Tag: brand
You are not running a business. You are copying a grandma's hobby of making pies.
Like any grandma, she had the hobby of making pies and we use to receive lots and lots of pies to make her happy.
Like or not, grand kids are told to always thank grandma for the pie and tell her how wonderful is the pie, how they can not resist the last pie which was the best. It ends up of having more pies, although they never liked the pies till today.
Grandma is a very senior, (and I hate to say old) with very limited mobility and very bad or no eyesight will challenge her ability to make more pies and send them to her grand kids as she believes she makes them happier.
I was invited to an introduction to a new product with the business owner and I was told that is better for my health and my life. I was given a bottle to try and I just curious. I was told that it is a new product that is better than anything else for my health. I was intrigued and as I start to ask simple questions to find a reason to try the sample.
I found a very strong resistance to answer simple questions. I was framed as a consultant or to be in the business of helping others. I was told to not impose my service. I am not consult and I am not in the business find other businesses to offer them service. I think they should simply search my name on google “Wael Badawy” and they will know who I and what I am not doing.
The product was introduced as a mix of some ingredient that I know and others that I do not know and I may not heard about it. – It triggers a flag to me because I am not in a position to eat or drink what I do not know in the absence of a strong motive. I am also framed that there are fruits and vegetable that I should be taken but I do not them, I am not sure what I am missing !!!
I predict that the consumer of these products are the type of individuals who are using organic products because they like to know everything about their food and they do not like the chemical that they do not know and may impact their health. I saw the second flag, because I was judged again.
I want to say that “organic” is good to justify its high price, but “organic” or natural ingredient that I do not know is better, is not true. Pure marijuana or marijuana’ s leaves are danger plant and even though we need to know more details to understand its medicinal effect. If I consume it, I will be addicted and I may end up in Jail because I am using an organic natural plant !!!
Then the presentation went to explain that principle of consume the whole fruit/vegetable as a juice, against extracts. In mind, it is questionable with many diverse arguments. As a matter of fact, having a full lime as a juice will change its flavour and texture with time because of oxidation, and it can turn to be poisoning or has higher toxic. I can not consume the orange or the banana as a whole, I have to peal it first !!! – Anyway, I will pass on this argument because I am not the expert but I know when i eat.
Then I started to ask questions to better understand who is the owner, what is the business value and what is the quality of the product in order to give me a level of confidence to try the product.
I asked about the size of the business, to feel comfort that there are others trust and use this product. I was looking to understand their WHY, or what are the reasons to buy this over priced product.
I asked about the growth plan in the next three or five years. I asked about the vision of the owner to simple get a confirmation and make sense of the quality of the product and there is someone stands behind it. All what I received is “3 and 5 years are very long time”. In the absence of an answer, it demonstrates that there is no continuity no guarantee to a quality control or that the same product at different time will have the same ingredient and taste the same.
I asked about the value of the product is to try to find my WHY, to tryout the sample. The articulated value is “You drink good natural stuff, so your body will perform better”. I asked, does it help with a diet plan, or release weight, or having high energy, etc. The value was articulated well, you eat better ingredient, you be healthier and you feel good. First of all, I do not eat pizza and burger all days and I eat apple and banana every day. “One apple a day, keeps the doctor away!!!” The articulated value is very general and I can have a strong blinder and I use organic mix of fruits and vegetables. AND, WOW, the mix will have similar value. The answers continues to be “the ingredients used are planted by the owner in business owner garden!!!”
I asked about the science or the research behind this drink. The answer that the business owner has researched each one of these ingredient. The business owner has two degrees (none related to food, or health or technology or medicine) and everyone is impressed of these two degrees with no relation to the business. Moreover, the business owner has no passion to either degree and do not work in these areas and offers this product to serve and help others.
The product looks very professional with an expiry date of two days!!! The product comes in a quantity of 1, 4 and 8. I also noted that the bottle has an expiry date within two days. I do not know the reason that of the expiry date given that there is no research or science behind the product. I wondered If someone want to order a pack of eight bottles, will he/her use them all in two days. what about the logistics of producing, distributing and consuming, a product that has to be kept cold (I assume) within two days. It mean that a very limited number of customers with limited quantity orders, within a very small geographical area. So the production, distribution and consumption in two days !!!.
