Bob Holland — Powerpass & Small Retailers

By Bud on July 26, 2007 TrackBacks (2) Comments (13)

Bob Holland describes Ideation's Powerpass Card. Powerpass is a loyalty card product targeted for use by small retailers with their customers.

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Filed under: Ann Arbor, MI | Bob Holland | Finding Gaps | Ideation | PowerPass | Retail

In this 7 minute podcast (download ipod compatible, 38MB), Bob Holland and I continue our discussion of business and technology innovation by examining a company with which he is intimately familiar, Powerpass. Powerpass is an outgrowth of Ideation, a local Ann Arbor company, that made its original business 41 years ago by providing gift catalog services to small retailers. Bob has an ownership stake in Powerpass.

Powerpass is designed to help local retailers compete with national big box retailers like Walmart. It provides local retailers with a loyalty card that can be used at the retailer as well as with other retailers in the local area. Loyalty cards allow consumers who frequent stores to receive discounts as a reward for continuing to shop at the store. Most national chains offer them. However, small retailers are not in a measure, themselves, to create the infrastructure to support these cards. A challenge in creating Powerpass is developing a value proposition that appeals to a broad enough array of small retailers.

Powerpass seems to represent a case of innovation where the true value comes from blending technology with specific business opportunities. In a forthcoming interview, we'll speak with Tom Ungrodt, CEO of Ideation, and Jay Upell, leader of the Powerpass effort. They will provide an interesting operational perspective on working with small retailers.

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» Tom Undgrodt and Jay Upell on Powerpass from Michigan Innovators

Tom Ungrodt and Jay Upell talk about PowerPass, a loyalty card product targeted for use by small retailers. This is a case of fairly mature technology finding a gap in the market place. Read More

Tracked on July 29, 2007 11:17 PM
» Bob Holland from Julie Stotler

Watch the Michigan Innovator's installments with Bob Holland. The thoughts that resonated with me was that networking and getting involved with organizations is the way to go to spark new ideas. When involved in organizations and attend meetings and ma... Read More

