Sunday, December 20, 2009

Bounce Back in 2010 - Really?

Some pundits and experts are showing signs of consumer optimism and projecting that consumer spending will 'bounce back' later in 2010. Link to recent article here. My feeling is that consumers will start to feel satisfied with saving some money, and doing with less. And once they reach that point, they will start to think in terms of 'how can I save even more.' Buying habits will continue to evolve away from big spending, even if the economy begins to recover.

I wrote about grocery-anchored neighborhood centers over a year ago. And looking at products and services in your '1 mile radius.' Trends are now showing that strip center visits are up, and that department store and mall visits are down. Grocery anchored retail centers are still performing well. Other sectors that seem to be doing well are outdoor industry retailers, health clubs, health food, and of course discounters. In trying times, people are learning to take care of themselves first.

As baby boomers move on into their post-career years, and think back on the losses they sustained in 2007, 2008 and 2009 they will think twice about that new pair of designers jeans. That pair of Sam's Club 'Members' brand jeans will work just fine. Generation X will generally grow further into management positions.

At the same time companies are using all the 'green' and 'sustainable' hype they can, which will eventually become background noise. Until there is a fundamental change in personal values, and energy costs rise high enough to painful, it will just be hype. But beyond that point, these words will become economic factors, not fashion statements.

As corporate history shows, leadership roles will likely skip a generation and Generation Y will assume leadership positions at companies, or start their own and let the old ones die off with their predecessors. This evolution over the next 10 years will reshape how business is done. Combined with the effects of the recession, and evolution of sustainable thinking, I believe this recovery will be unlike many previous ones, and will profoundly reshape the way US consumers think about their purchases.

Monday, December 7, 2009

And the Survey Says...

It’s that time of year, where I take to shopping for something special. I’m one of ‘those people’ who do not have any real idea what to get some people, so I do an awful lot of browsing - both in-store and online – looking for something cool to buy. So during this time I have much more interaction with retail environments and sales associates. But even throughout the year, I make a point to pay attention to who does well, and who does not. My favorite thing to do is to play ‘stump the associate’ where I ask increasingly in-depth questions until I get far enough to stump them. Here are a few great service examples:

Macy’s – was shopping there and had bought some earrings for my wife, when I inadvertently laid the bag down to try on a shirt, then some shoes and then a jacket. When I got home I realized I did not have the earrings. I called the store, and the associate who took the call in men’s apparel could have just said ‘if we find it we’ll call you’. But he chose to instead say ‘OK, you were at the jewelry counter. Where did you go next?’ And then he proceeded to re-trace my steps in the store until he found my abandoned shopping bag. I took HIM a Christmas present.

Bass Pro Shops – I went in to buy a lightweight backpacking stove. Of course, it was the night before the big hike, and I was running short in time. When I arrived in the camping department; the sales associate was a (no disrespect) blue haired lady who looked to be in her 60’s. I thought to myself, ‘Great, I really wish there were someone here that could help me…’. But I gave her my trust, and what I found was that she really knew her stuff. Finally I found one question she could not answer, but she immediately said ‘but John over here actually uses these stoves, let me get him’. Of course I bought a stove.

Bose Outlet Store – This one takes the cake. In the store, we got the most thorough tour of electronic products I have ever had. The store was ‘designed’ for this tour. When we were done, my wife (the frugal one) wanted to buy the whole home theater setup. On our way out the sales associate thanks us for our time, and to call with any questions. We ate lunch and went back to the store, and we only bought the audio system (Bose Lifestyle) and three (yes, three) Wave Radios. But the story does not end there. When I got home, (40 miles away) I realized I did not have a certain cable. When I called the store, and they realized how far away I lived, they offered to ‘meet me’ where I would only have to drive about 5 miles and deliver the cord. Then, when the cable guy messed up the system, and online tech service could not figure out the problem, they just shipped me a brand new unit, no questions asked. That kind of service builds loyalty.

So why in this day and age of fierce competition are retailers not stepping up their level of service? All indications is that service is not getting any better. Seems like this would be the least capital intensive way to boost sales, and build loyalty. Most designers would say ‘you have to design a new brand’. I say you have to start with the relationship you have with your customers. Which really starts with the relationship management has with the staff. In store, online, or remote customer service – they all have to be good. No, not good, they have to be GREAT.

Do you really want to know how good your service is? Send some people in to ‘stump the associate’ or call and ask someone to search for your lost bag. Or tell them the cable guy messed up your audio equipment and see what they say. If you REALLY want to know, I will personally shop your business to find out where the weak links are.

