The Smartphone Stagnation Explains Why Consumers Are Ghosting New Models (And What It Means for Your Business)

Disney has a strategy to increase its bottom line and squeeze more revenue out of its most iconic assets – price people out of its theme parks. This definitely seems counterintuitive, but it actually makes a lot of sense when explained. On its face, this sounds ridiculous, except it does seem to have a lot of potential and that’s why the executives are making some very bold moves. Why Disney is Purposely Pricing People Out of its Parks Disney has a serious problem with its parks – they are just too popular and that means they’re overcrowded. Anyone who’s been to its theme parks, particularly over the last several years, has most definitely noticed this. The predicament is most pervasive in Orlando, where ride wait times have gone up to as much as 420 minutes or 7 hours. You read that correctly. Just last week, its newest and most anticipated attraction, Rise of the Resistance, recorded a wait time of seven hours. This, despite the fact the experience opened in December 2019, nearly three years ago. Be mindful of competitors. If they are raising prices, it’s easier for you to do so too. Don’t forget to evaluate how your customers will react (fully accept the increase, stop, or lower purchases) as well as the possibility of maintaining price to generate higher volume (stealing customers from rivals). If the competition holds steady on prices, there is less opportunity for a hike. —Harvard Business Review And, it’s not just the latest and greatest rides and attractions either. Some of its oldest staples routinely experience wait times in excess of an hour, even two or more. What’s more, wait times for sit-down restaurants can easily be two or more hours for anyone without reservations. (By the way, those reservations must be made three to six months in advance.) Just these anecdotal figures should tell you something – the parks have way too many people visiting. In fact, exiting Main Street in the Magic Kingdom after the fireworks show can take up to two hours to get from the park exit to the parking lot on busy days (a twenty-minute trek when crowds are super light). Of course, anyone who looks at these figures would think that Disney would be very happy with its premium capacity. But, as executives have explained on various earning calls, their per capita spending in the parks is somewhat paltry – particularly among annual passholders. Annual passholders are a problem for Disney because they present a conundrum. While they pay a premium for their privileges, they spend relatively little money in the parks. Conversely, families and couples traveling from out of state or from international destinations spend quite a bit of money in the parks on top of the pricey admission. In other words, annual passholders come in through the gate, spend a few hours enjoying rides and attractions, and then leave. Meanwhile, couples and families making dedicated trips plunk down a lot of money on things like hotels, souvenirs, snacks and dining, and Genie Plus (a paid skip-the-line service), as well as special experiences. Should Your Small Business Raise its Prices Too? For the foreseeable future, Disney will continue to raise its prices on everything: admission, food, merchandise, and services and experiences. The company plans to earn more money from fewer visitors. This brings up an interesting question – should your small business follow the same strategy? If you haven’t raised prices in quite some time and/or offer discounted rates to be out pricier competition, it’s probably a good idea to consider. Plus, if your business needs substantially more customers than your competitors to turn the same profit, it’s definitely worth exploring. To answer these questions and more, speak with an experienced business consultant who can assess your situation and help you determine a new pricing strategy. You just may be losing out on revenue that could be going to your bottom line. Interested in learning more about business? Then just visit Waters Business Consulting Group.

There’s a plethora of advice for how to deal with bad managers — from an employee’s role. But, little is out there about how to deal with a poor manager for business owners. Entrepreneurs rely on a number of other individuals to make things happen. Everyone onboard is supposed to be onboard as a team. Sadly, there are times when a manager’s style is counterproductive to the larger organization. Fortunately, there are some effective ways entrepreneurs can deal with bad managers. Bad Managers Undermine Good Employees You’ve probably heard the old computer software cliche that “garbage in equals garbage out.” Meaning, if the right ingredients aren’t entered, the output will totally reflect its input. This same sentiment goes for your company’s team members. If employees have the right management leadership, their performance will reflect it. However, if that leadership is poor, you’ll get poor results. Bad management can impact employees and a company’s overall operations. Incompetent managers exist, and they can have challenges relating to staff members and keeping them motivated. In addition, substandard supervisors may not be able to balance budgets, increase revenues or capably perform other crucial tasks. —Houston Chronicle Small Business It’s a bit more difficult to manage a manager than it is an ordinary employee. Largely because these individuals are experienced and used to managing others — but not necessarily themselves. So, it’s entirely possible for them not to see their own flaws and shortcomings. If an employee under him or her doesn’t produce the right outcomes, a bad manager believes it’s because of the employee and not himself. Of course, this is circular logic and the situation will only worsen over time. 3 Effective Ways Business Owners can Deal with Bad Managers The good news is there are ways to get a wayward manager back on track. (Or, reform a bad manager into a good steward of their team members.) Here are three effective methods business owners can use to deal with bad managers: Identify their weaknesses. Okay, this goes under the “obvious” category. But, it’s something that simply cannot be ignored. By getting feedback from your employees and observing him or her in their official capacity, you can pinpoint his or her weaknesses (and strengths). Then, work with them to formulate a plan to help them overcome their weaknesses and rely more on their strengths. Don’t be overly critical. Instead, speak about their shortcomings in a transcendental way and emphasize their strongest traits. Always strive to set an example. Here’s another bit of obvious — but absolutely necessary advice — always strive to set an example. After all, if you run the company like the infamously bad side of Steve Jobs (who was reputedly a ruthless and hard-driving boss), expect the same behavior from your manager(s). But, run your company as a benevolent yet firm boss and your manager(s) will most likely follow your cue. When you make a mistake, own up to it and do so honestly and humbly. Give him or her public praise when deserved. This is difficult because it could easily backfire in a number of ways. Still, it’s necessary to bestow praise when and where it is due to encourage others and to foster a sense of unity. Of course, you can’t just praise your manager(s), you must also do the same for your employees. What other suggestions do you have for dealing with bad managers as a business owner? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.