In this new episode of The RevolutionFI Podcast, Tim and Jim Kukral discuss David Ogilvy and becoming unskippable.
“So, the question is this: How can 50+ folks like us, honest and hard-working, how do we manage our current responsibilities and still plan for retirement? 401ks alone won’t be enough and we don’t have 40 years to save, so how do we leverage our experience and wisdom to gain financial independence? That is the question, and this podcast will give you the answers. My name is Tim, and welcome to the Revolution. The RevolutionFI podcast.”
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Happy Saturday morning to you! Hopefully you’re relaxing, maybe slept in a little bit, or maybe you’re out taking a nice Saturday morning stroll.
Welcome back to the RevolutionFI Podcast and hey, if you’ve been listening and you’re out walking and you feel like you want to say something or you got a comment, or you want to have your voice heard, head on over to revolutionfi.com and leave a comment there. I would love to start interacting with listeners on the comments, so I got my brand new WordPress site all set up. Head on over there and check it out.
Jim, are you awake this morning? Did you make it in? Your alarm clock go off?
Squirrels and Deer
I am awake. I am having a dispute with the squirrels in my yard. They no longer like the peanuts in the corn feed that I put out for them. They’re on strike or something and I don’t know, I guess I’m gonna have to go find new stuff, but you know, they’re ungrateful I think.
Ah, the Saturday mornings of suburbia. Crazy, isn’t it?
Yeah. Well, the deer will be up soon to eat the rest of what the squirrels don’t eat. This is what I’ve succumbed to as a 50 year old man living in the suburbs, worried about squirrels and deer in my yard.
Simple pleasures. I’m excited today because I usually reserved the weekend episodes for what I call Weekend Reflections. These are pontifications, thoughts, perspectives that are not necessarily related to anything specific. Although, I do have some specifics this weekend since you’re joining me, and I think you are probably the perfect person for today’s episode. I came across a quote by David Ogilvy, sort of a marketing mastermind from days of yore, and this was the quote I read of his. He said, “It’s not the whiskey they choose, it’s the image.” I immediately thought of you, Jim, because I thought, huh, I wonder if David is talking about being unskippable? What do you think?
Well, yes. Yeah, his point is very rudimentary basic. I’ll give an example just to prove his point. When you go to shop for wine, if you’re not a wine person, you know why people buy wine? They buy the label because it looks like what they’re trying to perceive, portray, right? If you’re going to a dinner party, and you go to the wine section at the store, you look for the fanciest label because you want it to look like an expensive bottle of wine.
When you drop it off, you bring it to your friend’s house. When you’re going to just get wine for yourself, you look for the fun label, the label that you like. People don’t choose stuff usually based upon more than the image and the brand, and that’s why attention getting, marketing and creating unskippable types of content most of the time went out.
No, you’re absolutely right. One of the misconceptions I’ve had for a long time, and I think I’m now starting to realize that I’m wrong is I used to believe people made purchasing decisions rationally. That could not be further from the truth. How do people make these purchasing decisions?
Well, it’s different in different contexts. Services, products, social proof is probably, in my opinion, the biggest reason people make purchasing decisions. Social proof is other people, reviews–other people deciding that something is worth it before you decide. You’re not going to buy anything on Amazon without at least looking at the reviews right? Certainly not an expensive television or something like that. Even small stuff, too, like people are turning the reviews even for small items.
Social proof is a huge reason why people buy, but the other reason that people buy, and this is a trend for the modern age, is convenience and ease. Warby Parker. I don’t know if you ever heard of Warby Parker, you look for eyeglasses, they ship five of them to you, you try them out at home, if you like the one you keep it, and you ship the rest back.
Well guess what? The company that they disrupted was a company called Luxottica who owned like 80% of the entire eyeglass market in the world. We’re talking like $80 billion or something, and Warby Parker, five guys, college buddies, disrupted that entire industry by creating a product that just changed the model and shipped the glasses to your house, you pick them out. They completely disrupted an entire industry. We can go through a million examples of this. Netflix over Blockbuster, you know, on and on and on and on.