This is not a business, this is a grandma hobby to make pies, it is:
1- The pies are initially FREE till she as for a favour in return, which will be fairly pricy.
2- The ingredient is from grandma apply tree in the back yard – Oh, by the way, it is natural and very organic because grandma is not in heath conditions to take care of the tree or even fertilize the tree.
3- Grandma believes she makes her grand kids happier by offering more pie and she consumes her effort, while the grandkids do not prefer to eat the pies, or do not eat them at all.
4- Grandma pies have to be eaten hot, and within one or two days.
5- No one knows grandma secret ingredient, even grandmas
6- Grandma pies differ from time to time, based on the mood and the time in the oven, grandma can not read the time.
7- Grandma serves only her family and friends which has a very limited consumer base.
The whole time, I was simply looking for a reason to try a sample of a new product. I may feel lucky to put my hand on a free sample of this product and I was trying to find the reason for myself. BUT, I know grandma but I do not know you. So please stop copying grandma hobby to make pies and focus on building a business.
Note from the author:
This is a true story and I held the name of the product and business because I have the care and passion to every small business and entrepreneur in our community. I strongly believe that the message will help everyone in their business, So please let me know you thought below.
I also say that I owe the business owner the price of the sample because I did not feel comfort to drink it which is my fault and the sample passed the expiry date!!!
Guerilla Versus Gorilla – Small Companies Can Win
We make our living as guerillas not the bad kind, but more of a freedom fighter. By using the term ‘guerilla’ I mean EMJ (now a division of SYNNEX) fights for business against big gorillas (other distributors) in the field. Our competitors are almost 100 times our size; EMJ is a Canadian-based, $165 million per year distributor. We have made an operating profit for the past 80 consecutive quarters. So even though we are up against the big gorillas as a distributor, we must be doing something right.
If you are in a business where some of the competitors are much larger, you may be able to benefit from using guerilla tactics. The principles of running a guerrilla organization differ from running a gorilla organization. As a guerrilla, we hide from our competitor; we do not try to crush them. I even go so far as to examine what they do well and let them do it. At the same time, I look for under-serviced markets and get to these markets fast.
A gorilla takes all competitors head on, trying to crush the competition. Sometimes this takes the form of a price war. Sometimes it takes major prolonged, drawn-out investment. This works as long as you are the same size, or larger than the competition. Even then, such a long battle can sap power and ultimately profits.
Companies that die often believe they were gorillas. It is certain death for a business to fight gorillas unless they can withstand the siege. Any time we hire someone with a gorilla-company background, we watch and coach that person to make sure they are indoctrinated with the appropriate tactics. We have to make sure they understand out business model.
My 8 favourite guerilla tactics are:
1 Act fast. I use my company’s size for my advantage. I can act lightning fast. In the computer business, this is a huge asset. Things change so rapidly that moving fast and being first to market is a huge advantage. Larger companies do not react quickly. Develop a reputation for being first it gets the attention of customers.
2 Welcome smaller opportunities. Gorillas tend to say ‘no’ to manufacturers who don’t think they can do significant volume with. But a small opportunity rejected by a gorilla can be a very profitable opportunity for a guerilla. For EMJ, a million dollar per product line is an opportunity big enough to get the attention of my first string. In your business, look for the right-sized opportunity for you. Frequently, it is the smaller opportunity that has the best promise. The gorillas will leave you alone. There is always a right-sized opportunity for a company of any size. Knowing your rightful place in the market can help you to thrive.
3 Get focussed. Higher focus means we know more, stock more, and sell more product of fewer manufacturers. The smaller our product listing, the more powerful we become. We know a lot about a little. That means we know the products we sell better than a gorilla, and we become a sales tool for the reseller, not just an order-taker. Could you become more focused and specialized in a business area by giving up on a part of your business?
4 Be more flexible. We can adapt more easily to our customers and suppliers. We try not to be ruled by policy. The bigger a company gets, the more likely they are to have policy and some of it is required. As a small distributor, we can be more flexible. Are there areas that your competition is ignoring that by being more entrepreneurial, you can capitalize on?
5 Be smarter. This sounds too simple, almost embarrassing to write. Since we are smaller, we can look at the business we do more carefully and make sure it makes good business sense. We don’t pick up another manufacturer just to increase the size of our line card. That’s just not good business sense for us. That’s the way we have to think and so should you.
6 Lower your overhead. For some reason, most companies seem to choose more expensive offices and furnishings as they grow. This expectation tends to increase costs in all areas of the company that distribution, at current margin levels, can ill afford. At EMJ, we buy quality used furniture. We are on the outskirts of Guelph where the cost of land and taxes is less. Our capital base is even high enough that our cost of capital is less than some of the gorillas. Are there areas that you can be lower overhead than the gorillas in your field? Costs always add up on the bottom line.
7 Foster staff loyalty one major advantage guerillas have over gorillas is the ability to attract, motivate, and keep good people. Primarily this is because guerillas can be more flexible, easier to work for and give people more of a sense of accomplishment because what they do contributes more directly the company’s bottom line. I have always found there to be great power by being smaller and treating my people with respect and not just as numbers. Gorillas can try to do this but it is tough for them to copy you.
8 Just BE a gorilla. We like to enter market areas that we can dominate and specialize in. We may not be the biggest but in certain specific niches, we dominate. As long as we are the biggest in an area, we can act the part. We can under-price and over-service the competition forever. Anyone who enters our markets learns that it is expensive and often impossible to unseat us.
9 Be personal. One thing a smaller organization can do is to be more personal. People buy from people. You can foster relationships that will help you sell. Part of the way we are personal is by showing our customers what markets and products ARE profitable. There is nothing that cements a customer relationship better than making them money, because you’ll be making money for them AND for you!
10 Be opportunistic to sum up guerilla strategy is simply to be opportunistic. Take advantage of opportunities that the gorillas cannot do. There are many companies that remain profitable by being opportunistic.
In summary, unless you are huge think guerilla. Appropriate guerilla tactics for your size will win any battle.
More info’s and free registrations (restricted to pros), please join our live seminar
You are not running a business. You are copying a grandma's hobby of making pies.
Like any grandma, she had the hobby of making pies and we use to receive lots and lots of pies to make her happy.
Like or not, grand kids are told to always thank grandma for the pie and tell her how wonderful is the pie, how they can not resist the last pie which was the best. It ends up of having more pies, although they never liked the pies till today.
Grandma is a very senior, (and I hate to say old) with very limited mobility and very bad or no eyesight will challenge her ability to make more pies and send them to her grand kids as she believes she makes them happier.
I was invited to an introduction to a new product with the business owner and I was told that is better for my health and my life. I was given a bottle to try and I just curious. I was told that it is a new product that is better than anything else for my health. I was intrigued and as I start to ask simple questions to find a reason to try the sample.
I found a very strong resistance to answer simple questions. I was framed as a consultant or to be in the business of helping others. I was told to not impose my service. I am not consult and I am not in the business find other businesses to offer them service. I think they should simply search my name on google “Wael Badawy” and they will know who I and what I am not doing.
The product was introduced as a mix of some ingredient that I know and others that I do not know and I may not heard about it. – It triggers a flag to me because I am not in a position to eat or drink what I do not know in the absence of a strong motive. I am also framed that there are fruits and vegetable that I should be taken but I do not them, I am not sure what I am missing !!!
I predict that the consumer of these products are the type of individuals who are using organic products because they like to know everything about their food and they do not like the chemical that they do not know and may impact their health. I saw the second flag, because I was judged again.
I want to say that “organic” is good to justify its high price, but “organic” or natural ingredient that I do not know is better, is not true. Pure marijuana or marijuana’ s leaves are danger plant and even though we need to know more details to understand its medicinal effect. If I consume it, I will be addicted and I may end up in Jail because I am using an organic natural plant !!!
Then the presentation went to explain that principle of consume the whole fruit/vegetable as a juice, against extracts. In mind, it is questionable with many diverse arguments. As a matter of fact, having a full lime as a juice will change its flavour and texture with time because of oxidation, and it can turn to be poisoning or has higher toxic. I can not consume the orange or the banana as a whole, I have to peal it first !!! – Anyway, I will pass on this argument because I am not the expert but I know when i eat.
