Good Morning Jason,
In a word, "VENDOR".
I understand that several companies use vendors.
. In your daily business of selling ad specialties with K&B, every order you fill is through an outside company.
Being that I have dealt with large corporations over the years, I had wondered that very same thing. I use to think, that if the proverbial cat got out of the bag, I would lose business.
But one day a client of mine revealed something to me, which validates what Don does.
From your viewpoint "Why would this executive pay $65,0000-$70,000 a year to Don, when they could do it themselves."
No this is not my viewpoint. My viewpoint is this....
A chain of 27 pizza joints has a firm grip on how to sell pizzas or they would not have 27 locations would they?
Part of selling pizzas is forming relationships, just like any other business.
What I tried to explain is , based on my own dealings with pizza joints while working at a hotel, that they all work on the relationships with the hotels.
Again, I don't think they should do it themselves, I think they should outsource the production of materials to vendors just like you suggest.
I was drawing on my personal experiences and left out the fact that every pizza joint in a 5 mile radius was always trying to get us to sell their pizzas for them.
This is why I offered Don the REAL ADVICE that I did.
Yes there were a few nudges in the statement directed at Don, but so what??
I Told Don, and everyone else for that matter, to secure the locations first.
Once you have the locations, you have the real estate that everyone wants!
Plain, simple, and REAL advice.
I even offered a link that may help secure a location for anyone that may be interested trying this thing!
Again, in a word, "Cost". If Don's program saved them one third to two thirds in corporation's expenses then $65,000-$70,000 a year is cheap from the pizza chains viewpoint.
Woody, I think that we may not be thinking on the same level here.
We both agree that the job should be produced with outside help, yet I can't understand why They should pay Don an ongoing fee for something that they can hire a Graphic designer and pay them $50 for the job and then send the job to a printer to get a professional looking display (remember I saw Dons and they look Cheap!).
I am not bashing him, just stating my opinion!
Large businesses are not in the business of doing it all themselves. They contract the work out and are always open to ideas that will save them time, money and manpower, but will make them money and build their business.
I agree 100%, however I don't see how paying anyone an ongoing fee will do any of the things you just spoke of!!!!!
They can get te job done for much less $ and will be at least equal in manpower and possibly better on time
If the increase reached or exceeded the projection then Don's program has proven itself. Now the company is ready to move forward and institute Don's program on a contractual basis.
This is where I disagree. I feel they will obviously move forward and pay a graphic deisgner, and a printer to to the jobs instead of don as it will save them even more money "once the cat is out of the bag!"
Unless Don, or anyone else for that matter, has secured the real estate!
Does this help you understand the importance of securing the REAL ESTATE prior to the pizza joint?
You bash my advice as if it is youthful and unfounded, yet the real advice is true and I stand by it!!!
And even with all this raw data, along with program knowledge and advertising locations, successful businesses trust their vendors to keep doing or improving on what they deliver.
This is one less thing they have to do, along with using their personnel to do what a vendor can do for them, faster, cheaper and more efficiently.
My vendors, the graphic designer and printer, are less expensive that Don correct?
As for the real estate end of it. The executive won't upset the balance, if he is in a prime location. The mentality of it says, "If it ain't broke, don't fix it!"
Being that Don has the "IN" with the hotel/motel, sending in someone from corporate, which doesn't have an established relationship, could cost them that prime spot in all the rooms, that is increasing their sales.
Don Doesn't have an in with all of the hotels, he claims to get the go ahead with 7 locations as he was not ready with the others. This leaves 20 markets wide open for them to impliment this minus Don!
Again Woody, another reason not to chase a pizza joint.
I stand behind my post and everything stated in it!
http://www.sowpub.com/forum/showthread.php?p=13451
Is the Real Estate not the most important thing in this deal?
If Don has the real estate secured, they kind of have to use him rather than rely upon their own contacts within don't they?
I guess you can try to do it any way that you wish Woody, however I still say that one should not put the cart before the horse in this case.
If I had a relationship with bic and offered you imprinted pens for $1.00 each with a min order of 200, yet your own relationship with K&B delivered you the same pen for $.75, who ya going to go with?
Now lets assume that I secured the "real estate" with bic and the only place you could get them was through me, where you going to order from?
See Woody, the Real Estate is what this deal is all about
I hope this makes it a little clearer for you, but more importantly, I hope we can start hearing of your projects and the progress you are making.
I tried, you closed your mind and struck me in the eye, that is o.k. though as I have 2 eyes.
Woody Quiñones
ImpactYourArea.com