Friday, January 19, 2007

Profit From Product Re-Design


By Victor Pleshev, Director, Interface Pty Ltd
Designer of The Fitz Like A Glove™ Ironing Board Cover
19th January 2007


You don’t have to be a design guru or professional industrial designer to come up with creative solutions to improve the things around us. After all, most of the best things were designed by amateurs out of sheer need.

There are lots of things out there that we use every day and, surprisingly, most of them can be improved to work better, be more useful or just look better and could make you money. Let’s take an example: the pouring spout and lip. Every tea pot, jug, carafe, virtually anything that holds liquid, has a pouring spout or pouring lip. But what annoys people is that it drips. There you are, thousands of years of continuous refinement and we still can’t get it right!

So, if someone takes the time, examines the problem and comes up with a really dripless spout, people will beat a path to their door? Well not really. There’s all that branding, marketing and selling stuff to get through, but that’s another story. There’s room for improvement in almost any common product and it’s this tinkering around the edge of design that makes our life better. By addressing those pebble-in-the-shoe kinds of irritations, we can probably get rid of half the angst in the world today.

What’s the point? Well, if you don’t want a better world to live in, you can probably make money out of simple improvements to every day things. Don’t get me wrong, this isn’t for everyone. Just because you’ve banged a nail into a piece of wood doesn’t mean that you’ve got a better coat hanger.

It takes thought and discipline to come up with a viable alternative. Don’t forget these things have been around for a long time, so lots of people have probably had a go at redesign. There are about four major issues to consider before you start:

What really irritates me about this thing?

Personal involvement is the greatest motivator. Unless you’re a professional industrial designer, you’ve really got to have your heart in it to achieve success. If you think it’s sort of OK as it is, don’t start.

Will it be a major improvement if I fix it?

It’s got to be a significant change for the better. If you just hate the colour and want to paint it red, no one will notice.

Will there be a true point of difference from the original?

If you make the improvement will the difference stand out? Can you hang your hat on it as a marketing tool, or will it get confused with the original.

Is the technology within my grasp?

Don’t try to improve the pace maker unless you know something about metallurgy, microchips, electronics and above all, anatomy. Stick to things you know best.

Of course the most important thing, the actual redesign, is up to you. But the best solutions are simple, and appear obvious after all the agony.

If you’ve come up with a better widget and you think it will sell, what’s next?

Research the market, don’t rely on anecdotal evidence. Check what’s out there and how much it sells for and at what volume. Every country has government agencies which deal with patents and design registrations; you can generally search their data base for similar products and designs. If you find something similar, be warned, you could end up in court if you proceed.

Don’t discuss it with your friends, or manufacturers, or retailers. Keep mum until you’ve registered or patented or somehow protected your design from being copied. It’s too late once it’s on the market. If you have to discuss it with someone, get them to sign a non disclosure form giving you exclusive rights.

Decide on production costs and methods, profit margins, sales methods, positioning, advertising, etc.

It ain’t easy but in the end everyone needs widgets, and the low-tech end of the market is the least competitive and the most rewarding.

All our products are exceptional. To see more, visit our website at http://www.interfaceaustralia.com

Interface Pty Ltd
Designers & Makers Since 1994
6026 Sofala Road Ilford NSW 2850 Australia
Post Office Box 139 Kandos NSW 2848 Australia
Tel: 02 63 58 85 11
Fax: 02 63 58 85 10

All our products are made with love and care in rural Australia by men and women who have a disability.

Tuesday, November 14, 2006

Cheap Price - Who Pays?

Written by Carol Jones
Director, Interface Pty Ltd
Designers and Makers Since 1994

Have you ever wanted to really buy something, but you held back? It was just what you wanted, but cost more than anything else like it. How do you know if it’s good? Especially if you don’t know someone who has it.

It’s easy to talk yourself out of something because you don’t know enough about the product. And it’s usually because of the price. There’s risk in buying something that costs more.

How many times have you been shopping with someone, been on the verge of buying something of quality, only to have them look at the price and say to you, “Nooo! You can get something much cheaper at the discount stores like Go Lo, Kool Discounts, Big W, Target or K-Mart.

Have you noticed they never say you can get something better at these stores? Only cheaper. Why is cheaper more desirable than better? Why do you want to take something home and then throw it away after a few weeks because it’s worn out, broken, or never worked in the first place?

Look at the majority of ads on Australian TV, radio and in the press. What’s the main message? Cheapest price. When’s the last time you heard or saw an ad that shouted quality, durability, pleasure to use, the best you can buy, great service? And how many times have you heard your friends, relatives and co-workers lamenting how things don’t last any more?

