No. 8 August 2009

How do you gain respect? Bret Simmons, a professor at the University of Nevada at Reno, suggests that you have to earn it. He says, “Respect is one of those things that too many managers and leaders think they are entitled to because of their experience, position or title.”

“Respect should never be demanded or even expected. To the extent you sow respect in the lives of others, you will reap respect in your own.”

“The paradox of respect is it is only something you can give away.” Isn’t that a powerful statement?

Police in Wells, Maine, recently arrested a man on a drunk-driving charge after he mowed his neighbor’s lawn with a riding mower – without consent. I wonder if the neighbor waited until his yard was completely mowed before he called the police? Wouldn’t you?

MTD Products recently sent a letter to all of its contracted service centers, announcing the addition of the Remington brand of electric- and battery-powered products to their stable of brand names and products. It’s a good move for MTD.

DESA Remington made electric or battery powered chain saws, pole saws, string trimmers, blowers, blower-vacs, cultivators, hedge trimmers, and other related accessories. It will be interesting to see what electric- and battery-powered products MTD will unveil this fall. MTD won’t be the last OPE manufacturer to get into this growing product niche. We’re going to see more and more battery-powered outdoor power products in retailers in the coming years.

My son recently bought a battery-powered lawn mower for his small yard. You would think by now that people would have seen battery-powered push mowers, but he told me that every time he mows, neighbors stop, watch, and listen. He still puts on a show for them, stopping and starting the electric motor instantly with a simple movement of a lever. He laughs, saying it’s almost a traffic-stopper. Who would have guessed?

Our dealers, many of whom swore their customers would never buy a battery-powered mower, are selling them like hot-cakes. You and I know not every customer that walks into your store is a battery-powered mower prospect, but as I mentioned in my August 2008 column, you might want to put a few on your showroom floor. You may be pleasantly surprised at how the quality has improved and consumer interest has grown over the past year or two.

Here’s a recent newspaper article headline I saw on the Internet from the Killeen Texas Daily Herald: “Texas small engine repair shop thrives on lawn mowers in summer.” Doesn’t that make you just want to say “Well, duh!”

In a recent Blog on leadership, Rick Johnson listed some key attributes of leaders. He said “Effective leaders are consistent, explicit and concise and they command a presence when they walk into a room. But, they are not arrogant and ego driven.”

“When they move on, others want to go with them. Their openness and honesty creates a legacy which people admire and look up to. They gain commitment and foster trust.”

Johnson went on to say that arrogance is something leaders should avoid at all costs. “If you start to believe that you are special and nobody is as good as you, just look at the number of people in your industry, in your state or in your country. Then ask yourself how many of these people even know your name. Unless you’re Tom Cruise or Angelina Jolie, chances are that not many people really even know who you are let alone actually care how good you think you are.”

“Good leaders listen at least twice as much as they talk. They take the “I” out of their vocabulary. They model themselves after the most respected people in their industry, not the most successful, because success does not necessarily mean respect.” Sounds like good advice to me.

No. 7 July 2009

In recognition of the 50th anniversary of Outdoor Power Equipment (OPE), I have to take a minute to reflect about this magazine’s founder, Bill Quinn, a publisher, editor and writer extraordinaire, who never saw a topic he wouldn’t or couldn’t write about. His “Partly Personal” column in each monthly issue of OPE magazine was required reading by everyone in the industry. And I do mean everyone.

He and I traded correspondence often (there was no email service back then) and he was always willing to share what he knew with a young twenty-something newbie to the industry. Eventually he came to recognize me at sight, and I was always honored when he’d speak with me at a lot of the early industry shows in the 70’s and 80’s. He was a unique person with a unique style of writing. And while he wasn’t afraid to “ruffle a few feathers” from time to time, you couldn’t help but agree more times than not with his common sense perspective.

If you liked Roger Stewart and The Southern Lawnmower Dealer Newsletter, you would love Bill Quinn. While there will be no one quite like him ever again, his legacy lives on in this magazine he loved. I’m glad it’s survived and continues to thrive in these uncertain times under the able leadership of Steve Noe. Now if we could just get Steve to tell some really corny jokes like Bill Quinn did!

Ed Lemco wrote recently that tough times require tough dealers. Many power sport dealers he knows are down over 50% in gross revenue this year. And he said their survival won’t result from simply “working harder.”

He added “Whatever the number of qualified buyers you are getting into your dealership, you cannot afford to waste any of them. This new type of buyer takes a whole lot more attention and energy from you than they did years ago. The first reaction you should have when times are tough is to increase sales effort, followed by cutting costs. Don’t wait on your OEM’s or your government to solve your problems. Stay focused and determined while maximizing your sales efforts with each and every customer that walks in your front door.”

I read all the call reports from our sales-people who call on our dealer and service center customers. Recently, a salesman asked our controller to raise the credit limit for one of our dealer customers. In explaining why the customer deserved the credit limit increase, the salesperson also mentioned that the dealer had been “late in paying us at times.”

I do not get involved in making credit decisions. For good reason, I believe that credit and credit limit decisions should be left up to our people who get paid for doing that and who have the experience to make good decisions about customer credit - and that’s not me.

But this recent request got me thinking about what criteria we have and use to make credit limit decisions for a customer who has established credit with us. We most likely don’t know this customer as well as our sales person does. What we do have is a payment record and a purchase history for this customer, as well as experienced accounting people who have made these decisions regularly and know historically what happens as a result.

Every time you make a transaction with a supplier, whether you buy something, return something or pay for something, you are creating a transaction history for your business and yourself. And it’s that history of your interaction with your suppliers that they use to guide their relationship with you. It’s not my history, but your history that counts. And that history can make it easy or very difficult to increase your credit limit. It’s really that simple.

On September 10, 1945, Mike, a young Wyandotte chicken, was about to become the dinner of farmer Lloyd Olsen of Fruita, Colorado. With a sharp ax in hand, Mr. Olsen firmly held Mike, preparing to make the bird ready for his wife Clara’s cooking pot. Mr. Olsen swung the implement, thereby lopping off a great deal of poor Mike’s head. Mike shook off the event, then continued trying to peck for food, believe it or not for the next year and a half.

Every year since that amazing day in 1945, the town celebrates Mike’s story with an annual Mike-the-Headless-Chicken Festival.