Then I started to ask questions to better understand who is the owner, what is the business value and what is the quality of the product in order to give me a level of confidence to try the product.
I asked about the size of the business, to feel comfort that there are others trust and use this product. I was looking to understand their WHY, or what are the reasons to buy this over priced product.
I asked about the growth plan in the next three or five years. I asked about the vision of the owner to simple get a confirmation and make sense of the quality of the product and there is someone stands behind it. All what I received is “3 and 5 years are very long time”. In the absence of an answer, it demonstrates that there is no continuity no guarantee to a quality control or that the same product at different time will have the same ingredient and taste the same.
I asked about the value of the product is to try to find my WHY, to tryout the sample. The articulated value is “You drink good natural stuff, so your body will perform better”. I asked, does it help with a diet plan, or release weight, or having high energy, etc. The value was articulated well, you eat better ingredient, you be healthier and you feel good. First of all, I do not eat pizza and burger all days and I eat apple and banana every day. “One apple a day, keeps the doctor away!!!” The articulated value is very general and I can have a strong blinder and I use organic mix of fruits and vegetables. AND, WOW, the mix will have similar value. The answers continues to be “the ingredients used are planted by the owner in business owner garden!!!”
I asked about the science or the research behind this drink. The answer that the business owner has researched each one of these ingredient. The business owner has two degrees (none related to food, or health or technology or medicine) and everyone is impressed of these two degrees with no relation to the business. Moreover, the business owner has no passion to either degree and do not work in these areas and offers this product to serve and help others.
The product looks very professional with an expiry date of two days!!! The product comes in a quantity of 1, 4 and 8. I also noted that the bottle has an expiry date within two days. I do not know the reason that of the expiry date given that there is no research or science behind the product. I wondered If someone want to order a pack of eight bottles, will he/her use them all in two days. what about the logistics of producing, distributing and consuming, a product that has to be kept cold (I assume) within two days. It mean that a very limited number of customers with limited quantity orders, within a very small geographical area. So the production, distribution and consumption in two days !!!.
This is not a business, this is a grandma hobby to make pies, it is:
1- The pies are initially FREE till she as for a favour in return, which will be fairly pricy.
2- The ingredient is from grandma apply tree in the back yard – Oh, by the way, it is natural and very organic because grandma is not in heath conditions to take care of the tree or even fertilize the tree.
3- Grandma believes she makes her grand kids happier by offering more pie and she consumes her effort, while the grandkids do not prefer to eat the pies, or do not eat them at all.
4- Grandma pies have to be eaten hot, and within one or two days.
5- No one knows grandma secret ingredient, even grandmas
6- Grandma pies differ from time to time, based on the mood and the time in the oven, grandma can not read the time.
7- Grandma serves only her family and friends which has a very limited consumer base.
The whole time, I was simply looking for a reason to try a sample of a new product. I may feel lucky to put my hand on a free sample of this product and I was trying to find the reason for myself. BUT, I know grandma but I do not know you. So please stop copying grandma hobby to make pies and focus on building a business.
Note from the author:
This is a true story and I held the name of the product and business because I have the care and passion to every small business and entrepreneur in our community. I strongly believe that the message will help everyone in their business, So please let me know you thought below.
I also say that I owe the business owner the price of the sample because I did not feel comfort to drink it which is my fault and the sample passed the expiry date!!!
Guerilla Versus Gorilla – Small Companies Can Win
We make our living as guerillas – not the bad kind, but more of a freedom fighter. By using the term ëguerillaí I mean EMJ (now a division of SYNNEX) fights for business against big gorillas (other distributors) in the field. Our competitors are almost 100 times our size; EMJ is a Canadian-based, $165 million per year distributor. We have made an operating profit for the past 80 consecutive quarters. So even though we are up against the big gorillas as a distributor, we must be doing something right.
If you are in a business where some of the competitors are much larger, you may be able to benefit from using guerilla tactics. The principles of running a guerrilla organization differ from running a gorilla organization. As a guerrilla, we hide from our competitor; we do not try to crush them. I even go so far as to examine what they do well and let them do it. At the same time, I look for under-serviced markets and get to these markets fast.
