Showing posts with label niche marketing. Show all posts
Showing posts with label niche marketing. Show all posts

Tuesday, August 25, 2015

Props to Lightning Food Mart's half-century in business.

This article is a good illustration of the qualities that independently-owned local small businesses exhibit when surviving over the long haul. They adapt to changing markets, find undervalued niches, and provide great service. Obviously, Lightning has been doing these things right.

Lightning strikes twice in New Albany, by Daniel Suddeath (News and Tribune)

When Tammy and Bob Wolford decided to move Lightning Food Mart across Charlestown Road from the spot it had been located since 1962, they knew it would be a gamble.

But risk and reward are concepts convenience stores are built upon. Ranked as the top selling lottery store in Southern Indiana, Lightning Food Mart’s reputation for facilitating winners stretches from Floyds Knobs to Louisville.

At the risk of picking nits, one sentence is unsettling to me.

“One of the things I take the most pride in is we’re one of the only American-owned convenience stores left,” Wolford said.

Of course, I'm an advocate of "American-owned," so there is no disagreement there. However, why say "American-owned," when "independently-owned and operated" conveys the same meaning, without a reference to American, which in this context implies code language for "not owned by foreigners"?

It's just that words, language and ideas genuinely matter, but let's not stray too far from the central point: Independent local businesses are the economic backbone. Instead of subsidizing big-ticket, plaque-ready projects, shouldn't we be tending to our fundamental infrastructure as the best way to help independent local businesses compete on a level playing field?

Tuesday, October 07, 2014

Harvest Homecoming's booth days negatively impact downtown.

These thoughts were first published here on September 25, 2012, but have been augmented for 2014. An extensive Facebook thread documents these and other points.

It is undoubtedly true that Harvest Homecoming draws large numbers of visitors to “booth days” downtown. This fact alone will strike many readers as sufficient reason to let time-tested matters rest; after all, throngs for any event are a good thing no matter what, right, and if it ain’t broke, why fix it?

As with AWOL councilman Bob Caesar's rote insistence that one-way arterial streets slicing through a new-age revitalizing downtown are peachy keen, the reaction from some when it comes to criticizing Harvest Homecoming is visceral and faith-based:

Why would these ungrateful businesses downtown complain when they have such a wonderful opportunity to market themselves to big crowds?

Because it’s not at all that simple.

For the type of businesses now calling downtown New Albany home, some crowds are better than others. It isn’t as much about the crowd’s size as its composition. Or, as Ryan Rogers of Feast BBQ eloquently wrote after a commenter said, "I could sell dog turds and make money at Harvest Homecoming":

(He's) right, I could sell dog turds and make money, but I try to have some integrity in the way I do business. It's hard to compete with the traveling barbecue pits that undercuts our price by $3-4 dollar because they are running an entirely cash business, probably committing tax fraud (though maybe not), and definitely not paying the utilities, taxes, maintenance, and initial startup restoration of a 133 year old building. Not to mention the fact that we pay our employees all multiple dollars above wage. That being said our barbecue isn't pump and dump, all of our meat is brined 24-72 hours prior to ever being smoked (unlike the traveling pits that literally dump their meat from the box onto their smokers), and we have the capacity to do the volume we do in house.

So tell me why again I should spend more money just to recapture the money I am losing because the normal clientele that actually spends money in local businesses (and in turn those businesses generate tax revenue) 51 other weeks a year have no where to park because we've got a made in China trinket fest going on.

Naturally, there are mercantile possibilities inherent in Harvest Homecoming's invading legions, and commerce is not only possible, but likely, and yet there are considerable differences between target clienteles and business models, as Ryan clearly explicates in the preceding.

Our new downtown businesses offer goods and services tailored to particular modes of thought, and while Harvest Homecoming’s vibe endeavors to be egalitarian, and occasionally succeeds, the festival also is understandably narcissistic. It is about itself, drawing attention to itself and the street vendors who pay to play, not its surroundings.

The old axiom about “location, location, location” grows ever less relevant. It applies to some businesses, not necessarily to all. Niche businesses can survive and thrive by choosing specialized product lines, and catering to consumers who know the difference. They do not necessarily need high traffic volumes such as those we were raised from childhood to insist are essential for success.

Especially in an evolving downtown setting like New Albany’s, numerous niche businesses must be viewed as a collective entity, with their ideal location not being an interstate ramp’s indiscriminate spewing of speeding autos, but a distinct sense of place itself as a destination for those making a calculated decision of where they’ll spend both time and money.