In the meantime, you can read here about the current survey regarding sinking levels of customer service in retail environments.

Sunday, December 6, 2009

Lean Mean and Green: A look at the future of the AEC industry

By Bruce Adib-Yazdi, AIA, LEED AP

Part I: Introducing Lean, Mean and Green.

This series of blogs is intended to shed some light into upcoming changes in the roles of those involved in creating the built environment.

The role of the architect on building projects has shifted from being 'the master builder' in the Roman days, to the ideals of 'Howard Roard in Ann Raynd's: The Fountainhead." Later, that role would shift again to the middle-class, family-loving architect depicted through Mike Brady in 'The Brady Bunch' then shifting again to what we know today: an intense position of being the central pressure point between client expectations, consulting engineers and designers, product manufacturer reps, code officials, and contractors.

The schedule of projects has hastened to such a furious pace that chaos and information overload is the norm, and only the biggest of problems and issues get full attention. Between email, cell phone, Skype calls, project extranet sites, and other modes of communication, real face-time has dwindled. And quality has been replaced with value.

The current state of the economy gives us all time to pause and think about where we need to go and where we need to be. Over the next few weeks I will a series of blogs that I believe begin setting the course for the future of the AEC industry. This is not my idea, simply my view of what I have learned in my 20+ years via practice, reading, experiencing and now projecting the future.

There are elements of 'Lean,' including smaller non-localized teams, better software, less waste, and lower operational overhead. 'Mean' refers to being tough on issues, passionate about results, and seriously engaging the team (including the client) in the meaty discussions and having fun in the process. And 'Green' is about as clear as mud these days. The goal here is to identify the potential green strategies that the project and client values and bring them together while working on increasing quality and efficiency of the building systems.

In lieu of trying to get each of the AEC team roles to 'do their part' in this process, my intent is to apply these three ideas in a way that shapes new roles and responsibilities for the AEC team members.

I encourage your feedback, comments and discussion along the way.

Part II: Changes in Society

How has our society changed in the last 50 years? Two significant changes led to where we are today in the planning and design world. They are the advent of consumer driven cars, (and the roadways that support them) and air conditioning (and the buildings that they cool).

These two changes have significantly affected how we think about designing our communities and buildings. They have shifted us from neighborhood markets to malls and bedroom communities; and from front porch conversations to chatting online from the comfort of your living room. Both of which have caused us to have less personal interaction with one another.

Along with these two changes, we as planners and architects simply got lazy in our professions. Trading smart decisions about urban infill and using existing infrastructure, to extending utilities and roads anywhere a developer thought he (or she) could make a few bucks, effectively limiting access to pedestrians and bicycles and spreading us out where transit could not be supported. We started to design buildings with no consideration for exterior skin systems, solar orientation, ventilation and envelope. Roads, cars and air conditioning made all of this possible.

Ironically, the first roads ever built were for the benefits of bicycles. Air conditioning was invented to help reduce relative humidity in the manufacturing of paper. They were not intended to help us grow further apart and secluded from each other - as a noted politician once said; ‘Unintended Consequences.’

At the same time, we started moving from a producing-based nation to a consumption-based society. This shift began the process of mass production, imports from across the ocean, consumerism in everything, down to the food we eat. We started expecting to be able to buy things like strawberries all year long, in as much quantity as we wanted and for a cheap price.

That kind of thinking and the advent of technology such as fax machines, CAD, and now cell phones, email and internet-based project management spurred the expectations of reduced design time, cheaper buildings and faster construction. And at the same time everyone in the AEC industry started shifting responsibilities along the way. The construction booms in the last two decades have transformed what used to be a very deliberate process to one that seems to always be looking for the cheapest, fastest solution. It is not always the best long-term solution.

Part III: So what’s happening now?

There was a push in the late 60's and early 70's to more energy efficient buildings, passive solar and more fuel efficient vehicles - all in response to the higher energy prices.

In architecture, some of the first things we learn about are things like solar orientation, prevailing winds, site orientation and window replacement. However, if seems that with the push for 'cheaper and faster,' these notions get set aside for efficiency and maximum utilization of the real estate.

Along comes LEED (Leadership in Energy and Environmental Design) and we all start remembering what it was we were taught in school. And some building owners are latching on to the marketing aspect of the trend. And we are all euphoric that we are actually doing some good. In reality, LEED has become the tool that we have used to remember what we should be doing all along. I was reminded of that this week at the ICSC Retail Green Conference in Hollywood, CA.

I was talking with a retailer who has built some mega stores in the U.S., but is primarily focused in Europe and Russia. As we talked, I realized that European standards are such that if they tried to market their buildings as 'green' it would be a step backward because that is what they do as a matter of course. It's crazy for them to think that each tenant in a shopping center has their own stand alone rooftop unit and that anything with a payback of less than eight years is a no-brainer - you just do it.

Another aspect of European standards (which can also be found in Montreal) is the idea that 'built to last' is the sustainable thing to do. Minimum 50-year life span on buildings is what is expected. There are very few 'disposable' buildings. However, I suppose if you design a building that is designed to be 'sustainable' as well. Even more interesting was that the concept of 'green' was foreign to the language in Europe. Sustainability is what they understand.
We are moving that way, incrementally. Which in many ways is okay. But what we need are some revolutionary ideas that help propel us forward.

Stay tuned for Part 4: 'The Lost Art of Drafting.'

Part IV: Technology and the lost art of drafting.

When I first started in the profession, we were still hand drafting and we did some class work on PCs. At that time, the fastest PC available to us was a 286 MHz system. We worked through design issues, alignment of materials, and clarity of drawings by thinking through how all the lines on the paper came together. It forced a certain depth of thinking that CAD has taken away.

Moving into CAD, we forgot why it was important to plan the set of drawings - because you could change the layout or sheet number witha click (or two) of a mouse. We thought we could get more efficient by not having to hand draft - and re-use details, etc. What we learned was that this system allowed us to get a little lazy and not think so much about the project.

During this period, a gap grew in the seasoned principles who did not really pick up on the CAD systems, and the young professionals who embraced it. The job of the seasoned architect then became to teach the younger staff how they arrived at design solutions, and help them figure out how to depict it in CAD. We lost much of the 'art of drafting' in this process.

At the same time, contractors started doing less 'self performed' work and more subcontracting. And more 'Project Management,' less hands-on training. And the further advent of PCs, email and project-based software caused - believe it or not - more paperwork. So the architect started spending more time 'defending' the drawings and answering RFI's from contractors who were getting less field experience and more office time. This effort, coupled with the technology gap that grew between the younger and more experienced architects, caused a shift in the time we saved using CAD being used for more project coordination and administration.

Now we have begun another shift - one that has taken a complete mindset shift, and requires more in-depth thinking of the building systems. Building Information Modeling has given us a tool to actually draw the building. Not a 2-dimensional representation of the building, but the actual building and all it's sytems and parts. It allows the model to hold intelligent information about material quantities, energy efficiency and conflict detection of various systems.

It also opens the door for subcontractors and material suppliers to be engaged, using their design and fabrication software to 'contribute' to the model. This starts the conversation about how we can work together to minimize duplication of design work through engaging the subcontractors and fabricators earlier in the design process.

This sets the stage for the meat of this series, and will lead us into the next installment which will discuss the practice of 'Getting Lean.'

Part V: Get lean.

So with the background behind us, now we get to the heart of the Lean Mean and Green topic – starting with Lean. When I think of lean, I don’t consider shortcuts, ‘value engineering’ or reducing the functionality of the project. Instead, it’s like a body builder. You try to eliminate fat by doing the right exercises and eating good food. As a result, you expose the strength, beauty and efficiency of the human body.

For the built environment that process begins with the end in mind. I think about both the effort and steps it takes to manage the design process, as well as the materials and methods it takes to construct the building. The first step in that process is to extract the vision of the ‘place’ the client has in their mind, and a program (functional requirements) that meets the needs of the client and the building occupants. Establishing the baseline program is an extremely important part of the process – it will be the test of design solutions and what holds the team in balance throughout the design process.

Elimination of wasted steps in the design process might mean having difficult discussion about particular issues before moving on to the next step. We seem to get caught up in saying things like ‘we’ll figure that out in the next phase.’ The reality is that costs more time and money.

Looking at construction sequencing and details WHILE designing takes the knowledge and experience of seeing it done in the field. It takes many years of field observations, discussions with subcontractors, craftsmen and seasoned field superintendents to accumulate the broad knowledge in order to apply critical thinking to the details. This is where the ‘generation gap’ previously described starts to become evident.

Ultimately, if our design process can get to the essence of what’s important, and we work to make details simpler, and allow the materials to do what they were intended, I believe we can get by with LESS drawings and generate more clarity.

