What are the trends evidencing in 2009 that could affect your small business in 2010?

Over the next few weeks we will examine data from Google’s 2009 Zeitgeist (or spirit of the times), Hitwise, news summaries, future trend specialists, and others to determine how the next decade is poised to begin, and what your small business can do about it.

Although business owners are community leaders and stand out among the crowd as free thinkers, risk takers and entrepreneurial minded, owners are nonetheless the summary of the societies they serve.  It is vital to our success that we become tealeaf readers of the times, or those who see beyond the obvious to prepare for future needs and opportunities.

Luxury is required

Skimping and saving and “making due” are getting boring to the American public.

When a society has been marinated in privilege and choice, a year or 18 months of cash flow limits is quite enough.

However, the emotional need does not reflect the economic reality.

According to Harvey Schachter, in the Jan 04, 2010 Globe and Mail, shoppers in 2010 will be well informed, research savvy and ready to shop for a bargain.  All things being equal, the deciding factor for many shoppers may be the “feeling” that accompanies the hunt.

A Luxurious Cup of Java?

Look at Starbucks.  The lines are long, young and old cued together with the classy and the ordinary.  The middle working class from the nearby office towers, and CEO’s alike, share lattes with no foam and hazelnut flavoring.  They may joke at the price they spend for their fix, but they will likely return this afternoon for latte #2.

Starbucks opened their first store in 1971.  As the chain grew and matured, they found an unusual niche.  Not the niche for those who loved coffee, they found a niche of people who wanted to feel ‘gourmet” at a price they could afford.  People feel good about going to Starbucks.  Face it.  It is the emotional attachment to the self-perception, and of course, the savvy business minds that provided the environment and standards of excellence in the staff to keep the dream alive.

Sure, people who like coffee go to Starbucks.  But as small business owner who leases office space at no charge (except for my coffee!) from the aforementioned, I have witnessed plenty of people who drink juice, tea and even warm milk at Starbucks.

What can you do?

The question for the business owner is not “how do I get into the luxury market.  Ask rather, “how do I help old and new customers to feel like they are treated like royalty when they do business with me”?

1. Do you offer your customers free upgrades when what they want is not in stock?
2. If they are a few pennies (or dollars) short do you act as though they are so important and respected that, you toss your hand in the air and say, “not a problem!”
3. If they are responsible for dropping their purchase in the parking lot and you know it, are you still willing to set them up with a new product?
4. What environment do you provide for your “guests”?  Is it trendy, savvy, or relaxing?  Clearly if you sell antique furniture, you may not want trendy, but what could you do to help your guests feel like “this IS the place” where they want to part with their dollar?
5. Do you cater to the hours of your customers or expect them to take time off from the job they are happy to have, just to buy from you?
6. Do you provide extra services? 

The Produce Shop That Could

Just a few blocks from where I live, is a produce market.  They sell a bit of bread and deli meats, but mostly produce; FRESH, CHEAP, NO SPRAY, CLEAN, SPOTLESS produce.  The store is a run down little dent in the wall, and the videos they play while you shop are from the disco music of the seventies and Russian opera.  Mary, the main cashier wears hats.  Wild, crazy, abominable hats.  And the lines are eternal.  You wait 30 minutes on a good day to get out of that store.

Why does this middle class and upper middle class neighborhood flock to Mary?She knows you, throws in free produce, makes you try new things, tells you to pay the remainder next time, sings, encourages the line to sing, and cheers people through by name.

The style is discount, the manner is luxury.

Your business can cash in on the desire of North American’s to feel special once again.

To our Success,

Harmony Thiessen

PS Look for me at a Starbucks near you!