What's Stuff Worth?

"The value of an item isn’t determined by the owner, but by what the buyer is willing to pay."

A few years ago things were tight, like REALLY tight – like “Kraft Macaroni and Cheese is a treat”-tight. I had a La Salle watch for which I paid about $600.00. It was a few years old, but I had taken great care of it and figured I could get about $300.00 resell. I walked into a local pawn shop and presented my La Salle. The owner looked at it, turned it over, hummed and hawed a few times and said, “Nice watch. I haven’t seen a La Salle in a few years. I can give you sixty bucks for it.” I gasped. That was about a tenth of what I had paid new. I figured it wasn’t worth retail, but sixty dollars?

The pawn shop owner looked at me and said, “Maybe I can go seventy-five, but nothing more. I don’t get a lot of demand for La Salle wristwatches anymore.”

I was despondent. I had decided I needed money – $300 to be exact, $75 felt . . . useless. Picking up the watch, I headed for the door to leave. The owner called to me, “But if it helps, I’ll give you twenty bucks for that Hard Rock tee shirt you’re wearing. I collect them and I like yours. Haven’t seen one like it.”

"One of a kind . . . kind of like 250."

He hadn’t seen one like it because it was a bootleg. One I had designed and had printed for a trade show about ten-years prior. I had about 250 printed for $6.00 a piece. But the exchange made me wonder, “Why is this guy willing to pay me so much for a used tee shirt but not for a nice watch?”

A few years later I was sharing this story with a friend who owns a second-hand shop. I was telling it as if the pawn shop owner was crazy when my friend stopped me, saying, 

“He told you why the shirt was worth $20, but you were too upset to listen. If it had been me, I would have taken the money.”

My friend went on to explain the value was because the other guy collected Hard Rock tee shirts. He didn’t have one like it and wanted to add it to his collection. He asked, “Why didn’t you sell it? I’m sure you had more than one.” I did, about four more in a box at home. “You were so hung up on not getting $300 for the watch you walked away from an easy twenty.”

"Asher's."

My friend was right.

He related a story:

Remember about thirty years ago, Girbaud Jeans were the hottest thing going. People were paying over $100 for a single pair when you could get Levis for about twenty – and Levis where better jeans. But Girbaud were the “must-have” pants. All the cool kids had them and all the other kids wanted them.

"High School was GNARLY!"

About five years later, Lucky Brand became the cool jeans and you could by Girbaud at Army-Navy stores for about fifteen dollars.

"How much will you give me for a vintage Sleztak mask?"

He said he runs into the same problem when people sell used clothes to him that I had with my watch. People come in with an expectation of what they think their clothes are worth, without accounting for what someone else is willing to pay.

My friend went on to explain to me how second-hand retailing works:

Brand-name clothes come from brand-name retailers. They’re in brand-name malls with higher rent. The manufacturers charge a premium for the clothes and then there’s advertising. People are paying $60 for something that costs about $5.00 to make.

So when people sell the clothes to me their perception is the item is worth $60 and expect to get close to what they paid. When in reality, it’s only worth what the next person is willing to pay for used clothes. Generally about a quarter of the original price if the item is in good shape. My buyers won’t pay retail for used, so neither can I. Even if the tags are still on them, the clothes are probably a season out of date. So tags don’t really mean much.

If an item originally sold for $60, I may be able to sell it for $15 if it’s still in demand. But, like the Girbaud Jeans, at some point they just become “pants.” So I may only get $10 for an item if it’s “out-of-style.” If I think I can get fifteen bucks for something, I can’t pay any more than five dollars. Even second-tier retail space isn’t cheap. Then I have to account for employees wages, utilities, theft and being stuck with items that won’t sell. At the end of the day I can only buy stuff that I think I can sell quickly. Some people get upset, call me names, flame me on Yelp. I’m not trying to be mean or piss them off – I’m just trying to stay in business.

So, sufficiently humbled, I thanked my friend for the lesson in economics. As I turned to leave he asked me what time it was. I looked at the La Salle on my wrist and began to tell him. He laughed and said he was only joking. As I walked out the door he hollered, 

“The next time someone offers you twenty bucks for a used tee shirt, take it. The next guy may not be a collector.”

