You need money to advertise, and advertising to make money. I don't know if the old adage is true. Win on Sunday, sell on Monday.
I hope all the bike companies stay afloat, and keep all their employees working, and get back to racing as soon as they can.
The following story has been around for years but sums up advertising as well as anything else I have ever read.
The Hot Dog Stand
A Man lived by the side of the road...and sold hot dogs during the Depression.
He was hard of hearing, so he had no radio. He had trouble with his eyes, so he had no newspaper. But he sold good hot dogs.
He put up a sign on the highway, telling how good they were. He stood by the side of the road and cried, "Buy a hot dog, mister!" And People bought.
He increased his meat and bun order, and he bought a bigger stove to take care of his trade. He got his son home from college to help him. But then something happened. His son said, "Father, haven't you been listening to the radio? There's a big Depression on. The international situation is terrible, and the domestic situation is even worse."
Whereupon the father thought, "Well, my son has gone to college. He listens to the radio and reads the newspaper, so he ought to know." So, the father cut down on the bun order, took down his advertising sign, and no longer bothered to stand on the highway to sell hot dogs.
His hot dog sales fell almost overnight. "You were right, son", the father said to the boy. "We are certainly in the middle of a Great Depression."
Originally Posted by riceburner
YES ! Andoneshousehold islike a business in some ways. We know now more than ever if you don't make the right choices concerning home economics.......it could go belly up one day also.
Great story above. But....I think Kawasaki has some very sophisticate ways of tracking data to utilize when making a business decission such as the one above. Ahhh......if it were only as simple as a one manhot dog or lemonade stand. Lets see.........give that old man about 500 hotdog franchises.......a couple of thousand employees prior to the depression. There are many variablesthat could be added to the equation (story). It's a good message and point depending on the business situation. Edited by: Marc Powe
I love that old tale too. It's one of optimism and not just bowing under to prevailing pessimistic thought. But yes, Kawasaki would inevitably need to pull back in some areas, like we all have. Smart economic advisers say that the worst thing one can do is wait too long to make changes iffinancial stress is imminent. Bitter pills should be swallowed as soon as one can.
Myself, I believe the economic re-shuffling is, in some ways, a good thing. We'd been floating the whole deal on rampant consumerism and cheap, easy credit for too long. Perhaps we can all learn to again appreciate some of the finer things, like family, or a good book, or just contemplating what's really important in one's life. Slow down, and enjoy the scenery for a change!
For someone whose livelihood depends on rampant consumerism that is a strange statement to make.
One might think so, yes! And without a doubt, we also rode high on the wave of easy credit and consumer-driven purchasing. But, like so many of us, I had no idea it was all leading to a crash. I was naive enough to believe that the powers-that-be had made good decisions, and that the wave of good fortune was sustainable. Surprise!Originally Posted by Maulerman
Rampant consumerism, however, may have done as much damage to my company's fortunes as it helped. As the nation was swept away on a trend of "you can own anything, it's all so cheap now, and borrowing is no longer frowned upon, but encouraged", hard dollars that may have been spent on hardcore racing bits were instead diverted elsewhere. One need look no further than the explosion of "storage units" nationwide to know that we were all purchasing so much essentially useless stuff, we didn't even have enough room to keep itin the huge houses we also could not truly afford!
As a longtime member of the performance parts world, I've seen the trends evolve. We had no problem selling equipment well before this consumerism skyrocketed, so no, I don't believe rampant consumerism is necessary to support my business. Looking back on the last 30-some years gives me time to reflect, and yes...I do nowwish for simpler times, and a society less focused on "I want it all, and I want it now". I can (and have!)flourish just as well in such a climate, and for me, quality of life means much more than just a swelling bank account. I didn't get rich doing what I love for a living, and I'm OK with that. I refuse to base my entire value set on "making money". Never have, and never will.
I sincerely believe that a more gentle, less harried society would be a very good outcome of this recession. God willing, it will be
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