On the contracting side, it seems that contractors should be thinking through their material orders, and trying to minimize field work. Ordering pre-cut material, having materials delivered in batches that relate to the sequencing, and placing material onsite where it reduces the number of steps necessary to put it in the right place are all factors to becoming more lean.

One resource I found recently was the Lean Construction Institute. http://www.leanconstruction.org. This organization, founded in 1997, is dedicated to developing knowledge about project-based production management for design, engineering and construction.

One thing is for sure. Recessionary times help us ‘lean up’ our organizations. The good news is that when business does pick up again, we’ll know how to operate leaner. The questions is, will we know how to operate BETTER?

Stay tuned.

Part VI: On being mean, uh, I mean ‘passionate’.

Once you start thinking about designing projects in such a way as to minimize materials and resources, then you can start thinking about being tough on the issues that will make a difference. Once all the ‘fat’ is stripped from the design and construction, you are left with what matters the most. Life safety and code compliance, the expression of the building, and systems that make it work.

The design team has great influence on all three of these factors. They all work together to make a building that is safe, makes a visual statement and operates as efficiently (and effectively) as possible. It takes a certain dedication to stay focused on the desired results, which were documented in the program of the project.

Of course, there are ways to simply meet the requirements. But, one of the things we all need to keep in mind is that ‘meeting goal’ is not what we want engraved on our headstone. So balancing ‘tried and true’ methods, along with some creative thinking, and breaking some bit of new ground on every project helps the whole industry move forward.

Don’t think you have to design a detail a certain way just ‘because that’s how we have always done it’. Keep looking for ways to make the detail less complicated, or require less materials, or work better. Pushing the edge takes a certain ‘mean streak’ from time to time, and that’s where breakthroughs are made. Not following the collective thoughts of the group sometimes brings us new ways of viewing old problems, and new solutions to those problems that may not have been discovered otherwise.

Sometimes it’s simply a matter of going beyond the symptom to fully understand the real problem. For instance, sometimes we work really hard to design the building HVAC systems to be as efficient as possible, when we really need to take a hard look at the envelope to ensure it is as effective as it can be before we attack the HVAC. Looking for breaks in the insulation, leaks in vapor barriers and keeping the elements out before they become a problem will likely yield better results.

Then, looking at the big picture, pick the critical elements on the project that need to be the best they can be, spending the time, effort and resources to make them right. Then simply allow the rest to be ‘baseline’ or ‘industry standard’. By spending the effort in the right places, we can impact the most important parts of the project. And let the rest be what it needs to be.

So, don’t be afraid to show your ‘mean streak’ when it needs to be expressed, and when it will benefit the project or team. Then, allow the rest of your time to simply fall into place. You’ll need it to start thinking about the next installment of this blog: Green Economics.

Part VII: Green Economics: Oxymoron or symbiotic?

We have been leading up to this - the part where 'the rubber meets the road." And you probably are ready to hear that you have to spend more money than 'normal' for a 'Green' building, but that you'll recoup the costs 'over time.' Well, I'm here to tell you to forget all that. Besides, that is just part of doing good design and making value judgements on capital expenses compared to maintenance and utility costs.

Think about the relationship between a better process, a simple concept, and challenging the status quo on standard assumptions we have developed in the AEC industry. A better process places a higher value, and putting more effort into developing better information from which to make decisions early in the project. We should challenge assumptions like:

The architect is the only expert, and is supposed to know how to execute every detail. We should be looking to engaging suppliers and subcontractors in the design process to discover what systems make the most sense for a particular project.

Sustainability practices in the AEC environment are simply 'add on' expenses. Another way to look at this is to simply identify ideas and practices that make sense for a particular project and client; then integrate them into the project program and budget.

More drawings are always better. I believe that through working within the boundaries of traditional systems, we can reduce the amount of necessary detailing. Where we need more detail in the 'science' of the building - envelope design, mechanical and lighting systems - as well as the 'psychology' of the spaces - how do they make people feel, and how much more productive can they be as a result?

Interestingly, these are the things that European designers look at as baseline design requirements. For them it's not about 'being green' as much as it is about doing the right thing. Somewhere we have missed that, and are now working our way back in that direction.
The economics of this kind of thinking can't always be measured, but if we start developing baselines, and use BIM and energy modeling to review and check our design against baselines, we can work toward continual improvement. I'm thinking of numbers like BTUH per Square Foot per Year. And yards of concrete or pounds of stell per Square Foot. And employee productivity gains.

