Katie: Welcome back to the BusinessMakers Overtime Show. We're here and it's segment three, continuing to talk about some easy and very effective ways that businesses can be thinking about the B-word: budgeting.

Esther: Yee – scary!

Katie: (Chuckles) But it's a very, very good thing. And actually, we've seen a lot of businesses that are really thriving in a frugal economy right now, whether it's actually the industry that they're in, like the services that they provide are for budget-minded consumers or businesses, and even – and this is very unique, I think – we're seeing a lot of businesses do well in the fact that they're actually trying to sell their products for less.

Esther: Right.

Katie: Kind of reaching out to people that are maybe pinching the pennies, clipping the coupons, and they're seeing phenomenal returns.

Esther: Mm-hmm.

Katie: Now, one of my favorite websites that I've recently completely been addicted to is Groupon.

Esther: You did send me that link. I love it!

Katie: I totally did! It's Groupon – so think "coupon" but, like, with a more touchy-feely "let's all get together on this action" Groupon – GROUPON.com. And what they do is they actually have different localized chapters, if you will. So, you know, we're in Houston, and New York City, San Francisco, Chicago all have one, and each of the local markets will reach out to local business owners and say, "You know, hey, we've got an amazing user database. We've got a giant mailing list. We wanna promote your company, and we wanna help people that are kind of living out there on a budget get connected with your business. What can you do for them?" And so what you see is every single day if you subscribe to Groupon in your city, you'll actually get these amazing emails of local businesses – some that are real big, some you've never heard of – offering amazing, amazing deals for prospective clients. The thing about the Groupon angle is that once you see something you like, a certain number of people have to also go in on it with you, or else it's a no-go.

Esther: Wow!

Katie: So, I mean, basically if you're a business that's participating. Okay – so you're offering – I mean, I've seen like 70 to 80 percent off services – I mean, amazing deals – but you are guaranteed people pay that money upfront that day. They have a limited time to get in on the action.

Esther: That's awesome!

Katie: And it's phenomenal!

Esther: What a great idea!

Katie: So, I mean – and I can tell you, like, it has worked so well with me, and I really am the Coupon Queen that – I mean, I have sent the boyfriend to get a wet shave, which really normally wouldn't have come across my radar. I have a great coupon for all-natural organic food, which is something that I like, but this is a treat that's affordable now. I can go to this restaurant because of the Groupon.

Esther: Great! Awesome!

Katie: So it's such an interesting way that – okay, you're gonna be maybe making a good bit less per customer, but when you get 500 extra customers in your door, you are not gonna be crying over that loss.

Esther: All you need is that one customer to make them a customer for life if you treat them right.

Katie: Exactly! Exactly!

Esther: What a great deal!

Katie: Now, do you know about a website, Esther, called RetailMeNot?

Esther: I'm very familiar with RetailMeNot. In fact, they're one of our affiliates at Blinds.com.

Katie: Really?!

Esther: So are Ebates.

Katie: Excellent!

Esther: Actually, RetailMeNot and Ebates are two of our top affiliates because they run such a tight operation. It's hard to find updated sites very often, and I think what's great about RetailMeNot is that other users who click on the coupons can rate whether or not the coupons worked for them or not.

Katie: Oh, I love that!

Esther: So if you see that a coupon has 15 percent work value, well –

Katie: Forget it!

Esther: That means it probably doesn't work anymore.

Katie: Yeah, it's not worth it. Yeah.

Esther: It doesn't work.

Katie: Don't try it.

Esther: Don't even try it – right. If you see 100 percent, that coupon definitely works. That's what I like about RetailMeNot. It's got some really cool features. And Ebates is obviously one of the biggest affiliate networks, and you can find some great deals. And actually, one of the things that I think would be very beneficial for a business, because anyone can set up an affiliate network, is for a business to actually set up an affiliate network for their own employees. So basically you'd set up a side business for your company, and anyone who wants to shop through the Internet can buy groceries or buy bedspreads or dog food or whatever, and then small percentage of that will come back to the company, and you can take that little bit of money – maybe it's $100.00 or $500.00 or, if you're Chevron, thousands of dollars – and put the money back into the company like company party or –

Katie: Exactly – or quarterly bonus tracks or something.