Have Some Balls and Take a Risk

Before anyone gets their hackles raised accusing the title of being a sexist statement – it’s not. Simmer down Alan Alda and Gloria Steinem, it is a glorious idiom which uses gonads as a stand-in for a behavior. Having balls implies a devil-be-damned risk taking that not all people are willing to execute. It derives from the alpha male behavior of mating. He may get shot down fifty times, but he takes the risk that the fifty-first will be successful. A beta male may only attempt a few times before slinking back to the corner.

"Mate? Nah, I'll wait."

The converse idiom should be, “Use your ovaries.” This doesn’t imply weakness, but a nurturing behavior to protect what is important above all else. Using your ovaries can represent self-sacrificing bravery versus wild abandonment of reason.

Consider Amelia Earhart, she had balls. She knew flight was possible, but knew it was a risky proposition to attempt to circumnavigate the planet – and she did it anyway. She only risked her life and that of her navigator. Amelia had confidence she would succeed. She had balls.

"Fly non-stop to Paris? I'm gonna fly around the
World, Limbergh. You punk-ass bitch."

On the flip-side, Joan of Arc used her ovaries. She defended France like a mother bear. When the King of France, Charles VII, did not protect his country from the English – Joan stepped in to lead an army. She refused to see her beloved France fall to an enemy invader. Joan had ovaries!

In business, entrepreneurs typically have balls, while CEO’s use their ovaries. Neither behavior is a negative as both have an important place in business. It takes balls to risk it all on a new venture, but it requires using your ovaries to protect what you have built. Not mutually exclusive traits, but not always shared either.

"Todd, before we finish the merger, tell me, how are you feeling?"

There’s a big difference between taking a risk and making a gamble. Carl Icahn was recently heralded for making a $100 million investment in Lyft. He is quoted as saying the investment was a “bargain.” Icahn’s investment accounts for 0.42% of his reported $23.5 billion net worth. Icahn’s investment neither required having some balls or using his ovaries. This was substantially less by percentage than the investment Lyft founder John Zimmer made in starting the company. For Icahn, It was a strategic gamble of less than one-half percent of his fortune. Having some balls is spending $1,000.00 on an idea when you only have $500.00 left in the bank. It’s not calculated, it’s not wise, but it takes balls.

"He's a poor boy. Empty as a pocket. Empty as a
pocket with nothing to lose." - Paul Simon

So what happens when the entrepreneur doesn’t use their ovaries and the CEO doesn’t have some balls? Typically a slip in relevance and market share. When Jeff Taylor founded Monster.com he stated the company had a Noble Purpose. He was determined to help people find a better job – and he surrounded himself with like-minded staff. In 2014, Monster.com’s CEO Sal Iannuzzi resigned after shares had fallen 43% in one year. The balls shown by Jeff Taylor were overwhelmed by the CEO’s ovaries. The desire to serve the customer, job seekers, was overshadowed by focusing on the shareholder. A shift in corporate mantra led to a loss of the talent that helped Monster.com become the cutting-edge tool for employment search.

"I used to be scary. SCARY AWESOME!"

What can a company do to maintain relevance in a fluid economy? Have some balls. A good CEO is a manager – but a great CEO is a leader who employs people with balls. Those who have a risk-taking mentality with an entrepreneurial spirit. They bring with them a “why not” attitude and are willing to take responsibility if their idea fails. They understand working with a shoestring budget and know how to get the most out of the dollar spent. They focus on the success and not the ROI. People with balls thrive on continued success while those who use their ovaries protect what they already have without taking the risk to improve.

When a CEO focuses more on budgeting than expansion, the company's middle management will take this attitude to the extreme. Too often bonus plans are based upon coming in under budget rather than growth and client acquisition.

"We don't need customers, I cut the budget!"

I overheard a member of the management team for a slowly dying restaurant chain tell an employee,

“We’d make a lot of money if we didn’t have to serve all these customers.”

This attitude was driven by the company’s president focusing on reducing costs and maintaining budget rather than invest in ways to improve guest count. The company failed to recognize the growing competition in casual family restaurants and believed their reputation was enough to keep guests coming in. The innovators were pushed out while sycophants were promoted. Existing management has learned to keep their heads down and simply wait for retirement. 

It’s time for business to get some balls and stop using their ovaries.

