The National : THE NATIONAL Jan - Feb 2015
8 THE AUSTRALIAN NATIONAL DRYCLEANER & LAUNDERER JANUARY FEBRUARY 2015 My good friend Darcy Moen, from Saskatchewan, Canada, wrote: Hi Shirley, I kinda had a major brain dump on Spencer on the Fabricare Forum this morning. It was an interesting thread, and I was wondering if perhaps you might want to publish this in your magazine? I have checked and he is fine with publishing as is. Darcy So of course, I am delighted to publish this entertaining and very thought provoking exchange between two leading drycleaners. Not sure about Spencer, but I know Darcy and Lisa Moen will be in Atlanta for CleanShow, and I look forward to hearing more from him. On 17/09/2014 9:26 AM, Spencer Nix firstname.lastname@example.org [fabricare] wrote: What does it take to get you to respond to product advertising? I’m asking this question because of our recent free cleaning give away. After doing the give away and seeing the results I begin to think about what it would take to get me to act. I’d be the first to say thanks but no thanks to a free give-away. I mean it would have to be something really earth shaking to make me react, so what about you? How do people get you to respond to an offer from their business? Does the offer have a better result depending on a certain income bracket or status? If everyone participates this could be an interesting thread with lots to learn for all of us. Spencer Darcy’s Reply: Aw Spencer, you always pose these great questions when I have so much work to do. I'll take a little break and reply. First off Spencer, don't let YOUR personal opinions get in the way. You are very self disciplined, and the majority of people in this world are not. If people were self disciplined, we'd all have fat bank accounts from saving and investing responsibly and skinny waists, proper blood sugars and better health from eating right, exercising, and looking after ourselves. Let's take a look at a recent example that has been in the news: Apple's launch of the new Iphone 6. Apple spent 100 million USdollars launching its new Iphone. As if the eagerly anticipated release wasn't enticing enough to convince their customers to buy a new model to replace the one that many cellphone users already had (selling to their own hard core customers instead of trying to convince people who use other brands or don't have a cell phone at all to buy one), Apple paid the band U2 to attend the launch. And again, having U2 appear wasn't enough, U2 released their first album in five years on Apple's Itunes platform, and GAVE AWAY the entire album download FOR FREE to a HALF A BILLION Itunes users. What was the end result? Well, my wife is a huge U2 fan. She was rather thrilled to receive the free album download, even if she had to work for an hour to figure out how to get it downloaded to her Ipod (would have been cheaper and faster to just buy it if was available that way). Me, I was just 'Meh!'. Bono's droning on and on about what the world should be doing and how the band thinks this is their most personal album they've made yet ... I was thinking, “shut up and sing already!” A week later, and there is backlash. Apple users are not too thrilled that they have this free album downloading onto their devices. Turns out, not everyone is a U2 fan! Not everyone likes having certain music shoved onto their personal devices, paying for bandwidth, being given music they don't want, even if it is free. Apple is now spending money through their Genius Bars having Apple Geniuses help customers REMOVE the free album from their devices. So, what did 100 million dollars and U2 free album get Apple other than some trouble? Well, 2 million Iphones were sold within 48 hours. At $649.00 per Iphone, that's $1,298,000,000 in sales. I dunno what Apple's costs are to make the phone, but I think they made a little profit even after their marketing expenses added in. Certainly, they sold some phones to customers who already HAD an Iphone. In my opinion, a sale is a sale, so its not a bad thing to have a customer you already have make a repeat purchase. And, there are certainly a few folks who never had a cell phone buy a new Iphone, which increases Apple's market share (and revenues). And, a few folks may have converted from a competitor's product, which again increases Apples revenues and market share. Plus, Apple may have picked up or reactivated some Itune users as well. So, what has all this Apple stuff got to do with a dry cleaning customer? Lots. There are certain factors that lead up to a customer switching cleaners. Sometimes its: • the location of your store • the convenience of using your service • the price of your service • the price of using your competitor's service Question: What does it take to get you to respond to product advertising?
THE NATIONAL Jan - Jul 2014
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