Category: Ideas

Pricing Dubiety

Posted on by Steve Sammartino

If we’re first to market how do we know a price the market will accept? There’s no precedent. 

In the early stages we get knock backs. People are change averse. They’ll often say it’s too expensive. It’s their default response to your sell in, even if it isn’t true. In these times we suffer Pricing Dubiety. The trick is to stay the course, knock on all the doors first. Sometimes we simply need a foundation customer to lead the others to a new paradigm. 

If the price does turn out to be too high, it’s the easiest thing in the mix to change. Besides, it gives us a reason to go back and see ‘the rejecters’ again if we do reduce it.

Consumer Promotions

Posted on by Steve Sammartino

Consumer promotions simply don’t work anymore, they’re old world. Bribing your audience with the allure of a car or holiday won’t build your brand, rather damage it.

 They remind me of the kid with no friends who bought companionship because they had a motorbike or pony. There is a sense of desperation.  Occasionally someone will end up liking what’s really on offer (the person / the product), but more often, once the offer disappears so does the loyalty.Motorbike

If you’re thinking of running a consumer promotion on your start up, maybe you should think about improving your business model. Reinvest the money and time into your proposition. Something is wrong.

Cold Calling

Posted on by Steve Sammartino

Cold calling is difficult.  What choice do we have when we are establishing a product in a new distribution channel? One in which we have few contacts. (note: my definition here is B2B & excludes interuption phone calls to private dwellings)

Try two phase calling. Turn up and ask for the manager or owner. You only want 5 minutes to talk about an idea with them. You simply tell them what you are doing and ask for some input. It goes something like this:

We are developing X and think it could be good for your industry or a business similar to yours, but we’re not sure. This is what we are thinking, what do you think…?

Two things often happen. Firstly they tell you what type of marketing you should be doing. Then, they may ask you to bring in your widget to show them next time. What it needs to be successful is a low status approach. Let them they own part of the idea. Collaborate with them. Don’t bring anything with you. No samples, no brochures, nothing. Just talk with them.

If they’re not interested move on. Don’t be annoying. 

This can work because you remove their defenses. They don’t have to figure out a way to reject you. Then next time you come to actually sell something to them, it’s not a cold call, it’s warm.

Problem or symptom?

Posted on by Steve Sammartino

Climate change is regarded by many as the biggest problem facing the global community.  It’s an issue that is unlikely to be resolved any time soon due to the fact the climate change isn’t the problem. It’s actually the symptom. The problem is excessive consumption.

Shopping trolley

Everything we do (consume) happens to emit greenhouse gases. Driving, eating, buying, mining and buildings all consume energy and resources being manufactured, delivered and used.  Governments and corporations are unlikely to encourage reduced consumption because apparently, growth is good.

It’s no different with early stage business development. If you’ve got an issue make sure you focus on the problem, not the symptom, or you’re unlikely to solve it.

Box Of Fruit

Posted on by Steve Sammartino

While sitting in the reception of an ad agency a delivery came to reception that had us gobsmacked.

                                    fruitbox.jpg

A box of fruit. Which sells direct for between $20-$50. Plenty of margin there. What I loved about this was the simplicity. The barriers to entry are non existent. Think of the concept today, revenue next week. Start up cost close to Zero.

Although it is easy to copy (there are now 3 of these operators in my City), it has a natural lock out device built in. There’s only room for one player in each office block. It’s a personal service where the relationship is core. Anyone can bring there own fruit to work – cheaper, so it isn’t price driven. Once you’re in, it would be very hard for another player to push you out. It also builds the things companies buy; brands & distribution.

Back to the gobsmacking… my busines partner and I swore that our next business would be as simple as a ‘box of fruit’.

Authenticity

Posted on by Steve Sammartino

 

Seems to be the word of the day in relation to startups and marketing in general. But do we really know what it is to be Authentic?

Here’s the Start Up Blog definition:

Authentic – Not being embarrassed about or having to hide, anything you do.

We shouldn’t worry about which words we use, rather how we live up to their underlying intention.