Are You Giving More than You Bargained For?

Counting MoneyYou get what you pay for.

You got more than you bar­gained for.

Ever notice that phrases like these mean some­thing neg­a­tive when on the face of it, they shouldn’t? You pay for some­thing, and you get it. Nat­u­rally. You bar­gain for some­thing, and get a lit­tle extra. Who wouldn’t be happy about that?

Yet these phrases don’t mean good things. These phrases mean there’s an unan­tic­i­pated short­fall in the deal, and you’ve been short­changed in one way or another.

Money-back guar­an­tee. In other words, if you don’t get what you’re sup­posed to, you can return it for a refund. This is your bare-minimum: both sides of the ledger bal­ance out, one way or the other. Dollar-for-dollar, equiv­a­lent value.

McNally Blames Expansion for Woes

A few weeks ago I accused book­seller McNally Robin­son of miss­ing the plot twist fol­low­ing their entry into bank­ruptcy pro­tec­tion. What I said was (1) that they had expanded at the wrong time, in the wrong way and (2) that they didn’t have an effec­tive strat­egy for com­pet­ing with online book sales.

Well, last week McNally emerged from bank­ruptcy pro­tec­tion and Paul McNally made some pub­lic com­ment on what went wrong, as he saw it. The biggest sin­gle fac­tor he cites was the fail­ure of their Don Mills store to meet the sales tar­gets for which they had hoped. He spec­u­lated that their strat­egy of com­mu­nity involve­ment maybe didn’t play as well in T-Dot, but it has also been noted that the Don Mills mall in which they were located has been a dis­ap­point­ment to many of its retail tenants.

McNally Robinson Misses the Plot Twist

It’s been McNally Robinson - Polo Park, Winnipeg announced today that McNally Robin­son is clos­ing two of its stores and have entered bank­ruptcy pro­tec­tion for restructuring.

For those not in Win­nipeg, it’s worth men­tion­ing that the inde­pen­dent book­seller is a local suc­cess story, hav­ing started here in 1981 and grown to have stores not only in Win­nipeg, but also in Saska­toon, Toronto, and New York as well as online. Many Win­nipeg­gers have a “feel-good” sense about sup­port­ing this local option for their book pur­chases, and it’s a pop­u­lar spot for book launches as well. Most loca­tions also fea­ture a (non-Starbucks) café/restaurant of some sort, the Prairie Ink Café. To be clear, I like McNally Robin­son as a book­store. The loca­tions I’ve been in are all large with a good selec­tion of titles and spe­cial pro­mo­tion for local authors.

Odd Jobs” as Professional Distinctive?

I’ve handyman seen ser­vice com­pa­nies sorely tempted (and I con­fess I’ve been there) to take on what­ever work is being offered. This is how web devel­op­ers become print bro­kers and graphic design­ers fancy them­selves brand man­agers. It’s a farce. In the midst of a meet­ing, some­body asks whether the project can be extended to include an addi­tional ser­vice, and the busi­ness qui­etly asks them­selves “Why not?” rea­son­ing that it can’t be all that hard. “Of course,” they tell the client. “We do that too!”

The Would-Be Entrepreneur

Call it unusual, 1182879_woman_writing_in_the_agenda but then again, I might be more intel­li­gent when I’m comatose. I had a dream wherein I was lis­ten­ing to a woman lament­ing the fact that she wanted to start a busi­ness, but couldn’t. She went on and on, bemoan­ing how she just didn’t know any­body and had noth­ing to put down in her diary except her birth­day. Tears punc­tu­ated her expressed inabil­ity to start a business.

Fine,” I said, cut­ting short the next bar­rage from her pity party. “So write down your birth­day. Then write down all of your inter­ests. Let your inter­ests become events, and let the events become con­tacts. Then let the con­tacts become business.”

Nickle-and-Diming Your Customers

This is 391113_wallet one of my pet peeves. When I’m pay­ing for some­thing — a meal, say — and the merchant’s Interac (kind of like a check card) ter­mi­nal advises me there will be an addi­tional 35¢ fee added to the trans­ac­tion. Even if the bill is only $20 plus tip, this is a bit of an insult, charg­ing me extra for my con­ve­nience of not hav­ing to han­dle cash — never mind that it offers the mer­chant this very same con­ve­nience. Yes, I know there’s an extra cost to the mer­chant to have the ser­vice… but I also hap­pen to know it’s about 9¢ per trans­ac­tion. If the mar­gin on the meal can’t absorb that, they need to close up shop and go home. Most times, I’m tempted to pull out a credit card instead, and make the mer­chant pay 2% or more for the same convenience.

Corporate Culture is Like a Bonsai Tree

One of the great­est assets that a cor­po­ra­tion has is often lit­tle under­stood or appre­ci­ated, bonsai_juniper because it’s an off-balance-sheet asset whose acqui­si­tion occurs slowly over time and is rarely man­aged or con­sid­ered as an asset. Cor­po­rate cul­ture is some­thing I’m com­par­ing to a bon­sai tree… its size belies its age, value, and com­plex­ity. One can also tend to for­get it’s like a liv­ing organism.

Wally Bock’s Lessons from the Rise and Fall of Delta Air­lines are instruc­tive in sev­eral ways for the neg­a­tive exam­ple set by CEO Ron Allen, who squan­dered the cor­po­rate cul­ture in pur­suit of “the bot­tom line.” Unfor­tu­nately for Delta, the way to the best bot­tom line is often a counter-intuitive one that takes best advan­tage of intan­gi­ble assets like cor­po­rate cul­ture. Among the sum­mary state­ments of Wally’s lessons from his exam­ple is this gem: