Douglas magazine Dec/Jan 2024 by Page One Publishing

FUTURE-PROOF YOUR COMPANY

D E C /J A N 2 0 2 4

FOODPRENEURS

Tipping the Scale

Kira Selah, operations manager, Kitchen Connect

What’s Next?

Business trends and predictions for 2024

5 PRICING STRATEGIES

Find the sweet spot for your product or service

HIRING HOW-TO

What to know as a job seeker

THE POWER OF BRANDING It’s more than your name and logo

YOUR OASIS FOR EVERY DRIVE The Mercedes-Benz EQE SUV Far more than just an interior, every part of the Mercedes-Benz EQE SUV cabin is engineered for thoughtful luxury. This cabin is generous in room, attentive to detail, and thanks in part to advanced aerodynamics, supremely quiet. Schedule your Mercedes-Benz EQE SUV experience today. Electric. Crafted by Mercedes-Benz.

Three Point Motors

Mercedes-Benz Nanaimo

Life enjoyed your way.

“The best way to spread Christmas cheer is singing loud for all to hear!” ~ Elf, Will Ferrell ...and Happy New Year from all of us at Trillium Communities. Locally Owned & Operated | 250.383.6509 | trilliumcommunities.com

Introducing New Members of Reed Pope’s Real Estate and Corporate Teams. Skill and Experience you can Trust.

Jonathan Walls

Lauren Muirhead

Jack Palmer

Associate

Jonathan’s practice encompasses a range of business and strata law matters, including business agreements, commercial leasing and strata governance. Jonathan enjoys working alongside his clients to tackle complex problems and craft effective solutions.

Lauren’s practice focuses on commercial real estate and related corporate matters, including land development, acquisitions and dispositions, financing, and strata governance. Lauren enjoys working with developers at all stages of the development process and brings a solutions-oriented approach to complex real estate transactions.

Jack’s practice focuses on corporate and commercial matters, including mergers and acquisitions, formation and governance of corporate entities and limited partnerships and corporate reorganizations. Jack provides advice at all stages of the business life cycle and enjoys streamlining transactions for his clients.

Reed Pope Business Lawyers is a leading West Coast law firm based in Victoria, British Columbia. The lawyers at Reed Pope collaborate to provide responsive, tailored legal solutions for their clients.

202–1007 Fort Street, Victoria, B.C. T 250.383.3838 reedpope.ca

CONTENTS

DEC2023/JAN2024

F E AT U R E S

Foodpreneurs are Tipping The Scale — p.40

The Power of Branding Costco, MEC and Lego have learned the secret to customer loyalty, in some cases the hard way. BY KEN WINCHESTER

What’s Next Business trends and forecasts for the year to come. BY KEN WINCHESTER & LIAM RAZZELL

40 Foodpreneurs Are

The Power of Branding — p.20

Tipping the Scale

Local farmers and foodpreneurs have new commercial kitchens to develop and grow their craft-food businesses. BY CINDA CHAVICH

The Price is Right, or Is It? Five strategies to find the “sweet spot” on your product or service. BY KEN WINCHESTER

D E PA R T M E N T S 8 NOTE FROM THE EDITOR 13 IN THE KNOW Inside Sidney’s sprawling Amazon warehouse; tugboats go green and businesses go cashless; an Indigenous entrepreneur creates a network of virtual gurus; the Ecostar Awards recognize sustainability.

48 LIFE + STYLE

Choosing the perfect office coffeemaker; five business phone apps you need now; the Fairmont Empress welcomes winter with cocktails and s’mores on the Veranda.

50 I NTEL 50 “FIT” OVER FACTS Hiring Part 1: What to know — and ask — as a job seeker. BY INGRID VAUGHAN

What's Next: Business Trends and Forecasts for the Year Ahead — p.30

D O U G L AS

51 F ORGET FOCUSING ON CHANGE What will change in the next few years? Maybe less than you think. Here is how to future-proof your business. BY JIM HAYHURST

54 DID YOU KNOW

The State of the Island by the numbers.

Scotiabank Lighthouse, 100 Yonge St., 5th Floor, Toronto ON, M5C 2W1 File: 2706252 The McNaughton Group Douglas Ad

Workfront#: 2706252

Trim: 2.39” x 9.58”

Insertion:

Colours: CMYK

Bleed: n/a

Deadline:

Safety: n/a

Designer: NC

Prod:

NOTE FROM THE EDITOR

What’s Ahead for Victoria Businesses?

FOR YOUR F A M I LY, BUSINESS AND FUTURE. A team-based approach for a total wealth strategy that addresses the entirety of your life. C.P. (Chuck) McNaughton, PFP Senior Wealth Advisor 250.654.3342 charles.mcnaughton@scotiawealth.com themcnaughtongroup.ca

The McNaughton Group ScotiaMcLeod® , a division of Scotia Capital Inc.

®Registered trademark of The Bank of Nova Scotia, used under licence. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. For more information visit www.scotiawealthmanagement.com. McNaughton Group is a personal trade name of C.P. (Chuck) McNaughton.

D O U G L AS

PREDICTING THE FUTURE has always been a dice roll, so in this issue we turn to experts in a number of sectors and ask them to look ahead to 2024. First, let’s look at what I call macro trends that will affect the economy — and most businesses — over the next year: the changing nature of work, especially in the wake of the pandemic; the aging of the population and Canada’s increasing dependence on immigration; mounting sustainability challenges in a time of climate change; and shifting market dynamics, including intensified foreign competition. One of the biggest surprises over the past year has been the resilience of the economy in the face of aggressive monetary tightening. Next year, we expect the economy to continue to limp along in the face of high household debt, high interest rates and stubbornly persistent inflation. As a share of GDP, Canadians are the most leveraged across the G7 countries. As a result, any increases in the Bank of Canada’s policy rate are sure to act as a drag on consumer spending. The good news is that the Bank of Canada is expected to end its tightening campaign and even begin reversing some of its recent hikes next spring. Other trends and predictions for the year ahead: AI will be everywhere. The Boston Consulting Group asserts that “to be an industry leader in five years, you need a clear and compelling generative AI strategy today.” Sustainability continues to show that consumers prefer companies with a solid commitment to reducing their environmental footprint. The customer is king (or queen). While traditionally a company might build a business model around superior quality or value, in 2024 the impetus will be to ensure that every single interaction makes the customer smile. Remote and hybrid work is the new normal. Itʼs no longer about surviving the pandemic, itʼs about offering flexible working conditions and harnessing a global workforce. Resilience. Is your business protected from whatever threat is around the corner? That could mean cyberattacks, economic downturns, environmental events, global pandemics or the emergence of a disruptive new competitor. There are many more business trends just around the corner. In this issue we’ll predict many of them, from real estate to technology, how to price your product or service to the fine art of branding it.

“One of the biggest surprises over the past year has been the resilience of the economy in the face of aggressive monetary tightening.”

— Ken Winchester, Editor

Organize your space, and you’ll organize your mind.

CLOSETS • KITCHENS EURO CLOSET DOORS 250-381-6511

464 Burnside Rd. E.

FLOATING WALL BOXES

G E

Time to Rise

M E

March 6 to 8, 2024 Victoria, BC

Mark your calendars! It’s almost time for Rising Economy 2024, the transformative conference about shaping your business to survive and succeed in the new economy.

Designed around the theme of EMERGE, Rising Economy 2024 explores the massive changes and opportunities ahead — and how your organization can capitalize on emerging opportunities.

ourrisingeconomy.com

Get the latest intel and insights from industry leaders

Make valuable connections — enjoy MORE networking than ever

Expand your ideas with energetic panels & ﬁreside chats

Gain practical, actionable takeaways to propel your business forward

Presenting Sponsor

Catalyst Sponsor

Community Sponsors

Media Sponsors

Produced by Supporting Sponsors

LO • A heartfelt thank-you to the business community for joining us in celebrating Bobbie Racette, founder and CEO of Virtual Gurus and VG on Demand, at our 20th annual Distinguished Entrepreneur of the Year Award gala. We couldn't do it without you.

BMO Q I Private Wealth

School of Business University of Victoria

TABLE SPONSORS

PREMIER SPONSOR:

PROGRAM SPONSORS:

Gustavson

BMO Private Wealth and Canadian Commercial Bank

, Hilberry Group, National Bank Financial Wealth Management

British Columbia Investment Management Corporation (BCI)

Jones Emery LLP

CIBC Canadian Western Bank DeeBee's Organics Digital

Executive Programs, Gustavson School of Business, University of Victoria

■

EVENT SPONSOR:

•i#t#i• ij:Jmi Business Lawyers

MEDIA PARTNERS:

business magazine

League of Extraordinary Women MNP Nicola Wealth PH&N Institutional Pomme Natural Market

Flytographer

Proline Management Ltd.

Grant Schnurr Wealth Management National Bank Financial

QuadReal Property Group

Greater Victoria Chamber of Commerce

DOUGLAS

KPMG Leading Ladies

Gustavson Capital Corporation Heart Pharmacy Group

I I

UVic External Relations UVic National Consortium for Indigenous Economic Development

UVic Coast Capital Innovation Centre

VOLUME 17 NUMBER 6 PUBLISHERS Lise Gyorkos, Georgina Camilleri EDITOR IN CHIEF Joanne Sasvari

We believe the ultimate measure of our performance is our clients’ success. It has guided our approach for over 30 years.

EDITOR Ken Winchester DIRECTOR OF PHOTOGRAPHY Jeffrey Bosdet LEAD GRAPHIC DESIGNER Caroline Segonnes ASSOCIATE GRAPHIC DESIGNER Janice Hildybrant ADVERTISING CONSULTANTS Deana Brown, Will Gillis, Cynthia Hanischuk, Brenda Knapik ADVERTISING COORDINATOR Rebecca Juetten MARKETING CONSULTANT Amanda Wilson DIGITAL MARKETING COORDINATOR Claire Villaraza MARKETING COORDINATOR Lauren Ingle EDITORIAL ASSISTANT Liam Razzell CONTRIBUTING WRITERS Cinda Chavich, Jim Hayhurst, Ingrid Vaughan PROOFREADER Lionel Wild CONTRIBUTING AGENCIES Getty Images p. 32-37, 44, 48, 50 GENERAL INQUIRIES info@douglasmagazine.com SEND PRESS RELEASES TO editor@douglasmagazine.com LETTERS TO THE EDITOR letters@douglasmagazine.com TO SUBSCRIBE TO DOUGLAS subscriptions@ douglasmagazine.com

250-405-2928 | www.oceanwealth.ca

Advisors you Trust. Advice that Works.

Member - Canadian Investor Protection Fund

ADVERTISING INQUIRIES marketinginfo@douglasmagazine.com ONLINE douglasmagazine.com FACEBOOK DouglasMagazineVictoria X twitter.com/Douglasmagazine INSTAGRAM @douglas_magazine COVER Kira Selah, operations manager, Kitchen Connect, Photo by Jeffrey Bosdet Published by PAGE ONE PUBLISHING 580 Ardersier Road, Victoria, B.C. V8Z 1C7 T: 250.595.7243 E:info@pageonepublishing.ca pageonepublishing.ca Printed in British Columbia by Mitchell Press. Ideas and opinions expressed within this publication do not necessarily reflect the views of Page One Publishing Inc. or its affiliates; no official endorsement should be inferred. The publisher does not assume any responsibility for the contents of any advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not the publisher. No part of this magazine may be reproduced, in all or part, in any form — printed or electronic — without the express written permission of the publisher. The publisher cannot be held responsible for unsolicited manuscripts and photographs. Canadian Publications Mail Product Sales Agreement #41295544 Undeliverable mail should be directed to Page One Publishing Inc. 580 Ardersier Road, Victoria, B.C. V8Z 1C7 Douglas magazine is a registered trademark of Page One Publishing Inc.

COMPLETE EYE EXAMINATIONS BY

DR. JASON MAYCOCK DR. TOBY VALLANCE DR. MANDY LETKEMANN DR. NICHOLAS CATCHUK

ADVERTISE IN DOUGLAS! Douglas is a premium magazine dedicated to innovation, leadership and business lifestyle. Established in 2006, Douglas is the first choice for business leaders and achievers. Align your business with Douglas. For more information or to request an advertising rate card, please call us at 250.595.7243 or email us at marketinginfo@douglasmagazine. com.

