WHAT WE LEARNED THIS WEEK: Cut out the middle man

Fulfilling a promise made several weeks ago, JB Hi-Fi launched a direct import model this week in order to offer cheaper prices on camera products. With so many suppliers becoming more expensive, the retailer decided to cut out the middle man all together and offer customers the cheapest products from wherever they could get them.

But it’s not just JB Hi-Fi – both Everten Online and OzHut explained to SmartCompany this week they also import products directly from overseas to save costs.

The question is – why aren’t you?

Importing directly has some disadvantages, the most notable of which is that you need to ensure a warranty for your customers. But the benefits are huge, as you’ll often get products quickly and cheaper than your local competition.

If you haven’t thought about this model, you should. It’s not a definite save, but it’ll open your business up to new opportunities and perhaps more sales.

Keep your eye on the Twitter

Qantas has had a rough few months and this week it got even harder. After asking Twitter users to tweet their idea of a perfect holiday, the company was hit with backlash over the recent cancellations and groundings, with customers railing on the company for industrial action disputes.

While Qantas couldn’t have expected the competition would turn that way, it’s yet another disaster for the company that has endured one too many this year.

Businesses need to watch what they tweet. Qantas may have prevented the backlash if they had thought about what was going to happen for a few minutes and considered the consequences.

Don’t be half-hearted about Twitter. Think about every single item you post, and consider if customers might read you the wrong way – it’ll save you worlds of trouble.

Google yourself!

An Australian is suing Google over comments made about her and her business posted online, which she believes are defamatory and have ruined her reputation.

This isn’t the first time this has happened, and certainly in Europe there is a precedent for Google actually awarding damages to people who have sued the internet giant.

But once again, this dispute highlights an urgent need for businesses to constantly check what is being written about them and determine its source.

If customers or competition is writing about you online, you need to ensure that your official website ranks higher than the comments being made, and then you need to address the comments at the source where you can.

Don’t forget about your online reputation. Constantly search your name and make sure your company isn’t being dragged through the mud unnecessarily.

Immature markets aren’t a problem

This week Spotify hired a local sales director for Australia and New Zealand, all but confirming the streaming music company is looking at entering the local market – after years of anticipation.

While some would question why, given the market for streaming music is so limited here, others suggest the entrance of one big name will prompt users to start seeking out other streaming products as well in order to grow the market.

You shouldn’t be afraid to enter an immature market. Although Australians may not be used to streaming products, there’s an opportunity here and Spotify has taken advantage of it.

It takes work, but you can educate a market. Don’t let unfamiliarity stop you or your business.

Some tips from Entrepreneur of the Year – keep innovating

iiNet managing director Michael Malone took out this year’s Entrepreneur of the Year award title, and when speaking to SmartCompany, warned tech businesses they need to stay alive by continuing to innovate.

He referenced the iiNet labs, where engineers are working on new consumer products as the company attempts to open its market alongside existing DSL and broadband packages.

“I don’t think it’ll ever make us money. But it’s something we like that’s very interesting. We’ve got the BoB products that are doing well. We’re walking into a next generation of integrated screens in different devices, it’s very exciting.”

iiNet has worked to reinvent itself outside of Western Australia, and then when the broadband revolution began. SME’s have a good lesson to learn here – never stop innovating.

“When you have a business, it can’t just be about two or three clever things that you’re doing. You need to constantly stimulate innovation.”

Your business should have an element of innovation. Even if it’s small, dedicate some time and resources to making sure your products are always fresh and new.