Fri 11 Jul 2008
About 20 years ago, I had a small consulting practice, helping very-small businesses migrate from typewriters and manual accounting systems, to automated ordering, billing, and accounting systems. Within a year or so, I turned my few customers over to my brother, Ken, who was much better equipped to service them. Ken was also substantially more knowledgeable in the area. To Ken’s credit, he continued to service these accounts for years, even though he was geographically challenged with a separation of about 350 miles.
My first client has offices little more than a block from where my sons now attend summer camp. So this morning, after dropping them off, I stopped by to see my former client. He’s no longer using the systems we developed for him. But they were good for more than 10 years. So that’s not bad. I met his in-house IT guy, the guy that replaced my brother and our systems. The new guy says he also takes out the garbage and cleans the offices on Fridays, something we never did.
“Business is good,” the owner said, but competition is fierce. His exclusive distribution agreement for silicon sheeting, used in sheet metal bending to reduce blemishes, is no longer exclusive, and his line of teflon-coated fabrics is highly commoditized. Still, he innovates, with new applications for teflon-coated fabric and finds new customers. Either he or his brother, I didn’t ask which, is driving a BMW, so business can’t be too bad. Either that, or one of them is over-extended on debt.
I asked him, if he was using the internet to market more broadly and find new customers. He said “No.” Instead, he uses tradeshows and print advertising. “The internet is too easy to search, so as soon as I come up with a new product idea, if I use the internet, all of my competitors copy it. And if, I put up my pricing, they all beat it. Even if I password protect the site, someone will give out the password. So I just mail ads out.” I’m curious what my internet-marketing-guru brother has to say about that.
Ken?
July 11th, 2008 at 12:29 pm
John-
Funny you should mention the comments about print and online advertising….
We are continuously having an internal debate with our internal marketing gurus about print and online advertising.
The marketing gurus tell us about click through
rates and number of hits.
The customers and clients tell me that they now delete e-mails from us (they receive so many), but they do read magazines and the letters nad print pieces we send them.
My guess is that receiving a piece of e-mail or advertising online cannot be the only marketing strategy and that print marketing should be making a comeback.
Steve