OPTOMETRISTS

D O U G L AS

CLIENT: MAYCOCK EYECARE PUBLICATION: DOUGLAS MAGAZINE SHIPPING DATE: SEP 2023; AD SIZE: 4.94” x 4.7”

JEFFREY BOSEDET/DOUGLAS MAGAZINE

IN THE KNOW

Inside Sidney’s Amazon Warehouse BY KEN WINCHESTER

If you live in Greater Victoria, your Amazon order passes through this sprawling 115,000-square-foot fulfilment centre in Sidney.

The stunning 1,400-square-metre sculptural image on the outer walls of the Amazon warehouse in Sidney was completed last spring. The mural, dubbed Cascadia Junction, was created by Vancouver-based Ombrae Art Studios and cost $2 million. READ THE FULL STORY P. 14

D O U G L AS

IN THE KNOW An e-commerce boom turbocharged by the pandemic has turned Sidney into a shipping capital. Wrapped in a 140-metre long and 10-metre tall mural depicting the mountains and waters of the Salish Sea, it’s hard to miss the massive Amazon delivery station codenamed DVV2 on McDonald Park Road near YYJ. If you live in Greater Victoria and have ordered a package from Amazon, it has passed through this “last mile” facility — one of 31 in Canada — that plays an essential role in Amazon’s supply chain. All Amazon orders begin at fulfilment centres — gigantic warehouses that store thousands of goods. Once packaged, orders travel by truck and/or plane to sort centres, where employees route orders en masse to delivery stations based on postal code. At delivery stations, teams sort and load packages onto delivery trucks bound for peoples’ homes. Depending on the time of year, 90 to 120 people work at the 115,000-square-foot Sidney facility. The delivery station also employs 160 to 300 drivers, and every day 80 to 110 of them deliver thousands of packages. Amazon also operates an exchange point in Nanaimo — a small facility called XVV2, designed to increase the company’s delivery reach in rural Island communities. Here, pre-sorted packages arrive from the Sidney delivery station in big trucks. Employees load the packages onto smaller trucks for house-to-house deliveries. Essentially, it’s an extension of the Sidney delivery station. When the exchange point opened in 2022, it was the first of its kind in North America. “There’s another one in Toronto that recently opened, but we spearheaded this new model,” says Geoff Suter, operations manager at the Sidney facility. Together, the Sidney and Nanaimo facilities send out 25,000 to 40,000 packages every day. 14

D O U G L AS

Kitimat's new fleet of fuel-efficient tugboats includes the world's first electric tugs.

EVEN TUGBOATS ARE GOING GREEN

A new tugboat fleet set for Kitimat is the first of its kind. BY LIAM RAZZELL

itimat on B.C.'s north-central coast will soon be home to a revolutionary tugboat fleet. Jointly owned by the Haisla First Nations and Seaspan, the marine service company HaiSea commissioned the fleet, which comprises five vessels, three of which are the world’s first allelectric tugs. The other two are among the first tugs that run on diesel and liquified natural gas.

Made by Sanmar Shipbuilders in Istanbul, two electric tugs have arrived at Seaspan’s North Vancouver port. The rest of the fleet will arrive by January 2024. HaiSea formed in 2019 to pursue a 12-year contract worth $500 million to supply and operate the tugs needed to dock and escort LNG carriers at LNG Canada’s forthcoming export facility in Kitimat. Seaspan senior vice-president

Jordan Pechie says HaiSea is based on two pillars, the first of which is generational employment. Operating a tugboat fleet is no small feat, and the company will eventually employ 70 sailors and six onshore professionals to do so. The second pillar is environmental stewardship, hence the fleet’s makeup. The electric models, each of which holds enough charge to power

IN THE KNOW

TURNING REMOTE WORKERS INTO Virtual Gurus Indigenous tech founder named 2023 Distinguished Entrepreneur of the Year

JA N E T PL IS K A

1 Runway end safety area 2 Taxiway fillets 3 Apron and terminal expansion 4 Apron expansion (remote parking) 5 Runway extension C Cargo reserve

Bobbie Racette, founder is unique. I am proud of the and CEO of talent-as-aopportunities we provide for service platforms Virtual underrepresented folks, by Gurus and askBetty, is the growing Virtual Gurus without Peter B. Gustavson School of losing focus of our North Star,” Business 2023 Distinguished says Racette. Entrepreneur of the Year Racette was told “no” Award recipient. countless times along her Virtual Gurus trains and startup journey. When she connects highly skilled, remote launched the company in 2017 workers based in Canada and with $300 and some help from the U.S., with companies her mom, more than 170 in need of onventure capitalists demand help that turned her down. can be scaled Instead of quickly to taking their meet the advice and changing sidelining needs of her their clients. personal Racette, values to who is appeal to Cree-Métis, traditional has built investors, she her enterprise redoubled her with the goal of commitment to offering equitable her unique vision, opportunities to and began pitching individuals from “impact” investors. underrepresented Today, more communities. than 800 virtual Says Peter assistants are part Gustavson, chair of the Virtual of the DEYA Gurus platform committee: and Racette — Bobbie Racette, founder “Bobbie’s recently closed and CEO of Virtual Gurus, DEYA Awards Winner unwavering a successful focus on building $8.4-million thriving, inclusivity-first funding round, becoming platforms is changing the the first Indigenous woman Canadian tech industry in in Canada to do so. “Bobbie’s important ways.” commitment to her vision The AI-powered Virtual and drive to empower others Gurus platform, and associated is an important example to app askBetty, celebrate our students and any aspiring diversity and prioritize talent entrepreneur,” says Saul Klein, from among Indigenous former dean of the Gustavson and other underserved School of Business. “She communities. has shown how passion and “We listen to our Virtual tenacity can be translated into Gurus stories, and every one business success.”

“We listen to our Virtual Guru stories, and every one is unique.”

70 Teslas, are a promising alternative to diesel-powered tugs — especially at a time when swift, creative solutions are needed to mitigate global warming. Annually, electric and LNG-diesel models produce less carbon-dioxide emissions than diesel-powered alternatives (54 per cent and 24 per cent, respectively). That’s what makes the HaiSea fleet arguably the greenest in the world. Compared to a five-

tug, diesel-only fleet, HaiSea’s fleet will save 9,000 tonnes of CO2 emissions annually. That’s equal to the yearly emissions of 2,000 passenger vehicles. The marine industry has noticed HaiSea’s new fleet, especially the electric tugs. “We’ve given over 120 tours here at Seaspan from companies all over the world,” says Pechie. “The international attention has been nothing short of amazing.”

D O U G L AS

IN THE KNOW

GOING Cashless Data shows mobile contactless payments are on the rise; here’s what business owners need to know. BY LIAM RAZZELL

D O U G L AS

THE 2023 ECOSTAR AWARDS Recognizing local companies that walk the walk of environmental action.

he annual Ecostar Awards recognize sustainability in action. This year’s winners include a First Nation’s effort to restore local shellfish beds, a construction company that has diverted more than 130,000 tonnes of waste soil from B.C. landfills, and a society that strengthens the local food economy by providing food boxes, meals and garden plots, plus harvests food that would otherwise go to waste.

UGL

The winners, announced at the Inn at Laurel Point on November 9, prove that environmental concern and innovation go hand in hand. The eighth annual awards, hosted by the non-profit Synergy Foundation, honour sustainable businesses from around the Island. The gala's 2023 title sponsor was Vancity Credit Union, with Schneider Electric and Destination Greater Victoria as gold sponsors.

It’s not a stretch to label The Complete Canadian Small Business Guide as the bible for E A D S Canadian entrepreneurs. It has been the go-to book for thousands of small businesses since it was first published in 1988. Now in its revised and updated fourth edition, the guide covers literally everything business owners need to know to take advantage of the latest changes in technology, law, resources and best practices. The encyclopedic guide provides clear advice on starting, operating and expanding a small business, including:  Should I buy a business or franchise, or start from scratch?

Chances are you’ve seen more and more people paying for everything from coffee to hair appointments using their smartphones — a payment method called mobile contactless payments (MCPs). But have you wondered how they work, why they’re so popular and whether they could benefit your business? Such payments require an app that stores banking information, which customers use to pay for goods and services online and in-person with their smartphone, tablet or smart watch. Point-of-sale MCPs use near-field communication technology (similar to Bluetooth) that wirelessly transfers information. Last year, the Canadian interbank network Interac recorded a record-breaking one billion MCPs. Between August 2022 and July 2023, pointof-sale and online Interac MCPs increased by 53 and 17 per cent, respectively. “Canadians’ reliance on mobile devices continues to increase in everyday life, and their payment habits have shifted as a result,” says Interac’s assistant vice-president of commerce Nader Henin. COVID-19 also contributed to this shift, as the technology meant people didn’t have to touch payment terminals. But despite their popularity, a recent Statistics Canada survey found that only 9.2 per cent of businesses accepted MCPs, due to security or privacy concerns and incompatibility with existing payment systems. However, most experts agree they’re safe; MCP apps encrypt near-field communication data, and thieves can’t pay using passcode-protected smartphones and other devices. That said, just because MCPs are popular, doesn’t mean they’ll suit your business. Canada has a $250 MCP transaction limit, so they won’t work if you offer expensive goods or services. But if the bulk of your business is lowerpriced, online or in-person sales that people can make with tap-enabled cards, then you should give MCPs some serious thought. But don’t wait too long — a recent Payments Canada survey found that, last year, 16 per cent of Canadians avoided shopping at businesses that didn’t accept MCPs. And an Interac survey shows nearly three-quarters of Canadian businesses plan to “cheque out” in the next five years.

Pauquachin First Nation Marine Department, a recent Ecostar Clean Oceans winner, protects aquatic resources within their traditional territory, including the restoration of shellfish beds in Coles Bay.

2023 AWARD WINNERS  Clean Oceans: Pauquachin First Nation Marine Department  Climate Action: Focal Engineering

COMPOUND ANNUAL RETURNS (Including reinvested dividends, as of October 15, 2023) 1 YEAR

3 YEAR

5 YEAR

10 YEAR

20 YEAR

INCEPTION1

Odlum Brown Model Portfolio

9.7%

10.4%

9.7%

10.8%

11.1%

13.7%

S&P/TSX Total Return Index

9.8%

8.9%

8.1%

7.4%

7.7%

8.2%

December 15, 1994. *The Odlum Brown Model Portfolio is an all-equity portfolio that was established by the Odlum Brown Equity Research Department on December 15, 1994 with a hypothetical investment of $250,000. It showcases how we believe individual security recommendations may be used within the context of a client portfolio. The Model also provides a basis with which to measure the quality of our advice and the effectiveness of our disciplined investment strategy. Trades are made using the closing price on the day a change is announced. Performance figures do not include any allowance for fees. Past performance is not indicative of future performance.

 Community Leadership: Paper Heart Films  Design and Construction: GRT Resource Regeneration  Ecological Stewardship: Mamalilikulla First Nation  Ecopreneur of the Year: Julian Hockin-Grant of Allied Certifications  E xperiential Tourism: Homalco Wildlife & Cultural Tours  Greenest Retailer: Seaflora Skincare

B ES T WIS H ES FO R

 Innovation: Barnacle Systems

H EA LTH A ND H A PPI N ESS FR OM A LL OF US AT

 Inspirational New Venture: IntellectuLogy Solutions

M A X IM UM EX PRESS

 Leadership in Hospitality: Inn at Laurel Point  Local Food: LUSH Valley Food Action Society

 Where do I get financing, how much do I need, and how best to pay it back?  How do I get credit from my suppliers?  How do I hire the best employees — and keep them? Authors Douglas Gray and Diana Gray provide answers to these and hundreds of other essential questions, and offer streetsmart tips on everything from working with lawyers and accountants to securing patents and trademarks. Wrote Linda Fox in the Toronto Sun, “If I ever quit my day job, this is one of the first books I’d rush out and buy.” •

maxcourier.com

info@maxcourier.com

250.721.3278

D O U G L AS

THE POW A strong brand is about more than your name and logo. Pure and simple, it stands for customer trust. BY KEN WINCHESTER

hat do Costco and MEC have in common? They are the two most trusted brands in Canada. Now in its ninth year, the prestigious University of Victoria's Gustavson Brand Trust Index has identified Costco and MEC (Mountain Equipment Company) as our most trusted brands, with a tied score. This is a direct reflection of their perceived value and robust relationships with customers. Close behind are such familiar names as Toyota, Dyson, the Canadian Automobile Association, Ikea and even Lego. “The two top brands’ commitment to value, customer service and competitive pricing has resonated with consumers searching for affordability in the face of inflation,” says Saul Klein, former dean of the Peter B. Gustavson School of Business at UVic and director of the project. The study was established in 2015 to explore that elusive concept, consumer trust, the factors that influence it and the brands that excel in building it. This year the study featured

D O U G L AS

more than 400 brands across 33 categories, from alcohol (Alexander Keith’s came in first) to hotels (Four Seasons) to health care (Tylenol). A key finding was brands that offered savings and value to consumers increased their trust rating, deeply influenced by rising inflation. Those brands that turned a deaf ear to rising costs saw their trust scores erode. As an example, MEC achieved the top spot in the trust index in both 2019 and 2020. But in 2021, following its sale to a private investment company, it fell to seventh place. With a determined effort to rebuild trust, it reclaimed top spot in 2023. “MEC’s incredible comeback story showcases the power of resilience and customer loyalty, propelling them from a moment of crisis to reclaim their position,” says Klein.