As part of the 2009 Festival there was a 5K “Run-Like-a-Headless-Chicken” race, Chicken games, a Chicken dance contest, a car show, arts and crafts displays and a lawnmower race. The famous “Good Egg” award was presented to a worthy Fruita citizen. And there was a “Chick Olympics” with categories including an egg toss, a peep-eating contest and a wing-eating contest followed by a Chick Olympic awards ceremony.

Even today, Mike’s will to live remains an inspiration to the citizens of Fruita. As one citizen put it: “It’s a great comfort to know you can live a normal life, even after you’ve lost your mind!” I guess there’s hope for some of us after all.

No. 6 June 2009

I saw some interesting data regarding the secondary costs of ethanol use in the June 2009 issue of National Geographic magazine: “The corn used to make a 25-gallon tank of ethanol would feed one person for a year,” as well as, “Federal mandates for corn-based ethanol soaked-up 30 percent of the 2008 US (corn) crop, helping send corn prices over eight dollars a bushel last year – triple the 2005 price.” Love the effects of government mandates and subsidies!

I was recently reading about the "Law of Empowerment" that states, “Only Secure Leaders Give Power to Others.” What kind of leader are you? Do you find it easy to empower your subordinates?

Weak and insecure leaders resist empowerment because they worry that they will become expendable if they train talented subordinates. Weak and insecure leaders view change as a threat, not an opportunity. And weak and insecure leaders resist anyone they believe threatens the self-esteem they receive from a title or position.

“Today, at a time when managers must do more with less - less people, less budget, less margin for error - leaders have no choice but to empower followers to share the load. Insecurity simply isn't compatible with survival. Even so, human nature resists empowerment.”

The article closed with a quotation on empowerment from decorated war hero and former vice presidential candidate, James B. Stockdale. He said, "Leadership must be based on goodwill... It means obvious and wholehearted commitment to helping followers... What we need for leaders are men of heart who are so helpful that they, in effect, do away with the need of their jobs. But leaders like that are never out of a job, never out of followers. Strange as it sounds, great leaders gain authority by giving it away." What a terrific quote. Great leaders gain authority when they give it away to others.

I miss the quarterly OPE industry shipment reports and forecasts once issued quarterly by the Outdoor Power Equipment Institute (OPEI,) the OPE industry’s manufacturer association. An industry friend told me recently that the OPEI board decided in 2008 to no longer issue the shipments information and industry forecasts on a public basis. Left to our own devices and without any prominent public notice about stopping the issue of these reports, one would tend to think the worse. I think this action sends the wrong message. OPEI probably hopes their decision doesn’t send any kind of message. They’re wrong.

Here’s a recent prediction on the upcoming hurricane season from the National Oceanic and Atmospheric Administration (NOAA) that made me pause. In a forecast discussing the uncertainty in the 2009 hurricane season outlook, “NOAA cited a 50 percent probability of a near-normal season, a 25 percent probability of an above-normal season and a 25 percent probability of a below-normal season.” Now that’s what I call a safe bet!

Briggs & Stratton recently rolled-out the Partners Standard Protocol (PSP) technology that lets their power products dealers communicate directly with suppliers using their computerized business management systems. The PSP system was developed in 2002 and is administered by the Motorcycle Industry Council (MIC). PSP is currently used by RV, marine, and power sports dealers and their suppliers.

Many industry pundits hope PSP becomes the OPE industry standard communication protocol. Will our industry manufacturer association, the Outdoor Power Equipment Institute (OPEI,) become the promoter and cheerleader for this or other viable communication standards like the MIC did? Does this industry still need a standard communication protocol?

In a recent newsletter, Harvey Mackay (http://www.harveymackay.com/), shared James Barksdale’s “Three Snake Rule.” I think you’ll like it.

“James Barksdale, former CEO of Netscape, was a charismatic manager whose maxims endeared him to his employees.

One of his favorites was formulated at a management retreat soon after he took over Netscape. It's known as his three-snake rule:

The first rule: If you see a snake, kill it. Don't set up a snake committee. Don't set up a snake user group. Don't write snake memos. Kill it.

The second rule: Don't play with dead snakes. (Don't revisit decisions.)

The paradoxical third: All opportunities start out looking like snakes.”

These rules should bring a smile to your face and a realization of how true they are.

No. 5 May 2009

Who has money to buy a tiller in this bad economy? Apparently a lot of people do. And they are looking to their backyards to help stretch their food budgets. It’s the return of “recession gardens.”

The National Gardening Association said recently that 43 million American households will grow their own fruits, vegetables, herbs and berries in 2009. That’s up 19 percent over last year. W. Atlee Burpee & Co., the largest seed and gardening supply store in the country, says it has seen a 24 to 30 percent spike in vegetable seed and plant sales this spring compared with last.

About 20 per cent of these gardening households will be gardening for the first time. They can expect a $70 investment in a garden to yield about $600 in produce for the year if they know what to plant, when to plant it, how to deal with different soil types and how to care for the garden.

And therein lies your opportunity to become a gardening resource for your customers, most of whom grew up in an era where there was no need to learn anything about horticulture or agriculture. You can help them get into vegetable gardening by helping them purchase the best size tiller that meets their needs. You can sell them vegetable seeds and plants, and perhaps specialized fertilizer for different plants in their garden. Offer them a small selection of how-to gardening books. They’ll come to depend on your expertise and knowledge.

Hopefully you planned ahead and have a few tillers and small cultivators on display. If you’ve really prepared, you also have vegetable seeds and plants and fertilizer on your shelves. For those that plan ahead and take advantage of available opportunities found even in difficult economic times, there will be happy customers in your store and dollars in your cash register this spring.

There’s an ongoing debate about increasing the percentage and use of ethanol in our gasoline. Here’s one unintended consequence of higher ethanol usage that will hit us right in our pocketbooks. The nonpartisan Congressional Budget Office stated in early April that “Higher use of the corn-based fuel additive accounted for about 10 percent to 15 percent of the rise in food prices between April 2007 and April 2008.” That could mean the government will have to spend up to $900 million more on food programs for the needy during the current budget year that ends September 30. Aren’t we fortunate the money printing presses are running 24 hours a day?

Husqvarna recently unveiled a new robotic lawnmower that has a phone integrated in it that sends text messages when it wants to talk to you. I’ve never had the desire to carry on a conversation with my lawnmower, although I’d be the first to admit I have spoken to it before, often rather harshly.

Is this what the future of mowing grass will be like? I’m getting ready to mow the yard on Saturday morning and my cell phone rings. It’s my mower calling with a text message. “Good morning, Joe. I really don’t feel like mowing the lawn this morning. Isn’t there something else you could do instead?” Or the message from my mower could be even worse! “Good morning, Joe. I know you’ve been looking for me everywhere, but I don’t feel like mowing today. And I’m not going to tell you where I’m hiding. Have a nice day.”