Your retail world in Australia is dominated by two giants. Coles and Woolworths. And they share similar attitudes.

In mid 2005, an article in the Sydney Morning Herald quotes Coles as saying customers have to realise they don’t run their stores to give you choice, but to make maximum profits.

How?

The enormous buying power of Woolworths and Coles dictates what they want to stock and how much they pay for each item. If a manufacturer doesn’t want to supply at their price, Coles and Woolworths go to third world countries like China, Taiwan, Thailand and India, which eagerly supply at super low prices.

The Australian manufacturers see their revenues eroding by only supplying small shops, and guess what? They go to China, Taiwan, Thailand and India to make the products the behemoth retailers want, for the low price they insist on paying. Factories close here and open up over there.

Even the boutique retailer now finds it has no option but to also buy products made in China, India, Taiwan and Thailand. They no longer have a choice.

Just ask Dick Smith how this affects his ‘Made In Australia’ food label. His revenues have dropped by 50% in the last 12 months because he can no longer find enough ingredients made in Australia to supply his brand. Fruit orchards Australia wide are pushing their trees over because they can’t sell their fruit cheaply enough to satisfy the quest for supreme profits above quality and taste.

And what’s the life of a Chinese factory worker like?

The hype in the press makes it sound terrific. A penniless villager goes to the big city, finds work, rises up to the middle classes and lives happily ever after. A great rags to riches story.

If only!!

The average Chinese factory worker lives a life in fear of their bosses. In working conditions not tolerated in Australia. Yes, these factories are less than 10 years old. But the physical and emotional conditions of the workers are oppressive and cruel.

SBS Television screened a documentary called ‘A Decent Factory’ in April 2006. Nokia took us on a tour through their factory in China so you could see their better than average working conditions.

What you saw was a burly factory manager, rubbing his hands together, leering, smirking and generally bored by Nokia’s requests for information and resentment at their intrusion into the factory’s working day.

95% of the workers are young girls from the villages, under the age of 19. The factory provides their clothing and accommodation, which each girl pays for. It’s automatically deducted from her wages.

Home is a small room of bunk beds which houses at least 8 girls and looks just like a backpackers’ hostel room. They eat on their beds and share one toilet. Their work uniform is a blue blouse and slacks.

Nokia is told working conditions are 8 hours per day and award wages are paid. Closer examination reveals these girls are actually paid only 50% of the award wage and a 12 hour work day is the norm.

Explanations for less pay? If a girl is 15 minutes late, she’s docked a half day’s pay. She’s not paid if she’s sick, needs time off, or if a machine’s down.

The extra 4 hours a day worked? It’s to make up for the time machines are down. But Nokia discovers the modern machinery rarely breaks down.

The factory can’t satisfactorily explain why the girls work 12 hours a day and why their pay is 50% below awards. But the factory manager will look into it!

Every girl needs permission for a toilet break, isn’t allowed to talk to her workmates and is under constant scrutiny by a free roaming factory hand.

Permission for Nokia to talk to workers one-on-one was denied, but eventually granted. The factory manager hand picks the girls allowed to speak.

Nokia has to convince the girls there will be no retribution from management for telling the truth. They then tell of management’s bullying and verbal abuse if they make a mistake and of their tightly controlled, bleak working conditions.

One image captures it all. It’s the girls hunched over their machines, looking neither left nor right, with an anxious, tense look on every face, working in complete silence. The roaming factory hand is ever present, watching every movement. And this is a decent factory!

These inexcusable working conditions are the reasons you can buy cheap goods. The only rags to riches story here is the factory owner who underpays and overworks his girls.

Will you work in these conditions? Not likely!

You love working in a company that’s warm, caring and friendly because it brings out the best in you.

We chose just such a company to make all our products. And it’s a home away from home for their workers. Because the men and women who make our products are very special. They all have a disability and make everything with love and care.

Their work environment is benchmark status. They receive one-on-one training. And a social worker and nurse are there for those times when they need a shoulder for support or a mishap requires attention.

They’re paid above award wages and if they make a mistake, they’re shown again how to do the job correctly. With kindness and consideration.

Smiles and good humour abound. Exercise breaks twice a day stretch their muscles and relieve fatigue.

Their able bodied co-workers are chosen with care. They must be compassionate, thoughtful, tolerant and patient. They also undertake special training on an ongoing basis for working with and understanding the special needs of a person with a disability.

