End of an Era
From jsonline: http://www.jsonline.com/story/money/business/retail/2017/07/17/dalys-pen-shop-close-its-doors/477625001/
Unfortunately not all business models are survivable (even those founded in 1924). Daly’s Pen Shop in Wauwatosa, Wi has come to an end….three or fewer customers per day is just not enough to cover overhead.
The key part of the story is that a market for fountain pens does exist….just in a different form via the internet. In the case of Daly’s Pen Shop being able to adapt was the way to carry on the business.
Operating our family business could at times be demanding….for the most part….the day-to-day activities kept us plenty busy….thorough cleaning every day….customers of course….meeting with the reps….deliveries certainly….service calls when needed….paying bills….measuring for carpet….unloading trucks/railcars….and creating ad layouts were all in a days work.
While all the above was taking place….we also needed to step back from time-to-time….not just for planning but to make sure were focused on our mission and market. We did step back….however we could have been more definitive about it rather than at times trying to do it on the fly.
25 Retail Innovators
Despite the huge impact of Amazon, there are other retailers that are changing the retail buying process.
From Business Insider: http://www.businessinsider.com/25-companies-that-are-revolutionizing-retail-2017-7
While Amazon may try to capture every market….companies that are creative will hold up to the competition. Retailers (or any business) that are distinct / different will also be better.
Minimum Viable Audience
“The solution is simple but counterintuitive: Stake out the smallest market you can imagine. The smallest market that can sustain you, the smallest market you can adequately serve. This goes against everything you learned in capitalism school, but in fact, it’s the simplest way to matter.”
“When you have your eyes firmly focused on the minimum viable audience (MVA), you will double down on all the changes you seek to make. Your quality, your story and your impact will all get better.”
MVA is certainly not a concept I heard of either during the MBA years or even thereafter. Yet it makes sense. Rather than being a small fish in a large pond….become the larger fish in a smaller pond.
In our business….there were many fishes and the market was very competitive….in some ways that was OK as it made one a better competitor.
In the MVA model…the .key is defining the smallest market that can sustain you. if that market exists….than that is foundation for business growth.
The Nov. 1951 Air Force Association magazine had many aviation company ads….Lockheed, Martin, Convair, Bendix and one from Continental Motors, Muskegon. Continental being one of the major manufactures of that era.
During WW ll, Continental supplied aircraft, tank and numerous other engines to the military. It continued to manufacture aircraft engines (Red Seal) in Muskegon until that production was moved to Mobile, Alabama. in the 1960s.
While Continental Motors no longer exists, the large tank engine plant remains as part of L-3 Combat Propulsion Systems.
I have written in prior posts about our business competing in a saturated market.
I would like to think that we did a good job of competing in a 1960’s and 1970’s saturated market….though vastly different in 2017.
I’ve stated the following many times….and they still are the keys to success:
George Whalin: “Be the best. It’s the only market that’s not crowded.”
Jerry Garcia: “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.”
Companies that end up succeeding don’t care who their competition is–they will find a way to be successful.