Posts Tagged ‘6PAC’

HAVE WE BEEN HOODWINKED OUT OF OUR JOBS?

Tuesday, April 21st, 2009

I’m no economist or financial historian. I’ve often been accused of oversimplifying complex situations. So, with those two disclaimers out of the way, please consider my humble layman’s assessment of the current state of the job market and overall lack of work for companies like ours.

Personally, I believe we have been bamboozled out of our jobs! We’ve been hornswoggled right out of work!

The cause: someone convinced us that America should not manufacture anything.

Maybe the ever-present mainstream media, helped us buy into the notion that the “new economy” will be based solely on concepts like “intellectual property”, owning licensing rights, “content”, stock and the belief that everyone can make a good living by the Internet.

Was it not apparent to anyone in charge that the nation’s commerce system depends upon us making stuff for domestic consumption and to sell to other countries? Am I again “oversimplifying” things when I think that a gargantuan trade deficit might be due to one party not manufacturing enough product to sell to other parties? Is there some underlying dynamic that I am not intellectually qualified to grasp?

Did anyone stop to consider that eliminating American manufacturing would in effect eliminate an entire social class? Do you think it’s that same endangered social class of which we heard so much during last year’s political campaigns?

Why wasn’t this situation deemed a “crisis” before it was an election platform?

I’ve also been accused of hating the “world’s largest retailer”. I think most misunderstand my principal-based refusal to shop at the behemoth “big box” store and my accompanying soapbox pontifications on the subject. The point I have been trying to make for about a dozen years is simply that I believe the long-term effect the retailer’s business model has on the country is an adverse one.

I always hear “But they have the lowest prices.” My answer is usually something like, “Yeah, but years from now, it won’t matter how low the prices are. We won’t have jobs to make money to buy any of the foreign-sourced stuff they’re peddling.”

I believe that those low prices are made possible only by the disproportionately low salaries the foreign workers are paid and the lack of so many stifling governmental restrictions imposed upon domestic manufacturers. But, I could be mistaken.

I have mentioned both the “lack of work for companies like ours” and “manufacturing” above. Many may see “Advertising” in our company’s name and think we’re the type of agency that gets paid big bucks just to sit around, brainstorming up the next “cutting edge”, witty creative campaign to sell to some deep-pocketed client. That just ain’t AdTex Advertising. It’s not who we are. We’re more like the hard-working, “front-end feeders” for an old-fashioned, print-based manufacturing operation. Our income (still virtually non-existent, by the way) is predicated on those house-size web presses running at our print partner’s Midwest location. The creative process represents a substantially small percentage of client cost. That’s why we keep overhead so low and run so lean. That’s why our total service package is so economical.

Our history is actually in Home Textiles Manufacturing (see the “LDB” article here), an industry, which I hear, is nearly extinct domestically. We were the in-house advertising department for the premiere American manufacturer of bedding and bath products. Some great towels, sheets and comforters were made right here in the US of A by hard-working, relatively low-paid, taxpaying citizens. I wonder if more of those tax dollars could have been used to save their jobs. It seems the reciprocal effect would have a substantial upside — more workers continuing to work and pay more taxes.

BAILED RIGHT OUT OF WORK

The frustration with this situation recently hit the fan with my print partner, Mike. I believe the final straw was flipping to the backside of an American Automobile Manufacturer’s car brochure where he discovered “Printed in South Korea” in the small print. Mike works for a great, family-owned, 121-year old Visual Communications (read “printing”) company based in the same state as the “Big Three” auto manufacturers. He took his outrage to local lawmakers, where he got someone’s ear. He filled that ear with an informed and organized rant about his displeasure with having taxpayer “bailout” dollars appropriated for what was effectively the elimination of his job. He detailed his assertion that if our lawmakers would work to ease the financial burden of meeting the stringent standards to which our government demands, his company would be more than competitive. He’s sure that with a “leveled playing field”, the foreign printers couldn’t touch his prices. Mike challenged the lawmakers to tour his company’s facilities. He also invited them to bring their children along and pull samples of anything on the presses at any time. He assured them they would never find any smut or questionable material, just superior-quality American manufacturing.