These men and women have been sewing for us since 1994 at Wangarang Industries in Orange NSW.

We want that same feeling when offering our products as in making them. So we use direct marketing. That way we can answer your questions, develop a personal relationship with you, let you know it’s a privilege to have you as our customer and say thank you for supporting us. And direct marketing lets us inform you how our product is different and why you’ll love it.

And The Fitz Like A Glove™ Ironing Board Cover is different. Such a simple solution to a very irritating problem, designed by an architect for his mum, has changed forever the way 75,000 people around the world feel about ironing.

Yes, it costs more, but with it’s long life, ends up cheaper than your cover made in China.

You’ll love it because it never wrinkles, creases or moves on your board. Just think of thousands of hours of trouble free ironing. That’s what the tension cord system does for you.

You can see in the photo how easy the tension cord is to secure. You only need to criss cross it over four hooks. No lacing, no tying of cords. And your board always folds up and down with ease.

Plus size isn’t an issue. One size fits all the popular boards made in the last 60 years. We also have Extra Small and Extra Large for those special boards.

The tough, 100% cotton drill should last you an average of 3 years. My cover is 6 years old. A February 2006 trade in was 10 years old.

Averaged over 3 years, the cover is a tiny $13 a year for trouble free ironing. 75,000 people around the world think it’s worth it. So will you!

This cover is so jam packed with advantages and quality features,
we give you 4 guarantees.

●12 months replacement for wear and tear on the fabric
●Lifetime guarantee for the tension cord system which gives you your perfect fit
●Total colourfastness guarantee
●No questions asked 100% money back, including postage, if you’re not happy.

We take the risk, not you!

Made in rural Australia with love and care by men and women who have a disability and really enjoy what they do. $13 a year for thousands of hours of trouble free ironing. Plus it changes your attitude to ironing forever because it’s such a joy to use. What’s there to think about? Try it now! Risk free!

Peter, a NSW Town Planner, says it best.

"Carol. If anything can make ironing bliss, your cover does. We all want to transform the world. In a small way, you have. Thanks for that. Peter "

To find out more, visit our website at http://www.interfaceaustralia.com. Then let's meet again. Online or offline.

Take care,

CAROL

Carol Jones
Director
Interface Pty Ltd

Trust me?

Written by Carol Jones
Director, Interface Pty Ltd
Designers & Makers Since 1994

What do you do when your ironing board cover scrunches up?

That’s simple.

Get one that doesn’t.

What do you do when you have a headache? Take a pain reliever.

Want to lose weight? Go on a diet.

And get fit? Buy a pedometer and start walking.

Your children have trouble reading? Sign them up for after hours coaching.

Want to kick start your day? Have a healthy breakfast.

There seems to be a solution for just about every problem. And most of the solutions appear to be pretty simple, don’t they? But do you know what the biggest problem of all is?

Which solution can you trust?

The world of marketing is full of spin. Insinuation, innuendoes and half truths flourish.

Half truths create confusion. Julie-Ann Davies points this out in her article, Spoiled For Choice, in The Bulletin’s July 11th edition. She comments on the new regulations for food, which allows food to be marketed for its health benefits.

If a food manufacturer in Australia puts additives in their food, they can label it as a health benefit and lull you into the false supposition that what you’re buying is 100% healthy.

Julie-Anne uses Kellogg’s Coco Pops as an example of ‘insinuation’. They add calcium, B vitamins and iron to their cereal and market it as a healthy cereal.

What don’t they reveal? It’s low in fibre and 30% sugar.

Rosemary Stanton, one of Australia’s leading health nutritionists, “assumed that a product loaded with sugar, but with some nutrient added, would be barred from making a health claim.”

But it’s not.

So, eating breakfast isn’t so simple after all, is it?

Neither is choosing a pain reliever that doesn’t give you side affects; or finding a diet that offers you healthy, lifelong changes to your eating habits; even pedometers have faults: - cheap ones add steps when you go over bumps; and which coach will really improve your child’s ability to read?

Here’s one more example of marketing spin, posted in the Guerrilla Marketing Association’s GMA Insider report for June 2006.

An interoffice softball game was held every year between the marketing department and support staff of one company. The support staff beat the marketing department soundly. The next day, the marketing department posted this notice on the company’s bulletin board.

“The Marketing Department is pleased to announce that for the recently completed softball season, we came in second place, having lost but one game all year. The Support Department, however, had a rather dismal season, as they won only one game all season.”

Marketing spin at its most alluring.

