The right way to let customers set your price

Letting customers set your price sounds crazy. But Radiohead made a $10 million success out of letting customers name their own price to download their album, In Rainbows. Others have experimented with this business model, too. Here is one of the most interesting twists I've read: let your loyal customers help you determine the right price point for you next release.

Aliza Sherman with Middle Sister Wine bottleSouth African BLANKbottle has gone a step further. The boutique winemaker's founder, Pieter Walser, sent 20 cases of its latest premium white wine Moment of Silence to loyal customers on consignment, asking them to evaluate the wine and then pay him what they thought it was worth. They paid up to ZAR 90 per bottle (USD 11.80 / EUR 7.50), and the average price came to ZAR 50. Since BLANKbottle aims to exceed customers' quality vs. price expectations, the wine went on sale to the public at a price of ZAR 40.

Walser, for his part, got a high return on the wine he risked in the venture. In addition to the publicity he garnered, he determined a new product's price point based on the actual purchasing decisions made by the winery's best customers. Feedback that's likely to be more valuable than the opinions volunteered by focus groups or market research experts. And by involving them in such a fundamental business decision, he no doubt increased brand loyalty among the winery's core customer base. One to try out with your own best customers!

Source: Springwise.

Photo by Becky McCray of Aliza Sherman with a bottle of Middle Sister Wine.
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Be thankful in the Brag Basket

Every week, I open a Brag Basket, so you can introduce yourself or share some good news. This week, with Thanksgiving in the US, feel free to share something or someone you are thankful for.

So speak up and add yourself or another deserving soul in the comments. We all cheer, and everyone feels great.

It lets you meet each other a bit. Reading each others' stories brings us a bit closer to being a community. 

This particular basket is open from Nov. 27-Nov. 29, 2009.

How does it work? You write a comment on this post. You tell something great about your week, or you give plaudits to someone who did good stuff this week. Or you celebrate a terrific failure. It's not an ad; it's a conversation with friends. So jump in.



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Idea for customer appreciation events

Our friend Bruce Christensen, CEO of PartyWeDo, sent me this idea. It's from a yarn store in Florida, but anyone could use it.


Basically, the store allows customers to bring in yarn, or any fiber related gift, all wrapped up like a present. Then at a designated time, they play white elephant exchange. Read the details at the AlbinoPhant blog.

And drop by the store's site: Kint 'n Knibble

Thanks, Bruce! If you have an idea that's good for small town businesses, please pass it along.



Photo by Amy Palko, used under Creative Commons License.
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Nine smart people share their small biz secrets

Some really smart people have shared some powerful small business secrets here lately. I wanted to make sure you didn't miss any of the good stuff.


Statue believed to be Julius Caesar, photo by Becky McCray.
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High tech rural business ideas

Joel Wiggins, Enterprise Center of Johnson County, shares some promising ideas for high tech businesses and ag based businesses that give an advantage to rural areas.


Click here to view the embedded video.

Interviewed by Becky McCray at NASVF - the National Association of Seed and Venture Funds, Oklahoma City, September 2009

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I am back for the Brag Basket

I've been away at the London #140conf, but I'm back and it's time for Brag Basket!

Every week, I open a Brag Basket, so you can introduce yourself or share some good news. So speak up and add yourself or another deserving soul in the comments. We all cheer, and everyone feels great.

It lets you meet each other a bit. Reading each others' stories brings us a bit closer to being a community. 

This particular basket is open from Nov. 20-Nov. 22, 2009.

How does it work? You write a comment on this post. You tell something great about your week, or you give plaudits to someone who did good stuff this week. Or you celebrate a terrific failure. It's not an ad; it's a conversation with friends. So jump in.


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Our friends launch BatchBook for Sales

Michelle Riggen-Ransom of BatchBlue with Shashi Bellamkonda of Network SolutionsOur friends Pam and Michelle (and crew) at BatchBlue have launched BatchBook for Sales.

BatchBook is a CRM (customer relationship manager) for small business. Think of it as a super-hero address book.

Here's an overview of the new sales features. It now has Deals, a Calendar, and more user restrictions, so you have more ways to work with an assistant or others.

