Newsletter Editor: Bill Rappleye Draper Area Chamber of Commerce Production & Printing Rick & Lisa Naylor Travis Baker South Valley Printing, Inc. Photos & Processing UDraper Chamber U

 

 

www.draperchamber.com

 

 

 

Are you having fun yet?

The recession drags on and our Federal Government is spending much of its time and energy arguing about change.  We need change but, the first thing we need to change is the lack of consumer purchasing.  We all know the Auto industry is in the dumpster and has received tax payer loans to stay in business. Housing is making a minor comeback but, it is very hard for most people to qualify for loans because of tougher standards.

There are some small glimmers of hope peaking through the gloom; consumer spending was up almost 2% last quarter. This a very small positive sign but not a game changer.

 

What can you do as a small business in Draper/Utah to increase your chance of not only surviving this extended recession but thriving, and finding increased market share for your business.

The Chamber hosted a free seminar in February about how to brand your business by M2 Results.  Mr. Bill Brady gave a great presentation about 10 Steps to Building Brand Value for Small business.

I will bullet them below for you;

• Know your market
• Know yourself
• Differentiate
• Define your core essence
• Understand the benefits your brand offers
• Stake a brand position
• Create branded experiences
• Analyze your touch points
• Articulate your messaging
• Train and protect

Feel free to call M2 Results at 1-801-208-0202 and ask for a free in person consultation.

 

We are starting to see more new businesses opening in Draper since the first of the year. These will add much needed jobs to our city, many of which will be middle to upper level pay! 

The question that is asked most often is “how do I hang on”! There is no easy answer to this question but, I can tell you if you quit trying you will not survive. Keep this in mind, when the economy shakes out players in the market the businesses that are able to be responsive and creative can increase their market share.  It may be necessary to change the product and or services you offer or revisit your pricing structure, and then focus on your new brand strategy. Key into how the market has changed and exploit these new and emerging trends. Direct mail for example is predicted to make a big comeback in 2010.

The Draper Utah Chamber of Commerce is making some changes of our own with several membership levels now offered. This is a direct response to our own internal analysis of market potentials and trends.

It has not been an easy couple of years but with the right tools and attitude we can and will emerge better and stronger!

 

I’m “Bully on Business” are you?

Sincerely,

William E. Rappleye

President and CEO

Draper Area Chamber of Commerce

 

Executive Briefing
Economic & Consumer Insights for Draper Chamber Member Executives

February 2010 (Respondents surveyed 2/2 - 2/9/10)

Talking Points:
§  Confidence in the economy drops 3 points
§  Practicality/focus on needs eases in February
§  Consumers still wary about the job market
§  Two in five aren’t saving enough for the future
§  Kohl’s is closing the gap in Women’s Clothing
§  Consumer Migration: Electronics
§  Toyota Recall: 40% of auto shoppers considering other brands
§  What’s Hot? Super Bowl XLIV or Jersey Shore?

 

Economy

As the snow blankets much of the nation and temperatures drop below freezing, consumers are giving the economy a similar frosty reception...this month, those very confident/confident in chances for a strong economy drops to 27.2%, nearly three points lower than last month (30.0%) and the lowest reading recorded since Jul-09 (also 27.2%). While confidence has improved from a year ago (19.4%) as well as Feb-08 (26.2%), keep in mind that the majority (53.2%) was confident back in Feb-07.

Perhaps the goodwill directed toward aiding Haiti is helping alleviate worries about political and national security issues…in February, one-fifth (21.3%) report that they continue to be concerned, down from last month (24.0%) as well as Feb-09 (24.8%).

Retailers can breathe a short sigh of relief, focus on practicality when purchasing has eased this month…while two in five (43.3%) still admit they are practical purchasers, this figure has dropped from the near majority who asserted the same in January (49.7%) and Feb-09 (50.0%)…however, it remains heightened from Feb-08 (40.2%).

Not surprisingly, those focused on needs over wants when spending are also in decline…in February, the majority (52.1%) is keeping the necessities in shopping carts, though this reading has fallen eight points from a month ago (60.2%) and more than five points from a year ago (57.6%).
 

Personal/Financial

While the U.S. unemployment edged downward in January, consumers still appear a little wary about the labor pool…this month, 30.6% contend there will be “more” layoffs over the next six months, just slightly lower than January (31.0%). About half (49.4%) believe layoff levels will remain the “same,” rising from 45.8% last month, while a decreasing number of consumers (20.0%) are optimistically predicting “fewer,” compared to January’s 23.2%.

Those with personal concerns about becoming laid off edge upward from January (4.4%) to 5.0%... this number is still well below Feb-09’s record-setting 10.6%.