LESSONS LEARNED The transportation sector, not surprisingly to anyone who has stuffed themselves into an economy seat, had the lowest trust scores. Brands in this category, particularly airlines, received lower trust scores this year. Their failure to meet

WER OF the expectations of Canadian customers was due to poor customer service and operational challenges such as delays, cancellations and baggage mishandling. Canadians recognize unethical practices: Consumers have a kind of radar to detect unethical practices among brands. Despite SHEINʼs global popularity in fast fashion, for example, Canadians ranked it 399th among brands, highlighting concerns about sustainability. Inflation affects trust: The impact of inflation on consumer trust is keen. Facing rising prices, Canadians are seeking better value for their money. Brands offering affordability are more likely to gain consumer trust in this economic climate. Some other findings from the report: WestJet has lost altitude, and the airline industry in general is facing a crisis in customer trust and loyalty. The once-beloved airline is grappling with delays and cancellations as well as a perceived drop in the level of service. To regain lost ground, airlines must prioritize customer service and reliability to win back the hearts and minds of customers.

Netflix’s recent decision to crack down on shared accounts highlights the growing importance of trust in the video streaming industry. An increasing array of competitors like Disney+, Amazon Prime and HBO Max are also vying for dominance. Inflation, the rising cost of groceries and accusations of price-fixing have seen trust in Loblaws plummet, as well as their Real Canadian Superstore here on the Island. By contrast, Costco’s response to customers’ needs during these inflationary times serves as a shining example of providing good value and maintaining consumer trust. Toyota is the most trusted automobile brand in Canada, while faith in Tesla dropped based on the shenanigans of CEO Elon Musk. Likewise Twitter’s (now X) treatment of employees hit rock bottom as Muskʼs ownership led to mass layoffs, system breakdowns and a drop in morale and trust. The so-called “Musk Effect” highlights the risk in hanging a company’s brand on a single figurehead. Sometimes a single incident can trigger a decline in brand trust. When CTV, Canada’s largest private TV

D O U G L AS

MOST TRUSTED BRANDS

TOP BRANDS BY REGIONS THERS PROVINCES O AND TERRITORIES 1. Interac 2. Liberté 3. Dyson   Columbia Sportswear

LBERTA/BRITISH COLOMBIA A 1. Costco   MEC 2. IKEA 3. Tylenol

YUKON NORTHWEST TERRITORIES

BRITISH COLUMBIA ALBERTA

MANITOBA QUEBEC ONTARIO

SASKATCHEWAN

NTARIO O 1. MEC 2. Kicking Horse Coffee   Patagonia   Costco 3. Toyota   Columbia Sportswear

NUNAVUT

QUEBEC 1. Cirque du Soleil 2. CAA   MEC 3. Band-Aid

Who’s up and who’s down? The trust index has identified which brand has risen, and which has slipped, since the previous survey in 2022.

CLIMBERS 

MOST TRUSTED BRANDS Kellogg's 15 Facebook 13 Remington 12 Amazon 12 Google 8 Victoria’s Secret 6 Sun Newspapers 6 SC Johnson 6 Global TV 5 Macleans Magazine 5 Lactalis Canada 5

Nike 4 Boston Pizza 2 Keurig 1 -2 TripAdvisor -4 Airbnb -4 Aviva Insurance -4 Ocean Spray -9 Tesla Motors

-12 Twitter -17 Loblaws

SLIDERS 

-9 Air Canada

Source: Gustavson Brand Trust Index 2023

D O U G L AS

network, dismissed veteran journalist Lisa LaFlamme, viewers raised concerns about the network’s pursuit of younger viewers at the expense of older loyalists. According to Klein, one finding keeps coming back stronger each year: Besides the performance of a brand (quality, reliability, value for money) and the experience it provides to its customers, consumers also pay close attention to a brand’s values and social responsibility. Earning trust in a purpose-driven economy is achieved through acting with competence and intent, and is lost when these behaviours are not authentically demonstrated.

WHY BRANDING MATTERS What’s the conclusion? A business’s branding is more important than owners might think. On the outside, a brand may seem like it consists only of logos and colours, and maybe a catchphrase or jingle. But a brand is actually the entire identity of a business. For better (Costco) or worse (X), a brand gives a business its personality. Research shows that companies with strong brands generate higher sales and profits. In other words, taking the time to define and build a brand can give any business a competitive advantage. Here are some tips to help implement effective

branding strategies and tactics in your business. Conduct effective market research Before making significant branding efforts, answer a few key questions: Are customers aware of your brand? How are you perceived in the market? How do customers compare your brand with others in your sector? What characteristics do customers associate with your brand? Market research will help answer these questions and gather feedback on positioning for the future. Brand research is usually conducted by interviewing customers and organizing focus groups. You can hire experts to help coordinate customer surveys or try using inexpensive — or sometimes free — online survey tools like QuestionPro, Interceptum or SurveyMonkey. Focus on a unique value proposition Your brand is your promise to the customer. So it’s important to develop

a brand that conveys a unique value proposition to customers — something that stands out. Think about why your customers would choose you over the competition. Are your products more dependable? Do they have a longer life? Are they less expensive than others in the market? In sectors such as fashion, furnishings or manufactured goods, unique styling can also be a key differentiator. Choose a brand name that delivers a clear message Once you have identified your customers’ needs and desires and have come up with products to meet them, it’s time to choose a brand name that delivers that message clearly. It’s best to be specific. For example, consider giving each product or service a different brand identity, as opposed to simply repeating your company’s name. Create an emotional connection Psychologists have found that 90 per cent of communication is non-verbal. Shrewd marketers have long known that businesses can improve brand effectiveness

In the end, a brand is a promise. It’s what customers perceive, feel and believe about the business or person that embodies its message.

D O U G L AS

MEC Redux: A Case Study in Redemption

JEFFREY BOSEDET/DOUGLAS MAGAZINE

Mountain Equipment Company has experienced an incredible journey of vilification and redemption. After achieving top spot in the Trust Index in 2019 and 2020, MEC nosedived following its bankruptcy and acquisition by California-based Kingswood Capital Management, and the dissolution of its co-op status in 2021. This decision horrified its loyal customers — who, under the former co-op structure, were also its owners — and led to a precipitous decline in trust for the MEC brand. Recognizing the need for change, MEC placed emphasis on fostering a culture of accountability and open communication. The company sought feedback from its employees and empowered them to contribute to the brandʼs rejuvenation. The MEC brand now stands again for a commitment to outdoor enthusiasts, sustainability, transparency and community engagement.

Patrick Humer, MEC, general manager, Victoria

MECʼs Brand Trust Performance 66 59

 MEC

2017

D O U G L AS

2019

 Avg Score for Apparel and Footwear Retailers

Source: Gustavson Brand Trust Index 2023

2018

2016

2020

2021

2022

2023

Once a company has developed an effective brand and corporate identity strategy, it must be implemented consistently through every “point of contact” with customers. if, in addition to a good name, they evoke appropriate emotion. One simple way to do this is through the use of colour. In our brains, reds create a sense of urgency, greens suggest sustainability and blues pair with water. They all can help to reinforce an effective brand name. Some companies even use music to build brand identity. For example, Intel trademarked the musical notes that play at the end of its television commercials. Spread the word Once a company has developed an effective brand and corporate identity strategy, it must be implemented consistently through every “point of contact” with customers, including in advertising, signage and public relations. One key is to get employees on board. A company’s employees are its greatest brand advocates. Creating an internal model will help them understand and connect to your core brand(s). They’ll then be better equipped to communicate that message to customers. Leverage guerrilla marketing Guerrilla marketing is an out-of-the-box, unconventional and creative way to achieve maximum exposure and impact for a product or service. The approach leverages hype, curiosity and intrigue to increase mentions, word of mouth and attention toward a business. Think of it as an adjunct to traditional advertising. Examples include sponsorships, installations or events that spark public interest and social media shares. It can also take the form of digital campaigns, like viral videos or interactive websites. Prominent companies like Coca-Cola, Red Bull and Pepsi are several brands that use guerrilla marketing effectively. But small businesses, too, are realizing the potential of this strategy. In the end, a brand is a promise. Itʼs what customers perceive, feel and believe about the business or person that embodies its message. A brand is also a vehicle for creating trust with stakeholders, and in both the for-profit and non-profit sectors, trust is everything. •

Stylish Sips The HEXA wine glass from Vargen & Thor allows wine to breathe and release its full aroma and taste. Available in sets of four, these luxe crystal glasses are recommended for prosecco, cava, white wine or rosé, but also pair well with red.

PHARMASAVE BROADMEAD Broadmead Village Shopping Centre 310-777 Royal Oak Drive 250-727-3505 pharmasavebroadmead.com

Turn your business challenges into_ growth opportunities

Hire a CPA_ bccpa.ca

CPAs are your greatest business allies in this changing world.

D O U G L AS

BUSINESS PROFILE

MONK OFFICE Growing up Monk: family owned and Island grown

resident and CEO Caitlin McKenzie grew up in the warehouses and stores of Monk Office, working through many different divisions within the company before becoming CEO in 2018. This family legacy began in 1963 when Caitlin’s grandfather, Ron McKenzie, purchased Monk Office supply from Charlie Monk. Her father James started his career at Monk doing deliveries by bicycle, taking up the reigns from Ron in 1990. Monk Office reflects the McKenzie family’s commitment to carrying quality supplies and creating genuine connections with their customers. Monk has experienced significant growth in its 72-year history. A notable expansion occurred in early 2022 with the purchase of another longstanding local, family-owned franchise: Island Blue Art & Framing. With two retail stores and two print locations, Island Blue was founded in 1912, offering drafting supplies and services, expanding into art and framing to support Vancouver Island’s pool of talented artisans. You can now discover the first ever Monk Office & Art location at 905 Fort Street, which conveniently combines the offerings of both franchises under one roof.

