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The Budget Tip of the Day
Wednesday, February 20, 2008
Today's Tip: Understand Marketing Schemes
Imagine that you are a high ranking sales executive for a blue chip company. Go with me
here, I do have a point. Imagine that you've been working at this firm for 20 years, and
you have worked your way up from office assistant to the coveted title that you hold now.
Chief Sales Officer. You have the high rise office that overlooks Times Square. Overall
life is good.
Now today is no different than the third Wednesday of any month: you have your monthly
staff meeting. You have to find out how you can sell more supply and make the company
more money. So you enter a Board room with 10 high ranking officials of the company,
and one new kid who is fresh out of graduate school. You know, the one that you and the
co-workers tease and play practical jokes on to get a rise out of him.
So your meeting is no different than any other when your boss asks the same old question:
"How can we make more money." The same answers go around the table like they always
do, except Johnny New Graduate chips in his five cents:
I'll remove you from our Board room right now. When you hear a suggestion like that,
what does that make you think of? Do you laugh in its ridicule? Move from the sales
office to the consumer side of the equation. If Johnny New Graduate is at your door telling
you that you'll only get your milk twice a month instead of four times, but you'll pay the
same price, how would you respond? You'd probably throw him right out on the lawn,
wouldn't you!
Well, today's world is ever-changing, and I'm here to tell you that Johnny New Graduate
might be the most brilliant marketer yet. With an idea like his above, he will have probably
taken your job as Chief Sales Officer because of how much money it was able to make his
company. As a matter of fact, almost every company has subscribed to his new
philosophy, and they are using it to their advantage everyday. Here is an example I
encountered at the grocery store today.
I am a fool for Fudge Stripe cookies. I always have been. I always will be. As part of my
ever-increasing awareness of my personal health, I am now in the habit of reading labels on
the product to see how many calories and what fat content are in each serving. Hey, I
want to live a long and fruitful life!
Anyway, these cookies have 150 calories per every three cookies consumed. Not too bad.
It's a good snack and fills the crave. But since I am trying to be a fat-conscious consumer,
I want to be able to enjoy them a little more frequently. Well, right next to the regular box
of cookies is a 100 calorie pack of the exact same cookies, only a little smaller in size.
Instead of eating 3 cookies for 150 calories, there are about 9 baby cookies for 100
calories. It all sounds so magically good until you read the unit price right under the label:
Box of Cookies (regular): 14.44 cents per ounce
100 Calorie Cookie Box: 44.02 cents per ounce
Can you believe for about 6 months I fell for the typical trap that most Americans are falling
for every day?? Of all people, I would think that I would be cognizant of such a marketing
tactic! Keebler, by subscribing to this strategy above, was able to sell me two-thirds less of
cookies for a higher price! And it's been a higher price that I've been paying for 6 months
now!
Perhaps you are aware of this strategy already, but I hope this article can help you realize
that companies are constantly trying to find out how they can sell you less product and
make more money. Have you ever seen those baby-Coke cans in the store (the 8-ounce
ones)? Precisely the same idea.
My advice? Always check the unit price when shopping and make sure you are getting the
best value for your money. If you don't need the "bulk" size, don't buy it. But when you
see astronomical differences such as the one in this example, think twice about your
purchase. And if you do have trouble with those calories, don't forget about the magic of
the Ziploc bag. You can apportion your own size so that you can stay on track with your
dietary needs!
Have you downloaded the free budget yet? Our free budget spreadsheet is updated for
2008 and features a monthly account tracker and budget form!
Imagine that you are a high ranking sales executive for a blue chip company. Go with me
here, I do have a point. Imagine that you've been working at this firm for 20 years, and
you have worked your way up from office assistant to the coveted title that you hold now.
Chief Sales Officer. You have the high rise office that overlooks Times Square. Overall
life is good.
Now today is no different than the third Wednesday of any month: you have your monthly
staff meeting. You have to find out how you can sell more supply and make the company
more money. So you enter a Board room with 10 high ranking officials of the company,
and one new kid who is fresh out of graduate school. You know, the one that you and the
co-workers tease and play practical jokes on to get a rise out of him.
So your meeting is no different than any other when your boss asks the same old question:
"How can we make more money." The same answers go around the table like they always
do, except Johnny New Graduate chips in his five cents:
- "Let's Make More Money by Selling Less Product."
I'll remove you from our Board room right now. When you hear a suggestion like that,
what does that make you think of? Do you laugh in its ridicule? Move from the sales
office to the consumer side of the equation. If Johnny New Graduate is at your door telling
you that you'll only get your milk twice a month instead of four times, but you'll pay the
same price, how would you respond? You'd probably throw him right out on the lawn,
wouldn't you!
Well, today's world is ever-changing, and I'm here to tell you that Johnny New Graduate
might be the most brilliant marketer yet. With an idea like his above, he will have probably
taken your job as Chief Sales Officer because of how much money it was able to make his
company. As a matter of fact, almost every company has subscribed to his new
philosophy, and they are using it to their advantage everyday. Here is an example I
encountered at the grocery store today.
I am a fool for Fudge Stripe cookies. I always have been. I always will be. As part of my
ever-increasing awareness of my personal health, I am now in the habit of reading labels on
the product to see how many calories and what fat content are in each serving. Hey, I
want to live a long and fruitful life!
Anyway, these cookies have 150 calories per every three cookies consumed. Not too bad.
It's a good snack and fills the crave. But since I am trying to be a fat-conscious consumer,
I want to be able to enjoy them a little more frequently. Well, right next to the regular box
of cookies is a 100 calorie pack of the exact same cookies, only a little smaller in size.
Instead of eating 3 cookies for 150 calories, there are about 9 baby cookies for 100
calories. It all sounds so magically good until you read the unit price right under the label:
Box of Cookies (regular): 14.44 cents per ounce
100 Calorie Cookie Box: 44.02 cents per ounce
Can you believe for about 6 months I fell for the typical trap that most Americans are falling
for every day?? Of all people, I would think that I would be cognizant of such a marketing
tactic! Keebler, by subscribing to this strategy above, was able to sell me two-thirds less of
cookies for a higher price! And it's been a higher price that I've been paying for 6 months
now!
Perhaps you are aware of this strategy already, but I hope this article can help you realize
that companies are constantly trying to find out how they can sell you less product and
make more money. Have you ever seen those baby-Coke cans in the store (the 8-ounce
ones)? Precisely the same idea.
My advice? Always check the unit price when shopping and make sure you are getting the
best value for your money. If you don't need the "bulk" size, don't buy it. But when you
see astronomical differences such as the one in this example, think twice about your
purchase. And if you do have trouble with those calories, don't forget about the magic of
the Ziploc bag. You can apportion your own size so that you can stay on track with your
dietary needs!
Have you downloaded the free budget yet? Our free budget spreadsheet is updated for
2008 and features a monthly account tracker and budget form!
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