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Posts Tagged ‘Economy’

The great m&m debate

March 7th, 2009 in Marketing by


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Further to Nigel … Imagine that due to cutbacks and rationalisation only orange and brown m&m’s were available.

Imagine, then, you created a range of multicoloured ones (by passing them through your unique m&m random colorising filter, available in CS4 only). But you made yours more expensive … and you put them in a fabulous box that emphasised the difference.

Nigel would buy them. But would you still be in business after three months? Would the answer depend at least in part on the box?

What I’m hearing is almost a homogenisation of photographer’s outputs and products as they duck for safety from the “falling sky“.

This creates a greater opportunity to stand out by being dishomogenous, somehow unique and therefore of greater value.

If the m&m’s were photographs, and the package they came in was an album, how important would the package be to the acceptance of a higher fee for a unique product?  Just a question.

Hugs, Johannes

 

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    • What do they expect?

    March 4th, 2009 in Marketing by


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    I bought a big 250g bag of M&Ms, as I often do, to share with the people in my office … but I didn’t get what I paid for.

    I expected M&Ms, the normal mixture, but I ended up with a bag of orange chocolates, the last colour I’d choose. To quote from the packet, “M&Ms are now sold as separate colours”. 

    • I was expecting a mix of colours: they didn’t deliver.
    • Without even telling me, they changed the rules: their advertising failed me or they didn’t do any.
    • Nowhere on the bag did they even say what colour I was getting.

    I know this is trivial! What people have grown to understand to be your uniqueness gives you huge leverage. And it’s free.

    IMHO A bag of orange chocolates is boring. I was paying for an expectation. And so are your clients.

    Cheers, Nigel

    PS Remember New Coke? – Ian

     

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    February 24th, 2009 in Marketing by


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    We’re not so different to you.

    I talked to a photographer who was at WPPI and he said, “More album manufacturers, less people attending.”

    You must hear that every day. “More photographers entering the market, less brides to go around”.

    A statement like that makes you realise how important what you’re offering is. And how you’re doing it. So I asked him how other album companies compared to Queensberry – anyone getting close?

    Nope. Everyone is going the other way. Cheaper albums and faster turn-around times.

    That makes us feel pretty good, because we know the trade-off. We’re not cheap and we’re not as fast as a machine-made product. But that’s what lets us be different. It’s who we are – and that’s key right now.

    More of the same isn’t going to get anyone anywhere in these tough times, so why follow the Piper? Let’s be ourselves. Let’s be different together.

    Cheers, Nigel

     

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    • Sometimes discounting isn’t the answer!

    February 6th, 2009 in Marketing by


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    We all know that when we discount a price, say by 10% on a $1000 product, we’re kissing good-bye to $100. That is not 10% of your profit. If your profit is $400 it’s 25%. Do you ever get it back?

    You can argue that $300 is better than $0 … and there is a truth in that.

    Instead of lowering the price think about giving extra value. Instead of reducing your profit take something that has a high value with little cost and turn it into an incentive.

    For us it might be an enlargement or extra time. The value part in this is that it gives more to your client and takes less from you.

    If you create a ‘discount culture’, are you saying that you’re charging too much to begin with, because your ability to be flexible suggests you were charging a premium for your services? Does it affect your ability to return to your original pricing?

    If your base price is too high for your client, could you remove something to justify reducing it, then offer back what you removed as an incentive?

    As an example, if your base price is $2500 for 4 hours of coverage, do you offer 3.5 hours for $2350, which may be more affordable? At your discretion, after you have decided you really want this wedding you could then give back the extra half hour at no extra charge. Effectively you haven’t given them a discount, you have given them an incentive.

    This way you get to hang on to your integrity.

    Best wishes, Johannes

     

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    • How to discount

    February 5th, 2009 in Marketing by


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    discount_istock_000005308920xsmallRemember the little domestic drama about how my briefcase and laptop were stolen?

