Archive for March 2014

How Did it Get So High?

 

 

How does the cost get so high? We look at our products we wish to buy in the store and we wonder; how is it that this piece of crap costs this much?!?!? Well if you bought it directly from the producer you might understand the costs. It would just be the cost of the product plus a little service fee for producing the good. So what happens from the producer to the market where we shop? The producer tacks on that “service fee” for actually making the product but they sell to a wholesaler. The wholesaler then tacks on another “service fee” almost just for getting the product. Sometimes regular consumers can buy from wholesalers but typically the wholesaler will then sell to a retailer that normal consumers buy from. In order for the retailer to make a profit from this whole chain, they too have to hike up the cost just finally selling it to the final consumer. So regular consumers are paying not only for the product itself but the labor put into making it, the transportation of the product, and just the convenience of the product being in the store where we buy other products. Generally the producer does not have a high mark-up, the wholesaler has a decent sized mark-up, but the retailer is the one who marks up the  price by sometimes as high as 100%. They can do this because the normal consumer does not know how to get the product cheaper or just doesn’t care. The retailers are charging us $100 for a shiny $20 bill that they didn’t make. Bottom line, look for the sales but make sure they are really sales before you purchase.

Legal Con-Men

Salespeople. They act like your best friend and then try to take the shirt off your back and make it seem like they did you a favor. Some companies, such as car dealerships, have a flexible price policy. A flexible price policy is one that lets the salesperson start high and still make a profit as long as they are over the cost of the wholesale. These people work on commission. My first job was a sales job and I absolutely hated it. Not because of the pay because I did make $3000 my first week but cheating the customers. Selling my product for over 5 times wholesale price was just awful. being a salesperson not only take a good personality I found but also the heart to steal money from the poorly informed consumers. With a flexible price policy the salesperson could sell just at wholesale price but they wouldn’t make a dime. Many underdeveloped countries have this policy and love when Americans are around. In so many places in America the price is what it is and there is no haggle so when Americans go to other countries they don’t haggle for the product that was just sold for $2 when they are asking $20. Stand up and haggle everyone. Many car dealerships and other places of business that have this strategy desperately want your money so walk away if the price is too high and the salesperson will be in your pocket in no time.

Your’e Paying for What I’m Not Seeing

I know I’m not the only one who doesn’t watch cable anymore. I havn’t watched cable for a long time now so all of those ads tagerting young women, moms, and athletes are being completely ignored. Netflix is the only thing I watch on TV anymore and there are  no advertisements. More and more people are watching Netflix, not just because of their lack of ads but also because of their wide selection of different things to watch. Yellow pages, newspapers, junk mail,and radio you’re all mssing me too. Yellow book, if ever I need a telephone number I can just google the number in a matter of seconds. I’m not sure who you are reaching but I am almost sure that it isn’t worth your money. Newspapers, I stopped reading the newspaper when I was no longer in it. If there is something going on around me someone will tell me about it or I will see it online. Unless your ads are for hip replacement discounts, save your money. Junk mail, you go directly into the trash. I barely have time to do anything extra outside of my school and mother duties so I am certainly not wasting my 5 seconds on reading what you’ve sent; save the trees. Last but not least to you radio. I listen to you daily but there are so many different stations and the option to play my ad-free cd that I refuse to hear about another OB opeing up in my area. I am not looking for anything outside of my normal routine so you have not gotten my attention. So how do you reach me and so many other people that are expert ad ingorers? Send us a free sample in the mail. FREE=worth my time. Put your products near the ones I by routinely or your flashy paper ads. The one ad type that does unfortunaly catch my eye are the ones on-line. I cant ignore them. I can skip the ones on youtube by putting /skip in the search bar. I can attempt not to look but those flashy 50% your first order ads get me and I will wase 30 minutes looking at your site when I should be taking advantage of my son’s nap time. 

