negative comments than they would really like to, unless they are angry. Perhaps this phenomenon is stronger in a Latin, more people-centered culture; but perhaps not, I don’t know. Everything depends on finding out more from your customers and competition. So try everything you can think of. Call everyone who has not been back for six months (time to dig out those old appointment books). Be clear, up front, that you’re not trying to sell anything. Ask where they are going instead. Ask why. If you see one name coming up often, go there yourself, or send the wife. If people won’t answer your questions, try different tactics. Pretend to be doing market research for a hair product company. Offer free coffees or lunches or candy or sponges or anything else you can think of. Keep trying until you find a technique that elicits answers, then use that technique to lead your next call. In any case, make sure you include visits to your competitors. Don’t be afraid to steal everything they are doing that works. Remember, only your customers can tell you how to succeed. Best of luck. SNIP :> Why are the competitors doing well? Is it a question of a bad brand/product? Or :> lack of support from the franchiser? : That’s a big doubt. The brand is unknown, per a simple market research I’ve : done. There is/was not franchiser support. Customers are invited to fill a : questionaire when they finish the service and we are classified good or excelent : in service by 75% and in personal rapport excelent for over 85%. However, they : seldom send in their friends (return by ex customers is not to be expected : before 6 months; however, they hardly return). I just can guess about : competition, but I think it’s mostly a matter of personal rapport/status or : other untangible value. SNIP
Response:
Hello, Akakan
:Jorge, :You’ve done simple market research. Good move. But you didn’t find the :answer, which means you need to do more. ***No one on this board can tell :you more than your own customers.*** Ok, I’m trying to do that. :Everything depends on finding out more from your customers and competition. :So try everything you can think of. Call everyone who has not been back :for six months (time to dig out those old appointment books). Be clear, up :front, that you’re not trying to sell anything. Ask where they are going :instead. Ask why. If you see one name coming up often, go there yourself, 
r send the wife. If people won’t answer your questions, try different :tactics. Pretend to be doing market research for a hair product company. :Offer free coffees or lunches or candy or sponges or anything else you can :think of. Keep trying until you find a technique that elicits answers, then :use that technique to lead your next call. Will do that. :In any case, make sure you include visits to your competitors. Don’t be :afraid to steal everything they are doing that works. I’ve done that twice. There are two main differences: – The ladies in our sites get individual treatment in closed bays. In the competition, it’s a big saloon where they stay "at easy", only in underwears. – They are very aggressive at sales – like "Mam, I will not let you go with that flacid belly of yours" or equivalent. Some people will accept it, some won’t. This info was from a lost sales (by them)… :Remember, only your customers can tell you how to succeed. Best of luck. Thanks for your help. Jorge The opinions expressed here are from my employer (-: