Wasted Investment in Branding

Recently, I needed a service call in my home to fix a problem. I don't want to identify the company, but it is a large enterprise which invests lots of money in its brand. The service person was a very nice, chatty guy. As we talked, he proceeded to tell me all about the problems in his company ... how it was losing its local roots ... how disillusioned employees were ... etc., etc. So, all the money that the company had invested in advertising, public relations and community events that had influenced my positive image of their brand ... went right out the window. That's why internal marketing and good employee relations are such a critical component of branding.

Pay What You Want ...

This afternoon I'm going to do some on-air pitching for Hawaii Public Radio. They have an interesting business model. They provide the service at no charge and then ask people to make a voluntary payment. It's interesting and unusual, but it turns out that this model is not unique. Recently a restaurant implemented a "pay what you want" scheme. They were confident enough in their product quality that they were willing to try this. While they had some "cheap charlies" and deadbeats, in general they found that people were paying expected menu prices ... or, surprisingly, some were paying a premium. Which goes to show that when you provide real value, customers are generally willing to pay for it.

On the other hand, companies that provide lousy value get complaints about prices. Once again, airlines are a good example of a business built on cutting corners and squeezing value.

Circumstances Have Prompted Me to Blog Again

I've been silent for some time ... feeling that no matter what, things are taking their own course. What can one do? But then came ... the Arab spring ... occupy Wall Street ... and other evidence that people can get stirred up and make change. And then there's ... the craziness of the political scene and the inability of people to work together. So, maybe it's time to blog again.

I'll start with a recurring theme: the true foundation of prosperity is creating honest value. Not derivatives. No get-rich-quick schemes. No flim flam.

Good marketers and good managers have always understood this. Quality and value stand the test of time. Everything else will eventually come crashing down.

I'm including some wisdom from Calvin and Hobbs.