I’m the BEST

One of the most heated rivalries in advertising is between Coca-Cola and Pepsi. These two giants in the soft drink industry have been back and forth with competitive ad shots since the Pepsi Challenge launched in 1975. This long-running campaign features regular people taking part in taste tests on film and indicating a preference for Pepsi over Coke. Both brands have invested heavily over time to project images distinct from each other. Pepsi has often pushed itself as the more hip, trendy brand, while Coke has often emphasized its history and played on customer nostalgia. Pepsi and Coke are two of the biggest competitive advertisers. It isfun for consumers to see the two battle since they started so long ago. Coke started in 1886 and Pepsi started in 1898. Both companies are obviously doing well but how far to just too far when tearing down your competition. Here is a banned ad from Pepsi that I personally think just brought Pepsi down:

Poor Sport Pepsi

The Real Business of America

It has gotten away from us since all of the crime and things that could go wrong with young children alone, but lemonade stands is the kid retail world. It is retailing in its simplest form. A cute face or little misspelled sign luring in the prey. The next thing you they know they are drinking a small cup of sugar sludge that they spent five dollars on. The kid then saves all of this money and spends it on something that have been really wanting; a baby doll, video game, or something of the sorts. It takes very little persuasion for them to make that purchase but it is still retailing. Now let’s say the kid moves up in the world now that they’ve got a little jingle in their pocket and they go to a lemonade store. There are tubes all around with different kinds of lemonade. This store only sells to people with lemonade stands. Their prices are fairly cheap; a penny for a cups worth or lemonade. There are all different kinds like lemonade that is carbonated. Lemonade made from lemons from various countries. Lemonade mixed with just a little bit of other juice blends. Lemonade that is sugar-free.  Even lemonade that was lemon-free! The kid decides to buy from this wholesaler and sell their product to his customers at five dollars a cup still. The customers are more willing to pay the five dollars a cup because the quality is a lot better than what the kid was making before. It won’t be long before they make enough money to buy their own first toy car.

Piss Poor Packaging Proves Pricey

Those darn clamshell packages. People hate them. They may be very convenient and great for shipping but the problem is that consumers absolutely hate clamshell packaging. People will turn to other substitutes rather than buying the one with the packaging made in hell. I’ve learned that using a can opener can easily open the clamshell but obviously it hasn’t caught on yet.

Attractive colors and delightful pictures on packages get up reeled in for the purchase most of the time. Packaging goes a long way. Bright colors catch the buyer’s eye as they are strolling down the aisle. Pictures of a favorite character on a cereal box will have the kids insisting on the more expensive brands. Packaging is a competition among companies. We, the consumers, have no way of knowing what the good is like inside until we try it. In this case it seems we do judge the “book” by the cover it has.

Recyclable packing is a huge thing now too. Not only the things we put in the recycle bin but packages that can be used more than just after the product is taken out. I know my dad has about 100 plastic containers that once held drink mixes and now hold different nails, screws, bolts, and washers. I store all of my pictures, memorabilia, and other things neatly in old shoe boxes.

Packaging is key part of the game in today’s market. May the best color scheme/font win.

 

OOOOOOHHHH! I Want That!

To the average person they are idols, celebrities, or the famous. When you see them on TV they are “order-getters”. Its Michael Jordan making you believe that if you buy those shoes you will be just as good as him. Its Katy Perry on a Proactiv commercial making you believe that you will look just as pretty as her if you use Proactive. It’s those half-naked models in the clothing store making us feel like we will look sexy in the clothing they are wearing (or not wearing). There are so many an example of “order-getters” that it seems every company has one. What is it that makes us want to buy the things that those who are famous advertise? Maybe we feel like it will bring us closer to them. Maybe we feel like we deserve to live like they do. Maybe we just want to be as much like them as possible. Whatever it is, when a major name endorses a product we coming running. We are happy that we have something endorsed by our idol, the company is happy with all of the money coming in, and the celebrity is happy because they got a fat endorsement check from putting on a smile and saying they approve of the product. What happens when they is bad press about the celebrity though? Well the product won’t seem as shiny so sales will not be as high. The celebrity will get bad advertising credibility and all of the followers will be disappointed that their idol isn’t perfect. It is almost as if the world wants these celebrities to not be perfect, to find their flaws, just to bring them down.

 

Yes Paris, seeing your 0% fat body makes me want to run to

Carl Jr. and eat a fistful of cardiac arrest.

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