Joe's Hotdogs

Joe's Hotdogs video segment 9 of 9

2011-10-25T19:29:00.000-07:00

Click on the title to watch the video on YouTube.

Note: There is nobody standing at the beach waving you up the bluff. There is nobody standing at the bottom of the beach telling you that some deal expires, or handing out a coupon. These are not necessary.

It is more important, as the story goes, to discover Joe’s Hotdogs, have a positive experience from Joe's, and to be proud of yourself for having made a discovery – rather than having saved fifteen per cent or gotten a dollar off, or something to that effect.

These are some of the lessons that run through my mind when I contemplate the Joe's Hotdogs story. I am sure you thought of your own business and marketing concepts, too. There are, of course, other lessons that can be taken from the story.

For now, I will leave you with this thought: Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island.

I didn’t say whether the hotdogs were good. I didn’t say whether the relish was good. However, Joe’s Hotdogs is a marketing success, and a well-branded company, whether there is somebody named Joe behind it or not.

Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island.

© Glenn R Harrington, Articulate Consultants Inc.

Joe's Hotdogs video segment 8 of 9

2011-10-24T18:03:00.001-07:00

Click on the title to watch the video on YouTube.

How about the promise to yourself, "I am going to come back here again and I am going to bring friends or refer family"? Sometimes, all people need is to discover something, and if the discovery turns out to be pleasant, then they want to share it. The self-satisfaction of having discovered things is a powerful motivator for some people to bring their friends, to bring family, and to bring themselves back to a restaurant (or any other kind of business) where they might have never planned to spend their money.

You climbed up the bluff from the beach. You discovered that Joe’s Hotdogs really does have good french-fries. You discovered the experience of Joe’s Hotdogs’ homemade relish. That was a pleasant discovery for you, supported by witnessing others making the same discovery.

That makes many of us feel proud. So proud, in fact, that we want to share our discovery. There is a sort of… let's say… vanity discovering a new positive experience and having that experience for the first time. We’ll often repeat it or share it all over again.

Joe’s Hotdogs has the appeal of a place that you discover. Such an appeal, indeed, that one might say to oneself, “Gosh I feel good now. I’m glad I discovered this. I want to share my discovery with other people.” It would be good if they had a positive experience at Joe’s Hotdogs similar to yours.

In this way, you would have deepened your sense of satisfaction about your own discovery by having others try a new experience that you introduced to them. It may even help to deepen your friendships with those other people.

This is how referrals happen. It's not the only way referrals happen, but it is one of the key ways in which they do. Of course, referrals can lead to new customers and repeat business.

People like to discover things and to repeat the pleasant.

Joe's Hotdogs video segment 7 of 9

2011-10-23T11:46:00.000-07:00

Click on the title to watch the video on YouTube.

Something else that is important is that the Joe’s Hotdogs sign says “Joe’s Hotdogs.” The sign does not say, “Joe’s Hotdogs, with the best selling french-fries since 1976.” Nor does it say, “Joe's Hotdogs. Get your favourite coffee!” It does not say, “Joe’s Hotdogs. Come here for pop.” It does not say, “Joe’s Hotdogs. Come here for home-grown, homemade relish.” It just says, "Joe’s Hotdogs."

One of the lessons that come from that is that Joe’s Hotdogs’ reputation, through its name at least, is a simple one. The Joe’s Hotdogs name carries with it the cultural assumption that there are probably beverages. There are probably onion rings and french-fries. There might even be such things as homemade relish.

How does the name Joe’s Hotdogs imply that there might be homemade relish? Well, it doesn’t say McDonald's. People know that McDonald's does not offer homemade relish.

The name Joe suggests something that might not be true about Joe's: There is an individual named Joe, Joanne, Joseph, Josephine. Who’s to say who it is? Often a name carries enough implications that no one has to say “Joe’s Hotdogs with homemade relish” or “Joe’s Hotdogs: we have great french-fries”. The name Joe’s Hotdogs not only implies Joe's menu, but also, it implies the possibility of homemade relish more than the name Holiday Inn might, or more than the name U-Haul might.

So, a company name is important in ways that are subtle.

Now, sometimes people bank on or have strong expectations for their name. For example, "Why doesn’t the whole world read my mind? Don’t they realize that I have the best homemade relish?" These are unwise assumptions.

However, it is also unwise to name your company Low-Budget Rental and assume that people will buy lots of french-fries from you. Cultural awareness, especially including the implications of a name, is important in marketing products.

Just don’t get witty with your wording. The greater the number of people who encounter your concept, the lower the common denominator of their savvy.

Joe's Hotdogs video segment 6 of 9

2011-10-22T22:00:00.000-07:00

Click on the title to watch the video on YouTube.

You ordered french-fries because other people seemed to be enjoying them. The truth is (I can make up the truth because this is my story), Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island.

Yes, there is quite a few eateries, restaurants, and lots of hotels on Vancouver Island. Indeed, it is a place where many a french-fry is fried. Joe’s Hotdogs, however, happens to sell more french-fries than anyone else. And you know what? That’s because their french-fries are good, and because the total experience of Joe’s Hotdogs, including the ocean view, is a positive one.

It doesn’t necessarily mean that Joe’s Hotdogs’ french-fries are the best french-fries in the world. Therefore, it is not a smart idea to assume that, if you have the best X Y or Z product, that the world owes you big volume.

Sometimes, having the best does not translate to having the most profitable or the busiest business.

Joe’s Hotdogs sells more french-fries because the french-fries are part of a whole package. Their french-fries do happen to be very good. Maybe they’re the best. Maybe they are not the best, but they are very good french-fries, served by friendly people with an ocean view, and you can get a hotdog with homemade relish made from locally-grown cucumbers. Those french-fries, as part of that whole Joe’s Hotdogs experience, happen to be the best selling french-fries on the island.

Joe's Hotdogs video segment 5 of 9

2011-10-21T20:02:00.000-07:00

Click on the title to watch the video on YouTube.

Once you get up there, you see other people – other people apparently enjoying themselves. That’s a sign.

Sometimes, all you need is to see or to know that there are other people like you (sometimes not like you) who are enjoying an experience – so much that you become interested in trying that experience. All that many consumers need to know is that there are third parties interested in what the seller offers, rather than being persuaded that they themselves should be the pioneer to try out the product.

Another lesson to learn from this story is that, sometimes, authenticity and uniqueness are themselves strong selling points. Homemade relish from locally-grown cucumbers might be all that some people need to get them to order a hotdog.

The relish isn’t necessarily claimed to be the best relish in the world, and it isn't necessarily award-winning relish, and nobody ever said that locally grown cucumbers are anything special. However, the novelty or uniqueness of homemade relish from locally-grown cucumbers is a draw for some folks. Authenticity is, generally, a draw for business. People like to buy the real thing.

If you can present what you are offering as the real thing, authentic or heritage or, in some way or another, attractive because of its novelty or specialness, then you do not need to convince the buyer that it is the best relish, or the best anything else, or that it is the cheapest. You don’t have to offer a guarantee or a warranty in some cases. Just the idea that it's authentic, that it's original, is enough.

I didn’t mention that the relish was good, but you ordered a hotdog, didn’t you? A veggie dog, that is. You read that the relish was homemade, which has an air of authenticity about it, and locally grown cucumbers sound like something special, too.

Joe's Hotdogs video segment 4 of 9

2011-10-20T19:02:00.001-07:00

Click on the title to watch the video on YouTube.

The sign saying “this way up” was all that you needed to go up to Joe’s Hotdogs. There didn’t have to be someone standing there waving you up the bluff. There didn’t have to be a sign saying "Happy Hour discounts until such-and-such a time." There didn’t have to be any incentive for you to go to Joe’s Hotdogs and order your ten-to-twelve dollars-worth of food – other than your own curiosity about the Joe’s Hotdog experience. So, “this way up” was all you needed to interrupt your wonderful walk, along the beach on Vancouver Island, and go to check it out.

The sign only had to say Joe’s Hotdogs to bring to mind a whole menu. Which turned out to be much more various than just hot dogs. You didn’t need any incentive other than your interest in the Joe’s Hotdogs experience.

All Joe’s Hotdogs needed was a sign for you to know that he or she is there; all you need to know is the way to find Joe’s Hotdogs. Specifically, this is the path up the bluff to go find him. No flashing lights. No people waving you in unnecessarily. This may go to show you that sometimes coupons and "Sale Ends Friday" or other kinds of buyer incentives are extrinsic motivations that people don’t need, because, if they are intrinsically motivated to explore your business, or to check you out, then they don’t need extrinsic motivations.

Extrinsic motivation is never heartfelt. Loyalty is.

Many companies use discounts and "Sale Ends Friday" tactics, and other extrinsic motivations, to get people to spend money with them unnecessarily. In fact, sometimes it is a little bit too much. People are often turned off by "Sale Ends Friday" and things of that nature.

Somebody’s own hunger, by the way, is a great way to sell food.

Joe's Hotdogs video segment 3 of 9

2011-10-19T17:43:00.000-07:00

Click on the title to watch the video on YouTube.

Let me share with you, now, some lessons built into that story, which apply to a variety of businesses in a variety of situations. Not just hotdog stands, and not just businesses on Vancouver Island.

Well, first of all, there is encountering the concept: Joe’s Hotdogs.

As you were walking along the beach, you started running through your mind what your order might be, even though you had already decided that you didn’t want a hotdog. You thought of the possibility of foot longs, veggie dogs, and smokies, even though you don't know what smokies exactly are. You ran through a bunch of possibilities as to what their core service or core product was. The sign just said Joe’s Hotdogs.

Heck, you don’t even know if there is somebody named Joe who works there. Maybe it’s a man named Joseph. Maybe it’s a woman named Joesphine or Joanne. It doesn’t matter. The name Joe’s Hotdogs brought to your mind a whole line of hotdog-type products.

Most people in our culture assume that where you can buy french-fries, you can buy coffee, tea, iced tea, juices, and various types of pop. These things can be assumed in our culture from a place named "Joe’s Hotdogs." What would Joanne’s Handbags do?

Joe's Hotdogs video segment 2 of 9

2011-10-18T20:22:00.000-07:00

Click on the title to watch the video on YouTube.

So, you step up to Joe’s Hotdogs counter and you order some french-fries. You notice a sign saying that they have homemade relish from locally grown cucumbers. You think to yourself, “I like relish on hotdogs. Let me look at the rest of these condiments.” You also notice that they have a variety of different buns. Because of all the enthusiasm for the french-fries, you order some with a dog and the homemade relish from the locally-grown cucumber, and of course, you order a beverage.

You end up spending ten dollars at a place where you had already decided you didn’t even want to go. There you are, standing there spending ten dollars.

You sit down to eat your food and you notice that there is somebody else coming up the bluff, just as you did, from the beach. They are just standing there checking it out, and you notice that person might be doing the exact same thing you just did: coming up the bluff out of curiosity. By-golly, maybe that person is going to spend ten dollars trying out Joe’s Hotdogs, even though they don’t have an appetite - just like you.

You dig into your french-fries and your veggie dog with the homemade relish. You resolve to yourself, “I am going to remember this place. I’m going to come back. I might tell my friends or bring family.” So, you bought a meal that you hadn't intended to, but hey, the service at Joe’s Hotdogs seems to be friendly, they seem to have happy people, there is enthusiasm for the fries, and you feel like you have really discovered something good. You are glad you made the hike up the bluff to Joe’s Hotdogs.

So that’s the story about the discovery of Joe’s Hotdogs.

Joe's Hotdogs video segment 1 of 9

2011-10-17T20:54:00.000-07:00

Click on the title to watch the video on YouTube.

The Joe's Hotdogs story has two parts.

The first part consists of a little journey along a beach, an exploration of thoughts and feelings on the discovery of Joe’s Hotdogs on this walk along the beach.

The second part of the Joe’s Hotdogs story is further exploration of those thoughts and feelings and their business implications. They are business concepts applicable in many different types of businesses serving many different markets.

So, you are taking a walk along a beach, let’s say on Vancouver Island, Canada. As you walk along the beach, you notice a bluff to your left and the ocean to your right. On top of the bluff, there is a sign that says "Joe’s Hotdogs".

You are not really looking for a place to eat, but the Joe’s Hotdogs sign has come to your attention. You decide, "I’ve already had my breakfast and I’m not hungry for lunch yet. I’m here for a beach walk, not to eat. Besides, I don’t feel like eating a hot dog."

As you walk along the beach, you begin to think to yourself, "If I were to order something from Joe’s Hotdogs what would I order?" Well, you might want a hotdog, you might want a footlong, you might want a veggie dog, or you might want a smokie. (I don’t know exactly what a smokie is, but it seems to be the kind of thing people buy from hotdog stands).

Well, you'd probably want a beverage with it. Maybe you are a coffee drinker, or a tea drinker, or an iced tea drinker. Maybe you'd prefer some kind of pop or juice. Would you like fries with that, or would you like onion rings? If you ordered a hotdog, maybe a veggie dog or a footlong, which garnishes would you put on your dog? Maybe you like pickles or relish. Maybe you like a particular variety of mustard. All these things rest in your mind as you walk along the beach.

Then, you notice a sign saying “This way up.” It doesn’t specifically say, "Joe's Hotdogs, this way", but you noticed that Joe‘s Hotdogs is on top of the bluff, and the path leading upward seems to be a fairly well-worn path. You see some people up there, and since the beach looks pretty much the same ahead of you as it does behind you, out of curiosity you walk the path up the bluff and you discover that there is a dozen or so people standing around this little hotdog stand that looks sort of like a little hut overlooking the ocean.

People are enjoying all types of hot dogs and drinks: different sodas and colas, different types and sizes of hotdogs with different garnishes on them. Some people are eating onion rings, some are having french-fries, and you happen to notice that there are some people ordering french-fries only. There seems to be some enthusiasm for the french-fries at Joe’s Hotdogs.

So, even though you just decided a few minutes ago, on your walk along the beach, that you really didn’t want anything from Joe’s Hotdogs, here you are, having climbed up the path on the bluff along with a bunch of people who seem to be enjoying themselves, and you’re curious. “Well gosh, maybe Joe’s Hotdogs’ french-fries would be good, even though I have already had my breakfast and I am not all that hungry for lunch. Maybe I should try Joe’s Hotdogs because I might want to come back some other time and I'll need to know if the hotdogs are worth the climb up that steep path.”

British Columbians Vote Down the HST

2011-08-27T10:24:00.000-07:00

August 26, 2011: Through a province-wide referendum, British Columbians voted to extinguish the much-hated Harmonized Sales Tax.