If you have questions regarding your business marketing strategy, feel free to contact me at darren@darrensomsen.com.

Subscribe to our mailing list

When Customer Service Fails: A Tale of Two Countries

The caller had a request, fix the billing error of $250.00 eBay charged to his PayPal account.  He explained the eBay account had not listed anything for sale in over a year, thus the “Seller Fees and Associated Charges” were in error.  The eBay representative confirmed the “primary” account had not been used in over a year, but the “secondary” account had.  Due to eBay’s research, they had determined the two accounts were “very similar” and had linked them, so the charges to the caller’s PayPal account were valid.  The caller explained there was not a secondary eBay account, never had been, and thus the other account was not his.  The eBay representative assured the caller they had conducted a thorough investigation and the case was closed – the charges stood.  The caller politely asked to escalate the call to a supervisor.  He was told by the eBay representative the supervisor would tell him the same thing.

This is when the caller lost his mind.  

"I will crawl through this phone and eat your soul!"

Quoting his wife, “I have never seen you so mad.  You frightened me.”  The caller’s wife had left the room crying.  The caller was reduced to screaming to be connected to a supervisor NOW!  Reminding eBay THEY had experienced a data breach, and that the “secondary” account was fraudulent.

The call was finally transferred to a person identifying themself as a “supervisor in the Trust & Fraud Department”.  This individual stated eBay HAD identified the “secondary” account as fraud, that it had been closed, and that they clearly knew it was not associated with the caller’s primary account. 

The response from the supervisor was 180⁰ different than the first representative who had assured, 

“The supervisor will tell you the same thing I am telling you.”

The supervisor with eBay then explained that the charge had already been processed and the caller would have to dispute it with PayPal.  The caller asked the supervisor three times, “And I have your assurance eBay WILL NOT dispute my dispute of the charges.”  He was told eBay would not.

This eBay call center was located in India.

"Thank you for . . nothing.  I really don't care what you want."

The caller, whose voice was now extremely raspy from yelling, contacted PayPal. His first question when the young lady answered, “Can you please tell me in what country you are located.” The bright and helpful young woman stated, “The United States, sir.” A wave of relief washed over the caller. He explained the situation and asked Tiffany for help. She ask the caller to hold as she connected eBay on the call. When the line connected she explained she was calling from PayPal and had the account holder on the line. The caller explained the situation to the eBay representative, as apparently notes from the previous two individuals had not been logged into the system. The eBay rep asked questions regarding the items that had been listed, the callers address and telephone. He quickly realized an error had been made.

"Good afternoon, sir.  And I really mean it."

The PayPal representative – whom the caller was unaware had remained on the line – retook the call, thanked the eBay rep for their time, and disconnected them from the call.  Tiffany apologized for the inconvenience and stated she would take care of the problem immediately.

. . . and she did.

While the caller was still on the line he received an email stating a reversal of the charges had been processed and would be in the callers account within 3 to 5 days. 

Tiffany exceeded expectations as the money was in the caller’s bank account the next day.

This is a prime example of American problem-solving versus other countries whom follow a script.  The eBay representative followed an on-screen script without listening to the caller or researching the problem.  He proceeded to anger the caller, and drive a stake in the caller’s faith in eBay, simply by not following a simple rule Americans seem to innately possess – listening to the customer instead of waiting for their turn to talk. 

Executives with MBA’s at multiple Fortune 500 companies have expressed the value of off-shoring jobs to India as,

 “ . . . [they] have college degrees and will work for one-third the wages of Americans.”

"And momma said it wouldn't do me any good."

What they fail to account for in labor savings is the loss of customers.  Payroll comes out of one cost center, acquiring customers and customer retention from another.  They may save a few dollars, but ultimately they lose the customer.  The income source dries up, but to paraphrase these executives,

“That’s someone else’s problem.  I cut costs in my division.”

As I look at it, I’ll take American high school graduates any day than low-cost college graduates from India. The other guys may have saved a few bucks in the short-run, but I’ll still be in business when they drive off all their customers.

If you have questions regarding your business' marketing strategy, feel free to contact me at darren@darrensomsen.com.

Subscribe to our mailing list

. . . And Beer Won't Make You Sexy.