Pam O'Hara of BatchBlue(And I hear they are working on a To-Do template and a Leads SuperTag.)

Stop by BatchBook. Tell 'em we sent ya! (No, you won't get a special deal, but it will make me feel good.)

Photos by Becky McCray: 1. Michelle Riggen-Ransom of BatchBlue with Shashi Bellamkonda of Network Solutions. 2. Pam O'Hara of BatchBlue

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How to make your tourism Twitter more interesting

At BlogWorld Expo, I finally got to meet two of Sheila Scarborough's travel connections, Doug at Authentic Seacoast (@AuthenticCoast) and Shannon Lane (@Cajun_Mama). We had a great discussion about what makes tourism tweets interesting.

Lunch at Carl's Bar - lovely! #hutch on TwitpicDoug said a regional tourism group had an intern handling their Twitter account. He would tweet things like, "I'm going to have a sandwich." If only it had been a local specialty, like a lobster sandwich, Doug said.

From a great local cafe, I added.

With a picture, Shannon finished.

You make your tourism Twitter stream more interesting by including the details and connections that make your place come to life.

Photo: my twitpic of a 1/2 ruben, 1/2 roast beef sandwich from Carl's Bar, in Hutchinson, KS.
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How to renew your blogging enthusiasm

Blogging is a terrific tool for small businesses, but the work of blogging eventually can get you into a rut. That's why so many blogs stagnate and even die after a while.

Long-time friend Chris Brogan asked a pointed question about this, on Twitter.
Is your blog phoning it in? Are you tagging along in a pile of similar content? How will you break out?  
Here are some of the techniques I have used to keep blogging through four years and over 1000 posts, even when my enthusiasm waned. 


Small Business, Big Impact panel1. Go to an in-person event.

In early 2008, my energy for writing Small Biz Survival dwindled. Then I went to South by Southwest Interactive. A conversation there with Chris caused me to write my most popular post ever, and that kicked off one of my most productive blogging periods.


And this still works for me. In October this year, I went to BlogWorld Expo and had a great time. I hit a couple of really standout presentations, had wonderful conversations with friends old and new, and had a great time presenting a panel on real small businesses using interactive tools for marketing. When Rick Calvert asked for links to posts and photos that came from the event, I realized I had a small set of photos, and six posts so far. (I have another one in the pipeline for tomorrow, too.)
  1. Three speaking tips for wired audiences
  2. Six big Facebook tips for small business
  3. Is it worth paying for help with free tools?
  4. Starting small at Eyes-Lips-Face (video)
  5. Managing your social media marketing time
  6. Connecting Across (at Out Standing in my Field)

2. Quit writing at your site for one week. 
Give yourself a break, and set a time when you'll deliberately return. 

3. Comment on other people's posts. 
Spend the week reading other people, and adding comments on their sites. Lots of times I'll start leaving a comment and realize that I have enough to add to also turn that into a new post.

4. Be interviewed. 
When other people ask me questions, they are coming from a new perspective. The questions frequently lead me to new answers or new ways of putting things together. That just happened again this week, this time with questions from @newentrepreneur.

5. Have conversations. 
For the same reason as interviews, in-depth conversations also help me create new connections. When I roomed with Jean Warner (@jeanwarner) at BlogWorld Expo, she asked a lot of questions. She was also full of ideas and new concepts. It was incredibly helpful for me to try to see from her perspective. 

6. Make room for other voices. 
I was lucky to have started with my co-authors Jeanne and Mom, and I have become a collector of guest posters and regular contributors like Jon. Everyone has their own voice, their own perspective. Avoid the temptation to over-edit these contributions. Let the author shine on their own. Difference is a good thing, in this case.

What techniques help you break out?