If you have not, you might consider picking up the book called "Natural Capitalism - Creating the Next Industrial Revolution.' If you're like me, you will read it and think 'wow, this is all good stuff' and you will walk away feeling good about your new found knowledge...that is until you realize the book was actually written in 1999 and you're 10 years behind the curve.
In the last seciton of this series, we'll bring all of the previous posts together and talk about the future of the AEC team and what it means to all of us.

Part VIII: Integrated Project Delivery and ABC’s Extreme Home makeover.

So applying these ideas to the current AEC industry, I believe that the new approach to designing and constructing projects is on the horizon. But, not immediately, as the recession has the industry deep in the throws of price wars. Interestingly though, right now would be the BEST time to try to advance and adopt new ideas. Many firms are already in the process of utilizing new tools and new delivery models for projects.

In a new delivery model, the role of the owner is not much different than it is now, except that they would be part of the entity that designs and builds the project, not just the owner that contracts the work. The role of the architect will be to the design (branding) of the building; be responsible for life safety concerns and to use Building Information Modeling to select the proper building systems that will create the best combination of use of land, aesthetic design, efficient construction, envelope protection and quality indoor environment. The contractor would be responsible for taking that information and working with suppliers and subcontractors to create the detailed plan of how the building actually goes together and constructing the building.

Actually, this method is not new, it just has not gained ground yet. It is called 'Integrated Project Delivery,' and is coming. Check out http://www.aia.org/contractdocs/AIAS076706.
You may think I'm nuts, but I think the most of what happens on ABC's Extreme Home Makeover applies to this discussion of Lean, Mean and Green and Integrated Project Delivery.

For one, the short duration of construction (1 week) requires an awful lot of pre-planning, design and prefabrication. Of course, they leave some of the final touches of design till the end, so they can really take time to make it personal. Many of the projects incorporate sustainable design elements such as smart use of existing land, daylighting, high performance envelopes, and high efficiency systems. And these are custom designed projects - not 'cookie cutter' homes. So they are delivering a high quality product, with great design and in a short time frame. Of course, if it were not for volunteers and donations, these houses would be very expensive.

But let's say we gave them two months to build it - longer than the very short one week period, but substantially shorter than a normal home building cycle - I'd wager that using some of the same tactics of planning, design and fabrication tactics, the home could be built for a reasonable cost, with a high level of quality, a custom design, and in a shorter time frame. I know this may not be totally accurate, but it makes you wonder:

'What is possible when you create a team that REALLY works together, each contributing what they do best, in a truly collaborative process?'

I think the answer is: 'Anything.'

Saturday, March 8, 2008

Whose Lifestyle is it Anyway?

As the shopping center and retail industries continue to evolve, along with the definition of ‘Lifestyle Center’; I begin to wonder: ‘Whose lifestyle is it anyway?’ Sometimes we try to ‘predict’ the future. In reality, the best we can do is look back, consider current circumstances, and project a trend going forward. This is one of the trends I can see playing out.

A Quick History
As we look back in time, one of the first ‘Lifestyle Centers’ ever constructed was The Country Club Plaza in Kansas City. JC Nichols’ vision for the Country Club Plaza began with his own residential component, and after that was successful, he then proceeded to develop a shopping center where residents could work, and shop. The 55 acre development was designed based on other European shopping districts that he had visited. And the whole project was designed in advance, so future additions appeared integrated with the environment he was creating.

If you look even closer at the past, that neighborhood grocery stores, meat shops, cafes and other establishments create ‘Lifestyle Centers’ for each neighborhood. Places such as ‘The Hill’ in St. Louis. Come to mind. A series of Italian based shops and restaurants create not only a neighborhood service but also a destination – just on a much smaller scale than Country Club Plaza.

Over the years though, the enemy of this kind of ‘livable, pedestrian oriented center’ has been the motor vehicle. Transportation to and from home became much easier, so we found jobs further and further away from home (or we moved our home further and further from our jobs) and as such, the need for neighborhood services evolved to a gas station, and a supermarket anchoring a strip center, located on major commercial intersections.

Then came the Regional Mall, with all of its enclosed space and sea (oceans) of parking. That lasted about 20 years until the malls started to look and feel tired, and people wanted fresh air and sunshine after being inside all week – most Americans spend 90% of their life indoors. That’s when ‘Lifestyle Centers begin to sprout up.

ICSC along with many of the industry leaders have talked about the definition of a ‘Lifestyle Center’ which generally includes some sort of open air, pedestrian oriented center, with a high number of fashion tenants, a variety of full service restaurants, and some aggregate GLA that can develop a significant critical mass.