Paying down debt remains the priority over the next three months for more than a third of consumers…in February, 35.1% declared their desire to put a dent in their debt, lowering from 37.9% last month. Those planning to decrease overall spending declines sharply from a month ago (37.0%) to 30.0%...increase savings (27.9%) and pay with cash more (21.5%) also weaken from 30 days ago.

While fiscal conservancy diminished in February, this doesn’t mean that consumers are feeling better about their financial standing…two in five (42.3%) say they aren’t saving enough to meet their future needs (compared to the 26.2% who say they are). Additionally, 41.3% say their personal financial situation is “worse off” compared to a year ago (14.0% contend they are “better off.”) And the icing on the cake: nearly half (49.0%) say they have too much month at the end of their paychecks “all” or “most” of the time. 

The DJIA drop at the end of January appears to have rattled investor confidence this month…in February, 51.5% of investors say they would definitely/probably invest in the stock market, lowering three points from last month (54.6%), but still gaining from Feb-09 (42.0%).

While gas prices have remained relatively stable in the mid-$2/gal range, consumers continue to retain the smart shopping habits they adopted when pump prices were nearly double what they are today…more than a third are shopping for sales more often (40.3%), taking fewer shopping trips (39.6%), shopping closer to home (37.7%), and clipping coupons with greater frequency (36.9%). Additionally, nearly one in three (31.8%) continue to opt for more store brand/generic products.

And, drivers are remaining somewhat cautious about the future direction of prices at the pump…two in five (43.4%) predict that gas prices will rise through St. Patrick’s Day. Half (51.3%) contend they will remain the same, while only 5.2% are optimistic about a decline. The estimated pump price at the wearing of the green is $2.88/gal, about $0.25 higher than the current national average ($2.641/gal, source: AAA).
 

Retail

Interesting, while practicality and focus on necessities have declined in the past year, when it comes to clothing, consumers remain bent toward buying bargains…in February, one in four (25.9%) says they only buy clothing on sale (up slightly from 25.1% in Feb-09), while one in ten (11.5%) contends that sales aren’t important (down a point from a year ago). The majority (62.6%) continues to “usually” shop for specials.

In Women’s Clothing, Kohl’s continues to close the gap between it and #1 Walmart…this month, one in ten (10.4%) shops the department store most often, less than a point behind the 11.1% who prefer the discount behemoth. JC Penney (6.5%), Macy’s (5.3%), and Target (2.7%) follow.

One year ago, Walmart (11.5%) led Kohl’s (8.5%) by three points in this category…so what consumer group contributed to the share growth for Kohl’s? According to the latest Retail Ratings Report for Women’s Clothing, consumer share for the department store increased nearly 30% over a year’s time among upper income households (those earning $50,000+/yr.) Click here for a sample: http://www.bigresearch.com/big-cias-rrr-jan10-womens.pdf

To learn more about the Retail Ratings Reports (available for 12 major merchandise categories), call 1-800-800-4462 or visit us on the web at www.BIGresearch.com.

The situation is a little less catty over in Men’s…Walmart (15.3%) and Kohl’s (9.9%) are tops in this category, with both retailers gaining from the previous year. JC Penney (8.4%), Macy’s (5.3%), and Target (3.1%) complete the Top 5.

It’s more of the same in the Children’s sections as well, though Walmart (12.3%) carries a substantial lead over #2 Kohl’s (4.9%) as well as Target (4.1%), JC Penney (3.0%), The Children’s Place (1.6%), and Old Navy (1.6%).

And, it’s the discounter over the discount specialty this month in Shoes…with 10.8% shopping there most often, Walmart trumps Payless (9.7%) by just a point. Kohl’s (6.0%), DSW (3.9%), and JC Penney (3.5%) continue to trail.

Switching from softlines to Electronics, Best Buy continues as consumers’ top pick…35.7% of shoppers head to the big box most often, leading #2 Walmart (20.9%) by nearly 15 points. Both retailers, though, maintain substantial share over the rest of the Top 5: Amazon.com (3.0%), Sears (2.5%), and Target (2.5%). It should come as no surprise that seven in ten (73.3%) budget-conscious consumers opt for their favorite Electronics store based on price…selection (56.1%), location (43.5%), and quality (39.0%) follow.

Will Best Buy remain on top in the long-term? Review the insights from our Consumer Migration Index (CMI) for Electronics this month, and you’ll find who is gearing up for future growth...the CMI, which tracks those who have immigrated to a store (new customers within the past year) against those who have emigrated (left within the past year), and where a positive rating spells net growth to a retailer, shows that with a +3.9 rating, Walmart has enjoyed a net customer gain in the past year (likely from the demise of brick-and-mortar Circuit City shops), while Best Buy’s growth was a little weaker (+0.9):

Besides the obvious reason to switch (the downfall of Circuit City), what other issues had consumers shifting loyalties among Electronics retailers? High prices (24.2%) were the top culprit, followed by inconvenient location (11.7%), poor customer service (11.6%), poor selection (7.8%), and unknowledgeable salespeople (6.9%).