For months prior, discussion focused on British Columbians rejecting the 12% sales tax primarily as an emotional rejection of the government's manner of introducing it. It was not directly addressed in the governing party's election camapign. After introducing it, the government began defending it at every opportunity, spending millions of taxpayer dollars mostly with what was interpreted as a "We know tax policy so you just accept it as good" message.

The combination of 7% provincial and 5% federal sales taxes still applies to a greater variety of transactions than before the HST was introduced over a year earlier. The BC government is expected to begin a many-month-long phase-out the HST by this year's end.

The BC premier who brought in and defended the HST (Gordon Campbell) stepped down from office months before the 8/26/11 referendum results could be announced. The premier taking his place (Christy Clark) saw three members of the BC legistative assembly bow out also, though in weeks much closer to the referendum that would quash the sales tax in favour of the prior sales tax regime that covered fewer transactions with separate privincial and federal sales taxes.

Most of the public discussion about the HST and the referendum included sentiments summed up thus: "The government has to raise revenue somehow to pay for all of the programs that people in the province benefit from. Taxes are the most accepted way for governments to raise revenue. They tax people's incomes and they tax sales. This just happened to be an unpopular example of a government doing what governments have to do to fund provincial programs."

The photo accompanying this blog post depicts Henry George in his younger years, around the time when he had an historical paradigmatic insight about how governments ought to raise revenue in accord with intuitive principles of fairness, equity, and preserving incentives for people to produce wealth.

My central problem with the HST was not how or when it was introduced. My vote in favour of extinguishing it was not, as many have suggested, one more way of kicking former premier Gordon Campbell. Rather, the HST and nearly all of the discussion about it reflect a faulty paradigm.

As my letter to the BC government in the preceeding blog post discusses, there is a whole other paradigm for viewing public revenue and taxation. It has won the backing of an impressive list credible champions for centuries. Yet, it has also been pushed aside (see The Corruption of Economics).

BC need not think simply of how to replace the revenue of the HST. That evokes the same faulty paradigm again. Rather, BC ought to reconsider the whole paradigm of taxation and public revenue that made a 12% sales tax (among others) appear to be good tax policy. Indeed, we would all be wise to reconsider the georgist paradigm. Then, all could benefit as taxes could harmonize with justice.

- Glenn R Harrington

Recommended reading: "Progress & Poverty: An Enquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Want - The Remedy" by Henry George

- GRH

Letter to the government of BC against the HST

2011-05-27T11:50:00.000-07:00

Here appears my letter to the member of the British Columbia legislature who 'represents' me (My home and business are in her riding.) sent with a copy to the BC Minister of Finance. The letter not only opposes BC's much-hated 12% Harmonized Sales Tax but proposes an equitable tax that could stimulate the BC economy, help BC to reduce its provincial debt, and position BC as a progressive place to live and conduct business.

The letter went to MLA Carole James and Minister of Finance Colin Hansen on December 20, 2010. Carole wrote to me 01/05/11 thanking me for the letter and stating that she had passed it on to her party's finance critic. Carole is an opposition MLA. The governing party's finance minister has not yet replied.

In May, 2011, British Columbia's new premier, Christy Clark, upholding her government's defence of the HST after a series of public hearings, suggested that the rate be reduced to 10% if the electorate chooses to keep the HST in an upcoming referendum. Though I consider a reduction to 10% more palatable and less regressive, a reducuton in the tax rate does not address the fundamental problem that the HST taxes the wrong thing: transactions.

Just as the HST persists, regardless of the rate, I persist in asserting that governments ought to swing the axe at all taxes, duties, and tariffs in favour of taxing the 'unimproved' value of land and natural resources. This is the Henry George argument, backed by Milton Friedman, John Dewey, Charles Beard, Douglas MacArthur, Aldous Huxley, Leo Tolstoy, George Bernard Shaw, Joseph Schumpeter, and many others. See the letter here.
_____________________________________________________

Carole James December 20, 2010
MLA for Victoria-Beacon Hill
Victoria, BC
carole.james.mla@leg.bc.ca

cc
Colin Hansen
BC Minister of Finance
Victoria, BC
fin.minister@gov.bc.ca

Dear Carole:

I write to you as a constituent. Like many British Columbians, I dislike the Harmonized Sales Tax, the manner in which the government of BC put it in place, and the manner in which the government has rebuffed criticism about it. It also concerns me that British Columbians have yet to hear anybody in the legislature resolutely propose superior means for the government to raise the revenue necessary to serve the province, particularly once the HST is eliminated. This concern motivates me to write to you with just that: a resolute proposal for a superior tax.

It is my hope that this letter prompt enquiry into what I propose. The next BC government might then adopt it to the benefit of all thereby positioning British Columbia as Canada’s most progressive province as taxation is concerned.

Before I quote the writings of economists of the 18th, 19th, 20th, and 21st centuries in a chorus of support for what I propose, first a simple assertion: Taxation should never be regarded simply as a way to raise provincial revenue. Rather, it should always be remembered that to tax is to take from. Thus, the HST takes from the purchase and sale of goods and services. Likewise, tax deducted from paycheques is always money missed by the person who earns it. There is a better way.

The 18th century economist Adam Smith understood something about taxation that the government of BC ought to know. Smith devoted much of his magnum opus, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), to government revenue and the best methods to collect it.

In his analysis of taxation, Smith applies four criteria for a good tax to conform to (p 350-2):

1. "The subject of every state ought to contribute toward the support of the government, as nearly as possible, in proportion to their respective abilities.
2. The tax each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, and the quantity to be paid ought all to be clear and plain to the contributor and to every other person.
3. Every tax ought to be levied at the time, or in the manner in which it is most likely to be convenient for the contributor to pay it.
4. Every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible, over and above what it brings into the public treasury."

On evaluation, just two objects of taxation get Adam Smith's backing:
• luxury consumables.
• land value.

Taxes on luxuries, including tobacco, Smith finds excellent because no one is obliged to buy luxuries. Also (p 401): "Taxes upon luxuries have no tendency to raise the price of any other commodities.”

Smith has more praise for a tax on land value (p 370): "[Land values] are a species of revenue which the owner, in many cases, enjoys without any care or attention. The annual produce of the land and labour of the society – the real wealth and revenue of the people – might be the same after such a tax as before. Ground rents and the ordinary rent of land are, therefore, perhaps the species of revenue which can best bear to have a peculiar tax imposed upon them."

Smith used the term “ground rent” to refer to the economic value of land. Land could be the location of a business, the address of a residence, agricultural soil, or any site put to any other use. Other classical economists define rent in much the same way, though more inclusively.

In The Science of Political Economy (1898) Henry George defines land as everything provided by nature: any location and all natural resources that can be acted upon (p 408-9). In Progress & Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth… the Remedy (1879), George defines rent as the share of wealth that goes to the owners of land in exchange for the land’s contribution to the production of wealth or creation of value (p 165).

Joseph Schumpeter (1883–1950) was an Austrian-American economist and political scientist. He earned great and widespread respect for, among other things, his magnum opus: A History of Economic Analysis. Schumpeter regarded Jacques Turgot (1727-81) as the greatest 18th century economist; not Adam Smith. Referring to land-value taxation, first proposed by Turgot, Smith (Wealth of Nations, p 355) calls it a “very ingenious theory.”

Thus, Turgot is regarded as a more important economic thinker than Smith by the likes of Schumpeter while Smith himself pays high compliment to Turgot’s proposal of taxing land values exclusively. Turgot’s Reflexions sur la Formation et la Distribution des Richesses (1766) predates and is echoed by Smith’s Wealth of Nations.

Mason Gaffney is a scholar of Turgot and of George, specializing in Georgist perspectives on land use, economics, taxation, and public policy. Gaffney is an Economics professor at the University of California, Riverside. He was Director of the BC Institute for Economic Policy Analysis (1973-76), founded by the government of BC when David Barrett was Premier. Robert Williams, BC’s Minister of Environment, was the moving spirit. On November 21, 2010, Gaffney wrote, "The government appointed me a member of a Royal Commission to recommend property tax reforms in BC."

In The Corruption of Economics (1994), Gaffney writes of Jacques Turgot, “an outstanding public servant , economic philosopher, and social reformer in 18th Century France,” as the predecessor to George in advocating the taxation of land values to the exclusion of taxes on the earnings of labour and of capital. (Land, labour, and capital being the three basic factors in the production of wealth.)

A Victoria resident in 1858, Henry George gained international fame for his thoroughly-reasoned proposal to tax land value and discontinue all other taxes. In the 1890s and early 1900s, George gained millions of admirers in many countries. The list now includes Mark Twain, Leo Tolstoy, George Bernard Shaw, Albert Einstein, Helen Keller, Martin Luther King Jr, Ralph Nader, Winston Churchill, and may others.

George’s impeccable logic and stirring oratory also garnered enemies of his work. These included railroad baron Jay Gould, oil magnate John D Rockefeller, and banker JP Morgan.

The Corruption of Economics explains how neoclassical economics was introduced as a paradigm of economic thought intended to deflect George’s reasoning and to frustrate those attempting to implement George’s proposal. Rich men who controlled large amounts of natural resources paid smart men to muddy the waters of economic thinking after George had become famous, so that their privilege and the systems allowing them to profit by it might remain unchallenged.

Milton Friedman (1912-2006) was an Economics professor at the University of Chicago and recipient of the Nobel Prize in Economics. In an interview with The Times Herald of Norristown, PA, December 1, 1978, Friedman says, “There's a sense in which all taxes are antagonistic to free enterprise, and yet we need taxes.” He adds, “So the question is, which are the least bad taxes? In my opinion, the least bad tax is the property tax on the unimproved value of land, the Henry George argument.”

Thus, the argument for a single tax on the value of land has the backing of Turgot, Smith, George, Schumpeter, Friedman, and Gaffney – all respected thinkers on matters of economics and public revenue – as well as many others with good reputations concerning economics and justice.

As The Corruption of Economics argues, those who stand to profit hugely by the private control of what nature provides have a significant incentive to obstruct and prevent land value taxation. Yet, only land value taxation stands up to Smith’s and George’s criteria for a good tax, with the endorsement of the likes of Friedman, Schumpeter, Gaffney, and others who study Turgot and George without their thinking biased by the muddy waters of neoclassical economics.

Sales taxes, including HST, enable the government to tax commerce and production instead of land values. Yet, land and natural resources are provided by nature alone; the value of land and natural resources values is created by the community – not by those who may own them. This is why those who own and those who speculatively buy and sell land and natural resources prefer sales taxes, payroll taxes, and such, for they spread around the burden of public finance, albeit less equitably.

In his magnum opus, Progress & Poverty, George cites four canons of taxation (p 408-9):

“The best means of raising public revenues will be one that meets these conditions:
1. It should bear as lightly as possible on production, least impeding the growth of the general fund from which taxes must be paid and the community maintained.
2. It should be easily and cheaply collected, and it should fall as directly as possible on the ultimate payers, taking as little as possible from the people beyond what it yields the government.
3. It should be certain, offering the least opportunity for abuse and corruption, and the least temptation for evasion.
4. It should bear equally, giving no one an advantage, nor putting another at a disadvantage.”

On evaluation, just one object of taxation gets Henry George's backing: land value.

Moreover, wherever it is practised, land value taxation offers these four benefits:
• stimulation of economic activity.
• more efficient use of land and natural resources.
• a virtually inexhaustible source of government revenue.
• more equitable sharing of the burden of government revenue.

As reasoning in favour of land value taxation is concerned, this letter is the tip of the iceberg. It refers to important sources for good economic arguments in favour of land value taxation, though. It is my hope that this letter prompt thorough, unbiased enquiry.

As whole communities and the province as a whole enter the paradigm of taxing the unimproved value of land and natural resources while relieving paycheques and consumer purchases of the burden of taxation, it should come in handy that the BC Assessment Authority has, since its inception, kept in its records assessments of location values irrespective of improvements.

With a global recession still underway including BC, and BC’s economic prospects not their brightest ever, the time is right for the BC government to show the way back to prosperity, with higher wages, lower government debt, and the burden of taxation lifted from labour and capital. This will occur when publicly created value – the value of land and natural resources before improvements – is the sole source of public revenue. This is what I propose to you.

Please look into this now and make it happen for the long-term benefit of all British Columbians.

Sincerely,

Glenn R. Harrington, Victoria

How to Increase Cost-effectiveness in Small Business Marketing

2011-03-30T16:53:00.000-07:00

For an independent business to succeed, it must invest steadily in marketing. The on-going success of many companies in many industries over many years has proven this. Yet, since the global recession that began in 2007, many companies have sought ways to get high returns from a pared-back marketing budget.

Saving money and getting more sales must somehow go together. Let’s review three common tips, then let’s consider a more fundamental approach to achieving this objective.

option: frequent news releases
Some advise companies of all sizes to issue a news release whenever anything possibly newsworthy happens in the company. Local media could turn each news release into free publicity.

In practice, this is generally not so useful. Local media typically use a tiny minority of the news releases they receive. Thus, there is a high risk of wasting the time taken to write and submit news releases. Also, any company frequently issuing news releases could gain an unwanted reputation with news editors – like the boy who cried wolf.

option: networking in the community
Some say that networking in the community is the best way to get new business. You get to meet people in person and everybody prefers to do business with people they like and trust. While this is true, steadily bringing in new business from networking takes an extraordinary combination of charm and persistence.

Those who seek new customers at business mixers and conferences often find that most people they meet have the same intent: to get new business – not to find a new supplier. Working the room at grand openings, parties, and annual general meetings takes determined assertiveness. The chances of significant payback are often like finding a needle in a haystack.

Success at networking in the community requires a unusual blend of smarts, charisma, and perseverance. Additional time and energy with some acquaintances could eventually lead to sales, though. Any company seeking new business at low cost should understand this.

option: just getting your name out there
Some suggest that simply keeping the company’s name before the market’s eyes is essential to success. This, too , is easier said than proven profitable for a small business.

Many find that applying this truism on a modest budget quickly becomes hard to justify on the basis of traceable return on investment. Even those who monitor and adapt to the statistics from pay-per-click internet advertising find that awareness-based marketing can involve a high cost per sale.

there must be a way
Once issuing frequent news releases proves unreliable; once networking in the community proves best for persistent, charming extroverts; once casting a wide net proves hard to justify, a common objective reappears. More good sales at lower cost per sale call for a more targeted, more fundamental approach.

two pillars
To rise to this challenge effectively starts from:
• certainty about your ideal client profile.
• a key message that intuitively positions your product or service as the best remedy for the problems that the ideal client needs solved.

the customers you want more of
An ideal client profile covers the essential characteristics that the best customers share. If the clientele falls into multiple categories, then have an ideal client profile for each.

