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The Challenge: To Create More Value in All Negotiations

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Title: The Challenge: To Create More Value in All Negotiations


1
LONG Tom Peters RE-IMAGINE
EXCELLENCE! Nissan North America 2015 Annual
National Advisory Board Seminar Atlanta/27 August
2015 (Slides at tompeters.com also see our
annotated 23-part Master Compendium at
excellencenow.com)
2
Conrad Hilton
3
CONRAD HILTON, at a gala celebrating his career,
was called to the podium and asked, What were
the most important lessons you learned in your
long and distinguished career? His answer
4
Remember to tuck the shower curtain inside the
bathtub.
5
In real life, strategy is actually very
straightforward. Pick a general direction and
implement like hell. Jack Welch
6
COSTCO FIGURED OUT THE BIG, SIMPLE THINGS AND
EXECUTED WITH TOTAL FANATICISM. Charles
Munger, Berkshire Hathaway
7
EXCELLENCE! 4
8
In Search of Excellence/1982
The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
9
Action People Customers Values
10
TGRs the 8/80 FiascoTowards EXPERIENCES
That Rock!
11
Customers describing their service experience as
superior 8 Companies describing the service
experience they provide as superior
80 Source Bain Company survey of 362
companies, reported in John DiJulius, What's the
Secret to Providing a World-class Customer
Experience?
12
Conveyance Kingfisher Air Location Approach to
New Delhi
13
May I clean your glasses, sir?
14
Conveyance Southwest Airlines Location Boarding
flight to BWI, Albany NY
15
May I help you down the jetway.
16
LBTs gt BBTsCourtesies of a small and trivial
character are the ones which strike deepest in
the grateful and appreciating heart. Henry
Clay "Let's not forget that small emotions are
the great captains of our lives." Van Gogh
17
ltTGWand gtTGR(Things Gone WRONG-Things
Gone RIGHT)
18
7X. 730A-800P. F12A.730AM 715AM.800PM
815PM.(2,000,000)Source Vernon Hill, Fans,
Not Customers
19
It BEGINS (and ENDS) in the
20
PARKING LOT DisneyCarls street sweeper
21
Dont like it? Dont pay! Source Graniterock
Co. (Baldrige winner)
22
Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
23
At our core, were a coffee company, but the
opportunity we have to extend the brand is beyond
coffee. Its entertainment. Howard Schultz
When Pete Rozelle ran the NFL, it was a
football business and a good one. Now its truly
an entertainment business. Paul Much,
Investment Advisor
24
TGRs 3 Minutes
25
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM. (OPPORTUNITY).

26
Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE. Divorce, loss
of a BILLION aircraft sale, etc., etc.

27
With a new and forthcoming policy on apologies
Toro, the lawn mower folks, reduced the average
cost of settling a claim from 115,000 in 1991 to
35,000 in 2008and the company hasnt been to
trial in the last 15 years! The VA hospital in
Lexington, Massachusetts, developed an approach,
totally uncharacteristic in healthcare, to
apologizing for errorseven when no patient
request or claim was made. In 2000, the systemic
mean VA hospital malpractice settlement
throughout the United States was 413,000 the
Lexington VA hospital settlement number was
36,000 and there were far fewer per patient
claims to begin with.) Source John Kador,
Effective Apology
28
LBTsLittle BIG Things
29
Big carts 1.5X Source Walmart
30
Machine Gambling Pleasing odor 1 vs.
