The Gilman Company Blog

Value Entertainment and the Video Game Industry

Entertainment is a recession oasis. No matter how bad things might get, entertainment will happen and consumers will pay for it. That doesn't mean that consumers aren't looking for a good value for their entertainment spending.

One of the strongest retail entertainment segments is video game sales. According to the Wall Street Journal, Gamestop has done surprisingly well, even in light of the recession. Why? Video games are a cheap form of at-home entertainment. But why Gamestop and not other video game retailers like Wal-Mart and Gamestop? Because Gamestop is focused, caters to gamers and has the ultimate cheap skate weapon: they buy and sell used games.

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"Luck In"

How many projects do you have set to "luck in?"

A luck in is like fishing with more than one pole, like betting on two horses in one race, knowing that something will give. Increasing the number of working sales channels or points of contact online is a way to increase your chances. Lucking in isn't the most difficult approach to generating more leads, making more impressions, or making new contacts. Just look at the elements you already have in place and increase them exponentially.

You're already fishing. You might has well have another line in the water.

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Consumers Spending Solid on Some Low Ticket Products

How are some companies that produce low ticket items showing such strong results, even in a down economy. They're raising prices by single digit percentiles. Turns out that consumers are less concerned about low tickets than they are about big tickets and consumers will certainly feel the financial relief of skipping on big ticket items as opposed to low ticket comfort oriented products.

The Wall Street Journal recently reported that Nestle has shown very strong results by adjusting prices upward in various markets worldwide by rates between 6.8 and 8.4%.

At least one way to get into the low ticket product market, if you're not already there, is to un-bundle some combination type products or look for low-cost products or services that are in your category and that your current marketing and sales channels can easily support.

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Speak With One Voice

Some companies touch their prospective customers several times every day. Others, once a week or once a month. However often it happens and regardless of whether your front line consists of 1 individual, 100 or several thousand, whether it's voices or billboards, every impression should have a unified voice. That voice should penetrate your company culture and as a leader in your company, you should typify that voice as well.

Not sure what your voice is? Take a look at your mission statement. Don't have a real mission statement or your mission statement doesn't quite fit or embody your vision...

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The Paycheck Cycle: Yeah, It's Important Now

With the economic downturn, more and more Americans are living paycheck to paycheck. Here, retailers are likely to experience spikes in sales based on when workers generally get paid.

That said, this may be a good time to consider responding to cyclic consumer spending. This could include restocking issues, merchandising, the delegation of HR resources, cash flow planning and facility considerations. For companies with advanced marketing channels, the timing of certain marketing campaigns should be carefully considered.

Not directly involved in retail? Maybe you're on the service, distribution or wholesale side. For service, the concept remains the same. Consumers spending is not steady, so there will be more demand on services when consumers get paid.

If you're on the wholesale or distribution side, then you should be very concerned about the retail side. Offer your buyers options that are sensitive to cyclic consumer spending. If nothing more, let your buyers know that you understand cyclic spending and your ready to meet changing needs in merchandising.

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Forewarn the Voicemail

Customer shoes. You have them on. You wear them all the time. You call and you're talking to a person who can't help you beyond directing your call. You go to a dead end voice message system.

Let callers know they may be going to a voice mail system before they are sent on their way.

Even better, offer an alternative if the customer happens to get voice mail after being transferred. Even if it's just, "If you happen to get a voice mail, feel free to call us right back or press zero if you need immediate help and I'll find someone," that's a world better than nothing.

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Hardcore Post: Change Everything

Want to be more than a contender? What will change everything in your industry? Do that.

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New Topic Alert: Customer Service

Pretty much everyone doing business on the right side of the law (perhaps some on the wrong side too) is 110% committed to excellent customer service. But what makes good customer service? What makes superior customer service? What's the difference between customer service and lip service? How do you manage the cost/benefit ratio (good customer service can be expensive)?

Enter the all new TGC blog category, "Customer service." Look forward to more lavishly valuable posts that will give some food for thought on customer service and many inside tips.

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Price Slashing to Regain Market Share

It's what happens when there are no other options and your competitors have gotten the best of you through products or services that are more compelling to customers. It also happens when it takes you too long to react to shifts in the market or shifts in your industry. It's what happens when it's too late to throw more money at customer service.

If you have the cash to weather a price slashing frenzy long enough to lure some customers back, price slashing could be a viable solution. But, unless you plan to reposition your company as a discount supplier, work on getting back into the fray with your competitors by developing innovative and compelling products or services. Work on re-building the image of your company as an innovator and supplier of compelling products.

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Shot in The Arm or Sustainable Infrastructure?

How can I increase sales this month?

What type of promotion will my customers respond to?

How can I spin this downturn to my clients?

Especially now, many companies are stuck with a "shot in the arm" approach to moving forward or mitigating the downturn. This is not to say that the idea of enhancing sales, productivity or efficiencies can't benefit from a shot in the arm. But recognize this approach for what it is.

If it's done right, a shot in the arm marketing strategy can be a pain reliever or a temporary boost, but it's not the way to build real growth and sustainability and it may not be the way to keep your head above water now. Also, your customers will get fatigued and desensitized with shot in the arm type marketing strategies ("Sale" signs don't catch as many eyeballs as they used to).

Instead, consider working on enhancing your infrastructure, adding value to your product(s) or service(s). Rather than another gimmick, consider re-characterizing and repositioning your products or services to weather the climate.

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