Today I entered my local Hallmark Greeting Cards Store in search of a variety of boxed notecards.  After selecting $60 worth of cards, I went to the register and asked the 3 ladies working behind the counter to kindly direct me toward their writing pens.  The eldest woman quickly responded, “We don’t sell pens.  Go to Staples.”  I paused, holding back my outburst of laughter and amazement.  I then simply said, “Oh, thank you.”  Bewildered as to the reality that my local Hallmark Card Store sells paper note cards yet sells no pens, I could not help reminiscing over the recent news articles and stories which touted the desperate attempts at survival by the note card industry.  Seems as though e-letters and services such as SendOutCards.com have completely replaced the handwritten note card for millions of Americans amongst select generations.   Nonetheless, my local franchisee seems to prefer promoting Staples rather than serve one of her customers or even attempt to gain my business.  So without hesitation, I wandered back to the notecard section, placed my $60 in notecards back on the shelf and quickly departed the Hallmark Store, headed directly for Staples just steps away in the same parking lot!

Upon arriving at Staples I asked the clerk to direct me toward their notecard section, which he obliged by walking me directly to the notecard section of the store.  After I had thanked him, the clerk continued, “Please let me know if you need help with finding the best pen to go with your notecards.”

Aha, I knew there was a reason I have had my Rewards Account with Staples for nearly the past decade, and why I purchase all of my office supplies and equipment with Staples. True story, at 3:47 p.m. today I departed Staples completely satisfied with my $47.63 purchase of note cards and writing pens.

One notable aside:  Office Depot opened a store two doors down from this Staples last year and it failed, leaving behind an empty retail space.

Moral of the Story:  Word of mouth advertising is the best endorsement around, especially when it comes directly from the mouths of your competitor right next door.

***Hallmark’s Response:

Response Via Email(Kristen) – Next Day 02:56 PM Thank you for contacting Hallmark.

We are sorry to learn that you have had an unsatisfactory experience at a retail store that carries Hallmark products. That store is not owned by Hallmark Cards, Inc. but is licensed to carry our products and use our trademark.  Since we do not own the store or the building, we cannot interfere in its management and operation or its business practices. We will relay your comments to our Hallmark field sales group to make them aware of your concern.  However, if you require a resolution, you will need to work with the store management of that particular store.

We do understand that consumers identify us closely with their local Hallmark retailers and appreciate that you took the time to let us know what happened.

Thanks,

Hallmark Consumer Care

www.Hallmark.com

Hilarious!!

Groupon.com is a great concept whereby users receive a daily offer within their city, known as a Groupon. Discounts are significant, and the offer is only valid if the minimum number of buyers purchase the Groupon within a 24-hour period.

Presuming your offer in Groupon is $200 of cleaning for only $100? Groupon takes $50, and you receive $50…making the $50 only 25% of your original $200 in cleaning.

Here are the issues to think about with Groupon, let’s consider that 200 people pay for the $200 cleaning at $100 price offer:

• You have to be willing to serve the entire geographic area for the city you are listing under (perhaps you can give the leads that are way too far out of your service area to a trusted other company presuming they understand the finances.)

• This is a wonderful way to get inside people’s homes who have paid money upfront for your service—potentially a great pool of prospects, all brought to you in 24 hours—good to possibly incredible.

• This is a marketing investment in the future potential of converting these leads into regular customers, etc.

• One thing to consider is, of the 200 people that pay for the offer, how many will actually book appointments for cleaning? 20%, 40%, 60%…in other words it will never be 100%, and I would bet that it is probably more like 40%-60% of these people follow through. Translation, of the 40%, for example only, of the 200 who paid but never utilize it, you will have 80 people (40% of 200) who paid you $50 but never used the offer—resulting in $4000 coming to you from 80 people who never use the coupon offer. Therefore you add this $4000 to the money you received from the other 120 people (60% used the coupon–$6000), ($4000 + $6000= $10,000). Now let’s assume you do in fact do the cleaning of the 120 people’s homes. Divide $10,000 by 120 and you get $83.33 per cleaning, actual figure based upon the total dollars you received from Groupon, and the total number of homes you actually cleaned.