A salon and spa, for example, might have an ideal client for hairstyling and manicure-pedicure work. This would differ from the ideal client for massage and bodywork. There would be notable differences between young men for hairstyling and retired women for reflexology. Each ideal client profile is a distinct bullseye for the company’s targeted marketing.

how they find you irreplaceable
For each ideal client profile, there is a view of the customer experience – why they consider the company the go-to source for the satisfaction it provides. As this becomes clear, remember this axiom of statistical reliability:
• The higher the sample size, the lower the margin of error.

Learning why your best customers bypass your competitors, like defining your ideal client profile(s), requires gathering and wisely interpreting market intelligence. This is best done with the care or under the guidance of an unbiased expert.

make the right promise to the right people in the right way
With a credible, meaningful, authentic key message – ideally expressed in the words that the best clients use – any business could claim its turf as must-see experts, or the leading product, or the highest overall value.

Getting to know your ideal clients should reveal how to reach more people like them. This should include how to communicate key messages to the target market effectively.

hit the bullseye in one shot
If the company’s key message is like an arrow and the ideal client like the bullseye of the target market, then effective, economical marketing is like archery. Be a good archer and succeed in times of austerity.

– Glenn R Harrington, Articulate Consultants Inc.
www.articulate.ca/marketing.html

An Expert Opinion on Issuing An E-newsletter

2011-03-01T10:15:00.001-08:00

On February 28, I delivered a Findings & Recommendations report to a client. This client, incidentally, has had me engaged for a few months as a consultant to refocus his company's marketing efforts and renew its brand-management efforts covering an important profit-center of the business - an important specialty within the company's general offerings. This Findings & Recommendations report, however, was my first not focused on that specialty, but on the company's new website under construction.

Among my recommendations is not to issue a free e-newsletter, as the home page under construction would offer. The next day, my client wrote to me, "Do you really disagree with a free e-mail newsletter that is educational and simply provides industry information?" For the benefit of all, my reply appears here:

"Thank you for asking me about this.

Yes. Having assessed and addressed newsletter problems for independent business people sine Jan. 2, 1996, I assure you that the vast majority of newsletters take way more time and effort than the issuers expect. Most give up before they manage to get net returns on their investment. This does not bode well for their readers' perceptions of the company.

Really good newsletters are like apple trees. Once you plant the sapling, it needs your diligent care for a few years before you can harvest apples from it. Years more til the harvest is really abundant. If you keep diligent care of it consistently for enough years, then it should give you an abundant harvest for decades. An apple a day for the whole family forever.

Most newsletter issuers downgrade their investment in their newsletter to as low as possible after the first few issues, after they find that it just doesn't pay for itself for a while. In terms of long-term outcome, that is a fatal error. Most cancel their newsletter after reducing the investment still yields low or immeasurable net return.

You can read my articles on how to solve all of these problems at this web page.

However, I am concerned that your market - most importantly, people who already have some variety of business relationship with [the company] - should already be sufficiently communicated to by [the company] through other means. In this case, there should be no void that a newsletter must fill.

Have people who fit your ideal client profile been telling you that they want you to provide them with industry information, or that they feel under-informed with industry information? If so, then maybe a blog would work for you. Here's one.

More important than that, competitors could subscribe to [the newsletter] like bees to a flower, taking all they can for their own use at your expense. If you make the content 'safer' to adapt to competitors being among your readers, then the newsletter could just turn out to be a flyer. In this case, maybe you should go straight to a subscription flyer that has newsletter-like qualities. Is there a business case for that?

I recently conducted a survey on Linked-In that asked people how many e-newsletters they subscribe to, how much un-read e-mail they generally have each day (i.e. always some unread - how many), and how much e-newsletters contribute to their in-box backlog. The survey was treated like a hot potato (many views, few responses) apparently indicating that few people like to admit their answers where their Linked-In connections can see.

If, after further consideration, you want a newsletter or something like, then maybe I can help. What do you think would be a fit?"

Sincerely,

- Glenn R Harrington
Articulate Consultants

Three Reasons Why Independent Businesses Need Authentic Key Messages To Succeed

2011-02-22T19:32:00.000-08:00

Three Reasons Why Independent Businesses Need Authentic Key Messages To Succeed

1. Avoid Direct Competition.

Whether your company operates clothing boutiques, sells insurance and investment products, or makes violins by custom-order, it’s the same. The availability of substitutes or alternatives has grown while communications technology has rendered the world a global village. Because of this, a company not seen as irreplaceable (must-see experts, the leading product, or the highest overall value) increasingly becomes positioned as one of many.

This is how trying harder and doing things that reduce profit margins (e.g. discounting prices, reducing commissions, providing free shipping anywhere) become default ways of competing for business. These can reduce overall profitability and can shorten the life of a company.

With credible, meaningful, authentic key messages, an independent company can claim its turf as must-see experts or the leading product or the highest overall value for its unique value proposition. By doing this effectively, not only can a company avoid direct competition but even grow in service to its niche, serving a broader geographic market than it would serve otherwise, courtesy of the same communications technologies that make intelligently focused niche marketing so important today.

2. Deepen customer loyalty.

A key message concisely communicates identity and purpose, ideally in terms that the target market accepts instantly. Thus, not only can an effective key message (e.g. name, motto, value proposition) gain intuitive acceptance but it can also strike a chord with the values of the market.

Key messages that authentically affirm and harmonize with the market’s values can deepen the sense of personal alignment that loyal clients already feel. This can better ensure their continued purchasing, more business per customer over a given period, and more referrals.

For example, the motto Nothing runs like a Deere from John Deere Corp has transformed some loyal users of John Deere equipment into more dedicated customers. The slogan is so right for some people that it catalyzes their brand loyalty to the point where they do not envision themselves owning any other brand. They talk like it, too. This makes them like an unpaid sales force for John Deere. The rightness of that motto for them encapsulates an overall-positive brand experience into something more.

3. A narrower focus gives a broader reach.

Independent businesses that use authentic key messages to distinguish themselves from competitors and develop greater depth of relationship with their customers often find that narrowing their focus (e.g. from generalists to specialists) is inevitable.

To some, a narrower focus intuitively means limitation and sacrificed opportunity. In some cases, this could be true. On the other hand, independent businesses that narrow their focus often discover that the strengthened status as a specialist brand draws more new business from further afield.

Suppose you go to your family doctor with some health problem. The doctor prescribes treatment and instructs you to return if the condition does not improve in a short time. After a short time, you return with poor results. The doctor then refers you to a specialist.

It’s inconvenient to see the specialist. Yet, you accept this. Care for your ailment has escalated. The specialist assesses your situation and refers you to a more specialized expert in your situation.

Further inconvenience to see the third doctor does not stop you. According to the first two doctors, your medical situation makes it necessary. You view the third doctor as offering the best care and of highest importance in treating your condition.

This principle applies in business situations too. The more a company is perceived as having special expertise, the higher the market values its products and services and the broader its geographic reach.

For the independent business that intelligently uses authentic key messages in its marketing and brand management, competition can be reduced or avoided entirely, customer loyalty increased, and customers willing to pay more could come from farther away. These are three reasons why independent businesses need authentic, compelling key messages to succeed today.

– Glenn R. Harrington, Articulate Consultants Inc.

The Articulate Consultants Overview of Key Messages

2011-02-18T15:04:00.001-08:00

“The future of the book is the blurb.” Marshall McLuhan said this in his 1965 book, The Medium Is The Massage. McLuhan foresaw how communications technology would create a global village where succinct, convenient communications would be favoured and bring people together. Now, the right key messages can make those who stand behind them stand out and prosper.

Global village or not, we live in an era when many people encounter much more information communicated to them than people did in any prior era. This is why those who intend to achieve more through their communications must strategically consider what to say, how to say it, who should receive it, and by what media.

A few words matter, particularly in business, where the right few words can differentiate a company from its competitors. Concise, meaningful, authentic key messages are more important now than ever.

what key messages are
Key messages are words that convey the essence of something with a distinct identity and purpose. It could be a company, a team, or other organization; a product line, a project, or discrete bundle of services; or a mission, a philosophy, or set of values. A key message puts a brand into a few well-chosen words.

A key message could be:
• a single-word expression.
• a phrase.
• a single-sentence declaration or exhortation.
• a statement of a few poignant sentences.

Examples:
• name.
• nickname.
• motto.
• slogan.
• mission statement.
• statement of core values.
• vision statement.
• elevator speech.

what key messages do
A key message concisely communicates identity and purpose, ideally in words that the right people accept instantly.

what makes a key message key, or how it is important
Key messages unlock awareness and understanding of identity and purpose, creating clear understanding in a few words. Key messages promote brands to target markets.

what makes a good key message good
In any context, a good key message clearly states the central idea and identifies the benefit it offers. In the context of marketing and managing a brand, a good key message meaningfully identifies the brand and concisely states what it means to the market – ideally positioning it as irreplaceable.

what makes a bad key message bad
A bad key message identifies the brand or central idea in a flatly factual way, lacking a hook. It might state the purpose or intent in a way that lacks any special or unique quality. A bad key message could even repel the people meant to be attracted.

how long key messages last
Just as a slap in the face is always memorable, so a remarkably ill-timed, improper, weak, or otherwise out-of-sync key message leaves a lasting impression – even among those who push it away.

A key message that goes unnoticed because of its irrelevance, blandness, or mediocrity has minimal impact – sometimes despite persistent promotion. When promotion stops, the key message could already be dead.

Just as a sweet melody seems precious to many listeners, so an on-target key message can gain supporters rapidly. A strong enough key message can gain self-appointed promoters who help its spread. (It “goes viral.”) In such cases, a key message can last an era and seem to have a life of its own.

what difference a good key message makes
A good key message has a way of corresponding with the values or mood of the market so that it touches people as intuitively correct and validating or compelling. Whoever stands behind a good key message could be liked by and even find loyalty among those who respond well to it.

For example, consider how “Just do it” helped a sporting-goods company harmonize with its market and increase loyalty and market share. That slogan has had significant equity value to Nike for years.

how to reduce reliance on luck
Sometimes, those who coin a key message that hits the target only succeed after a few lesser successes. Musicians, for example, can perform good music for years before playing a true hit.

Intelligent trial, testing, and monitoring are second-best only to great luck. This is how a company seeking to stand out in its market and succeed can increase its probability of success by working with an expert in marketing who specializes in key messages.

– Glenn R Harrington, Articulate Consultants

Nine Reasons to Pay A Pro Editor

2010-11-14T11:47:00.000-08:00

Part 1: Five Ways Your Computer Fails You

The five statements that follow point out how spell-check, grammar-check, and style-check tools fail to catch some errors in spelling, grammar, and style. It is possible that the word-processing program you use catches one or more of the errors mentioned here. Even so, the five statements and examples given reveal how software developers cannot replace the expertise of a pro editor. That expertise has been crucial to innumerable writers to ensure that their writing fulfils its potential. Review these and decide whether your writing should proceed toward publication without the input of a professional editor.

1. Spell-check does not recognize the parts of speech.

Practice and advice are nouns. Practise and advise are verbs.
Center can be a noun or a verb. Centre is only a noun.

All four words are correctly spelled and pass through spell-check. Yet, spell-check cannot tell you when a word is the wrong part of speech for a particular sentence.

2. Grammar-check always discourages the passive voice, though it exists for a reason.

Passive: The papers were shipped by courier yesterday at five o’clock.
Active: I shipped the papers by courier yesterday at five o’clock.

The sentence with the passive verb emphasizes the papers being shipped. The sentence with the active verb emphasizes the speaker’s responsibility for the shipping. One could be better than the other for your particular context. By always discouraging the passive option, grammar-check does not support an informed choice.

3. Style-check cannot help you with the logic of your sentences.

Everywhere we looked, there were happy people – even where we couldn’t see them.
This sandwich is big, and Tina is small, so we should leave now.

Style-check passes over some sentences flawed in ways that make readers stumble, including sentences with logical flaws, as in these examples.

4. Grammar-check cannot help you with some examples of subject-verb agreement.

None of those shovels is mine.
Her family has always been supportive.

None is a contraction of not and one. When none is the subject of a sentence or clause, use singular verbs, as with one. Similarly, family, like crowd and other collective nouns, is singular and goes with singular verbs.

5. Spell-check cannot tell you when you use the wrong word.

Lisa drove the car right into the post.
Lisa drove the car right into the past.

If you intend to type post, but enter past, your computer won’t notice the error. Till (turning soil) and til (from until) also slip past spell-check when misused. These are but two examples of many contextually-wrong words that could go before your readers after passing through spell-check, grammar-check and/or style-check tools.

Part 2: Four Ways Friends and Colleagues Can Lead You Astray

The four statements that follow show how editorial review by friends and colleagues generally involves risk to the success of any document. Though a friend, family member, colleague, or other person might provide immensely helpful input toward the success of a document, it also happens that such people become unhelpful meddlers despite the best intentions or qualifications. Even if you consider yourself able to avoid these pitfalls, it is suggested that you never regard the editorial input of a friend or colleague as eliminating the necessity of a professional editor.

6. Many editors edit simply to please themselves.

Friends and colleagues playing the role of editor typically differ from the writer regarding grammar, punctuation, capitalization, spelling, style, or level of detail. This often results in their attempting to correct the document by revising it to their own standards, which might not be correct, consistent, or better than the writer’s standards.

7. Friends and colleagues are often not sure how to improve a document for its intended readers.

The value of an editor comes from improving the reader’s experience of the writer’s work. This requires the editor to know who the target readers are, what they expect, and how to fulfil those expectations. Thus, a book on photography for children, for example, might benefit from a photographer’s input on technical matters only.

8. Subject-matter experts can help you to get facts right but can obstruct your success in other ways.

Colleagues (even subordinates) may bring their own agenda to an editorial review. This can include their meddling in the facts and inserting their own voices as if co-authors. This can lead to the document becoming a distorted patchwork of facts that’s less credible to your readers. Fixing this could take a lot of time and effort, then leave you needing a good editor again.

