Hope: Why Production Companies and Boutique's don't have to despair

Some of the newest numbers out there can be quite disturbing....Ok, lets face the facts, most of the numbers out there make us producer and agency types flinch something like an elephant that has just seen a mouse.  

$56 billion reduction in marcom expeditures for 2009... boutiques dropping every day.... studios shutting their doors..... and on and on and on.   Chances are if your still around there is hope.  In fact, if your still around in this market then you might even start looking up.  Here is why!

Both small boutiques agencies  and production companies traditionally run thin.  What I mean is ...CREATIVES AREN'T ALWAYS WONDERBAR AT THE BUSINESS SIDE OF THE BUSINESS!  Sooooo....If your still around ..... start looking up.

The bottom line is that business', at least in the sense that we now know them, still need to inform their customers of the products and services they offer.  And that means they HAVE to SPEND SOME $.  Why you ask? Because, its not a save and survive proposition!  It's a communicate or die

situation.  

The bottom line: in this vicious market, communication is vital...is required.. is 

do or die equation.

People!  This is not to say that the size of the waist is not shrinking as the belts get new holes drilled.  To the contrary.  Here in lay the opportunity.

Stay lean and mean.  A Value proposition is the saving grace in this environment.  In the past boutiques and production companies have always offered high end services/benefits as a way of gratifying those that have their hands in the kitty and decide to tip the jar in your direction. 

Now.... a marcom manager or a marketing VP is going to be more apt to buy your services if your lean.  Instead of offering quiche and caviar as a 10 am snack one of the purse string pullers might be more pleased to see their traditional dollar go a non-traditional route.....Egoless.  

At CRM Studios were I work in Dallas.  That has always been our methodology and we are starting to see it pay off.  We still do the stardard musts.... on budget, on time, and impressive. But we take it one step further.  We deliver on ANY BUDGET.  We check our EGO's at the door.  

Can we boast multi-million dollar budget capability?  Yes!  Can we boast about huge clients? Yes!  Do we? ....Only in the sense that we can provide that same know how on a mac and cheese budget.  Humbly.

From this prospective we realize that a lot of the communications budgets are going to go inside the corporation instead of outside.  These entities are going to start spending marketing money on making their (remaining) sales staff better at what they do.  That means the small boutiques and the production companies are gonna have be able to stomach the oh soooo non-sexy simple stuff.  But here's the deal.  There is a ton of it.  

And the philosophy pays off in the end, when you've made a client feel and KNOW they are getting the absolute "biggest bang  for their buck". 

Now, that cliche has been over used in the past and has almost become meaningless.  It can't simply be a mantra that you chant in hopes that the business god's will deliver unto you untold wealth and happiness. It's meaning simply has to be understood in a different way.  

Before, "Bang for the Buck" meant high client coddling.  Expensive dinners, unbelievable hotels, limos, spending days on a very COOL effect that everyone knew was going to end up on the floor anyway, it meant the whole nine, all the way, no holds barred.  That was "Bang for the Buck".  What does it mean now?  How do you deliver it?

Value can't be something you talk about and then leave on the table with the signed contract. Value means communication.  Value means listening to your client and over delivering on expectation.  Value means putting the money into the project, not into the bottle of port.  In the end value is putting bang into any budget, it means focusing on the goal not the flash.  Stop talking a big game and start delivering on the project.

When a client comes to you with a $40k project instead of a $400k project.  What's your reaction?  Disappointment?  Relief? .....They are both wrong.  The idea is business as usual.  No sexy... just adept, creative execution, on any budget.  And when you've done that.... who will reap the benefits of the newly funded bank accounts when that money starts to flow again? And flow again it will.  As sure as the summers sun money will become abundant again.  The question is who will be the milk?  "GOT VALUE?"

As the companies go more ROI insane, get paralyzation by analyzation, and get more web 2.0 savvy, we few surviving small guys just might have a boot up on the guys that have been beating their chests for the last 8 years.  Massive overhead is a bitch! 

The time is right... some of us are lean and mean and the bullies aren't thinking the mud puddles look so fun anymore.  Not when they feel more likely to be the ones that end up with mud on their face!

