A Letter from a Friend…
I share with you a letter I received yesterday from my good friend and client, Louis Michelson, president of Michelson Jewelers in Paducah, KY:
Bruce,
I’ve been learning this business for 46 years plus, and often believe I started yesterday!!! I had considered myself, at one time a advertising ‘maven’, who didn’t need a ‘big city’ agency or industry ‘experts’, as I had ‘been there and done that’!!! I could do it all myself and save all kinds of $!!!! Well, this past year, after being most frustrated and ‘burned out’ of being the ‘maven’ …I met you. I think it was your confidence, but not arrogance, and a history of being in these retail ‘trenches’ that allowed me to accept you almost at once and place my trust for my families and valued associates future with you. After all I had been the biggest advertising jeweler in all media, other than radio, for the past 35plus years in our market. I even had experience in metropolitan markets like Nashville and I knew what worked!!!!I kept reading Bridal, Bridal, Bridal, IF you want to survive and did understand T.V. was not the media for them! Well as they say “the rest is history”!!! I committed to 80% radio with Freshley Media for bridal and gold for the last 6 months of 11’, with a budget less than actually spent in 10’. Our actual % of sales # was 4.97%, down from 8.05 %. The numbers are in and our gold sales were up 185%, and we thought we were doing well prior to these last 6 months!!! We’ve seen a dramatic increase in bridal dollars generated with a 40% increase and a like increase in average sale, with only a 3 point hit on margin still ending .49%. Our total diamond jewelry business sales also increased 19%, which was a big concern as we always did a ‘nice’ business in total diamonds. In conclusion we had a great year, as these numbers exclude 2 large transactions , which had big bridal included. I THANK YOU, my family THANKS YOU, and all my associates and their families THANK YOU!! You also helped to greatly reduce the stress in my life as I no longer have to deal with all that a ‘X Maven’ use to deal with!!!
I look forward to many, many more years together,
Louis
Here was my response:
Louis,
That is the most wonderful letter any client has ever sent me! Numbers don’t lie. You more than any client I have worked for have a critical understanding on the balance sheet and its true impact. What your are now discovering is that advertising is almost counter intuitive. The constant advertising overstimulation we all receive makes us numb to it’s real strategy… even it’s source. In short, finding what works is almost impossible when you are in the forest surrounded by all the trees!
Here are my advertising rules:
1. Conventional wisdom is always wrong.
Stop listening to advertising sales people and so called experts. Most importantly NEVER listen to employees when they give advertising advice. That’s like asking your 3 year old what they want to eat for lunch! Neither a 3 year old or a jewelry sales associate can see beyond themselves. The truth is most of us can’t. insane
2. Broadly based advertising campaigns can’t work.
Spreading your budget across multiple mediums is guaranteed to fail in today’sadvertising world. You’re gone, lost…you don’t even exist! Your only chance in all the noise is to stand on a mountaintop and SCREAM!!!!! I call this Media Massing. Pick one medium and own it. Go big or go home!
3. Frequency Rules!
Advertising is nothing more than brain washing. You’r not going to wash anything with a short cycle. Ever do laundry? The more cycles, the more times, the cleaner it gets. Until you start getting phone calls from listeners complaining about your commercials…they are not working!
4. Your image is meaningless without real sales growth.
Most jewelers are legends in their own minds, emperors with no cloths. They obsess over what they think others think, while their kingdom goes to hell. All that matters is your ability to move and dominate your market. What matters is your market share. Pride and cowardice has killed more jewelers than the tough economy ever did. It’s an excuse, not a business model. Quit tilting windmills and start selling fine jewelry! This is business, not church.
5. Business is everyday, so why isn’t your advertising?
You work everyday. You expect your employees to work everyday. You expect service from your vendors everyday and yes…you expect customers to come in your store everyday. Why is it that most jewelers don’t advertise everyday? Please don’t say you don’t have the money. If you advertised all year long you would have the money!
Folks, as you can see from Louis’ letter, he gets it. He’s done more marketing in his lifetime than almost any of us. He did not need my sermon. But maybe you do….