gap intelligence’s 1.2 mile move from 3300 Third Street to 701 C street is nearly complete.  The desks are set, phone lines are in and all that is left is to wait for AT&T to give us the gift of DSL, which will hopefully be in just two short days.   

DSL should arrive on the last day of 2008, which marks the end of an unprecedented year for our little company.  The company has seen amazing growth as we moved into our old building with 9 employees and a team of contractors to 18 employees and an even bigger army of contractors.  Naturally, the growth that we have seen is through our longstanding relationships with our clients, whose own businesses have grown and required more support from gap intelligence.  Additionally, our success is due to our people and it’s at this time of the year that we salute the efforts of our employees for all of their hard work. 

This year’s holiday party (read below) was a celebration of our good fortune and to toast a year filled with hard work, lots of fun, and the camaraderie of a team getting bigger and stronger.  As part of the celebration, we give out the much acclaimed Kurosawa-san – gap intelligence’s Oscar, given and cherished by those who have worked hard enough to be bestowed the award. 

This year’s Kurosawa-san Award Winners:

gap intelligence MVP – Jake
The People’s Choice Award (elected by team) - Jake
Leader of the Year – Sarina
Writer of the Year – Jake
The Rock Award – Michelle
Rookie of the Year – Nicole
Can’t Live Without You Award - Katie
Part-Timer of the Year – Lena
The Stealth Award - Aidan 

Quote of the Year – Michelle
Grossest Food – Owen
Best Dressed – Nicole
Thank You Award – Stacy

The year has come to a close, and with that, comes all of the changes for the New Year, new outlooks of life, and the stress of[ the holidays. What gifts to what which person, did you spend enough on that person, spend time with both sides of the family, and having to remember all the names of the distant family that you only see once a year if that.
Not here, not at gap intelligence. The end of the year calls out to us with celebration.
The holiday party in the past has been filled with good memories, pictures that make you think ‘what were we thinking’, and thoughts of how to top the party for next year.
Yet again, I believe we have topped ourselves…

With the Saturday coming in quick, the adventure starts in the late morning as we all meet to board our wagon which will take us to multiple local breweries in the San Diego area. Our travels and visitations will be quite strenuous and will be supplemented with many pit stops to re-hydrate throughout the breweries. Following those activities, the final resting spot will be at Gary’s abode, where our bellies will be pleasantly filled with wonderful nutrients of a BBQ.

The end of our year is of celebration; copious libations, backyard fine dining, and good people to be with on a wonderful sunny afternoon in San Diego to end the year of 2008.

To all our visitors, have a happy and healthy holiday season.

Side Note: The company will be closed from December 25^th through January 5^th for our move and the holidays.

Tank top, t-shirt, long sleeve v-neck, Patagonia zip-up, hooded sweatshirt and NorthFace jacket. Socks and sneakers. And a scarf. There was once a day when bundling up for -20°F was normal for me; this is the way it goes when you grow up in the woods of Maine. But this isn’t Maine, and it’s certainly not -20°F. Welcome to 3300 3rd Avenue, San Diego. Please, take off your shoes and hat to make yourself comforta- wait. Why don’t you take this blanket instead – you might start shivering without it.

Our dysfunctional (completely non-functional?) thermostat isn’t the only reason we’re packing up shop and heading downtown to a new office. Yes, there are only a few of us not wearing fingerless gloves, but the ladies bathroom also leaks onto the stairs below (workers comp!) I suppose I shouldn’t complain; most of my friends are envious that I work in a cozy house in Hillcrest and not some fluorescently lit cubicle in a tall building without windows. They also make fun of me for packing an extra pair of socks in my bag in case one pair isn’t enough.

We’ll be moving over the holidays to be sure we’re ready to hit the ground running on January 5th. We’re anticipating the 1.8 mile move to go smoothly (and by smoothly I mean many trips to Staples for duct tape, extension cords, and all those other things you forget about when you move). I’m not really much for goodbyes, but I certainly won’t be letting the door hit me on the way out of this place. Our new office will have designated parking for employees, Herman Miller chairs (included! Just ask our previous tenants how much they paid for them), windows by all desks, and a perfectly operative thermostat. I guess this means I can start leaving my scarf at home.