D O U G L AS

Monk Office caters to a diverse range of customers, from professionals and organizations to artists and hobbyists. Discover their extensive range of offerings (aside from office supplies!), which includes design and installation of office furniture, business machines and technology, IT services and full-service copy and print centres. They also pride themselves on the personalized support offered to commercial and retail customers with their exceptional customer experience team. You can discover their products online at shop. monk.ca or at one of eight retail outlets on Vancouver Island, including three in Victoria alongside stores in Sidney, Duncan, Courtenay and Port Hardy. Caitlin and Monk are one and the same, as though it was pre-determined. Her adorable pooch Eames is named for an iconic piece of office furniture from Herman Miller. She has a passion for stationery and loves all things supplies, with one of Caitlin’s favourite things being the Pentel Mechanical Pencil, which she describes as “sturdy, vintage in look, light in weight, and perfect for everything from vision and mission statement drafts to lists,

letters and doodles.” The Pentel Mechanical Pencil comes in the colours black, blue, or yellow, and is available in all Monk retail stores as well as online.

monk.ca | shop.monk.ca hello@monk.ca

BUSINESS PROFILE

CASCADIA LIQUOR Inaugural single barrel whiskey release in time for the holidays

hether you’re a whiskey novice or connoisseur, this category of spirits offers something for everyone. This captivating spirit transcends borders with the newest single malts hailing from America, not Scotland. Imagine a whiskey with enough personality to stand up and tell its own story. Cascadia Liquor’s new American single malt whiskey cask selection from Westland Distillery is just that. Audacious and singular. This is the first in a program of single barrel whiskey releases that are as unique as a fingerprint. “In this program, we will search for great casks from top distillers. When we find something interesting we will share it exactly as we find it,” explains Jay Jordan, Canada’s sole Master of Bourbon and Council of Whiskey Masters member. “Every barrel is a unique expression of the whiskey making process. It reflects the true artistry behind it.” For the inaugural release, Cascadia has partnered with Seattle-based Westland Distillery. Westland takes a distinct regional approach to making whiskey. They explore the flavour potential through every aspect of whiskey production. The team at Westland work with Skagit valley farmers for local grain and maltings. They have an extensive program to source sustainable Garryana oak for barrel making. They have even found a regional peat bog where they source peat for some of their whiskies. Their whiskies are a true reflection of the region we call home. Westland leads the American single malt whiskey category. The whiskey Cascadia has selected includes Westland’s signature blend of five roasted, kilned barley malts. Belgian

“Every barrel is a unique expression of the whiskey-making process. It reflects the true artistry behind it.” — Jay Jordan, Master of Bourbon Victoria Area Manager, Cascadia Liquor

brewer’s yeast contributes to the fruit and spice flavours. Eight years in a first-fill Madeira wine cask have given this whiskey a mix of coffee, dark chocolate and dried fruit flavours. Jay provides further insight on this new exclusive cask. “It features aromas of baked apple that open to rich toffee, dark chocolate and wood spice. This is a complex and expressive spirit showcasing both grain and wood. Fruit and spice aromas from the Madeira cask are balanced against a creamy malt character.”

Cascadia is home to a vast selection of whiskies including new and exclusive products. Offering not just a bottle, but an exceptional addition to your collection or the perfect gift for a whiskey aficionado. As Cascadia invests heavily in employee education, their knowledgeable and service-focused staff can provide the best recommendations, ensuring your whiskey experience is unforgettable. Discover the world of whiskey with Cascadia Liquor.

cascadialiquor.com D O U G L AS

BUSINESS PROFILE

Parm Sandhu, Branch Manager, Waypoint Insurance

WAYPOINT INSURANCE Together, protecting what you love

ased in British Columbia for more than 150 years, Waypoint is a leading insurance and risk management brokerage dedicated to providing expert advice and tailored solutions to businesses in the communities it serves across Canada. Waypoint has more than 30 locations across Vancouver Island and the lower mainland. In the spirit of Reconciliation, Waypoint acknowledges that its Head Office is situated on the unceded traditional territory of the K’ómoks First Nation, the traditional keepers of the land. Waypoint’s extensive and diverse coverage falls under the umbrellas of personal insurance (i.e., home, condo, tenant, travel and life), business insurance (i.e., small business, entrepreneurs; fishing resorts/ lodges; marinas and docks; marine and inland cargo; marine liabilities and marine trades; and of course, vessels), and auto insurance (i.e., private, fleet, motorcycle and ICBC). Additionally, their dedicated risk advisors collaborate closely with clients,

D O U G L AS

investing time and expertise to understand each client’s unique risk landscape — no matter how complex — empowering them with insights into the risk transfer process and providing a tailored package of solutions to boost their business profitability. Since 2019, Waypoint has been a member of Navacord, Canada’s third-largest commercial insurance brokerage, which allows them to leverage national strength in the Canadian marketplace to cater to the diverse needs of clientele consistently. “We invest our time and expertise to understand each client’s unique risk landscape, no matter how complex, which empowers them with insights into the risk transfer process and provides a tailored package of solutions that boosts their business profitability,” says Tony Hayes, CEO, Waypoint, “And, as a Navacord Broker Partner, we leverage exclusive national relationships, breadth of expertise, services, and products to manage clients’ rapidly-changing risks.” Whether it’s through diverse sponsorships,

scholarships or community involvement, Waypoint stands as a beacon of community leadership, commitment and trust. For example, because Waypoint recognizes the power of education and its potential to shape futures, The Waypoint Insurance Indigenous Scholarship was established in 2021 to support Indigenous people in pursuing postsecondary education by reducing financial barriers. As Dawn Froats, Director of Brand, says, “Waypoint is not just an insurance provider; we are a community-driven partner dedicated to offering comprehensive insurance solutions while actively giving back to our communities.” Visit waypoint.ca for more information.

waypoint.ca | 1-866-674-2816

BUSINESS PROFILE

MAYFAIR OPTOMETRIC CLINIC Experience and expertise that is second to none

eratoconus is a disease that distorts vision due to an irregular cornea. Dr. Stephen Taylor has a keen interest in diagnosing and treating this challenging condition and has been participating in research studies on the topic for 30 years. He also employs both cutting-edge and old-school techniques to successfully manage its progression, which requires corneal mapping technology and often involves specialty contact lenses. Dr. Taylor is widely respected as an authority in the professional niche of keratoconus treatment, and says, “It is particularly rewarding to help a patient achieve clear, comfortable vision when other approaches have failed to yield a satisfactory result.”

3196 Douglas Street | 250-361-4444 | Monday-Saturday mayfairoptometric.com

BUSINESS PROFILE

FUTURPRENEUR Turn a great idea into a thriving business

hara Krangle and Vanessa Nicola, two friends from Vancouver, share a love for health and nutrition. Oat Of The Ordinary, their oat product business emerged from that love. Futurpreneur, a national non-profit organization, supports young entrepreneurs like Chara and Vanessa. Young entrepreneurs, aged 18-39, benefit from: · Financing – Up to $60,000 to launch or grow your business; · Mentoring – Get matched with an experienced mentor to support you; and · Business Resources – Tools and workshops to help build your business. Looking to start a business in B.C.? Futurpreneur can help.

Learn more at futurpreneur.ca/douglas

D O U G L AS

What's Next:

BUSINESS TRENDS AND FORECASTS FOR THE YEAR AHEAD Forecasts. Prognostications. Auguries. Whatever you call predictions, experts in five key sectors gaze into the proverbial crystal ball to reveal their insights for the year ahead. BY KEN WINCHESTER AND LIAM RAZZELL

D O U G L AS

TOURISM

EXPLORE SONGHEES

The good news is that this crucial sector of Victoria's economy has bounced back from its deep pandemic slump. Among a host of kudos, Victoria was recently named the best city in the world — that’s world — by the passionate readers of Condé Nast Traveler. By the numbers, each year Greater Victoria draws some three million visitors who contribute more than $2 billion both directly and indirectly to the local economy. Cruise ships alone disembark more than one million visitors to Ogden Point. Tourism employs some 20,000 locals in everything from hotel services to restaurants to attractions like The Butchart Gardens and the Royal BC Museum, Victoria’s top two attractions. Destination Greater Victoria (the Greater Victoria Visitors & Convention Bureau) is the official not-forprofit destination marketing organization, working in partnership with more than 950 businesses and municipalities in the region. Its CEO, Paul Nursey, is widely regarded as one of Canada’s top tourism policy minds, with 28 years of management and leadership experience that includes the Canadian Tourism Commission and Tourism Vancouver. One of his organization’s most ambitious projects is a master plan, which he expects to release in early 2024, that will predict traffic, events, conferences and the infrastructure needed to cover it all. Meanwhile, Nursery says, “The first six months [of 2024] are heaving. A key trend we’re seeing is that

Paul Nursey, Destination Greater Victoria, CEO

business conferences are booming — fully recovered. It’s the human desire to connect rather than work remotely. This is good for us because conferences are typically held in the off-season and book a year or two in advance. Vacation tourism is a last-minute thing.” He adds: “One positive did come from the pandemic. Locals, especially local businesses, appreciate tourism more than ever.”

TOURISM PREDICTIONS  There will be an increasing emphasis on sustainability, which Nursey calls “going clean and green.” From January 21 to 24, 2024, Victoria will play host to Impact 2024, a global summit on travel and tourism sustainability with topics such as the circular economy and women entrepreneurs in tourism.

Explore Songhees, which provides canoeing and walking tours of the Inner Harbour, is part of a growing trend in Indigenous tourism.

 Y YJ will expand and improve to reconnect routes that were lost during the pandemic. The airport authority has an ambitious plan to extend runways and increase amenities. There’s even a 129-room hotel planned for early 2025. In fact, Nursey says, there are five new hotels in the pipeline locally.  Indigenous tourism will be an important trend. The local, Indigenous-owned Explore Songhees is one such operator, providing walking and canoe tours of Victoria's Inner Harbour through the lens of history, truth and reconciliation.

REAL ESTATE

First, the bad news. According to a new survey by online mortgage marketplace ratefilter.ca, Canadians spend an average of 37 per cent of their pre-tax income on housing, with 62 per cent of us exceeding the Canadian Mortgage and Housing Corporation guideline of spending no more than 30 per cent of income on housing. The good news for Victoria homebuyers is that inventory is surging in some of the region’s most attractive markets. Likewise, according to CMHC, six per cent of homeowners say they plan to sell in the next 12 months, and 20 per cent in the next five years. But rising mortgage rates are preventing buyers from taking advantage of this higher inventory. Clay Jarvis is the mortgage and real estate expert for NerdWallet Canada; Graden Sol is the chair of the Victoria Real Estate Board. Here are some of their predictions for buyers, sellers and renters in the year ahead:

Buyers

“Look at the markets that are doing well — Alberta, Saskatchewan, New Brunswick, Newfoundland — theyʼre places where buyers can use low home prices to absorb high mortgage rates,” says Jarvis. “Buyers in B.C. donʼt have that luxury, and wonʼt in 2024.” The last time the B.C. real estate market picked up, in late spring/early summer of 2023, buyers could 32

D O U G L AS

still lock into fixed rates south of five per cent. Once rates get that low again, buyers could see the market turn on a dime. When will that be? The BC Real Estate Association recently released its rate forecast, and it doesn’t see rates sinking below five per cent before late 2024. That doesn’t mean the market will remain on ice for an entire year. Demand is too high, the fear of missing out is too strong and well-capitalized buyers will find ways to adjust. First-timers, though, will see their share of the market continue to dwindle.

Sellers

Sellers could find themselves in an awkward situation while mortgage rates stay high. “High rates don’t just make it harder for homeowners to sell, they also make it harder to purchase that next property,” says Sol. But that means homeowners also have to prepare for selling into a buyers’ market, which Victoria hasn’t seen in a long time. “They’ll have to price their properties for 2024, not 2021,” says Jarvis.

Renters

The provincial government is bending over backward to increase rental supply by passing the Housing Supply Act, increasing secondary suites and clamping down on short-term rentals. But those measures aren’t likely to make renting significantly more affordable in 2024. There’s just too much demand for so little supply.

Renting vs. buying: Which is better?

Likely most people who could afford to buy a home

Clay Jarvis, NerdWallet Canada, mortgage and real estate expert

and not sacrifice their entire lifestyle to make it happen wouldn’t think twice. But buying a home at today’s prices is a colossal challenge for many people who have to plough their life savings into a mortgage, then scrimp and save for 25 years to pay it off. It makes sense that they find renting more comfortable. At the same time, owning a home is also a reliably appreciating investment. There arenʼt as many financial benefits to renting, especially if youʼre paying through the nose every month. If renting does save a person money, then some of those savings should be put to work in the form of long-term investments — GICs, bonds, RRSPs, TFSAs or, to keep the dream of homeownership alive, a First Home Savings Account.

REAL ESTATE PREDICTIONS  Mercifully, supply is starting to build in Victoria, which should make finding a new place to live in 2024 a bit easier, and may help soften prices a little later in the year.  Mortgage rates have flattened, and are expected to dip slightly in the second half of 2024.  With Canada’s ambitious immigration targets, and the high number of renters who can’t afford to purchase homes, the pressure on Victoria’s rental market is only going to increase.

A holiday to

remember!

We are excited to unveil our calendar of festive seasonal activities and events to complement the luxurious and relaxing experiences offered at Victoria’s landmark seaside hotel.

