May 2006
Size does matter
Watch out for the little guy
by Lori Valyko Weber

Ray Somich is general manager of WELW radio in Willoughby. The company is one of a few independent locally owned stations. Photo by Marc Golub

Wal-Mart sells birdhouses. Country Attic, a specialty shop in Painesville, sells birdhouses.

Wal-Mart’s are cheaper and, because they’re mass produced, they’re all the same. Country Attic’s are more expensive, mainly because each unique house is hand-made.

Which store interests Sally Shopper more?

Clear Channel radio stations sell air time. Willoughby-based WELW sells air time. Clear Channel owns the vast majority of stations and can offer package deals that small stations can’t. WELW appeals to a local niche market that it understands inside out.

Where will prospective advertisers be more tempted to spend their ad dollars?

Applebee’s sells dinners in cities across America. Beach Club Bistro sells dinners in Euclid. Applebee’s national marketing and advertising campaign make people aware of what to expect long before they glance at the menu. Beach Club Bistro can’t touch the marketing reach of Applebee’s; hence, it can be difficult to lure a new diner to a Beach Club table.

Which restaurant appeals to average parents who want to take their kids out to eat on a Friday night?

In most cases, the large, established chains — the Goliaths — offer consumers wider selections at lower prices than their independent competitors. Yet, a drive down Vine St. or Mentor Ave. shows off a robust contingent of entrepreneurs who have managed to keep their doors open and continue to thrive in a seemingly hostile environment.

Part of their strategy, most of them say, is to always be ready to change and to continue offering something that sets them apart from the big boxes.

“I don’t try to compete with Wal-Mart,” says Kaye Swor, owner of Country Attic. “For the nondiscriminating buyer who just wants a birdhouse, it’s usually a matter of price. That shopper isn’t going to come into my store anyway, or if she does, she’s looking for something that’s going to set her apart from her neighbors. So it’s my job to provide that and help her find it. My customers are looking for something different than what they’d get from a large retail chain store.”

Small businesses who want to flourish in a competitive, low-price environment need to embrace this kind of thinking, says Ray Somich, general manager of WELW, who is also a highly sought speaker on this topic.

It doesn’t matter if the business is selling radio time, widgets or lunch buffets. To stay afloat, small businesses need to differentiate themselves. “When I ask a group of restaurateurs to share with a group what makes them attractive to customers, they all say ‘food, service and atmosphere,’” Somich says. “After the third and forth restaurant owner repeat these as their assets, they start catching on that they’re really all the same. Then they see they need to do something else. They literally need to think outside the box.”

Somich, who grew up helping in his father’s independent business Four Seasons Equipment, saw firsthand how a small business had to think differently to remain vital. He also has had a stake in several local independent restaurants. And he says about three quarters of WELW’s airtime clients are independent businesses. In all cases, he believes that small business owners are deluding themselves if they think they’re going to sell the same product in the same way as everyone else, but at a higher price.

“You can’t be ridiculous,” he says. “Customers are looking for the best value, product and service. They don’t care if they get these things from you or a big box. And we have to get over it and stop complaining. It’s not good or bad. Our customers don’t owe us anything. So, if you want people to come into your store, you have to make it convenient, enjoyable, memorable and valuable for them to do so. Be willing to do things that other places can’t or won’t. Stop selling the same products, change your inventory, offer delivery or fax and email orders.”

One of the biggest advantages Somich sees that small businesses have over their large counterparts is an ability to be quick and flexible. Large corporations are like King Kongs, and although their large size provides marketing muscle, it also can be a hindrance to their ability to change policies to accommodate customers’ changing needs.

“The King Kongs come stomping into town knocking down buildings and getting a lot of attention,” Somich says, “but they can’t change direction quickly. They can’t handle special requests. And here is the fun challenge for entrepreneurs. We need to find ways to attack the vulnerabilities of these Kongs. There will always be room for the creative entrepreneur to flourish, even when surrounded by conglomerates. The biggies can’t take risks nearly as easily as the small businesses. Small businesses don’t need to approach shareholders and vote on making a simple decision. It takes them a long time to adapt to market needs. Small businesses can just react and adapt.”

One-of-a-kind

Marie Cartor, owner of The Corner of Art & Function in Chardon, sells one-of-a-kind artisan items including handmade jewelry, pottery, blown and stained glass and other decorative items. She’s found it difficult to stay afloat over the past four years, yet by adapting to customer wants, she’s been able to keep her doors open. She’s hoping that this year will be a turning point.

“I’ve done everything I can think of,” Cartor says, “but my customers have been a good beacon for many of my decisions.

“One of my issues is that people don’t really need me. I’m not a necessity store. I’m a place that provides beautiful art items, and people come here when they want something special for themselves or when they’re looking for an interesting gift. So, I go out of my way to provide service. I remember people’s names and their tastes. When people enter Art & Function, I pull items and arrange things for them almost like a private showing. People remember that kind of attention, which is something they don’t readily get at a large store.”