With the Winter Olympics upon us, where might we expect inspired spectators to head for new ski equipment, snowboards, or perhaps a pair of ice skates? More than one in ten (12.9%) say they shop Walmart most often for Sporting Equipment/Exercise Equipment, besting the 11.8% who shop big box Dick’s most often. Sports Authority (4.9%), Big 5 (3.0%), and Academy (2.8%) follow.

That big discounter continues to lead traditional grocers in the foodstuffs aisle...nearly one in five (17.4%) contend they shop Walmart most often for Groceries, more than double the share of second place Kroger (6.4%). Publix (3.5%), Safeway (2.5%), and Meijer & Shoprite (tied, with 2.3% each) round out the Top 5.

With nearly two in three (63.6%) regularly or occasionally shopping for Organics, what types of eco-conscious items might we find in these consumers’ carts? Produce (52.2%) is most likely to top shoppers’ lists, followed by breads (31.4%), cereals (30.0%), dairy products (28.1%), juices (27.7%), and meat & poultry (27.5%). Walmart (10.6%), naturally, is the top store shopped for Organics, followed by Whole Foods (7.6%), Kroger (5.7%), Trader Joe’s (5.6%), and Publix (2.6%).

With triple the share of its nearest competitor, Walmart will likely be sitting pretty in Health & Beauty Care for the long-term…with 28.8% shopping there most often, the big discounter leads CVS (8.8%), Walgreens (8.5%), Target (6.3%), and Rite Aid (3.3%).

Druggists, though, still corner the market on Prescription Drugs…Walgreens (15.5%) and CVS (14.7%) lead here, followed relatively closely by #3 Walmart (11.0%). Rite Aid (5.3%) and Target (2.0%) complete the Top 5.
 

Future Purchases

There were a few bright spots this month from a retailer’s perspective (i.e. fewer focused on practicality, necessities, fiscal conservatism), which appear to be buoying the 90 Day Outlook from last month and last year for most categories, according to the BIGresearch Diffusion Index (those who say they’ll spend less subtracted from those who’ll spend more). But rattled confidence in the economy and continued concerns with unemployment continue to depress the Outlook compared to Feb-08:

Retail Merchandise Categories - 90 Day Outlook
(Feb-10 compared to Jan-10, Feb-09, and Feb-08)

Don’t let the decline in practicality and focus on necessities fool you – consumers are still wary about doing any high dollar spending in the next six months…compared to a year ago, purchase intentions have declined for vacation travel, TVs, major home improvement/repair, and housing. Computer, home appliances, jewelry/watch, RV/boat, stereo equipment, and digital camera remain flat. Autos and furniture are lone categories up from a year ago.

With the Toyota recalls all over the news lately, wouldn’t it be fascinating to know if this is affecting potential auto purchasers? Read on…two in five (40.2%) consumers who are planning an auto purchase contend that the recalls have made them reconsider brands other than Toyota as their first or second choice automaker. Among those who have become wary of Toyota, the top makes in consideration are Ford (16.0%), Chevrolet (12.0%), and Honda (11.1%).
 

What’s Hot…Not

With a record number tuning in for the Saints/Colts turf war early in the month, it should come as no surprise that Super Bowl XLIV ranked #1 in our list of What’s Hot this month…Sandra Bullock and Valentine’s Day fared well, too. Tim Burton’s Alice in Wonderland and the Apple iPad are highly anticipated among those under 35, while men 35+ are gearing up for the Daytona 500. What’s Not? Although fairly popular with the under 35 crowd, 80.8% of consumers are waiting for the cast of Jersey Shore to take their trite talk and tacky spray tans off the airwaves.
 
BIGresearch, LLC. a Prosper Company

450 West Wilson Bridge Rd., Suite 370, Worthington, Ohio 43085

Multiply Your Success

How to effectively market your business through the Chamber. 

 The following marketing resources are available to all Draper Chamber members. For more information, contact the Draper Chamber office.
801-553-0928 Ext 101

    Free Press – Submit a press release to the Draper Chamber’s quarterly printed newsletter for publication     in an upcoming issue. Email in 50 words or less article to “Email to the Editor” at wrappleye@integraonline.com. Articles are added as space permits.