If you can no longer completely trust the most basic of purchases, your daily food, how do you know you can trust other products you buy or the business you’re dealing with?

It isn’t easy. But there are some simple ground rules.

Ask yourself why you’re buying this product.

Is it to solve a real problem, or is it just of novelty value? How long do you expect it to last?

If it’s to solve a problem, find out if it really does. Ask the manufacturer or retailer to back up their claims. To give you proof the product works. Then assess their response.

If they don’t get back to you quickly or can’t answer your question with anything more than a vague answer, look for another brand or another retailer.

If it’s a small business, they should be able to give you examples of customers who have used this product and how long it should last. They should be able to impart a feeling of confidence and knowledge about the product.

Have you heard of this product before? If you have, what do other people say about it?

If you haven’t, can you find out more information?

Is there a product brochure available with technical information? How much information does it contain? Minimal? Or so much, you feel confident this is the product for you?

Is there a website that specifically tells you about this product? Does it have technical information? Does it have customer testimonials? Does it have good contact information, like addresses, telephone numbers and personal names in case you have a problem or want to know more and prefer to talk to a person rather than send an email?

Let’s get back to my first question. 80% of Australian homes have an ironing board topped by a flimsy cover. So what do you do when your ironing board cover always scrunches up?

Get one that doesn't.

Our cover, The Fitz Like A Glove™ Ironing Board Cover, never rides up, wrinkles or creases. It gives you thousands of hours of easy, trouble free ironing And that’s unconditionally guaranteed. It really is a simple solution to a difficult and irritating problem.

But you’ve never come across a cover that doesn’t scrunch up.

So why should you trust what we say?

I really wanted to know the answer to that question.

So I asked first time customers who ordered online. Because the internet is considered to be the most risky form of purchase. Here are 4 points of view.

Maree Green of Lindfield NSW. “It’s the effort you put into your website. The photographs of every facet of the cover and felt, the volume of information you provided, plus your guarantees, gave me comfort and reassurance that this was a good purchase.” This is only Maree’s 2nd online purchase.

Norma Ives of Yowie Bay NSW. “I see your regular advertisements in Australian Stitches magazine and looked you up. The wording and photographs were so well presented, they gave me confidence.” This was a first for Norma. She normally doesn’t buy things she can’t see, and has never bought on the internet before. She’s 85 years old.

Claire Milson of Edgecliff NSW. “I like the fact you are a rural business. And that your product is made by men and women who have a disability. The product looked good, so I had no hesitation in buying what I saw.”

Mary Kingsford, Textile Artist, of Idalia Qld. “The presentation of your website, your secure online payment facilities, your testimonials and the good photographs of each product from many angles plus your guarantees sold me. You replied to my email questions quickly and returned my phone message within a few minutes. I felt you were a well run business.”

There you have it. Trust is subjective and different for each person.

But it’s always about safety.

It’s when you feel secure and that little voice inside you says, yes, it’s OK, go ahead.

It’s a privilege to be trusted and to discover why our customers trust us. These are some of their reasons.

  • We go out of our way to help you. Quick replies to phone calls and emails matter.
  • We give you information that isn’t a veneer. It has substance and depth. The more we tell you, the more confident you are about our products.
  • Testimonials do count. They’re 3rd party endorsements and give you some idea of who else uses our products and how we do business.
  • Our 4 guarantees mean we back up our claims.

That we choose to have our products made with love and care in rural Australia by men and women who have a disability shows we care about more than money.

There are 75,000 users world wide who trust The Fitz Like A Glove™ Ironing Board Cover. And growing daily. I want you to be next.

My marketing spin?
You’ll never know how great it is until you try it!
Not a half truth, but a whole truth.

Visit our website at www.interfaceaustralia.com to discover for yourself the details and the photographs.

While there, click on Finer Points. The blog on the left is The Ironing Board Cover Lady. It’s the continuing story of how our accidental business began on the dining room table of our rural property. No hype, no sales talk. Just a warm hearted, down home tale of 2 people starting a business on ‘L’ plates without an instructor.

Then let’s meet again. Online, by mail or on the phone.


Take care,

CAROL

Carol Jones
Director
Interface Pty Ltd
Ilford NSW 2850 AUSTRALIA

Tel: +612 63 58 85 11
Fax: +612 63 58 85 10

Sunday, June 11, 2006

Micro Business-Macro Results


Written by Victor Pleshev, Director, Interface Pty Ltd
Designers and Makers Since 1994


Part 1
TAKE ADVANTAGE OF BEING SMALL

If you’re a micro business like us (less than 5 employees), then you're competing against large, well resourced retail / service organisations for customers. This can be a daunting task. And yet you represent 96% of all businesses in Australia. You’re Australia’s largest employer-3.3 million jobs, 47% of the private sector. But most small businesses still think that they can’t compete against the big guys.

