Monthly Archives: July 2012

Why Your Marketing is like the Eagles’ Song Desperado (A Musical BLOG)

When I was in High School, it took me an hour via City Bus to get across New Orleans to school.  Pretty much every morning, I would put an album on the record player (some of my readers may remember those) when I woke up at 5am.   One of my favorite albums was The Eagles’ Greatest Hits.

This was truly a great album, chock full of songs that, sadly, describe the marketing done by most small business owners (although that MAY not have been intentional).  The most applicable was “Desperado.”  Read below and see why the Eagles had a lot to teach you (song lyrics are in BOLD, BLOG in parentheses).

Open a new tab and play this while reading, for maximum enjoyment:  DESPERADO

Desperado, why don’t you come to your senses?  

You been out ridin’ fences for so long now (You have no clearly defined target market, so you try to market to everyone.)

Oh, you’re a hard one (You insist on doing everything YOUR way.)
I know that you got your reasons (Although your marketing is not very clear;)
These things that are pleasin’ you (since you market with tools you LIKE, not what will work.)
(All of these things) Can hurt you somehow.

Don’t you draw the queen of diamonds, boy
She’ll beat you if she’s able (Too much of your Marketing is all about the money and Price;)
You know the queen of hearts is always your best bet  (when your marketing should be about CONNECTING to people.)

Now it seems to me, some fine things
Have been laid upon your table (Many of you have great God-given talents;)
But you only want the ones that you can’t get (but you market to the wrong people.)

Desperado, oh, you ain’t gettin’ no younger (You procrastinate while time passes;)
Your pain and your hunger, they’re drivin’ you home (while your desire to “get rich” keeps increasing.)
And freedom, oh freedom well, that’s just some people talkin’ (You cannot believe others make money with less effort;)
Your prison is walking through this world all alone (since you’re trapped in a “do it yourself” mentaility).

Don’t your feet get cold in the winter time? (Your cash flow is tight, so you get cold feet about spending anything on marketing.)
The sky won’t snow and the sun won’t shine (But, without any marketing, your business struggles more and more.)
It’s hard to tell the night time from the day (Eventually, your business stagnates)
You’re losin’ all your highs and lows (as you are going nowhere.)
Ain’t it funny how the feeling goes away? (Until, one day, that PASSION that you once had for having your own business and “being your own boss” fades away).

Desperado, why don’t you come to your senses? (It’s time to break free from the Fear that has been holding you back.)
Come down from your fences, open the gate (Get off the fence and find YOUR right target niche.)
It may be rainin’, but there’s a rainbow above you (When you find your niche, go for it; even if the times are tough.)
You better let somebody love you, before it’s too late (Make your marketing about creating a BOND with your prospects so that they LOVE you; before it IS too late to save your business).

—————————————————————–

Yes, you can play it again and sing along.  But after that, schedule a 15 minute call with meMarketing Guru, Financial Wizard, and Team Motivation Expert – and we’ll talk about how to build a strong Brand targeting your Ideal Customers:    https://my.timedriver.com/191CR

5 Reasons why Groupon is a Losing Con-Game

Here you go, kid.  It’s free.  Just try it!

And so begins the addictive use of…….

Groupons and LivingSocial Deals.

Do consumers love them..yes.  Are they good for most businesses?  ABSOLUTELY NOT.  They are a Con-Game that appeals to business owners who do not know how to sell their products or services for what they are worth.

Why are they a Con-Game?   To quote the great Sales Trainer Tom Hopkins, “If you are selling someone something that is NOT good for THEM, then you should be locked-up; because, when you do that, you are nothing more than a Con-Man.”

So, let’s list the reasons Groupons and LivingSocial “deals” are very poor business-building strategies:

1.  They appeal to “deal-seekers,” and not your IDEAL customers.  Statistically, deal-seekers are not looking to become loyal customers of a product; rather, they are loyal to whoever offers them the best deal.

2,  By a focus on price, and not value; they tell your CURRENT customers that the full-price they have been paying was too much.   When people think they have paid too much, they feel “ripped-off” and you easily lose them.  So, even when you gain a few “tryers” who come back later; you risk losing regular customers who WERE paying full price.

3.  Because they reduce your margins, they encourage (or force) you to cut corners on value delivery.  In a Groupon, if you offer a coupon of $5 for $10 of product; you only get to keep $2.50 (Groupon gets $2.50 – sweet deal for them.  Why do you think they sold it for so much money?).    Think about it…you are getting $2.50 for $10 of product!  I have run into several business owners who tell me that, because they get so many Groupon customers; they had to reduce the quality of their product to stay afloat.  That is a death spiral.

4.  They create an addictive reliance on the “Groupon” check.    The fact is, Groupons bring in people; so the business owner begins to think that they “work.”  Never mind that these are not loyal customers, that your margins are taking a beating, and that you have traded out your IDEAL customers for deal-seekers; the initial transaction increase sure looks good.  However, the longer you do them, the more of your customer mix becomes the deal-seekers.  So, just like a drug addict; you cross a threshold where you CAN’T quit.  I know of a Steakhouse in which 90% of his customers are Groupon or LivingSocial Deals.  His annual revenues are $1m, but he is losing money hand over fist; so he does not pay himself anything and his waiters get paid salaries because the Groupon deal-seekers do not tip well.   Every month, the check he gets from Groupon pays for the next month’s expenses (like a mini Ponzi scheme); when, as most coupons do, the Groupons lose their effectiveness, he will be in desperate trouble.

5.  The money you “pay” Groupon could be spent far more effectively building you as a BRAND, and not as a DEAL.  Just like any Con-Game, Groupon looks low-risk.  After all, they collect the money and then pay you half of what they collect.  If you sell 100 $10 for $20 Groupons, for example; you collect $500.  But, Groupon keeps $500.  Because that looks like a good deal, you may do it for a few more months.  Unfortunately, for the reasons above, you are not BUILDING a business; you are becoming a “deal-house.”  If you just took that $500/month for 3 or 4 months and put it into a good BRAND-building marketing campaign; you would be MUCH better off in the long-term. Unfortunately, once you start crushing your margins; eventually you have no money to spend on a well-targeted marketing campaign.

Am I passionate about getting people to stop using these deeply discounted deals?  Absolutely!  Just like a Cardiologist might not want to watch some eat fried foods every day (even though it tastes good); I don’t like watching business owners get taken in by the Groupon and LivingSocial Con-Games!

—————————————————————————————–

Build a BRAND, not a deal-house.   Schedule a 15 minute call with meMarketing Guru, Financial Wizard, and Team Motivation Expert – and we’ll talk about how to build a strong Brand targeting your Ideal Customers:    https://my.timedriver.com/191CR   (PS.  even if you have not done a Groupon, call me.  🙂 )