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Vol. 26, No. 12 • December, 2008

Now you can find this newsletter on the web, at Freeman-Spicer.com

HAPPY HOLIDAYS AND A VERY HAPPY AND HEALTHY NEW YEAR!

From all of us at Freeman-Spicer

Features First - Really? . . . . . . . . Advertisers tend to sell features first, but it’s the benefit that makes the buying difference. Think about your buying decisions: What’s been the tipping point in your decision to pull out the cold, hard cash? Chances are it’s been one of three: a need, a bargain price, or a benefit that you just couldn’t resist. And the bargain price would have been meaningless without the benefits. Ask yourself whether you’re selling the feature or the benefit. If it’s not the benefit first, fix it! In fact, if the benefit isn’t in the headline, revise it and get it there. Make the benefit the star - the one key point other than the brand name that gets remembered. Because not only will it be remembered, it will be the reason to buy. (The Little Blue Book of Advertising)

Standard . . . . . . . . The standard IRS rate for business driving will fall to 55¢ per mile in 2009, from 58.5¢ this year. The rate for medical travel will drop 3¢, to 24¢ a mile next year, while the deduction for travel for charitable work remains at just 14¢. (Kiplinger)

Need More Evidence . . . . . . . . . of consumers’ distress? Auto insurance fraud is up. Apparently, some cash-pressed consumers are resorting to torching, drowning or dumping SUVs, pickups and cars to get out from under auto and other loans. Scores of cars reported stolen are turning up in Lake Erie and in western deserts. Dozens of expensive vehicles were left at water’s edge in Gulfport, Miss., just hours before Hurricane Gustav hit. Crime rings are making hay, smashing cars on request. Vehicle fire claims alone are up 8% . . . . . 13% to 18% in N.Y., Ind. and Mich. (Kiplinger)

Sorry, A Blonde Joke . . . . . . . A blonde is watching the news with her husband when the newscaster says 6 Brazilian men die in a skydiving accident. The blonde starts crying to her husband, sobbing “That’s horrible.” Confused, he says, “Yes dear, it is sad, but they were skydiving, and there is that risk involved.” After a few minutes, the blonde, still sobbing says, “How many is a Brazilian?” (NP O’Brien)

Employers Cut People And Benefits - Not Salaries . . . . . . Percentage of employers that expect to make each change in coming year*

□          Layoffs / reduction in force –                                                   26%

□          Hiring freeze –                                                                         25%

□          Raise employee contributions to health-care premiums              25%

□          Salary freeze –                                                                         12%

□          Reduce employer 401(k) or 403(b) match –                               4%

□          Salary reduction –                                                                      4%

□          Mandatory holiday shutdown –                                                   2%

* Selected responses from mid-October survey of 248 employers, of which 89% have more than 1,000 employees and 82% are for-profit businesses. (BusinessWeek)

Ladies Beware . . . . . . . . . You might want to think twice before making your husband accompany you when you go shopping. After I retired, my wife insisted that I accompany her on her trips to Wal-Mart. Unfortunately, like most men, I found shopping boring and preferred to get in and get out. Equally unfortunately, my wife is like most women - she loved to browse. Yesterday my dear wife received the following letter from the local Wal-Mart:

“Over the past six months your husband has been causing quite a commotion in our store. We cannot tolerate this behavior and have been forced to ban both of you from the store. Our complaints against your husband are listed below and are documented by our video surveillance cameras.

1.         June 15: Took 24 boxes of condoms and randomly put them in people’s cars when they weren’t looking.

2.         July 2: Set all the alarm clocks in Housewares to go off at 5-minute intervals.

3.         July 7: Made a trail of tomato juice on the floor leading to the women’s restroom.

4.         July 19: Walked up to an employee and told her in an official voice, ‘Code 3 in Housewares. Get on it right away.’

5.         August 4: Went to the Service Desk and tried to put a bag of M&M’s on layaway.

6.         August 14: Moved a ‘CAUTION - WET FLOOR’ sign to a carpeted area.

7.         August 15: Set up a tent in the camping department and told other shoppers he’d invite them in if they would bring pillow and blankets from the bedding department.

8.         August 23: When a clerk asked if they could help him he began crying and screamed. ‘Why can’t you people just leave me alone?’