So, according to a Huffington Post article, Red Bull has a pending class-action lawsuit do to it's slogan, "Red Bull Gives You Wings."  The plantiff is apparently a dumbass and cannot separate hyperbole from statement of facts.  I recommend anyone coming in contact with the individual keep knives away from him as they do not clearly state they are sharp and can cause open wounds or scissors, as they do not warn people not to run with them.

Better yet, please escort this person to a padded room and only feed them soft food so as they do not choke from improper chewing.

Hyperbole is a cornerstone of advertising and marketing.  It allows a brand to make a statement that is humorous, or absurd, to capture the attention of the consumer.

One of my first marketing freelance jobs was redesigning a local restaurant's menu.  Their food was delicious, but the menu was bland.  I used woodcut images and descriptive paragraphs to punch-up the offerings.  It was the J. Petermann catalog of prepared food.

The restaurant was well-known for their carrot cake.  It was moist, used fresh walnuts, did NOT include raisins, and had a very thick layer of smooth, delicious cream cheese icing.  I described the frosting as, " . . . so thick, you'll have to stand on your chair to eat it."  This was hyperbole, but made the point that it had a lot of icing.

Six-weeks after publishing the menus, the client called and asked me to change the description of the carrot cake.  Sheldon explained he had a rather large customer who summoned him to her table to complain the cake's icing was NOT that thick.  I suggested he ,"Grab the plate, hold it over his head, tell her to eat the g*dd*mmed cake -- then get the f**k out of his restaurant."  After he shot semi-hot coffee out his nose, he said he couldn't do that, but that he'd pay for the reprinting.

I think his giving in to an absurd complaint was indicative of businesses giving in to the litigious nature of a narrow segment of our society who has taken it upon themselves to protect us from humor.  As a society, our continued capitulation to self-appointed nannies will only spiral down to reduce marketing to bland statements of facts and dehumanize our culture.

Because anyone who truly thinks Red Bull will ACTUALLY give you wings lacks the IQ to sign their names with anything sharper than a crayon.

A suggestion for Red Bull's new slogan, "Stupid Lawsuits Make You a F**king Idiot."

Good-Time Rock and Roll Excellent Company Want You

The headline immediately caught my attention -- but not in a good way.  "President Of Staff, Powerful Company Posistion" set off red flags before I could read the body of the posting.  It reads like an email from a Nigerian Prince who wants "kind and gracious help in the name of Jesus Christ" to move $137,549,011.95 out of his Country, of which he'll give half for your help.

We'll never know if this is a legitimate job posting because no self-respecting executive is going to allow this company to have their personal information.  The title President of Staff is not in the current business lexicon of which I am aware.  What "Powerful Company" and are they driven by good intentions?  Don't want to get half way through an interview to find the position is the president of the League of Doom or ISIS.  Unless you're Lex Luthor, it would not look good on your resume.

So, if assumptions are made this is a legitimate offer, where did the staff err?  This wasn't posted on Craigslist, but on a site I have not heard of, "www.postjobfree.com" -- which itself sounds like it was not created by someone for whom English is their first language.  Unfortunately, postings on this site are being picked up by legitimate job listing aggregators like ZipRecruiter.

But are legitimate companies suffering from similar errors in their job postings?

The note above comes from a legitimate company advertising on Monster for a VP of Sales and Marketing.

Did the company's HR department misunderstand the hiring manager's request for references prior to a job offer? 

". . . you may be required to arrange an interview with your previous bosses, peers and subordinates." 

The wording is clunky and open to misinterpretation.  Does the hiring manager want to check references, or interview the references to see if they're a better fit for the position.  And the prospective employee may be responsible for setting up the interview?  Phone or in person?

"Hey Bob, it's me, Jack.  Jack Taggert, I was the Director of Marketing up until two weeks ago when the SEC came in and you had to layoff 90% of the staff.  Okay, now you remember.  Well, I have a pending job offer that looks good, but they want to interview you first.  I don't know, they just told me to set it up.  No.  In person.  Come on Buddy, can you do me a solid?  No?  Home confinement?  Damn!  Sorry to hear about the indictment, Bob.  Sure.  Maybe we can get together in a few weeks." 

Then there's the second paragraph:

• Send a resume.  To this:  duh.  The job hunter is applying for a position with the company.  Of course they are going to send my resume.