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Interview at Business Owners Toolkit

Greg Corombos and John Duoba from the Business Owner's Toolkit Radio interviewed me for their radio show. We covered a lot of ground, including: 
  • What's different in rural business, and what can all businesses learn?
  • Do shop local campaigns work? How do you start one?
  • What are some keys to success in small retail stores?
  • What are some business ideas for small towns?
  • What are the differences between locally-based business versus chain businesses?
  • What advice can we give business owners facing failure?
  • Is social media a waste of time?
  • How can you not get sucked into the vortex, or how do you manage your online time?
Here's the description of the full episode from the Toolkit site:
Greg and John talk about a new initiative by federal officials that is hoped will improve small business lending, recommendations for using your completed business plan, the types of small business insurance, and how to use Business Tools found at toolkit.com sample letters for checking employer references, personal references, educational records and driving records. In addition, Becky McCray, small town entrepreneur owning a retail store and cattle ranch, as well as publisher of SmallBizSurvival.com, is interviewed about rural small business issues and trends.

Go to the Toolkit show site and look for the 10-24-2009 show, or download the MP3 of the interview.
I'm at 20:30 in the show, but the whole things is worth your time.

Photo of me on the radio from SXSW 2009, by (cc) Shashi Bellamkonda Social Media Swami (cc) Network Solutions
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Every week is a new brag basket

Every week, I open a Brag Basket, so you can introduce yourself or share some good news. So speak up and add yourself or another deserving soul in the comments. We all cheer, and everyone feels great.

It lets you meet each other a bit. Reading each others' stories brings us a bit closer to being a community. 

This particular basket is open from Nov. 13-Nov. 15, 2009.

How does it work? You write a comment on this post. You tell something great about your week, or you give plaudits to someone who did good stuff this week. Or you celebrate a terrific failure. It's not an ad; it's a conversation with friends. So jump in.


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J.C. Hutchins and Zero Budget promotion

Our friend Chel Wolverton helped me connect with award-winning novelist J.C. Hutchins to talk about promoting on little or no budget. I thought small businesses could take some lessons from his success.

J.C. is best known for his high-tech 7th Son thriller trilogy, which he released as free serialized audiobooks from 2006-07. With more than 5 million episodic downloads of his fiction -- and approximately 100,000 downloads still occurring each month -- 7th Son is the most popular "podcast novel" series in history.

Thanks to savvy "zero budget" promotion and relentless evangelism from his fans, the series’ first novel, Descent, is now in print from St. Martin’s Press. J.C. has been featured in The New York Times, The Washington Post, NPR's Weekend Edition, TIME.com, OMMA and Blogger & Podcaster magazines, and the BBC.

1. Can you sum up, in one paragraph, what the "zero budget" project is, and how small town businesses could benefit from reading about it?

Certainly. The "zero budget" marketing I've used to promote my novels hails from necessity -- like most small businesses, I simply don't have the cash to hire a fancy marketing company to spread the word about my work. So I bootstrap it by using free online services (such as my website, blogging, podcasting, Twitter and Facebook) to boost awareness for my fiction. Further, I use these tools to personally engage with my customers -- making them more than customers; they become fans -- and ask them to help spread the word about my product.

Most businesses understand the importance of advertising and outreach. But so many fail to recognize that their satisfied customers are the best marketers money can't buy. By turning your customers into fans, you transcend a mere transaction-based relationship and become something far more significant in their minds.

2. Are there any necessary first steps to making a zero budget promotion work? For example, how necessary is it to have a plan?

A business can certainly benefit from a plan, but I encourage low-risk experimentation -- especially when businesses are using social media tools (like Twitter and Facebook) for the first time. There's no need to break the bank here, from a time and effort perspective. Start out small and slow, and see what resonates with your customers.

The key element is providing value. Value, value, value. Make it worth your customers' time and effort -- and then make it effortless.

For instance: A local retailer can create a customer-centric Twitter account or Facebook page. This takes minutes to do, and is free. (It's easy to become consumed with fancy designs, bells and whistles -- but forget that stuff. Bare-bones it.) Promote these pages with some low-cost in-store signage, and talk it up to customers ... even slip self-printed paper promotional "postcards" in each checkout bag. Encourage customers to visit those sites.

Why? Because there are online-exclusive deals that can be found there. Or perhaps there are quick tips that cater to your customers' needs. With $20 and 10-minute time investment, you can provide valuable coupons for your customers, or priceless expertise. In a way, you bring your business to them. These things create value and customer loyalty -- they'll come back to those pages for more. They'll come back to your store, too.