In effect, Harvest Homecoming arrives once yearly to remake and remodel downtown to suit its own purposes, and its own business model. With passing time, the festival overlay bears less and less resemblance to daily reality. In truth, this can hurt local businesses in the long term even if there is a short-term boost in trade.

---

In New Albany, primarily because of the mechanism known as the riverfront development three-way permit for alcohol sales, revitalization has been led by restaurants and bars. A second wave of galleries and shops slowly follows. More downtown residential opportunities via existing lofts and upstairs spaces hopefully will come next.

Virtually all of these improvements are dedicated to a demographic proposition intended to be practiced 365 days of the year, so how do the crowds convening downtown during Harvest Homecoming booth days fit into the intended future demographic, especially given that an increasing number of the street vendors do not hail from this area?

In all probability they don’t fit, but at the very least, even if we are to concede the utility of the festival as currently operated, should businesses already in existence downtown, year-round, be forced to cower for four days behind the reeking facades of food purveyors from Keokuk? We tout downtown as a foodie paradise, then hide restaurant entrances behind elephant ear stands.

Conversely, if they so desire, shouldn’t those businesses already in existence downtown have the same chance as Harvest Homecoming’s paying vendors to profit from the hordes, if they choose to try reaching them? Moreover, shouldn’t they have the very first chance?

As usual, Jeff Gillenwater gets the last word.

Every year, business owners and residents rightfully complain about negative impacts. Every year, HH officials scoff at them as has occurred in this thread. What's been called "tired" is only that way because HH never listens. To me, it's simple: As HH is the entity consistently seeking to disrupt so many, the onus to prove substantial positive impact to justify that disruption falls on them. As others have noted, they don't even try to do that beyond their own self-serving claims sans any evidence or dialogue in support. Until that changes, street closures to the extent HH demands shouldn't be allowed. Do I think the mayor's office, development staff, and/or Board of Works has the fortitude to hold HH to what should be an obvious standard? Nope, not for a second. People who have rehabbed commercial buildings and residences, started new businesses, and implemented new programs - none of which have anything to do with HH - have done their part to initiate and sustain positive change. It's past time for HH to do theirs or face some disruption of their own. Broken record like, I repeat: business owners and residents have to work together against what's unfortunately become a common nuisance.

Wednesday, October 02, 2013

Harvest Homecoming 2013, Part Two: No longer what downtown is about.

These thoughts were first published here on September 25, 2012. 

Yesterday: More evolution, less fear.

See also: A message to Harvest Homecoming food vendors ... and your PourGate update for Monday, September 30.

It is undoubtedly true that Harvest Homecoming draws large numbers of visitors to “booth days” downtown. This fact alone will strike many readers as sufficient reason to let time-tested matters rest; after all, throngs for any event are a good thing no matter what, right, and if it ain’t broke, why fix it?

As with AWOL councilman Bob Caesar's rote insistence that one-way arterial streets slicing through a new-age revitalizing downtown are peachy keen, the reaction from some when it comes to criticizing Harvest Homecoming is visceral:

Why would these ungrateful businesses downtown complain when they have such a wonderful opportunity to market themselves to big crowds?

Because it’s not at all that simple.

For the type of businesses now calling downtown New Albany home, certain crowds are better than others. It isn’t as much about the crowd’s size as its composition.

Naturally, there are mercantile possibilities inherent in Harvest Homecoming's invading legions, and commerce is not only possible, but likely, and yet there are considerable differences between target clienteles. Our new downtown businesses tend to be specialized, offering goods and services tailored to particular modes of thought, and while Harvest Homecoming’s vibe tries to be egalitarian, the festival also is understandably narcissistic. It is about itself, drawing attention to itself, not its surroundings.

What makes a revitalizing downtown like ours increasingly vibrant isn’t necessarily what makes an exurban Wal-Mart packed, or a stadium filled with college football fans exuberant. It all depends on the composition of the crowd. An opera house may or may not be a good place to sell fried chicken, or a ballpark Gucci, although lately, in places other than white-bread Louisville Slugger Field, enlightened minds have started to see the virtue of offering sushi and craft beer to baseball fans.

The old axiom about “location, location, location” grows ever less relevant. It applies to some businesses, not necessarily to all. Niche businesses can survive and thrive by choosing specialized product lines, and catering to consumers who know the difference. They do not necessarily need high traffic volumes such as those we were raised from childhood to insist are essential.

Especially in an evolving downtown setting like New Albany’s, numerous niche businesses must be viewed as a collective entity, with their ideal location not being an interstate ramp’s indiscriminate spewing of speeding autos, but a distinct sense of place itself as a destination for those making a calculated decision of where they’ll spend both time and money.