• Recent salary history.  According to Nick Corcodilos, a veteran Silicon Valley headhunter, "Politely but firmly decline to disclose your salary history. Substitute this: 'I’d be glad to help you assess what I’d be worth to your business by showing you what I can do for you but my salary is personal and confidential, just as the salaries of your own employees are.'"

• A short write up describing a time when you managed a team that grew revenue substantially.  Does the HR department or the hiring manager even intend to read the resume of the applicant?  As a serious professional would have this information as a highlighted item in their resume.

My advice, proofread job postings as carefully as you will judge an applicant.  A company doesn't want to damage its reputation by reading like a scam email.  Even in a tight economy, prospective employees are interviewing employers as well.

If you have questions regarding your business' marketing strategy, feel free to contact me at darren@darrensomsen.com.

Subscribe to our mailing list

The Star-Spangled Banner

I had an unexpected opportunity to learn something new last Monday.  I watched over 50 children sit in rapt attention as Quin Denning, Principal of Providence Academy, explained the origins of the United States national anthem, The Star-Spangled Banner.  Mr. Denning explained in-depth why Francis Scott Key was on the British warship when Fort McHenry was attacked.  How during the onslaught the flag became tattered but never faltered.  And what Key and other patriots found when they entered the fort.  It was a moving moment for me on two fronts:  although I thought I was well-versed on America’s history, Mr. Denning taught me something I didn’t know . . .

. . . and I saw joy on the faces of children learning.

Providence Academy is an all-inclusive, Kindergarten through 12^th Grade, private school that does not accept a single dollar of taxpayer money.  This allows them to open each school day with a prayer, the Pledge of Allegiance, and a devotional thought.  When the children break they are smiling and excited for class.  They are open to learn.

I overheard one of the parents comment, “[He’s] never been excited to go to school.  Now he wakes up saying, ‘Yea!  I get to go to school.’”

It didn't take long for me to figure out why kids feel this way about Providence Academy.  From Quin Denning, to the teachers, and the administrative staff, they are all excited to be there.  Instead of memorization the children are taught to learn.  They are allowed to fail – and learn from the experience. 

Instead of a movie and a spiked thermos of coffee (you know I'm talking about you, Mrs. Carter), the teachers at Providence Academy are truly preparing kids to be successful beyond school walls.  Local business people are invited in to lecture and provide real-world insights into what the children are learning.

So, as I stood with kids from five to seventeen, hand over my heart, singing The Star-Spangled Banner, I thought, “There is hope for this generation.”

To find more information about Providence Academy, or to make a donation, go to http://Providence.academy.

If you have questions regarding your business' marketing strategy, feel free to contact me at darren@darrensomsen.com.

Subscribe to our mailing list

Marketing in the Digital Age - The Rice Garden Case Study

(Author's note:  This case study was originally written in 2011 as a primer to generate a consultation contract.  Some of the statistics may be out-of-date, but the information regarding marketing remains relevant to any business.)

What is Marketing?

Ultimately,"marketing" is any medium that provides a positive message or introduction to a product or service. Whether billboards, radio and television advertising, direct mail, internet,or word-of-mouth . Marketing is how you drive sales for your business.  The picture to the right is an iconic example of building brand-awareness and sales during the 1930's.  Marketing has always adapted to the moment and utilized new opportunities to increase sales. Translations from the walls of Pompeii have shown taverns and merchants eagerly promoted themselves by scrawling messages on walls throughout the city. Marketing is not new -- but it is ever-adapting.

Marketing & New Technologies

In A Christmas Story, Ralphie eagerly awaits delivery of his Little Orphan Annie decoder ring.  Upon its arrival he carefully writes each number so he can "read" Annie's special message.  As he anxiously translates, he discovers the message reads, "Drink More Ovaltine".

Ralphie may have been disappointed, anticipated something more secret, but Ovaltine's marketing fully utilized the technology available. They sponsored the radio program, were featured within the program, gave away decoder rings by simply sending in the foil top from a can of Ovaltine, and advertised in the Little Orphan Annie comic books. Ovaltine was the "must-have" product for children. If for no other reason than to get the premiums.

Adapting to New Technology

Ovaltine's marketing team recognized keeping their message in front of children, and mothers, was the best way to maintain and increase sales.