By the way, the Husqvarna Automower 260ACX is currently available in Europe only, but will eventually be made available in the United States.

With spring here and planting season in many places just around the corner, I came across a garden plan for life that you might consider for 2009. First, plant three rows of peas: passion, performance and persistence. Then three rows of squash: squash gossip, squash indifference and squash criticism. There should be three rows of lettuce: Let us be true to our obligations, let us be unselfish, and let us be loyal. Next, plant four rows of turnips: Turn up when needed; turn up with determination; turn up with a vision; and most of all, turn up with a smile. To complete your garden, you must have thyme: time for fun, time for family and friends, and time for yourself. Water freely with patience and cultivate with affection. If you do all this, you will reap what you sow. Don’t you agree?

No. 4 April 2009

When Echo and Shindaiwa formed their alliance in 2007 and a holding company called Yamabiko was created in 2008 to umbrella the two companies into even closer cooperation, I suggested in this column that these were only the first steps leading to a full merger. On March 16, 2009, it was announced that operations of both companies will be merged in Japan under the new company name Yamabiko, and that Shindaiwa’s North American operations in Tualatin, OR, will be merged with Echo’s operations in Lake Zurich, IL, both by October 1, 2009. For the time being, we will continue to see both brands in the marketplace. And that’s good news.

The sad news coming out of this merger is that Shindaiwa’s president, Tom Bunch retired effective March 31, 2009. I met Tom many years ago at a Board of Directors meeting for a service dealer organization in Texas. I never sold a piece of Shindaiwa equipment, but it didn’t matter to Tom. He was always kind, respectful, and full of knowledge about the industry that he didn’t mind sharing. Wherever I ran into him, he was always ready to talk about his company and his industry. I sat in his office more than once, talking with him about the industry we both loved. Thank you, Tom, for being a friend and sharing your knowledge and advice. Your industry and your friends will miss you.

I recently read a headline that said consumers are changing their shopping habits. My first thought: “You mean like not shopping at all?” My question was answered in the article’s opening statement: “American consumers aren’t going to the shopping mall anymore.” Now that’s a change.

One curious thing the article mentioned is that as people shop they are putting things in their basket as they move through the store and then taking them out when they get to checkout or dropping them off in another section of the store. That’s why you’re seeing messier stores. Maybe they have “buyers regret.”

People who were never to be found shopping at a Trader Joe’s or ALDI or Goodwill or the Dollar Store, are now willing to shop down. Also people are much more willing to consider buying something used or previously owned than ever before.

Store inventories are being reduced. Bigger stores require bigger inventories, so store sizes are also being reduced. And retailers are learning that they have to be more female friendly. If females are truly the family purchasing agents, retailers better become more female friendly very quickly.

As the use of public transportation increases in the United States, its affect on shopping could be profound and often positive. For example, there’s a Swedish supermarket chain where you can shop at lunchtime, and put your purchases in a refrigerated locker. When you go home after work, you just stop off, pick up your bags, climb on the train and go home. That’s a great idea that works well and makes lots of sense. I suspect that someday we’ll welcome ideas like this one in the United States.

No one really knows how long the current recession will last or whether the economic recovery will be gradual or dramatic. This makes planning your sales and marketing strategy for the balance of 2009 and 2010 more difficult than usual.

If you don’t have a long term vision of where you want to take your business, then decisions you make about direction and strategy don’t really matter. The Cheshire Cat in Lewis Carroll’s Alice in Wonderland knew that. When Alice came to a fork in the road, she didn’t know what to do. Just then, she noticed a Cheshire cat in a tree and asked him, “Which road do I take?” “Where do you want to go?” the cat responded. “I don't know,” Alice replied. “Then,” said the cat, “it doesn't matter.”

Don’t be like Alice. Know where you’re going and why you want to go there. When you come to a fork in your road, you’ll already know which direction you want to go and why.

Vincent Van Gogh failed as an art dealer, flunked his entrance exam to theology school, and was fired by the church after an ill-fated attempt at missionary work. In fact, during his life, he seldom experienced anything other than failure as an artist. Although a single painting by Van Gogh would fetch in excess of $100 million today, in his lifetime Van Gogh sold only one painting, four months prior to his death.

Before developing his theory of relativity, Albert Einstein encountered academic failure. One headmaster expelled Einstein from school and another teacher predicted that he would never amount to anything. Einstein even failed his entrance exam into college.

Prior to dazzling the world with his athletic skill, Michael Jordan was cut from his sophomore basketball team in high school. Even though he captured six championships, during his professional career, Jordan missed over 12,000 shots, lost nearly 400 games, and failed to make more than 25 would-be game-winning baskets.

Failure didn't stop Van Gogh from painting, Einstein from theorizing, or Jordan from playing basketball, but it has prevented many people from reaching their potential. Don’t be one of them.

No. 3 March 2009

In 2007, when I found out that Platinum Equity was about to purchase Tecumseh, I stayed near my phone, hoping that its representatives would call me and I could give them the following free advice: “Don’t do it! If you want to sell engines or own a company that makes engines, buy an engine company in China or buy engines from an off-shore engine manufacturer or buy Briggs & Stratton. But don’t buy Tecumseh.” I never got the call, but then again I don’t make the “big bucks” (not that I wouldn’t like to have charged $5 million for that advice!)

I wonder if my fee is less than what they’ve lost on Tecumseh since they bought it, including selling the Peerless division to Husqvarna and the remaining assets of TecumsehPower to Certified Parts Corporation (CPC) in February.

I am glad to see Certified Parts buy TecumsehPower. There’s something comforting about a proven national parts distributor for recreational equipment buying TecumsehPower assets to get into the Tecumseh parts business. CPC should be very good at parts distribution and Tecumseh engine end-users, service centers and distributors should benefit.

On the other hand, when I see CPC owner Jim Grafft make comments about getting into the engine business, I worry that he doesn’t get “it” (the engine business) any better than Platinum Equity did. Fox example, Grafft told The Janesville Gazette that down the road his company could produce engines locally, a step that would rev up the potential for new, well-paying jobs. Grafft also said that in order to build engines, he would need to study the market and determine the players and their relationships with engine companies. “A lot of these relationships go back years, but there are certainly some smaller original equipment manufacturers – even bigger ones – that don’t have relationships with engine companies.”