Tracked on September 20, 2007 9:27 AM

13 Comments

Jeremy Ward on October 14, 2007 11:52 AM
As a resident of the Village of Dexter, I think your PowerPass program is an excellent idea. Over the course of the last five or six years, Dexter has had to face the opening of big box stores on the west side of Ann Arbor. Those big box stores, which as of right now include a Meijer and a Lowe’s, with a Home Depot soon to follow, were targeted at not only the residents of that side of Ann Arbor, but also the residents of Dexter. Dexter is a very quaint village and it prides itself on that. As you would expect with that kind of community, the businesses are small, family owned places. I fear that they will eventually not be able to compete with the likes of a Meijer or Lowe’s. a program such as the PowerPass is exactly what might ensure their continued survival. With the rewards program for the customers, people will be more inclined to go to the local hardware store if they know that they are going to be able to get prices comparable to the larger chain stores. I personally would go down the road to the pharmacy as opposed to going to the Meijer pharmacy and having to wait through the ten people ahead of me. In addition, as you stated in your interview, the average increase in sales was 30%. That is clear cut proof that people still want to support the local, family owned businesses. Is this concept also available to local restaurants or gas stations? If not, could it be? Best regards, Jeremy Ward
Bud Gibson on October 14, 2007 9:26 PM
Hi Jeremy, I'll let Tom Ungrodt and Jay Upell over at Powerpass know about this comment.
Brianne Fuller on November 17, 2007 9:44 AM
Watching this interview was very informative. It was interesting to hear how the idea for Powerpass came about and how it progressed along the way. I also found it interesting that although Powerpass is a product that is sold B2B, it is actually something designed to benefit the business to customer relationship. I think it is a great idea and am pleased to hear that the test market shows positive results as far as increases in sales and number of customer visits. This really give smaller business owners a chance to compete with the big box retailers, such as Walmart and Home Depot. Powerpass is a great tool for retaining loyal customers, but is also a good advertising agent to recruit new customers. If a customer visits two stores with the Powerpass card regularly, but none of the others, they may decide to go to one of the other Powerpass stores solely because they are affiliated. Personally, I know if I had a card like this for the Brighton/Howell area, I would be far more likely to check out the smaller businesses and see what they have to offer. I hope everything is progressing well with the Powerpass card. Keep us informed! Best Regards, Brianne Fuller
Nicolet Horrington on November 19, 2007 10:37 PM
Getting The Power From Our Small Businesses Powerpass is an ideal concept in this day and age. So many companies are being outsourced by larger companies. Powerpass is a loyalty card that can be used at smaller in smaller town stores that give customers rewards and points toward the stores that they shop at. Due to the rapid expansion of “big-box” companies such as Meijer or Lowe’s smaller businesses must find a way to stay vibrant and alive. I think that this idea that will save small towns everywhere. Finding this niche in the market will give the many stores choose to be a part of the Powerpass a greater synergy to save their towns small businesses. It is a known fact that these small towns have everything that is unique and that cannot be found anywhere. Living in downtown Dearborn not many small stores survive a season of business because customers are not keeping their business in the towns in which they live. The pricing that the “big box” companies offer is the reason why those small businesses cannot survive in the huge world of “lower prices.” The system that each small business can buy into will increase the sales and profits by 30%. I also think that if these small businesses hosted days where each business offered a sale of 10% off on the same days I think that would drive sales to the downtown areas that these businesses are located. And that would entice shoppers to save money as well as increasing their loyalty. Nicolet Horrington
Nicolet Horrington on November 19, 2007 10:49 PM
Getting The Power From Our Small Businesses Powerpass is an ideal concept in this day and age. So many companies are being outsourced by larger companies. Powerpass is a loyalty card that can be used at smaller in smaller town stores that give customers rewards and points toward the stores that they shop at. Due to the rapid expansion of “big-box” companies such as Meijer or Lowe’s smaller businesses must find a way to stay vibrant and alive. I think that this idea that will save small towns everywhere. Finding this niche in the market will give the many stores choose to be a part of the Powerpass a greater synergy to save their towns small businesses. It is a known fact that these small towns have everything that is unique and that cannot be found anywhere. Living in downtown Dearborn not many small stores survive a season of business because customers are not keeping their business in the towns in which they live. The pricing that the “big box” companies offer is the reason why those small businesses cannot survive in the huge world of “lower prices.” The system that each small business can buy into will increase the sales and profits by 30%. I also think that if these small businesses hosted days where each business offered a sale of 10% off on the same days I think that would drive sales to the downtown areas that these businesses are located. And that would entice shoppers to save money as well as increasing their loyalty. Nicolet Horrington
Dylan Matovski on March 27, 2008 12:43 PM