    And how, to judge from my own buying behaviour, not everyone is going to downgrade to cheap and nasty just because of the recession?

    Well, yes, I bought the most expensive laptop bag I came across, but…

    I asked for a discount.

    You’re not to know this but I’m a shrug-and-pay guy. It’s my role in life to pay full retail, so for me to ask for, let alone get, 10% off is unusual.

    But what struck me was how the store projected itself. There wasn’t a sale sign anywhere. Nothing to suggest times are tough, or please make an offer. Just a confident up-market establishment selling quality goods. The sales assistant had to make a phone call to authorise my discount.

    So how do you avoid creating what Seth Godin calls a “clearance sale culture”?

    First, accept that while discounting is something you may never want to do, right now the alternative could be too many people walking away.

    Second, don’t lower your base prices: that sends the wrong message, and everyone gets the discount, even those who don’t need it, such as me (I would have bought anyway).

    Third, if someone asks for a discount, consider whether you’re prepared to “sharpen your pencil”, and by how much. Then do each deal one-to-one (everybody you agree to deal with will feel pleased with themselves and their negotiating skills).

    My earlier posts emphasised the danger of slashing prices and/or under-delivering. You must be clear how much you can afford to discount, but also what for. For example, are you just trying to stop the customer from walking away, or could you negotiate a discount to secure a bigger sale? (Our own discounts work like that – on a volume basis.)

    Cheers, Ian

    PS One of my photographer friends used to get very frustrated by competitors who sharpen their pencils to get the deal. But it seems pretty normal commercial behaviour to me, especially if the outcome is to secure a better commitment from the client.

     

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    February 4th, 2009 in Marketing by


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    There’s a recession on, right? Here’s how it’s playing out in my life.

    My friends will tell you I’m not the world’s most enthusiastic shopper, but my laptop and briefcase were stolen the other day, and after the initial anguish I got that little thrill of being able to acquire some new stuff.

    First, the laptop. Did I think about changing brands? Not on your life. I’ve been lusting after the new MacBook Pro since I first saw them machining the aluminium “unibody” in the video on this page. Now I’m typing on one. I know the insurance company paid, but do I care about the price? Not on your life. I know 95% of people disagree with me, but we fanboys say people work on PCs, they create on Macs. And they’re beautiful (I’d love a MacBook Air). I have my little rationalisations, of course. Macs are good value ‘cos they come loaded with everything you need, but really I don’t know or care.

    And guess what? The time when Apple nearly went broke was when the bean-counters took over and created the Macintosh LC. Great machines, Queensberry had several, but they were ordinary. And LC stood for “Low Cost”.

    dannys-bagSecond, the laptop bag. I forget I’m in my 60s until I look in the mirror so I kind of wanted a bag like Danny’s to replace my heavy, corporate Samsonite briefcase. But you know, I’m not 26 any more…

    So Heather and I traipsed around town with my beautiful laptop in a crappy canvas satchel looking for something better.

    I could have paid a sixth or even a tenth of what I did. I could have bought something I quite liked for a third of the price I actually paid.

    jost-bagDid I? Not on your life. I bought what I really wanted, a soft black leather Jost satchel similar to this.

    These aren’t earth-shattering or even particularly extravagant transactions, just a couple of the gazillion little buying decisions being made round the globe every minute. Do you really think everyone is going to downgrade to cheap and nasty?

    What is going to be harder is selling something for top dollar that is actually compromised.

    As Johanne said, don’t do cheap, do valuable.

    I’ll drop the other shoe tomorrow.

    Cheers, Ian

    PS Shame they didn’t get my iPhone. I would have loved a G2 like Stephen’s ;)
    That’s the power of owning a lovemark.

     

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    February 2nd, 2009 in Marketing by


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    I posted the other day about this being a great time to consider whether any of your business policies and touch points aggravate your customers, and if so fix them. I included a PS saying we know we’re not perfect, and “if you reckon this is the pot calling the kettle black, please leave a comment or email us”.