9. Friends and colleagues often introduce distortions when intending to improve a document.

Regardless of what qualifies a friend or colleague to edit a document, it is common for the editorial role to bring out unhelpful co-authorship. For example, if he or she considers the two topics inseparably linked, the editor might consider it necessary to include discussion of topic Y because the document mentions topic X. Though there could be merit in this, it might take the document beyond the interest or beyond the comprehension of the intended readers. Otherwise, it could make the document too lengthy or out-of-focus.

What you can do.
First, focus on getting the contents of your document as correct and complete as you reasonably can. Then, pay a pro editor for thorough editing. A professional editor can make and suggest revisions more comprehensively, more constructively, and more contextually appropriate than software tools supplemented by a friend or colleague. Once you have integrated the editor’s input, then pay for professional proofing.

- Glenn R Harrington, Articulate Consultants Inc.

Notes from A Wordsmith’s Desk – Part 2

2010-10-21T20:28:00.000-07:00

I am a professional wordsmith and I understand English better than many people do. With a BA in Latin, I sometimes know English spelling and usage better than a dictionary. That is because about 75% of English derives from Latin or Greek. My BA program focused mostly on Latin from first-century-BC Rome. It included studies in Ancient Greek. Hence, my degree work was like studying the DNA of English. This qualifies me to correct or improve word choice in others’ writing.

the practicality of knowing Latin
For example, it gives me authority to advise that circa means around or about. Do not use circa if you know the actual date when, for example, a photo was taken.

questioning dictionaries
I draw upon my knowledge of Latin every day. It qualifies me to comment on English dictionaries that describe rather than prescribe spelling and word use.

the descriptive approach
Nearly all English dictionaries take a descriptive approach to spelling and word use. If you look up a word in one of these, you could find multiple spellings and uses. This can be helpful if you encounter an unaccustomed spelling or use of a word, then look it up and find it associated with a more accustomed spelling or usage.

what’s best
In contrast, prescriptive linguistics provides rules indicating how words should be spelled and used, regardless of what else might work. Hence, while the descriptive approach says, “Anything in this range could work,” the prescriptive approach says, “This is best.”

a lexicographer’s rules
Championed most notably by lexicographer and spelling reformer Noah Webster (1758 – 1843) the descriptive approach can be summed up thus: If a spelling or use of a word appears in a respected publication and is accepted and understood then repeated in other publications with acceptance and understanding over a sufficient time, then it is a legitimate spelling and usage that warrants dictionary listing.

reform for easier English
Webster’s approach to spelling reform focused on the simplification of American English. In this way, he was prescriptive with spelling, though descriptive with usage. His mission was to serve American schoolchildren who would find the path to literacy easier with fewer rules and fewer exceptions.

deviation back to the roots
His advocacy of spelling reform was respectful of the Latin and Greek origins of many English words. For example, the word color is Latin and appears in American English. Colour is British English used in England, Canada, and Australia among other places. Americans use color , labor, humor, and flavor courtesy of Webster and the extensive use of his schoolbooks in the 19th and 20th centuries.

distinctions lost in homogeneity
In Canada, centre refers to a place where people go for a specific purpose. Thus, people go to a gardening centre for gardening supplies. A center is a location equal distance from every edge. A circle has a center. A mall is a shopping centre. Many Canadians forget the distinction in their writing. Because neither spelling is incorrect, they cannot depend on the spell-check feature of a computer program to correct usage. As an editor, I address such matters.

precision lost
Noah Webster found that center could be accepted and understood with both meanings. Hence, dictionaries of American English include center only. Centre is considered a misspelling in the USA. Though Americans gain the advantage of such simplicity, Canadians writers who know the difference can use this knowledge to communicate more precisely in their writing.

make informed choices
Knowing the difference between center and centre is just one example of how making an informed choice about how to spell and use words – which prescriptive grammar books such as Fowler’s Modern English Usage make possible – can help people to communicate more precisely, or with more useful nuances of meaning in their writing.

serve your readers
More useful nuances of meaning might not seem particularly valuable to many – especially people who prefer a simple, pragmatic approach to things. To them, it might not be just cause to spend four years at a university studying Latin and Greek. Still, the very same people do find value when a professional wordsmith makes things easier for them to understand and minimizes the chance for their own ideas to be misunderstood in writing. Accuracy of concept and precision of spelling and usage are indeed valuable.

- Glenn R Harrington
Articulate Consultants
www.articulate.ca

Notes from A Wordsmith’s Desk - Part 1

2010-10-21T12:03:00.000-07:00

In my work as a professional wordsmith, one of the ways I add value to documents arises through correcting or improving the choice of words to express ideas, sentiments, or facts. This article provides an informative glimpse at the process of making such editorial revisions.

correcting, abbreviating
When editorial revision does not involve correction (e.g. the draft says “adverse” where it ought to say “averse” so I make the change) it often involves replacing a broad expression with briefer, more specific terms. For example, if a draft were to say “He said nice things about the speech she gave,” I might rewrite that as “He praised her speech.”

knowing the differences
Sometimes, when I make such improvements, the improvement is not recognized as such. For example, many people use “in spite of” as if it means the same as “despite” and never consider that the two expressions differ in meaning. This article draws attention to such distinctions so that its readers may better serve their readers with better word choice.

Example A
averse – disinterested, avoidant, turned away

adverse – difficult, harsh, turned against

In context: “Fearing adverse weather, they felt averse to sailing.”

Example B
in spite – in defiance, with hatred or malice, against

despite – notwithstanding, turning a blind eye to, regardless of

In context: “Some adolescents act in spite of their parents, despite their dependence on them.”

Example C
complimentary – flattering, lauding, praising

complementary – going with, on the house, free

In context: “She received complimentary comments on her hair after using the complementary shampoo from the hotel room.”

when differences are not recognized
Example C led to some trouble for me years ago because some people looked up the words in their dictionaries and found that the two were listed as merely different spellings of the same word with an inclusive list of meanings. This raises a problem when dictionaries describe rather than prescribe word use (discussed in my next article).

knowing the roots
Despite dictionaries overlooking it, the distinction between complimentary and complementary has an etymological basis. Complementary comes from the same Latin root as complete and plenty. Complimentary comes from French and exemplifies a Latin-derived word altered in meaning and in spelling as part of another language. English gets both words because of their differences in meaning and spelling. Yet, their treatment as merely different spellings of one word likely comes from the concept of a gratuity – when something is given freely as an expression of thanks. Serve your own readers with knowledge such as this and they might owe you thanks.

- Glenn R Harrington
Articulate Consultants
www.articulate.ca

In A Compelling Elevator Speech, Say Why People Buy From You

2010-09-22T11:25:00.000-07:00

In A Compelling Elevator Speech, Say Why People Buy From You

When account representatives, customer service reps, and others in sales find out that they must briefly describe three problems that they solve in emotional terms, they often resist. Some refuse. The other ingredients in the recipe for a compelling elevator speech are: name, rescue statement, and hook question. Nobody who deals directly with clients or customers seems to have a problem with these.

compel action in 30 seconds
Still, to answer the question, “What you do?” in 30 seconds or fewer and compel the listener to ask for your business card, pain is necessary. That is, you must state three discomforts or sore points that you resolve to compel a stranger on an elevator to get your business card before you step off the elevator.

be prepared
Of course, an elevator speech is not just given on an elevator. Nor is it only shared with strangers or people who ask, “What do you do?” This is why it is important to develop a compelling elevator speech and to adaptively find opportunities to use it in a variety of situations.

name the top motivation to buy
This is why it is also important to transcend the objection that describing the problems you solve in emotional terms involves the taboo of ‘being negative.’ In truth, the top motivator for people to buy from you or to make a referral to you is that they want to relieve some kind of pain.

say what hurts
Sales guru David Sandler ranks pain in the present as the top motivator for people to buy. When it hurts now, there is budget and the will to pay for a solution.

red ribbon
The number two reason to buy is pain in the future. When it is going to hurt in the future if you do not do something about it now, then the will and the ability to spend can be strong.

yellow ribbon
In third place of what gets people to buy is pleasure now. Fun, enjoyment, comfort, or thrills right now gets people to open their wallets. Still, this is not as powerful as relieving worry, anger, confusion, aggravation, frustration, stress, or restlessness now or in the future.

green ribbon
In fourth place of what motivates people to buy is pleasure in the future. Expectation of future enjoyment is indeed powerful. A nice vacation, a beautiful wedding, a splendid home, a secure retirement: People save their money for these with hope in their hearts. Savings for these can suddenly become money available, though, when something hurts badly now or is expected to get worse without preventive or corrective action.

arousing interest: fifth place
Contrary to the beliefs of many ad copy writers, arousal of interest or curiosity comes fifth in what gets people to buy. Some ads tell stories like, “My friends thought I was crazy until I told them how great this thing is!” These appeal to the number-five reason to spend.

'positivity' not always best
A top problem for many in describing what they do lies in their insistence on addressing one of the bottom three reasons why people do business with them. They smile and want to be positive. They want to express infectious enthusiasm for the wonderful goods and services that they sell. One example of what trumps this: “People come to me worried about their career.”

the unexpected works
A top reason why many of the same people oppose following the formula for a compelling elevator speech is that they consider it improper to talk about their customers having ‘negative’ feelings. This is particularly true when they’re asked “What do you do?” This is why the straight and unexpected truth works.

break the ‘negativity’ taboo with relevance
Though counter-intuitive for some, a compelling elevator pitch is really this simple: When you give your name, identify in emotional terms three problems that you solve (why people buy from you), state that you solve such problems, and ask if any of this is worth discussing, then you answer the question meaningfully. These are the steps in a compelling elevator speech. Do this well and people will ask for your card.

what works
This is how to tell people what you do in a way that anybody could comprehend in terms of relevance to themselves and those close to them. Customize the three pains to your understanding of the person who asks and they just might ask you another question: “May I have your business card?” That is when an elevator speech is compelling.

- Glenn R Harrington, Articulate Consultants
http://www.articulate.ca/

The Whole Picture: “The future of the book is the blurb”

2010-07-29T10:01:00.000-07:00

an inconvenient irony
If Marshall McLuhan’s famous book, The Medium is the Massage, were itself a blurb, then it would be easy to find the page where this famous statement appears: “The future of the book is the blurb.” Having no index, though, the book isn’t convenient enough for me to verify the source! A blurb, of course, does not need an index.

a witty hyperbole
McLuhan’s statement was more hyperbole than prediction. Still, it has lasted some forty years because it states the obvious poignantly: As more and more information becomes available, efficient presentation becomes increasingly important. Concision and convenience really matter, but not so much that they should compromise good reading. That’s why the future of the book will always be the blurb.

a simple paradox
Few ideas fit into neat koans. And while efficient writing is not necessarily terse, modern readers tend to dislike wordy writing and extraneous content. Truly effective presentation, therefore, requires knowing the message, the audience, and how to make writing on any topic appeal to a given audience.

words to remember
As McLuhan pointed out in his own way, audience-appropriateness is crucial to the effective presentation of ideas. Often, it requires numbering lists and recasting jargon into plain English. Sometimes, it requires adding a few good pictures. Or an index.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Do Not Write As You Speak

2010-07-12T13:13:00.000-07:00

To write as you speak can be a great way to get your thoughts down. It can also be helpful in overcoming writer’s block. Many people swear by it as the best approach to writing. Their readers are seldom as happy, though. Indeed, writing as you speak can be a communication disaster. This article makes three arguments against writing as you speak and prescribes the qualities to look for in a professional wordsmith.

1. Good writing is economical.
Generally, we use many more words to express ourselves in spoken English than we do in written English. So, if you write as you speak, you probably demand more of your readers’ time and patience than necessary - while taking up more paper or screen space than necessary. Writing as you speak can be uneconomical and tempt your readers to skim.

2. Good writing is crafted for readers.
When we speak, we generally use inflections of voice, body language, and responses to listener feedback to help us communicate effectively. Yet, when you transcribe what you would say to a listener, you preserve the words only. Thus your message suffers information loss.

This information loss can make your writing more difficult for your readers to follow - especially those who do not know you well enough to imagine your characteristic voice inflections and body language as they read. Thus writing as you speak yields incomplete communication that leaves the reader to compensate for missing interpretive support. This can cause misunderstanding.

3. Good writing serves a diverse audience.
Your individuality affects the choices you make as a writer and the needs you have as a reader. This limits effectiveness as a writer in ways that only a self-aware expert wordsmith can reliably relieve.

When we speak, we reflect our individual cognitive (thinking and learning) tendency or style. The four basic cognitive styles are:

• abstract sequential.
• abstract random.
• concrete sequential.
• concrete random.

Thus, when you write as you speak, you have only a 25% chance of communicating effectively in sync with any given reader’s cognitive tendency or style. Writing as you speak would not serve best the majority of readers who do not share your cognitive tendency or style.

Not only does every person tend to one of these four basic cognitive styles but each of us also has other tendencies for processing information. For example, the Myers-Briggs Type Indicator test indicates 16 different personality types.
The field of Neuro-linguistic Programming (NLP) identifies and ranks four ways in which we process information:

• visual.
• kinesthetic.
• auditory.
• audio-digital.

NLP testing can reveal any writer's ranking of the four information processing styles, Myers-Briggs testing can identify any writer as having one of 16 personality types, and we all tend to prefer one of the four cognitive styles above. These are but three ways to identify how we choose to present information to others and how we prefer information presented to us. In short, every writer brings individual biases to his or her own writing.

Except for people who have the self-awareness that such testing provides and who pay attention to how their individuality affects their writing, these biases remain invisible to the writer. Because of these biases, the effectiveness of anybody's writing is limited - more or less limited with each reader according to how much or how little the reader shares the biases of the writer.

summary: A good writer accommodates the situation.
When you write to somebody who knows you well or who happens to be similar to you in how you process information, then writing as you speak could succeed like nothing else. However, when you need to communicate important information effectively, the odds are against you when you write as you speak.

A professional wordsmith who is not only self-aware but also knows how to write to accommodate diversity can avert the problems caused by individual bias and serve any audience. That writer ought to write economically with the awareness that words are the only means to communicate information in writing.

tip: Get a wordsmith who approaches writing as a skilled craft.
Don’t write as you speak or waste your precious time trying to write like a professional wordsmith. When you really need your audience to understand, have a professional wordsmith - an Articulate wordsmith - craft your message for you in sync with service to your whole audience.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

The Sketch Artist: A Parable about Pricing

2010-06-29T09:41:00.000-07:00

Paris, France, 1948: A young woman strolls along a downtown street and notices a man busily sketching a bowl of fruit. She stops.