pleasing odor 2 45 revenue Source
Effects of Ambient Odors on Slot-Machine Useage
in Las Vegas Casinos, reported in Natasha Dow
Schull, Addiction By Design Machine Gambling in
Las Vegas (66 revenue, 85 profit)
31
Walmart/120-oz container (mainly water) to
ketchup-bottle size laundry-detergent concentrate
(100 conversion) 1/4th packaging 1/4th weight
1/4th cost to ship 1/4th space on ships, trucks,
shelves. 3 years 95,000,000 s plastic resin
saved, 125,000,000 s cardboard conserved,
400,000,000 less gallons of water shipped,
500,000 gallons less diesel fuel, 11,000,000 s
less CO2 releasedSource Force of Nature The
Unlikely Story of Walmarts Green Revolution,
Edward Humes
32
METHODOLOGY (1)
AMENABLE TO RAPID EXPERIMENTATION/ FAILURE
FREE (NO BAD PR, NO ) (2)
QUICK/INEXPENSIVE TO IMPLEMENT/
QUICK/INEXPENSIVE TO ROLL OUT (3) HUGE
POTENTIAL MULTIPLIER (4) AN ATTITUDE/CULTURE
(WTTMSW/WHOEVER TRIES THE MOST
STUFF WINS) (5) AN ALL HANDS GAME
33
DESIGN!(10 August 2011)
34
Design RULES!APPLE market cap gt Exxon
Mobil 10 August 2011 (as of 0410.15 Apple
market cap 740B, 2X 2)
35
With its carefully conceived mix of colors and
textures, aromas and music, STARBUCKS is more
indicative of our era than the iMac. It is to the
Age of Aesthetics what McDonalds was to the Age
of Convenience or Ford was to the Age of Mass
Productionthe touchstone success story, the
exemplar of the aesthetic imperative. Every
Starbucks store is carefully designed to enhance
the quality of everything the customers see,
touch, hear, smell or taste, writes CEO Howard
Schultz. Virginia Postrel, The Substance of
Style How the Rise of Aesthetic Value Is
Remaking Commerce, Culture and Consciousness
36
Hypothesis Men cannot design for womens
needs!!??
37
It would never occur to a male architect in a
thousand years to put the laundry room up there,
next to the children's bedrooms.
38
Women BUY (Everything)!
39
Women BUY (Everything) !
40
28,000,000,000,000.
41
  • W gt 2X (C I)
  • Women now drive the global economy. Globally,
    they control about 20 trillion in consumer
    spending, and that figure could climb as high as
    28 TRILLION in the next five years. Their 13
    trillion in total yearly earnings could reach 18
    trillion in the same period. In aggregate, women
    represent a growth market bigger than China and
    India combinedmore than twice as big in fact.
    Given those numbers, it would be foolish to
    ignore or underestimate the female consumer.
  • And yet many companies do just thateven ones
    that are confidant that they have a winning
    strategy when
  • it comes to women. Consider Dells
  • Source Michael Silverstein and Kate Sayre, The
    Female Economy, HBR

42
Forget CHINA, INDIA and the INTERNET Economic
Growth Is Driven by WOMEN. Source Headline,
Economist
43
Women are THE majority market Fara
Warner/The Power of the Purse
44
Women as Decision Makers/Various sourcesHome
Furnishings 94Vacations 92 (Adventure
Travel 70/ 55B travel equipment)Houses
91D.I.Y. (major home projects) 80Consumer
Electronics 51 (66 home computers) Cars
68 (influence 90)All consumer purchases 83
Bank Account 89Household investment
decisions 67Small business loans/biz starts
70Health Care 80In the USA women hold
gt50 managerial positions including gt50
purchasing officer positions hence women also
make the majority of commercial purchasing
decisions.
45
The MOST SIGNIFICANT VARIABLE in EVERY sales
situation is the GENDER of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
46
The Perfect Answer
Jill and Jack buy slacks in black
47
(No Transcript)
48
Sales/After-sales Process 1.    Kick-off 
Women 2.    Research Women 3.    Purchase 
Men 4.    Ownership Women 5.    Word-of-mouth
Women Source Martha Barletta, Marketing to
Women How to Increase Your Share of the Worlds
Largest Market
49
Men Individual perspective. Core unit is me.
Pride in self-reliance.Women Group
perspective. Core unit is we. Pride in team
accomplishment. Source Martha Barletta,
Marketing to Women
50
2.6 vs. 21
51
WOMEN RULE!