     Free Press Kit – Want some guidance on how to write a press release and ideas on where to send it once it’s written?  Contact Bill at the Draper Chamber (Bill, 801-553-0928 x101)  

      Advertise your business in the Draper Chamber’s “Membership newsletter. Read by over 400 business   professionals.  Small articles and notices are FREE (Call Bill, x101)  

Newsletter Ad Space – Grab attention by linking to the distribution of the Draper Chamber’s newsletter.  Have your message sent to over 1000 business professionals. Business card ads $110.00 per year or $35.00 per issue for members!  Non-Chamber Members can place an ad for $220.00 per year or $75.00 per issue.

        (Rates based on 4000 impressions per year)

 

Preprinted and folded  8 ½ “x 11” insert for only $110.00 per issue for Chamber members, Non-Chamber members $220.00 per issue.

Limit two inserts per- issue. (Rates based on 1000 inserts per issue.)  (Call Bill, x101)  

      An automatic benefit included in your membership is having your business listed on the Membership Directory Website Page with a free link to your website.  

    Mailing Labels – Increase sales by creating a direct mail campaign targeting fellow Chamber members.  Contact the Draper Chamber office to purchase a set of mailing labels listing all member company names, main company contact and address for $35.00 per set. Add $4.00 shipping charge if mailed.  (Jolene, x100)  

     Be a Sponsor – Sponsor a Draper Chamber event to promote your business.  A variety of sponsorship packages are available to meet any sized budget and target audience.  For example, sponsor our annual Chamber Golf Fun-d from a prize sponsor (in kind donation of prizes, to the VIP Sponsor $2000.00 for package.  Receive your company name on the Calendar of Events Website, newsletter recognition and mention during the program.  Donate a door prize to be awarded at a door prize at the General membership luncheon and get an up-front spotlight during the drawing.  Sponsor a golf hole at the spring outdoor golf tournament for $250.00.  Be the main sponsor at a signature event – costs vary per event/sponsorship package. (Contact Bill, x101)  

    Seal of Credibility - Add the Draper Chamber’s logo to your website and/or include it on your email signature; “Proud member of the Draper Utah Chamber.  More than one member has received business because they made known their affiliation with the Draper Chamber.   (Bill, x101)  

     Lapel Pin - Announce your affiliation to the Draper Chamber by wearing the exclusive DACC gold and blue lapel pin. Available only to DACC members for $5.00 or 3 for $10.00.  (Bill, x101)   

    Business Card Display – All members are welcome to place up to twenty business cards in the display box located in the Draper Chamber’s business office.  To cultivate leads, members can select cards from other businesses.  Visit anytime (open hours vary).

    Membership Directory – Generally members receive one free listing our annual Draper Community Guide and Calendar. This four-color, widely used resource is a great way to keep your message in front of the Draper residents and Chamber members throughout the year.   Ad space available at discounted rates through the publisher, POSTED PUBLISHING a Draper Chamber member.  (Contact Bryan Thatcher, at 801-268-0485

 

Business TIP from, Canyon Business Communications

The exciting thing about doing business is the people that stand at the heart of it. I’ve always heard that the key to business success is location, location, location and yet--a good location won’t help you if you don’t have professional business and interpersonal communications skills. The success we want depends on building credibility, maintaining solid employee relations, building strong teams, and expanding our loyal client base. How we present ourselves both within and without our organization can make the difference in increasing our net profits. With more managers taking on added responsibilities while utilizing a smaller workforce; vital practices such as training and education often get put off until tomorrow. And with new technology we need to learn another set of business etiquette.

 

I’m Kim Clark with Canyon Business Communications and I’m new to the Draper Chamber of Commerce. My business focus is in training others how to effectively communicate for success. Some of the services I offer are workshops for customer acquisition and retention, hiring practices for good customer service, team building, written business etiquette, principles of team building, interdepartmental cooperative work and communication skills, and most importantly how to create a company culture you can be proud of. Sometimes we just need an outside perspective, or even a refresher course and sometimes, we just don’t have the time to do it all ourselves.

 

Today, I’m offering to the first ten companies to respond to this article, a one hour consultation (a value of $75.00) for free. You can contact me either through email: kim@canyonbusinesscomm.com or call me:

801-859-1186. I’d also like to invite you to visit my website:

www.canyonbusinesscomm.com. Yes, I blog.

 

Remember: location is geography and while it’s important--good communications is the life blood of your business.

 

 

 From the Board Room

Dear Chamber Member:

We want you to know that your membership is most welcome. We are now truly "Partners In Progress". Please feel free to call us at any time if we can be of service.

Many luncheons and events are planned throughout the year to be an aid to you in helping you get acquainted with our Chamber of Commerce and its members.

We would sincerely appreciate your comments concerning the Chamber - its staff - or its programs. Suggestions are always welcome and will be greatly appreciated.