“Do you sketch portraits?” she asks the man. “Yes, I do,” he replies, not looking up from the paper.

"Will you sketch a portrait of me, for me to take to my father? I am on my way to him now.”

The artist looks up from his drawing. “Yes. Have a seat.”

Three minutes later, the man presents a portrait to the young woman.

“It’s very good,” she says, not noticing the signature: Picasso. “How much do I owe you?” He replies, “Three thousand francs.”

“Three thousand!” she exclaims. “But it only took you three minutes!”

Looking into her eyes, the artist retorts, “No. It took me all of my life.”

The final line in this story: "No, it took me all of my life," is the perfect direct response to any suggestion that the amount of time taken to perform a task is a good gauge of the value provided.

Though a few readers might conclude that the fame of the artist determines his billing rate at 1,000 francs per minute, this is not the point.

Rather, a very good portrait drawn quickly can be worth a lot of money. If you question the price based on the short time spent, then you ought to consider that developing the talent and expertise that enable a very good portrait drawn quickly takes a much longer time than the time spent performing the task.

This shifts focus from time spent performing to value provided in the result of the performance.

When services are performed that depend on talent and expertise, the time spent performing is only an arbitrary gauge of the value provided. What is it worth to you to have a talented expert satisfy a need promptly?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

The Carpenter’s Invoice: A Parable about Pricing

2010-06-28T09:56:00.000-07:00

Winnipeg, Manitoba, 1975: A man owned a house with a squeaky dining room floor. He paced that floor listening intently for the location of the squeak.

Each time he thought he found it, he would pull up the carpet and drive a nail into the floorboards. Each time, the squeak eluded him.

Eventually, he called in a carpenter.

The carpenter paced the floor, pulled up the carpet, and drove a single nail into the floor. The squeak disappeared.

The carpenter billed the man $50. The invoice said, “Driving one nail: $3. Knowing where to drive the nail: $47.”

Having experienced how the problem had already caused him more than $50 worth of trouble, the man happily paid right away.

Just as many people prefer the do-it-yourself approach to many problems to avoid the uncertain - and possibly high - cost of getting expert help, so this man tried to fix the problem on his own. Like often happens when people try to fix problems on their own, this man succeeded only at getting more nails in his floor, rather than solving his problem. His frustration and repeated failure made calling in a carpenter more sensible.

The carpenter's invoice hit the nail on the head. Anybody can drive a nail. The value lies in knowing where to drive the nail. Thus, the carpenter's expertise solved the problem and was the source of value. It had nothing to do with the amount of time taken, except that there was value in the problem being solved quickly.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Understanding Value

2010-06-25T10:38:00.000-07:00

As the best-selling economist Henry George pointed out over 100 years ago, there are two basic types of value:

• exchange value - what something is worth in a simple buyer-seller transaction - measured in money.
• utility value - what something is worth to its user as it used - measured in money.

In this way, the exchange value of a painting by Picasso, for example, equals the amount it can fetch at an auction. Its utility value might lie in its ability to create prestige by contributing artistic merit to the room in which the painting is hung.

The market establishes the exchange value of manufactured goods through supply and demand.

• Supply comes from the ability of a manufacturer to satisfy demand profitably.
• Demand lies in the will and the ability of buyers to pay, based on their want and need; typically based on their perception of utility value.

Semantics notwithstanding, this list indicates the fundamental source of value (advantage) in 12 examples:

• reduced stress
• reduced cost
• reduced risk
• convenience
• pleasure
• increased profit
• importance or prestige
• entertainment or enjoyment
• respect or validation
• security
• comfort
• sense of advantage.

Awareness of the nature of value makes it easier to evaluate price.

Other articles posted to this blog discuss value, fees, and prices in the spirit of what's best for both buyer and seller, with particular focus on questioning the billable hour as a gauge of value.

- Glenn R Harrington
Articulate Consultants
www.articulate.ca

Custom Work for Standard Prices?

2010-06-24T12:31:00.000-07:00

Robert was a professional writer, not of screenplays or magazine articles, but of original custom newsletters. Despite his ability as a wordsmith in a range of contexts, the market consistently regarded him as a newsletter specialist and brought that business to him. Robert decided to embrace this reputation. The rationale behind his business model was simple: Give people what they want.

He developed a business model that would always create original, authentic newsletters – best to maintain a credible connection between his clients and their readers. In an apparent paradox, he would always charge standardized fees and make a profit.

The reputation for newsletters that had driven demand for his writing was based on reliably good writing. His writing for any client always retained a degree of original authenticity that made his third-party authorship invisible. He trained and managed a small cohort of writers in his techniques also, so that readers would always assume the writing to be the issuer’s.

Robert ensured that each newsletter would have a look unique to the issuer, as well. Then, each issue would be laid out with client-approved text and images by the same person who designed the original template.

Robert paid his writers and designers fixed fees and had them work under a contract that protected the business interests of all parties. Likewise, he charged his clients fixed fees under a purchase agreement that both encouraged decisive collaboration on newsletter content and allowed the flexibility necessary to make each issue fulfil its potential as a timely reflection of the issuer:reader relationship. His purchase agreement even included a pay-upon-approval satisfaction guarantee.

Q1 If you could have original, custom work performed for you by a small team of creative people with the security of fixed fees and a satisfaction guarantee, would you bypass low-cost, off-the-shelf alternatives?

Q2 If you were to read a newsletter that seems to be a generic, impersonal product with the name and photo of an individual pasted in, would you consider it worth much more to that individual to issue an original, custom newsletter like those Robert and his team create?

- Glenn R Harrington
Articulate Consultants
www.articulate.ca

Is Faster Service Worth More?

2010-06-23T11:22:00.000-07:00

Imagine this. Your computer is not working properly. You have tried to understand the problem and to find a solution that you can implement yourself. Yet, after trying, you are no closer to a solution, you find the situation aggravating, and you decide that there’s no point in continuing to attempt fixing the problem yourself. Your time and attention are better spent on productive activities and should not be wasted on this computer problem any more.

The computer technician that you call asks a few questions then says to bring the computer in to his shop. He charges $60 per hour and predicts the computer ready in two business days. Once he has the computer, he will diagnose the problem then call you with an estimate.

Q1 As you consider not having your computer on hand for two business days, and the opportunities to use it productively that you must forego, would you be willing to pay more to have it fixed and back in use much sooner?

Q2 If the computer technician offered to fix your computer within 24 hours, satisfaction guaranteed, for a fixed fee agreed in advance, how attractive would that be to you?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Evaluating Your Next Car

2010-06-22T10:45:00.000-07:00

You and your spouse are shopping for a new car. Having visited a few car dealers, conducted research on the web, and spoken to a trusted person at your usual auto-service shop, you and your spouse have narrowed your search to two cars, both of which you have taken on a test drive together.

Q1 As you consider the value of each car, do you care how quickly or slowly either car was built, or how much time the manufacturer put into design & engineering?

Q2 As you consider the asking prices of the cars, does it matter to you how much time the car salesperson has spent on the sales process with you?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

the Value of A Salad

2010-06-21T18:30:00.000-07:00

At a restaurant, you order a supper salad. The menu says that the salad costs $7.99. As usual, you expect the salad to be served to you in a few minutes.

When your order reaches the kitchen, the manager finds that the supply of tomatoes has gone too low. She sends somebody out to buy tomatoes for your salad. The errand runner breaks a sweat to get the tomatoes to the kitchen in time for your salad to be served with the rest of the meal.

Your salad is served with the rest of the meal, and it is billed at $7.99.

Q1 As you sit at your table waiting for your meal to be served (unaware of the restaurant’s tomato supply) does it matter to you if the kitchen’s supply of tomatoes has gone too low, causing the manager to send somebody out to buy more?

Q2 If you knew about the low tomato supply and the decision to send somebody out to buy tomatoes, how would that affect your expectations about the timing of the meal being served or the amount billed?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

How Much Trust When the Meter is Running?

2010-06-18T16:28:00.000-07:00

Jacquie has been self-employed as a graphic designer for four years. She has found that her prospective clients (for example to design new logos and use those logos in designing stationery) typically start the buying process by asking her, “How much?”

In her first year, Jacquie found this frustrating because she could not answer right away. She needed to learn each client’s needs and expectations before she could provide a reasonable estimate, and her estimates were based on how much of her time would be needed.

Eventually, she learned to redirect that question to gauge the scope of each new project. This allowed her to provide reasonable estimates and close sales. Still, from that first question until the client signed her estimate, there was always uncomfortable uncertainty and a sense of risk.

There seemed to be a problem of trust intrinsic to the pricing aspect of the sales process. For example, one prospective client said, “I understand that you’ll show me three logo options with samples of how they’ll look on stationery. I am then supposed to choose and you’ll proceed from there. But what if I don’t like any of them as-is and want you to adjust or mix-and-match before I approve one? Would your fees stay the same?”

Jacquie dreaded this. If the client was not satisfied with her initial work, then she would have to charge more or make less money for her time and effort. Under the circumstances, neither possibility was welcome.

She considered that she would have to improve her skill at developing trust. She also longed for a way to make buying from her easier – especially if she could avoid the tension involved in estimating and hoping to make a decent profit when working for clients whose need for her billable time could exceed their budget.

Q1 What if Jacquie reviews her process for each type of project to establish a range of cost? This way, somebody interested in a new logo and stationery, for example, could ask, “How much?” and Jacquie could reply, “It would cost between X and Y dollars. Let’s discuss what you’d get.”

Q2 What if, in addition to replying as above when asked, “How much?” Jacquie would say, “If we can discuss how important it is to you, then we can fix the fees in advance with a satisfaction guarantee”?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Paying for the Solution – Not the Time It Takes

2010-06-17T11:02:00.000-07:00

Dexter is a management consultant with an accounting firm. He has been advising the owners, directors, and senior managers of various companies long enough that he typically begins formulating solutions to their problems during the initial stage of discovering the problem. Understanding that each situation is unique, Dexter still pays close attention throughout the discovery stage.

Because he always brings to bear his years of experience, and because he has the expertise to “sometimes come up with a $10,000 solution in 10 minutes,” Dexter eschews the billable hour as unfair. Rather, his firm charges fixed fees, established up-front based on the client’s gauge of importance, and includes a satisfaction guarantee. When the scope of any project changes while underway, the fee is adjusted on the same basis – all in writing.

Q1 Would it still be more fair for Dexter’s firm to charge according to his time spent, with his rate per hour linked to his seniority?

Q2 Should any other professions that apply experience and expertise to solve client problems also consider value-based fees, fixed up-front with a satisfaction guarantee, and accommodate any changes in scope by adjusting the fees?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Questioning the the Price of Pizza

2010-06-16T09:25:00.000-07:00

In Canada, there is a great number of pizzerias. Even small towns typically have more than one pizza place. Though there are pizza chains, there is also a variety of independent pizzerias across the country. Despite the number and variety, the industry has certain standards for ordering and pricing, anywhere you go, based on size of pizza and number of toppings.

As Emile considered opening a pizzeria in Morocco, he had the opportunity to consider the Canadian model: standard sizes of pizza, each with its own basic price, then standard pricing for toppings, plus free delivery within a certain radius.

Emile analyzed the pizza business and found that toppings do vary in cost to the pizzeria. He also found that, with the overhead to keep a pizza oven at operating temperature, the cost to bake a pizza would vary with size each and number per day. The cost of any one ingredient could also vary over time, as would the price of fuel for a delivery car. These all factored into Emile’s business plan.

Q1 How important is it to you to know how much a pizza will cost when you order it?

Q2 If your pizza order today matches your pizza order from a month ago, do you consider it reasonable for the price to be the same, even if the pizzeria’s costs might have varied?

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

The Elevator Speech That You Whisper

2010-06-11T10:31:00.000-07:00

There are people who believe that a great elevator speech needs to be delivered with enthusiasm. They would like everybody on the elevator to hear it and be moved. That is why many rehearse their elevator speech to deliver with passion an exciting answer to the question, “What do you do?”

In truth, the stirring performance that you rehearse for a traditional elevator speech might impress your spouse, and it might earn a ribbon at a Toastmasters meeting; yet, a compelling elevator speech – one that compels strangers to ask for your business card – is best spoken softly.

the traditional elevator speech
Here are good examples of the traditional elevator speech:

- Jeff says, “I work with people who want to accumulate wealth by investing in undervalued stocks.”
- Brenda says, “I help couples to furnish and decorate their new homes in a style that’s all their own.”
- Jeanette says, “I work with growing companies that need to find talented people so that they can continue growing and become more successful.”
Each of these elevator speech examples calls for impassioned delivery – with a smile, with zest. Because of that, Brenda could go on with examples of the exciting work she does as an interior designer and decorator.

The enthusiasm that makes a traditional elevator speech effective also requires self control to keep it brief. This is not the only challenge with a traditional elevator speech.

the question-answer trap
There are several basic problems with the traditional elevator speech. The first is to answer the question “What do you do?” succinctly. Like Brenda, many would like much longer than 30 seconds to describe themselves and their work.

The main problem, though, is that most people just don’t want to hear others talk about themselves – especially if it sounds rehearsed. Most people seldom ask, “What do you do?” Hence, many who develop a stimulating elevator speech seldom get to use it. There is a simple solution to these problems.

Don’t talk about yourself.
A Compelling Elevator Speech differs from a traditional elevator speech in one critical way: It’s not about you at all.

formula for a compelling elevator speech
A compelling elevator speech communicates:
1. Who you are (name with or without title or organization).
2. Three problems you solve described emotionally (e.g. fear, frustration, aggravation, worry).
3. That you solve such problems (positioning you as a rescuer).
4. A hook question. (e.g. “Is that important to you?”)

example of a compelling elevator speech
Jeannette would be wiser to say something like this: “You know, a lot of companies in this area are having quite a tough time finding good people to hire. Then, it can be frustrating to keep a good team together. Of course, letting people go can cause lost sleep, too. As a certified Human Resources Consultant, I help to make life easier for senior managers. Can you relate to that?” For greater impact, she should lower her voice as if she’s sharing something confidential.

why whisper
A compelling elevator speech is best delivered in hushed tones for two reasons:
1. You should whisper because a truly compelling elevator speech focuses on the problems you solve for people – described empathetically in emotional terms. It’s not polite to talk out loud about your clients’ head scratching or nail biting. Emotional empathy positions you as respectful and credible. Lowering your voice shows that.
2. People pay more attention when you whisper, especially in contrast when they expect you to announce grandly what you do and talk about yourself.

sample elevator speech
There are thousands of people toiling away on their elevator speech right now. They’re trying hard to describe their work briefly so that people will understand what sets them apart. They’re earnestly rehearsing in front of mirrors. They’re anxiously waiting for somebody to ask that trigger question, “What do you do?” As an elevator speech coach, I take away that pressure. Would that be meaningful to you?

