Archive for October, 2008

The Ups and Downs of Riding An Elevator

Wednesday, October 15th, 2008

 

I was in Vegas over the weekend and stayed at Mandalay Bay. Fun place, not too crowded, good food and great spa (remind me to tell the story of the Laguna Beach guy who lives for cold plunge pools).

Every experience in Vegas begins with the ride in the elevator to get to your room. For a town that has more hotel rooms than any other city, one has to think that Vegas is also the only city in which an elevator is mandatory to get to your room.

For this reason, we always get two keys each at the front desk. I don’t know about you, but my key invariably stops working at the worst possible time and the only way to get another key is to take the elevator down and back up.

The elevator. What an ingenious invention. It does exactly what it is intended to go: take people up and down without having to walk stairs. The problem is that the inventor Elisha Otis didn’t take into accountability what we are supposed to do when we are in the elevator.

The Mandalay Bay elevators have a tiny TV on the right side. There is no sound. I watch people get in on the lobby level and the first thing they do is watch the TV. Billy Graham could be preaching but people would still be watching. A commercial for Fleet enemas could be playing but people would still be watching.

Our room is on the 14th floor. We have to stop on floors 4, 6, 7 and 8. The elevator door opens and closes slowly. People press the "close" button repeatedly (like that makes a difference). No one smiles. No one talks. No one looks at another person. The elevator stops at the 4th floor. A person in the back needs to get off so people move without being asked to move. The elevator starts moving back up. A commercial for an upcoming concert plays on the TV and perhaps gold coins were being given away due to the interest level.

We finally make it to our floor. I grab some stuff from the room and head to the spa on the ground level. After waiting a few minutes the elevator door opens. The elevator stops at yet more floors and more people pile in; people with suitcases, bags, briefcases and all of a sudden, the elevator is packed. No one is breathing. You certainly don’t want to use your nose. The TV is the star once again and I’m doing yoga breathing to get through this. Finally after 6 stops, I’m at the bottom floor.

Then I realized I forget my spa key in the room. HELP!

Here is what I think: Hotels should offer private elevator service at a premium price. Now that would be one ride worth the price.

Happy Wednesday!

When Free Is Too Expensive

Monday, October 13th, 2008

 

A home in Saginaw, MI sold on eBay for $1.75 last week. The seller was elated. That’s right, I said the seller, not the buyer, was elated. Why? Because the owner no longer has to worry about property taxes, upkeep, depreciation, yard work and yada-yada-yada. The sellers who didn’t even sell for a single penny aren’t happy.

I drove by a garage sale last week and noticed the sign was crossed off and a big "FREE" was written across it. The owners didn’t care if anyone offered them a single dollar for their stuff, they just wanted someone to take it off their hands. Alas, nobody wanted any of their stuff and the owners were stuck.

Starbucks has free slivers of cake and mini cups of pumpkin spice Lattes that get tossed like cold mashed potatoes after Thanksgiving.

People are saying "no thank you" to free stuff. Recently I wrote about the free sample phenomenon and while free samples are still in style, just about anything else free seems to be too expensive. What happened?

I love watching the game shows in which the contestant wins the $100,000 dream boat. The only thing is the contestant likes boats as much as getting a root canal. So the contestant is happy to forgo the $100,000 boat for $10,000 cash.

I think people have found out that there is no such thing as a "free" lunch. Or perhaps people are just tired of "stuff." Companies in our industry are always trying to give away a free tubes of hair color, shampoo, perms, nail color or anything to change the person’s mind. Does it work? Usually not.

If free is too expensive, then what’s a bargain?

Happy Monday!

Where Do We Go From Here?

Friday, October 10th, 2008

 

The BUB and I go for rides in the car. The first question she asks is “Where are we going?” I say, “Surprise.” BUB comes back, “I hate surprises. Where are we going?”

And the conversation continues that way until A. I tell her or B. we arrive at the surprise location.

The BUB and I are in New York and walk to the restaurant from the hotel. BUB asks “How long is the walk?” I say “A few blocks.” BUB comes back “A few blocks my ass, I’m not walking a few miles!” After a few blocks, BUB asks again and the conversation continues until A. I tell her or B. we arrive the restaurant (sometimes C. we get into a cab!).

As humans we hate uncertainty. We hate being stranded on the plane without knowing when the plane is going to take off. “Ladies and gentlemen, we will be departing in 5 hours” is fantastic compared to “Ladies and gentleman, maintenance is working on the  problem and we will give you an update in 15 minutes.”

When we are stuck on the freeway, we hate not knowing how long we are going to be stuck. If we hear on the radio that there was an accident and the jam will be fixed in an hour, we are thrilled. But if we hear that crews are on the scene and they don’t know when the freeway will open, we are seething mad.

Uncertainly breeds fear. Sigmund Freud’s research confirmed that fear is our worst emotion of all and that fear causes all sorts of bad things.

The stock market is today’s news. People not even in the market are talking about the market. CNN is having a field day although I thought they were the “political” news station and not the business station. Obama and McCain are backdoor news this week.

If everyone was told that the market would bottom out at 5900, we would be thrilled and go back to life. But all anyone hears is that madman Cramer telling everyone not to sell proving the point he really is a madman (his days are numbered). Ford is $2, GM is $4 and a Greek Salad costs more than both combined.

