Category Archives: Huh?

Opening A Can Of Mistrust

It’s Foodie Friday and I want to talk about a widespread fraud this week. If you cook Italian food every so often, you might have been a victim of this common deception, and of course, it has implications for your business (or else why would I bring it up here?). I’m talking about the lies told by many companies about what lies within a can of tomatoes labeled as “San Marzano.”

If you’ve been to Italy you’ve tasted the difference in what they have there vs. what we commonly use here, and one of the biggest differences is the true San Marzano tomato. Grown in the volcanic soil that surrounds Mt. Vesuvius, these plum tomatoes are protected by an official designation – DOP – which certifies that they are the real deal. Many other types of products receive this stamp which certifies that they are locally grown and packaged in the specific region according to strict standards – balsamic vinegar and mozzarella di bufala are two of the best known along with these tomatoes.

If you walk through your local supermarket, you will find many cans labeled “San Marzano” and yet there is a high likelihood that they are nothing of the sort. 95% of the tomatoes sold here as San Marzanos are fake, at least according to the person who certifies them. If you see crushed or diced San Marzanos, they’re fake, since true ones are only sold whole. If they are grown in the US, they’re fake. If it doesn’t have the DOP seal and the seal of the consortium that sells them, they’re fake. Some unscrupulous packagers put a DOP-looking seal on their cans; some don’t even bother, knowing that the words “San Marzano” are enough to confuse shoppers.

Why do I raise this? First, it bothers me that so many retailers are complicit in perpetuating this fraud. You wouldn’t see a legitimate store knowingly selling fake Dior bags or knockoff golf clubs with high-end labels. Why do supermarkets allow this? Can I trust that the wild-caught fish you’re selling at the fish counter isn’t farm-raised? Second, some fairly big time packagers engage in this, which calls into question what’s in the cans of other products they produce. Are those really organic peas or are you just charging more for the same stuff that’s in the non-organic cans? Lastly, and most importantly, it reiterates the point we’ve made often here in the screed. The most important thing any business gets from customers is trust. Losing that trust can be fatal, no matter how good your service or pricing might be. Knowingly perpetuating a fraud on your customers is way over the foul line.

I don’t want to make too big a point about a can of tomatoes. Most shoppers don’t look for San Marzano tomatoes – they buy whatever is on sale. It only takes one customer, however (like me?), who figures out that you’re profiting off of the deception to put a crack in your reputation. That’s not the type of sauce you want to be serving, is it?

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It’s A Scam

A couple of decades ago, as I began spending more and more of my professional time in the world of digital, I worked for a guy who wasn’t a believer in all of the hype. He thought that the prognostications of the coming demise of mass media (we worked in TV) and the rapid disruption of business models was BS. Actually, one of his favorite things to do was to pop his head into my office and say “You know this Internet thing is a scam, right?”

I used to laugh it off but 20 years later I’m thinking he might have been right. He certainly was when Web 1.0 blew up, washing away billions of investment. No serious person involved in digital business makes those same mistakes but there is a whole lot of grifting going on nevertheless. Let me explain.

First, there is the whole bots thing in programmatic advertising. If you dig paying real money to put ads in front of fake people, be my guest. The fact that the continuing race to the bottom with respect to pricing results in many legitimate publishers’ sites looking like an Arabian bazaar or a NASCAR vehicle should tell you there’s a problem. The fees taken at every step of the way by vendors who add little to nothing to the process and won’t disclose how their systems function nor the actual ways they’re blocking fake traffic is another scam. Obviously, putting profits before people (servicing your pocketbook before servicing your reader!) is a scam of sorts, too. You’re promising great content but you’re forcing your readers into suffering through a horrible; experience to get to it. Any wonder that Google is adding an ad-blocker to Chrome or that a third of US web users employ some sort of an ad blocker?

Then there are the “influencers.” As one executive who works in influencer marketing stated: 

It’s basically the biggest scam started by the countless influencer marketing platforms that popped up over the past two or three years, who find it a lot easier to recruit and work with super small influencers who will do anything for a $100 gift card. Everyone talks about how these “micro-influencers” have such high engagement, but who cares about a 20 percent engagement rate on a post when only 10 people liked it?

It goes beyond the little guys. The FTC had to once again send out more than 90 letters reminding influencers and marketers that influencers should clearly and conspicuously disclose their relationship to brands when promoting or endorsing products through social media. In failing to do so, these folks, many of whom are big-name celebrities, are scamming their fans by failing to tell them that they’re paid to say nice things about a product they may or may not even use.

I’m not meaning to fault the tools here. I’m just pointing out that one effect the democratization of media has had has been to facilitate many more scams. Easy access means for easy for everyone, including those with less than sterling intent. Back in the day, they would never have got past the Standards people every network had or the accountants than every media outlet had. Today, anyone with an ad and a credit card can get involved. It’s like anything else though. At some point, you have to figure out if you’re about lining your pockets at the expense of your customer in a dishonorable way or if you want to solve the customer’s problems in a way that rewards you for having done so. Your call!

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Considering The Optics

The President fired the Director of the FBI yesterday. Even though such a thing had only happened once before (when the FBI Director was accused of using funds for personal stuff), it is well within the rights of the President to do so. In fact, the head of the FBI, like US Attorneys and White House staff, serve at the pleasure of the President (which always brings to mind this scene from The West Wing in which the staff pledges loyalty to the President using exactly that phrase).

No, I’m not (finally) wading into politics, but there is a tremendous business point to be taken from yesterday’s action. The FBI is investigating if and how the President’s campaign was (is?) tied to Russia. Firing the man who is heading an investigation into your campaign is bad optics, especially when you do so on the day when subpoenas go out. It’s also bad optics to give as a reason something for which you praised that same person a few months earlier.

Bad optics is a phrase typically used in politics which describes when politicians fret about the public perception of a decision more than the substance of the decision itself. It has little to do with right and wrong and a lot to do with the perception of right or wrong. We’ve seen a few cases of this in business very recently:

  • United Airlines kicked doctor off a plane and he was beaten up when he refused to go. Were they within their rights to involuntarily bump a passenger? Yes. But the optics, both in front of other passengers and, since everyone has a camera, the rest of the world are horrible.
  • When public schools refuse to give a hot lunch to a child or give them a cheese sandwich instead of what the other kids have because the kid’s family can’t afford to pay, are they within their rights? Yes, but the optics…
  • When a business asks workers to train their (foreign) replacements, they’re helping their bottom line but killing their reputation because the optics are so bad.

One thing we all need to do as part of our decision-making process is to consider the optics. How will this appear, regardless of the right and wrong? It does little good to be in the right when you seem to be very wrong. You with me?

 

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