I guess I’m just old fashioned. (That was likely apparent when the younger readers pulled up Wikipedia to find “hornswoggled” or Googled “bamboozled” and the older ones grabbed their Funk & Wagnall to check my spelling). I still subscribe to and read the daily newspaper. A recent edition (Sunday, April 19, 2009) of the local daily included a Parade magazine article entitled “What’s Made in the USA”. It stated that “America still produces more goods than any other country — $1.6 trillion worth, according to the federal Bureau of Economic Analysis. It says that “America currently accounts for 20% of all manufacturing output.”

Maybe we’re also the most automated and efficient manufacturer on the planet. Is that where the massive job losses happened? The article also mentioned some analysts’ predictions that “China will soon overtake the U.S. as the world’s leading producer.” The article never mentioned which countries are the largest consumers. Also note that the Parade magazine article was less than a half page, including a chart showing “What We Make”, “What It’s Worth” and “Whom It Employs”. A preceding article on “What is Royalty in the 21st Century” took two full pages. More fascination with foreign countries! (that’s one of those tongue-in-cheek jokes, ya’ll).

I close how I opened, saying I’m no economist/historian and I tend to oversimplify complex situations.

That’s why I look forward to your feedback. (Notice how this blog entry is riddled with questions?) I’ve always been one to learn by asking.

Maybe you’re an economist, scholar or have exhaustively researched the situation. Then you can enlighten a simple, old-fashioned advertising “manufacturing” guy about where more income is generated when we’re not manufacturing enough desirable products for someone, somewhere to buy. Then let me know who runs the equipment to manufacture them.

PEOPLE ARE SHEEP

Friday, January 30th, 2009

I once learned a great marketing lesson from a very unlikely source. A good friend, John (now deceased) owned a luxury suite at Texas Motor Speedway. After enjoying a NASCAR Sprint Cup race, John and I left the suite for a fresh-air break. High above the speedway, the breezeway has these narrow little horizontal windows overlooking the parking area. We were leaning on the wall, watching thousands of cars attempting to exit the parking lot.

Note that a NASCAR Cup race at TMS seems to always draw the facility’s estimated 212,400-person capacity (approx. 138,100 seats plus infield spectators, RVs and fans in the suites). There are approximately 80,300 parking spaces.

We were watching at least 10,000 cars attempting to exit a parking lot. The portion we were watching has about four exits. But all of the cars were clogging a single exit.

Now John, though smart, wasn’t an introspective kind of guy. But, after a few moments of observing the goings on below, he noted that, “People are sheep.”

“What?” I asked.

“People are sheep.”, he repeated.

“Look at all those cars, trying to squeeze out that one exit. One car went there and all the others mindlessly followed. The other three exits are empty.”

“Sheep.”

Now, I’m supposed to be the big thinker, here. Maybe that’s why I felt the need to respond with some sage wisdom of my own.

“John, we’re up higher. We can see the other exits. Maybe they couldn’t.”

I made my point. But John’s point really stuck with me.

Those TV reality shows come to mind. The number of them is ridiculous. Eclipsed only by the absurdity of some of the premises. I understand that they’re cheap to produce (compared to half-hour sitcoms and hour-long dramas), and thus plentiful. The concept has been around for ages — think Candid Camera, This is Your Life and the original American Gladiators. But it seems that once an excessive amount of deception, backstabbing and conniving was added to the recipe, they took off and spawned one crazy program after another.

The apparent result of another stroke of marketing brilliance was the relatively sudden proliferation of “Sports Utility Vehicles”. What sport? I’ll concede the “utility” in some cases. You see, Chevrolet’s Carryall-Surburban debuted around 1935 and was quite the utilitarian vehicle. But the trend did not explode until some 50 years later. I have been called peculiar and told I look at things from a perspective unlike the rest of the world. If I would have lapsed into a coma as a child and emerged from it in the 90s, one of my first questions would have been “Why are all the station wagons so tall?”

But, back to the “Sheep” principle: Maybe that’s why we work so hard to convince anyone that will listen that our “old-fashioned” approach to good marketing is still valuable, viable and effective. Especially when integrated with digital mediums. Many marketers are like the driver of that second car to go to that single exit. They saw someone go that way and figured it is the only way to go. Then everyone else got in line behind them, leaving the other ways undiscovered.

