Foreign Perspectives

Archive for the ‘Commentary’ Category

You’d think that that these days banking practices around Europe would be fairly standard. After all, the banks handle international business every day so they’re in constant contact with their counterparts in other countries.

Of course, it’s one of many areas where European business practices are far from standard.

Take the UK and France for example. Two countries with a very long history of interaction so you’d think that many things would be similar except that they aren’t.

In the UK, credit cards are commonplace and it’s normal, expected even, for people to have several of them. In France, credit cards are a relatively new phenonmen and remain very rare.

In the UK, almost everyone has an overdraft and the banks prefer you to be permanently overdrawn as they collect more fees that way. In France, they’ll close your account if you’re overdrawn more than a couple of months.

In the UK, debit cards don’t have any purchase limit on them. In France, you can’t buy more than 3000‚€ a month usually, which is why you often see people resorting to cheques towards the end of the month.

In the UK, nobody will accept a cheque without a cheque card (a card issued by their bank and guaranteeing the cheque will be paid). In France, almost everyone until recently accepted cheques because if you bounced a cheque you could be banned from having a cheque account at all. That actually worked well until very recently when the economic situation seems to have caused something of a run on dud cheques so the effect is that more and more businesses don’t accept cheques which is sure to cause trouble soon so long as that debit card spending limit remains.

Any one of those differences can easily fell you if you don’t know about it in advance.

Although it might sound obvious, you need to ask people to do what you’d like them to do when you send out a marketing e-mail.

It might be obvious but many marketing e-mails are sent out without a clear “buy this” message and even more go out without giving the reader a clear means of actually buying the product. Many newsletters are sent out without containing links to specific products sold by the company sending it out yet it’s one of the easiest ways to pick up easy sales as you’re sending it out to people who’ve asked to be on your mailing list so they’re already interested in your products.

Don’t forget to vary your message too. For example, if you’re sending out a travel related newsletter, pick out upcoming vacations such as Easter and special interest periods like Valentine’s Day. Hallmark spend a LOT of money to produce cards that address every possible situation that you could imagine and you should approach your newsletter with the same originality (or just copy Hallmark!).

However, the most important thing is to ensure that there’s a very clear “buy this” message and a very easy way of a reader doing exactly that.

When you buy a new business you’re keen to make your mark on your purchase and tell everyone you know about it, aren’t you?

Sure, you’re going to tell everyone that you know, but should you tell everyone else too? Should you really tell the customers who may have been loyally buying from the previous owner for many years?

If they have been buying from him/her for many years then the question you have to ask is: what is it about the business that they’ve been “buying”? Is it the charisma of the previous owner, or something that’s part of them that they’ve been buying? If it is, you’d better find out pretty darn quick because you’re going to lose those customers if you can’t replicate the reason for them to come to your business and you best not hang out that “under new management” sign either.

However, if you’ve bought a business which is in need of turning round then that’s quite a different matter. Did the customer base drop away because of something that the previous owner was doing wrong? Was it that the previous owner just put off the customers? In these cases, then, yes, you would want to advertise that the place is under new management as you will want to disassociate yourself from the previous owners as soon as you can.

Think carefully about it though. Once you’ve hung out that “under new management” sign, then it’s too late to go back and try to regain any previous base of loyal customers that the previous owner may have had.

We get a relatively low rate of turnover of the properties listed on our sites but one thing that always amazes me is that the seller never passes on the information about the advertising they’d done to the new owner.

In pretty much all cases that sale is a straight sale of the business so you’d think that the new owner would want to retain the existing customer base yet never once have we been contacted by a new owner wanting to revive the site through changing the contact details to their own, perhaps a new description, or whatever. In fact, in most cases that we follow up the very first thing that the new owners do is to change the name of the business and change all the contact details so they are pretty much guaranteed to lose all the existing customer base.

For the first time today we by chance caught one of the new owners via a general mailshot. Their first thought was to delete the advert rather than simply change the contact details even though the subscription has already been covered by the previous owner.

So, even if you are planning on changing how the business that you’ve just bought operates, do ask about the advertising and try to get a list of places that it’s advertised in. You may find that ongoing advertising has been paid for in advance so you may as well just change the contact details even if you don’t plan to renew it next time around.

Wendy’s been busy whilst I was away and we now have a whole bunch of new cities represented on Whole Earth Guide.

There’s several in the UK and Ireland, a first in Hungary, the bigger cities in Italy and a few in Switzerland too now.

As usual, we’re aiming these guides as specifically tourist guides primarily for short break holidays and we’re aiming to cover the top tourist cities in Europe before the summer season if we can manage to keep at it.