Here’s an old-timer’s free engine advice to Mr. Grafft - advice that would normally cost anybody else at least $5 million: “Don’t try to be an engine manufacturer. Stick to parts, make a lot of money and keep Tecumseh engine owners happy.”

I know that Mr. Grafft didn’t buy TecumsehPower to lose money. I suspect he paid a lot of money for it. And I know he’s thinking of every conceivable way to make some of that money back. But my free advice stands. He will look back and regret the day he becomes a domestic engine manufacturer instead of just becoming the Tecumseh parts supplier.

By the way, I’m rooting for Mr. Grafft to be a success at whatever he decides to do with TecumsehPower. It will be a positive reflection on this industry if he and we can keep the users of Tecumseh engines satisfied and happy, create new jobs, put people back to work, and create enterprise value.

Every Friday afternoon between 5 PM and 7 PM, the Edison Lounge in downtown Los Angeles serves customers complimentary grilled cheese melts and tomato soup as well as 35-cent Depression-era cocktails, such as the “401(K),” a gin cocktail served in a half-empty glass. Pardon me if I don’t laugh.

If you haven’t heard about “greenwashing,’ I suspect you will, sooner than later. “Greenwashing” is the over-selling and under-delivering, and sometimes potentially misleading claims made in the marketing of green products. It’s become a significant issue in Australia and has caused Australian consumers to be very skeptical of claims about green products.

A recent study by design firm Blue Marlin found that in Australia “being environmentally responsible was one of the least important drivers (of increased sales.) Even among supposedly “green consumers,” only a small proportion said they are motivated by environmental product claims.” Overall, two thirds of respondents said environmentally friendly products were overpriced, rising to 72 per cent among families with children.”

In another survey by Mobium Research, it was found that almost nine in 10 Australian consumers distrusted green claims. (www.cnn.com/2008/TECH)

I have to agree with the feelings of Australians about green products. I think many green products are overpriced in this country. And some green product claims are so far-fetched, they defy belief. Many American consumers, like the Australians, are not motivated to make a purchase based on environmental product claims, especially if the cost is significantly higher than what they pay for a similar non-green product - at least not yet.

Personally, I would be willing to pay more for electrical power produced by wind or solar energy. It’s not good nor is it rational for this country to continue to be dependent on foreign oil for our energy needs. Period.

George Bernard Shaw once said, "A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing." Whew, thank goodness! I think there’s hope for me yet.

No. 2 February 2009

I’m sure you have followed the presidential election and inauguration as closely as I have. I like a lot of what I hear, but certainly not everything. In my humble opinion, the Congress remains the real “wild card” no matter who is sitting in the oval office. That’s because the people who populate Congress are politicians and that’s a group of people I’ve never been a big fan of. Our prayers should be directed towards the making of wise decisions in Washington that will actually turn this country around.

Here is one quote by our new President that I really like: “We have been told we cannot do this by a chorus of cynics who will only grow louder and more dissonant in the weeks to come. We've been asked to pause for a reality check. We've been warned against offering the people of this nation false hope. But in the unlikely story that is America, there has never been anything false about hope. For when we have faced down impossible odds; when we've been told that we're not ready, or that we shouldn't try, or that we can't, generations of Americans have responded with a simple creed that sums up the spirit of a people: Yes we can.” These are words that stir a heart and stir a soul, and reassures us that “this too shall pass.”

John Shiely, chairman and CEO of Briggs & Stratton was recently re-elected to the Board of Directors of The Scotts Miracle-Gro Company. Scotts is an interesting company. They call themselves “the world’s large marketer of branded consumer products for lawn and garden care, with products for professional horticulture as well.” Their market leading brands include Scotts®, Miracle-Gro®, Ortho®, and Smith and Hawken, as well as the consumer brand Roundup® which they market exclusively in North America but is owned by Monsanto. Murray, when it was alive and well in Tennessee, manufactured mowers for Home Depot using the Scotts® brand. Because it is such a strong brand, it seems logical that perhaps we will once again see Scotts® branded lawnmowers in the marketplace. Time will tell.

In June of 2008 Agri-Fab filed an anti-dumping petition urging the US International Trade Commission and the Dept of Commerce to investigate unfairly traded tow-behind lawn grooming equipment from China. In a preliminary ruling on January 23 of this year, the Dept of Commerce agreed with Agri-Fab and will now require importers of these Chinese products to pay the US Government anti-dumping duties which will on average be 324% of the product costs charged by the Chinese suppliers.

The products covered include lawn sweepers, lawn seed and grass spreaders, turf aerators and dethatchers. Michael Cohan, president of Agri-Fab said “No American firm, especially in today’s economy, should be required to compete against Chinese producers who are selling products similar to ours at less than our costs of materials.” Congratulations to Agri-Fab for saving American jobs and an American industry.

Every time I see these questions make the rounds via email around the Internet, I’m reminded of what truly is important in life. Don’t answer the questions. Just read it to the end, and you'll get the point.

1. Name the five wealthiest people in the world.

2. Name the last five Heisman trophy winners.

3. Name the last five winners of the Miss America contest.

4. Name ten people who have won the Nobel or Pulitzer Prize.

5. Name the last half dozen Academy Award winners for best actor and actress.

6. Name the last decade's worth of World Series winners.

How would you do?The point is none of us remember the headliners of yesterday. These are no second-rate achievers. They are the best in their fields. But the applause dies. Awards tarnish. Achievements are forgotten. Accolades and certificates are buried with their owners.

Here's another quiz. See how you do on this one:

1. List a few teachers who aided your journey through school.

2. Name three friends who have helped you through a difficult time.

3. Name five people who have taught you something worthwhile.

4. Think of a few people who have made you feel appreciated and special.

5. Think of five people you enjoy spending time with.

Easier?

Give yourself credit for remembering the people who really made a difference in your life. They didn’t have the most credentials, the most money or the most awards. They just cared about you.

Whose life have you made a difference in recently?

No. 1 January 2009

Here is a recent newspaper headline that is bringing smiles to OPE retailers and manufacturers alike: “Generators, Chain Saws Flying Out Of Local Stores’ Inventories.” Add snowthrowers to that list too!

If you were one of many investors who got off the roller coaster (went to cash) sometime during the 2008 stock market roller coaster ride, you’re already “behind the eight ball.” The exact time to sell equities and raise cash was October, 2007. Did you miss that one? I thought so. I would have too. Now your loses-to-date are locked in. And you’re feeling enormous pressure to get the next decision (i.e. when to get back in) exactly right. Good luck.