We’re trying hard to show some new client another (not necessarily overwhelmingly better) way.

We’ll have to show them that way from a “higher perspective”.

KEEP DOING WHAT YOU’VE ALWAYS DONE AND YOU’LL KEEP GETTING WHAT YOU’VE ALWAYS GOT

Friday, December 19th, 2008

The grammatically unsound, yet catchy saying has been popular with African-American pastors for quite a while. They often use variations of it to motivate members to do more — more evangelizing, giving, ministry work, etc.

In over 25 years in the advertising/marketing/communications business, I have never seen a time when the warning entailed in the aforementioned catchphrase was so applicable to businesses and their marketing strategies.

These are indeed challenging times for so many companies. One would think that savvy marketers would be more receptive to some different ideas and strategies for thriving and survival. Maybe they would consider an extra “ace in the hole” for the battle ahead.

Not so, in the case of our company. My recent experiences (which are subjective and personal) show that even struggling companies are content to continue doing what they have always done. Even if what they’re getting is disappointing.

Please bear with me as I tell our story.

I run a little advertising agency that once did big work for some gigantic clients. Admittedly, we’re now struggling mightily. We believe that changes in our country’s international trade culture (namely foreign sourcing) are the underlying cause for our challenges. We had been successful in business for nearly a dozen years, when our customer base eroded. We’re seeking to “carve a new niche’” in other fields.

Our services are straightforward, economical and proven to be effective. Although we embrace and utilize technology, we’re an old-fashioned, hard-working, “brick-and-mortar” print agency. We’re no fly-by-night “cyber” operation or “virtual” agency. Our clients and associates from the past are ready to testify about our impeccable track record, enthusiastic work ethic and reputation for efficiency.

For the past three years we have directly contacted several hundred companies to openly pitch our wares. We have spent tens of thousands of marketing dollars on trade-publication ads. We developed an innovative and well-received (if not fruitful) direct-contact, incremental marketing campaign. We have done hundreds of mailouts with requisite follow-up phone calls. We have used the web, trade shows, press releases and other tools to build our brand.

All this effort has produced no significant advertising work, to date.

ONE MAN’S EXPERIENCE

Don’t get me wrong. This little discourse isn’t as much a rambling diatribe garnished with sour grapes as one man’s personal observation of the current business climate. We surely expected significant challenges in convincing prospective new clients to at least consider us. But some of our encounters with contacts have been marked by inexplicable hostility, vitriol, arrogance and even deceit.

Whether by business-hours calls, email (with advance notice, via phone), mail, delivery services, after-hours voicemails or office visits, all our correspondence was proper business-to-business communication. But the response was sometimes surprising. We identified our target contacts as Top Executive Decision Makers or TEDs.

I can understand those who did not even find the time to respond to our appeals. I guess if we have become so busy, we have to constantly hold phone conversations while driving, we certainly don’t have a few moments to chat with an “unsolicited vendor”. The responses that baffled me were from the TEDs that treated us like we were telemarketers calling them at home…at dinner time! They seemed to resent our having the unmitigated gall to even call on them. Their responses can be kind of mean spirited and amazingly personal. One TED seemed to take great pleasure in telling me “I wasn’t impressed by your stuff.” After further discussion, I realized he hadn’t even opened our package. I asked him about a distinctive element of the pitch and he had no idea of what I spoke. Why was he so quick to dismiss us?

A TED in the hospitality industry took our call as an affront to her in-house staff. Even after attempting to explain our “add-on-service” business model, she became increasingly surly. It was like I somehow implied that her “crack” staff wasn’t doing a good job. I certainly did nothing of the sort. I wonder why she was so touchy?

I’ve observed another interesting phenomenon. Some other contacts have taken a bit of time to talk with us. But they used nearly all of that time to dissuade and discourage us. Why?