As radio programs were replaced by television, Ovaltine recognized the need to adapt to the new entertainment medium.  Ovaltine advertising could be found during children's programming, daytime television, and family-friendly programs.

Even in today's changing technology, you can still find Ovaltine.  A Google search of Ovaltine produced 368,000 results in .17 seconds. Go to any blog talking about Oval­tine and you'll find a banner ad or Google Adwords selling or promoting Ovaltine.  They didn't leave advertising, they just adapted their message to use new technology.

The Rice Garden and Branding

The Rice Garden is virtually invisible.  A search of "Chinese in South Jordan" did not yield any listings for The Rice Garden, but nearly 10 for Panda Express. A direct search of www.thericegarden.com showed the nearest location as West Valley City, nearly 8 miles from South Jordan, although there is a location directly in South Jordan.  A search of "the rice garden South Jordan" yields results, but it does not say it is located within the Smith's Grocery. This is not effective with an independent Chinese restaurant two doors down.  A customer specifically looking for The Rice Garden in South Jordan is more likely to go to a competitor based upon the lack of exterior signage or specific location details.

In .21 seconds, only 29,400 results for The Rice Garden were found on Google. The first two were from www.thericegarden.com and www.ricegarden.biz. -- two competing websites from the same company. The fifth listing was from www.yelp.com from a customer review that stated,

“At the Rice Garden, I always know that there will be a line at Rice Garden, the food will be OKAY (at best), and there will be snot-mouthed rude people . . ."

This is from "above the fold", the first thing people see just from the search for "The Rice Garden".

The sixth is www.ricegardensettlement.com, a website for the class-action settlement for an unsolicited fax campaign.

 During a visit to a local Rice Garden, the only visible advertising was a sandwich board located outside the entrance of the supermarket, and it doesn't say much.

Creating Brand-Awareness for The Rice Garden

The Internet has been called, "the word-of-mouth in the digital age". There was a time businesses and restaurants could rely upon direct word-of-mouth and location to drive traffic.  An "early-adopter" would try a new restaurant and tell friends, family and neighbors. A convenient location and a good review would build a good clientele. The exception was exclusivity and a unique location. Now the Internet has made anyone with a computer an instant critic.  Off-hand or negative comments on Facebook have been attributed to the sinking of a movie's opening in its first weekend.  Restaurants are not immune from the same phenomena.

So how do we create brand awareness and overcome negative impressions of The Rice Garden with consumers?

Radio

Radio advertising is an inexpensive medium for building brand. With the consolidation of radio stations within DMAs (designated market areas) it has become easy to advertise across multiple formats under a single advertising contract. Radio also allows for the purchase of air time within specific regions and times to maximize impact. The creation of a radio ad offering, "10°/o off from Five to Seven PM just by mentioning this ad" and running it from 4:00 - 6:30pm can drive traffic through the immediacy of the message. Lunch business can increase by suggesting catering for the whole office.

"For less than $5.00 per person, you can have Beef & Broccoli, Chow Mein, Ham Fried Rice, Master Fung's Signature BBQ Pork, and egg rolls."

Television

The expansion of cable networks offers the ability to choose broadcast time, networks and DMAs.  For as little as $70.00 per flight, advertising can be run on networks like Style, USA, CMT and Discovery. Through Google Adwords television, flights on DISH Network can be bid based upon how much you want to spend per 1000 impressions (people who see the advertisement for at least 5 seconds).  Bidding by region, network and time, television flights can be organized to meet growth and branding within specific corporate regions.

A :30 - :60 second advertisement would cost $12,500.00 to film and edit. This is very reasonable and is filmed in HD.

Direct Mail

Whether piggy-backed in mass-mailers like Valpak or an individual postcard, direct mail remains an effective method of branding and driving clients to service and restaurant businesses.  Offering a coupon for a FREE item or 10°/o off is an effective way to get prospective customers to remember a business, even if they don't use the coupon.  In addition, direct mail can be targeted based upon zip codes. Targeting homes within a 5-mile radius of specific stores will drive sales.  The average cost of a 9"x6" postcard, with list rental, postage and printing is about $0.89 per card.