• So what is the real cost to you of cleaning these 120 homes? $200 of cleaning at $35/hour is 5.7 hours of cleaning, so 120 homes times 5.7 hours is 684 hours in cleaning for 120 homes. (Based upon $35/hour billable, labor rate all in at 48%, your cost per labor hour is $16.80) If you add fixed costs (average of all fixed costs, administration, marketing, sales, etc.) of $7/hour (20% of billable), you end up with an hourly cost of $23.80. So $23.80 times 684 equals $16,279 in actual expense to clean 120 homes at 5.7 hours of cleaning each.

• The next issue is what percentage of the 120 people who bought the Groupon offer and use it, do you think you can persuade to upgrade to Top to Bottom Deluxe Cleaning, or additional services carpets, windows, etc. ? Conservatively let’s say 10% of the 120 people upgrade to Top to Bottom Deluxe Cleaning at $350 each. This results in $150 revenue above the $200 Groupon coupon for each of these 12 homes, which is $150 x 12 equals $1800.

• So conservatively, let’s say that you only convert 20% of these 120 cleaning clients into regular, bi-weekly clients at $2600/year ($100 per cleaning for 26 cleanings in one year), that’s 24 clients. 24 clients times $2600 for one year, presuming 100% retention, equals $62,400 in new business (one year) from one 24 hour period on Groupon.

• So if $200 of cleaning is sold for $100 on Groupon, and you receive only $50 of this $100, the question is, is it worth it? First, you receive $10,000 from Groupon when 200 people buy the offer. Yet with our calculations of conversion above, this will only be 120 homes to clean or less. Your total labor and fixed costs for cleaning 120 homes will cost you $16,279 minus the $10,000 cash you received from Groupon, which equals $6,279 out of pocket cash expense for your business.

• So if 12 people out of 120 upgrade to Top to Bottom $1800 in revenue, 24 out of 120 clients convert to regular bi-weekly customers $62,400 in annual revenue, plus only 12 of the 120 take you up on one additional service (carpets, windows, etc. at $400 each) $4800 in revenue, you will have added $69,000 in revenue in one year. So is the $6,279 cash paid out for labor for 120 cleanings worth it to receive $69,000 in revenue, 1000% return on your “investment”—based upon this conservative calculation of 60% of Groupon buyers (120) actually use your service, 10% of these upgrade to Top to Bottom, 20% convert to regular bi-weekly clients, and 10% add one additional service. That’s $69,000 in first year revenue only, not adding in the revenue from these regular customers in year 2 and 3 (at your current client retention rate).

• Next is the intangible aspect of doing Groupon. That is, exposure to your marketplace from the initial offer, and the fact that your offer even after it is closed will pop up when users go to Groupon in your city and search for maid service—again promoting your company.

So the questions you have to ask yourself are:

a. Can you cash flow the $6,279 in labor costs, over however many months?

b. Do you believe you can convert these minimum percentage rates listed in this example above, or can you beat them? 10% upgrade to Top to Bottom; 20% convert to regulars; 10% take one additional service;

c. Once you have the 120 clients who used you in your database, how confident are you that you can advertise effectively to them in the future (perhaps you will get the contact info for all 200 from Groupon?),

d. Is there another marketing effort that you can do that would generate the same amount of revenue potential in just 24 hours?

e. Do I have the office staff well trained in terms of scripting and sales skills to leverage this opportunity?

f. How many of these new Clients can I book each week to control cash flow?

The other strategy to leverage on this would be to offer other home services to these clients through my One Phone Call Does It All process which would generate commissions for you based upon the services that were used by these clients.

To learn more about how Groupon works, go to www.grouponworks.com

Check out more great info from Steven Rowell at www.retiremenowsteven.com

When Natoma Canfield wrote an email letter to President Obama last December about the need for health care reform, she had no idea how quickly her own crisis would arrive. The cancer patient had to be rushed to the hospital last Sunday.

Wearing a blue hospital gown, Natoma Canfield had just finished most of her dinner at Medina General. Her slender arms were bruised from repeated attempts to take blood samples. Her smile was warm but tired after a long day.

“It’s frightening having no insurance and being in the hospital since Sunday night,” said Canfield.

