The next likemind will be Friday, July 17, 2009 in dozens of cities around the world.

In Chicago, it will be at Argo Tea, 140 S Dearborn St. at the corner of Adams and Dearborn Streets in the Loop from 8:00 am to 10 am.

I call likemind a gathering of creative-minded people, from various disciplines including Internet, advertising, art, social media, et. al. For more information on likemind, you can read this great article on likemind from the New York Times.

No RSVP is required. You are also welcome to join the likemind Chicago Facebook group.

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Announcements • Business • Technology • (0) Comments • Permalink

You get those offers in the mail all the time - open a new bank account with us and get X dollars, where can be anything from US$50 to US$150. As enticing of an offer it is - who doesn't want free money - it does not take into consideration the total costs of switching over to this new bank.

Allow me to introduce what I call TCS - the total cost of switching.

Taking the bank example above, some of the activities involved in switching bank accounts include the time to actually open the new account, balancing 2 accounts until you close the original account, switching auto deposits and debits to the new account (if switching a payroll check, add the hassle of getting a paper check in the middle of the switch), the cost of new checks, and learning the processes of a new bank. And these are just a few things that come to mind. When you consider paying somebody to perform these tasks, their salary negates any "free money" from the bank.

Of those, learning the processes has the longest lasting impact. When things work, everything is OK. When it is not, the first time going through the process is truly a leaning experience. Unfortunately this is nothing you can find out for yourself until it happens to you or your business personally.

Poor Service Always a Catalyst to Switch

One factor that outweighs switching cost is poor service. The opportunity cost of dealing with poor service from a vendor is huge, especially if their products or services are in turn offered to your clients or customers. This is something that has unfortunately happened to me one time too many! It not only cost me time in the interim dealing with the vendor but setting up with a new vendor, accommodating my client and not to mention stewing over it.

Plan Ahead with Backup Vendors

If you do need to switch, it is good to already have a vendor lined up and some form of working relationship with them. Even a list of names and emails is better than nothing, and names and mobile numbers are the best. Depending on the service, doing some amount of business with them will help mitigate risk. The cost of spreading business around may be more upfront, but it can help preserve client relationships and revenues - not to mention brain cells - in the long term.

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Editor’s Note – The following is a guest post by Ralph Ingrassia, President of Endeavour Technologies, LLC, and a project management consulting guru. A longtime reader of The Hot Iron – not to mention client of Dunkirk Systems, LLC and close friend of Mike Maddaloni – he shares some of his wisdom and experience here, which we hope will be the first of many guest posts.

Who isn’t trying to cut costs these days, whether those be business or personal costs? One cost I was considering cutting was my weekly pool service. But, having tried that in the past and failed miserably, I had decided that maybe this wasn’t a cost worth cutting yet.

Over the years I’ve used the larger pool servicing companies, but have always been left disappointed by the higher prices, nickel and diming and lack of professionalism. So, being a small business owner myself, I settled on an independent Pool Guy and have been happy for the last few years. I could pick up the phone and he’d be here if I was having a party or if I had any problems whatsoever and it was always clear that his priority was that I was happy with his work.

Things started to change this year. The first point of concern was that his price went up this year again for the third year in a row. Now last year I understood a price increase due to the rising cost of gas but this year’s price increase left me confused. If anything I would have anticipated a steady price this year. Still, his prices were much more competitive than the larger companies mentioned above so I didn’t say anything. Then the nickel and diming started. Not much, but a few bucks here and there. Again, I was still saving money so I decided to just keep an eye on these charges over time.

Last week, however, was the deal-breaker. After completing my service he knocked on my door for payment and I happened to be on a conference call that I had muted. I decided that it would be easier to pay cash which left me $8 over the service price. I informed him that if he didn’t have any change we could just apply it to next week. The response was, “Ralph, you’re cheap just like my Dad.” “He won’t give a tip to save his life.” Now, anyone who knows me knows that I value good service and in situations where a tip is warranted, it is awarded. I worked in the restaurant industry and completely understand how the American restaurant system makes it so gratuities make up the lion’s share of a server’s income. Jokingly, I also thought that the fact that I actually had a Pool Guy would classify me as being not cheap.

But from the customer perspective, a line had been crossed here. As small business owners, we try to price ourselves competitively, prevent scope creep to manage the need for cost increases or business losses, and provide the utmost in professional service. In most cases, I find that it is the professional and personalized service that is most valued by my customers relative to my fees. The example I’ve detailed with my Pool Guy can be applied to my own business as well.

So what has gone wrong here? Is it just a case of temporary insanity or has the service provider forgotten that I am a long term customer that he has a pleasant relationship with and not a friend? Or, is it that this particular small business owner has forgotten to holistically look at their services and fees and evaluate if his customers are really receiving a superior service for their dollar regardless of a competitor’s price? In this case maybe it’s all three.

In the end, the decision that I made was to cut back on my service to bi-weekly instead of weekly. Was this decision driven solely by the lack of professionalism? No. But, it was a factor in a decision I had been teetering back and forth on.

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This is from The Hot Iron, a journal on business and technology by Mike Maddaloni.

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There is momentum around New York City getting its own generic top-level domain (gTLD) - .nyc. The team organizing it, dotNYC LLC even has a ringing endorsement by former mayor Ed Koch. Where there has been a lot of controversy about the mass unveiling of gTLDs, this one has a lot of traction and makes a lot of sense to me, especially for a city of 8 million plus people.

So this got me thinking – which would be a more valuable domain name, pizza.com or pizza.nyc?

Last year pizza.com was sold in auction, and the price was reported to be around the US$2.6Million it sold for earlier. There is a Web site at pizza.com that has the tagline of “everything about pizza” but isn’t a compelling Web site, especially to someone like myself who 1) designs and develops Web site, 2) is 100% Italian American and 3) has eaten quite a bit of pizza in his time! I am not quite sure of the revenue model here; I can perform what is a Google search through the site for pizzerias, but you can’t order a pizza directly through the Web site.

When I think of pizza.nyc, all I think of is opportunity. The competition for this domain name will be significant, with parties from within New York City and beyond. The name recognition will almost be automatic in the City as there will be other .nyc domain names plastered throughout the city and people will start to naturally go to whatever dot nyc to get to a product or service. Then there is revenue. Pizza.com could be one pizza chain or a consortium of many. Whether it is direct or affiliate sales, there is definitely opportunity to make money from pizza in a city where people are passionate about their pizza.

This is not to say there is not opportunity for pizza.com. I do not have any insight or knowledge into its owners or their business model. What I am saying is based on what I see – both from what pizza.com is and what pizza.nyc can be.

What do you think? Are you in the pizza business? Are you a resident of New York City? Or do you just buy pizza? We’d like to know.

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Business • Domain Names • Technology • (5) Comments • Permalink

Earth Day has come and gone, and the Green Festival has blown through the Windy City. So does that mean thinking green is put aside until next year? Hardly! Especially for us entrepreneurs, thinking goes on all of the time, and in many instances it is often labeled as merely saving money.

Last week I was talking with a business partner and she was commenting on the cost of faxing for her, with an aging fax machine and a separate phone line. Asking me how I fax, I told her I use eFax and I don’t have either. The monthly cost is much less than a phone line, faxes come in as PDFs, and with Adobe Acrobat Professional to markup faxes no paper is involved.

I have been striving to be as paperless as possible, mostly to reduce clutter and to organize and index content for future use. Though eFax is nothing new, I have created one convert, who will be getting greener in more ways than one, just as I have been.

What ways do you save money and the environment at the same time?

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Business • Technology • (4) Comments • Permalink