The "Original" Recession - Buster!
by Jean Daum, Coffee News World Head Office
The Coffee News predecessor was a community newspaper I
designed in 1982. (Full documentation of results are available
to anyone who needs proof). It was designed to kill a very
specific recession happening in Charleswood - a bedroom
community of Winnipeg (Manitoba, Canada), that was on its
way to becoming a ghost town.
One in every four stores in its business district were
empty and abandoned, with the rest losing money hand over
fist and hanging on for dear life. New businesses that could
have revitalized the area were notoriously short-lived -
some even come and gone within their first month!
To business, Charleswood was sheer poison. Why? It was
a bedroom community - no one drove through Charleswood on
his way to work, so all businesses depended on residents
to shop at their stores. Residents had very little community
spirit and were not about to "support" businesses
they thought HAD TO BE over-priced, and with less selection
than they had been lead to believe was available elsewhere
by Charleswood's only community newspaper, Metro One, from
St. James which is across the river.
No one from St. James would drive to Charleswood to shop,
so Charleswood advertisers were forced to pay for four times
the circulation they needed to be able to reach their Charleswood
customers, at ten times the cost! In the end, the cost outweighed
the return and they stopped advertising. With only flyer
advertising able to reach their potential Charleswood customers
- at ten times the cost of a newspaper ad, they couldn't
afford to advertise and they stopped.
It doesn't take long for a business to lose enough customers
and find that it can no longer pay its bills. Then, it's
too late to advertise because advertising is a cumulative
effect, not a "one ad wonder"!
In the end, businesses in trouble were filling their windows
with 50 - 75% off sale signs - hoping for any kind of money
coming through their door that would keep their suppliers,
and worse, their banker at bay. Being a high-brow community,
nothing turned residents off as much as a "sacrifice
sale", so in a week or two, we'd notice the "Bailiff
Seizure" sign on the door and say to ourselves, "Thank
God he's gone". It was depressing to have such people
in our community - even if they'd been there for years.
I got shocked out of this general attitude when I was forced
by my husband (who was renting the hall for dance lessons)
to volunteer as Publicity Chairperson for Varsity View Community
Centre. Part of my job was to sell advertising for the newsletter,
which forced me to talk to business people in my community.
I had to go into stores I had never even entered as a resident.
It never occurred to me the sacrifice these business owners
go through just to do business, let alone the horrors of
losing everything they own when they fail. I didn't do very
well selling ads to support the community centre, but it
did convince me that if I didn't do something - no one else
was even concerned enough to try.
My newspaper lasted two and a half years and in that time,
I was able not only to re-establish 100% thriving occupancy
in the Charleswood business community, but I completely
reversed the established 80% failure rate of new business
to a success rate of 80% with the majority of business expansions
in this previously named "poison area" due to
the success of new business in the area.
I had also created such a fervor of community spirit that
all three community centers that were previously dying from
a lack of support had to greatly expand their existing facilities.
My newspaper died a very undeserving death, at the hands
of the post office which decided my profits from inserts,
which were subsidizing my ad rates, was now going to be
60% of my costs. I lost everything I owned and loved trying
to keep the newspaper going until the final decision from
the post office - 3 months later and $25,000 in debt.
It took me years to recover personally, but if you notice,
Coffee News is not delivered to homes. I had to find a new
delivery source and restaurants were perfect since the only
people who go there are people with money. Add in affordable
ad rates - perfect for new businesses with little money
to spend - and all the rest is history.
Coffee News is the ULTIMATE RECESSION BUSTER, but this
time everybody - even me - is in the black. It's great to
be a volunteer working towards something that will change
the lives of hundreds of people. And it's even better when
all your hopes and dreams are multiplied by the number of
people who are doing the same in their OWN neighborhoods
- making their own mark in history.
After all, is not the price of being born, to leave the
world a better place for having been?