As a hospital staff member cleared her trays, Canfield said, “I worked hard my whole life to take care of myself.”

She added, “Now I’ve fallen behind. I have no health care and now I’m going to have a humongous hospital bill.”

The 50-year-old, self-employed cleaning woman gained national attention last week. President Barack Obama read Canfield’s letter at a White House briefing urging health care reform.

White House Press Secretary Robert Gibbs said, “This is a letter the President will likely take with him to meetings today and throughout this period to remind everyone what’s at stake with the final push for health care reform and what happens if we walk away.”

Canfield wrote the letter to the President on Dec. 29 after she struggled to pay for health insurance. But last weekend, Canfield’s cancer symptoms flared up and she was rushed to Medina General Hospital.

“I am getting great care,” said Canfield, “but without insurance, I have no way to pay for it.”

She said she was notified by Anthem Blue Cross and Blue Shield that her premium had been increased over 40 percent to $8,496.

Canfield dropped her health insurance Jan. 1.

She told Channel 3′s Mike O’Mara, “I can’t tell you that since I’ve been in the hospital, in this room, how many people have come in to tell me that they have a story just like mine.”

Canfield added, “Some of them even have stories worse than mine. I feel so humbled to be able to share my story with the President of the United States and to have him listen and understand.”

At home, President Obama’s thank you letter is already framed. Now Canfield hopes that she will be strong enough to join the President on the stage at the Walter F. Ehrnfelt Recreation and Senior Center in Strongsville on Monday.

“I told my sister that she may have to fill in for me, but I am really, really hoping to be there!” said Canfield, with a grin.

Amy Boggs, owner of Sparkling Palaces, Portland’s Premier Green House Cleaning Company shares 10 Great Tips for Home.  Yet another professional ARCSI Member taking Home Cleaning to the Next Level!

Christine McDannell, serial entrepreneur with another GREAT IDEA!
Notice the genius of integrating her Green Cleaning Company with Adopt a Christmas Tree!

Enjoy this excerpt from Derek Christian’s recent article at www.arcsi.org

My favorite way to learn about my competition is www.Angieslist.com. Angie’s List is a member’-only service and the cost to join is $35 – $70 a year depending on the market. Members of Angie’s List post reviews on service companies in a variety of areas including ours. Once you’re a member just log in and read all the reviews on your competition. The customers will tell you how much they charge an hour and everything good and bad about the company. It is a great way to learn the strengths and weaknesses of the competition.

I also check the websites of the business brokers. Most businesses are sold by a broker and you can learn a lot by seeing what businesses are being sold. In my area two franchises changed ownership in the last year and both were posted on these sites including their sales, profit margins, and number of employees. While the businesses are not named there is often enough to narrow it down if not flat out identify it. One business was described as “This company with their well known yellow cars has the franchise rights to Warren county.” www.bizbuysell.com and www.sunbeltnetwork.com are the two I use.

Finally I read the employment pages every week to see who is hiring. Seeing your competition advertising for a lot of employees is often a sign of growth. They will also often give away a lot of details. For example one employment ad I read recently said “We need 3rd shift employees for a large new medical complex we have signed.”

This does not need to be a huge and time consuming project. I normally do these activities once a week while watching “Glee” on TV.

Written by:

Derek W. Christian
Owner, My Maid Service, with locations in Cincinnati and Dallas
www.mymaidservice.net

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Tonight was different.  Many evenings before this, from my own office or whenever I walked the halls, I would see this middle-aged man working hard to clean our corporate office.  The Cleaning Service company name was emblazoned across the front and back of his maroon t-shirt, yet this man’s name was no where to be seen.

Many times, almost every time in fact, I had said hello or good evening, and this man had graciously replied. His deep voice possessed the accent of what I thought was sure to be the history of an African nation.

Tonight was different.  I was working later than usual.  I left my office to get a drink from the kitchen.  Along the way, our paths crossed yet again.  This time, for some inexplicable reason, I felt the need, not an urge, but a real need, to stop and say more than just hello.  After the routine greetings, I muttered, almost mumbled, “what is your name?”  The strong yet peaceful soul spelled out, “W-O-N-D-E-R, like Stevie Wonder.” I smiled and asked, “Where are you from originally?”  Wonder replied, “Zimbabwe.”