Ariens Company recently announced that it will offer a complete line of Ariens-branded products in The Home Depot in 2009, including zero-turn mowers, lawn tractors, trimmers, edgers, tillers and log splitters. All products except the tractors and tillers will be manufactured by Ariens. And all but two models of tractors will be available to their independent dealer base. Dan Ariens, president and CEO of Ariens Company, stated that the Gravely brand will remain exclusive to the dealer channel. I think Cub Cadet is not in The Home Depot in 2009, so apparently Ariens is filling the void and expanding their ten year relationship. Which large manufacturers only sell through independent dealers now besides Stihl? Who’s left?

Dennis Desrosiers is a Canadian auto industry analyst who recently shared his conclusions on what is going to happen to the US auto industry in 2009 and what it will really take to fix it. For example, “the legacy costs of health care and pensions are approximately $2,000. per new vehicle – the same input cost as steel.” He goes on to say that “no matter what the industry does to reposition, it can’t get out from underneath the legacy burdens.” And that is why he believes that ultimately it will be hard to avoid bankruptcy – the only way to restructure and legally shift or reduce those legacy burdens. He also believes Chrysler will be broken up and various pieces will go to other car makers. He also believes 50 per cent of auto dealerships will disappear. You can read all of his very interesting report at my Blog at http://www.anonymousdistributor.blogspot.com/

One large outdoor power equipment manufacturer is having very good results this winter with Chinese engines designed for snow removal equipment. Other manufacturers are scouring the world looking for another dependable 2nd or 3rd source for snow engines. Don’t be surprised if you see Japanese engine brands on 2010 snowthrowers. You’ll also see Japanese branded engines on generators in mass retailers early in 2009. Of course many of these OEM Japanese engines will most likely be produced in China or in a country other than Japan. It’s a sign of the times.

Speaking of signs, did you happen to see the picture on the Internet of the outdoor sign at the Eats ‘n’ Treats restaurant? It said “Cash out your 401-K Here in Exchange for a Hot Cup of Soup – Limited Time Offer.” Does that cheer you up? It didn’t do anything for me either.

Did Husqvarna purchase Peerless from Tecumseh Power? The street says it already happened. It would make a lot of sense.

In a recent newsletter, Harvey MacKay tells of a family dog that had cancer and had to be euthanized. The father and mother thought their 6 year old son could learn something from the experience. As the dog slowly drifted away, the little boy seemed to accept the dog's transition without any difficulty or confusion.

The family sat together for a while after the dog's death, wondering aloud about the sad fact that animal lives are shorter than human lives. The young son already had it figured out, and announced, "I know why."

His explanation was stunning in its depth and simplicity.

He said: "People are born so that they can learn how to live a good life—like loving everybody all the time and being nice, right? Well, dogs already know how to do that, so they don't have to stay as long."

We can learn a lot from dogs. Live simply. Love generously. Care deeply. Speak kindly. We give dogs time we can spare, space we can spare and love we can spare. And in return, dogs give us their all. It's the best deal anyone has ever made.

Interesting Perspective on the State of the US Auto Industry

State of the US Automotive Industry
YPO Global Conference Call – 10/12/08

Dennis Desrosiers, Desrosiers Automotive Consultants, http://www.desrosiers.ca/

· Dennis Desrosiers is a long time auto industry analyst and consultant – based in Canada and specializes in the Canadian sector but tracks and comments on North America and the Global trends and issues. He is one of the special advisors to the Canadian Government on this industry issue.

Conclusion
· This issue is here to stay for a while. There is a global market issue but the industry crisis is really centered in the US.

· The market must return first – and that could take until 2013 or beyond to get back to current new car demand levels

· The “structural” issues with the Big 3 will take even longer – realistically it’s a 2015 “fix”.

· The Big 3 need to become the Big 2 or potentially the Big 1 – Chrysler will be the first to go and has several quality assets that will be split up and acquired/assumed by others.

· The current financial assistance plans are not the solution, not even a good band aid – realistically the $15B assistance will provide 90 days of life support and the same issues will exist at the end of that window.

Comments
· The market issue is driven by 10 years of overbuying and there is no short term solution out of this ….just a fundamental correction. Consumers, especially in the US have been incented into maintaining new car purchase levels at above sustainable levels.

· Interesting fact. Canada and the Global (ex US) data point is 0.7 cars per adult driver. The US ratio is 1.3. This overconsumption of cars in the US isn’t sustainable and will correct – this will and is causing a significant adjustment in US new car sales for the next 5 years.

· US Market – if you remove fleet and government sales from the mix 60% of the US market is now imports and the Domestic Big 3 are 40% share and declining.

Projections:
Canada – annual new car volume has been approx 1.6M units & is projected to drop to 1.5M
Mexico – projected 8% decline.
US. – much more complicated.

The US has been running at around 17.5M new car units per year. The normalized run rate should have been approx 15M units. So the market has been over consuming by 2.5M per year driven through purchase incentives.

Conservative estimates suggest that the market will correct to 12M in 09 and ’10 and then grow to 14M (’11), 15M (’12) and 16 (’13) – still below today’s new car levels by 2013. There are some scarier scenarios that suggest that should US consumers begin to adjust their 1.03 cars per adult ratio and with the glut of used cars in the field that the normalized demand could be as low as 9M – 10M new units for the 2009 and 2010. That significant drop would cause a massive adjustment in the Big 3 – Big 2 – Big 1 scenario.

· Chrysler – no likely purchaser for the full package (GM and Renault/Nissan would be the front runners but clearly GM is out of the race and the European market conditions would make a full deal impossible for Renault). Viewed that the Chinese are no longer probable candidates – their product range is just too far away 5+ years. The more likely scenario is a break up – GM takes the minivan range, Renault takes the truck business, Jeep will have multiple party interest, the Chrysler car range will have no interest and get buried.

· Legacy costs are insurmountable. Not discussed in the media but on current mfr costs – the legacy costs for health care and pensions are approximately $2,000 per new vehicle – the same input cost as steel. No matter what the industry does to reposition it can’t get out from underneath the legacy burdens – it really progresses the Chapter 11 scenario.

