The Bankruptcies of Lillian Vernon and The Sharper Image...

[Dien Rice]

I'm sure some others here caught some of the stunning news in the last week... The filing for bankruptcy of two iconic catalog businesses, Lillian Vernon and The Sharper Image.

I think Denny Hatch has an insightful, and very instructive, write-up on the whole phenomenon in his newsletter... Read it for some good insights, which will help you with your own business!

Here's the link...

Lillian Vernon, Sharper Image Crash. Why?
Two entrepreneurs who started off on the wrong foot
http://www.targetmarketingmag.com/bc...2007&var=story

Here's a great quote from the article...

The late Joan Throckmorton said this:
As direct marketers, we’re not here primarily to make a sale; we’re here to get a customer. Sales are important, of course. (Where would marketers be without them?) But the name of the game is repeat sales rather than one-shots. And to have that, you need a customer.

And this part also made me "sit up" and take notice...

Why people buy
People buy for three reasons:

* Price. Wal-Mart has become the largest corporation in the world (equal to the GDP of Poland) because it is seldom—if ever—undersold.

* Service. If an organization is a joy to do business with—helpful staff, ironclad guarantee, easy return policy and great customer satisfaction—people will pay a little more to do business there.

* Exclusivity. If a buyer really wants a specific item—Glenlivet Single Malt, Hermes, Rolls-Royce, Rolex—the guy who stocks it will get the order.

Best wishes,

Dien