So you want to run a huge marketing stunt to get big publicity. . . positive publicity. This new product is really going to change things around. . . even though it's the exact same product you've been selling for years.
You start adverstising the product. It's new, it's great, (it's exactly the same as the product we've been selling for years!). But wait! You have a special offer! Something never thought of before! A discounted price!
So you need to make a bigger splash to get the customers to come in droves (to buy the exact same product you've been selling for years). You go on the the biggest show on tv (market your product on this show and the success is guaranteed!)
So you go on the show and offer your product for free! Lo and behold, the customers come in droves. Suddenly you're thinking, "Oh suck! We're giving away way too much of our product! What were we thinking?! We can't be giving away this much product for free." Truly, I agree. I go to the store and see a boatload of people loading up on the free product. Problem is, once they realize it's exactly the same as the old product they realize there's no big reason to come back and pay for it beyond their usual habit of paying for it.
So you're the Company and you're losing boatloads of money and can't figure out what to do to stop the bleeding. What do you do? Offer a raincheck! Make customers jump through outrageous hoops to get the raincheck. Offer "sincere" apologies but the demand is too overwhelming so the free offer is no longer valid. . . for now. Of course, the vast, vast majority that might've taken advantage of the free product will not jump through all the hoops necessary to get the "rain check", and thus you have just cut a huge liability off the books.
Funny, I walked in to KFC tonight and all I could see were posters everywhere about their new "grilled" chicken and bounteous amounts of grilled chicken for Sale! (I also noted a prominent sign about the availability of a raincheck because they couldn't offer it for free like they had promised on Oprah!) The hoops you have to jump through for the raincheck were truly not worth your time for a $4 meal. Thing is, I did go in time to get the free meal a couple weeks ago. . the grilled chicken is exactly the same as their fried chicken! I checked the calorie count tonight and the difference really isn't that big (after all, in the end you're still eating fast food). So the demand is too overwhelming to give away the supply for free but there is bounteous amounts of supply for sale? That doesn't add up! I guess it's probably a good call to cut off the free coupons because I'm pretty sure they wouldn' t recoup those costs with increased sales of grilled chicken (again, because it's exactly the same as fried chicken). Best option is to just cut the sunk costs and reduce the liability of future free meals.
So what's the lesson of the day? Accountants run the world! :) and chicken tastes like chicken.
Tuesday, May 19, 2009
Wednesday, May 6, 2009
Outliers
Outliers by Malcolm Gladwell is one of the best books I have EVER read. I hope to emphasize the point by noting that I am a reader: I read a lot of books, so I feel like I can say that with some background in the area of those out there who read for enjoyment. Definitely if you dive into the non-fiction realm, which this book is, it is definitely in the top ten and probably in the top five (I'm hesitant to dub it my #1 as I'm on an emotional high after just finishing it, but it may end up there once I let time pass and more perspective develop).
Let's put it this way, I wasn't even a quarter of the way through this book before I got online and ordered his other two books. Generally when I read I get to the end of a chapter before I think about what I read. I found myself putting the book down temporarily on nearly a page by page basis to think about what I had just read, then was excited to pick it back up and see what came next.
Outliers describes the backgrounds, circumstances, and opportunities of successful people. Not only does it take TONS of work to be a true outlier (which he dubs the 10,000 hour rule-very intriguing and I would think is absolutely true) but you have to be extremely fortunate to be born in the right place, at the right time, and grow up under the right circumstances. Unfortunately, I was NOT born at the right time, nor in the right place, and I have not grown up under the right circumstances to be the next Bill Gates or Beatles or a professional athlete; but applying the points of this book to myself I can easily understand why I'm in the life position I am, to the point I might feel the need for myself to expound upon it at some point.
I've read some critiques saying the book throws out individual accomplishments and basically says all successful individuals are pure luck. I don't agree with that at all. The author clearly notes multiple times that these people are those that took advantages of opportunities, he just points out that those opportunities were very fortunate and circumstantial, down to the timing and location of their birth and upbringing.
