I'll drink to that! Too Many T-Shirts!
People in marketing are told on an almost religious basis we should think long term. So, what is this long term strategy and planning all about? Well, what it is all about is making money!
It's relatively easy to slip into cutting costs instead of promoting profits. Thinking first of how much it will cost rather than how much it's going to make. Profit is not a four letter word. Every company needs to make a profit. And those that do not are soon not with us.
Professor George Day of the Wharton School of Business has discussed the difference between being expense or cost focused vs. being investment or long term profit focused. Here is the difference:
If you are more concerned with cost, here is what you think:
As you can see from this short list of only 4 concepts, if all you think about is cost you are automatically not thinking about profits.
On the other side of the ledger are those people who think long term and think profits. George Day calls them "investment focused managers". Here are 5 points for those who budget for profit:
Assuming you are with me and you agree with George Day, as I do, now it is time for a story.This is one of those stranger-than-fiction type stories.
Looking for ways to increase sales, an Australia bar owner contacted a marketing consultant. Together they dreamed up the "I Drank My Way Around Australia" promotion to sell the 43 different beers brewed in their country.
Using a punch card to keep track, each patron who ordered all 43 different beers got a T-shirt which said, "I drank my way around Australia at __________'s bar."
After a few months the consultant asked the bar owner how the promotion was doing. "Response was terrific", he said, "I gave away 600 T-shirts before I stopped it!"
"Because I gave away too many T-shirts!"
"But I gave away 600 T-shirts. They cost me $2,400. My budget couldn't afford to do that any more."
Sad, it's true
This is a true story. It really happened. It's constantly amazing to me that people will stop successful promotions. They say they're spending too much money -- rather than focusing on how much PROFIT they are making. I do not get it.
Here are some tips and guidelines for avoiding the "Too Many T-Shirts Syndrome".
If you've planned for success and committed to your plan, your sales will grow incrementally. The longer you keep it up, the more money you'll make. And that's what business is all about.
by ROCKINGHAM*JUTKINS*marketing, all rights reserved.