Returning to the Oak Bay Beach Hotel this winter season is our iconic Holiday Movie Nights, Christmas Day Brunch, Christmas Dinner, Breakfast with Santa, and annual New Year’s Eve Dinner. The Hotel is sure to be the perfect antidote for any stress the holiday rush may bring, both for guests and locals alike. Join us for the most magical of celebrations at oakbaybeachhotel.com oakbaybeachhotel Artwork by Janice Hildybrant

D O U G L AS

LOCAL GOVERNMENT

All politics is local, and local politics directly affects business on every level from building permits to environmental codes to customer parking to staff housing. Maja Tait knows this well. She is the longestserving mayor of Sooke, vice chair of the Capital Regional District and serves on a dozen other committees, from Indigenous treaty advisories to regional transportation. Last summer, Tait officially became the federal NDP candidate for EsquimaltSaanich-Sooke. So when she discusses local and regional issues in Greater Victoria, she knows whereof she speaks. A particular interest of Tait’s — and a burning issue in Greater Victoria — is housing. Through the Housing Supply Act, under direction from the Province, several municipalities are expected to increase the local housing supply in 2024, especially affordable housing, the shortage of which has been a significant factor in the ongoing labour shortage. Tait says that, while the targets and details have not been released, councils like Sooke’s have jumped the gun by streamlining the approval process, particularly building permits. But Sooke is only one of the 13 municipalities in the Capital Regional District, the regional government that also oversees 11 First Nations territories, three electoral districts and some 440,000 people, including those in unincorporated communities like Salt Spring Island. According to the CRD, common issues voiced include: housing, health care, agriculture, sustainability, homelessness, preservation, transportation and quality of life. But the CRD also deals with everything from algal bloom on Elk Lake to playground restoration. The authority has no fewer than 30 capital projects on the go for 2024, and some 32 initiatives. Among them is the revitalization of the downtown core, starting with a facelift for Centennial Park Square. The work would be phased and begin with renovating the central plaza, and replacing the fountain and monoliths with a new splash park and landscaping. The initiative is a priority in the plan to update parks citywide. There is also the proposed redevelopment for Village on the Green, a Capital Region Housing Corporation complex located in Fernwood. It would see the number of homes on site increase from 38 to 140 units of affordable housing, at a proposed budget of $65 million. And the CRD is developing the Foodlands Access Program to support farm businesses. Historically, the Saanich Peninsula was the breadbasket of Victoria. But local food and agricultural production faces challenges, including the loss of farmland, cost of operation, aging farmers and rising food prices. CRD is developing a Foodlands Access Program to support young farmers by facilitating affordable access to productive farmland. ` B.C. Minister Brenda Bailey’s ambitious portfolio is Jobs, Economic Development and Innovation. She says her ministry is “charged with keeping our economy strong.” She points to two indicators in particular. “In the face of inflation our GDP is the strongest in Canada, and unemployment is 5.4 per 34

D O U G L AS

Brenda Bailey, B.C. Minister of Jobs, Economic Development and Innovation

cent.” In addition, B.C. has become the technology capital of Canada, and is tied with Austin, Texas, in North America. On the jobs front, Bailey references the Future Skills program, funded at $450 million over three years. And the Province’s recent Housing Act, she says, is a response to the current crisis in real estate prices and availability by streamlining the permitting process and clamping down on short-term rentals. In a recent study by Coast Capital Savings, Victorians say that the most important issues facing Greater Victoria are: housing (69 per cent); the cost of living (also 69 per cent); and health care (64 per cent). (The top-ranked features were our natural environment, climate and parks.) So, based on all of the above, the conclusion for the “best city in the world” is this: Don’t rest on its laurels.

LOCAL GOVERNMENT PREDICTIONS  Housing will be the top priority for government in the year ahead — not just locally, but provincially and nationally — with health care and the cost of living close behind.  “Collaboration” will be the catchphrase of 2024, with governments at all levels consulting and/or partnering with local groups such as Vancouver Island Economic Alliance, South Island Prosperity Partnership and the area’s 11 First Nations to leverage resources and talent.

Fernwood’s Village on the Green will be redeveloped by the CRD into 140 units of affordable housing, to the tune of $65 million.

 Despite talk of amalgamating some or all of Greater Victoria’s 13 local municipalities, it won’t happen in 2024, or anytime soon. Interestingly, some Victoria icons such as the Royal Jubilee Hospital and UVic already straddle more than one community.

TECHNOLOGY

From gaming to aerospace to software development, tech is Victoria’s largest private sector industry. More than 1,000 local companies generate over $4 billion in annual revenue. Among the companies in operation here, some have seen incredible success. In 2021, for example, Canon bought semiconductor producer Redlen for $341 million. And three companies — background screener Certn, cloud solutions provider Premier Cloud and solar-power lighting manufacturer First Light Technologies — ranked on the Globe and Mail’s list of Canada’s top-growing businesses. Certn alone had a staggering 2,000-per-cent growth in 2023. But despite the success of Victoria’s tech sector, it faces obstacles, some of which aren’t unique to the industry. “I do hear from companies that it is harder to attract and retain talent than it used to be because of [housing] affordability and availability,” says Dan Gunn, CEO of the Victoria Innovation, Advanced Technology & Entrepreneurship Council, which advocates for some 360 tech companies on the South Island. Overall, however, he thinks the industry is in a good place. Compared to tech hubs like Vancouver, “We’re a bit more of a slow-andsteady-wins-the-race community,” says Gunn. “We’re not about chasing the flavour of the day; we’re about building strong, capable, world-crushing companies.” And Gunn has high hopes for tech here: “I think we’ll be as much as twice the size as we are by 2030, putting us over $10 billion in revenue.” Though VIATEC hasn’t released an economic impact study since 2018, it has seen strong indications that the industry is on track to reach its ambitious 2030 goal of $10 billion. Overall, member companies’ valuations, employee numbers and revenues have risen dramatically even during the pandemic. The number of business acquisitions has also increased, and deals are bigger than ever. “It used to be that if you sold a

TECH PREDICTIONS  The local tech community expects to grow by at least $500 million in 2024, and close to $5 billion in total revenue.  Artificial intelligence will become mainstream in 2024. You may ask: “How will AI impact my business?” For starters, it can help design and produce products, and provide more accurate accounting and financial data.  A s a culture, tech is the sector that depends most on hybrid and remote workers. In 2024, about two-thirds of programmers, designers and producers will work from home (or a beach in Mexico).

company for $5 million, that was a big deal,” says Gunn. “Now we’re seeing companies sell for half a billion dollars.”

CONSTRUCTION Dan Gunn, VIATEC, CEO

The construction industry has been a pillar of the Canadian economy for more than a century. Today, B.C. has close to 150,000 small and medium enterprises in the industry, employing about a million workers. However, the construction sector has been slow to embrace change, says Rory Kumala, CEO of the Vancouver Island Construction Association. As a result, it’s missing out on opportunities and exposing itself to competitive

The first internet provider you’ll actually like. We know, we know. You have your doubts and that’s fair. When it comes to internet companies in Canada, the bar is pretty low. But that’s what makes us, well us: we actually give a damn. Term Contracts. Nope. Shifty pricing. Out. If you’re looking for the “cheapest”, you won’t find it here. We’re all about fair, sustainably priced internet.

Come say hi.

oxio.ca

D O U G L AS

Business Starts Here. The Business Hub at City Hall Open M – F, 8:30 a.m. – 4:30 p.m. 1 Centennial Square, Victoria 250.361.0629 bizhub@victoria.ca victoria.ca/bizhub

Skilled technicians, reliable support We manage all of your company’s IT infrastructure with thorough, professional, in-person and cloud services — all for one simple monthly fee.

Rory Kumala, Vancouver Island Construction Association, CEO

Simplify your IT infrastructure Find out how with a free 15-minute consultation.

612 Boleskine Road www.westcom.it

D O U G L AS

threats. Some other challenges the sector will face in 2024: What and where to build: The COVID pandemic has permanently changed work patterns. Demand for commercial real estate will continue to decrease as remote and hybrid work become the norm. Meanwhile, people are seeking more space where they live to accommodate home offices and aging family members. And layouts may need to be rethought to make permanent space for physical distancing. Adapting to climate change: According to the World Economic Forum, construction is the planet’s largest consumer of resources and raw materials. Buildings are responsible for 25 to 40 per cent of global energy use and therefore are a huge source of greenhouse-gas emissions. Sustainability will be an important focus for the industry in the future, including the use of new materials and processes to reduce environmental impacts. At the same time, the industry will have to make buildings and other infrastructure more resilient to withstand the higher frequency of natural disasters caused by climate change. Incorporating new technology: The construction industry has been hesitant about adopting new technologies and, as a result, productivity has stagnated. Incorporating more technology will not only enhance quality and safety but also help to mitigate labour shortages. Smalland medium-sized businesses with limited resources can gain access to technology through partnerships with larger companies or by sharing equipment with other smaller firms. As with manufacturing, construction companies will have to seek out employees

778-401-6160 info@westcom.it

Construction in Greater Victoria, like this new residence at UVic, has slowed. But local municipalities are trying to streamline the permitting process, and the Province is encouraging affordable housing over shortterm rentals.

with the skills to work with new technologies, and retrain their current workers. This is a tough challenge because the competition for tech talent will be particularly high in 2024. The shrinking workforce: Finally, there is the matter of a shrinking workforce due to retirement and the lure of “softer” industries. In the next year, thousands of skilled workers will leave the industry. Organizations like the Vancouver Island Construction Association and institutions like Camosun College believe they have an answer: more women in the trades. At present, less than five per cent of skilled workers on job sites are women. Karen Dearlove, executive director for the BC Centre for Women in the Trades, would like to see it double in 2024.

CONSTRUCTION PREDICTIONS  Because of retiring skilled workers, more and more young people — and women — will enter the trades next year, but it will take them up to 10 years to become truly skilled.  More municipalities will look to places like Langford as an example for its streamlined permitting process, cutting construction schedules from months to weeks.

JEFFREY BOSEDET/DOUGLAS MAGAZINE

 In 2024, more builders large and small will embrace technology — from 3D printers to drones — to compensate for the dwindling pool of skilled workers.

MAKE 2024 YOUR YEAR OF STYLE

534 Yates St. 250-384-2848 Uptown Blvd. 778-432-2848 outlooksformen.com

D O U G L AS

Gift GUIDE

THE

perfect gift DOES EXIST!

Searching for the perfect gift for that hard-to-buy-for guy? Check out our extensive selection of menswear and unique accessories. OUTLOOKS FOR MEN 534 Yates Street and Uptown outlooksformen.com 250-384-2848

This holiday season, celebrate with Sea Cider! Purchase a case of Sparkling Cider or Temperance (non-alcoholic) and receive a special gift! Contact orders@seacider.ca for details. SEA CIDER FARM & CIDERHOUSE

2487 Mount Saint Michael Road, Saanichton 250-544-4824 seacider.ca

Gift an experience to remember ... with Inn at Laurel Point Gift Cards. Treat family and friends to the perfect present — from dinner, to a well-deserved break. INN AT LAUREL POINT

680 Montreal Street 250-386-8721 shop.laurelpoint.com

Perfect for the coniferous rainforest environment we love to go hiking in! Protect your max-sized phone, cards and cash with a waterresistant leather Bellroy wallet. ADVENTURE CLOTHING 560 Yates Street 250-590-6381 adventureclothing.ca

Let your loved one choose their gift — a cozy getaway, a day at the spa, a fireside meal or a shopping spree at our gift shop. Our gift cards are redeemable anywhere at Tigh-Na-Mara Spa Resort. Purchase online, by phone or in person. Happy holidays! TIGH-NA-MARA SEASIDE SPA RESORT 250-248-2072 tigh-na-mara.com

Stylish in any kitchen! Our AXIA Vargen & Thor salt and pepper sets from Sweden have large twist units so they are easy to use. Durable grinders adjust the fineness of grains.