Our new Address!! Effective January 1, 2009

701 C Street
San Diego, California 92101

Exit: Stage Igloo.

OnLatte isn’t letting Starbucks have all the fun with coffee. Founders Josh Grob (as I have come to learn half way through writing this article is the cousin of our very own Jake Fishman) and Oleksiy Pikalo have created a printer than can produce different images on the foam of a latte. While there are baristas across the country that pride themselves in the art, OnLatte has automated the technique, how American!

The two inventors are currently using an old Kodak inkjet that they attached to a flatbed scanner to produce the images. The company is not ready to stop at lattes either as they have visions of making designs on the top of Guinness beer foam! The small start up company has yet to patent their invention or gain the $200,000 investment that they will need to produce a machine ready to sell to coffee shops nationwide.

As a former Starbucks barista myself, I will say that this is quite an extraordinary invention. Starbucks does not currently make designs on lattes, largely because of time constraints as well as the majority of customers wanting their beverages in to-go cups with solid white lids. With such an automated device however, I could see a mainstream coffee shop offering up the little extra something with your double tall extra hot two pumps sugar-free vanilla skinny latte. So, although we think customization in the coffee world has peaked as customers order their 5 minute long coffee preferences, let’s add one more thing to the mix!!

I.  a death on black friday

a. we covet
b. timed promotions, early store openings – a stop watch
c. animal instinct to win
d. desperation

Black Friday expectations were lower than normal, but no one would have guessed that the day would bring the tragic death of Walmart employee, Jdimytai Damour.  Customers lined up outside a Long Island Walmart preparing to purchase their bargain televisions and at 5 a.m. when Damour was instructed to open the doors, a rush of people trampled him to death.  One would think that humanity would leave the store immediately once authorities arrived and began investigating a person’s death.  But this crowd of consumers was so self involved that some were appalled at the very thought of abandoning the supercenter of discounts due to the inconvenient death of another human being.

The unfortunate death of Damour was the result of the growing disease of consumerism in this country.  As the economy continues to struggle and people pinch every penny, the desire to get a deal on that TV or camera becomes more important than life itself.  Although shoppers may have less money to spend they still covet - we want what our neighbors cannot have.  Consumers are addicted and obsessed with getting the best deal at whatever cost.  Each year, we read endless news accounts of that mom or dad pushing their way through the toy store to get the next Tickle Me Elmo toy for their 5-year old child that will likely not remember or appreciate the gift in 20 minutes.

The question remains, whose responsibility is it to ensure that shopping events such as Black Friday are safe? The retailers - they can do only so much to blockade the stampedes of animalistic shoppers.  Consumers are at a point of desperation where they have no regard for the public when it comes to getting the best deal.  Will retailers have to hire police task forces to make people stand in single file lines in order to contain the masses? Shouldn’t we, the consumer, be able to control ourselves?

So what now? Will consumers think twice about the importance of their $25 DVD players?  At least for a short time America is looking a bit more embarrassed in the mirror about the consequences of the consumer driven economy we have created.  Retailers and electronics manufacturers, alike, depend on holiday sales to get them through the rest of the year.  We have built a mentality that encourages people to wake up early or even camp out at stores days in advance when they have a hard time getting up for work in the morning.  If the motivation to get that one deal was as strong as the motivation to help the environment, feed the hungry, or stop wars, maybe we would be a lot better off.

Thanksgiving. Turkey Day. The fourth Thursday in November. In the consumer world, it’s the day before the biggest ad and sale day in the US…that’s right, Thanksgiving is the day that precedes…(lightning flashes, thunder claps, the sky goes gray)…Black Friday. For consumers looking to score a killer deal, collectors looking to well, do some more collecting, or early-birds just looking to start Christmas shopping the first official day it’s acceptable, Black Friday is a dream come true.

For me, it is the day that I make sure not to leave the house. I dust, I make friendship bracelets, I jump rope, basically I do anything but shop. However, this year I have decided to enter the world o’ crazies and venture to the mall in search of some sweet savings.

My goal, to purchase a new computer.
My first choice, the Apple store.

