May 21, 2006

Business Analogy

Lets take an example where I own a business that is extremely business, actually too busy. Customers sometimes have to wait in long lines, parking/driving around my business is difficult and the neighbors complain about the congestion/noise to city officials constantly and fight any expansion plans that I have.

At the same time, my brother-in-law has bought a similar business, not far from mine, that is struggling badly. To keep peace in the family I have help him pay his monthly bills to stay open.

One night I drive by my brother-in-law's store and it is empty, then I get to my store where there is traffic congestions, no parking and the lines are long inside. Let me ask you a question, would I walk up to people in the line and suggest that they may want to try my brother-in-law's store. Answer-I would not. Now that may seem mean, but that is business and people who disagree me, surely do not own their own business. Customers are the lifeline of any business and you never send them to the competition.

Let me change the analogy. What if I had bought my brother-in-law's store or had a 99 year lease to run it? I would surely inform customers of our second location. In case anyone is confused MassPort manages the thriving business and ORH is the brother-in-law.

SELL ORH!!!!!

7 comments:

Anonymous said...

What about the people that work at the airport now. We can't sell the airport to Massport because they may bring in outside personnel that do not pay taxes or spend their money in Worcester.

Anonymous said...

Bill from Worcester makes a good point.

Are there any local businessmen willing to takeover the expense of operating and run the airport as a business?

Anonymous said...

Bill, your analogy does drive home a point, however the problem with your brother's store is more a lack of inventory and location, with the consequence being few customers.

Your brother's corner store only offers Allegiant candy bars and does not know how to market itself. It needs to also carry Coke, Pepsi, Polar, Drakes, Hostess, Littel Debbie, Nabisco, Hood, Green Mountain, Wachusett, Lottery, etc.

If you get the inventory in place, will the customers then come? This is the $64K question up there. The chicken or the egg?

Also there is the perception or reality that your store has better access and your facility is usable under most all weather conditions.

To anonymous, bringing in people who dont pay proterty taxes or spend in Worcester is not necessarily a bad thing. Most Worcester women go to Auburn, Northboro, or Framingham/Natick for an afternoon of shopping.

Anonymous said...

Why is Hanscom sucessful with their association with Massport.

Bill Randell said...

Anonymous:

Good point.. My brother's corner store is lacking inventory... Let me adjust my analaogy...

Instead of sending him inventory, I opted to send him some cash to help him.. Why would I send him inventory to help him be more competitive against me???

When you really think about it, we are asking MassPort to help their competition (us)?? It will never happen until they get a true equity position in ORH like they do at Hanscom, which they OWN!!!

SELL ORH!!!

Anonymous said...

Why even send him cash then? If competition is the issue then let him wither on the vine, unless here is someother familial intent.

Bill Randell said...

Maybe that is what MassPort should have done 5 years ago???

Now we just assume MassPort will be there 403 days from now to bail us out again..