Whether from our kitchen, bakery, chocolatier, brewery, cidery, distillery, sparkling mineral waters or craft soda works, Spinnakers Provisions has something for every taste and occasion. SPINNAKERS BREWPUB & GUESTHOUSES 308 Catherine Street

PHARMASAVE BROADMEAD 310-777 Royal Oak Drive pharmasavebroadmead.com

Love the Royal BC Museum and IMAX® Victoria? Enjoy 12 months of unlimited access to captivating exhibitions and awe-inspiring IMAX® films plus exclusive perks. Learn more at rbcm.ca/combo-pass ROYAL BC MUSEUM

675 Belleville Street 250-356-7226 rbcm.ca/combo-pass

Show your love with this gorgeous 18K white and yellow gold, double-heart diamond ring. Includes Canadian diamond certificate with unique laser inscription number. Part of Lugaro’s You and Me “Toi et Moi” Collection. LUGARO

1102 Government Street lugaro.com

Looking for a truly unique gift? Find our best deals of the year during our Christmas sale! Save on floats, massage and our new sauna/ cold plunge. FLOAT HOUSE VICTORIA

662 Herald Street 778-433-3166

FLOAT HOUSE WESTSHORE

106-2871 Jacklin Road 778-433-6655 floathousevictoria.com

Give the gift of relaxation this holiday season and treat your loved ones to a rejuvenating spa escape with an Amatista Spa gift card. AMATISTA SPA AT THE WESTIN BEAR MOUNTAIN RESORT 1999 Country Club Way, Langford 250-391-3705 amatistaspa.ca

Foodpreneurs are

Tipping The Scale Local farmers and food entrepreneurs have a new home in the city: two commercial kitchens to develop, grow and expand their craft-food businesses. BY CINDA CHAVICH

itchen Connect is the latest piece in the local food security puzzle, a commissary kitchen where foodpreneurs can rent space to create a variety of value-added food products, from soups and sauces to meal kits. “That’s the biggest piece that differentiates us from other commissary kitchens,” says operations manager Kira Selah. “We have the traditional commercial equipment, but we also have all this processing equipment, and that’s what is going to allow people to scale their businesses up.” This is the first commissary in the region with the infrastructure in place to produce hazard analysis and critical control points certified products, she says, noting HACCP certification is a requirement for food processors wishing to sell their products through larger retailers. “It’s all part of our integrated food hub. FarmHub distributes food from local farmers, and now we have the kitchen to bring in the processing power.” Kitchen Connect falls under the Victoria Community Food Hub Society’s umbrella, a community-based charity that also oversees the South Island FarmHub. The pandemic pushed both projects forward, with the FarmHub launching in 2020, a rapid response to the pressures farmers faced when restaurants suddenly closed and sales dried up. FarmHub gathers food from local farms, operates an online retail market and delivery service, acts as a wholesale distributor and offers affordable local food to schools and charities through a Farm Bucks subsidy program. The FarmHub warehouse is literally next door to Kitchen Connect, which means foodpreneurs can easily order and receive raw materials from more than 30 local farms for use in their products, right in the same facility. Kitchen Connect provides commercial kitchen space for small businesses and farmers, with a mandate to foster the local food economy and offer business development, training and support to charities and community groups, too. And with other food nonprofits in the building — notably the Food Security Distribution Centre, run by The Mustard Seed and Food Share Network, to

D O U G L AS

JEFFREY BOSEDET/DOUGLAS MAGAZINE

Facilities for all

Rockin’ the Farm by Liam Razzell

When it comes to feeding the foodpreneurs, it’s Farm or Die.

Operations manager Kira Selah is surrounded by Kitchen Connect’s gleaming stainless processing equipment. The commissary is equipped to produce everything from granola to hummus.

Many foodpreneurs rely on local farmers for sustainable, organic produce. In 2018, two musician friends with zero agricultural background founded Farm or Die to tap into that market. Their story is a testament to the hard work involved in keeping people fed. “Rock ’n’ roll never sleeps,” says Garrett Simon, who met his friend, former roommate and now business partner Ben Kjernisted while they were working in Vancouver’s vibrant music industry, mostly setting up concerts. “Ben and I got into gardening as a way to keep the soul and mind healthy.” Together, they grew tomatoes, squash, cucumbers, beans and microgreens, while contemplating the possibility of starting their own urban agriculture business. Later, on a five-acre plot in North Saanich, they did just that, with the goal of improving local food security. And so Farm or Die was born. The first few years of their entrepreneurship weren’t easy. At one point, they incurred a massive loss when worms destroyed over an acre of vegetables. And to cut down on overhead, Simon contributed thousands of hours of unpaid labour. “The toughest problem that we had to work through was the uncertainty,” says Simon. “Even if you fully believe in a project, it takes a while to convince everyone else.” But their determination has paid off. Simon says the food and farming community is starting to appreciate their goal, adding that, “This is the first year our business is really making money.”

D O U G L AS

Food Prep and Processing Victoria has always been a hotbed of entrepreneurial spirit and a city that’s famous for its local food products — whether dumplings, samosas, nut butters, bean dip, hummus, tortillas, granola, vegan cheeses or artisan crackers. Many of these foodpreneurs started small, bouncing between full-time jobs, after-hours kitchens and farmersʼ markets, before eventually building their own commercial kitchens. Securing commercial kitchen space has long been difficult for small food

producers, and the demand for commissary kitchens has skyrocketed in recent years as restaurants, bakeries and other food businesses struggle with high rents and startup costs while customers shift from dining out to ordering in. Shared commercial kitchen space lets restaurants and grocers offer takeout options and branded products, gives food trucks and caterers prep areas, and lets home cooks launch their own small businesses. When we met in early August, Selah, a Red Seal chef and trainer with years of industry experience, was completing the permitting process for the new Kitchen

Ethical, dedicated, reliable REALTOR®

Every day your Realtor goes to work, for you. vreb.org

D O U G L AS

JEFFREY BOSEDET/DOUGLAS MAGAZINE

rescue and redistribute food — it’s well positioned for collaboration.

Local farms and “aggregators” like South Island FarmHub supply foodpreneurs with fresh local produce. FarmHub currently works with more than 30 local farms.

Connect commissary in Vic West and touring prospective clients around the impressive 2,150-square-foot space. She had already fielded inquiries from more than 50 potential clients, from foodtruck operators to farmers looking for space to wash and package fresh produce or create value-added products. While the kitchen is not designed to accommodate pop-up restaurants or takeout/delivery services, Selah says she expects to have regular anchor tenants and bookings from caterers and seasonal small businesses when the kitchen is fully operational. The kitchen has gleaming stainless-steel prep tables, large commercial stoves, freezers, washing stations and lockers for dry storage. Six food production and processing lines are available, with rental rates starting at $35 per hour, plus additional fees for specialized processing equipment and cold storage. But unlike most commissary kitchens, the Kitchen Connect space has been designed specifically for food processing, with some impressive equipment not found elsewhere. There is a Kreuzmayr Chamber Pasteurizer that can pasteurize 300 one-litre containers (from yogurt to jarred sauces), a Silverson Blending Station (like a giant emulsifying blender for making up to 300 litres of hummus or salad dressing) and a Unifiller machine to neatly portion and

So You Want to Be a Foodpreneur

COHO MMISSARY

The path to success in the craft-food business doesn’t come with a road map. But if you're looking to start your foodpreneur journey, here are a few key pointers:

Cafe Malabar was born in the Victoria Public Market’s Coho Commissary. From left, Vaidehi, Karma Tenpa (co-owner), Tenzin (sous chef) and Kiran Kolathodan (co-owner).

fill containers. There are plans to install a vacuum sealer for Phase 2 of the project and, if demand warrants, a canning or bottling line. “With this equipment, a small hummus producer could scale up from 100 litres to 300 litres in the same amount of time,” Selah says. Foodpreneurs can buy an optional full-time, part-time or seasonal membership that offers priority booking and secured shifts, a 25-percent discount on equipment and storage fees, and access to bulk purchasing and sales. The shared kitchen is also available to charities and community groups, at subsidized rates, says Selah, who envisions families catering reunions and weddings or groups processing food for fundraisers. “Folks can absolutely rent the space for private use — as a charity, we encourage community groups,” she adds.

The Rise of For-Profit Kitchens Beyond the non-profit model, there are other companies offering commercial kitchen space, letting entrepreneurs test drive their products and build a customer base before branching out into a bricks-and-mortar business. Chefs Kiran Kolathodan and Karma Tenpa are hoping that launching their new Cafe Malabar from the Coho Commissary kitchen in the Victoria Public Market will help build a following and enough investment to open a stand-alone restaurant. “We knew about Coho Commissary from Vancouver,” says Kolathodan of the business that has six mainland locations

and opened its Victoria kitchen in 2022. “We chose this space to start our business because it’s a good place to showcase our food.” The Coho Commissary operates 24/7 and accommodates a range of food entrepreneurs including Circle Canning, run by chefs Paige Robinson and David Mincey. Mincey says the kitchen is a good fit for producing their pickles and condiments, especially during their busy summer canning season. “The big advantage is being able to book the time you need, when you need it,” he says, noting there has long been a chronic shortage of commercial kitchen space in Victoria. “It’s good to have a new facility,” he says. “It’s giving people more options.”

Growing the Local Food Scene Kitchen Connect is just one of a dozen regional food processing and innovation hubs to open across the province, part of the B.C. Ministry of Agriculture’s Food Hub Network plan to “encourage greater food security and local business growth.” And whether it helps to nurture new ideas or keep old ones alive, Kitchen Connect and Coho Commissary may be the missing links that help get entrepreneurial dreams off the ground and their food products out to a wider world. “We want to be the stepping stone between the farmers market and getting into the supermarket, from the food truck to the restaurant,” says Selah. “We want people to grow out of this space.” •

 Find a niche. Study current food trends to help formulate the perfect recipe, whether jarred pickles, gluten-free pastries or gourmet chocolate, and also a novel take on that product. Leverage social media — one of the best ways to track changing food trends is via Instagram and Facebook.  Craft a USP. Create a unique selling proposition that will make your product stand out from the crowd. Is your target audience male or female, young or old? Where do they live? Where do they shop for food?  Study your competition. Identify other foodpreneurs with similar offerings and sample their products, whether found in markets, specialty stores or supermarkets. Most food producers are happy to talk about their own journey and the lessons they’ve learned. You’re not there to copy them, you want to stand apart.  Price, packaging and prototype. This trifecta holds

the key to success. Once you have formulated a recipe, tastings will help assess if your food is as good as you think it is. Invite friends and family and ask them to be honest (if not brutal) with their criticism. Once you’ve fine-tuned your product, itʼs price and packaging that will make it sell. A quick market study and conversations with retailers will help nail a price that’s neither too high nor too low.

D O U G L AS

THE PRICE IS RIGHT

or is it?

D O U G L AS

Pricing can keep you up at night. Here are the five most common strategies to find that elusive “sweet spot.” BY KEN WINCHESTER

2. Competitive pricing hether a product or service, pricing your “If I’m selling a product that’s similar to others, like offer too low leaves money on the table. peanut butter or shampoo,” says Dolansky, “part of my Price it too high, and you can say goodbye job is making sure I know what my competitors are to sales that could have made your year. doing, and make any necessary adjustments.” That’s Finding the ideal price means choosing a strategy competitive pricing strategy in a nutshell. that’s appropriate for your company’s circumstances. You can take one of several approaches with this “How much the customer is willing to pay for the strategy: co-operative, aggressive or dismissive. product has very little to do with the seller’s cost and has In co-operative pricing, you simply match what your very much to do with how much they value the product competitor is doing. A competitor’s one-dollar increase or service they’re buying,” says Eric Dolansky, associate leads you to hike your price by a dollar. Their two-dollar professor of marketing at Brock University in St. price cut leads to the same on your part. By doing this, Catharines, Ont., writing for the Business Development you’re maintaining the status quo. Bank of Canada. Co-operative pricing is similar So how do you get to an ideal to the way gas stations price their price, the “sweet spot” that will products. The weakness with this deliver the most profit given your “How much the approach, Dolansky says, “is that it circumstances? Here are five customer is willing to leaves you vulnerable to not making strategies: optimal decisions for yourself pay for the product because you’re too focused on what 1. Cost-plus pricing has very little to others are doing.” Many businesspeople and On the other hand, “In aggressive consumers think that cost-plus do with the seller’s pricing, you’re saying ‘If you raise pricing, or markup pricing, is the your price, I’ll keep mine the same,’” cost and has very only way to go. This strategy brings says Dolansky. “And if you lower together all the costs for the unit much to do with how your price, I’m going to lower mine to be sold, with a fixed percentage by more. You’re trying to increase much they value the added onto the subtotal. the distance between you and Retailers, manufacturers, product or service your competitor. You’re saying that restaurants and distributors often whatever the other one does, they they’re buying.” find cost-plus pricing to be a better not mess with your prices — Eric Dolansky, associate professor simple, time-saving way to price. or it will get a whole lot worse for of marketing at Brock University Let’s say you own a hardware them.” store offering a huge inventory of Clearly, this approach is not for items. It wouldn’t be an effective everybody. A business that’s pricing use of your time to analyze the value to the consumer of aggressively needs to be flying above the competition, each nut, bolt and washer. with healthy margins it can cut into. The most likely Ignore that 80 per cent of your inventory and instead trend for this strategy is a progressive lowering of prices. look to the value of the 20 per cent that really contributes But if sales volume dips, the company risks running into to the bottom line, which may be items like power tools financial trouble. or air compressors. Analyzing their value and pricing If you lead your market and are selling a premium becomes a more worthwhile exercise. product or service, a dismissive pricing approach may The major drawback of cost-plus pricing is that the be an option. In such an approach, you price as you customer is not taken into consideration. If you’re selling wish and do not react to what your competitors are insect repellent, one bug-filled summer can trigger huge doing. In fact, ignoring them can increase the size of the demand and retail stockouts. As a producer of such protective moat around your market leadership. products, you can stick to your usual cost-plus pricing Is this approach sustainable? It is, if you’re confident and lose out on potential profits or price your goods that you understand your customer well, that your based on customer demand for your product. pricing reflects the value and that the information on

D O U G L AS

RBC Dominion Securities Inc.