9.         September 4: Looked right into the security camera and used it as a mirror while he picked his nose.                                                                                                          

10.       September 10: While handling guns in the hunting department, he asked the clerk where the antidepressants were.

11.       October 3: Darted around the store suspiciously while loudly humming the ‘Mission Impossible’ theme.

12.       October 6: In the auto department, he practiced his “Madonna look’ by using different sizes of funnels.

13.       October 18: Hid in a clothing rack and when people browsed through, yelled ‘PICK ME! PICK ME!’

14.       October 21: When an announcement came over the loud speaker, he assumed a fetal position and screamed ‘OH NO! IT’S THOSE VOICES AGAIN!’

And last, but not least:

15.       October 23: Went into a fitting room, shut the door, waited awhile, and then yelled very loudly, ‘Hey! There’s no toilet paper in here!”

We regret having to take such drastic action. Sincerely, Wal-Mart (Foti)

The Squeeze . . . . . . . . A relatively small portion of the federal budget is devoted to spending that keeps America’s economy competitive. Total Government Outlays = $3.0 Trillion - 2008:

♦          25% - Social Security Retirement - Disability

♦          24% - Medicare, Veteran’s health, Other veteran’s support

♦          23% - Energy, Commerce, Agriculture, Community Development, Science, International Affairs, Environment, Government, Transportation, Education and Income security (Which includes unemployment compensation, housing and food assistance, other veteran’s support, and other income support.)

♦          20% - Defense

♦          8% Interest on public debt (Fortune)

Pin Up On Your Bulletin Boards At the Office . . . . . Principals of Customer Service Success:

1.         Your Customer is your paycheck. Do you recognize that they feed your family? That your degree of service and help determine your wage and success?

2.         Your Attitude determines the degree of excellence of service you perform. How consistent is your positive attitude?

3.         A Customer’s lifetime value is twenty times his annual sales volume. And every contact during / between transactions is an opportunity to earn the next sale.

4.         Customers Call for one reason - they need help! If they truly believe you can solve their problems, they won’t call the competition. They just want help - and comfort. (Have you documented the BEST responses for every reason a customer calls?) (Customer Satisfaction is Worthless)

Punster Alert: The roundest knight at King Arthur’s round table was Sir Cumference. He acquired his size from too much pi. (Bishop)

Remember This . . . . . . . You can’t get rich keeping other people broke. Share the wealth. Pay people well when they deliver results. Did you ever get the best work done for you by the lowest bidder? Not often. You do get what you pay for. So pay as much as you can and a little more. If you become known as a person who pays well, you’ll attract better employees to work for you. And well-paid employees aren’t always looking for a better job for a nickel more at every opportunity. You build loyalty when you pay people well. It’s said that “if you pay peanuts, you get monkeys.” (It’s Called Work For A Reason!)

Business Professionals Cozy Up With PDAs . . . . . . . . .  A recent study of 6,500 business professionals by Sheraton Hotels & Resorts found that 85% of U.S. respondents feel using modern technology compels them to be connected to work 24/7. Further, 87% bring a PDA into the bedroom, with 84% checking it just before bedtime and immediately upon waking. Conversely, 85% reported PDAs and cell phones enable more time away from the office, make business travel easier (88%), and help them stay better connected with others during travel (85%). (PC Today)

Punster Alert: No matter how much you push the envelope, it’ll still be stationery. (Bishop)

I Hate Automatic Telephone Answering Machines . . . . . . What are the hallmarks of a company that knows how to answer the telephone and treat those who call? Try these:

●          Strive to answer the phone on the second or third ring and certainly no later than the fourth. [Have a backup to the operator.]

●          Slowly and clearly answer by stating the company name. You’ve experienced calls where people respond so quickly and automatically that it’s impossible to decipher what they have said.

●          Smile into the phone. People report they can literally hear a smile. Put a mirror next to your phone so that you can observe yourself speaking.

●          Apply strict rules of customer service. Enthusiasm, courtesy, and friendliness over the phone are not platitudes. Your business is on the line.

                  (Marketing on a Shoestring)

Punster Alert: Two silk worms had a race. They ended up in a tie. (Bishop)  

Sincerely,

Edward C. Levy,

President