52
Research by McKinsey Co. suggests that to
succeed, start by promoting women. Nicholas
Kristof, Twitter, Women, and Power, NYTimes
53
Women are rated higher in fully 12 of the 16
competencies that go into outstanding leadership.
And two of the traits where women outscored men
to the highest degree taking initiative and
driving for results have long been thought of
as particularly male strengths. Harvard
Business Review/2014
54
For One (BIG) Thing McKinsey Company found
that the international companies with more women
on their corporate boards far outperformed the
average company in return on equity and other
measures. Operating profit was 56
higher. Source Nicholas Kristof, Twitter,
Women, and Power, NYTimes, 1024.13
55
We (old farts like me) Got the
56
1/65/8/20
57
USA 1 BOOMER turns AGE
65 Every 8 SECONDS For the next 20 YEARS

58
USA gt50 109,000,000 Next 10
years gt50 19,000,000 18-49 6,000,000
59
50_at_50 PEOPLE TURNING 50 TODAY HAVE MORE THAN
HALF OF THEIR ADULT LIFE AHEAD OF THEM. Bill
Novelli, 50 IGNITING A REVOLUTION TO REINVENT
AMERICA
60
7/13
61
Average of cars purchased per (USA) household,
lifetime 13Average of cars bought per
household after the head of household reaches
age 50 7Source Marti Barletta, PrimeTime Women
62
47X
63
In 2009, households headed by adults ages 65 and
older ... had 47 times as much net wealth as the
typical household headed by someone under 35
years of age. In 1984, this had been a less
lopsided 10-to-1 ratio. Source Pew
Research/10.11
64
Households headed by someone 40 or older enjoy
91 of our populations net worth. The mature
market is the dominant market in the U.S.
economy, making the majority of expenditures in
virtually every category. Carol Morgan Doran
Levy, Marketing to the Mindset of Boomers and
Their Elders
65
44-65 NEW CUSTOMER MAJORITY Source Ageless
Marketing, David Wolfe Robert Snyder
66
Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
67
Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly understood.
Peter Francese, founding publisher, American
Demographics
68
gt50 50 spending 10 marketing budgets
69
Subject Marketers StupidityITS 18-44,
STUPID!
70
Subject Marketers StupidityOr is it 18-44
IS STUPID, STUPID!
71
Social Business/ Customer Engagement/ Customer
Control/ Brand Ambassadors/ Brand
Assassins/ Social Epidemiologists/ Etc./Etc.
72
Customer engagement is moving from relatively
isolated market transactions to deeply connected
and sustained social relationships. This basic
change in how we do business will make an impact
on just about everything we do. Social Business
By Design Transformative Social Media
Strategies For the Connected Company Dion
Hinchcliffe Peter Kim
73
What used to be word of mouth is now word of
mouse. You are either creating brand ambassadors
or brand terrorists doing brand
assassination. John DiJulius, The Customer
Service Revolution Overthrow Conventional
Business, Inspire Employees, and Change the World
74
Welcome to the Age of Social Media The customer
is in complete control of communication. John
DiJulius, The Customer Service Revolution
Overthrow Conventional Business, Inspire
Employees, and Change the World
75
I would rather engage in a Twitter
conversation with a single customer than see our
company attempt to attract the attention of
millions in a coveted Super Bowl commercial. Why?
Because having people discuss your brand directly
with you, actually connecting one-to-one, is far
more valuablenot to mention far cheaper!.
Consumers want to discuss what they like, the
companies they support, and the organizations and
leaders they resent. They want a community. They
want to be heard. If we engage employees,
customers, and prospective customers in
meaningful dialogue about their lives,
challenges, interests, and concerns, we can build
a community of trust, loyalty, andpossibly over
timehelp them become advocates and champions for
the brand. Peter Aceto, CEO, Tangerine (from
the Foreword to A World Gone Social How
Companies Must Adapt to Survive, by Ted Coine
Mark Babbit)
76
Welcome to the Age of Social Media It takes 20
years to build a reputation and five minutes to
ruin it. Also, the Internet and technology have
made customers more demanding., and they expect
information, answers, products, responses, and
resolutions sooner than ASAP. John DiJulius,
The Customer Service Revolution
77
Amy Howell social marketer extraordinaire,
founder of Howell Marketing ignites epidemics.
