What
we have learned about experienced-based "selling" in 22 years
We know that knowledge cannot be transferred. An experience
has to be created that facilitates each individual learning
and recreating what they learn. Everything in the knOwhere
Store is information, tools, products that we use in our work.
We invite people in to our environment to use it. We then
sell them parts of the environment - or the whole system -
as they see the benefits of our way of working.
When
a new customer walks into knOwhere we never know if what they
will take away is a book or an entire working system. We let
the customer decide - we do not try to "sell" what we have
but what we can create and adapt to the customer's requirements
and desires.
We
consider what we do as ART.
We
do know this: if our customers cannot use our environments
they will never buy them nor most of the components that make
them up. This was true in 1979 and it is true today.
We
got here early
knOwhere
moved to Midtown in 1997. This required a huge investment
for us. We are a self-funded, family-owned corporation. We
got here early. However, if we had waited for a mature market,
we would not be able to afford the price.
In
general, the larger market for our work, services, products
and environments is just reaching a healthy level of demand.
The Midtown market is behind this curve but catching up.
After
three years of effort, $2 million in investment and losses,
the Palo Alto knOwhere Store reached the break-even point
at the end of 2000.
The
knOwhere Store is designed to become a walk-in environment
in a "village" setting
The
knOwhere environment is designed to open to the street. It
has a large outside/inside patio designed for interaction.
Today, this is only used occasionally for special events.
In time, as the community evolves we see our place becoming
a portal for knowledge economy resources.
Our
present position
Today,
most of our revenue is generated by selling multi-day working
events and big sales of work furniture-our basic services
and goods. This is where we started. It is not where we are
going.
The
vision from, the beginning, was to be global in our reach
and local in each place we work. In the first two years the
vast majority of knOwhere revenues came from outside California.
In the last 18 months the shift has been to local Valley corporations.
We are now experiencing the convergence of community interest
and business.
Our
goal is to have a balanced mix of global, national, regional,
local and community-based customers. We believe that this
is healthy for us and the community. The resources we bring
into the community are as important as the ones we develop
within the community. Business today is global and the impact
is always local.
How
our mix of activities is shifting
Our
mix of business is shifting in three ways. First, our business
base is increasingly coming closer to home. Secondly, our
big sales revenues are being increasingly balanced by higher
volume of small sales (which are now about 25% of total revenues).
Last, as we and the market mature, we will be retailing an
increasing amount of many people's goods and services in addition
to our own.
Community
uses and involvement where we live
Matt
and Gail Taylor, MG Taylor Corporation and the KnOwhere Stores
have always been active in the communities of which we are
a part. We do this, mostly, by offering our services free
to those communities. We have done it here on several occasions
and will continue to do so.
We
do not do this to be good corporate citizens - we do it because
we believe in doing it. Community development has been part
of our work for over 30 years.
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Local
business incubation
"Community-serving,"
as I noted above, has many nuances. What it is depends a great
deal on your perspective and what "economy" you are in. We
all need cleaning, food and other basic services - but business
incubation?
When
Gene Wang decided to start a new business, his third, he wanted
it to be near his growing family. A resident of the neighborhood,
he found in knOwhere a place to locate his startup. Over 14
months a business of one became twenty and "graduated" to
its own environment (taking a lot of furniture). The result
is PhotoAccess a successful Internet service company. With
this business established, Gene is now thinking of a new idea
and may come back to knOwhere for another startup.
In the new economy, intensive work has to be balanced with
family. Walking to work is better than traffic jams. Home
offices need access to high-speed lines and expensive equipment.
In this environment, a hub like knOwhere is community-serving.
How
we handle negative impacts
knOwhere
has a low impact on Midtown. Our person/car traffic per square
foot is very low. We manage our impact. When we have large
groups for any duration, we bus them in or pay a local church
for use of its parking lot.
If
KnOwhere left and the space was converted to a high traffic
traditional retail environment, there would be nowhere for
its customers to park. As it is, the office building next
door and Starbucks uses our parking lot at peak periods. Without
this capacity, their business would suffer. The majority of
the knOwhere staff and owners cycle to work a significant
portion of the year.
What
we do at knOwhere
Everything
we do at knOwhere we consider to be retailing, be it offering
workspace, a service, or a product. We offer these service/products
bundled and as individual components. A "sale" for us can
be a $19.95 book or a several hundred thousand dollar mix
of our various products and services. We offer all this at
the Store, at the customer location and through the Internet,
but the key is the experiential selling described above.
We
provide hotelling and startup incubation services. Tenants
comprise a mix of our sister companies and others. "Outside"
companies usually stay with us for the short term until they
find permanent offices. We ask startups to leave when they
reach a level of development and operation that is no longer
appropriate for our environment and the Midtown area.
We
rent our space to groups for meetings, design sessions and
project work. We also conduct sessions ourselves. Often, these
sessions are staffed by Knowledge Workers who come in and
perform services-- facilitation, art, video, photography,
and documentation. Most of these are not our employees - they
are network members. They are our customers as much as the
end-user.
We
perform a variety of knowledge services from producing video
shows, designing and hosting web sites, doing research, providing
environmental design services, teaching and facilitating creativity.
We provide our customers place to sit read and work and access
to a comprehensive library, as well as, the Internet.
We
sell books, art tools, toys, puzzles, art objects, games,
travel kits, and a wide variety of work furniture. Almost
everything in the environment is for sale - knOwhere is a
15,000 square-foot show room, demonstration, retail environment.
We
provide, on a custom basis, access to Internet, servers, multimedia
editing and high-quality scanning, digital photography, and
color printing.
Our
work is based on the integration of the work environment,
technical tools and work processes. Our specialty is "releasing
group genius" because, today, no matter your organization
the majority of work is done in collaboration with others.
This
is knOwhere - the marketplace for the new economy.
Founding
Concept
Community-Serving
Shopping and Effectiveness of Ordinances
Needed:
an Objective Definition of Community-Serving
A
Personal Note from our Founders
Our
History of Community Support
Recommendations
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