Bob, After listening to the podcast I was happy to hear about how the PowerPass has already been tested and has shown a significant increase in sales for small businesses. In todays economy any increase in sales is great and to hear that the increase was 30% was a lot more than I had expected. The need for a system like this is great in my opinion because most small companies don't perform their own research and so to be able to have someone else do it for them is a great benefit. Dylan Matovski
Nicole Trinkle on March 30, 2008 4:59 PM
Mr. Holland, The innovation of PowerPass is terrific. As a resident of Chelsea, the chamber of commerce bases their development and growth campaigns on one thing: the marketing of the small, locally owned and operated shops and restaurants to not only neighboring communities, but local residents as well. The uniqueness and charm of a small town and the shopping and experiences it offers are not comparable to the asphalt jungles that are cropping up all around us. Chelsea currently employs a program similar to the PowerPass. A card that can be purcahsed for $20 by residents through the high school football team offers discounts and promotions at restaurants, shops, the pharmacy and other service industries. Keeping the business local while supporting the school system at the same time is what forms community, I think. There is a growing trend in shopping locally and being able to support those who are connected to you in some way or another. A system such as the PowerPass can often be that deciding factor for many consumers when they are faced with a choice between a big box store or smaller, local retailer that may be a little more pricey. Programs such as the PowerPass will keep traditions alive and allow the small towns to retian their residents. Your mix of business savvy with technology allows you to be innovative yet still be able to identify with your markets and deliver according to their needs. Thank you for sharing. -Nicole Trinkle Eastern Michigan University Student
M. Hogan on March 31, 2008 12:13 AM
Dear Bob Holland, It is great to know that small mom and pop stores have a fighting chance against big stores like Wal-Mart and Home Depot. Many small towns like Chelsea and Dexter are growing and I believe it is because of organizations like PowerPass. Competition can be a good thing if you are ahead of the game, however if you are on the verge of closing it can be a scary thing. My father works for a company that is fighting, not against competition exactly, but against the poor economy in Michigan. His company supplies scales to other companies, his company is known of building scales that semi trucks have to pull over on highways to get weighed on. It is great to know that struggling companies can be saved from the big stores. PowerPass is a great savior for those smaller companies that are starting out and trying to keep their company grounded firmly on solid foundation. I didn’t know something like PowerPass could ever work, I thought each company was to stand on their own to feet, I didn’t know their was help out in the world for struggling companies. Thank you for all that you do to keep smaller companies standing strong. Sincerely, M. Hogan Eastern Michigan University Student
M. Hogan on March 31, 2008 12:15 AM
Dear Bob Holland, It is great to know that small mom and pop stores have a fighting chance against big stores like Wal-Mart and Home Depot. Many small towns like Chelsea and Dexter are growing and I believe it is because of organizations like PowerPass. Competition can be a good thing if you are ahead of the game, however if you are on the verge of closing it can be a scary thing. My father works for a company that is fighting, not against competition exactly, but against the poor economy in Michigan. His company supplies scales to other companies, his company is known of building scales that semi trucks have to pull over on highways to get weighed on. It is great to know that struggling companies can be saved from the big stores. PowerPass is a great savior for those smaller companies that are starting out and trying to keep their company grounded firmly on solid foundation. I didn’t know something like PowerPass could ever work, I thought each company was to stand on their own to feet, I didn’t know their was help out in the world for struggling companies. Thank you for all that you do to keep smaller companies standing strong. Sincerely, M. Hogan Eastern Michigan University Student
Tracy Jens on March 31, 2008 8:31 AM
Tracy Jens Dear Mr. Holland: Hello my name is Tracy Jens I came across your blog as I was doing an assignment for my management class. I was listening to your video segment titled powerpass and small retailers, in that segment you were talking about a power pass card that would be used in many different shops and stores. I think this is a great idea, it is also a good way to generate business for several businesses not just one particular business. The power pass is a great idea, by only having to use one card for many shops and stores. It also prevents clutter because there is only one card that can be used at many places not five or ten different cards that so many people may carry around. I see this powerpass will be able to generate business for so many small retailers as well as the large retail giants. It is good that the pass will available to a wide variety of stores. I think instead of the larger retail giants taking all the business from the smaller retail stores, now the smaller businesses will have a better chance at increasing their profits and gaining a larger customer base. The powerpass card is like equal opportunity revenue for a variety of businesses because it benefits the smaller businesses as well as the larger ones. I think it is great how you the other business owners are working together. I have to confess that I have heard of the powerpass card but I have never actually used it. I have a cousin who lives in Ann Arbor she goes to the University of Michigan and she uses the powerpass card. She was telling me about the card one day when she was over at my moms house. I thought it was a clever idea because it would benefit many businesses as well as people. My cousin lives