· Future state of the dealerships. Projected significant shakeout – up to 50% of the dealership count. Highly unlikely the industry can restructure to a pull through model so the dealers will still be counted on for carrying the inventory burden but projected that in the future model/colour variety options will be reduced as will the high touch state of the dealership structure today. Desrosiers is a big fan of how the Japanese and Koreans are managing their dealer network and believes that they value dealer profitability and are structuring their networks to create profitable (powerful) dealers. On the other hand he states that a fundamental competitive disadvantage for the Big 3 is they built their structure on wanting a weak dealer base (to protect factory power) and this is really hurting them in a time of need. Desrosiers believes in dealership consolidation and dealer groups and believes that it’s serving to better equalize the power base between the factory and the dealerships. He believes that the future of the dealership network will be a web of dealer groups – smaller dealer count, consolidated ownership, better structure, more powerful voice.

· Future state of product mix. Green/fuel efficient technologies/car downsizing is a here to stay trend globally. BUT Desrosiers suggests that there is nothing to suggest that (despite all of the press) that the US consumer is really ready for this trend and is prepared to make the personal switch. He therefore sees political requirements for green technology as part of the Big 3 support plan a huge red flag – political pressure and hooks may require the Big 3 to change faster than their customer base is prepared to change – thus more market and market share issues in the future. He also believes that green technology is too diverse right now – too many technologies to choose from, too many people working on different solutions. In order to make a real impact there needs to be quick convergence – pick the leading technology and divert the massive research $’s into commercialization. Get focused.

· Future state of parts and accessories. OE suppliers are in massive trouble and there will be tremendous Chapter 11 occurrences with the significant reduction in 5 year new car demand. On the other hand, aftermarket parts suppliers and retailers will do okay. The prediction is the used car over supply will get sucked up in the next 3-5 years which will mean more repair and investment in an ageing road fleet.

The Grinch and the Meaning of Christmas

“And the Grinch, with his Grinch-feet ice cold in the snow,
stood puzzling and puzzling, how could it be so?
It came without ribbons. It came without tags. It came without packages, boxes or bags.
And he puzzled and puzzled 'till his puzzler was sore.
Then the Grinch thought of something he hadn't before.
What if Christmas, he thought, doesn't come from a store.
What if Christmas, perhaps, means a little bit more.”

Dr. Seuss

Copied by permission from the December 5, 2008 issue of OPEESA's "OPE-In-The-Know, The Business of Outdoor Power Equipment" newsletter which can be found at http://www.opeesa.com/.

No. 12 December 2008

Economists are predicting the beginning of an economic turn-around in the third or fourth quarter of 2009. I don’t know about you but my vote would be to see a turn-around a whole lot sooner! Please?

As Tecumseh Snow King engines become NLA, the result will be both problems and opportunities in the OPE marketplace. If you produce snowthrowers, you have to have snowthrower engines. Unfortunately there are not a lot of choices left. I heard one snowthrower engine rumour about a US equipment manufacturer who imported Chinese manufactured snowthrower engines for both the US and Canadian markets in 2008, only to discover a casting defect in the block that resulted in an oil leak. Supposedly all the engines had to be replaced. If true, it will be the first major problem this company has had with Chinese manufactured engines. The rumour says heads have rolled in China at the engine manufacturing plant……..I hope that doesn’t mean literally. Here’s hoping all OPE manufacturers find the snow engines they need and that we have lots of snow this winter, and lots of snowthrower sales. It would definitely be a bright spot in an otherwise dismal product sales year.

Christmas time always reminds me of the four stages of life. Stage 1 - you believe in Santa Claus; Stage 2 - You don’t believe in Santa Claus; Stage 3 - You are Santa Claus; and Stage 4 - You look like Santa Claus.

There are two auto industries in the US today. One is in the Midwest, unionized with huge pension and health care obligations and making vehicles few people want to buy. The other is in the South, non-unionized and making vehicles people do want to buy. The three companies located primarily in the Midwest (GM, Ford and Chrysler) are suffering because they’re too large, too inefficient and as described by one pundit, “have essentially gotten their collective butts kicked by foreign automakers since the 1980’s.”

It was mentioned in the September 17, 2008 issue of USA Today that the Big Three US auto makers have an average hourly compensation rate of $73.20, while Toyota’s average hourly rate is $48.00. The article also listed the average hourly US compensation for Management and Professional Workers as $47.57. Manufacturing/Goods-Producing workers had an average hourly rate of $31.59, and all workers overall had an average hourly rate of $28.48.

When you do the math, GM, Ford and Chrysler compensate their employees 52.5% more than the competitors like Toyota, 54% more than US management and professional workers’ average wage, 132% more than the average US manufacturing wage, and 157% more than the average compensation of all American workers?

I’m sorry, but I just can’t see why we (taxpayers) should bail out (reward) these three companies and their unions for consistently making poor decisions for the past 30 years. Let them fall into bankruptcy so they can quickly and easily restructure or merge, eliminate brands they should have gotten rid of years ago, shut down inefficient plants making vehicles nobody wants, shed outrageous pay and benefit packages, improve their quality, and hopefully become competitive once again. I believe that even if we dump money into these companies at taxpayer expense to try to save them, it will only briefly delay the ultimate outcome.

There was a terrific article on the front page of the November 7, 2008 Wall Street Journal called “A Snowthrower Maker Braces for Slump’s Blizzard of Woe.” It’s about Ariens and the impact of the country’s economic problems and the shuttering of Tecumseh Power on the company. You can read a copy of the article at http://www.opeesa.com/ in Volume 131 of their business newsletter “OPE-In-The-Know.” You’ll really enjoy reading the article and learn a few things too, just as I did.

During this holiday season, take a minute to filter through the bad news and think about all the good things going on in your life and our country. When you hear a high unemployment rate, think about the other side of the equation and the 90+ percent of Americans who do hold jobs. If you’re employed, receiving a pay-check, have family health insurance, have children and grandchildren living nearby and doing reasonably well, then give thanks for all those blessings you do have. It’s very hard to look at a glass and call it half-full instead of half-empty. Your positive and grateful state-of-mind touches everyone around you, including your family and your employees. You have a choice every day about how you approach life and the people around you. Make it positive. Make it thankful. Count your blessings. Then share a few.

Merry Christmas and Happy Holidays.

No. 11 November 2008

As of early October 2008, total U.S. employment had fallen by more than 760,000 jobs and by the time you read this, I suspect the number will be much larger. This loss compares to a gain of 1.1 million net new jobs in 2007 and the addition of nearly seven million net new jobs during 2004-2006.

Since World War II, (and prior to this year’s election), the nation’s unemployment rate has risen only twice in the year leading up to the elections. In both cases, the incumbent party lost (www.bloomberg.com).