Cartor’s marketing budget is limited, so she is highly selective of where she spends her advertising dollars. She’s found that it works to her advantage to be accessible for schools, churches and clubs or organizations when they need donations. “Anything I can do to make people aware of my products is helpful,” she says, “and donating to functions is a great way to showcase what people can find here.”

Similarly, Country Attic specializes in country primitive décor and craft items, offering products such as candles, lamp shades, punched tin lanterns and linens. Although people can find lamps and linens at both Wal-Mart and Country Attic, Swor is careful to make sure that hers are different. She pays attention to her competitors’ importers, and she stays away from them.

As someone who’s been in business 14 years, Swor speaks with conviction. “I don’t like using importers, but I have to do it sometimes,” she says. “I’ve actually gone to shows, stood in line to buy patterns or other items for my store, and have seen a competitor buying the same things. I’ll just get out of line and find something else. I know I have to provide items that people won’t find anywhere else.”

She’s not afraid to think differently to help her clients, and regards her competitors as potential assets. When a customer is looking for an item that she doesn’t have in stock, Swor will often send her to another place that does carry it. “I’ll even make phone calls to other stores while the customer is in my shop to help her locate what she wants,” she says. “The main thing is that I’m serving the customer, and that person will remember my help. I’m taking a chance, but I know that I would appreciate the help if I were in her shoes.”

One of Country Attic’s specialties is rug hooking, an expensive craft that’s growing in popularity. Not only do people go to Swor’s store for supplies like wool yarns, frames and hooks, but also for guidance on their projects. “It’s something else we offer, and people appreciate our expertise,” she adds, “which keeps them coming back. It differentiates us.”

Original restaurants

Restaurants often face the same marketing pressures exerted by large franchise eateries. To help take on the mega-marketing machines of a T.G.I. Fridays, Beach Club Bistro has joined forces with about 70 other restaurants and formed an organization called Cleveland Originals.

“Supporting local restaurants is vital to the local economy,” says Bob Gould, general manager of Beach Club Bistro, a restaurant that offers upscale eclectic entrees. “People are so brainwashed by ads on television, radio and in print to eat out at the same few places, that they don’t even consider the smaller independent restaurants. People don’t know we’re here, no matter how different we make ourselves. And what most people don’t realize is that when they eat at a locally owned restaurant, their money stays in the community. When they eat at a big chain, most of those dollars go out of town, out of state and sometimes out of the country.”

Cleveland Originals, about two years old, is helping independent restaurants pull their ad dollars together and create some of the same marketing tactics of large chains. “We’re working to get our chefs on the air in talk shows,” Gould says. “We’re working on a large food show to be held in November at the IX Center that will promote all our member restaurants. We want to get Cleveland Originals’ materials out in print ads.

“We, like many other local restaurants, offer things diners can’t find anywhere else. But part of our problem is that we need to make people aware of what we offer. So, we’re doing something about it.”

Offer everything

Stanmor Realty in Willoughby is one of the area’s few local Realtors. Open since 1959, it’s Lake County’s oldest continuous realty company. The company’s phone loop says “Stanmor Realty is your hometown Realtor,” and Stan Leff, owner, works hard to live up to this image. He attributes his company’s longevity not only to a talented staff, but also to their willingness to move with the times and adapt to changes in business habits.

“First of all, we offer everything,” Leff says. “And most of the big realtors can’t do that. We can stay with our customers through every aspect of their transactions. We help them buy, sell and then manage their properties. We help build homes. We broker and appraise. When a customer needs something, even getting a credit report, he doesn’t have to go somewhere else.

“Next, we’ve kept up with technology. The market has become so multilevel and communication is so instantaneous, that to survive, we’ve had to embrace change and be able to have access to everything that the biggies do.”

As far as advertising and marketing go, Linda Leff, Stanmor office manager, is a big believer in the value of good signage. “Of course, we use all the traditional marketing media like Harmon and other ads, but good signs right on the property give a lot of visual appeal too,” she says. “It’s a good complement to the high-tech virtual tours on the web.”

The personal touch

Although small, independent businesses often have to swim upstream to survive, many local shops are doing more than simply surviving. They’re flourishing. WELW reports that its ad sales are up at least 10 percent from last year. “And this isn’t what’s supposed to happen for a station like this,” Somich says. “And last year was our best year ever.

“For a small business to have any growth is good, but to keep things growing is a constant goal and one we strive for. We, like all small businesses, have to find a way to remain creative to stay competitive.

“And to do that, the best way is to attack the situation by offering things that King Kong doesn’t. Be able to adapt to change. Use technology, but keep a personal touch and accentuate the positive aspects of being local.”

Lori Valyko Weber is a Hambden Township freelance writer.