in a house away from campus and she uses her card at some of the local shops that are close to her house when she does not feel like driving far. I have heard how well the card is working for people in the Ann Arbor area I think if this idea were to expand to other stores around the Detroit area it would have a positive impact on the economy as well as for other businesses. I think that it is great how you and the other business owners are working with the younger people in the company. The younger people may have a new creative way of promoting the product or service as well as having a concrete understanding of how to navigate on the internet. This will help the company or companies to get the product or service out into the public and into the hands of the consumer. Whereas the older employees have more experience and have a better understanding of what market segment will work best with a certain product or service. I agree with you Mr. Holland that the synergy will work well when the two groups of people work together. Good luck to you and all the people you work with. Tracy Jens Eastern Michigan University Student
Tracy Jens on April 1, 2008 11:22 AM
Tracy Jens Dear Mr. Holland: Hello my name is Tracy Jens I came across your blog as I was doing an assignment for my management class. I was listening to your video segment titled powerpass and small retailers, in that segment you were talking about a power pass card that would be used in many different shops and stores. I think this is a great idea, it is also a good way to generate business for several businesses not just one particular business. The power pass is a great idea, by only having to use one card for many shops and stores. It also prevents clutter because there is only one card that can be used at many places not five or ten different cards that so many people may carry around. I see this powerpass will be able to generate business for so many small retailers as well as the large retail giants. It is good that the pass will available to a wide variety of stores. I think instead of the larger retail giants taking all the business from the smaller retail stores, now the smaller businesses will have a better chance at increasing their profits and gaining a larger customer base. The powerpass card is like equal opportunity revenue for a variety of businesses because it benefits the smaller businesses as well as the larger ones. I think it is great how you the other business owners are working together. I have to confess that I have heard of the powerpass card but I have never actually used it. I have a cousin who lives in Ann Arbor she goes to the University of Michigan and she uses the powerpass card. She was telling me about the card one day when she was over at my moms house. I thought it was a clever idea because it would benefit many businesses as well as people. My cousin lives in a house away from campus and she uses her card at some of the local shops that are close to her house when she does not feel like driving far. I have heard how well the card is working for people in the Ann Arbor area I think if this idea were to expand to other stores around the Detroit area it would have a positive impact on the economy as well as for other businesses. I think that it is great how you and the other business owners are working with the younger people in the company. The younger people may have a new creative way of promoting the product or service as well as having a concrete understanding of how to navigate on the internet. This will help the company or companies to get the product or service out into the public and into the hands of the consumer. Whereas the older employees have more experience and have a better understanding of what market segment will work best with a certain product or service. I agree with you Mr. Holland that the synergy will work well when the two groups of people work together. Good luck to you and all the people you work with. Tracy Jens Eastern Michigan University Student
Gazmend Dervishaj on November 10, 2008 2:32 PM
Mr Holland,knowing the fact that in todays economy especially here in Michigan, every business is strugling in some way I think you came up with a genius idea, which will save a lot of small businesses from going out of business.Being in small retailer business In todays competitive market its very hard to compete with giant retailers like Wal Mart or Home Depot which offer the same product for less money,so having such a high unemployment rate here in Michigan people are willing to drive extra miles just so they can save.I think PowerPass not only helps local businesses to survive from going bankrupt but also helps them on building loyalty among their costumers so it serves as a marketing tool too. Great innovative idea!! Gazmend Dervishaj
Lisa Lewis on November 16, 2008 12:23 PM
Tom Ungrodtf of Ideation & the Powerpass is a great idea! I am a resident of Livonia, but I am loyal to the small pharmacy, and the local Tru Value Hardware. I shop in Larry's FoodLand grocery store, not the giant Kroger or Meijer grocier. However, my keychain does have a CVS card, and a Kroger card, and a Hallmark Gold Crown card, and a Borders Reward card. I'd thankfully give them up for a Hometown pass like you are talking about. How can we start up an idea like this for other localities? I see that this posting is a little dated, is Powerpass active and working in Ann Arbor? It is not so much that big box stores are not useful and needed for jobs and the like, but as the small entrepreneurs and business owners get shoved out, we lose the customer service and care that I like. We are also losing the ability to quickly run in and grab something. There is no such thing as grab and go at Lowes or Home Depot. On the opposite side, CVS and Walgreen's drive-through pharmacies, with 24 hour operations, they may just be the better option. When I am ill, I know I want immediate relief. Waiting is not an option. So, loyalty cards may stay on my keychain after all. Lisa Lewis

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