Business models [sorry, no pictures>
“We must get our costs down in order to compete, and must focus on the products our customers want and are willing to pay for,” chairman and chief executive Donald J. Carty said. [on YAHOO – originally picked up from Pud’s site>
I think that’s a blindingly obvious statement. Folks in corporate communications get paid to write this type of press release? Running a small business, close to the bone, I **have** to keep an eye on costs. Even something as simple as managing the network access in the office, such as it is, to the point of fruitlessly arguing with the cable company about something like the price of the cable modem access. The salesman told me $39.95/month. In fact, I dug out their work order. Right there, handwritten in by the “sales associate”. But the bill came in at $44.95. $5/month, that’s $60/year. Yes, I got screwed, and the ‘customer care’ line is useless. It’s still cheaper and much faster than Bell’s DSL, which I used before that cable salesman **lied** to me. But the product, //i.e.//, net access, is cheaper and better than the alternative, which is DSL through any of a number of providers.
RunTex has a cute truck set up on the hike and bike trail, I’ve been passing it almost daily these days. Since RunTex is a \\runner’s store\\, I have no intention whatsoever of shopping there. Still, I’m willing to drink their branded beverages [Powerade by the taste and the stickers on the coolers, Gatorade by the disposable cups>, and I’ve gotten quite used to have this free service available. Almost to the point of depending on it. If I stop at a convenience store, that beverage would cost me a buck or more.
If their truck wasn’t there, I’d drink from the water fountain. If the truck wasn’t there, I might not loop back toward First Street, too. Or do the east side, like I did Wednesday afternoon. But it’s a runner’s store, and I’m a walker, and I have no intention of buying any fancy running shoes, or those little running shorts with no pockets. But I’ll sure as can be stop and avail myself of their free beverages. I’m sure they have some kind of co-branding, co-marketing thing set up with the leaders of the sports beverage industry [read the ingredients, it’s still just sugar and water>.
Retail is a form of purgatory, one thin slice above the food service industry, in my mind. “Bless their souls who serve us.” And tip big – they deserve it for putting up with seemingly obnoxious attitude, “What’s your birthday?” I think Dante left that out, but it should be added to his \\Inferno\\.
I’ve commented before, and I’ll reiterate that thought, the RunTex truck is excellent advertising. It isn’t going to sell me anything, but it will get mentioned in the scopes, and that sort of publicity can’t be bought. Their stores have products that customers are willing to pay for. At a price that customers are willing to pay. It’s been years since I was in there with a girlfriend, shopping for shoes. I think the least expensive pair she bought was around $100. After sweatshop labor and Austin’s expensive real estate overhead, I wonder what the store’s real margin was.
Let’s say I wandered into one of the RunTex stores, one of the first items out of my mouth would be about their water truck, and how cool it was. But if I just wander in and don’t buy anything? What’s the point? Remember, according to American Airlines, “…must focus on the products our customers want and are willing to pay for…”
So I still haven’t resolved my issue with the cable company, but the service is good enough that I’ll probably stick with them. Better throughput. Cheaper. They have the competitive advantage – even if the salesman lied, and the help desk wasn’t helpful at all.
The horoscopes are free. Questions are free. Delivering answers via e-mail? Or in person? Remember, I still have a trailer in South Austin that needs its rent money.