In a good way, of course. Epidemics of
excitement. Epidemics of business connections.
Epidemics of influence. Mark Schaeffer,
ROI/Return on Influence The Revolutionary Power
of Klout, Social Scoring, and Influence Marketing
78
Going Social Location and Size
Independent Today, despite the fact that were
just a little swimming pool company in Virginia,
we have the most trafficked swimming pool website
in the world. Five years ago, if youd asked me
and my business partners what we do, the answer
would have been simple, We build in-ground
fiberglass swimming pools. Now we say, We are
the best teachers in the world on the subject
of fiberglass swimming pools, and we also happen
to build them. Jay Baer, Youtility Why
Smart Marketing Is About Help, Not Hype
79
Gamification Ultimate ENGAGEMENT Tool
80
Gamification Gamification presents the best
tools humanity has ever had to create and sustain
engagement in people. Source Gabe
Zichermann Joselin Linder, Gamification How
Leaders Leverage Game Mechanics to Crush the
Competition
81
9.2.3 Social Business/ New Ball Game/ ZMOT/The
Shopping Is Over Before The Shopping Starts
82
ZMOT ZERO Moment Of Truth/Google You know
what a moment of truth is. Its when a
prospective customer decides either to take the
next step in the purchase funnel, or to exit and
seek other options. But what is a zero moment
of truth? Many behaviors can serve as a zero
moment of truth, but what binds them together is
that the purchase is being researched and
considered before the prospect even enters the
classic sales funnel In its research, Google
found that 84 of shoppers said the new mental
model, ZMOT, shapes their decisions. Jay
Baer, Youtility Why Smart Marketing Is About
Help, Not Hype See www.zeromomentoftruth.com
for ZMOT in booklength format
83
Meet Your Next Surgeon Dr. Robot Source
Feature/Fortune/15 JAN 2013/on Intuitive
Surgicals da Vinci /multiple bypass
heart-surgery robot
84
Human level capability has not turned out to be
a special stopping point from an engineering
perspective. Illah Reza Nourbakhsh, Robot
Futures/2013 SOFTWARE IS EATING THE WORLD.
Marc Andreessen/2014 The computers are in
control. We just live in their world. Danny
Hillis, Thinking Machines/2011 The
intellectual talents of highly trained
professionals are no more protected from
automation than is the drivers left turn.
Nicholas Carr, The Glass Cage Automation and
Us
85
Ten Million Jobs at Risk from Advancing
Technology Up to 35 percent of Britain's jobs
will be eliminated by new computing and robotics
technology over the next 20 years, say experts
at Deloitte/Oxford University. Headline,
Telegraph (UK), 11 November 2014
86
Las Vegas Company Could 3D Print Your Next Car
Customers could pick up newly printed car within
24 hours Headline, Las Vegas Sun/1225.14
87
People 1/4,096
88
You have to treat your employees like
customers. Herb Kelleher, upon being asked his
secret to successSource Joe Nocera, NYT,
Parting Words of an Airline Pioneer, on the
occasion of Herb Kellehers retirement after 37
years at Southwest Airlines (SWAs pilots union
took out a full-page ad in USA Today thanking HK
for all he had done) across the way in Dallas,
American Airlines pilots were picketing AAs
Annual Meeting)
89
Rocket Science. NOT. If you want staff to give
great service, give great service to staff.
Ari Weinzweig, Zingermans Source Small
Giants Companies That Choose to Be Great Instead
of Big, Bo Burlingham
90
G-E-N-I-U-S Getting more and more cantankerous
(short tempered!) about this Job 1 ( 2 3)
is to abet peoples' personal growth. All other
good things flow there from. My idea of a
gen-u-ine "genius "breakthrough" idea If you
work your heart out to help people grow, they'll
work their hearts out to give customers a great
experience.