I get many leads from reading trade publications. I recently saw an article in a Home Furnishings trade magazine. The article included an interview with the marketing TED of a major manufacturer. She mentioned seeking additional marketing tools (our “niche”) and outside agencies. “What a great fit!” I thought. In the past, we had done some super-successful print inserts that included her company’s products. I called for TED and was forwarded to her assistant. I quickly and cordially let the assistant know why I was calling. Although, I didn’t initially mention it, I had the trade article before me. I began a point-by-point illustration of how our services could boost her company’s bottom line. The assistant shot each point down like they were clay pigeons and she was the world’s best skeet shooter. With formidable force, she told me that they don’t do any of that stuff and if they did, their world-class in-house staff and big ‘ol agency of record would handle it. She said our chances of getting any work out of them were slim to none. Then she said something like “Just make that NONE!” As I began to slink away, with my tail securely tucked, I “turned” to make one last, feeble attempt to salvage any hope to be found. I softly mentioned that my call was prompted by the quotes in her boss’s interview. My proclamation was greeted by some deep sighs of frustration (while she valiantly fought the urge to hang up on me) as she begrudgingly suggested I send some info. She just had to qualify that suggestion with the fact that it too will be an exercise in futility.

I realize that part of her duty as a good assistant might include screening TED’s vendor calls. But is such thorough flogging part of the job description?

I find a quantum of solace in our struggles. Our services must be relevant and viable. For, at least a couple of prospects have proven so by ripping off our ideas. Unfortunately, the nature of our business requires us to produce comps or spec work. A few companies have expressed interest in our concepts and challenged us to show them how it’s done. I know the big agencies have legal contracts to help prevent unscrupulous companies from pirating their intellectual property during the brainstorming process. But, although we have dealt with gigantic companies, we pride ourselves in having the integrity to abide by the old-fashioned handshake agreement. We begin prospect relationships with a confidentiality agreement to assure our clients we value discretion with their information.

A couple of big companies found our Vertically Integrated Funded (VIF) Magalog concept intriguing. One retailer picked our collective brain for insight and went on to produce a bastardized in-house version of our Magalog concept. Their failure to implement some of the key elements likely resulted in the piece being a colossal flop.

A couple of years ago, a TED at a large Automotive-products manufacturer asked us to produce a comp of a VIF Magalog with their brands. During the development, I had regular conversations with TED. Once we submitted the work, I never heard back from him. I left voicemail messages, tried to have him paged and spoke with whoever would answer a phone for two months. There was no response. I understand TED is still with that company and in the same position. I wonder why I haven’t heard from him?

One of the most disheartening incidents involved a big resort out West. We had paid for costly annual stays there for ten years straight. We receive their direct-marketing mailers throughout the year. Before our eleventh annual stay, we pitched a comprehensive package to their TED, the Director or Marketing. We had hundreds of hours into comps for TED. The spec work included an innovative idea for their key-card holders, a magnificent digitally printed custom postcard/sweepstakes promotion with Personalized URLs (PURLs) and an occupancy-driving version of our print partner’s 6PAC mailer. After submission of the material, our TED at the resort went incommunicado also. On this year’s stay, our twelfth, I was greeted with an obvious altered version of our key-card holder idea. Later in the year, we received the closest thing they could produce to the patented 6PAC mailer.

I can imagine how this happened. The Marketing Director did let us know that she would review the concepts with her staff. I can imagine the conversation went something like “Yeah boss, that’s a great idea. But why send that money to Texas. We can change that up a little, design it in-house and have our friends at the local printer run ‘em.”

It was nonetheless a sickening experience. But maybe it’s all just a sign of the times and an indication of the current business climate.

LYING ON A NAIL

Another relevant tale I heard at my local church involved a fellow member, Willie. He visited a friend down in the Louisiana bayou. The friend’s home had one of those big, wood-slat porches. Willie says that he talked with the guy for hours out on the porch. He noticed that, during this entire time, his pal’s old hound dog was lying in a single spot, making a constant, low groaning sound. As the afternoon heat intensified, the pal invited Willie in the house to continue the visit. After a while, as he was leaving, Willie noticed the dog again. He was still in the same spot, still groaning. Willie asked his buddy, “Hey man, what’s wrong with your dog?” The friend said “That old dog’s lying on a nail.” “Why doesn’t he move off the nail?” Willie asked. The owner’s answer was “It doesn’t hurt him enough to get up and move, so I guess he just lays there and whines.”

