daily Diigo

daily Diigo 03/05/2011

In Uncategorized on March 5, 2011 at 11:30 am
  • tags: Groupon

    • one Portland, Ore., coffee-shop owner discovered, getting something for free can get very expensive
    • Not only did she underestimate the number of shoppers her Groupon promotion might attract, the discount offer itself was too generous.
    • business owners like Burke can pay a steep price for marketing experiments. While Posies’ foot traffic shot up by about a third after the promotion, the majority of her new customers did not spend above the value of the Groupon offer. Many of them used multiple Groupons at a time. They also neglected to tip staff members, attempted to use expired coupons and subsequently became irate with staff members when they were refused.

      “I consider it the single worst decision I’ve ever made as a business owner,” says Burke. “I could have done a lot more advertising for $10,000 with a lot less frustration.”

    • the importance of calculating the bottom-line business impact before experimenting with cutting-edge tactics
  • tags: CapitalOne credit loans

    • $50,000 loan from Capital One
    • Small Business Administration-guaranteed loan through Capital One in 2005 to buy printing equipment for his three-person fine art reproduction company in Davidson, N.C. He personally guaranteed the loan—as the SBA requires—and owes about $20,000 remaining. Although he has never missed a payment and his credit score, at 830, is nearly perfect
    • his FICO score could drop 25 to 75 points when the loan’s $20,000 balance gets reported, because the credit rating weighs total debt and the amount of available credit being used.
  • tags: restaurant

    • no to the 21st-century conviction that everything can be accessorized to the customer’s taste
    • “Instead of trying to make a menu that’s for everyone, let’s make a menu that works best for what we want to do.”
    • “You’re supposed to drink espresso fast,” said Caroline Bell, an owner of Café Grumpy, explaining that paper lets the heat dissipate too quickly.

      When some customers at the three outposts in Brooklyn and Manhattan became, well, grumpy over the lack of takeout espresso, Ms. Bell instituted a policy meant to be taken more with a wink than with the snarl of the cafe’s logo: Patrons can get an espresso to go, if they pay $12 to drink it from a porcelain cup they can keep. “People actually do that,” she said. “There’s a guy that comes in every day to Chelsea with that cup and gets espresso.”

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