91
It may sound radical, unconventional, and
bordering on being a crazy business idea.
However as ridiculous as it soundsjoy is the
core belief of our workplace. Joy is the reason
my company, Menlo Innovations, a customer
software design and development firm in Ann
Arbor, exists. It defines what we do and how we
do it. It is the single shared belief of our
entire team. Richard Sheridan, Joy, Inc.
How We Built a Workplace People Love
92
Contrary to conventional corporate thinking,
treating retail workers much better may make
everyone (including their employers) much
richer. The Good Jobs Strategy How the
Smartest Companies Invest In Employees to Lower
Costs Boost Profits Zeynep Ton, MIT Sloan
School Notes Cases all retail, include Costco
and Trader Joes. E.g., Costco Average hourly
pay 20.8940 greater than 1 competitor, Sams
Club.
93
1996-2014/12 companies every year for 16 years/
341,567 new jobs/jobs 172PublixWhole
FoodsWegmansNordstromCisco SystemsMarriottREI
Goldman SachsFour SeasonsSAS InstituteW.L.
GoreTDIndustriesSource Fortune/ The 100 Best
Companies to Work For/0315.15
94
Profit Through Putting
People First Business Book Club Nice Companies
Finish First Why Cutthroat Management Is
Overand Collaboration Is In, by Peter Shankman
with Karen Kelly Uncontainable How Passion,
Commitment, and Conscious Capitalism Built a
Business Where Everyone Thrives, by Kip Tindell,
CEO Container Store Conscious Capitalism
Liberating the Heroic Spirit of Business, by John
Mackey, CEO Whole Foods, and Raj Sisodia Firms of
Endearment How World-Class Companies Profit from
Passion and Purpose, by Raj Sisodia, Jag Sheth,
and David Wolfe The Good Jobs Strategy How the
Smartest Companies Invest in Employees to Lower
Costs and Boost Profits, by Zeynep Ton, MIT Joy,
Inc. How We Built a Workplace People Love, by
Richard Sheridan, CEO Menlo Innovations Employees
First, Customers Second Turning Conventional
Management Upside Down, by Vineet Nayar, CEO, HCL
Technologies Patients Come Second Leading Change
By Changing the Way You Lead by Paul Spiegelman
Britt Berrett The Customer Comes Second Put
Your People First and Watch Em Kick Butt, by
Hal Rosenbluth, former CEO, Rosenbluth
International Its Your Ship Management
Techniques from the Best Damn Ship in the Navy,
by Mike Abrashoff, former commander, USS
Benfold Turn This Ship Around How to Create
Leadership at Every Level, by L. David Marquet,
former commander, SSN Santa Fe Small Giants
Companies That Choose to Be Great Instead of Big,
by Bo Burlingham Hidden Champions Success
Strategies of Unknown World Market Leaders, by
Hermann Simon Retail Superstars Inside the 25
Best Independent Stores in America, by George
Whalin Joy at Work A Revolutionary Approach to
Fun on the Job, by Dennis Bakke, former CEO, AES
Corporation The Dream Manager, by Matthew
Kelly The Soft Edge Where Great Companies Find
Lasting Success, by Rich Karlgaard, publisher,
Forbes Delivering Happiness A Path to Profits,
by Tony Hseih, Zappos Camellia A Very Different
Company Fans, Not Customers How to Create Growth
Companies in a No Growth World, by Vernon
Hill Like a Virgin Secrets They Wont Teach You
at Business School, by Richard Branson
95
Brand Talent.
96
Training Investment 1!
97
In the Army, 3-star generals worry about
training. In most businesses, it's a ho-hum
mid-level staff function.
98
What is the 1 reason to go berserk over
training?