If you want strangers to ask for your business card after 30 seconds, and you can accept that a compelling elevator speech is not about you, then use this formula, and say it with in a hush.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Marketing Tip: Avoid Direct Competition

2010-06-10T12:10:00.000-07:00

Coca-Cola and Pepsi-Cola have been engaged in direct competition for over 100 years, which is about 99 years too long. Originally marketed as health tonics, the two products are very similar, cost about the same, cater to the same market, and have never established any meaningful product differentiation. Such protracted, intense competition would be very, very costly to most businesses in most industries. There's a lesson in it for all of us, though.

prosper in peace
Direct competition is an unnecessarily difficult way to do business. The level of difficulty relates to the maturity of the market and the innovative capacity of the competitors. Yet, all markets mature and it's better to prosper in peace than to fight and starve.

fill a niche
To enjoy a more comfortable place in a competitive market, it is wise to identify and satisfy an under-served niche through differentiation from competitors. This way, you strive not to dominate the game but to dominate one particular aspect of the game - your own.

cheap like Cott
Even if your product was a knock-off of Coke or Pepsi, you could claim market share by selling it at a lower price. This way, you could attract the most price-conscious segment of the market through price-based positioning and avoid the Coke-Pepsi fight. This is how Cott has prospered in the cola market.

different like Jones
An alternative way to create a niche through differentiation is to create a strong brand image that attracts people to your product - even if the product is essentially the same as everybody else's. The Jones Soda Company does this. Its clear-glass bottles labelled with black-and white photos and overtly modest writing are a hit with the market segment that likes quirky originality.

position for profit
The principles of avoiding direct competition extend well beyond the convenient examples of niche marketing in the soft drink business. Every enterprise has its competitors, but intelligent market positioning can make an enormous difference in how fun and how profitable life can be. At Articulate Consultants Inc., we enjoy helping businesses achieve profitable positioning and have helped to create effective brands.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Glenn R Harrington is the Principal Consultant of Articulate Consultants Inc. Since 1996 he has specialized in consulting on authentic key messages as the basis for effective marketing, brand management, and client loyalty.

Words Matter

2010-06-09T10:04:00.000-07:00

Despite the high volume of e-mail circulating invisibly all the time, there is often no substitute for talking with people. Indeed, in many organizations, big decisions are made only after in-person conversations. Many career people take this seriously. Herein lies an opening for misjudgement.

present with sincere gusto
It is not uncommon to find a white-collar worker who believes that tone of voice and body language are underrated in effective speaking. Some polish their hand gestures and rehearse specific tones of voice because they believe that substance without style is weak. It's not just content, they say, but delivery. Seeking an edge, some even have the famous 7% rule memorized.

The 7% rule states:
• 55% of meaning comes from presentation.
• 38% of meaning comes from tonality.
• 7% of meaning comes from the words themselves.

Though this has brought confidence and success to some, there are still people who pay more than 7% attention to the words others speak. Neither is a fringe group. However, only the latter has the backing of scientific research.

still misunderstood
In 1967, Dr. Albert Mehabrian and his UCLA colleagues concluded studies in communication that yielded an astonishing result: The words you use in speaking to others do not matter nearly as much as the tone of your voice or your body language. As the press picked up the story, the idea was extended: written words also take a back seat to presentation and tonality.

good for shock value
According to Mehabrian and his team, the original studies were never well understood. They have always asserted that words matter very much. Perhaps they didn’t use the right presentation and tone, or perhaps the media were hunting for shock value.

single-word expressions only
The Mehabrian studies attempted to reveal the relative impact of facial expressions and tonality on the understanding of spoken words. Subjects listened to recordings of a female voice saying single words (such as “maybe” and “honey”) in differing tones. They were also shown photos of female faces with differing facial expressions. The subjects were then asked to guess the emotions portrayed in each, and to link the recordings with the faces.

presentation and tone as guides
The results of the studies appeared in full in Mehabrian’s books, Silent Messages (Wadsworth, 1971) and Nonverbal Communications (Aldine Atherton, 1972). In both books, he clearly states that for inconsistent messages or incongruent communications, body language and tonality are probably more reliable indicators of meaning than the words themselves.

There we have it. Presentation and tone are more reliable than words alone for interpretive guidance with single-word expressions. These are not general circumstances.

earn 93% on your first Chinese test
In a 1994 issue of Anchor Point, Dr. C.E. Johnson writes, “If these percentages were really valid, it would mean that learning foreign languages could be greatly abbreviated. After all, if the words only account for 7% of the meaning, we should all be able to go to any country in the world and simply by listening to tone and carefully observing body language, be able to accurately interpret 93% of their communications!”

tone mightier than a sword?
In a 1997 issue of The Toastmaster, J.E. Pearson asks, “Imagine if Nathan Hale had said, ‘Okay; I’m willing to die for my country,’ instead of ‘I regret that I have but one life to give for my country.’ Imagine Franklin Roosevelt saying, 'Don’t be afraid,’ instead of, ‘We have nothing to fear but fear itself.’"

Yes; tone of voice and body language matter very much - especially with single-word expressions. When speaking within a common language and culture, do not be fooled by the myth of the 7% rule. Words matter - probably much more than 7%.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Loyalty Without Bribery

2010-06-04T16:37:00.000-07:00

Phrases such as points program, loyalty rewards, frequent buyer, and loyal customer are often used in similar contexts. The central idea is that a company that rewards consumers for making repeat purchases can secure steady business from them over time. While this may be true, real loyalty is seldom involved.

thank customers with bribes?
Some marketers describe incentive programs as extending a thank-you gesture to keep customers coming back. Experts in business psychology liken the practice to bribery. They point out that repeat purchasing is not the same as true loyalty. Indeed, loyalty does not depend on discounts or give-aways. Real loyalty can be spoiled by bribes.

loyalty involves a relationship
Customer loyalty is a matter of business relationship management. In contrast to points programs and pay-your-bill-to-enter lotteries, there is a higher road to true loyalty. It is more profitable and requires a different view of the business relationship.

benefits involve costs
Many retailers use club membership cards with give-aways and points programs as buyer incentives. As intended, these generally do secure repeat business and keep customers from leaving for competitors. However, the benefits to these companies come at a considerable cost. Close study of card-based loyalty programs reveals the main advantage: consumer data from tracking customer purchases.

For example, when a grocery-chain customer has his or her card swiped at the till, a computer links the products purchased to his or her name. This contributes to consumer statistics involving the information that the customer provided in applying for the card. Thus, the give-aways and discounts associated with shopper’s club cards are a cost that grocery chains sustain to gain consumer information for targeted marketing campaigns as well as repeat customers.

real loyalty is intrinsic
Though retailers and their suppliers naturally seek more and better consumer statistics to sell more products to more customers, and to keep them coming back, true customer loyalty is left out of the equation. Indeed, loyalty and rewards do not belong together in the context of reasons why customers buy.

The dominant view equates loyalty with repeat purchasing: “If they continue buying from you, that means they’re loyal.” That makes sense on the surface, but lacks a basic understanding of what leads people to feel loyal. Actual loyalty fits with sentiments such as devotion and faithfulness. It has more to do with intrinsic incentives than extrinsic incentives.

loyalty must be earned
For a business to earn the true loyalty of its customers, it must understand that discounts and contests – examples of extrinsic incentives – are superficial. Customers want more – ideally in sync with their personal values, such as being treated sincerely as a valued individual.

For example, the greeter at an optician’s shop remembers every returning customer and always treats them warmly. If a competing optician’s shop offered a free iPhone as an incentive to attract new customers, it wouldn’t faze this shop’s loyal clientele. They’d never go anywhere else for eyeglasses or contact lenses.

frequent buyers might not be loyal
In a Gallup Management Journal article, WJ McEwen and JH Fleming write, “Without a strong emotional bond, customer satisfaction is meaningless.” (Customer Satisfaction Doesn’t Count, GMJ, March 13, 2003) Is there a strong emotional bond by the time you’ve bought nine cups of coffee then get the tenth free? Gallup: “These customers aren’t really loyal; they’re just customers who haven’t left yet.”

repeat bribery can be costly
Generally, retaining customers is much more profitable than attracting new ones. Even so, any company that gives away prizes or provides discounts must recoup the costs of doing so. Inevitably, the cost recovery comes from pockets of the same customers.

true loyalty is a win-win
When customers develop real loyalty to a brand, it leads to greater depth of the business relationship as well as mutual liking. The development of true brand loyalty comes from engaged personnel serving customers with sincerity. Engaged personnel who foster true customer loyalty work for companies that treat them well and operate under well-defined, service-focused values. Such companies can make good profits and dispense with the trinkets.

treat people well and prosper
No “loyalty” program based on extrinsic incentives can foster true loyalty. A company that consistently treats its customers and its personnel as liked, trusted, valued individuals creates a successful brand. A successful brand typically also has a meaningful mission statement and a name and motto that express compellingly what makes it distinctly valuable. Real loyalty to such a brand follows and lasting success may result.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

What Problem Do You Solve?

2010-06-03T11:24:00.000-07:00

Remember the TV commercial with these lines?
Boy: What’s this stuff?
Brother: Some cereal. It’s supposed to be good for you.
Boy: I’m not gonna try it.
Brother: Let’s get Mikey.
Boy: He won’t eat it. He hates everything.
Both: He likes it! Hey Mikey!

How about the TV commercial with this line?
Elderly woman: “I've fallen and I can't get up.”

uncommon formula
These ads are famous for these lines. The first contributed to enormous success for Quaker’s Life brand breakfast cereal; the second, for the Life Alert Emergency Response pendant, which auto-dials an emergency dispatcher. Importantly, they also share an uncommon though effective approach to marketing: Identify the problem that you solve considerately, then identify your solution.

common problems
Many affluent parents struggle to get their children to eat a good, healthy breakfast every day. For some, this includes a struggle to resist breakfast foods that offer little nutrition and better resemble candy. Likewise, many adults worry about their mother, aunt, or other elderly family member who lives alone and could suffer a fall or other calamity from which help would be needed to recover.

comforting solutions
In the cereal ad, after the boys discover that the hard-to-please Mikey likes it, a voice-over describes Life as a “nutritious, delicious” cereal that even picky children like Mikey enjoy eating. In the pendant ad, less memorable is the dispatcher’s reply, “We're sending help immediately, Mrs. Fletcher.” Both ads offer to save consumers from the difficulties that they credibly portray. Both also triggered many people to buy what they were selling. So, why is the same formula not used in more advertising?

not for creative ad execs
When marketers take the route of simple, truthful authenticity – such as sympathetically demonstrating that they understand the problem that their product solves – consumers often reward them with success. These ads are good examples of this. Yet, the supreme status of creativity is so deeply ingrained in the ad industry that advertising executives often refuse to pay attention – or feel that they can do much better.

medals or sales?
Of course, there are many companies that might never advertise on TV. Even so, their decision makers could entrust their marketing budgets to creative people who think like big advertising executives. Too often, this means that their advertising is based on creativity and lacks a strong grounding in real user experience. Then, a new problem arises: Creativity wins awards for ad agencies. To win an award for creativity, an ad need not be effective at generating sales.

tell the truth
Before your company takes the creativity-first route in its marketing, remember that people want truth in advertising and that consumers want their problems to be solved. These basic consumer priorities carry more weight than being entertained by creative ads. Meeting these priorities effectively can be more profitable for the advertiser, too.

listen for it
So, how does a company with products or services to promote get to the truth and express it so that the market responds positively? Key messages in the words that the market uses come simply from attentive listening.

distil it
As a key-messages specialist, I coach my clients on how to listen to their customers, staff, and suppliers to learn where the value comes from. Then, what sources of value distinguish them from competitors. Listen attentively to enough people over a sufficient period and the truth of market perception becomes abundantly clear. Then, distil those sentiments for an effective, authentic key message.

give it to them straight
Authentic problem/solution key messages can be way more valuable than cartoon characters promoting colourful, candy-like breakfast cereal as fun to eat (what Quaker was up against with Life). When you credibly demonstrate genuine understanding of the problem that you solve, and present your product or service as reliably solving that problem, then plain facts can win over the skeptical – even the hard-to-please like Mikey.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

Authenticity Rules: A Reality Check for Creative Advertisers

2010-06-02T11:31:00.000-07:00

One lovely day in the summer of 2002, I had an in-person business meeting scheduled with an Englishman. He was a new client and I had been advised by a colleague who also rode motorcycles not to reveal myself as a motorcyclist until after a new business relationship had been cemented. Yet, it was a beautiful day and my motorcycle was a 2001 Triumph, made in England. I considered the sunshine and the English connection (if my client noticed that I arrived on a Triumph) an excuse to ride to the appointment.

pass test in a blink
Within minutes of my arrival, the Englishman led me out to the parking lot to show him my motorcycle. When he read the name on the gas tank, he whispered, "A Triumph." Then, taking on a dubious tone, he turned to me and said, "Aah, but was any of it made in England?"

Fortunately, Triumph had placed a tiny Union Jack decal above the taillight. I pointed to it, said yes, and witnessed a change in facial expression that suggested I had just passed a critical test.

That day, my made-in-England Triumph delivered on the perception that authenticity equates with value. This is true of much more than motorcycles. Indeed, the perception of authenticity equates with value among informed and uninformed consumers in any market – so much that it often makes deep wells of creativity unnecessary in effective marketing.

authenticity = value
Because the concepts home-made and locally-grown trigger the impulse to buy, a small hand-made sign offering home-made relish made from locally-grown cucumbers helps to sell more hotdogs at a hotdog stand. Likewise, a poster of Shaun Cassidy from 1977 might sell at a garage sale today. The same poster autographed by Shaun Cassidy can fetch a high price on e-bay. These are further examples of how authenticity increases value.

You want the real thing?
Authenticity relates to truthful origins. The word comes from the Greek authentikós which means original. An authentic claim is worthy of acceptance or belief as conforming to or based on fact. An authentic product is original or made in the same way as an original – not false or imitation. Other concepts related to authenticity include real, actual, and genuine – all hallmarks of value.