Think about it and it makes sense before even reading the book. Does a child who grows up in a two-parent affluent household have a better opportunity to succeed than a child who grows up in a single-parent poor household? Not that one or the other can or can't succeed, just that the opportunities are far greater for the latter. In turn, the "poor" kid still has a much greater opportunity to succeed compared to a child in 3rd-world Africa. It's relative and circumstantial, but it makes sense. The book has MUCH more to say than the simple example I just shelled out.
I like to buy books. I generally don't use the library for whatever reason, mainly that I don't mind buying books because I don't ever think purchasing a book is a waste of money. Reading is never a waste of time or money in my mind. However, I rarely reread the books I buy. I've even recently told Rachel she can start selling the majority of my books because I'm unlikely to ever get back around to reading them again. I enjoy it the first time through and that's usually it. It's not like a movie that only takes a couple hours to get through a second (or sometimes third, fourth, fifth, etc.). The bottom line for Outliers for me is this: I look forward to rereading it before the end of the summer.
Let's put it this way, I wasn't even a quarter of the way through this book before I got online and ordered his other two books. Generally when I read I get to the end of a chapter before I think about what I read. I found myself putting the book down temporarily on nearly a page by page basis to think about what I had just read, then was excited to pick it back up and see what came next.
Outliers describes the backgrounds, circumstances, and opportunities of successful people. Not only does it take TONS of work to be a true outlier (which he dubs the 10,000 hour rule-very intriguing and I would think is absolutely true) but you have to be extremely fortunate to be born in the right place, at the right time, and grow up under the right circumstances. Unfortunately, I was NOT born at the right time, nor in the right place, and I have not grown up under the right circumstances to be the next Bill Gates or Beatles or a professional athlete; but applying the points of this book to myself I can easily understand why I'm in the life position I am, to the point I might feel the need for myself to expound upon it at some point.
I've read some critiques saying the book throws out individual accomplishments and basically says all successful individuals are pure luck. I don't agree with that at all. The author clearly notes multiple times that these people are those that took advantages of opportunities, he just points out that those opportunities were very fortunate and circumstantial, down to the timing and location of their birth and upbringing.
Think about it and it makes sense before even reading the book. Does a child who grows up in a two-parent affluent household have a better opportunity to succeed than a child who grows up in a single-parent poor household? Not that one or the other can or can't succeed, just that the opportunities are far greater for the latter. In turn, the "poor" kid still has a much greater opportunity to succeed compared to a child in 3rd-world Africa. It's relative and circumstantial, but it makes sense. The book has MUCH more to say than the simple example I just shelled out.
I like to buy books. I generally don't use the library for whatever reason, mainly that I don't mind buying books because I don't ever think purchasing a book is a waste of money. Reading is never a waste of time or money in my mind. However, I rarely reread the books I buy. I've even recently told Rachel she can start selling the majority of my books because I'm unlikely to ever get back around to reading them again. I enjoy it the first time through and that's usually it. It's not like a movie that only takes a couple hours to get through a second (or sometimes third, fourth, fifth, etc.). The bottom line for Outliers for me is this: I look forward to rereading it before the end of the summer.
Commercials Part 1
Once again I'm up in Washington and I find myself wathcing copious amounts of tv at night (ok, so not all that different from my normal life). But I have seen too many commercials tonight that have upset me not to write about it; particularly what I am going to dub "the downfall of Arby's".
All that know me know I LOVE commercials. I should have gone in to advertising becuase I'm such a sucker for commercials (can you say sham-wow, p90x, perfect pushup, iron gym, magic bullet, and on and on), but I am especially a sucker for food commercials. If I see a new food product, I want to try it. If I see a good food commercial, I want to go there (and I usually do). In fact, while I'm thinking about it, I'll note that I went to KFC tonight with a coupon for a free "Grilled Chicken" meal. Maybe I was expecting the type of grilled chicken you get on your grilled chicken sandwiches or something but I would've probably rather had fried. And the grilled certainly didn't taste healthy, it tasted just like the fried. . .hmmm. "Unthink KFC?" I think KFC needs to stick to their NAMESAKE and keep it fried. People know when they're getting fastfood level food they are getting unhealthy stuff that ideally tastes really good. Tonight I got something that might have been marginally more healthy but didn't make up for it with extra taste. That's a thumbs down for me. The most upsetting part is these guys are owned under the same umbrella as Taco Bell, and I think Taco Bell routinely puts out clever commercials that make me want to each there.