Will I survive? Not likely.

Second choice, Best Buy. Probably worse off (see video). And if neither of those work, I will to retreat back to my lair and opt for my third choice, which brings me another extremely interesting day of the year, Cyber Monday.

Cyber Monday is the Monday after Black Friday and is considered the beginning of the Christmas online shopping season. Last year, Cyber Monday resulted in a record sales volume of $733 million, up 21% over Cyber Monday 2006. The question remains as to whether 2008 will experience similar success. Quite frankly, I bet Cyber Monday will be a huge hit. Although gas prices have lowered over the last couple weeks, driving remains limited and online dealers will likely address the sub-par economy with lowered prices, crazy sales, and extra-great bargains, fueling a consumer shopping online frenzy. The downfall, it’s a Monday. A Monday after a break and I doubt many people have Cyber Monday off.

I’m all for Cyber Monday. I just hope I make it through my attempt at shopping on…(insert Count von Count music)…BLACK FRIDAY. AH AH AH!

After many years and millions of emails, I finally received a SPAM message that I can finally take advantage of (insert assorted joke here).  The US Local Business Association recently deemed gap intelligence, inc the 2008 Best Market Research & Analysis company of all of San Diego.  Naturally we are flattered to receive such a prestigious award and never thought that the day would come that we would receive top billing in America’s Finest City.*** Huge asterisk here for footnote below. 

We are thrilled about winning the Best of 2008 San Diego Award and hope to defend our title in 2009.  We are actually considering expanding our eligible categories by entering the Best of “Most Boston Red Sox Fans Employed”, “Worst Air Conditioned / Heated Building”, and “Most Coffee Consumed”.

Press Release
FOR IMMEDIATE RELEASE

GAP Intelligence Receives 2008 Best of San Diego Award

U.S. Local Business Association’s Award Plaque Honors the Achievement

WASHINGTON D.C., November 24, 2008 — GAP Intelligence has been selected for the 2008 Best of San Diego Award in the Market Research & Analysis category by the U.S. Local Business Association (USLBA).

The USLBA “Best of Local Business” Award Program recognizes outstanding local businesses throughout the country. Each year, the USLBA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2008 USLBA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USLBA and data provided by third parties.

About U.S. Local Business Association (USLBA)

U.S. Local Business Association (USLBA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USLBA is to promote local business through public relations, marketing and advertising.

The USLBA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.

SOURCE: U.S. Local Business Association

CONTACT:
U.S. Local Business Association
Email: PublicRelations@USLBA.net
URL: http://www.USLBA.net

Congratulations to US!!

***Huge asterisk:  We are well aware that the US Local Business Association is a fictitious organization hoping to make money on the sale of their $1 plaques.  We never inquired about buying our own plaque, but could not pass the opportunity to exploit a free press release and image of our award.  If you are a small business owner and have received a similar award from the USLBA, please read the “red flag” status the Better Business Bureau gave the organization earlier this year.

Bubble, Bubble, Bubble….. The aftermath of the last big bubble, analysis of the current bubble, how to guard against the next bubble. There is no avoiding it. Every time we turn around it seems we’re inundated by bubbles. Speculative bubbles are both everyone’s favorite scapegoat and next great opportunity. From Holland’s Tulip Mania Bubble of 1637 to the more recent examples that are currently affecting our economy, speculative bubbles throughout history have followed the same general blueprint. It has been proven time and time again, excessive buying that results in unjustified price inflation will eventually result in market contraction.

Ricoh completed its $1.6 billion acquisition of IKON Office Solutions last week, vaulting the manufacturer to the forefront of the office machine market and inciting what may prove to be the greatest run on dealer acquisitions to date - or the next big bubble. The deal is expected to allow Ricoh to surpass Xerox as the top selling office equipment manufacturer worldwide, as the company “upgrades” the estimated 720,000 non-Ricoh products that IKON has in the field. The acquisition also provides Ricoh with access to IKON’s impressive Fortune 500 and public sector client list, adds 400 sales and service locations, and significantly bolsters the manufacturer’s print services resume.

