Tag Archives: Business and Economy

Burritos On The Brain

This Foodie Friday, it’s all about the humble burrito and what it can teach us about business and life. I’m sure you’re familiar with the burrito. As we know it here in the USA, it’s a rather large tortilla filled with meat, beans (usually refried), cheese, sometimes rice, sour cream, guacamole and often more. You need to be a “little burro” to carry all of that!

Here’s the thing though. Burritos in Mexico are a totally different matter. They generally contain one thing, usually a protein. Maybe it’s shredded pork that’s been cooked for hours in a mojo. Then a sauce of some sort is added and the meat is placed, with or without refried beans, into a tortilla, usually flour (corn tortillas are generally smaller and better for tacos or flautas). It’s much simpler but this simplicity does a few things.

Each ingredient must be perfect because the flavors of each is a point of focus as you’re eating. You can’t hide bad meat behind a lot of cheese and sour cream. Your seasoning must be aggressive or the dish will be bland. After all, it’s wrapped in a bland tortilla that can tend to deaden its contents. In short, the Mexican burrito mirrors some of the world’s great dishes – simple ingredients but complex flavors. Think cacio e pepe – pasta with cheese and pepper. Like the burrito, it’s not about difficult techniques or hard to find ingredients or even complex timing like a souffle. Instead, it’s about having the patience and skill to bring out the best in your materials and the confidence to present them to stand on their own.

That’s a great lesson for those of us in business. Too often we hide behind buzzwords or present materials in a way that hides the basic thoughts we’re trying to convey. How many powerpoints have you seen with 50 words saying what 5 could have said? We try to make what we’re doing exceptionally complex instead of trying to simplify it. We add the unnecessary toppings – not guac and cheese and sour cream but hard to read contracts and user agreements or black-box systems that add nothing but cost and marginal improvements.

The next time you’re in a meeting, think of the humble Mexican burrito. Keep it simple but make each piece spectacular. The ingredients of your business – the people, the business model, the systems – must all be the best and you’ve got to combine and season them to make them better. Not more complicated and not hidden behind unnecessary glop. Make sense?

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Filed under food, Thinking Aloud

You’re The Customer Too, Dummy

We haven’t had a screed in a while in which I point out the on-going silliness of many of us in marketing, so let’s start the week with one! There was an article in the eMarketer newsletter about a recent study. I’m just going to quote it directly:

In an August 2018 survey of 103 ad agencies, publishers and marketers in North America conducted by Pressboard, 27.2% of respondents said they use an ad blocker to block ads on the websites they visit. These figures are similar to those found in the general population. According to eMarketer forecasts, 25.2% of US internet users will use an ad blocker in 2018.

Pressboard’s research showed that advertising professionals are more likely to rely on their friends than on ads when they decide whether or not to purchase a product. Nearly eight in 10 respondents (78.6%) said that word-of-mouth from friends influenced their recent purchase decision. Just fewer than 16% of those surveyed reported making a purchase after being influenced by banner ads.

I hope you can see immediately why this precipitated my response. It’s might be easy to shrug this off. I mean, what does it really say? Marketing and advertising professionals are humans too? How is that a surprise? Well, it’s not, but it does point out a fundamental problem. Apparently, when they put on their business hats and get to work they forget how they feel as consumers. After all, if they react badly to banner ads and rely more on word of mouth, why do they persist in figuring out how to invade the consumer’s website use in as many ways as possible? They use ad blockers because, to paraphrase Barry Goldwater’s campaign slogan, in their hearts, they know it’s right. The state of web marketing is akin to that of an Arabian bazaar or a NASCAR driver. Ad blockers at least make the web tolerable.

The message to any of us is that we’re customers too. We need to think like customers and not as marketers when we’re figuring out the best ways to interact with our audiences. How can we solve their problems? How can we deliver information that’s useful to them and not just scream at them? Keep that in mind and not only will your customers be better off, but you will be as well. Make sense?

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Filed under Consulting, digital media

Everyone’s Got A Deal

A very wet Foodie Friday here but that won’t deter me from posting a few thoughts about what I think is a post-value world. What I mean by that is that value seems to be more of a given today that it did a few years ago. I also hope by now you’ve learned the difference between value and cost because your customers certainly have.

In the food business, you see this playing out in spades. Everyone has a deal, whether it’s $1 menu items or $5 foot long subs or free cheeseburgers from using an app to order. I suspect that many of these items are loss leaders. They certainly can’t be maintaining the margins which are already slim in the restaurant business. They’re designed to build traffic and that traffic will buy other, more profitable items.

The problem with this is the restaurant business is one where the supply has outstripped the demand. Chain restaurants are growing faster than the overall population and there aren’t enough hungry folks out there to support them all. Because deals are so prevalent, it actually frees the consumer to decide if they place more value on the price of the meal or if they value higher quality ingredients or better service or just the overall dining experience an establishment offers. More often than not these days, the price is less of a concern. Why? Because everyone’s got a deal!

What does this mean for your business? It means you’ve got to continue to get beyond thinking about cost in terms of how your customer values your product or service. The health of the business depends on more than a lot of customers. Fewer, more profitable customers seem better to me than a lot of slim-margin ones. Ask K-mart, whose profitability peaked in 1992,  if the low-margin, high volume strategy can work over the long term. Someone can always compete on price (Walmart).

The “deal” I try to offer to my potential clients is the highest level of value. That value is defined in THEIR terms, not mine. If all they’re after is a low price, I’m probably not going to be working with them. If what they want is a profitable result that advances them to their goals, well, that’s my deal. What’s yours?

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Filed under Consulting, food, Thinking Aloud