Firing Customers

We here at scrubadoo have really started to lay the ground work for a strong brand that is based on customer service.  As a part of this we offer a great return policy.  I do think that this policy has made a difference in our conversion rates, and I know that a lot of our customers appreciate it.  The hope is that it is part of the entire package we offer,  that provides enough of a “wow” factor to keep customers not only loyal to us, but also telling their friends about us. Needless to say our return policy on our scrubs, shoes, etc is not changing anytime soon.

All that being said we are starting to get to the point where we have people starting to take advantage of the policy.  They will send items back with out tags on, or shoes that have been worn.  While it is still a small percentage it is happening.  What is also tough is dealing with the clients that continually buy products from us and continually send everything back.  We have a few (very few) clients that have made 5-6 large purchases with us over the last several months and have literally sent everything back for a refund, every time.  Now this wouldnt be a big deal if we carried inventory in all the scrubs we offer, but we don’t which makes it really hard to find a use for the returns.  Right now the returned items go into storage boxes and pretty much sit in storage.  I have yet to figure out a good use/way to sell the returned items.  Right now it is just inventory that is eating up our cash flow.

The question then becomes do we fire these clients?  If so how do we do it?  Right now I am sticking with my guns and servicing the heck out of everyone in the hopes that it will pay off in the long run.  But at some point it may not, how do I know when we have reached that point?  Is there a good way to cut ties with a client?  These are all questions I am thinking about as scrubadoo continues to grow.

Ah the joys of running a retail shop.

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Owning Your Local Market

For quite some time I racked my brain to try and figure out how I can take advantage of our local market.  To this point I have tried:

  1. Walking into local private practices and introducing myself and providing a discount on their first order with us.
  2. Walking through hospitals putting up magnets & fliers.
  3. We will be sponsoring a local (put on by U of Minnesota) fundraising event benefiting the Smile Network in April (I will write more about this in the near future).
  4. Just general networking and telling people (I sponsor our rec league basketball team).
  5. Putting us on Google’s local results map.

To this point none of these things have worked, at all (I have high hopes for the fundraiser).  But, like everything else we do, none of these things cost very much and if I hadn’t tried them I wouldn’t know.  Here is the newest idea.

One of our suppliers also publishes a new “scrubs magazine.”  They will sell us as many of these as we want for .01/each and they come out quarterly.  The magazine has stories and tips about and for health care professionals.  It has had a pretty good response from what I have heard.  I have also heard that in a hospital a magazine like this gets into at least 4 sets of hands.

I am going to buy 500 of these things for a grand total of $5.00, then I am going to have stickers with our logo and website made (think the round white stickers that people put everywhere).  I am also going to make a bunch of 1/3 page 10% off coupons.    I am then going to stick our logo on the front of each magazine (just covering up the UPC code).  On the inside cover I am going to use the removable sticky stuff to stick on 3 10% off coupons (It will be obvious each coupon can only be used 1 time/person).  I am then going to drop the magazines off at 500 private practices and hospitals to see what happens.

I figure it won’t cost much and who knows, maybe it will work.

I will let you know.

 

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Stuff is Expensive

When we laid the original groundwork and design for scrubadoo.com we paid a whopping $1,500.  That’s it.  At the time it felt like a ton of money.  As it turns out, I think we got an amazing deal.  The general layout and design of the site has changed very little from the beginning.

Since that time we have spent what currently seems like a ridiculous amount of money on back end development to automate and make the site more user friendly.  My largest headache continues to be my inability to find a developer, or development team, that is reasonably priced and knocks things out in a reasonable time-frame.  Since our initial development, my experience with programmers has been a series of short-lived free-lancers that work on the site for a month or two and then flake out.  I recently upgraded to a larger, much more expensive, company with the hopes that our development needs would be taken care of by them into the foreseeable future. While we still are very much in bootstrapping mode I thought if we could establish a real partnership here it would be very valuable into the future, even if it was more expensive than other options I could have found.

Before I go any further let me say one thing:

1.  I trust this new company fully.  I truly believe they will do good work and are very honest.  This was true before I hired them and holds true today.

While the work they have done actually works (which is more than I can say for some of the previous people I have worked with) I think they are used to working with companies much larger than us that are far less worried about budget.  We signed on for two back-end projects which we were quoted at 35-40 hours for.  Two weeks later we have 9/10′s of one project done and the other yet to be started and we have been billed for 37 hours of work (keep in mind these hours cost about twice as much as what I am used to paying).  (On another note the work they have completed was an update of a system that cost me $500 to build originally…).

That really sucks.

Unfortunately we are not yet printing money here at scrubadoo (although I did take a $1,000 paycheck for the first time ever in January so I could afford to pay my student loans) so it is really difficult to deal with an overage of twice what I have paid myself in the entire first two years of scrubadoo’s existence.

Here are the decisions I need to make/think about:

1.  Do I stay with this company and slow down my development process (due to capitol restraints) or do I continue to try the free-lance route.

2.  Will we ever get out of the bootstrap mode?  This was truly my first foray into what I would consider a solution for an established company.  It is expensive.  It saves me the headache of worrying about the job being done properly, however now I have a new headache of how am I going to pay them.

3.  Should we ever get out of the bootstrap mode?  Or is this state of mind something that will always be beneficial to the company.
Anyhow,  I received the invoice for the first 37 hours of work at about 5:30 today….what a shitty start to the weekend.

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Gaming the System

There are many aspects of running a business that you just don’t think about prior to launch.  One of these items is how customers or employees can take advantage of you as a company.  As a consumer or even an employee, you tend to think of where you are shopping or the corporation you work for as a big faceless thing.  There is lacking a true personal connection between the company and you.

This is what makes it easy to game the system and take advantage of these faceless corporations, maybe you “borrow” some printer paper to use in your home printer or you end up with a set of cups from the chain down the street.  It is typically little things like this that as a consumer or an employee you tend not to think much about.  However, once you own your own company, these little things have an entirely new light shed on them and while you do your best to understand, they can sometimes get on your nerves.

Let me tell a quick story, I would be very interested in hearing your feedback.

At scrubadoo.com we donate $10 gift cards to nursing schools & nursing student associations etc. We do this as a good will gesture and in the hopes that every card will reach 1 new person.  We have run the numbers and over the long run have lost a little bit of money on the first order made with these cards.  After thinking of the best way to set the cards up to prevent people from hoarding all of the what we send, we basically set the cards up so that every user can only use one of these promotional cards ever.  It says this on the cards and we tell the groups that we give them to.  Now I realize that people could register multiple times and us multiple gift cards but it seemed like a lot of work to game our system for a $5.01 savings (we charge $4.99 for shipping/order so if you register twice and use the card again you are paying shipping twice).

Anyhow, we get calls occasionally where the person on the end of the line asks “I have 15 of these gift cards, but the system is only letting me use one at a time, how do I use them all?”  Yesterday I received one such call from a lady in Wisconsin who had acquired 3 of the cards at a nursing convention over the weekend. I went into my standard explanation, that we donate the cards to the the student associations as we feel it is a great group and they deserve our support, but we have to limit their usage to one per person otherwise we wouldn’t be able to afford to make these donations in the future. I then proceeded to tell her seh is more than welcome to use one and then suggested she gives the other two to friends.

We hang up and everyone seemed happy.

15 minutes later we receive two orders back to back. They are shipping to the exact same address, one is for a women’s scrub top and the other is for a matching scrub bottom.  Both of the orders use a $10 gift card and the name on one of the orders is shipping to the woman whom I had just spoken with. The other was to a second person with a different email address but the same last name.

Now I am not so naive that I do not expect people to not game the system, it has happened before, and heck, I myself have gamed a system or two. However, I would like to think that if I had just had a conversation with someone about the situation and there were similar circumstances to these, I would just take my $10 off and be happy to share the other gift cards with 2 of my friends.

So, I sent her an email. I very politely told her “Hi Jane Doe , I think we spoke on the phone about 15 minutes ago about your gift cards. Would you mind if we shipped your two orders out in the same box?”

I sent the email for three reasons: 1. I was a little mad at the situation (again, I realize people will game the system) 2. It would save us about $13 to ship the items together and 3. I wanted her to know that I knew.

She responded by asking me to cancel her order.

I did.

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I called Haiti…they picked up

Over the last few weeks we have begun to receive more and more calls about providing wholesale scrubs to a variety of different retailers, embroiderers, schools, etc.

I am inclined to think this is because of our in house SEO efforts around the key word “wholesale scrubs,” that have resulted in better organic search results for that word (if you have a website and want to link to our wholesale scrubs page to help us out I would have no issue with it!).  I should probably write a little more about SEO at some point as this has become a major focal point for our company over the last several months. But I digress…..

I am coming to the quick  realization that in order to be competitive in the wholesale scrub business (which is a key growth opportunity for us), we need to begin manufacturing our own “scrubadoo brand” scrubs.  Otherwise, we just can’t get to a price point that is competitive.  When we first started the company we actually visited the idea of our own brand but did not have the capitol, nor the demand for a product.  Fortunately, things are starting to change.

Thus I began to contact uniform manufacturers.  I have talked with a company in China, two in Haiti, and will hopefully have a call set up with a company in the US within the next week.  Thanks to our friends at Forgetful Gentlemen, I was informed of a site named Panjiva.com.  This site makes it incredibly easy to figure out who you should be contacting.

