Humble Dogs

That they might see with their eyes, hear with their ears, understand with their hearts. Matthew 13:15b

Archive for the tag “advertising”

Overstocked Sale

We are Overstocked

We are Overstocked

One ad that keeps popping up on radio and tv is the
“We Are Overstocked Sale”

I have been in business many years and one the single most important factors in management is inventory. Stock costs money. Overstock is working capital tied up in storage. When most businesses are operating on limited budgets, inventory excess means someone is not getting paid or a bank note is needed to meet expenses. Either way, overstock is a drain on profit.

Inventory is probably the easiest part of business to control. It is a tangible ingredient. Not like the effects of economic downturn, or customer growth and loyalty which are intangibles, ingredients one has to work with and around. Or bank rates, which generally are out of business control, or repairs and maintenance which can bring sudden surprises. Employee relations are another of the intangibles, more than simple counting and ordering.

Yes, there is need for sales projections, but if you are on top of your game and watching the pulse of the industry you are in and look back on past performance, what inventory is required to cover sales should not be such a burden on the company budget.

My point is this; Why would I trust buying from a company which advertises their poor management? Especially when it is the same companies, most often furniture and appliances, telling the same “Overstocked” story over and over again. They are either extremely poorly managed or outright lying to customers and just using overstocked as a sale strategy. Either way, I don’t want to do business with them. They think people are stupid. The ads are directed at the gullible.

If poorly managed, then the services they offer will be poorly managed. If they are lying about being overstocked, then they most likely will lie about their product and service.

Advertisements

Get 1 FREE

Buy 1 get 1 Free

Buy 1 get 1 Free

We have all seen similar advertisements like the one on the right. A product hyped as something you can’t do without.

Buy 1 Get 1 FREE!
Just pay shipping and handling.

They are appealing to basic human senses, something for nothing.

But Wait!

There’s MORE!!

Appeals to our senses of curiosity.

It is one of the oldest marketing tricks in the book. Surprisingly, it still works. And works well.

Lately marketers, especially on TV have added a twist. Up selling 4-6 items at one low price – just pay shipping and handling. Usually around $6.00.

Sounds a fair deal.

Have your credit card ready and call 866-_____ Very often you are paying for the call. The marketer receives a percentage. Between $4 and $10.

Before you can ask what the final costs will be, they have got your phone number – placed you on their suckers list, plus you have given them your credit card number.

Now you are about to find out those shipping and handling charges have added up to $36.00, sometimes more plus the price of the item, usually $19.95 or $24.95, plus the phone call of $8.00 – $20.00 and the final result is $74.90 + tax.

Not much of a deal is it?

Here is some interesting reading: Deconstructing “Buy 1 – Get 1 FREE!”

Commercial Love

People love advertising, commercials. So much so many will even pay to see them.

I don’t understand peoples’ fascination with advertizing. Is it the media that builds the desire to watch?

Advertisers pay huge amounts to place their newest commercials on Super Bowl time, part of the value must surely be that they know that even stations that don’t carry the Super Bowl game will still play the ads as part of their news or sports broadcast. Do they play them for free or are they being paid for the hype?

Many television stations have a once a week segment showing what they consider the best or funniest commercials. That I can perhaps understand, do they get paid to show them?

The biggest mystery to me is brand name clothing. Why would anyone pay extra to have Tommy Hilfiger in bold letters printed across their chest or back. Or Nike. Or Bum. You can buy the same quality shirt or pants without advertizing for less than half price at other stores and often at the same store. This is a day and age when it is very hard to have people volunteer their time for free, yet those very same people are willing to pay the garment distributor for the privilege of advertizing for them. I say, if you want me to be your billboard, give me the shirt.

Then there are the Home shows, Car shows, Boat shows Garden shows and a host of other advertizing venues that charge admission to go and see a suppliers product. What’s up with that? Pay 20 bucks or more to see the same product you can find at any building supply outlet or garden center.

Post Navigation