Archive for April, 2009

The owner of an online business told me about his desire to create a “one-stop-shop” experience for visitors. The trouble with one-stop shopping is that the terminology-concept was derived out of the brick-and-mortar model, and as the web expands, one-stop shopping no longer applies as a singular consumer winner.

Say you want to purchase a few items for your living room.  During your search you never leave your chair.  The only quandary you have is are you willing to pay three different shipping fees from three different locations.  If you could merge them to create one shipping fee, then most likely you would.  If you can’t, then you have to make the choice if the shipping is worth the purchase.  You might even try to find alternative sources that have a reduced rate to make up the difference.

The value in “one-stop shopping” still has a value, but it’s limited compared to a purchase from a brick-and-mortar establishment.

The same experience BI (before internet) involved driving from one location to another and then often back again.  Often a few purchases could take hours.  Then came the big boxes: Wal-Mart, Home Depot, Lowes, Target.  These stores try to be one stop shops on a mega level saving the buyer driving time and providing discounted pricing through economies of scale.

This is where one-stop shopping really has it’s value for both large and small stores.  A paint store might be a one-stop shop for all your interior needs, while a sewing store might have everything from sewing machines to needles, and fabric to thread. These stores leverage having everything in one place.

For the traditional one-stop shop, the few dollars becomes negligible in the scope of traveling around to save a few dollars.

So next time you’re thinking of becoming the one-stop shop, think first.  Does the one-stop shop on the net really do something for the consumer?  For the one-stop shop in brick and mortar, if you can get the consumer in the door, there is an advantage.

Just make sure the cost of being a one-stop shop is worth the effort. In the case of the online business discussed in the beginning, it’s a senseless mission when there is no savings and there was a cost to deliver the services desired.

Does your memory sometimes fail you in parking lots? Here is a simple tip to find your car after a trip or for everyday events.  After you park, take a quick picture of the location with your cell phone camera.  I typically take a picture of the signage.  If I feel this will only give me a partial clue, I also photograph the vehicle surrounded by its location: against a wall or column, about 8 cars from the end of an aisle. The combination helps me to easily find the car while I often hear people say, “Now where did I park the car?”

Here’s another story that publications and the media followed with much fan fair.  The featured firm was to take over the private jet business with a low-cost alternative.  Everyone perceived this to be a success story in the making.

Funny, little news when Eclipse files for bankruptcy.  A good story is great to hear and one that is incredible to promote and yet when the story turns sour, it’s page 14.  Not everything in business has to be positive to gain value.

ALBUQUERQUE, NM – January 20, 2009 – Today, Eclipse Aviation^® announced that Judge Mary Walrath of the United States Bankruptcy Court for the District of Delaware approved the sale of its assets for a combination of cash, equity and debt under Section 363 of the United States Bankruptcy Code to EclipseJet Aviation International, Inc. pending administrative closure on several remaining items.

EclipseJet’s bid of $28 million in cash, plus promissory notes and equity for the assets of Eclipse Aviation was verbally approved by the judge. Eclipse^® and EclipseJet will begin working toward the prompt closing of the final sales transaction. In the meantime, Eclipse expects to continue its current operations through the closing date.

EclipseJet is an affiliate of ETIRC Aviation, Eclipse’s largest shareholder, and a principal driver of the very light jet (VLJ) industry in Europe. ETIRC Aviation’s Chairman, Roel Pieper, became the acting CEO of Eclipse in July 2008 and has served as Eclipse’s Chairman since January 2008.

On November 25, 2008, Eclipse Aviation filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. Since then, Eclipse has continued operations with debtor-in-possession (DIP) financing. Today’s sale enables the Eclipse 500 Jet^® to further solidify its position as the global standard for VLJs.

See press release from Eclipse