In effect, Harvest Homecoming arrives once yearly to remake and remodel downtown to suit its own purposes, and with passing time, the overlay bears less and less resemblance to daily reality. In truth, this can hurt local businesses in the long term even if there is a short-term boost in trade.

---

In New Albany, primarily because of the mechanism known as the riverfront development three-way permit for alcohol sales, revitalization has been led by restaurants and bars. A second wave of galleries and shops slowly follows. More downtown residential opportunities via existing lofts and upstairs spaces hopefully will come next.

Virtually all of these improvements are dedicated to a demographic proposition intended to be practiced 365 days of the year, so how do the crowds convening downtown during Harvest Homecoming booth days fit into the intended future demographic, especially given that an increasing number of the street vendors do not hail from this area?

In all probability they don’t fit, but at the very least, even if we are to concede the utility of the festival as currently operated, should businesses already in existence downtown, year-round, be forced to cower for four days behind the reeking facades of food purveyors from Keokuk? We tout downtown as a foodie paradise, then hide restaurant entrances behind elephant ear stands.

Conversely, if they so desire, shouldn’t those businesses already in existence downtown have the same chance as Harvest Homecoming’s paying vendors to profit from the hordes, if they choose to try reaching them? Moreover, shouldn’t they have the very first chance?

More tomorrow.

Tuesday, September 25, 2012

Harvest Homecoming: Not what downtown is about.

Yesterday: Harvest Homecoming: Do the evolution, don't fear the competition.

It is undoubtedly true that Harvest Homecoming draws large numbers of visitors to “booth days” downtown.

This fact alone will strike many readers as sufficient reason to let time-tested matters rest; after all, throngs for any event are a good thing no matter what, right, and if it ain’t broke, why fix it?

For others, the reaction will be even more visceral: Why would these ungrateful businesses downtown complain when they have such a wonderful opportunity to market themselves to big crowds?

Because it’s not that simple.

For the type of businesses now calling downtown New Albany home, certain crowds are better than others. It isn’t as much about the crowd’s size as its composition.

Naturally, there are mercantile possibilities inherent in Harvest Homecoming's invading legions, and commerce is not only possible, but likely, and yet there are considerable differences between target clienteles. Our new downtown businesses tend to be specialized, offering goods and services tailored to particular modes of thought, and while Harvest Homecoming’s vibe tries to be egalitarian, the festival also is understandably narcissistic. It is about itself, drawing attention to itself, not its surroundings.

What makes a revitalizing downtown like ours increasingly vibrant isn’t necessarily what makes an exurban Wal-Mart packed, or a stadium filled with college football fans exuberant. It all depends on the composition of the crowd. An opera house may or may not be a good place to sell fried chicken, or a ballpark Gucci, although lately, in places other than white-bread Louisville Slugger Field, enlightened minds have started to see the virtue of offering sushi and craft beer to baseball fans.

The old axiom about “location, location, location” grows ever less relevant. It applies to some businesses, not necessarily to all. Niche businesses can survive and thrive by choosing specialized product lines, and catering to consumers who know the difference. They do not necessarily need high traffic volumes such as those we were raised from childhood to insist are essential.

Especially in an evolving downtown setting like New Albany’s, numerous niche businesses must be viewed as a collective entity, with their ideal location not being an interstate ramp’s indiscriminate spewing of speeding autos, but a distinct sense of place itself as a destination for those making a calculated decision of where they’ll spend both time and money.

In effect, Harvest Homecoming arrives once yearly to remake and remodel downtown to suit its own purposes, and with passing time, the overlay bears less and less resemblance to daily reality. In truth, this can hurt local businesses in the long term even if there is a short-term boost in trade.

---

In New Albany, primarily because of the mechanism known as the riverfront development three-way permit for alcohol sales, revitalization has been led by restaurants and bars. A second wave of galleries and shops slowly follows. More downtown residential opportunities via existing lofts and upstairs spaces hopefully will come next.

Virtually all of these improvements are dedicated to a demographic proposition intended to be practiced 365 days of the year, so how do the crowds convening downtown during Harvest Homecoming booth days fit into the intended future demographic, especially given that an increasing number of the street vendors do not hail from this area?

In all probability they don’t fit, but at the very least, even if we are to concede the utility of the festival as currently operated, should businesses already in existence downtown, year-round, be forced to cower for four days behind the reeking facades of food purveyors from Keokuk? We tout downtown as a foodie paradise, then hide restaurant entrances behind elephant ear stands.