Wealth management advice you can trust

DO THE MATH 1 - CALCULATE YOUR DIRECT COST Direct cost = Cost of raw materials + Labour costs Cost of raw materials includes duty and freight, or shipping charges.

2- CALCULATE YOUR COST OF GOODS SOLD OR COST OF SALES The cost of producing a product or providing a service.

Cost of goods sold = Raw material costs + Cost of labour + Amortization expenses + Factory overhead Cost of sales = Cost of products + Cost of labour + Supplies + Amortization expenses + Facility overhead Gross profit = Total revenue - Cost of goods sold

3. CALCULATE YOUR BREAK-EVEN POINT

The amount of sales dollars you need to generate to recover all your expenses and have a profit of $0.

Break-even point =

Building wealth begins with building relationships. Let’s work together to achieve your goals.

Indirect fixed costs Gross margin

4. DETERMINE YOUR MARKUP

The markup is a percentage of cost of goods sold or cost of sales. It ensures that a company receives a high enough gross or profit margin to be able to pay for its indirect fixed costs while also earning a target profit.

Markup (%) =

Jeff Cohen, BA, CFP, FCSI Investment Advisor 250-356-3968 jeff.cohen@rbc.com

Price - Cost of goods sold per unit x 100 Cost of goods sold per unit

5. REACH YOUR TARGETED OPERATION PROFIT

If the markup doesn’t reach the targeted operation profit, the price needs to be recalculated.

New Price = (Cost of goods sold + Overhead cost + Target operating profit) Anticipated volume Source: BDC.ca

RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2023 RBC Dominion Securities Inc. All rights reserved. 23_90851_XGB_001

D O U G L AS

which you base these beliefs is sound. On the flip side, this confidence may be misplaced, which is dismissive pricing’s Achilles heel. By ignoring competitors, you may be vulnerable to surprises in the market.

3. Price skimming

Companies use price skimming when they’re introducing innovative new products that

have little or no competition. They charge a high price at first, then lower it over time. Think of smartphones. A manufacturer that launches a new type of smartphone can set a high price to tap into a market of tech enthusiasts (early adopters). The high price helps the business recoup some of its development costs. Then, as the early-adopter market becomes saturated and sales dip, the manufacturer

lowers the price to reach a more pricesensitive segment of the market. Dolansky says the manufacturer is “betting that the product will be desired in the marketplace long enough for the business to execute its skimming strategy.” This bet may or may not pay off. Over time, the manufacturer risks the entry of copycat products introduced at a lower price. There is another earlier risk, at the product launch. It’s there that the manufacturer needs to demonstrate the value of the high-priced “hot new thing” to early adopters. That kind of success is not a given.

4. Penetration pricing Penetration pricing makes sense when you’re setting a low price early on to quickly build a large customer base. For example, in a market with similar products and customers sensitive to price, a significantly lower price can make your product stand out. You can motivate customers to switch brands and build demand for your product. As a result, that increase in sales may bring economies of scale and reduce your unit cost. A company may decide to use penetration pricing to establish a technology standard. Some video console makers (Nintendo, PlayStation and Xbox) took this approach, offering low prices for their machines because most of the money they made was not from the console, but from the games. “Business people think ‘If I sell more, I'll be more successful,’ ” says Dolansky. “That’s only true if your margins are sufficiently high. It’s important to remember that penetration pricing serves a strategic need, that there is a reason why you benefit from greater volumes in and of themselves, so that selling more units helps attain your goal of making the most profit.” The risks of penetration pricing? Ask yourself if you can sustain this pricing for the long term without endangering your business.

compete on low costs and low prices. For entrepreneurs offering products that stand out in the market — for example, artisanal goods, high-tech products or unique services — value-based pricing will help better convey the uniqueness they’re offering. Pricing is one of the most important and visible aspects of your market strategy, which also includes product, promotion and placement (the classic four “Ps” of marketing). Some pundits add three more Ps to the marketing mix: people, positioning and packaging. The price you offer must be consistent with how you would like to be seen among

your competitors, and consistent with your promotional messages, your packaging and types of stores that your product is in. Let’s say your product is a premium olive oil. It needs to have a premium price that reflects the refined packaging, distribution in better grocery stores and upscale promotional messages. All pricing strategies are double-edged swords. What attracts some customers will turn off others. You cannot be all things to all people. Just remember that you want the customer to buy your product, which is why you need a strategy that’s appropriate to your target market. •

SERVICES ESTATE PLANNING

Wills and Powers of Attorney REAL ESTATE

Support for Buyers, Sellers, and Borrowers NOTARIZATIONS

Canada, USA, and International Documents

5. Value-based pricing In value-based pricing, the perceived value to the customer is primarily based on how well the product/service is suited to the needs and wants of each customer. Applying value-based pricing can gain an advantage over its competitors in a couple of ways:  The price is a better fit with the customer’s perspective.  The pricing brings more profit, allowing you to acquire more resources and grow your business. When a price doesn’t work, the answer isn’t just to lower it, but to determine how it can better match customer value. That may mean altering the product to better suit the market. In an ideal world, all entrepreneurs would use value-based pricing. But businesses that sell a commodity , such as warehousing or plain white T-shirts, are more likely to

Beverly’s empathy and respect for her clients make all the difference. Coupled with her education (a Master’s Degree in Applied Legal Studies) and experience (having directly served over 15,000 people), Beverly Carter is so much more than just a woman with a stamp.

Earning your stamp of approval. 240-2950 Douglas Street, Victoria, B.C.

250-383-4100 carternotary.com

D O U G L AS

LIFE + STYLE

MAKE THE RIGHT CALL Looking to streamline your business? There’s an app for that, starting with these five. The right business app can streamline operations, increase efficiency and enhance productivity — all on the go. Whether you’re managing payments, recording expenses, tracking mileage, scanning receipts or scheduling appointments, there’s an app tailored to your needs.

 ASANA is a kind of Swiss Army knife for task and team management. It features dedicated project workspaces and can manage several clients and groups at the same time. The app is designed as a start-to-finish program to help teams spend less time writing emails, sitting in meetings and working on assigned tasks.

Business

 SQUARE is a great point-of-purchase option for businesses that are on a budget because it has no monthly fee — just pay the processing fee of 2.65 per cent per transaction (0.75 per cent plus seven cents for Interac). It’s portable, simple to use and doesn’t require any training to get started. Take payments in person, over the internet, by phone or at the farmersʼ market.

 SKYPE FOR BUSINESS If you find yourself cobbling together web-conferencing tools, chat clients and Skype to handle your communication needs, then consider Microsoft Skype for Business to simplify your setup. Just donʼt expect a full-fledged VoIP service. It’s easy to use once you navigate the maze of pricing and plan features, and can support up to 250 attendees in a conference setting.

D O U G L AS

 MINIMALIST is a custom home screen that replaces your default home screen. Its clean, intuitive interface is designed to support mindful phone use by directing you to your most productive apps and helping you focus on what matters. If the first thing you reach for in the morning is your phone, then this app is for you.

 SHOEBOXED is a receipt-capturing app with a few nice extras rather than a general purpose document-scanning app. It starts out at a free pricing tier and is meant primarily to help small business owners and employees manage receipts and business cards. It’s dead simple to use and as long as your needs match its features, youʼll be happy.

LIFE + STYLE

EMPRESS FESTIVE VERANDA Who doesn’t like a campfire, especially when you have a lap rug and a beverage in hand? That grande dame, the Fairmont Empress, has been a beloved Victoria watering hole since 1908. And the Veranda, with its stunning view of the Inner Harbour, has long been a favourite summer after-work venue. But the outdoor space has been winterized and transformed into an outdoor lounge featuring signature cocktails (and mocktails) as well as a tasting menu ranging from a classic cheese fondue for two to a platter of pickled local vegetables. The best part, though, is toasting sʼmores over an open fire, with housemade vanilla marshmallows. The Veranda will open Fridays and Saturdays starting November 25, then every night starting December 16.

FROM BEAN TO CUP How to choose the best office coffee machine.

Sorry, but that gleaming Italian espresso machine you see in your favourite coffee shop is just not for the office. Cafés have trained baristas in house; Bob from accounting does not have these skills. So depending on the size of your business, the choice is either to stay simple or automate.

Bodum Eileen French Press

Keurig K-Café

Saeco Aulika Evo Top

The simplest option for a freelancer or small office. Besides looking good, the metal frame protects the glass carafe from breaking, a common complaint with French presses. It brews a wellrounded, smooth cup of coffee and the stainless steel filter is easy to clean. The only downside is that the coffee doesnʼt stay as hot as long compared to a thermal carafe or drip coffee maker with a warming setting.

Like many single-serve “pod” machines, the Keurig K-Café recognizes brew ID pods and recommends curated drink options for that particular pod. But you can also customize brew strength and heat settings. It can brew six- to 12-ounce coffees as well as a concentrated espresso-like shot for lattes or cappuccinos. The built-in milk frother works with whole, skim, almond or soy milk. Thereʼs also a cold froth option for iced drinks. The pods are recyclable.

This is an elegant, high-capacity machine with a one-kilogram bean hopper and four-litre water tank. A direct water hookup is also included. There is an auto foamer (cappuccinatore), or milk can be steamed manually. Like a café machine, it can make everything from oat-milk lattes to herbal tea, and is rated for approximately 100 cups a day. Plus no one has to grow a man bun. D O U G L AS

HUMAN RESSOURCES

INTEL

BUSINESS INTELLIGENCE

“FIT” OVER FACTS Ingrid Vaughan, principal of My Smart HR and founder of the Smart Leadership Academy, provides HR support and leadership coaching to small business owners and managers.

Hiring Part 1: What to know — and ask — as a job seeker. In today’s labour-short climate there are lots of jobs for people who are looking, but most people don’t want any old job. Skills are important and the facts about your particular skill set need to be communicated to potential employers through your resumé. But skills are only part of the picture on both sides of the recruitment equation. Just as employers look for people who will be a good fit for their organization, culture and team, potential employees also need to assess whether a workplace will align with their values and needs, and uphold a culture they are excited to join. When those two things align, it can be a match made in heaven. As a job seeker, how do you go about finding a position that not only leverages your skills but actually “fits” who you are? Here are some strategies to consider.

Know what you want Go into the job-seeking process with clarity about what aspects of a job are most important to you. For example, the commute, the work environment, company history and stability, opportunities for growth and advancement, environmental impact, etc. Identify your top three most important criteria and, as you progress through the process, don’t concede any of them.

To thine own self be true Demonstrate a deep self-awareness of your strengths and weaknesses and consider not only whether you can do the job, but whether you’d like to do the job. So many things outside of skill factor into whether you’ll be happy and fulfilled in a new role. Your personality, communication style, organizational culture and learning and feedback preferences are critical pieces of the “fit” puzzle. Ask about those things and remember that it’s OK to turn down a job offer. You’ll be happier and more successful if you wait for the right opportunity.