Esther: Quarterly bonuses – exactly!

Katie: Yeah!

Esther: But it would be a great way for your company to get something back if you're struggling, or even if you're not struggling; it's still a great way to save some money.

Katie: Absolutely! And, I mean, with so many places that you can set up an affiliate program like that, you're also gonna be saving your employees money as well because, I mean, there's actually a lot of good – definitely good deals to be had.

Esther: Absolutely! That revenue will go a long way.

Katie: Absolutely!

Esther: The next company that is doing extremely well, and it's maybe not that surprising, but I think to me, at least, the reasons why it's doing so well are really surprising, and that's McDonald's.

Katie: McDonald's – the "Golden Arches" McDonald's?

Esther: They're doing phenomenally in the recession.

Katie: Ah!

Esther: Now, you would think that the only reason is because they make cheap food.

Katie: Okay.

Esther: And yes, that is one of the reasons, because people who used to eat out at maybe midrange Applebee's type restaurants are now eating a step below that, and they're going to McDonald's. They're picking up McDonald's on a Wednesday night. You know, six-pack of nuggets for the kids, chicken sandwich for the mom, quarter-pounder for the dad – I mean, it's very easy. It's very inexpensive, and it works. I mean, the food – actually, the quality of the food has actually improved over the years, or that's what people say.

Katie: Okay, okay.

Esther: Now, another big reason why they've done so well is because they launched McCafé.

Katie: Ah, yes!

Esther: McCafé has taken the coffee world by storm. I've never actually had it, but I hear it's quite good.

Katie: I have, and it's funny. The only reason – and this is coming from a girl that has literally not eaten at McDonald's for maybe seven years – like eaten at McDonald's.

Esther: Right.

Katie: I went there specifically – and again, give people free stuff and they'll come – they were giving away free coffee.

Esther: I mean, so there you go!

Katie: And it was really good. It really was good, and even now the prices – you just cannot beat them.

Esther: Phenomenal prices – they've killed Starbucks. I mean, really, they have – according to this article in Slate.com, "Over the past two years McDonald's stock has ground Starbucks into a fine powder."

Katie: Holy moly! More powdery than a coffee bean!

Esther: That's right! You know, it's really amazing. They've opened nearly 600 stores in 2008.

Katie: Oh, my gosh!

Esther: I mean, when everyone was closing, they opened 600 stores.

Katie: Exactly! Exactly!

Esther: Really amazing!

Katie: Oh, goodness! So going a completely different way – you know, away from the Golden Arches, you're also seeing a lot of people that are getting those caffeine fixes right in their kitchen.

Esther: The Pods! Who doesn't love Pods?!

Katie: The Pods – and I gotta tell you, I am a French Press fanatic!

Esther: Are you?

Katie: ... there's no better way to drink coffee in my little world. So –

Esther: Oh, my gosh! I'm gonna come over to your house and get a cup.

Katie: Do it, lady! I could totally brew you up one!

Esther: Nice!

Katie: And actually, I mean, businesses, too – you know. I mean, there was a time where you'd be seeing managers going out – at least in our building – going out Starbucks down the street, and for the big company meeting like, "All right! Let's get a big thing of coffee!"

Esther: Yeah – or, "What do you want?" and come back with 20 lattes.

Katie: Exactly! Exactly! The poor interns have to remember 20 different orders, you know. But nowadays, I mean, you're seeing companies like Folgers and Green Mountain that are really prospering because, I mean, on so many different levels people are budgeting. But at least, I mean, they're saving money, and, you know, the coffee ain't that bad.

Esther: It's actually pretty good.

Katie: It is.

Esther: I'm not a huge coffee drinker, actually. I used to be, and I kind of quit. But I love coffee, and it really does help me get through the day sometimes. And I used to actually make Green Mountain coffee in my little Kwereg coffee machine at the office. We had one, and I loved it.