I shared that my wife and I had been to Zimbabwe and that we dearly loved the people and the beauty of this incredible country.  Wonder’s heart must have filled with joy, based upon the look in his eyes at that moment.  He shared sweet anecdotes of life in Zimbabwe as I listened intently.

Suddenly that warm tingly aha feeling rushed over me, as I said, “You know I have something I’d like to share with you.  My wife and I work with an organization called Acres of Love that provides homes for abandoned and HIV-positive children in South Africa.  When you take a break, please stop by my office, and I’ll share something with you.”

Several minutes had passed, when Wonder’s glow illuminated my office doorway.  I shared the brief story of Acres of Love and showed him the video.  As the video ended, I turned to a Wonder who was silently wiping tears away.  I was done.  What happened next, was the gift of life itself unraveled and placed before me as a banquet of grace and love—one of those moments that makes you wish you could “stay right here, without moving, for a very long time.”

Wonder asked if he could share a story with me.  The “ask” itself was filled with such reverence, respect, and servant heart.  Of course.  I was open, eager to hear every word this man had to say.

Amidst the humble sharing of his family’s story, Wonder explained that one son, in his thirties, was about to graduate from the University of Delaware, and had built a great career with McDonald’s along the way.  Wonder and his wife, had brought this son to America five years ago so he could attend college.  Two years ago Wonder’s wife returned to Zimbabwe to support their other daughter, an accountant age 26, and their other son who now lives in South Africa.  Throughout the viewing of the Acres of Love video, Wonder kept politely, quietly repeating that it was God’s work.

Wonder then gently, even delicately told the story of his daughter and son-in-law, and their baby son, who all had passed away from AIDS eight years ago in Zimbabwe.  Still to this day, no one in the family knows how or who was infected first, and they have let this mystery go in their journey for peace and acceptance of this unbearable loss.

Wonder apologized for his tears, and dutifully said he had to get back to work.  I could tell there was something else he wanted to tell me.  It took very little to urge him on.  The safety, trust and grace of the moment embraced us.  I repeated, “No apologies needed. Thank you for sharing!”

Wonder explained that in his small village in Zimbabwe he knew the exact day that he was supposed to have died.  Just after sunset one evening, just steps outside of his own home, five young men assaulted Wonder, taking his watch, stripping him of anything of value, and then kicking and hitting him repeatedly.  As Wonder felt his body “fall in” from the crush of these boys, he clasped his “important papers” in his shirt pocket, and began to think, “Now is the time I am going to die.”

Wonder said he became calm and resigned to the situation, even relaxing his body as he lay on his back with all five boys on top of him.  He looked up at the boys and said, “Boys I forgive you. I do not blame you.  I understand why you have to do this.  Your anger is to survive.  I understand. I forgive you.”  The boys stopped hitting and kicking him, but still held on strong.  Staring back into the eyes of Wonder, they all looked on.  One boy said, “Can you help us?”  Wonder replied, “Yes I can, take my money, but don’t take me, my children will suffer alone without me.”  At this same moment, one boy drew back his knife, ready to end Wonder’s life.  Another boy, said, “No. The money, not the man. He’s a father!”  And all at once, the boys let go their strong hold on Wonder, backed away and ran off.  Wonder closed his eyes and said a prayer.

After arriving home with a swollen mouth and broken jaw, scrapes and bruises, Wonder hugged his wife and children, and cried himself to sleep.  Later that night, Wonder woke with a stirring image.  He looked out his window toward the cemetery of his village.  He saw a grave site, newly dug, with the soil piled high above ground.  The message Wonder heard, “This grave was for you, but it is now nothing but dirt.”  Wonder said he believes this image was a message confirming his faith and trust.

Wonder promptly stood up, wiped his tears, and thanked me profusely for sitting with him.  I said, “I thank you for the gift of your sharing.  You have touched my heart deeply and I wish you all the best.”  My words failed me. I could not think of adequate language at the moment.  I trust he knew though.”

It’s a wonder what life moments bring in the face of pressing in deeper to understand the love that surrounds our human lives.  It’s a wonder indeed.  Here’s to the man who cleans our offices every night.  What a Wonder he truly is.

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