And if your customers don't visit those sites? You're out $20 and 10 minutes. That's chicken feed, even for the most strapped businesses. You can implement similar strategies with blogs or podcasts, but start small and see what works.

3. What are the top 2 or 3 most successful techniques you've used so far?

In the online subculture in which I operate, I've found that loss leader products, cross-promotion, and leveraging customer enthusiasm deliver the best "zero budget" results.

Loss leader products
I give away my novels for free in serialized audio and text formats, and encourage my customers to share that free content with their friends. This sounds insane; how can I make a profit if I'm giving away my stuff? But these loss leader products get folks into the door, and invested in what I'm doing. They enjoy the free stuff, and are willing to hear me promote the "print" editions of my novels, which are for sale. Further, the low barrier of entry attracts customers who would not have otherwise discovered by books. I've seen a tangible connection between my strategy and successful book sales.

Brick-and-mortar retailers -- or any other business, for that matter -- can benefit from this strategy. I mentioned online-exclusive deals/coupons and "expert tips" articles. There is little monetary downside to these loss leaders, as it either drives customers in-store, or delivers invaluable insights that lend credibility to your business ... which brings people in-store. With minimal modification, this strategy can work effectively for industries well beyond retail.

Cross-promotion
Small companies can also benefit by creating short- or long-term partnerships with other local businesses. Better still, these alliances need not cost a dime. This cross-promotion can occur online, or in brick-and-mortar locations. This works best with businesses who have customers with overlapping interests.

For instance: Let's say your town has a locally-owned hardware store and bookstore. The hardware store can feature low-cost in-store signage that promotes the local bookstore as "the best place" to learn more about decoration, remodeling and other DIY endeavors. Meanwhile, the bookstore has signage in the appropriate sections that promote the local hardware store as "the best place" to buy the tools customers need to get the job done. It's a dirt-cheap promotion which lends credibility -- and drives business -- to both stores.

Leveraging Customer Enthusiasm
Transcend the traditional transaction-based relationships with your customers. Make them fans with superior service and value! Identify your happy repeat customers and ask them to help spread the word about your business. Provide them with a few flyers (which provide value via deals/coupons/etc.) to pass out to friends and family. Or ask them to mention your Twitter or Facebook pages. Since they're already invested in your success -- they enjoy doing business with you -- they'll likely accept your low-pressure offer.

And if they don't? Hey, no sweat. You only spend a few bucks printing those flyers.

4. You are targeting a fairly tech-savvy audience with your writing. How well do these tactics work when your target isn't that technically minded?

They can work just fine; in fact, several of the "zero budget" tips I've mentioned are designed for the "real world," and not the Internet. All it requires is an absolute love and belief in your business, and a willingness to pursue the slightly unconventional in your outreach and customer relationships. If you love what you do, that passion will spread to your customers -- and to allies with whom you can partner.

Learn more about J.C. Hutchins and his work at http://JCHutchins.net.

Photo courtesy of J.C. Hutchins
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Tap into Rural Tourism and Retail Opportunities

[Jennifer Brooks writes a terrific blog about rural/urban fringe issues, and I invited her to do a guest post for us. And I am glad I did! -Becky]

Drive, Shop and Be Merry:  Tapping Into Rural Tourism & Retail Opportunities at Christmas

By Jennifer Brooks

Even as large retailers are slashing prices and expecting sluggish holiday spending from consumers this year, the Christmas season is a prime opportunity for rural communities and small businesses to make big plays and compete, not necessarily on prices, but on unique experiences, natural beauty, authentic person-to-person interactions, and other distinctive tourism-type offerings.
Street musicians
People, especially those living in larger centres, are drawn to rural areas for precisely the above reasons.

The secret?  Day-trips.  If your community is located approximately 60 miles from a larger urban centre …  ka-ching!  There’s your target audience.  If your community is not, it may mean a little more work to partner with other communities to create a rural tour, one focused – of course – on local retailers and further supported by things to see and do in the area.