Where do we go from here? Bush doesn’t know. The Fed doesn’t know. The AIG boys might know but they are too relaxed after their spa retreat at the St. Regis. Fact is, NO ONE knows.

We have been here before. And we have survived to tell the stories. This too will be a story. Next month will be another story. But we want to know how this story will end and we want to know NOW!

Here is what I know. We will continue to move forward as a company and our 2009 strategic plan is the most exciting one I have seen since we have started as a company. We will continue to get through SAP issues. We will continue to give our customers 100% customer success.

Here is what I predict. The market will try to bottom out in the 7200-7800 range taking a full 50% off the table from its high. Oil will seek $60-$70 and gas will fall to the mid $2 range. Consumers will stay focused on survival and while everyone will celebrate Thanksgiving and Christmas, the focus on the holiday won’t be around gift-giving.

And finally, here is what else I know. The sun is shining, it will be 80 degrees on Sunday. I will be running another half-marathon next weekend and if there was a time to be optimistic, this is it. Fear is bad. No one can change history, no one can prevent what is going to happen on Wall St. All we can do is focus on we do best. Now more than ever, try that and see what happens. I’m out to break a record.

Happy Friday!

 

Fred Segal Beauty Shutters

Wednesday, October 8th, 2008

 

I remember the first time I visited Beverly Hills and Santa Monica. The year was 1984 (or close to it) and I will never forget the Giorgio store with the yellow and white awnings on the outside and security guards on the inside. That was the year they launched their signature fragrance and it became the #1 seller for years.

Walking down Rodeo Drive was quite the trip. There wasn’t an entry fee to walk the street (and still isn’t) but you felt like you didn’t belong. Some stores had locked doors and you had to be buzzed in to get in. Some stores teased you with fancy window displays but in the end, it was pure fantasy.

Santa Monica was a much friendlier place to visit and closer to the beach. The restaurants, shops and people watching was fabulous and it was also home to Fred Segal Beauty.

What Fred Segal started out and what they become is legend. It reminds me of how we started out and how we became. Fred Segal was a boutique which launched new brands like Hard Candy (remember how hot that was?); created celebrity hair dressers; had its own studio and academy and then added a spa. It was an oasis of beauty. In fact, they were to open a 100,000 sq.ft. location at the new W in Vegas but I am sure that is dream lost in the clouds.

Fred Segal will always be part of beauty history. Perhaps the name will live on as a product line was under development. With every story comes a lesson. No matter how small or how large the business, there is no guarantee of success and survival. You must make everyday a priority and commit to customer success and then, and only then, can tomorrow come.

Happy Wednesday!

Strides is Coming Quickly

Tuesday, October 7th, 2008

 

It’s hard to believe that STRIDES is a week from Saturday on Belle Isle. From our Quarterly Meeting in March to the luncheon in August, time has flown.

This year ACS is hoping for 10,000 walkers each devoted to finding a cure for breast cancer. I think one of the most amazing things about ACS and cancer is that no matter was is happening around us from the war in Iraq, to the financial mess, to Detroit politics and now national politics, the passion to find a cure remains at heart.

As a national sponsor of STRIDES, TNG is committed to do what it takes. I applaud Liz, the team captains and the hundreds of TNG talent, family and friends that will be on the island. We are also hoping for support from our customers throughout the country. To date, we have sold nearly 20,000 ACS bookmarks and have less than 3,500 left to sell.

ACS brings hope to those in need. Hope seems to be in huge supply these days. I hope to see you next Saturday and thanks for making a difference.

Happy Tuesday!

 

TNG 2.0/SAP Live Today on Schedule!

Monday, October 6th, 2008

 

After 8 grueling months in the war room, TNG 2.0/SAP is live today. Like riding the Demon Drop, getting rear ended or bungy jumping, words cannot describe the experience.

This past weekend was like Detroit getting ready for the Super Bowl. There was Joee walking around with her laptop weaving through the call center; Mo (Maureen) was hunched over a CSSR explaining how to maneuver;  Craig after doing an all-nighter with barely 90 minutes of sleep was doing fine in his office typing away like he was putting the final touches on his PhD dissertation.

Shawn was floating over the Financial Solutions department after devouring 10 Tom’s Mom’s cookies. Luckily AP rolled over to the penny and inventory came in under .2% of actual value. That alone deserved a couple more cookies which he promptly ate.

There was Pete, the owner of Entrypoint who convinced us late last year that SAP was the way to go and told us his team was going to take us to the promised land. In his bright orange shirt the same color as his face, he actually lived up to his promise–albeit a half-million more than budgeted.

There was the rest of the core team plugging away. Saturday was like being down 21-3 at half time. Stress, nerves and M&M’s doing down at all time highs. But the TNG team stuck together and knew they were going get through this and win.

Sunday came and spirits rose like Halloween eve and the goblins and monsters were struck down. People were actually smiling and grinning and Pete was actually "cocky." After working tirelessly, many left around 3:30PM to get some rest. Final score: TNG won by two touchdowns (unlike the Lions who lost by four).

Today marks a new beginning for TNG. There will be issues, cracks, and a few ghosts trying to rear their ugly heads. But we will prevail as we always do.

TNG 2.0/SAP is real. Thank you, thank you, thank you!

Happy Monday!