Get clear on who inspires you What kinds of leaders inspire you to be your best and motivate you to work hard and contribute 50

D O U G L AS

meaningfully? Create a list of questions to ask your interviewers to see how this company demonstrates leadership and be discerning as you hear their answers. This approach will help you identify a greatfitting employer with leaders who will make coming to work every day a pleasure.

Notice how you’re treated Sometimes the little things speak the loudest. Pay attention to every part of the recruitment process to see the company’s true colours.  How quickly did the employer respond to your questions prior to the interview?  How well did they keep you informed throughout the process?  How were you treated by those who worked at the company when you arrived?  Could you see yourself being happy in the workspace itself?  Is the environment warm and “buzzy” or quiet and serious? The only right answer is the one that feels right to you.

Share control of the interview Job interviews are your opportunity to check out the company as much as they want to assess you. Don’t be afraid to turn the tables. When you are given an opportunity to ask questions, make them worthwhile. Ask questions about the company, job and team, and follow up with “give me an example,” or “tell me about a time.” As you listen, be mindful of how long it takes them to come up with a story or an example and tune in to whether it feels authentic. Evaluate the interview process. Consider how you were treated during the entire interview process. Did your interview get rescheduled three times before finally getting you into the office? Did the interviewers seem engaged and eager to meet you or did they appear distracted and unprepared? When you asked each interviewer specifics about the job and what would be required, were their answers consistent or did they vary greatly? Did you leave with clarity about next steps? What did your gut tell you when you left the room? When companies don’t do the requisite work to find a person who is a right fit for them, they inevitably suffer the consequences: dealing with an unhappy employee who doesn’t make it through probation. As a job seeker, you can suffer the same fate if you aren’t intentional about who you want to work for and what will make a great employment experience for you. Your desires for your next job are important to your well-being (and that of the

Next issue: Hiring, Part 2 — what to look for as a potential employer. A FEW GREAT QUESTIONS TO ASK A PROSPECTIVE EMPLOYER:  If you could describe your corporate culture in three words, what would you say and why?  Whatʼs one thing that's integral to this companyʼs success that an outsider wouldn't know about?  How do I get access to the information I need to be successful in this job?  What kinds of people are successful here? What kinds of people have either fizzled out, failed or left?  How does the company recognize employee accomplishments?  What would a day in the life here look like for me?

PRODUCTIVITY

employer) so don’t compromise. If you use these strategies, you’ll have greater clarity about whether it will be a fit for you when that next job offer comes your way.

Jim Hayhurst is a trusted adviser to purpose-driven organizations and leaders. He is currently active in six companies and social impact projects that elevate Victoria’s reputation as a hub of innovation, collaboration and big thinking.

FORGET FOCUSING ON CHANGE Six things that won’t go out of style next year — or any other year. In a 2007 interview with the Harvard Business Review, Amazon founder Jeff Bezos offered his famous take on predicting the future. “There’s a question that comes up very commonly: ‘What’s going to change in the next five to 10 years?’ But I very rarely get asked ‘What’s not going to change in the next five to 10 years?’ At Amazon we’re always trying to figure that out, because you can really spin up flywheels around those things.” At the time of the interview, Amazon’s revenues were a mere US $20 billion. In 2022, they were more than US $500 billion. While Amazon has been a juggernaut of innovation, Bezos’ insistence on keeping an eye on what’s not going to change has also paid off. His company spun up “flywheels” around things that people never stopped caring about — and ones that Amazon could really drive at scale: selection, low

D O U G L AS

prices and fast delivery. As he went on to tell the HBR (in that now 15-year-old interview), “I can’t imagine that 10 years from now they are going to say, ‘I love Amazon, but if only they could deliver my products a little more slowly.’ ” Even those at the forefront of today’s most disruptive, change-enabling technologies like artificial intelligence recognize that making rifle-shot bets on the future can be a fool’s errand. In 2022, OpenAI CEO Sam Altman took Bezos’ horizon for predicting the future … and blew it wide open: “The stuff that people cared about 50,000 years ago is likely to be the stuff people care about 100 years from now.” So what might that “stuff” be for leaders not interested in building the next Amazon or OpenAI, but still seeking a consistent edge? Turns out, much of it comes down to understanding — or remembering — what has always been our human nature.

Six things the best companies and leaders will still be doing in 2024. And 2124. 1. TALKING TO CUSTOMERS: I recall an investor sharing some pretty sharp feedback with an exceedingly well-prepared team after their pitch: “It seems you’ve mistaken your ‘market research’ data for getting out there and talking to actual people.” Their point? Customer conversations are a gold mine of insight — and should forever be high on any CEO’s duties. Pro tip: Talk less about your company, ask more about their life. As my father always said, “It’s not about our grass seed. It’s about their lawn.”  Who talks to your customers? What questions are they asking? What are you doing with that information? 2. GIVING BACK: The poet Maya Angelou is not a corporate strategy guru, but I think she nailed one of the truths about business when she said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” One of the most effective ways to foster a feeling — both within and about your company — is through strategic and authentic service. Volunteering, donating, advocacy and other forms of community engagement will only become more important as societal challenges mount.  Where and how do you serve your community? What feelings are created through that? 52

D O U G L AS

3. TELLING STORIES WELL AND OFTEN: I’ve had the pleasure of spending time with Zita Cobb, creator of the magnificent Fogo Island Inn in Newfoundland and a relentless thinker and storyteller. Among the many things she has shared with me, was this: “Money follows coherence.” And it’s true about more than just money. As social beings we use stories to make sense of the world. We seek people and institutions whose consistency gives us comfort. A coherent, repeatable story about your company confers trust — and drives loyalty.  What are your stories? Who is telling them? Are they coherent and repeatable? 4. BEING TRANSPARENT: From salary disclosure laws and the rise of B Corps to the Panama Papers and F&ckup Nights, it seems that transparency, openness and humility will continue to have their moment. Companies and leaders who embed transparency in their culture will not completely avoid missteps, but they will accrue valuable forgiveness when mistakes do happen. It will only become easier in the future for the public to assess if your organization is walking the talk — or simply mouthing the lyrics.  Rate your transparency as a leader and as a company. Now ask your employees, shareholders and key customers to do the same. Is there a disconnect? If so, why do you think that is?

GIVE THE GIFT OF TRAVEL — GIFTS MADE TO LAST A LIFETIME.

T R AV E L L I G H T, T R AV E L L I G H T LY, T R AV E L W E L L . 560 Yates Street 250-590-6381 adventureclothing.ca

5. TAKING CARE OF EMPLOYEES: While last on my list, this is number one in my book. We’ve all heard the stats about the cost of replacing great employees versus retaining them in the first place. This will remain an evergreen issue. So, what’s the trick in an ever-changing workplace landscape? Well, take a look at numbers 1 through 4. Now apply those to your employees.  Communicate, foster a culture of giving, furnish them with great stories, and above all else be open and honest when it gets tough. 6. RECOGNIZING THAT CHANGE IS DYNAMIC: Change will happen in your business even if you do nothing to guide it. Employee values, mindset and behaviors have evolved rapidly in the last few years. So leaders are obliged to take a proactive approach to build a healthy, dynamic corporate culture.  Do these things and, no matter what Amazon or AI does, you will be doing things people care about. Which sounds pretty future-proof to me. D O U G L AS

D I D YO U K N O W

Source: VIEA 2023 State of the Island Report

THE STATE OF THE ISLAND BY THE NUMBERS Vancouver Island’s economy is nothing if not diverse. According to the Vancouver Island Economic Alliance (VIEA), key industries include tourism, agriculture, aquaculture, forestry, manufacturing, tech and real estate. The contribution of each of these varies dramatically by region. For example, tourism, forestry and manufacturing are found in all regions, while the tech industry is concentrated in Greater Victoria and Nanaimo. Agriculture is primarily found from the Comox Valley south, while aquaculture thrives on the West Coast and North Island. BY KEN WINCHESTER

GDP

TOURISM

Gross domestic product is a kind of economic gas gauge. B.C.’s GDP grew by 3.6 per cent last year, the highest in Canada. Key growth factors included increased migration, which triggered demand for housing and other services, and the dramatic rebound of tourism.

Tourism is a key measure of Victoria’s economic health. It was among the hardest hit sectors during the pandemic, but has steadily recovered. A bellwether measure of this rebound is airport passengers, which have increased in all four South Island airports.

 GDP growth rate

 Number of airport passengers (Jan-Jun)

10%

2022 6.2%

3.7%

2.8%

-3.1%

2023

621,588 776,218

Victoria

3.6%

-5%

900,503 1,100,967

total

Nanaimo

148,021 183,825

Comox

121,873 127,194 9,021 13,731

Campbell River -10% 2018

2019

2020

2021

2022

500,000

1,000,000

1,500,000

Data not available for North Island communities

HOUSING High interest rates and increased construction costs are expected to limit new construction and flatten high prices in 2024. Meanwhile rental prices remain high on the South Island, and are expected to rise about five per cent in the year ahead.

$652,500 $41,340 Campbell River $805,300 $42,070 Courtenay

$532,600 $37,980

INCOME The so-called living wage on Vancouver Island ranges from $20.26 to $23.53, a significant increase from 2021. Meanwhile, income levels have risen by 16 per cent since 2015. Nanaimo experienced the highest income growth, at 24 per cent.

Port Alberni Median household Income

$880,400 $40,370 Parksville $792,200 Nanaimo $42,180 $771,200 Duncan

Community

Average single-family home price

$39,800 Victoria $1,143,300 $48,050

D O U G L AS

HAPPY HEARTS 1102 GOVERNMENT ST, VICTORIA - 250.382.2040 LUGARO.COM

Electrify your life. 472 kilometres at a time. The pure electric Volvo XC40 Recharge

Available From $59,950* With a range of 472 km, a 4-year scheduled maintenance package included and legendary Volvo safety and quality, the XC40 takes electric driving to a new level. Available for delivery in 30 days with Volvo’s One Price Promise, and eligibility for EV credits of up to $9,000, the future of electric driving starts now. Introducing a simpler way to purchase: Visit Volvo Cars Victoria to learn more about our virtual sales experience and One Price Promise. Available for delivery in

30 days

Up to

472 km

Electric Range

†

EV Credits up to

$9,000

* Vehicle images for illustration purposes only. Retailers are free to set individual prices and charge administration fees, which may change the APR or the price of the vehicle. Available at

price based on the 2024 Volvo XC40 Recharge Core Single Motor SUV with vehicle price of $59,950. Freight & PDI ($2,755), doc ($495), admin ($499), environmental levy ($100), tire levy ($25), PPSA (up to $105), registration, insurance and similar taxes levied on the manufacturer (if charged by the retailer) extra. See Volvo Cars Victoria for full details. Offer is subject to change or cancellation without notice.

† Volvo XC40 Recharge Single Motor, 185kW (248 hp), combined power consumption 16.6 kWh/100 km, electric range: combined up to 472 km, values according to the EPA test cycle.

The actual range, the actual energy consumption and the charging times depend on various factors, such as the outside temperature, the current battery temperature, the charging device and other external factors as well as the condition of the batteries and vehicle. Vehicle certification pending.

§ $9,000 savings based on Federal ZEV credits of up to $5,000 and provincial Go Electric BC credits up to $4,000 (for qualifying customers) for lease, finance & cash purchases of 2024 Volvo XC40 Recharge fully electric models. Vehicles are subject to Volvo Cars Canada’s One Price Promise. Retailers are free to set and charge administration fees, which may change the APR or the price of the vehicle. See Volvo Cars Victoria for full details. Offers subject to change or cancellation without notice. Features, specifications and equipment may vary in Canada. Visit volvocars.ca for more information on Canadian models and features. ©2023 Volvo Car Canada Ltd. Always remember to wear your seat belt. DL4891 #41497

Douglas magazine Dec/Jan 2024

Articles inside

THE 2023 ECOSTAR AWARDS

TURNING REMOTE WORKERS INTO Virtual Gurus

EVEN TUGBOATS ARE GOING GREEN

Inside Sidney’s Amazon Warehouse

What’s Ahead for Victoria Businesses?