Generally, people avoid substitutes or pay less for them when they can have the real thing. So, in 1969-70, Coca-Cola successfully advertised with the slogan, "It’s the real thing." When you buy a pair of Levi-Strauss jeans, the label declares, "This is a genuine pair of Levi's jeans." These companies understand the value/authenticity connection.

fakers keep out
Typically image-conscious teens still use the labels wanna-be and poser as insults. Likewise, the perception that a brand merely tries to be what it claims to be turns off consumers of all ages. People are also turned off by far-fetched claims. Below, a claim that Ladysmith, British Columbia has a "heavenly" climate exemplifies this.

Creativity better than honesty?
When marketers take the route of simple, truthful authenticity, their markets often reward them with success. Yet, the supreme status of creativity is so deeply ingrained in the ad industry that advertising executives refuse to pay attention – or feel that they can do much better.

Creativity is viewed as so basic a requirement in advertising that people in that line of work seldom mention it, except to promote themselves to other industries. Yet, while creativity that is also original may be lauded, danger arises when creativity is divorced from authenticity. The results from an Association for Consumer Research poll "strongly suggest that consumers are deeply skeptical of advertising claims. Moreover, public opinion has remained extraordinarily constant [about this for at least] two decades."* Thus, public opinion considers creativity insignificant at best when companies and institutions take their messages to market.

For an example of creativity gone too far, consider the climate in Ladysmith, British Columbia. Ladysmith has a mild coastal climate. The summers tend to be sunny and dry; seldom hot. Bringing months of cloud and rain, the autumn and spring typically seem to run together. Despite mild temperatures, the short days and persistent damp gloom of winter lead some residents into depression. Regardless, a brochure promoting condos in Ladysmith claims a "heavenly" climate year-round.

Ignore user experience?
One advertising agency that, incidentally, repeatedly wins awards for graphic design, apparently sees no place for actuality in the creative campaigns it develops. It uses a word-association game to generate campaign concepts. Let me explain.

If the client’s business were Mountainside Soapworks, for example, the agency’s staff would work with six columns of words on a whiteboard. At the top of each column would be the words mountain, side, mountainside, soap, works, and soapworks. The creative team brainstorms and lists associated words below these headings.

Under soap they list wash, clean, dirty, water, shower, sink, towel, bathroom, tub, and other words. Beneath works, they list paycheque, commuting, job, labour, boots, dress code, career, breadwinner, and others. The next creative challenge is to join words from the six columns into unlikely combinations. For example, dirty and commuting or water and career would be grouped with words from the other four columns. While the fun and creativity are underway, nobody bothers to consider the distinct benefits of using the client’s products.

Then, all at the creative briefing are challenged to draw creative sketches based on various groups of six words. The most creative sketches become candidates for the campaign concept. This is how a campaign built on a sketch inspired by valley shower boots hill flank suds job could be used to advertise soap.

The process undoubtedly stirs up fun and creativity. What about the actual experience of the product user, though? What consumer needs does this company’s soap address better than the competition’s? What can Mountainside Soapworks say about its products that would have the same appeal as the authenticity of a pair of genuine Levi’s jeans, or the try-me attraction of homemade relish made from local cucumber? Though the fruits of fun creativity might be appealing, when it comes to advertising, people want the truth.

true, genuine, relevant
From the smallest players to the largest, the advertising industry trumpets creativity as the key source of value. Creative Director is one of the most respected positions in the field and the phrase creative marketing is often used in the same sentence as solutions or success. John Grant, author of The New Marketing Manifesto, states, "Authenticity is the benchmark against which all brands are now judged."

Overloaded by sales pitches, consumers are gravitating toward brands that they sense are true and genuine. In a December, 2007 issue of Fast Company, Bill Breen writes, "To maintain its integrity, a brand must remain true to its values. And yet, to be relevant or cool, a brand must be dynamic." A brand's values – the emotional connection it makes – define its realism in consumers’ minds.

the law of candor
In contrast to the empty entertainment and unreal overstatement often used to lure buyers, authentic, credible, easily verified claims are valued like gold. Because the average person simply wants truth in advertising, there are examples of plain truth making market leaders – even when the truth is expressed boldly and frankly. Consider Buckley’s Mixture cough medicine. It tastes awful, it works, and it has held onto its status as one of the top-selling brands in the Canadian market for many years.

The same values that compel people to seek the authentic and shun the fake and vacuous are involved in demanding fairness and accuracy in reporting from the news media as well as truth in advertising. Indeed, there are laws requiring truth in advertising while misleading claims are widely considered the province of the corrupt. The statement, "They just make up this stuff" can paradoxically evoke pride in advertising executives and disgust in consumers.

listen for it
So, how does a company or an institution that has something to promote get to the truth about its products or services and express that truth so that the intended audience responds favourably? By listening for it.

distil it
In my experience as a key-messages consultant, the highest quality testimonials are not those asked for but those spontaneously provided. Accordingly, I coach my clients on how to listen to their clients, staff, and suppliers for the essential key messages, such as where the value comes from. Then, what sources of value distinguish them from competitors. To get that information in the words that the market uses simply requires listening – in most cases, trained listening.

quote what customers say
Listen attentively to enough people over a sufficient period and the truth of consumer experience becomes abundantly clear. Listen all the time and the larger sample size reduces the margin of error. Then, when you know how to distil the market’s sentiments, the result is authentic key messages of far greater value than a thousand word-association games could ever produce. Propagate those key messages to the market in the words that the market speaks and you can really hit the bullseye. No room for hyperbole. Plain facts can win over even the skeptical. Just like the name Triumph and the little Union Jack on my motorcycle.

- Glenn R Harrington
Articulate Consultants Inc.
www.articulate.ca

* source: John E Calfee, University of Maryland and Debra Jones Ringold, American University: Consumer Skepticism and Advertising Regulation: What Do The Polls Show? Advances in Consumer Research volume 15

Joe's Hotdogs - the full transcript

2010-06-01T13:08:00.000-07:00

The Joe's Hotdogs story has two parts. The first part consists of a little journey along a beach, an exploration of thoughts and feelings on the discovery of Joe’s Hotdogs on this walk along the beach.

The second part of the Joe’s Hotdogs story is further exploration of those thoughts and feelings and their business implications. They are business concepts applicable in many different types of businesses serving many different markets.

So, you are taking a walk along a beach, let’s say on Vancouver Island, Canada. As you walk along the beach, you notice a bluff to your left and the ocean to your right. On top of the bluff, there is a sign that says "Joe’s Hotdogs".

You are not really looking for a place to eat, but the Joe’s Hotdogs sign has come to your attention. You decide, "I’ve already had my breakfast and I’m not hungry for lunch yet. I’m here for a beach walk, not to eat. Besides, I don’t feel like eating a hot dog."

As you walk along the beach, you begin to think to yourself, "If I were to order something from Joe’s Hotdogs what would I order?" Well, you might want a hotdog, you might want a footlong, you might want a veggie dog, or you might want a smokie. (I don’t know exactly what a smokie is, but it seems to be the kind of thing people buy from hotdog stands).

Well, you'd probably want a beverage with it. Maybe you are a coffee drinker, or a tea drinker, or an iced tea drinker. Maybe you'd prefer some kind of pop or juice. Would you like fries with that, or would you like onion rings? If you ordered a hotdog, maybe a veggie dog or a footlong, which garnishes would you put on your dog? Maybe you like pickles or relish. Maybe you like a particular variety of mustard. All these things rest in your mind as you walk along the beach.

Then, you notice a sign saying “This way up.” It doesn’t specifically say, "Joe's Hotdogs, this way", but you noticed that Joe‘s Hotdogs is on top of the bluff, and the path leading upward seems to be a fairly well-worn path. You see some people up there, and since the beach looks pretty much the same ahead of you as it does behind you, out of curiosity you walk the path up the bluff and you discover that there are a dozen or so people standing around this little hotdog stand that looks sort of like a little hut overlooking the ocean.

People are enjoying all types of hot dogs and drinks: different sodas and colas, different types and sizes of hotdogs with different garnishes on them. Some people are eating onion rings, some are having french-fries, and you happen to notice that there are some people ordering french-fries only. There seems to be some enthusiasm for the french-fries at Joe’s Hotdogs.

So, even though you just decided a few minutes ago, on your walk along the beach, that you really didn’t want anything from Joe’s Hotdogs, here you are, having climbed up the path on the bluff along with a bunch of people who seem to be enjoying themselves, and you’re curious. “Well gosh, maybe Joe’s Hotdogs’ french-fries would be good, even though I have already had my breakfast and I am not all that hungry for lunch. Maybe I should try Joe’s Hotdogs because I might want to come back some other time and I'll need to know if the hotdogs are worth the climb up that steep path.”

So, you step up to Joe’s Hotdogs counter and you order some french-fries. You notice a sign saying that they have homemade relish from locally grown cucumbers. You think to yourself, “I like relish on hotdogs. Let me look at the rest of these condiments.” You also notice that they have a variety of different buns. Because of all the enthusiasm for the french-fries, you order some with a dog and the homemade relish from the locally-grown cucumber, and of course, you order a beverage.

You end up spending ten dollars at a place where you had already decided you didn’t even want to go. There you are, standing there spending ten dollars.

You sit down to eat your food and you notice that there is somebody else coming up the bluff, just as you did, from the beach. They are just standing there checking it out, and you notice that person might be doing the exact same thing you just did: coming up the bluff out of curiosity. By-golly, maybe that person is going to spend ten dollars trying out Joe’s Hotdogs, even though they don’t have an appetite - just like you.

You dig into your french-fries and your veggie dog with the homemade relish. You resolve to yourself, “I am going to remember this place. I’m going to come back. I might tell my friends or bring family.” So, you bought a meal that you hadn't intended to, but hey, the service at Joe’s Hotdogs seems to be friendly, they seem to have happy people, there is enthusiasm for the fries, and you feel like you have really discovered something good. You are glad you made the hike up the bluff to Joe’s Hotdogs.

So that’s the story about the discovery of Joe’s Hotdogs.

Let me share with you, now, some lessons built into that story, which apply to a variety of businesses in a variety of situations. Not just hotdog stands, and not just businesses on Vancouver Island.

Well, first of all, there is encountering the concept: Joe’s Hotdogs.

As you were walking along the beach, you started running through your mind what your order might be, even though you had already decided that you didn’t want a hotdog. You thought of the possibility of foot longs, veggie dogs, and smokies, even though you don't know what smokies exactly are. You ran through a bunch of possibilities as to what their core service or core product was. The sign just said Joe’s Hotdogs.

Heck, you don’t even know if there is somebody named Joe who works there. Maybe it’s a man named Joseph. Maybe it’s a woman named Joesphine or Joanne. It doesn’t matter. The name Joe’s Hotdogs brought to your mind a whole line of hotdog-type products.

Most people in our culture assume that where you can buy french-fries, you can buy coffee, tea, iced tea, juices, and various types of pop. These things can be assumed in our culture from a place named "Joe’s Hotdogs". What would Joanne’s Handbags do?

The sign saying “this way up” was all that you needed to go up to Joe’s Hotdogs. There didn’t have to be someone standing there waving you up the bluff. There didn’t have to be a sign saying ‘Happy Hour discounts until such-and-such a time’. There didn’t have to be any incentive for you to go to Joe’s Hotdogs and order your ten-to-twelve dollars-worth of food – other than your own curiosity about the Joe’s Hotdog experience. So, “this way up” was all you needed to interrupt your wonderful walk, along the beach on Vancouver Island, and go to check it out.

The sign only had to say Joe’s Hotdogs to bring to mind a whole menu. Which turned out to be much more various than just hot dogs. You didn’t need any incentive other than your interest in the Joe’s Hotdogs experience.

All Joe’s Hotdogs needed was a sign for you to know that he or she is there; all you need to know is the way to find Joe’s Hotdogs. Specifically, this is the path up the bluff to go find him. No flashing lights. No people waving you in unnecessarily. This may go to show you that sometimes coupons and "Sale Ends Friday" or other kinds of buyer incentives are extrinsic motivations that people don’t need, because, if they are intrinsically motivated to explore your business, or to check you out, then they don’t need extrinsic motivations.

Extrinsic motivation is never heartfelt. Loyalty is.

Many companies use discounts and "Sale Ends Friday" tactics, and other extrinsic motivations, to get people to spend money with them unnecessarily. In fact, sometimes it is a little bit too much. People are often turned off by "Sale Ends Friday" and things of that nature.

Somebody’s own hunger, by the way, is a great way to sell food.

Once you get up there, you see other people – other people apparently enjoying themselves. That’s a sign.

Sometimes, all you need is to see or to know that there are other people like you (sometimes not like you) who are enjoying an experience – so much that you become interested in trying that experience. All that many consumers need to know is that there are third parties interested in what the seller offers, rather than being persuaded that they themselves should be the pioneer to try out the product.

Another lesson to learn from this story is that, sometimes, authenticity and uniqueness are themselves strong selling points. Homemade relish from locally-grown cucumbers might be all that some people need to get them to order a hotdog.

The relish isn’t necessarily claimed to be the best relish in the world, and it isn't necessarily award-winning relish, and nobody ever said that locally grown cucumbers are anything special. However, the novelty or uniqueness of homemade relish from locally-grown cucumbers is a draw for some folks. Authenticity is, generally, a draw for business. People like to buy the real thing.

If you can present what you are offering as the real thing, authentic or heritage or, in some way or another, attractive because of its novelty or specialness, then you do not need to convince the buyer that it is the best relish, or the best anything else, or that it is the cheapest. You don’t have to offer a guarantee or a warranty in some cases. Just the idea that it's authentic, that it's original, is enough.

I didn’t mention that the relish was good, but you ordered a hotdog, didn’t you? A veggie dog, that is. You read that the relish was homemade, which has an air of authenticity about it, and locally grown cucumbers sound like something special, too.

You ordered french-fries because other people seemed to be enjoying them. The truth is (I can make up the truth because this is my story), Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island!

Yes, there are quite a few eateries, restaurants, and lots of hotels on Vancouver Island. Indeed, it is a place where many a french-fry is fried. Joe’s Hotdogs, however, happens to sell more french-fries than anyone else. And you know what? That’s because their french-fries are good, and because the total experience of Joe’s Hotdogs, including the ocean view, is a positive one.

It doesn’t necessarily mean that Joe’s Hotdogs’ french-fries are the best french-fries in the world. Therefore, it is not a smart idea to assume that, if you have the best X Y or Z product, that the world owes you big volume.