Stay lean and mean.

The Car Lease: A Study in A.D.D -- Part I

Attention Deficit Disorder! I've seen it too many times in my career and the fault placement is a mixed bag. Blame goes to the myriad of dealers and their salesmen who are only looking to pad their pockets. Blame also goes to the ill informed salesmen that persuade a consumer not to lease because it’s too complicated for the salesperson to understand. And finally, some of the blame should rest on the shoulders of the consumer. The buyers, all too many times, put leasing off because they think they are getting sold a bill of goods and close their ears.

That's A.D.D!

What most consumers and, to be completely honest, what most salespeople don't understand is that leasing is the correct venue for the purchase (use) of a vehicle for a great majority of consumers.

The problem is most consumers and as well as poorly trained salespeople cannot get beyond past prejudices and ill placed fears of what they deem to be a process too complicated to understand for the non-Harvard grad. And so Attention Deficit Disorder rears its ugly head. The consumers ears go closed and those eyes go glossy. The salesperson that has seen this reaction all too often doesn't want to blow the sale, so he downplays leasing and moves on, in order to perserve a sale.

That's A.D.D.

Leasing is a simple thing to understand. That is not to say that the calculations that go into leasing are not, at best, arduous to understand. But the simple fact remains; leasing is a very basic concept and, based on the manner in which American's like to acquire cars, probably the best device for purchase (use) for most consumers.

There are some basic factors that will help the average Joe decide if leasing is the right move.

First and most important is this question: How long do you normally keep your cars?

3 or 4 years - Generally speaking leasing should be considered.
6 years or longer - Then leasing is not for you.

How many miles do you drive?

The main reason for bringing this question up is because the common belief out there is that if you drive high miles, 20 to 30 thousand miles a year, then leasing is not for you. WRONG! This is exactly the time you should be leasing. In fact if you’re driving over 25 thousand miles a year and you’re not leasing, you are probably nuts.

If you’re driving 15 thousand miles a year or less then either leasing or purchasing may suit your needs.

And finally if you’re leasing a car for longer than 48 months or to keep your payments down or if the salesman is pushing lease to make the car fit into your budget you’re leasing for the wrong reason. Period. These situations are what give leasing a bad name. Why?

Because we are A.D.D. What happens is Average Joe can't afford the monthly payment on the car he wants and ends up leasing it to make it fit the budget. All he is worried about is that his payment is that magical $450 a month. Then as sure as the summer sun when the salesperson talks about 10 thousand miles a year or $500 drop off fee or a 60 month lease, average Joe’s mind is at the beach in his new convertible.

Average Joe: "yeah, uh huh. Yeah. I get it. But my payment is $450 right?"
Salesperson: "Yes sir!"
Average Joe: "Great. I'll take it-- wrap that beauty up."

Then inevitably average Joe gets fed up with his nice shiny new car after only 32 months (the average trade cycle of the car consumer in the U.S.) and he goes to trade it in. He still owes a sickening amount of money on the car and then he reaps the rewards of his A.D.D a convertible filled with beach sand.

Average Joe: "WHAT! HOW MUCH DO I OWE? *&%&$& *)((#%%!!!! That salesman at the last dealership really screwed me! JEZZZ! Leasing is a scam, it's B.S. I'll never do that again"
New Sales guy: **Not wanting to disagree and blow the sale** "Yeah, he really took advantage of you. But the good news is we have great rebates right....." and on and on and on. Right into the jaws of another bad decision!

Leasing gets a bad name. Why? Because a salesman doesn't want to blow a sale and a consumer didn't pay attention when he made the leasing decision. A.D.D. Alone is responsible for the slow death of the lease in America. And the sad thing out of all of this is that leasing is likely the best way to acquire a car for most Americans.

In Part 2 of the leasing discussion, I will go over how to understand a lease and if it is or is not good for you personally

If you need more in depth help with your purchase decision you can contact me on Rogomo.com contact me, The Car Guy. I will be happy to walk you through the entire process or write me at thecarexpert@charter.net

See ya next week!

Marco

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