SMS

Mobile marketing via SMS (short message service) was heartily embraced in Europe and has been making significant in-roads within the United States.  Companies like USA Network, Domino's Pizza and Papa John's utilize this powerful tool to reach their "loyal" customers. They offer contests, discounts and SMS-only specials that drive customers to the business. SMS can be used very quickly and by area code, allowing for a sales boost in specific regions if sales are slow for a specific day.

Double opt-in lists can be rented for an initial boost into SMS marketing or a list can be grown organically via in-store offers and the web site.

Internet

Internet marketing appears daunting to many businesses. People cite being unfamiliar with computers, let alone Internet code, to create an effective marketing web site.  Often they have a very simple web site created because they feel they "have to”, failing to take advantage that the Internet has given them their own "channel" to promote products and services.

Word-of-mouth is very important to any business, particularly a restaurant. Using a :60 second video on a web site where loyal customers discuss why they eat at The Rice Garden, what is their favorite dish, and how it is a value to their budget is incredible.  A customer's testimonial on the web site can be interpreted as a word-of-mouth recommendation.  In addition, video improves a web site's SEO (search engine optimization) by keeping people on the page for at least one minute, thus improving the web site's ranking.

In addition to SEO on the primary web site, The Rice Garden can improve its web presence with additional web sites that relate to The Rice Garden.  At the store level, there has been some efforts to promote Master Fung, but there is very little about him.  A web site can be established building upon the mythology of Master Fung. His background, recipes, and a blog "updated" by Master Fung. As the hypertext and key words would relate back to The Rice Garden, this would improve search engine results.

Key words and banner ads are also an inexpensive and important method to improve Internet visibility.  Selecting key words like, "Chinese, take-out, salt lake city" will put a sponsored link on-screen when someone searches for this information. This will give The Rice Garden an advantage in capturing this potential customer.

To support this, banner advertising can be purchased on web sites which the content and demographics match The Rice Garden's clientele.  The banner ads can offer a link to a "Coupons" page on the Rice Garden web site.  The click-through can improve SEO and individual store sales.

Another change necessary is improving visibility of positive dining reviews.  This can be changed by having friends and family of team members go to sites like www.yelp.com and enter a positive review.  Another method, with broader potential, is have a "Tell Us What You Think" contest. The Rice Garden Customers can win "Dinner for a Year" (up to $25.00 per week for 52 weeks) simply by posting a review on a business/dining web site and submitting the link through www.thericegarden.com/contest with their name, address, email, phone, etc. This encourages people to take time to submit a review as there is now an incentive to do so.

Internet - Outside The Box

A unique way to promote The Rice Garden is to sponsor recipes at sites like www.allrecipes.com.  True foodies love to cook -- but also want to know if they came close to the original.  Instead of posting a recipe for one of the menu staples, offer a monthly "House Special" and post the recipe to various cooking web sites.  These do not always have to be an entree, but could be a dessert, like "Chinese Cheesecake Eggrolls".  This allows a way to promote the brand, store sales, and test market new product offerings without changing the balance of the menu.

Digital Signage

Digital signage is one of the fastest growing advertising mediums. Sometimes referred to as "Digital-out-of-Home" marketing, it is essentially any method of selling to an audience outside of their homes. Digital signage takes advantage of "dwell time".  As a guest is waiting on line the digital signage is programmed with a variety of changing screens.

Digital signage is a "silent salesman".  It overcomes the aversion some guests have to "being sold to", or possible language barriers.  Influencing the guest before they have ordered, like suggesting eggrolls with their order, will increase the check average.  It also will promote upcoming events, sales, promotions, catering, etc. Digital signage can be programmed to deliver any message that is advantageous to promoting additional sales, thus increasing the per-check average.

Digital signage is also effective at capturing the attention of the casual passerby. The bright screen and motion graphics are designed to draw attention to the message.  If the signage gets a passerby to watch for 5 seconds, the chance to sell to them increases. It will also allow employees to engage with the individual.  Offering friendly conversation and a suggestion of a signature dish will change a passerby to a client.

Digital signage can help make a sell. The presentation of the family meal in a photo or motion graphic can emphasize the value better than a steam table. Stating, "It comes with ....." may not be as effective as showing the customer how much they will take home. The pre­sentation of the appetizer platter may move them from an order of eggrolls to multiple items.

If you have questions regarding your business' marketing strategy, feel free to contact me at darrensomsen@gmail.com.

Subscribe to our mailing list