Maybe that’s what we’re facing, too. Many businesses are willing to lie on the nail and groan about their situation. Our low-cost opportunity for them to rise up and move may fall on deaf ears. Maybe they’re just not hurting enough?

WE KNEW THE ROW WAS TOUGH WHEN WE CHOSE TO HOE IT

Now, I see the news and regularly read business publications. I understand that many marketing decision makers are often overworked, understaffed for assistance and overwhelmed by cold calls from wannabe vendors. Not too very long ago, I was one of them. In my last position as the Advertising Manager for a gigantic manufacturer, I sometime fielded up to 225 business-related phone calls, daily. Somehow, my name and work phone number ended up on contact lists for the print industry. My voicemail box seemed to always be filled with calls. Our 3-person department (with two or three outside creative contractors) produced over 300 jobs and nearly half a billion printed advertising pieces annually. Despite a tremendous workload, I made a point to return all phone calls by week’s end. This process usually took only a couple of hours a week. I did it after hours, when necessary. I never treated even the most persistent callers with disrespect, disdain or shortness. If our operations were not compatible with their company and programs, I politely told them so. I would usually invite them to send info about their services. The material wasn’t deposited in “File 13”, but actually placed in our “Vendor Info” file that was purged every five years or so.

Maybe what I deemed as simple, common courtesy could be labeled “Old School” inefficiency and an obsolete concept in today’s business climate. But I’m glad I applied yet another principal gleaned from the traditional African-American church. My late pastor used to say, “Be careful of whom you step over on your way up the ladder. You’re likely to see the same folks on the way down.”

Many of those same cold-calling vendors later provided significant work and solid leads after our staff at the now-defunct manufacturer formed our current company.

THE THING THAT WOULD NOT GO AWAY

True story: We call this the tale of “The Thing That Would Not Go Away”. At the manufacturing company, there was a time when we produced hundreds of millions of pieces of only a particular type of printed material. One afternoon, a gangly vendor rep. from upstate showed up. After somehow weaseling his way past the company receptionist and our department secretary he ended up in the advertising department. I invited him for some brief “face time”. He worked hard to convince me that his company’s mainstay product was an ideal and economical fit for us. After hearing his “pitch” for another kind of printed material, I informed him that we were not currently doing that stuff. I told him we could consider it for future programs and thanked him for his time. He asked had I had lunch? I hadn’t and he offered to buy. I was pretty busy and told the persistent Yankee that I wouldn’t be available until after quitting time. He offered to wait…there in my office! I called his “bluff” and sarcastically told him he could sit there and watch me work quietly for the next two or three hours. Then, we could maybe grab a quick bite and discuss his product. This guy actually sat in a not-so-comfortable office chair across from my desk for hours. He silently jotted down notes, while I busily worked the phones and computer. More than once, my boss called me out of my office and pointedly told me to “get rid of that greasy sales guy, now!”

I didn’t and the boss was later glad about it.

Months later, after much research, I added The Yankee’s services. I didn’t seek to replace our current vendor, but just chose to try something else too. Our purchasing executives were extremely put off when I invited The Yankee, along with the executives from our other print vendor to a simultaneous meeting. The purchasing VP told me, in no uncertain terms, that my plan simply was “not the way things were done”. But I ran the program and insisted on the meeting. I wanted to forego the standard purchasing procedure of pitting vendors against each other, for the lowest possible price. I had a new vision for the program and doing what we always did was not acceptable. The new vision worked! The added program complemented our existing operations. It was a tremendous boon to the company. It made and saved the manufacturer millions.

Some twelve years or so later, the persistent, “greasy sales guy” is my business partner and a great friend. He is largely responsible for our success and millions more in revenue. The manufacturer no longer exists, a victim of bankruptcy liquidation. The company for which The Yankee worked during our first encounter has since met the same fate. They’re long gone. (Incidentally, so is the other good print vendor).

The Yankee or Mike, is now at a great, solid, 100+-year-old company. We’re all still together and finding work where we can. We’re still applying those same “Old School” principles — common business courtesy, honesty, efficiency, hard work and loyalty. I still believe we can help good companies grow business.

Now, all we have to do is find at least one good client who expects that kind of service.