Capillano: The growth of a small business

“The business is growing quicker than our team because of automated processes and procedures that we continue to evolve and put in place,” says Greenberg. Informally, the Deals Direct slogan is ‘automate or perish’. “Essentially this war cry recognises that to achieve scale in e-commerce, you need fully automated processes and procedures.”

A prominent feature of the website which supports the brand is a frequently updated questions and answers page. This means every likely question is already answered and staff doesn’t have to repeat themselves for each customer inquiry.

However, the majority of automation takes place in the distribution centre, which uses a wireless warehouse management system and the best available mechanical machinery to automatically wrap everything down to parcels—freeing Greenberg to grow the brand. “People have said, ‘you can’t scale if you’re running a warehouse. If you pack 5,000 you need so many people, if you pack 10,000 you need double that amount’. I disagree. We’re evolving from very clever automation processes, so we definitely are enjoying scale.”   

But again, it has taken Greenberg time to reach this point. “I’m 48 and so I’ve run quite a few businesses before, and I’ve certainly made mistakes, as I think we all do, but I do understand the concept of running a scalable but stable business.”

So what have the benefits of his approach been? “The benefits of scale are that you can grow the business without growing the fixed and variable cost. The benefits accrue at the bottom line, so if you can get more out of the same structures and systems then it’s straight to the bottom line.” To continue growing the Deals Direct brand, a large portion of this additional profit is invested back into the business for further research and development.

For Deals Direct, remaining small has meant leaping hurdles with relative ease. “We’re nimble, we can make decisions quickly,” he says. “In a big company you’ve got more resources, but there are also limitations around how quickly you move. And, as they say in the new economy, it’s not the big eating the small, it’s the fast eating the slow, and we’re very excited about that concept.” Though the right decisions do still need to be made at the right times.

One of these decisions is turning to staff for their opinion about the business and its brand. “No one in this company is just a number, we’ve all got an ongoing part to play in the success of Deals Direct. A lot of innovation has come from within, and ironically not just from the technology people within the business but from the pickers and packers in distribution centres.”

Believing in Einstein’s view that ‘imagination is more important that knowledge’, Greenberg and Rosenbaum encourage staff to step away from their desks each day and consider possible business ideas. The best suggestion is rewarded with team acknowledgement and a cash bonus at the monthly team lunch.

“Literally every month there are very, very powerful suggestions. Some of them may seem like small links in the chain, but they’re all terrific value.” After all, employees are likely to have their finger on the pulse of customer wants and needs.

For small businesses interested in creating a big brand, Greenberg recommends reading up on other successful businesses, networking, and applying for awards. “I think the application process is important, perhaps more important than the award itself—you question your business through these application procedures. I would encourage small businesses not to give up.”

Finally, Greenberg mentions the importance of patience. “We’ve learnt over the years, especially in the fast-paced world of e-commerce, that this is not a sprint, it’s a marathon, and that does require a different approach. Entrepreneurs who are in it for the quick win or the quick dollar are going to be disappointed. Building a brand is a gradual process–it’s like moving a mountain shovel by shovel, but it’s a very enjoyable journey.”

* Capilano is one of the largest honey packers in the world, with the capacity to process and pack around 25,000 tonnes of honey each year—that’s approximately 10 Olympic-sized swimming pools.

* Deals Direct currently has 400,000 customers and around one million unique visitors per month.

A Sense for Branding

There is more to a brand than just physical appearance. Touch, taste, smell, sight and sound are all the makings of a successful brand, according to a Millward Brown global survey.

“The research cemented our understanding of the role of senses in creating brand loyalty, confirming that the brands with sensory depth were particularly strong,” says Nigel Hollis, Millward Brown chief global analyst.

“The more closely all sensory touch points—sight, sound, touch, feel, smell—are integrated into a cohesive whole, the far better chance the brand has of breaking through,” says Martin Lindstrom, author of Brand Sense. “Something revolutionary is needed to help brands stand out from the pack, something more than creating a new blitz of advertising and promotion.”

So how can sensory awareness build your brand? Lindstrom suggests incorporating scent–the sense responsible for generating more than three-quarters of emotions, but this is just a start.  

*Brand Sense is published by Kogan Page Limited (RRP: $49.95).