    I was glad I did because Mark went to some trouble to leave a lengthy comment detailing his frustration with us. My point here is not so much to talk about his particular issues (we’ve been in touch, of course, and we  pretty much have to take what he says on the chin, and fix the underlying causes where we can).

    What’s really important here is how strongly your (our) clients feel about you (us). Mark likes us (“everyone I deal with at Queensberry is lovely”) but we’re annoying the hell out of him. For me this just rubs in the lesson:

    These “aggravation points” can be relationship killers.

    Until your customers believe you’re on their side, you’re going nowhere.

      Sorry Mark, I hope we can win back your good will.

      Ian

       

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      February 2nd, 2009 in Marketing by


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      I’ll be quick.

      In a recent post, Ian said that a couple’s final buying decisions should generally be postponed until after the wedding because they’ll be more enthusiastic about their own photos rather than your samples.

      As someone planning their own wedding right now, I agree! But let me clarify something.

      Couples will be even more enthusiastic about their photo’s in the month or two directly after their wedding (as opposed to six months down the track). They’re still on an emotional high, and that honeymoon period can create some great opportunities for you… Why?

      1 – They’re more likely to play an active part in post-production – get them to do what you need while they’re still ‘buzzing’ about their wedding – it’ll be easier (and quicker).

      2 – They’re more likely to buy more – they’ll be less price sensitive.

      3 – They’re more likely to talk – about you – especially if they’ve got an album to show people.

      4 – Getting an album finished and the order placed means you get paid!

      Honeymoons don’t last forever, so make the most of them while they do.

      Cheers, Nigel

      Come to think of it, Ian posted along similar lines last year…

       

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      January 30th, 2009 in Marketing by


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      In our studio one of the things we say is that we don’t do cheap.

      Our albums are valuable.

      We talk about using the best.

      We talk about how only the best is good enough.

      Just as in a restaurant that only uses the highest quality raw materials, if the food is amazing but the delivery/service is poor the food will quickly be forgotten. If you excel at both you have something amazing  to offer.

      So why is it important to be amazing?

      At a time when, for many, the cost of doing something is being measured, and value is increasingly important, the value of doing our best cannot be forgotten, especially for the things that we want to last.

      Because ‘the test of time’ is not just measured over times of adversity, like now, we must ensure that the thing by which they remember their wedding, and all that it means, will also pass that test in times of prosperity.

      For us, therefore, it’s not about looking for a cheaper option, it’s about using our current ones more effectively, and optimising value.

      We have people possibly cutting down the size of their album but NEVER asking for a cheaper model.

      Don’t be cheap, be valuable.

      Best wishes, Johannes

       

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      January 27th, 2009 in Marketing by


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      Yesterday was a public holiday in Auckland, so we went out for breakfast. It’s the law here that you have to give staff overtime rates and an extra day off for working public holidays. That’s 2-3 times minimum wage, more or less, but still expensive, so it’s become the norm to charge an extra 15% on normal prices. Anyway, here we are in a crowded restaurant and I’m wondering how many of us get annoyed about being nickel-and-dimed like this.

      Not as annoyed as we were on another occasion. After waiting in a long line for ice creams at a city beach, we were told when we reached the counter that they were an extra 15%. To cover the extra cost? Yeah right. They didn’t have extra costs, they had extra opportunities – a hot summer day, holiday crowds and a monopoly position. I reckon they were probably close to doubling their normal margin on a huge sales day.

      …And everything I’ve said is probably wrong. But I’m a customer. I’m not always right but I always have an opinion.

      Times are tough so this is a great time to consider how many of your business policies and touch points aggravate your customers. And fix them.

      Cheers, Ian

      PS I know we’re not perfect, so if you reckon this is the pot calling the kettle black, please leave a comment or email us.

       

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