Sometimes, having the best does not translate to having the most profitable or the busiest business.

Joe’s Hotdogs sells more french-fries because the french-fries are part of a whole package. Their french-fries do happen to be very good. Maybe they’re the best. Maybe they are not the best, but they are very good french-fries, served by friendly people with an ocean view, and you can get a hotdog with homemade relish made from locally-grown cucumbers. Those french-fries, as part of that whole Joe’s Hotdogs experience, happen to be the best selling french-fries on the island.

Something else that is important is that the Joe’s Hotdogs sign says “Joe’s Hotdogs”. The sign does not say, “Joe’s Hotdogs, with the best selling french-fries since 1976.” Nor does it say, “Joe's Hotdogs. Get your favourite coffee!” It does not say, “Joe’s Hotdogs. Come here for pop.” It does not say, “Joe’s Hotdogs. Come here for home-grown, homemade relish.” It just says, "Joe’s Hotdogs".

One of the lessons that come from that is that Joe’s Hotdogs’ reputation, through its name at least, is a simple one. The Joe’s Hotdogs name carries with it the cultural assumption that there are probably beverages. There are probably onion rings and french-fries. There might even be such things as homemade relish.

How does the name Joe’s Hotdogs imply that there might be homemade relish? Well, it doesn’t say McDonald's. People know that McDonald's does not offer homemade relish.

The name Joe suggests something that might not be true about Joe's: There is an individual named Joe, Joanne, Joseph, Josephine. Who’s to say who it is? Often a name carries enough implications that no one has to say “Joe’s Hotdogs with homemade relish” or “Joe’s Hotdogs: we have great french-fries”. The name Joe’s Hotdogs not only implies Joe's menu, but also, it implies the possibility of homemade relish more than the name Holiday Inn might, or more than the name U-Haul might.

So, a company name is important in ways that are subtle.

Now, sometimes people bank on or have strong expectations for their name. For example, "Why doesn’t the whole world read my mind? Don’t they realize that I have the best homemade relish?" These are unwise assumptions.

However, it is also unwise to name your company Low-Budget Rental and assume that people will buy lots of french-fries from you. Cultural awareness, especially including the implications of a name, is important in marketing products.

Just don’t get witty with your wording. The greater the number of people who encounter your concept, the lower the common denominator of their savvy.

How about the promise to yourself, "I am going to come back here again and I am going to bring friends or refer family"? Sometimes, all people need is to discover something, and if the discovery turns out to be pleasant, then they want to share it. The self-satisfaction of having discovered things is a powerful motivator for some people to bring their friends, to bring family, and to bring themselves back to a restaurant (or any other kind of business) where they might have never planned to spend their money.

You climbed up the bluff from the beach. You discovered that Joe’s Hotdogs really does have good french-fries. You discovered the experience of Joe’s Hotdogs’ homemade relish. That was a pleasant discovery for you, supported by witnessing others making the same discovery.

That makes many of us feel proud. So proud, in fact, that we want to share our discovery. There is a sort of… let's say… vanity discovering a new positive experience and having that experience for the first time. We’ll often repeat it or share it all over again.

Joe’s Hotdogs has the appeal of a place that you discover. Such an appeal, indeed, that one might say to oneself, “Gosh I feel good now. I’m glad I discovered this. I want to share my discovery with other people.” It would be good if they had a positive experience at Joe’s Hotdogs similar to yours.

In this way, you would have deepened your sense of satisfaction about your own discovery by having others try a new experience that you introduced to them. It may even help to deepen your friendships with those other people.

This is how referrals happen. It's not the only way referrals happen, but it is one of the key ways in which they do. Of course, referrals can lead to new customers and repeat business.

People like to discover things and to repeat the pleasant.

Note: There is nobody standing at the beach waving you up the bluff. There is nobody standing at the bottom of the beach telling you that some deal expires, or handing out a coupon. These are not necessary.

It is more important, as the story goes, to discover Joe’s Hotdogs, have a positive experience from Joe's, and to be proud of yourself for having made a discovery – rather than having saved fifteen per cent or gotten a dollar off, or something to that effect.

These are some of the lessons that run through my mind when I contemplate the Joe's Hotdogs story. I am sure you thought of your own business and marketing concepts, too. There are, of course, other lessons that can be taken from the story.

For now, I will leave you with this thought: Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island.

I didn’t say whether the hotdogs were good. I didn’t say whether the relish was good. However, Joe’s Hotdogs is a marketing success, and a well-branded company, whether there is somebody named Joe behind it or not.

Joe’s Hotdogs sells more french-fries than anyone else on Vancouver Island.

© Glenn R Harrington, Articulate Consultants Inc.

Value, Efficiency, and the Billable Hour

2010-05-31T11:14:00.000-07:00

In the 1987 film The Secret of My success, Brantley Foster, a recent university graduate, finds himself laid off from his Wall Street job before his first day of work. Having just moved from Kansas to New York City, he persuades his uncle to get him a job. There, lessons regarding time, value, and money begin for attentive viewers of the film.

Work 2 hours; get paid for 7.
Early in his work for the mail room of his uncle's company, Brantley learns how to perform his job in a fraction of the time expected. He then keeps the mail room happy each day while using an alter ego to pursue activities better reflecting his ambitions - all in the guise of working full-time hours at his mail-room job.

Maintaining the illusion that it takes a full work day for Brantley to perform his job is important for the business insights that the film offers regarding time, value, and money.

Brantley's employer values the work performed at the level of a full-time wage, unaware of the time actually needed to do the job.
The film shows how efficiencies found and practised can free up human resources for other activities.
Despite his university studies in finance and his eagerness to prove his merit, Brantley has no incentive to point out that there is a more efficient way to perform his job. He uses the freed-up time for his own benefit; not his employer's.

These points apply to the fundamentally flawed but widespread situation in which tasks involving expertise are performed for clients who are billed by the hour. This article points to a better way for companies that charge by the hour.

Focus on time spent creates misalignment.
It is customary for clients to pay for the time taken to perform tasks while what they really want is not time at all. Rather, they want the benefits of those tasks performed expertly.1
Those logging billable hours for their work have a disincentive to use time-saving efficiencies that could save money for their clients.
Managers in the billable-hour paradigm necessarily view efficiency in terms of how much time it takes to perform tasks; not necessarily in terms of optimizing value.

A shift in focus from time spent to value provided realigns the worker, the manager, and the client in seeking optimal value through efficiency.

Productivity is about delivering results, not spending time.
In 1899, FW Taylor asked, "How many tons of pig iron bars can a worker load onto a rail car in the course of a working day?" With this question, a clipboard, a stopwatch, and statistical analysis, Taylor brought management theory to life and introduced the paradigm of simplistic, quantified measurement to manage and compensate workers.2

Though Taylorism has since come to be regarded as oversimplistic, the paradigm of the billable hour, and its associated incentives and disincentives, continues to dominate many fields in which tasks involving expertise are performed for clients who really just want value.

Better = more valuable.
In any field, a reliably better overall client experience equates with higher value and justifies higher price. This includes a paradox with the billable hour when quick service increases value and justifies a higher price but reduces time spent.

fundamental sources of value
Value is seldom directly related to time spent performing tasks. This list indicates the nature of value through 12 examples:

- reduced stress
- reduced cost
- reduced risk
- convenience
- pleasure
- increased profit
- importance or prestige
- entertainment or enjoyment
- respect or validation
- security
- comfort
- sense of advantage.

How much?
In many industries, goods and services sell for fixed prices. This is convenient because people naturally want to know how much something will cost before purchasing it. A fixed price also creates the incentive to satisfy clients as efficiently as possible. Fixed prices are not standard in some industries, though.

Many people are usually reluctant to ride in a taxi because of the uncertainty about the fare to reach their destination. Only in the absence of convenient alternatives do they take a taxi. Even then, it is common to regard the driver's route with suspicion. An inefficient route would cost more and the driver probably wants to charge as high a fare as possible.

The same psychological factors that underlie reluctance to take a taxi and suspicion of the driver's route also underlie, for example, reluctance to call a plumber or suspicion about the time a graphic designer logs in designing a menu. In both fields, by-the-hour billing is the norm. These concerns reduce demand for the goods and services of companies that do not charge fixed fees.

Purpose does not differ.
Businesses succeed by providing high value economically. This remains true of any enterprise that does not normally charge fixed fees:

- blue-collar trades such as carpenters, electricians, mechanics, and welders.
- white-collar professions such as accountants, attorneys, architects, and consultants.
- others who provide goods or services by using intellectual capital and tools such as dentists, designers, counsellors, and writers.

The paradigm of the billable hour is prevalent in these fields, even though their clients just want value.

Focus on value creates alignment.
The billable hour puts the interests of the worker, the employer, and the client out of sync. When that paradigm is abandoned in favour of optimizing value to the client economically, the interests of all three can align under fixed fees, possibly backed by a satisfaction guarantee.

A secret to success for companies switching to the value-focused paradigm would include this four-step sales/negotiation process:

1. Fully explore the problem that your client wants you to solve. For example, at a spa, have a conversation about why your client wants a facial. From that you can learn more specifically how to satisfy that individual.

2. Let the problem discovery discussion cover the rationale of the decision maker to engage your services. For example, maybe the decision maker wants a custom newsletter issued seasonally, like a tailor-made suit every quarter rather than an off-the-rack outfit that anybody could wear. The rationale might be the decision maker's belief that an authentic connection with clients better reflects the company's relationship with them, in contrast to most newsletters which do not generate a meaningful sense of connection with the issuer. Understanding the rationale helps to satisfy the need more precisely.

3. Summarize the basic problem and the rationale to gauge the importance of the work and arrive at a suitable budget. Then, work back from the budget to identify how to optimize value economically. For example, maybe the problem is an embarrassingly decrepit bathroom and the rationale to engage your services is that you specialize in bathroom remodelling. If you demonstrate comforting understanding of the problem and show professionalism about how to satisfy the client, then they might allot a $15k budget. Comprehend their needs well enough to reverse-engineer a good solution to their problem that ensures your profitability at that budget.

4. The first three steps reduce the risk for both parties. Many who go through the first three steps also have enough trust to pay more for a satisfaction guarantee. A satisfaction guarantee deepens the commitment and, if it adds a premium to the budget, likely increases the profitability of your performing the work.

Welcome to the value-focused paradigm.
Unlike Brantley Foster, people who work in the value-focused paradigm and find time-saving efficiencies point them out and share the benefits from doing so. When the scope of a project already underway must increase, a good purchase agreement allows the budget to increase in tandem.

Companies not already charging fixed fees but stuck in the billable-hour paradigm can make buying from them easier by fixing fees up front and guaranteeing client satisfaction. When buying from them is thus easier, they often find that the cost of making a sale goes down. The often-hidden costs of their personnel and operations not being aligned with the basic purpose of providing optimal value economically also decrease.

Fixed fees with a satisfaction guarantee can catalyze a value-focused shift to greater efficiency throughout an organization. This may lead to happier clients, more productive staff, boosted competitiveness, and increased profits. Let this be the secret of your success.

- Glenn R Harrington, Articulate Consultants Inc.

Notes
1: Ronald Baker: Trashing the Timesheet, Association of Chartered Certified Accountants, 2003
2: Matthew Stewart: The Management Myth, The Atlantic, June 2006
3: David Sandler: You Can't Teach A Kid to Ride a Bike at A Seminar p 164, Bay Head 2003

Glenn R Harrington is the Principal Consultant of Articulate Consultants Inc. Since 1996 he has specialized in consulting on authentic key messages as the basis for effective marketing, brand management, and client loyalty. His work frequently crosses over into management consulting where the matter of billing practices often arises as an Articulate value-add.
http://www.articulate.ca/

Slow and Steady Won the Race

2006-09-08T11:58:00.000-07:00

The Tortoise and the Hare
a fable by Aesop

There once was a speedy hare who bragged about how fast he could run. Tired of hearing him boast, the tortoise challenged him to a race. All the animals gathered to watch.

Hare ran down the road, then paused to rest. As he lied down, Hare looked back at Tortoise and cried out, "How do you expect to win this race when you are walking along at your slow pace?" Tortoise continued slow and steady.

Later, as Tortoise approached the finish line, the animals watching cheered so loudly that they woke up Hare. Hare stretched and yawned and began to run again, but it was too late. Tortoise was over the line.

Celebrating Tortoise’s victory, the other animals admonished Hare: "Don't brag about your lightning pace. Slow and steady won the race!"

This and Joe's Hotdogs brought to you by
Glenn Harrington of Articulate Consultants
www.articulate.ca

An Inconvenient Irony

2006-08-22T12:08:00.000-07:00

“The future of the book is the blurb.” - McLuhan

an inconvenient irony
If Marshall McLuhan’s famous book, The Medium is the Massage, were itself a blurb, then I could find the page where this famous statement appears. Having no index, though, the book isn’t convenient enough for me to verify my source! Blurbs, of course, don’t need indices.

a witty hyperbole
McLuhan’s statement was more hyperbole than prediction. Still, it has lasted some forty years because it states the obvious poignantly: As more and more information becomes available, efficient presentation becomes increasingly important. Concision and convenience really matter, but not so much that they should compromise good reading. That’s why the future of the book will always be the blurb.

a simple paradox
Few ideas fit into neat koans. And while efficient writing is not necessarily terse, modern readers dislike wordy text and extraneous content. Truly effective presentation, therefore, requires knowing the message, the audience, and how to make writing on any topic appeal to a given audience.

words to remember
As McLuhan pointed out in his own way, audience-appropriateness is crucial to the effective presentation of ideas. Often, it requires numbering lists and recasting jargon into plain English. Sometimes, it requires adding a few good pictures. Or an index.

- Glenn R Harrington, Articulate Consultants Inc.

No guarantee or warranty?

2006-08-11T08:30:00.000-07:00

I was just listening to Joe's Hotdogs. The part about guarantees and warranties stuck out for me this time.

You never need a guarantee or warranty on a hotdog. But if it's not what you ordered, or if it's terrible, then you'll probably want your money back. Anybody would expect that.

Likewise, if you buy a new car and find something completely wrong about it (like the A/C won't work) then you should expect to have the problem solved for free, and get an apology.

The commentary on visiting Joe's Hotdogs is right in saying that sometimes you don't need assurances before you buy - especially if you're into something as authentic or original. Still, people assume a guarantee or warranty on many purchases.

So, listening to Joe's Hotdogs gets you thinking about that stuff; doesn't it?

- Glenn R Harrington, Articulate Consultants Inc.