A good friend of mine, in fact, introduced me to this concept after taking part in one such excursion.  Her small home-town, like so many others, was facing economic decline and was forced to become creative in effort to survive.

Taking advantage of the holiday season, their solution became ‘Women on Wheels,’ a day-long tour focused on creating a women’s-only rural shopping experience.  Partnering with two other small communities, the tour stops at a dozen participating stores – many which offer special discounts, activities (e.g. photos with Santa, complimentary ‘mocktails,’ snacks), live music and more – and incorporates additional seasonal events such as a lighted parade, outdoor street market, and a village festival.

It’s been a huge success.

Again, it’s the unique, authentic experience that makes something like this work … and which rural communities can offer in spades over their urban counterparts.

Not only does this bring much needed dollars into your local economy, it also offers collaborations on other levels … think about advertising, complementary business partnerships, brand building, encouraging entrepreneurial talent, networking, and more.  And it isn’t limited to the holiday season, either … a mother-daughter tour for Mother’s Day?  Sure!  A family-friendly regional summer tour?  Why not?!

So … what does your community have to offer?  How can you take advantage?

***
Jennifer Brooks is a small-town shopping aficionado currently working in the field of rural development.  She writes about community development, growth, and communication in the rural-urban fringe landscape at The Rurban Fringe blog – www.therurbanfringe.com.

Photo of Hutchinson, Kansas, Third Thursday by Becky McCray.
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4 tips for going into business

Jeanne Cole, a regular contributor here, put together some basics for small business, for the Small Business 101 workshop held in Alva. Here are her 4 top tips.

Jeanne Cole1. Do a business plan for the right reason.
Most people only write a business plan when they want money. But the top reason to write a business plan is for your own benefit. Lots of people say, "I've got it all in my head." Please get it worked out and do a couple of pages of narrative. Figure out how much money you want to make and how long you expect to stay in the business.

2. Develop your entrepreneurial attitude. 
Work on willingness to take risk and perserverance.

3. Evaluate your business idea carefully.
How can you tell if an idea will make money? By doing the planning, doing the financial projections. The business plan guide from the Oklahoma Small Business Development Center includes financial projection forms. 

4. Get out and gather some business intelligence.
Local sales tax goods reports can give you an idea of the current local market in many areas. Want to know the real experience of others? Call competitors and other entrepreneurs. And don't forget the personal resources, the service providers who support small businesses in your area.


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The Management Expert helps with people problems

Just as soon as your small business includes more than just you, there will be people problems. To help you with those problems, our friend Phil Gerbyshak has put up a new resource, The Management Expert.
Chris Brogan, Phil Gerbyshak, Becky McCray
Phil has pulled together a huge collection of over 500 of his management articles. His goal is to help new managers be better managers.


Phil was one of the contributors to the Great Big Small Business Show that Chris Brogan and I produced back in 2006, and he is a very smart thinker. I highly recommend all new managers in small business spend some time with  The Management Expert

Photo of Chris Brogan, Phil Gerbyshak and Becky McCray courtesy of Phil Gerbyshak.
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Join the Brag Basket

Every week, I open a Brag Basket, so you can introduce yourself or share some good news. So speak up and add yourself or another deserving soul in the comments. We all cheer, and everyone feels great.

It lets you meet each other a bit. Reading each others' stories brings us a bit closer to being a community. 

This particular basket is open from Nov. 6-Nov. 8, 2009. (I put dates so you won't accidentally leave a comment on an old basket.)

How does it work? You write a comment on this post. You tell something great about your week, or you give plaudits to someone who did good stuff this week. Or you celebrate a terrific failure. It's not an ad; it's a conversation with friends. So jump in.

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3 Speaking tips for wired audiences

More audiences today are wired, with laptops or smart phones. They are taking notes, Tweeting, and much more. This changes the dynamic of speaking, so here are three tips I picked up at BlogWorld Expo this year.

Audience with laptops and smart phones1. Using a visual can make people stop taking notes and listen to you. This one came from @armano during his presentation on creating visuals. He was right, too.