Basically, you tell panjiva what companies you are interested in seeing the import records for and they provide you with all kinds of data (apparently anything that you import into the US needs to be declared, along with where the goods were produced, who produced them, and it  is all public domain).

I know the names of the companies that sell me scrubs, so I told Panjiva to figure out where they were sourcing from.  Once I had the names I did a few quick Google searches and found contact information.  While it would probably be better to do my own homework on these companies, I am assuming that A) The largest distributor of uniforms in the US has done their homework and B)It will probably be easier for me to have a small run of scrub sets done at a factory that is already producing scrubs. Plus one of the factories in Haiti is certified by WalMart.

We haven’t decided who to go with yet, but we are moving along.   To be honest, I really have no idea what I am doing right now.  I figure I will learn as I go.   Oh, and I did call Haiti,  I used Google Calling, it was a short call but someone did pick up.  Hopefully, we have a high quality private label in the near future!

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Customer Service…..or not

It is absurd what passes as “customer service”  these days.  I may not be an expert on the subject but for the last 2 years I have tried my best to live customer service through my company, scrubadoo.com.

What has my all piped up about customer service today???  Comcast.

I don’t know if you have seen their TV commercials about “customer service”  but when I see them I laugh.  You know what they consider good customer service?  They won’t charge you for an appointment if they fail to show up.  Ready for the cherry on top?  If for some reason they don’t do the job right the first time they wont charge you for a second visit!  Are you kidding me???  They actually advertise these two exact things on TV?  What a joke!  I have heard of setting low expectations so you can exceed them, but give me a break.

That is basically the equivalent of me advertising “If we don’t ship you any scrubs after you have ordered them, guess what?  We will refund you in full!”  I can see our add now: “Receive Maternity scrubs??? (As a young man holds up a pair of maternity scrub pants) don’t worry, we will ship you the correct scrubs at no extra charge!”    How does Comcast have the balls to put that add on the air (don’t worry they take their boots off to make sure they wont track mud in your house).

Today I had an interaction with this Mecca of service here is how it went:

I was immediately brought to an automated answering service  at which point you have to go through a series of steps prior to selecting the choice that will take you to the correct department (pretty standard, unfortunately not very “customer service” oriented).  I went through these steps to talk to someone about canceling my service (outrageous prices!) and when the automated service attempted to transfer me to the appropriate party I was disconnected.  This happened 4 times!  I then went a different route and called the “new sales” people.  The phone was answered immediately.  Fairly typical.  Unfortunately they couldn’t help me with what i needed!  I was again transferred and then put on hold.  They were experiencing a “longer than normal” wait time, but I stayed on hold.  In the end my conversation lasted about 1 minute and didn’t really accomplish anything. Two thumbs up, I bet I wasn’t even charged for the longer than normal wait time.

The lack of customer service oriented companies is one of the reasons I started scrubadoo.com.  Sure, we sell scrubs, shoes, and other nursing uniforms, but I figure if we can help change the perception of what good customer service is, even if it is one nurse at a time, then I am helping to shift market expectations and slackers like Comcast would never be able to claim “customer service” as a strength.

Would someone do us all a favor and jump in that market, start a company, and take Comcast down?  They are ripe for the pickings.

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Why I Love Running a Company

I was recently asked “What is so great about running a company?”  It really got me thinking.  After some deliberation I came up with a multitude of reasons I enjoyed running scrubadoo, however I was able to narrow it down to 4 and thought I would share them.

Control your own destiny

Ultimate success or failure rests solely on your shoulders as a small business owner. At a large company it seems like there is always a scapegoat or someone else to blame. Here I have no one to hide behind or pass blame to. The successes of the company are also your successes and the company’s failures are your failures. This adds an element of pressure and excitement you don’t normally get at a large company. Entrepreneurship is a little like gambling, the major difference is that hard work, skills, and perseverance can tip the odds in your favor.

No Such Thing as “No”

From my own experiences and through the stories of many of my friends who work for major corporations, a common complaint is the inability/lack of support to try new ideas or new methods. Here at Scrubadoo we will try anything. If we think a new marketing strategy may work we can implement it immediately. There are no hoops to jump through or politics to deal with. We have had clients give us feedback about something they didn’t like on our site and we have literally made a change within hours. I would like to see a major corporation be that responsive.

The Education

I have flat out learned more about business, customer service, and operations (the list could go on and on) in the last 2 years than I ever imagined I would. Every day there is a new challenge. I don’t have specialized departments to figure problems out for me, so I either learn it or underperform in that area. You become a specialist in so many areas that you never dreamed you would. Some areas are more useful than other, anyone need to know specific details about Cherokee women’s flair leg scrub pants?

