The Sexy Business Killers

“Big things have small beginnings”

Prometheus

In 1991 McDonald’s was under a lot of pressure.

Revenues of the fast food chain were down. Way down.

Where once they enjoyed growth rates of of 10%-20% during the 70’s & 80’s…

…they were now seeing growth rates of only 1%.

The stock market wasn’t happy (greedy little buggers) and McDonalds could feel shareholders breathing down their neck.

Then one day a Coca-Cola rep came in and made a suggestion.

He suggested that McDonald’s bundle a hamburger and fries with – you guessed it – a coke.

At first McDonald’s resisted the idea but since they couldn’t think of another way to boost revenues, they decided to give it a try.

So they combined a Big Mac, a large fry and a medium Coke – and called it an “Extra Value Meal”.

The combination came with a steep 20% discount and McDonald’s hoped to make it up in volume.

End result?

Three years later the extra value meals was responsible for almost 50% of McDonald’s Revenue.

By 1997 the “Extra Value Meal” was their most successful item in the past 10 years resulting in a revenue jump of 11%.

And what happened to coke with their somewhat self-serving idea to McDonald’s?

One year after introducing the “Extra Value Meal”, Coke announced record profits.

All because of a simple suggestion of combining a coke with a burger and fries.

It was a small move the created a big gain.

What happened to McDonald’s is not unusual.

To make big profits does not mean you have to make big changes.

Quite the contrary.

You only need to make a small change to realize a big result.

The only problem is those small things just are not sexy enough to get attention.

They tend to be more like dull, boring, unpolished objects (but objects that make 10 times more money!).

Example.

I once had a customer call me a while back to tell all about this great TV advertising deal he could get.

Really sexy, ego stroking stuff.

Awesome deal too.

He asked my advice.

I said to him, “I have one question. Let’s say you luck out and create a killer commercial that gets people to call. What then? How are you going to convert those people who call you for a price into customers?”

The response I got back? Crickets.

Here’s the thing.

We all know that customers tend call three or more places to get a quote on their rug cleaning.

Even if they saw your commercial (or print ad, radio commercial, etc). All your commercial did was remind about their dirty rug and motivate them to get it cleaned. Then they get on the internet and look for companies to call to get a price (along with yours – maybe).

Now if you don’t have a simple system to convert most of those calls into customers…

…all you’ve done is paid for advertising that sent them to your competitor who can close better than you.

Getting a commercial on TV is sexy bright shiny bright object that will suck money out of your pocket.

Knowing how to convert a phone shopper on the phone is a dull boring object that stuff you bank account to the gills with profits.

Small move. Big gain.

A small move that I like to call “The Red Print” which I teach you how to do here:

http://imaruglover.com/college

Stephen “Dusty” Roberts

P.S. The great thing about the Red Print? Once you implement it in you company you’re going to wish your competitors would advertise more in traditional media. Their ads will get your phone to ring and the Red Print will guarantee you’ll land most of those people your competitor inadvertently paid to call you.