2. Put a copy of your presentation online ahead of time. If the projector or video fails, all those with laptops in the audience can pull it up and flip through it with you. This one was suggested by @digitalandy when the computer controlling the projector failed in a session. Seems so obvious, but how often do we do it?

3. Before you make a gesture to help explain a concept, say, "I want you to watch as I do this..." I heard @shama say this in her presentation to get people to look up from their screens. It worked, too. 


What have you learned about speaking with increasingly connected audiences?

Photo by Becky McCray
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6 big Facebook tips for small business

Facebook can be a powerful tool for small business, and our friend Shama Kabani of Click to Client shared some outstanding tips in her presentation at BlogWorld Expo.
Shama Kabani

Tip 1: Create a fan Page, not a personal Profile, for your business. 

Fan pages are the best way for small businesses to interact with customer and potential customers on Facebook, Shama said. If you don't have a Facebook account yet, create one in your own name. Then go create your Facebook Page.


Tip 2. Build your page with your purpose in mind. 
Start with the little box that appears under your photo. Put something meaningful about your business in there, because that is the first place most people look on your fan Page, Shama said. Then fill in all the other basic information about your business, and put up a friendly welcome message.


Before we had fan pages, lots of businesses and associations created profiles of their business, just like their business was a person. Unfortunately, this is against Facebook's terms of service, and it is enough cause to have your profile deleted. Now Facebook is cracking down on these profiles. So that leads us to...

Tip 3. If you have a Profile for an organization, start converting to a fan Page right now.
Slowly ramp down the activity on your old Profile, as you continue to direct people over to the new Page. Shama pointed out that you can use the Notes feature, and tag the people you want to notify about the new Page.


As you start collecting Fans of your Page, you want to convert them. Shama pointed out that there are two types of conversion:
  1. Convert them into consumers of your information.
  2. Convert them into clients who pay.
Facebook is better at making people consumers of your info. Then over time, they can become your clients. Since people are becoming consumers of our information, how do we know what type of information people will want to consume and share on Facebook?  Ah! Now we've come to Shama's killer secret about using Facebook for small business... 


Tip 4. The number one reason people get on Facebook is to showcase their own identity.
If you want to reach people, then tap into this reason. What does your brand say about your customers? How does it look on their profile when they fan you or share your content? Do they like that connotation?

For example, if you live in Alva, Oklahoma, how does it look if you become a fan of Allen's Liquor Store? How is that different that being a fan of the Candy Bouquet? It's all in how your fans you want other people to see them, and how you play a part in that.




Tip 5. Facebook is the ultimate tool for sharing success stories. You were wondering how you were going to fill all that blank space on your Page, weren't you? Well, talk with your customers about how you've helped them. Get permission to share their stories, and start posting them to help others.



Tip 6. Facebook Connect is the new superpower.
This is where you integrate your Facebook efforts with your regular website. It's kind of like a badge or widget to put on your site to share your Facebook Page activity. But it also gives you statistics about your website visitors, and it adds social interaction to your site. Check out more details at Facebook Connect. It really is just what Shama called it: the new superpower.

Thanks to Shama Kabani of Click to Client for sharing such useful information in her presentation.


Photo of Shama Kabani by Becky McCray
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Tips for setting business hours

Every so often, we feature common small business mistakes, so you can learn from them.

Business Hours Friday 12 to 5, Saturday 10 to 4Lots of small business make a mistake in setting and keeping their business hours.

Here's an example from a retail business, open only 11 hours per week. But hey, they do say you can call and they'll come open up. This may be more common in small towns, where we're more informal. It's still a mistake. How many potential customers are you turning away?

Two years ago, I wrote about a couple of other local business, one with inconsistent hours that were always changing and one that wasn't always open when it said it would be.

The tips on setting business hours that I offered in 2007 are just as good today.
  1. Think about your target customers when you set your hours. Ask them when they want you to be open.
  2. Set an incredibly easy to understand schedule.
  3. Publicize your business hours in all the media you use.
  4. Be open when you say you will. Open on time, and don't close early.
I know, emergencies will occur, but do your best!

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