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Issue 182 - November 17, 2006 - Special Report
Dan’s Camera City Open House Is Full House “If you make it, make it special.” That was the advice CEO Mike Woodland gave a packed house at Dan’s Camera City Wednesday night. Dan’s had just installed new pieces of HP photofinishing equipment and invited PMA NY/NJ Metro Division members to an open house hosted by HP. “When we first talked to Peter Sandrian (PMA NY/NJ Metro Division President), we assumed there would be two-to-three dozen people. We started to worry when the RSVP list hit fifty. We almost panicked and had to close off registrations as we approached 100 people. The crowd was understanding and cooperative, so it worked very well.” The group recognized the 17 retailers who came from more than 150 miles away, the winner being Robb Muller (Schiller's, St. Louis, MO) – who traveled approximately 860 miles. Debrah Gordenstein (Zeff Photo, Belmont, MA) was thrilled to be there, even though it meant she and her husband Dave drove 299 miles to get to Dan’s. “We’re inspired about the potential, really excited about seeing Dan’s amazing operation . . . and we want one of the HP studios delivered to Zeff Photo next Monday.” Attendees were impressed by how every one of the 63 Dan’s employees seemed truly happy to be working and by the obvious teamwork that was evident. Manny Brodt, Dan’s retail manager, explained how the most important parts of their mission statement are: “Have Fun – Do It Right.” Manny explained, “You can’t teach rules, you have to teach concepts. If you teach rules then, when things change — and you know they will change — you’ll hear employees saying, ‘No, we can’t help you with that.’ Instead, if you teach concepts, you’ll hear empowered employees say, ‘I’m not sure we can do exactly what you’re asking, but tell me what your goal is and I am sure we can find a way to get you what you want’.” Steve Olock is Dan’s Director of Imaging Services (also First Vice President, DIMA). Steve opened his remarks by saying, “It’s not your father’s lab anymore — it’s not even your lab anymore.” Hitting a sore point with many lab owners, Steve advocated that software and kiosk manufacturers continue to charge upgrade fees and develop more software. “Look at Adobe Photoshop 1.0. Where would we be today if we didn’t keep paying them to offer upgrades and enhancements? Without the revenue to keep updating, we’d be doing Photoshop in black-and-white.” While many in the audience were reacting to this retailer who was advocating paying more money, Steve contrasted the HP Photosmart Studio with the Kodak Digital Enhancement Station 100. “They both have similar price points. Kodak didn’t continue to aggressively develop and enhance their equipment or software. We’ve had the Photosmart Studio a few months and HP’s engineers are constantly listening, asking questions and making upgrades. We need those upgrades. That’s what allows us to continue exciting and engaging our customers.” Greg Kearnan of HP showed how inkjet photofinishing is now here and how it can be the lab owner’s friend. While many in the audience were fearful their silver halide investment was eroding, Kearnan explained how instant prints at retail are a profit opportunity many are missing. “Customers are learning that instant at retail is an option. For certain needs, the consumer will seek out instant printing. If you don’t have it, she’ll find somewhere else. Then how do you get her back?” Kearnan stressed that HP technology gives superb image quality, as well as longer life than other print options. “Once quality was what kept Dan’s out of the instant print business. Now they’re enthusiastically adopting it and reaping the benefits from it.”
“When you offer a new service, give free samples to your staff so they can get excited and share the excitement,” Julie Strauser advised. Known as DigiJulie, she walked the audience through Dan’s process of identifying and adding new services. “Each employee who talks to customers rehearses their own two sentence selling line. ‘What is the new service and why do you want it?’ is written in their binders. It’s important the staff can communicate quickly and effectively what the new service does for the customer. If they stutter or stumble, then the customer loses confidence.” Your team is your secret weapon, Strauser stressed. She left the audience with a quote from H. E. Luccock, “No one can whistle a symphony. It takes an orchestra to play it.” Mike Woodland then told the history of Dan’s DigiPrint Lounge. “We sent our employees out into the marketplace to shop every place they could get prints made. Dan’s culture is very participative and our employees designed the lounge. Women were our target audience and the women on our staff had a critical part in designing what we would do. The details are important and our staff identified each detail and took ownership to see that we executed properly.” The Open House began at 3:00 on Wednesday afternoon and attendees were amazed to see that at times every kiosk in the store was busy. “Every kiosk” means 14 Lucidiom kiosks, two Luci and five HP Photosmart Studios. That’s 21 kiosks in one place, which is unheard of in the U.S. Ted Fox (PMA Executive Director) reported on consumer frustration caused by wanting photo gifts and creative products. “Not all dealers have the infrastructure in place to do these digital services. The customer demand in some situations is ahead of the retailers’ organizations. Some on-line services are reporting 35% of their volume is in non-traditional printing services. This market will double over the next few years. It’s an opportunity that’s here today.” Fox reported the average price paid for photo books last year in the U.S. was $30, with the median household spending $49 on photo books. Fox also threw out the tantalizing statistic that over 10 million occasional scrapbookers were interested in automated photobook solutions. Fox invited everyone to attend PMA 07 next March in Las Vegas and to visit The Complete Picture Inspiration Center where more updated information on reaching the digital consumer would be released. The evening’s host was Rich Duncombe (HP Vice President). Duncombe stressed how their research shows the customer won’t be consistent in their printing methods. The print-at-home consumer isn’t fiercely loyal to printing only at home. She will upload and she does print at retail. She wants what she wants, when and how she wants it. This is why HP has made the investment in Snapfish and Silverwire. “We need to be where the customer wants us to be, in the way she wants to interact with us,” Duncombe explained. Through Snapfish, we’ll be able to direct the on-line customer to an HP printing solution for instant pick-up at retail. Retail and on-line are complementary, not competing.” Duncombe then invited questions and received a tough one, “A few years ago someone from HP told me they wanted to take away our customers. Now are you trying to tell me that HP wants to be my partner?” Duncombe rejected the concept of “taking away” retailers’ customers. “Our research and our experience are very clear. Home is an on-ramp to a trusted retailer for the consumer. She wants choice, control and convenience and HP is committed to giving her that any way she wants it, especially with partners at retail.” Bill McCurry of McCurry Associates wrapped up the evening by recounting success stories retailers shared after last year’s PMA show in Orlando. McCurry told how James Park (Colortek, New York, NY) spent hours studying and observing The Complete Picture Inspiration Center last February. “James came back to his store and put into practice what he’d learned. He added dozens of new things, to the point that one of his customers told him, ‘I thought you’d be out of business by now . . . Instead you have things I’ve never seen before’.” McCurry’s last words to the group were, “Forget the technology. Guide your customers and your team to focus on the experience, the excitement, the emotion. Those images, those memories, those emotions are priceless — and profitable!” Terms of use for this community
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