Conversely, if they so desire, shouldn’t those businesses already in existence downtown have the same chance as Harvest Homecoming’s paying vendors to profit from the hordes, if they choose to try reaching them?

Moreover, shouldn’t they have the very first chance?

---

And so it transpired that several weeks back, Wick’s Pizza – a year-round cornerstone of the independent business scene downtown – approached NABC with an idea to stage an outdoor beer garden during Harvest Homecoming, and to share a measure of the branding with us.

As of today, this bid has been rejected. Tomorrow, I'll explain why.

Sunday, January 06, 2008

The invisible hand: Is there such a thing in New Albany?

On Friday, I wrote:

Even if local newspapers won't be what I'd like them to be, there isn't much I can do about it, and while I remain intrigued by the possibilities of blogs and blogging, my profession is beer, not journalism. Mind you, there is no desire here to forsake the editorial soapbox with regard to local politics and civic affairs; rather, there's a desire to place these into an overall context, and one way to do that is to continue writing and trusting my own instincts when it comes to what might be interesting for readers.

As you might imagine, I’m speaking of the Tribune as the journalistic entity in question.

While the case can be made, and I agree with it, that the newspaper is far better than it was before the current management team came aboard, the fact that it spent the month of December steadfastly refusing to touch the 1SI/ROCK story that we chased here for more than a month, choosing instead to do things like devote today’s front page to the story of how a family of west end hillbillies are quartering a horse in their undersized backyard, tells you much of what you need to know about the paper’s ongoing failure – not a failure to improve overall, and not a failure to generate worthy content, but a failure to institute a substantive editorial policy, something that I vaguely recall the publisher vowing would occur before the end of 2006.

Correct me if I’m wrong.

Of course, in New Albanian terms, being just a year late is tantamount to finishing far ahead of schedule. That’s how we tell time in the land that its citizens seem to have forgotten.

----

Not unexpectedly, my only New Year’s “resolution” that has a chance of success in 2008 is to become less reticent about telling the world what I really think.

Scary, eh?

Knowing that it stands to mightily annoy the trogs is reward enough for persevering, don't you think?

----

Having weathered the lengthy period required to have 1SI publicly concede my point about slippery slopes (acidly: did I remember to thank the Tribune for its help in achieving this?), I remain a board member of Develop New Albany, a non-profit organization that exists to assist in the rehabilitation of downtown New Albany in the context of precepts espoused by the national Main Street group.

I write the newsletter, and my committee assignment is Economic Restructuring. At one lunch meeting roughly six months ago, a discussion was held pertaining to the ways that Develop New Albany might help small business people downtown succeed. The give and take was valuable, and many fine ideas were advanced by the participants, and yet it occurred to me at some point that much of what we were saying was largely irrelevant, in the sense that if an entrepreneur needs to be educated about certain realities only after he or she has invested in a small business, it’s probably too late to be of any real help. Rather, it becomes sink-or-swim time.

I don’t mean for this to sound harsh, and permit me to stress that my thoughts are not being aimed in any specific direction or toward any individual, but after a while it just becomes surreal to fathom that retail establishments (for instance) must be counseled to do things like hold to consistent opening hours, to not try to be everything to everyone, and to know something about the potential market for their products.

It seems axiomatic to me that if you want to run a successful coffee shop (for instance), the absolute founding principle must be superior knowledge of coffee and the desire that your coffee is the best it can possibly be, as well as the recognition that if your doors are locked, customers cannot spend their money with you, and yet time and again we see that folks willing to stake it all on a dream don't even have that much of the fundamental mission statement in line.

So, I’ve spent chunks of time for more than a year earnestly attempting to make examples like this clear, and seeking to pass along some of what I’ve learned from 15 years of running my own business. More often than not, it is though I’m speaking a foreign language. Why seek advice if you have no intention of profiting from it? Forget me for a moment: Isn't it the case that merely observing a successful business and taking notes might lead to worthwhile insights, and to reforms that might push the endeavor over the top?

It is not my preference to shrug and permit marketplace Darwinism to run its inevitable course without at least trying to be of service … but I’m almost forced to do so in the absence of comprehension, so allow me to conclude by saying this: I believe that the coming year will be pivotal in terms of small business in downtown New Albany, and that it also might well be the perfect chance for savvy opportunists (don't worry; they're out there), to make the necessary market corrections. There’ll be steps backward, but there’ll also be steps forward.

Stay alert. Things may soon be getting quite interesting.