99
What is the best reason to go bananas over
training? GREED. (It pays off.) (Also Training
should be an official part of the RD budget and
a capital expense.)
100
!
101
What employees experience, Customers will. The
best marketing is happy, engaged employees. YOUR
CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR
EMPLOYEES. John DiJulius, The Customer Service
Revolution Overthrow Conventional Business,
Inspire Employees, and Change the World
102
MBWA/25 (Managing By Wandering Around)
103
Managing By Wandering Around
104
25
105
Im always stopping by our storesat least 25
a week. Im also in other places Home Depot,
Whole Foods, Crate Barrel. I try to be a sponge
to pick up as much as I can. Howard
SchultzSource Fortune, Secrets of Greatness
106
Acknowledgement!
107
The deepest human need is the need to be
appreciated. William James Employees who
don't feel significant rarely make significant
contributions. Mark Sanborn
108
4
109
The 4 most important words in any organization
are
110
THE FOUR MOST IMPORTANT WORDS IN ANY
ORGANIZATION ARE WHAT DO YOU THINK?
Source courtesy Dave Wheeler, posted at
tompeters.com
111
18
112
The doctor interrupts after Source
Jerome Groopman, How Doctors Think
113
18
114
18 seconds!
115
(An obsession with) Listening is ... the ultimate
mark
of Respect. Listening is ... the
heart and soul of Engagement. Listening is ...
the heart and soul of Kindness. Listening is ...
the heart and soul of Thoughtfulness. Listening
is ... the basis for true Collaboration. Listening
is ... the basis for true Partnership. Listening
is ... a Team Sport. Listening is ... a
Developable Individual Skill. (Though women
are far better at it
than men.) Listening is ... the basis for
Community. Listening is ... the bedrock of Joint
Ventures that work. Listening is ... the bedrock
of Joint Ventures that grow. Listening is ... the
core of effective Cross-functional
Communication. (Which is in turn
Attribute 1 of
organization effectiveness.) (cont.)
116
Best Listeners Win IF YOU DONT LISTEN, YOU
DONT SELL ANYTHING. Carolyn Marland
117
8 of 10 sales presentations fail50 failed
sales presentations talking at before
listening!Susan Scott, Let Silence Do the
Heavy Lifting, chapter title, Fierce
Conversations Achieving Success at Work and in
Life,One Conversation at a Time
118
AVOID MODERATION!
119
Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint broke ... Break it!3.
Hire crazies.4. Ask dumb questions.5. Pursue
failure.6. Lead, follow ... or get out of the
way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. AVOID MODERATION!
120
INSANELY GREATSTEVE JOBSRADICALLY
THRILLING BMWASTONISH ME SERGEI DIAGHLEV,
TO A LEAD DANCERBUILD SOMETHING GREAT
HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME
DESIGNER MAKE IT IMMORTAL DAVID OGILVY, TO
A COPYWRITER.
121
THE RED CARPET STORE (Joel Resnick/Flemington NJ)
122
Basement Systems Inc. (Larry Janesky/Seymour
CT)Dry Basement Science (100,000
copies!)1990 0 2003 13M 2010
80,000,000
123
Retail Superstars Inside the 25 Best Independent
Stores in America by George Whalin
124
JUNGLE JIMS INTERNATIONAL MARKET, FAIRFIELD,
OH An adventure in shoppertainment, begins
in the parking lot and goes on to 1,600 cheeses
and 1,400 varieties of hot saucenot to mention
12,000 wines priced from 8-8,000 a bottle
all this is brought to you by 4,000 vendors.
Customers from every corner of the
globe. BRONNERS CHRISTMAS WONDERLAND,
FRANKENMUTH, MI, POP 5,000 98,000-square-foot
shop features 6,000 Christmas ornaments,
50,000 trims, and anything else you can name
pertaining to Christmas.
125
BE THE BEST. ITS THE ONLY MARKET THATS NOT
CROWDED. From Retail Superstars Inside the 25
Best Independent Stores in America, George Whalin
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