A gorilla takes all competitors head on, trying to crush the competition. Sometimes this takes the form of a price war. Sometimes it takes major prolonged, drawn-out investment. This works as long as you are the same size, or larger than the competition. Even then, such a long battle can sap power and ultimately profits.
Companies that die often believe they were gorillas. It is certain death for a business to fight gorillas unless they can withstand the siege. Any time we hire someone with a gorilla-company background, we watch and coach that person to make sure they are indoctrinated with the appropriate tactics. We have to make sure they understand out business model.
My 8 favourite guerilla tactics are:
1 – Act fast. I use my companyís size for my advantage. I can act lightning fast. In the computer business, this is a huge asset. Things change so rapidly that moving fast and being first to market is a huge advantage. Larger companies do not react quickly. Develop a reputation for being first – it gets the attention of customers.
2 – Welcome smaller opportunities. Gorillas tend to say ënoí to manufacturers who donít think they can do significant volume with. But a small opportunity rejected by a gorilla can be a very profitable opportunity for a guerilla. For EMJ, a million dollar per product line is an opportunity big enough to get the attention of my first string. In your business, look for the right-sized opportunity for you. Frequently, it is the smaller opportunity that has the best promise. The gorillas will leave you alone. There is always a right-sized opportunity for a company of any size. Knowing your rightful place in the market can help you to thrive.
3 – Get focussed. Higher focus means we know more, stock more, and sell more product of fewer manufacturers. The smaller our product listing, the more powerful we become. We know a lot about a little. That means we know the products we sell better than a gorilla, and we become a sales tool for the reseller, not just an order-taker. Could you become more focused and specialized in a business area by giving up on a part of your business?
4 – Be more flexible. We can adapt more easily to our customers and suppliers. We try not to be ruled by policy. The bigger a company gets, the more likely they are to have policy and some of it is required. As a small distributor, we can be more flexible. Are there areas that your competition is ignoring that by being more entrepreneurial, you can capitalize on?
5 – Be smarter. This sounds too simple, almost embarrassing to write. Since we are smaller, we can look at the business we do more carefully and make sure it makes good business sense. We donít pick up another manufacturer just to increase the size of our line card. Thatís just not good business sense for us. Thatís the way we have to think – and so should you.
6 – Lower your overhead. For some reason, most companies seem to choose more expensive offices and furnishings as they grow. This expectation tends to increase costs in all areas of the company that distribution, at current margin levels, can ill afford. At EMJ, we buy quality used furniture. We are on the outskirts of Guelph where the cost of land and taxes is less. Our capital base is even high enough that our cost of capital is less than some of the gorillas. Are there areas that you can be lower overhead than the gorillas in your field? Costs always add up on the bottom line.
7 – Foster staff loyalty – one major advantage guerillas have over gorillas is the ability to attract, motivate, and keep good people. Primarily this is because guerillas can be more flexible, easier to work for and give people more of a sense of accomplishment because what they do contributes more directly the companyís bottom line. I have always found there to be great power by being smaller and treating my people with respect and not just as numbers. Gorillas can try to do this but it is tough for them to copy you.
8 – Just BE a gorilla. We like to enter market areas that we can dominate and specialize in. We may not be the biggest but in certain specific niches, we dominate. As long as we are the biggest in an area, we can act the part. We can under-price and over-service the competition forever. Anyone who enters our markets learns that it is expensive and often impossible to unseat us.
9 – Be personal. One thing a smaller organization can do is to be more personal. People buy from people. You can foster relationships that will help you sell. Part of the way we are personal is by showing our customers what markets and products ARE profitable. There is nothing that cements a customer relationship better than making them money, because youíll be making money for them AND for you!
10 – Be opportunistic – to sum up guerilla strategy is simply to be opportunistic. Take advantage of opportunities that the gorillas cannot do. There are many companies that remain profitable by being opportunistic.
In summary, unless you are huge – think guerilla. Appropriate guerilla tactics for your size will win any battle.
More info’s and free registrations (restricted to pros), please join our live seminar