Platinum Equity is shutting down the Dunlap Tennessee-based Tecumseh Engine plant. It will take until April 2009 to complete the shutdown. It’s bad enough that 180 people will lose their jobs. Some OPE OEM’s will lose their primary source of snow engines. At one time there were 600 people employed at the Dunlap plant.

I never understood why a smart outfit like Platinum Equity would buy Tecumseh. If Platinum Equity wanted to get into the engine business, I know what would have been the wiser thing to do, but it wasn’t my money and no one there asked me for my opinion. Perhaps by the time you read this we’ll know if Tecumseh will be shut down or all production simply shifted overseas or if it might be sold again.

I think the story of the rise and fall of Tecumseh would make an excellent book. It’s a story of family, money, ego’s, marketing or a lack thereof. From afar, many wondered if they were really reinvesting in the business. No, I don’t have any special insight into the story. It was a nice clean line to carry from a distributor standpoint. We loved to sell the Peerless Division’s parts and units. Tecumseh parts didn’t change very often…just like Murray parts didn’t change. Now there’s a rumor on the street that perhaps a major OPE OEM who does not make their own gear boxes will buy Peerless from Platinum Equity, but it’s not yet credible.

If you want to learn about the “soap opera” side of the story, go to my Blog at http://anonymousdistributor.blogspot.com/ and read my March, 2007 entry I wrote titled “Tecumseh - A Soap Opera or an Opportunity Waiting?” It covers the first three months of 2007, and it’s a sad episode in a much larger and depressing story.

I was reading the other day about what some big companies are doing to combat the excessive use and the high cost of energy. Did you know Sam’s Club is selling milk in square cartons? As a new design, they probably are more expensive to make. But the square design allows them to stack better and without crates. You can get three times more square containers in a cooler than the normal shaped milk container saving money and energy, and requiring 60 percent fewer trucks.

Speaking of coolers, some grocery stores are putting doors on refrigerated cases and cutting energy use 70% on that aisle.

Staples cut fuel use 15% just by placing a 60 mph limit on its drivers. The trucks move slower, but stop for gas less often. And total delivery time is the same.

Another writer mentioned UPS’s “no-left-turns” program to avoid waiting to cross traffic. Using GPS data, UPS routes basically now go in concentric circles to the right. The saving have been about 28 million miles of driving and 3 million gallons of gas since it was implemented. That’s impressive!

My point is that reducing energy usage (and costs) is often just using common sense. Simply turning out lights in a room not being used or completely turning off your computer or TV rather than leaving them on stand-by are simple ways to start getting in the habit of thinking about energy usage. I have a strong suspicion that we’ll all be thinking a lot more about it in the years to come.

You know from reading my past columns that I’m a big fan of Warren Buffett. (I believe a few other people admire Mr. Buffett also.)

In a recent interview with CNNMoney.com, Mr. Buffett said he wasn’t interested in placing blame for the (recent financial) crisis. “I don’t worry too much about pointing fingers at the past,” he said. “I operate on the theory that every saint has a past, every sinner has a future.”

He said the problem boils down to a widely-held assumption during the housing boom that prices could only go up. And while the theory's flaws are all too apparent now, the misconception is understandable, said Buffett, pointing to previous asset bubbles going back centuries.

"There are not bad guys in that situation," said Buffett. "It's a condition of human nature."

No. 10 October 2008

The stock market has been looking like a roller coaster lately. Just remember that the only people that get hurt on a roller coaster are the ones that try to get off in the middle of the ride.

Could you hear the sound of generator manufacturers running their plants at full capacity in August and September of this year? Even though it meant people were suffering the consequences of two major hurricanes, the sound of production lines operating at full tilt was music to many ears. There’s talk that after two relatively quiet years, demand for generators after Hurricanes Gustav and Ike could exceed the demand that followed Hurricane Katrina.

The weak domestic economy and the stupidity and mindless risk-taking that came to light on Wall Street this past year helped fuel lower domestic demand for many OPE products. Contracting demand and a crowded field of manufacturers wanting to supply that smaller demand created many interesting opportunities and dilemma’s in the OPE marketplace.

The playing field in OPE retail product placement in 2009 will be quite interesting. Which OEM’s lost placement and which ones gained placement? Which OEM’s got their price increases to stick and which ones had to back down under a major customer’s “gentle” persuasion? Who’s on the list of OEM’s that could potentially disappear, merge or be bought out?

If the Bill the House of Representatives failed to pass on Monday, September 20 had been called the 2009 Financial Reform Bill instead of a Bailout, would it have passed?

Dan Wiener, who writes The Independent Advisor for Vanguard Investors newsletter (http://www.advisoronline.com/) thinks this is a good time to be investing. Here’s how he arrived at his conclusion:

“The 4.4% drop in the Dow on September 15, 2008 ranked as the 76th worst decline in the Dow in modern times … Since World War II, we've seen 17 declines greater than 4.4% in the Dow, with more than half of them occurring during the '80s. They often have signaled a terrific time to invest in stocks. On average, the one-year return for the Dow after one of these 17 big declines was 12.8%, and the two-year return was 26.4%. In only two instances were the two-year returns negative. Look ahead a couple of years, and I think you'll see these days as fantastic ones for adding money to the markets. Let the naysayers have their word—they probably weren't around to tell you how to make money 8 years or 9 years ago. I was. We did. End of story.”

One day a father of a very wealthy family took his son on a trip to the country with the purpose of showing his son how poor people live. They stayed with a very poor family.

When they returned, the father asked the son what he thought of their trip. "It was great, Dad." "Did you see how poor people live?" the father asked. "Oh yeah," said the son. "So, tell me, what did you learn from the trip?" asked the father.

The son answered: "I saw that we have one dog and they had four. We have a pool that reaches to the middle of our garden and they have a creek that has no end. We have imported lanterns in our garden and they have the stars at night. Our patio reaches to the front yard and they have the whole horizon. We have a small piece of land to live on and they have fields that go beyond our sight. We have servants who serve us, but they serve others. We buy our food, but they grow theirs. We have walls around our property to protect us; they have friends to protect them."

The boy's father was speechless. Then his son added, "Thanks, Dad, for showing me how poor we are."

Isn’t perspective a wonderful thing?

So if Wall Street is dead, was it murder or suicide? I suppose it doesn’t really matter at this point. But whatever happens/happened with the bailout, don’t bail out!