The Contribution of Friends & Colleagues

Scrubadoo.com wouldn’t be close to what it is today without the help of a multitude of people. I can easily name dozens friends and colleagues from my past who have no financial incentive in my company, but have pitched in and helped us. From legal work to selling scrubs off of a table at a school; lawyers, doctors, consultants, and a many other highly skilled individuals have helped us out. Why do they do it? My theory is, they get to enjoy the excitement of a start up without the risk, they love the passion that I have for the company, and they get the satisfaction of helping a friend out. Plus if we ever hit it big, drinks are on me.

I truly enjoy running a company and the many perks that come with it, (I didn’t even mention “no pants day” when you get to work from home).

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Vacation (not for me!)

With the holidays upon us, the lack of vacation time as an entrepreneur has begun to hit hard.  December has been by far our busiest month ever, which is a good thing, but it also ensures that I will not be taking 1 day off over the holidays.  It turns out that people buy scrubs as presents.  They seem to be especially fond of our collegiate logo’d scrubs.  Which is great as long as we are able to fulfill all of the orders without a hitch.  But I digress, back to no vacation.

Unfortunately Scrubadoo.com is not yet running itself.  What makes this even more difficult is their are several daily tasks that only I know how to do.  Unfortunately we aren’t large enough yet where I can bring someone else on to handle these daily tasks, and while many can be automated, automation takes capital and we still are low on that.

I honestly don’t remember the last 24 hour period in which I didn’t open my computer and do at least an hour or so of work.  It is somewhat pathetic.  My Fiance is worried about being able to take a honeymoon this summer (and so am I).  If we don’t bring someone on or make some significant changes I don’t know if it will be possible.

I am positive that it won’t always be like this, but this is certainly a reality of entrepreneurship that I didn’t put a ton of thought into when I started the company.  Crazy hours and little time for rest is a given, but when you start a business you literally must live that business.  Especially when your most valuable asset is your time.

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Publicity

I was recently informed of haro.com, or “helping a reporter out.”  It is a pretty cool concept. Basically reporters from all over post a quick snipit of ideas they are working on and ask for “expert” opinions and quotes.

As anyone trying to build a company from scratch knows, getting your name out there is extremely difficult to do.  I wish there was a magic bullet that I could use to send thousands of people to scrubadoo.com, but there isn’t.  Every little bit of publicity helps.

Haro.com is a great way to achieve some free publicity.  I have been following the feed for about 2 weeks now and you can check an article out here that I have already been quoted in.

Moral of the story: Every little bit helps and you never know what will come of small stories like these.

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Its been a while – Catching up

I haven’t written anything in quite some time (there just aren’t enough hours in the day) and there is a lot of catching up to do.  SO this is a quick update of what has happened in the last few months.

  • May -  We hired two new interns for the summer, both performed extremely well.  I reiterate to any aspiring entrepreneur to make sure you take advantage of the resources that you have around you.
  • June – Growth continues.  We have been able to grow revenue pretty much every month we have been in business to this point.  We add Barco scrubs & Grey’s Anatomy scrubs to the site.  We are close to closing a deal with Crocs.  The entire summer will be spent deciding if it is worth bring Crocs inventory in (they dont drop ship).  As of today we have not yet added Crocs.
  • July – We add two new pages to the web site one is for scrub fundraisers and the other is for scrub bulk sales.   We have already had several request for both of these and they should pay for themselves in the next month or so.  At the end of the month we start selling on Amazon.  Unfortunately they only allow us to sell shoes as they are not adding new clothing retailers at this time.  It is a lot of work to manage but we think it will be worth it.  Either way with the addition of the two new scrub lines we carry every major brand.  There are a few more we would consider adding but I am pretty happy with our selection now.
  • August – Biggest month ever.  A few repeat customers make some large orders.  Hopefully we can keep the repeats coming in.  Our two interns finish their summer internship.  One of them decides to stay on while he goes back to school.  We get close to completing some major back end upgrades on the site.  We have now automated a lot of our product management.  On the customer side we now have real-time inventory availability visible.  We split with the SEO firm we hired in January as they have not completed the original contractual agreement and have not produced any results.  This is a huge headache and I will try and write more on it later.  I am looking for a new firm to work with if anyone has any suggestions.  We work on a huge marketing campaign targeting nursing schools.  We now have minor partnerships with over 60 schools.
  • September -  Issues with one of our major suppliers has continued throughout the summer.  I am really at a loss as to what to do here.  It got to the point where I attempted to speak with their CEO and I was effectively blown off.  Some of our partnerships with nursing schools combined with our fund-raising page may pay off by the end of the month as we have a few large fund-raising partnerships that may come to fruition by the end of the month (which will help us beet August’s #’s).

That is an incredibly quick catch up.  I hope to get back into this on a more regular basis.  We will see if the company lets me!

-Brett

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