Since the merger was first announced in late August, rumors of impending consolidation and market-wide buying sprees have dominated conversations across the internet and around the water cooler. With memories of Xerox’ purchase of Global Imaging and Konica Minolta’s acquisition of Danka Imaging still fresh, manufacturers quickly turned their attention to independent dealers across the country to ensure that their foothold in the channel remains intact. By the end of September, Canon had already acquired office equipment distributor Newcal Industries, reportedly outbidding Xerox by 20 percent, and revealing plans to “expand its sales network.” Toshiba further fueled consolidation forecasts last week, announcing its acquisition of HPS Office Systems. Suddenly the value of the mom and pop copier dealership around the corner (not to mention regional distributor) is appreciating faster than a Southern Californian McMansion circa 2005 – and that was a big bubble.

It should be noted that the overlying theme of consolidation within the office machine channel is nothing new. All it takes is a Google search for “Independent Copier Dealer” to illustrate the fact that independent dealers are formed far less often than they are being acquired. In fact, IKON arguably had more influence in this phenomenon than any other company. IKON (then Alco) was among the first true copier dealer conglomerates, acquiring 450 independent dealers during the 1980s, and quickly emerging as a dominant player in the channel. IKON was also instrumental in educating manufacturers on the importance of maintaining control over channel partners, as it later dropped Sharp and slashed much of the vendor’s US presence almost overnight.

Beyond possibly jump-starting the independent dealer boom of 2009, the acquisition of IKON presents several very real challenges for both Ricoh and IKON’s now-former partner Canon. Canon devices represented roughly 60 percent of IKON’s revenue and the termination of the relationship is surely keeping both manufacturers up at night.

Late last week Canon notified its dealers that the manufacturer will no longer supply copiers to the new Ricoh-IKON entity, essentially green-lighting competition with its expiring IKON contracts. Similar to when Jerry Maguire was unceremoniously ousted from Sports Management International, you can guarantee that Canon’s network of Maguires plan to bring their share of Rod Tidwells with them. Like its previous contract terminations with both Danka and Global Imaging, it is very clear that Canon will not sell through its competition, even if it means a remarkable drop in channel presence. Canon will likely rely on dealer-friendly incentives as a short-term solution to its sudden loss in volume, but the vendor has no choice but to expand its direct and authorized network in order to maintain market share.

Despite Canon’s ongoing independent dealer push, the manufacturer has just 53 direct branches providing the company with few opportunities to make up for the lost channel presence in the near future. With the prospect of a 40 percent lower US channel presence on Canon’s mind and promises of an “expanded sales network” published, expanding its direct distribution network is undoubtedly at the top of the manufacturer’s priority list. Canon’s expected channel push will place similar pressure on every other vendor that relies on independent dealers to sell MFPs, laying the groundwork for an unprecedented year of acquisitions.

The supply void created by the end of Canon’s distribution partnership with IKON and the promise of aggressive competition for the manufacturer’s existing contracts provides Ricoh with its own set of challenges. Given the added financial burden created by the $1.6 billion acquisition, which comes in conjunction with the company’s first drop in quarterly sales in 15 years, Ricoh is ill-equipped to invest in rapid capacity expansion. With that, it is likely that Ricoh will look to competing manufacturers to sell though the new reseller entity, delaying returns on many of the advantages that it sought to gain through the acquisition. The deal also disrupts the distribution of Ricoh’s various brands and may concern some of its independent authorized dealers that share sales regions with IKON’s 400 locations.

And so it continues, as the worldwide economy tries to buy its way out of the latest bust, MFP manufacturers move forward on a trend that has all the makings of a bubble. The need to establish and expand direct sales bases have never been more emphasized and the number of available independent dealers has never seemed more limited. Many manufacturers will see little choice but to expand their direct sales network, likely resulting in aggressive bidding wars, unrealistically steep premiums, and some unsound business decisions. That said, with dealerships rapidly being purchased, manufacturers have little choice but to take part in the ongoing consolidation and unlike previous bubbles, the true winners will not be the parties that resisted the trend. As long as the current copier business model remains intact, manufacturers who remain conscious of dealers’ intrinsic value and make sound investments will be best positioned as the latest boom period concludes.

And now I am off to open my own copier dealership…