Whose Lifestyle?
I would submit to you there are other developments that should be considered Lifestyle Centers. For instance I believe that Wal-Mart Super centers are ‘Lifestyle Centers’ for a particular geographic area and in some cases a particular demographic. Clubs like Costco and Sam’s fall into a similar category – while people go to these places for necessities, they also many times eat there (or at the neighboring fast food restaurants) and do their banking and grooming, eye care, and now health facilities are beginning to work their way in. In a way, these places offer an entertainment value simply in the variety of people they draw.

But these monstrous stores are still not very accessible to neighborhoods – they are typically on the edge of town so they can be as close as possible to the suburbs and other outlying communities but still contribute to the tax base of the city in which they are located.

With a movement of ‘sustainable design’ and ‘livable communities’ this is all about to change (again). Compound this issue with the current economic shift and many recent pull-back announcements in the retail chain industry and this becomes a very critical juncture for our industry. I would encourage developers and retailers to start working on their concepts to serve the needs of neighborhoods. Some already are.

Wal-Mart’s Neighborhood Center is an example. A smaller footprint, and more upscale atmosphere allows them to penetrate deeper into the community with a much more relaxed shopping experience. Tesco’s Fresh & Easy is another – the basis for their design is also to be a small footprint, but also be a one stop shop – neighborhood grocery, health foods and warehouse store all in one. If you take this idea one step further, then tailoring their products to the individual neighborhood will allow them to succeed in a smaller format.

Retailer Challenge
From a retailers view, understanding the needs of a neighborhood becomes a different challenge – going in with smaller store formats, and maybe less selection, but more specifically selected for the customers becomes the mantra. Developing new, smaller, more customizable versions of their existing stores will bring them closer to the everyday consumer.

An interesting side note about this is that online shopping for everyday things (like groceries) seems to still be lagging behind other categories? Why is that? There are probably two reasons for this: 1- People still want to select their own fresh meat and produce. 2 - because of habits that have been formed. So if people still have to go to the store for meat and produce, then they will also buy their other goods as well. What if we went back to the good old butcher shop and vegetable market? Then the rest of the dry good products could be more readily sold online, and delivered right to your door.

Developers Response
From a developers view, taking a second look at run-down or even average performing neighborhood centers, or some of the smaller power center to provide more, and better neighborhood services, tailored to the needs and desires of the residents is something to consider. I realize the ROI on these developments will not sustain mega-multi-national firms. But those are just the players that can get the attention of the retailers and work with them to develop new concepts. This type of thinking is akin to downtown redevelopment – filling back in those properties that the malls and super centers drained.

Another development challenge is access – working to connect these centers to the neighborhood by pedestrian, bicycle or mass transit will be a key to success. ‘Turning’ the center to partially front the neighborhood, or at least having a friendly access point o a neighborhood will prove to be a great benefit. This will be easier to accomplish in new developments than in existing ones.

New residential developments could begin incorporating not only this style of thinking (more local, neighborhood shops) as well as possible agricultural areas for locally grown vegetables, flowers and other similar goods.

Consumer Reaction
While the Boomers still have significant influence in the market, Gen X and Y are very quickly coming to maturity, and their buying habits are quite different than that of Boomers. More online, and when they do go to a store, it is usually a more personalized level of service or product selection that they are after. They are also placing high value on environmental stewardship and less on corporate brands.

So next time you leave your house to go buy something think about this: Can I get this product or service within 1 mile of my house? 2 miles? Can I walk or bike to that store? If the answer is no, then that presents a retail opportunity for that neighborhood.

Sunday, October 28, 2007

Good Retail = Good Business

Ever watch retailers as a business model? The basics of a retail transaction include:

1 - Attracting customer
2 - Guiding them through the maze of products
3 - Advising customers on their options
4 - Making the sale
5 - Transaction of currency
6 - Confirmation that they made the right choice
7 - Repeat

And the cycle continues if the customer feels good about this process.

What if every business in the world thought about creating engaging environments (physical and emotional) for customers to buy what they are selling - companies like the local dry cleaner. Or service providers like accountants. The retail-ization of (traditionally no-retail) goods and services are here. Think H&R Block and Pearl Vision Center; which are retail-ization of traditionally non-retail services.

You can apply retail design principles to just about any business that exists. They key is to identify who your CORE customers are, then tailoring an environment that gives them comfort and confidence to buy from you. They will create a small cult-like following of your business. And that's what you want - other customers talking about you as if you were the next best thing to s-e-x.