Buying Based on Convenience
People buy based on convenience. People don’t want to be bothered anymore. Why are Payless shoe stores going out of business? People don’t want to go to the store any longer. They don’t, it’s easier to just have stuff delivered to them. Why during the pandemic, has stock of Amazon, Homegoods, Home Depot, and Lowe’s and everything gone through the roof? It’s because people want to stay home.
They don’t want to leave their houses, and now they have an excuse. Now they’re just like, this is great, just bring it to me. This economy and how we buy things has completely changed with this pandemic even more. I wrote this book before the pandemic, and it just made it even more of an example of how we were doing it. People want convenience. They’re willing to pay more for the convenience of getting what they want on demand.
Yeah, and if I may be so bold as to interpret your book, I think you’re also saying that you really want to have a business or a brand instead of just a product because that’s what it means to be unskippable. You have an identifiable brand, people know what it means it’s not just one transaction. It’s a relationship you’re trying to have with the people you want to serve.
Well, belief-driven buyers are part of it. A belief driven buyer is a person who chooses to do business with another business because they share the same common core beliefs. By the way, that’s two thirds of every buyer in the world right now. Two thirds of your customers right now will go out of their way to do business with you or not do business with you because of some type of shared common belief. That can be political, it could be religious, but it also could just be stuff like the environment, right?
Patagonia, one of the biggest companies in the world on clothing, has really gone completely in one direction and said, we’re gonna be here to help save the planet. Their people have really jumped on board with that, and their profits have risen. There’s a million examples. That doesn’t mean that you need to go out and be all political, but that of course that can work. That doesn’t mean you need to go out and be all religious on one side, but of course, that can work. Although, it doesn’t mean you have to take a hard line issue on something very disruptive. It doesn’t mean that you have to stand for something because people are demanding that you do.
Remember, Tim, we grew up in the 80s. If you had those Izod shirts like you were cool if you had the little alligator, but if you showed up at school and it was like a generic alligator Izod shirt, like my parents got me because I couldn’t afford the fancy one. Right, so they took me to Burlington Coat Factory and got me a knockoff shirt and then everyone’s like, look at him.
It was the exact same shirt except for the alligator, right?
Well, yes, but here’s the thing that’s changed now. Brand segmentation doesn’t mean what it used to. You have companies like Gucci and Mercedes, everything the logo used to mean, they’re depressed now. People don’t want to be these big, huge brands anymore. I can prove that by going to Costco because Costco has got their own brand, Kirkland, which is, by the way, a billions and billions of dollars brand. You could go to Aldi now and buy groceries, and it used to be looked down upon if you showed up with the byproduct version of the Honey Nut Cheerios that are called something else. They’re not Cheerios. People used to go there, buy the cheap stuff, the generic stuff. That’s not where we are anymore.
People don’t care about that stuff anymore. The products just as good. They don’t care that it doesn’t have the big logo and stuff on it. Our mindsets have shifted, and we’re no longer consumed by “we have to have these huge brands”. Some people still are, of course, but in a general sense. I’m talking about trillions and trillions of dollars with groceries and cars and consumer products. People are no longer interested and feel like they have to show off these brands to show that they’re successful anymore. That is a mindset shift, so I guess my point is being unskippable does no longer have to be about you being this big giant brand anymore because being unskippable is really about making a profit and helping people and being successful.
Love it. If you’re interested, there’s gonna be a link in the show notes. You can grab Unskippable and give it a good read if you want to know more about it. Alright, so that’ll do it for Saturday. I guess you guys can go do your chores. You can go rake some leaves, maybe do some laundry and we’ll see you back tomorrow morning. We have another Weekend Reflection. We’re gonna be talking about what’s happening to all that office space now that the pandemic is here or not. So, make sure you come back, and we’ll see you tomorrow.
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