Not so!

Over the years we’ve learnt what works for us and some of it may work for you. The two of us have been running a micro business from rural Australia for thirteen years, selling the same product type, by mail order and the internet, as available in every large retail outlet and have managed to increase our market share every year. Last year we grew by 22%. This year we're growing by 33%.

How?

1. Show your customers the value and they will pay the price.

The sacred cow of selling in Australia is price. You’re told over and over to make it cheaper and sell it cheaper or they won’t buy your product.

Our products cost from 4 to 7 times more than the same type of product available in big retail outlets. But we’ve never used cheaper components or reduced manufacturing costs by cutting corners. Our customers notice this and have allowed us to increase our sales price and market share every year.

Why?

People respond to the benefits the product has for them, not the cost. The retailer just puts the product on the shelf and doesn’t really know much about it. Because you know your product, and can tell your customer why it’s better and sell them on its benefits, price doesn't become an issue.

2. Everyone is a potential customer.

People who sell are often taught not to spend time on those who aren’t going to buy now. Don’t waste your time on tyre kickers.

We treat everyone we come into contact with as potential customers, even if we know that they’re not going to buy now. We keep this in mind even if we’re just giving street directions.

A few years ago I was driving to Sydney on business. When I got to Lithgow, I saw two Rottweiler puppies on the road. Being a dog lover, and the Great Western Highway being a major artery for trucks, this was a dangerous road for these puppies to be playing on. So I picked them up and put them in my car.

In typical rural fashion, they had no collars or tags on.

I couldn't take them to Sydney with me, so I knocked on the first door I saw. Fortunately for me, the lady who answered knew the owners and was happy to take the puppies and return them to their rightful home.

Being grateful, I noted her address and next day sent her our Fitz Like A Glove™ Ironing Board Cover as a thank you gift. I had no ulterior motive other than I really appreciated not having to worry further about these puppies.

To my surprise, a year later we received an order from her for her daughter. And she's been a very loyal customer ever since.

Why?

Everyone can influence someone else, or they’ll buy later. Each person can influence three others and those three, three others each etc. The retailer is only interested in the wallet, not the customer.

Show your customers, and all the people you come into contact with, that they’re important. Then they’ll be more likely to buy your product and tell others. That’s how you’ll start building a network. A person will talk about a bad experience to 7 to 10 other people but about a good experience to only 3 people.


3. Service, service and service.

Good service takes time and costs money, so most large retailers provide the minimum amount to sell the product. They don’t consider anything else to be necessary.

We respond in detail to all enquiries, whether by phone or email. We often send samples to potential customers; always guarantee our products with a full refund including postage; organise gifts and send them direct at no extra cost; write hand written thank you notes to every customer; and reward referrals with very special token gifts.

Why?

If you love your customers, you'll want to spoil them. When you spoil them, your customers will feel pampered. You'll stand out because very few retailers give good service. So your customers will not only want to buy more of your products, but will refer you to their friends and family. If each customer convinces 3 people to buy your product, that’s 3 new customers you don’t have to look for. Good service actually makes you money and it’s the best way to grow a business.

Has this happened to you?

We bought a bread maker for an elderly relative, which required superhuman strength to pull the bread pan out of the unit. The manufacturer agreed to look at it under warranty. They then told us that this particular model wasn’t suitable for frail people and that it was up to the retailer to warn us. Not their problem.

Instead of replacing the bread maker with a more suitable model, at a cost to them of say $30.00, they lost us as customers forever and we’ve told everyone we know not to buy the brand.

This is a typical example of big business attitude and policy:- cut customer service to reduce overheads. But it’s a blessing for small business. Their weakness is your strength. Their dissatisfied customers are your future customers.

You can find out more about how we do business by visiting our website at http://www.interfaceaustralia.com. When there, click on Contact Us.

To read what our customers say about our products and service, click on Finer Points.

To contact us personally, Carol Jones or Victor Pleshev, ring Tel: (+61 2) 63 588 511 or Fax: (+61 2) 63 588 510.

Or drop us a line at:
Interface Pty Ltd
Post Office Box 139
Kandos NSW 2848 Australia

Better yet, post your thoughts on Comments below.

However you respond, we'd love to hear from you!