Katie: Oh, that's awesome!

Esther: But it also makes hot chocolate, and I like that, too. Another industry that you might not even think about – might totally be off your radar, but maybe not – is the romance novel industry.

Katie: The romance – I'm thinking like –

Esther: Random – I know.

Katie: Fabio on the cover romance novels?

Esther: Yes, exactly! Harlequin romances!

Katie: All right!

Esther: So Time Magazine reported that the romance novel industry is one of the big winners of the recession.

Katie: Really?!

Esther: Yeah. The reason that this is the case is because (a) it's a frequent impulse purchase.

Katie: Okay.

Esther: You're at the airport. You wanna buy a book to read on the plane. You get a couple hours' good entertainment, and –

Katie: Sure – easy reading.

Esther: Compared to a hardcover book – if you wanna read a hardcover book – if you wanna buy it at the airport, it's gonna cost you about $25.00 to $30.00.

Katie: Easily – yeah.

Esther: These books – these paperback books – they come out in paperback. It's not like they start out in hardcover and then go to paperback. They're $5.00 no matter where you go. You can get them at the grocery store. You can get them at Walgreen's. And another reason is that once you start reading them, you are hooked. You are a reader for life! So they hook you in with one book, and then you're forever a reader.

Katie: Oh, they're pushers! That's terrible!

Esther: Exactly! I mean, it's definitely a global market. Who doesn't love a love story?

Katie: Yeah, absolutely.

Esther: You know, they translate these books into 100 languages. They're sold all over the world. They actually customize the covers depending on where they're sold. Like, if you live in India –

Katie: Oh, really?!

Esther: Yeah, if you live in India, the woman on the cover and the man on the cover are fully-clothed, fully in their garb. If you come to America, they're fully naked except for like a loincloth or something.

Katie: Exactly! And don't forget the white linen billowy shirt that the guy has to wear.

Esther: Of course! Of course – and he has long –

Katie: With the chest hair sticking out!

Esther: Long hair flowing in the breeze – so, I mean, I'm not a big romance novel reader, but I think it's surprising that their profits have gone up so significantly. They said that they made nearly $1.4 billion in sales last year, the largest share of the consumer book market.

Katie: That is exceptional!

Esther: Unbelievable! More than one out of four books sold is a romance novel.

Katie: Holy cow!

Esther: Can you believe that?!

Katie: That is remarkable!

Esther: It is really amazing.

Katie: And I know that – I mean, you'll see books that sort of loosely fall in that genre – like all the Twilight books right now – you know, the movies are coming out and – so, I mean, I'm seeing – even on different levels – I don't know if that's considered – I mean, you wouldn't call it like "upper crust" romance novels. But they're not your typical, like –

Esther: Down and dirty –

Katie: No, but I guess I can see on, you know, all different stratospheres of our society where these – I mean, they remain popular. You know?

Esther: Absolutely! You know, sex sells.

Katie: I could – yeah!

Esther: If you're interested in these romance novels, you're definitely not the only one.

Katie: Yeah, so you're in good company. And you can also use the hollowed-out book trick, you know, so it looks like you're reading some giant marketing tome on the airplane, you know.

Esther: Yeah, exactly – or some great collection of short stories – just dig out the middle and stick a romance novel in there.

Katie: Well, dear business owners, we are hungry to know how are you saving money right now? What are you doing to cut down your costs? And especially, we'd love to know on ways that – you know, it's not just kind of the top management down that's dictating all this, but what are some of the creative ways that your employees have come up with trying to help save money, help grow the business, keep some extra people onboard. Visit us online at theBusinessmakers.com and fill us in.

Esther: Let us know, because we really wanna know, and if you actually give us some great tips, we might share them on the air next week.

Katie: We would absolutely love it.

Esther: You've been listening to the BusinessMakers Overtime Show heard here and online at thebusinessmakers.com. I'm Esther Steinfeld.

Katie: And I'm Katie Laird. And since we're on a budg –