Tag Archives: business thinking

December 11, 2019 · 4:14 pm

We’re Not Stupid

I do quite a bit of headshaking these days. We won’t talk about the political stuff that causes me to do so but there are just as many things outside of politics to trigger the behavior. I’d like to talk about one of them today because it’s instructive for anyone in business.

One term that’s become en vogue is “alternative facts.” You know what I mean – the dissemination of pieces of information that are mostly or completely untrue. Orwell termed them “doublethink“. I term them lies.

What brought this on? I subscribe to a bunch of magazines – golf publications, cooking publications, and several others. This time of year, in particular, I get snail mail with offers to send a gift subscription. Some ask me to renew or extend my existing subscription and offer to send a free gift subscription to someone as a thank you. So far, so good. These offers are usually clear and only mildly annoying.

Then there is one publication that just doesn’t get it. It’s part of a larger family of magazines and I wonder if what I’m about to describe goes on at the other publications as well. An envelope shows up stamped first notice. I’m told my subscription is expiring and I should renew. A few weeks later comes the second notice. Last week, I got some mail marked THIRD NOTICE in large letters outside the envelope. Inside was the same notice I’d already received twice – my subscription was going to expire (aren’t we all?) and I need to renew ASAP for uninterrupted service.

Here’s the problem. I just renewed this subscription last year for several years. Just to be sure, I found the last issue and sure enough, there on the mailing label was the expiration date. It’s January alright. January 2021. I’ve got a year to go. I wanted to confirm this so I logged on to my account on the magazine’s website. My account lets me use the site’s “recipe box” which I do quite a bit but for some inexplicable reason, it’s not linked to my magazine subscription. When I click on the “manage account” link, up pops a new tab asking me to renew. Again, there’s an assumption that you’re dumb and will just renew because a very in-your-face page is telling you that you need to. In order to see your current account, you need to click through on the FAQ link at the foot of the page and scroll until you find a link to “log in to your account”. Of course, when I finally found this and did so, I confirmed that I had a year to go on my subscription.

Putting the awful user experience aside, what’s bugging me is that these publishers think their readers are dumb. They seem to believe that sending out misleading notices with “alternative facts” will lead to renewals. I wish I could say they were unique but they’re not. I’m sure you get the same kinds of “notices” that I get. My home warranty is expiring (I don’t have one), I can have a “free security system” (it’s far from free), and on and on.

Companies that think we’re stupid deserve to be out of business. I’m well aware of Mencken’s statement that “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people”. We need, instead, to think like David Ogilvy: “The customer is not a moron. She’s your wife”. Putting aside that deceptive marketing just might be illegal, doesn’t it bother you to be thought of as an idiot?

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December 6, 2019 · 4:54 pm

Pots And Pans

Happy Foodie Friday! Have you recovered from last week’s massive food fest? If you were the host of the festivities, at some point you hauled out some pots and pans. Cookware is the most basic kitchen equipment besides a great chef’s knife (you have one of those, right?) Other than when you’re outdoors cooking on a grill or smoker, you pretty much need a pan or a pot or several of each to get the job done.

This isn’t going to be a “how to equip your kitchen with cookware” screed. The reality is that my favorite sizes and types of cookware may not be at all appropriate for you. I mean, I cook on a gas cooktop which means that I like cookware that can handle high heat and distribute it evenly. You may cook on an induction stove which means your pots and pans need to be a “ferrous” metal – meaning a magnet needs to cling to them to work properly on an induction cooktop or range.

I often will start something on the stove and then move it to the oven. That means I want pans that have handles that can go in the oven without melting as well as pans that won’t warp in the oven heat. In fact, thin, insubstantial pans may be less costly but single-ply cookware does not heat evenly nor does it retain heat well. This means that you are likely to burn things. Thin pans warp easily as well and if you’ve ever tried to maintain a thin layer of oil or butter for sautéing in a warped pan, you know it’s damn near impossible to get it right in that case.

You might insist on everything being non-stick or you might have concerns about the surface leaching into food. You might love ceramic pans while I don’t like how they discolor over time. To each his own, right? But what’s important is that you THINK about what you cook and how you cook before you invest in cookware. Ideally, it’s something you’re only going to do once for each pot or pan you buy.

The same holds true in business. What’s right for my business may be totally wrong for yours and, like a non-ferrous pan on your induction cooktop, might not work at all. You need to do requirements planning with input from all constituencies (all cooks weigh in!). You need to evaluate all the options and costs, while always important, can’t be the primary criterion. I generally buy my stuff at a restaurant supply place that sells to the public – it’s high-quality, will stand up to my home use since it’s made for much heavier use than I give it, and it’s less expensive than the stuff you find in the “consumer” stores. That is a great guideline for anything you’re doing in business as well. Plan, research, evaluate and buy for the long-term. You’d be surprised where the best solutions can be found!

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November 13, 2019 · 9:50 am

Why This Brand?

When you have over 500 different brands that you represent, the reality is that you can’t know each and every one of them to the same degree. As I’ve been speaking to people interested in changing their lives for the better, I’ve come to have a list of “go-to” brands in each of the major categories. How these brands got on this list is, I think, instructive for every business.

I was actually speaking about this topic to a development director at one of the brands who reached out. Her first question was about the commission structure. We consultants get paid by the franchisors based on people signing franchise agreements and not by the candidates. I gather that for some consultants that how much of a commission they can make influences their choice of which brands to put forward. Point number one: while it’s obvious that the brands are my customers since they pay me, it’s impossible to work in a situation where the candidate’s interests diverge from the brand’s. In my mind, therefore, the commission is a non-factor. I can’t expect to earn anything in a situation where I hand off an unqualified candidate to a brand. My point is that in any sales situation, every stakeholder’s interests must be considered and subordinating what’s right for one party to a potential higher commission isn’t going to work.

One thing that influences my choice of brands a lot is the amount and quality of information the brand provides. You would not believe how little information I have about some of these franchises, several of which are businesses I don’t quite understand. In some cases, all I have is bare-bones information about costs and royalties and a link to the consumer website – not even a “want a franchise?” page which I have to find on my own. Where some brands give us presentations, folders, one-sheets, and research, others give us nothing. You can guess which brands get pitched. Point number two: don’t send your troops into battle without arming them properly.

The next thing I consider is responsiveness. In many cases, getting the candidate engaged enough to want to speak to a franchisor is a time-consuming effort. Once they are ready to go, I want someone at the franchisor who will be as proactive as I have been to get the candidate this far.  Once I’ve made an introduction, I expect the brand to reach out within a day, hopefully within an hour or two. Point number three: if you’re not going to work as hard on making a sale as others engaged in the process, you need to know that there are other businesses out there who will. Be responsive. Return phone calls and emails in a timely manner.

Finally, I also consider communication. Some brands tell me every time they have an interaction with my candidate. Others have been radio-silent. You can guess which type I prefer. It’s very hard to over-communicate in any business.

Those are things I consider when choosing partners. Anything I’ve missed that you think is critical?

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