Anyways, back on topic. I generally like almost all food commercials, because I like food! But I absolutely cannot STAND ANY of the new Arby's "Roast Burger" commercials. Look, I know you're trying to focus on your "non-greasiness" but by focusing on it in your commercials you are making me want to avoid YOU because you are the one I associate it with. Why is Arby's trying to reinvent themselves as a "burger"? Whose idea is this? Stupid stupid stupid! Don't call it a burger! I used to hold Arby's on a "upper-echelon" of fast food if you know what I mean, but they are downgrading themselves to McDonalds/Burger King status by trying to say they are a burger (I know you all know I love McDonalds, and I do, but most put McDonalds at the bottom of the barrel and I am referencing McDonalads according to popular theory, not my specific tastes). Anyways, the commercials suck and make me want to avoid Arby's at all costs. Too bad because their roast beef sandwich and their market sandwiches are pretty good.
One more commercial I keep noticing. This of course has no bearing on my purchasing since I've never purchased this product nor ever will, but I keep getting pissed at these new Budweiser commercials. They focus the whole commercial on how they are the great "American" lager. If they're so American, why are they playing a song by Jet (an AUSTRALIAN band) every commercial? Who hired these adverstising people? Or am I the only moron out there who notices things like this?
Anyways, this is Part 1 because sometime in the future I know I'm going to get riled up about commercials again and write some more. For now. . .
All that know me know I LOVE commercials. I should have gone in to advertising becuase I'm such a sucker for commercials (can you say sham-wow, p90x, perfect pushup, iron gym, magic bullet, and on and on), but I am especially a sucker for food commercials. If I see a new food product, I want to try it. If I see a good food commercial, I want to go there (and I usually do). In fact, while I'm thinking about it, I'll note that I went to KFC tonight with a coupon for a free "Grilled Chicken" meal. Maybe I was expecting the type of grilled chicken you get on your grilled chicken sandwiches or something but I would've probably rather had fried. And the grilled certainly didn't taste healthy, it tasted just like the fried. . .hmmm. "Unthink KFC?" I think KFC needs to stick to their NAMESAKE and keep it fried. People know when they're getting fastfood level food they are getting unhealthy stuff that ideally tastes really good. Tonight I got something that might have been marginally more healthy but didn't make up for it with extra taste. That's a thumbs down for me. The most upsetting part is these guys are owned under the same umbrella as Taco Bell, and I think Taco Bell routinely puts out clever commercials that make me want to each there.
Anyways, back on topic. I generally like almost all food commercials, because I like food! But I absolutely cannot STAND ANY of the new Arby's "Roast Burger" commercials. Look, I know you're trying to focus on your "non-greasiness" but by focusing on it in your commercials you are making me want to avoid YOU because you are the one I associate it with. Why is Arby's trying to reinvent themselves as a "burger"? Whose idea is this? Stupid stupid stupid! Don't call it a burger! I used to hold Arby's on a "upper-echelon" of fast food if you know what I mean, but they are downgrading themselves to McDonalds/Burger King status by trying to say they are a burger (I know you all know I love McDonalds, and I do, but most put McDonalds at the bottom of the barrel and I am referencing McDonalads according to popular theory, not my specific tastes). Anyways, the commercials suck and make me want to avoid Arby's at all costs. Too bad because their roast beef sandwich and their market sandwiches are pretty good.
One more commercial I keep noticing. This of course has no bearing on my purchasing since I've never purchased this product nor ever will, but I keep getting pissed at these new Budweiser commercials. They focus the whole commercial on how they are the great "American" lager. If they're so American, why are they playing a song by Jet (an AUSTRALIAN band) every commercial? Who hired these adverstising people? Or am I the only moron out there who notices things like this?
Anyways, this is Part 1 because sometime in the future I know I'm going to get riled up about commercials again and write some more. For now. . .
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