Bob Holland — Powerpass & Small Retailers

Hi Jeremy, I'll let Tom Ungrodt and Jay Upell over at Powerpass know about this comment.

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

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

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 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

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

Dear Bob Holland,

After watching your podcast, I'd like to say that I think the Powerpass is a very good idea! My older sister owned a franchise of a hardware store in a very small town in Indiana. There was a Wal-Mart built in the town shortly after she and her husband purchased the store. Wal-Mart took customers away from all of the local businesses. The local small businesses could offer products of higher quality, and often not too much higher in price, but they just couldn't match the deep discounts that Wal-Mart could offer because of its economy of scale and inexpensive manufacturing.

There was a time where the store owners in town met with each other to brainstorm what they could do to get their customers back. In the end, main street has pretty much become a ghost town in this small town. The restaurants, which offer something truly unique from what Wal-Mart offers, have been able to survive. Many of the stores, however, have not been able to. My sister's store closed about 2 years ago - 7 years after they purchased it.

My sister was lucky - about a year before they closed their store her husband had been offered a job as an engineer at his old company about 30 minutes from their house. Other store owners aren't as lucky and are left with nothing and a large amount of debt.

I think this Powerpass would be a good idea because it could bring some life and excitement into the stores. It could also show some unity in the town among the small business owners.

I do have a question, though. Would the stores that band together under the Powerpass be stores that are all related - like retail clothing stores - or would it be all sorts of different stores - like a pharmacy, a clothing store, a hardware store, an office supplies store, etc?

Great idea! Keep it up!

Dani Shepherd