

A few years back, the owner of a very successful pizza operation on the island of St. Croix in the Virgin Islands hired my Oregon-based consulting company to assist him in opening a coffee business. Picturing St. Croix, I imagined a tropical paradise complete with swaying palm trees, pristine beaches and maybe even a monkey or two. The reality, however, was far from my envisioned nirvana. At first glance, the island appeared quite poverty stricken. The further we drove, the more abandoned cars I saw along the roadside next to homes mostly made of unpainted cinderblocks. The most upscale store on the island I was told was Kmart, and I immediately had doubts about the viability of our client's project. Would islanders want-or even be able to afford-a $3 latte or a slice of the expensive Italian cheesecake our client planned to import from New York City?
I had been impressed with this client's passion during the many phone conversations we'd had leading up to our initial meeting. His intention was to do everything right. He was determined to spare no expense in creating a beautiful operation and offering the best quality products. My associate and I arrived late in the evening and our client met us at the airport, intent upon ushering us straight to our hotel and waiting to show us his nearly completed coffee operation in the morning. But curiosity got the best of us, so we asked if we could take a quick look that night.
We drove deeper and deeper into the island, and the longer we were on the road, the more worried I became. We were traveling on tiny roads surrounded by destitution. I remember smiling when I saw signs showing the speed limit to be 35 mph because the potholes in the road were such that even a Hummer wouldn't have been able to go faster than that. What we found upon arrival at Sunny Isles was anything but sunny, and I was certain we were in an area no tourist would ever visit. The area was little more than a pit-stop, its populace comprised of only a few hundred residents. Besides my client's existing pizza operation, the retail district included a bank a utility company and a couple of strip malls housing such commerce as a tire business and auto parts store. It seemed likely that the local population would be willing to spend money on our client's pizza, given its universal appeal. But I thought it doubtful that they would buy anything but inexpensive brewed coffee from an upscale coffee bar.
Obviously, our client didn't share any of our reservations, as the coffee bar was stunning--upscale with a true Caribbean feel. In the midst of the impoverishment, the coffeehouse boasted small, hand-crafted tin roofs covering the entire bar area, and the décor was a mix of soothing, pastel colors complemented indigenous artwork. What took us by surprise the most, however, was the ingenuity of our client to have cut a grand, arching opening in the wall between the coffee bar and his pizza business next door so people could easily walk from one business to the other. In theory, this was a perfect example of cross marketing. But I still had doubts and some serious concerns. Was this too fashionable? Would the décor and pricing prove intimidating to the locals?
Pizza & Coffee
Through the process of opening this operation, we experienced cross marketing hands on. During the busy lunch hour when the pizza operation was packed with locals, employees distributed coupons for the coffee bar. We made taster trays of granita drinks and iced mochas for the pizza crowd to sample. We took to the streets, dispersing menus with a phone number to shop owners in the general area of the operation. We included personalized messages that invited them to phone in to-go orders that would be ready when they arrived. Within a few days the coffee bar was packed with people. Customers purchased the products we had sampled by the dozens. We began sampling the upscale pastries in the pizza operation, and soon many of these customers came over to the coffee bar for dessert.
As the coffee operation flourished, our client gave out samples of his pizza to those who had never tried his Italian pies. Not only did he hit a home run with his coffee bar, but he also noticed that his pizza operation was showing a double-digit increase in sales. Cross marketing helped both of these operations thrive.
His was a through and through story of success. But you don't need to own another business next-door or even down the street to utilize cross marketing successfully. It's a practice that any good entrepreneur can do on a continual basis.
Cross Marketing a New or Existing Business
It's never too early to start a cross marketing program for your business. If you're in the midst of your build out, use the time during this construction phase to get to know your neighborhood and introduce yourself and your concept to area businesses. Pass out coupons to local storeowners and discuss ways in which you can build up each other's customer bases. Postcards, which can be very inexpensive, are a great way to advertise your business. Tap your staff for someone with creative ability and have them whip up a snazzy design for the card and add your location, hours and perhaps news of a special discount on the back. Suggest helping your neighboring businesses use similar programs where you can position their promotional materials on your counter or in a rack and have them do the same.
If your business is already in operation, use a similar approach and distribute discount cards to neighboring merchants. It's important to make them feel special and a part of your coffee business. If they love your coffee and feel comfortable in your coffee bar, they will encourage their friends and customers to patronize your business, as well.
We have a Coffeehouse in this Town?
On a consulting job in a small Texas town-one that has often been compared to upscale towns like Aspen, Colo.,-I expected an inviting market for a specialty coffee or tea business. Millions of tourists visit this town each year to wander through the fashionable boutiques and numerous antique stores that line the city's streets.
I arrived a day earlier than I had scheduled to meet with my client, the owner of a coffeehouse that was failing to turn a significant profit. I had planned on spending that first day as a tourist, but my concern for my client did not allow me to take a leisurely day off. The client had hired me to find out why his coffee bar-one of the most beautiful I had ever seen-was not profitable, and I wanted to start my investigation as soon as possible. I spent the day on Main Street and visited every single business. I asked each shop owner, "Is there a place in town to get one of those espresso drinks--you know, like a latte or cappuccino?" To my shock and awe, almost every single shop owner said, "No." I even said I had heard there was a place to get espresso and told them the name, and even then fewer than a dozen businesses knew of the operation. It was immediately apparent why this coffee operation was struggling. If the local business people didn't know it even existed, how could they possibly patronize it or recommend it to their customers?
Right away, we developed a campaign to inform the local merchants about the business. We knew we had to offer them something in return for helping us promote the coffee bar, and so part of our plan was to choose an employee who had an outgoing and genuine personality to pass out a "local card" to every merchant on Main Street. The card was good for a 15 percent discount each time they used it, in order to make the local merchants downtown feel like part of a special community. And since the town's business district is made up of mostly antique and gift stores, we developed a flyer to hand out to the coffee bar's customers listing interesting businesses that our coffee-seeking visitors might want to patronize. The campaign was very successful, and of all the suggestions I made, this was the one that was the most helpful in increasing sales.
I have rarely been as impressed as I was the day I walked into this coffeehouse. The ambiance was perfect and the retail section was colorful and creative. But without good marketing and other essentials like a knowledgeable staff and the perfect cup of java, it would be impossible for the business to be successful.
Become More Integrated in Your Community
When devising ways to help another business or group, think outside of the box. For example, sponsor an auction for a good cause, and make sure they mention the name of your business. A civic center or local theater can benefit from you promoting their cause, and in turn, maybe they can help you. You may only be listed in a "Thank You" section they publish in the program or the local paper after the event, but nonetheless the inclusion of your business' name will demonstrate to the community your involvement, and shows you care about the town in which you live.
In the summertime, you might want to look into local outdoor events. You can promote say a cultural festival and serve your coffee at a weekend event. Consider sponsoring a Little League team. Use this opportunity to let the group know you support them with your presence, and use the opportunity to distribute coupons and flyers.
Because of the normal small average ticket amount, running a specialty coffee business is very much a numbers game. You need to do everything possible to gain new customers on a continuous basis. Cross marketing will work whether your business is in a small village in the middle of an island or the middle of Manhattan. It's a promotional maneuver that can help any business grow and attract more customers. Cross marketing will without a doubt make you to feel and become a much more integrated part of your business community; as you help others, they will in turn help you. Remember the adage-the more you give, the more you will receive.
Bruce Milletto is president of Bellissimo Coffee InfoGroup and founder of the American Barista & Coffee School.