No. 9 September 2008

Harvey MacKay, in his July newsletter, tells this American Indian story about where we should look for guidance in our lives:

“The Lakota, a tribe of Native Americans, tell a story of the great spirit of creation, "Wakan Tanka." The story goes that after Wakan Tanka arranged the other six directions—east, south, west, north, above (the sky) and below (the earth)—the seventh direction remained to be placed. Because it was the most powerful, containing the greatest wisdom and strength, Wakan Tanka wished to place it somewhere it could not easily be found.

And so it was hidden in the last place humans usually look—in each person's heart.”

“Mackay's Moral: Don't let your heart be the last place you look for direction.”

I always try to read Ed Lemco’s columns whenever they appear in various powersports magazines. Ed is totally focused on helping powersports dealers be successful in today’s tough business environment. And his thoughts and suggestions can serve OPE dealers equally as well.

In a July column, Ed says “The last thing a dealer having a tough time needs is a simplistic generalized solution, so I will try not to offer one. I also will not use any ink to expand on the (current) ills of the marketplace and economy. You don’t need to hear anymore, and even if I could formulate a lame answer to the ills of the world, there is nothing I or anyone reading this can do about it.”

“So it is back to control what you can control. You can’t control what the media talks about, but you can control and eliminate the negativity in your dealership. The only economic indicator that really matters is how many people came through your door and what you did for them when they did. So since a complaint without a solution is just bitching, let’s look at…what you can do about it.”

In running several powersports businesses that he has ownership in, Ed stated that, (In our businesses) “we are not content to be average. We have implemented changes in the sales process that are totally focused on providing a quality experience to every showroom visitor. We have increased, not decreased the number of salespeople and kept them focused and directed at pursuing the sales opportunities that do exist.”

“… you do not have to accept what the marketplace gives you. In fact, with so many dealers lost in the swirl and cutting back hours and staff, the opportunity to make money is, in many cases, better than ever.”

What have you done in your business lately to stay positive, sell more, and provide every potential customer that walks through your door with a truly superior customer experience that they will remember and share with friends and family. There is no amount of money you could spend on advertising that can equal the power of a positive and memorable customer experience.

There's an old joke about a guy who goes into a hardware store to buy a saw to cut firewood. The clerk convinces him to buy a top of the line chainsaw claiming it will cut a cord of wood in an hour. The guy brings it back the next day saying it took him all day to cut just one cord. So the clerk primes the saw, pulls the handle and starts the chainsaw right up. The guy looks at him in amazement and asks, "What's all that noise?"

One of the greatest violinists of all time was Nicolo Paganini. Born in 1782, he had a long illustrious career before his death in 1840. One day as Paganini was about to perform before a packed opera house, he suddenly realized that he had walked out on the stage with a strange violin in his hands—not his own treasured instrument.

Panic-stricken, but realizing that he had no other choice, he began to play with all the skill he possessed. Everyone agreed afterward that he gave the performance of his life. When he was finished, the audience gave him a standing ovation.

In his dressing room after the concert, when he was praised for his superlative performance, Paganini replied, "Today, I learned the most important lesson of my entire career. Before today I thought the music was in the violin; today I learned that the music is in me."

No. 8 August 2008

Electric lawnmowers and manual reel-type push mowers are, for good reason, “hot” once again. You may want to look very closely at these types of units when you go to the GIEE (Green Industry and Equipment Expo) show in Louisville October 23-25 this year.

Battery life and cutting power have improved in the newer cordless units being produced today, at least in the demonstrations that I’ve seen. But we’ll have to wait for new types of batteries to come to market before we’ll see significant battery life improvement.

Husqvarna (Electrolux at the time) invested in a battery company called Firefly Energy a few years ago that was spun-off from Caterpillar in May of 2003.

Since yard maintenance is seasonal and people put away their riding mowers in the fall until the next spring, the battery is usually dead when it’s time to use the mower again in the spring. In this instance, a dead battery is usually caused by sulfation.

Batteries that die due to sulfation generally recharge back to about 80% capacity or less. The Firefly battery’s construction makes it resistant to damage by sulfation and when recharged in prototype testing, it regularly came back to 100% capacity.

Husqvarna signed up to be the first commercial customer for Firefly’s batteries which currently are still not available.

To learn more about batteries and in particular, Firefly Energy, check out http://www.fireflyenergy.com/ or http://www.electrifyingtimes.com/firefly_energy.html

It’s been reported in the trade press that OEM companies like American Lawnmower have sold every unit they had of cordless electric mowers. That indicates to me that this market segment is worth considering for your business. It will also be interesting to see what other new electric-powered products will be displayed at this years GIEE show.

Harley Manke, of Manke’s Outdoor Equipment & Appliances in Owatonna, MN recently sent me two sayings that have influenced his life and business:

Harley told me that “When I got married in 1963, my wife's boss gave me a new tie clip that had these letters on it: YCDBSOYA, which means "You can't do business sitting on your ‘apple’” (or use a word of your own choosing instead of apple.) Harley said “If you go by that motto, you will succeed every time.”

He also said “when a customer comes in your store, he comes in for only three things: (1) Information, (2) to make a purchase, or (3) to use the can, so be fully prepared for all three.”

This proves to me once again that experience teaches a person important things they would never learn from a text book! Thanks for sharing these, Harley.

John Deere is using an interesting term in their 2008 marketing campaign, “ruralpolitan,” to describe a key customer lifestyle.

Consumer Reports defined “ruralpolitan” in a December 2007 issue as “a professional who has abandoned the urban dwelling for a rural lifestyle and lives on three acres of more, typically within 40 miles of a city.” The Magazine also states the term is being used in the outdoor power equipment market.

Deere says their dealers recognize the “ruralpolitan” lifestyle in their customer base and that Deere is modifying their products and services to reflect that lifestyle. Jennifer Cox, Deere’s manager of PR and media for the Commercial and Consumer Equipment division says “even if people are staying at home, they are investing in their property; their property is their escape.”

Do you believe high gas prices will affect where people choose to live in the future? Will access to public transportation and having shopping and restaurants close-by become more important to people than the benefits of a rural lifestyle? Today I suspect people choosing where to live will have to give more weight than ever to the high cost of commuting long distances for work or shopping.

Understanding your customers’ changing lifestyles has always been crucial to running a successful business. There’s no better time than now to reexamine who your customers are and how changes in their lifestyles are affecting your business. You may find that you will need to make significant changes in the current focus of your business or perhaps in the types of products you are selling. This is another instance where a little knowledge will go a long way in keeping your business viable and successful.