Gotta Be A Good Thing, Then

Whenever the Left goes all Hair On Fire, that generally means good things are happening.  Take this little bit of news, for example:

After it was announced Monday that local businessman and Sinclair Broadcasting Group executive Chairman David Smith had rescued The Sun with plans to revitalize it to a robust status, the left is apoplectic.

Why? Sinclair, the local news behemoth Smith runs, has been accused for years of tilting right. Based on the hissy fits pitched by the AP, the Baltimore Banner (an online site started after the Alden purchase), CNN, The New York Times, and The Washington Post, it seems like journalists would rather the paper die all together than be run by someone who’s not a leftist.

Well, duh;  if the Left can’t control something, they try to destroy it (see:  Donald Trump).

And if, Lenin forbid, that change may tend towards conservatism, the screaming will ratchet up exponentially.

And so it happened in this case.

CNN reacted the way you’d expect. Oliver Darcy, their deranged liberal media hall monitor, whined in his media newsletter that it’s a “deal that has set off alarm bells” since Smith’s local stations around the country “has previously inserted right-wing editorial segments into its local news broadcasts.”

Writing on Threads and X, NPR media writer and former Sun reporter David Folkenflik huffed that Smith was dismissive of the Sun’s journalism and “deflected questions about his own political activities.”

He also seethed that Smith has been a major funder of GOP candidates; more recently he has funded far-right outfits like Project Veritas and Turning Point USA & financed local ballot initiatives.

Folkenflik made sure to take a swipe at Sinclair stations: “Sinclair…has pulled the news coverage and commentaries on those stations markedly to the right, ultimately becoming quite supportive of Trump.”

Oh noes… I see the End Of Democracy all over this one.  That, or the End Of Civilization As We Know It.

Who knows?  The Sun  may even turn out to be a decent newspaper.

Carnies and Hucksters

Longtime Reader GT3ted sent me an email of the latest Sotheby’s auction catalog — the topic of this coming Saturday’s post, by the way — and when I commented that the prices seemed unusually-astronomical, even by Sotheby’s standards, he replied:

Yes, I thought the suggested bid ranges were high as well, But remember these are the the typical auction company’s “Projected” bid ranges which are often optimistic. And Sotheby’s does seem to have a better-than-usual lineup this year. The whole point of the catalog is to bring in as many Big Dollar buyers as possible since they need multiple buyers to run up the prices. Or at least the appearance of multiple bidders.

The Winter Arizona / Scottsdale Hype is strong thanks to “Bidenomics” / a soaring stock market and nervous investors looking for a place to park some equity before the possible collapse of the more traditional equities market place.

The world of high-end auctions is still just smoke and mirrors run by used car salesmen and ex-carnies all looking for the next greater fool, just at a much higher level.

It’s a very cogent statement.  But even among them what has more money than common sense, this (for example) seems egregiously overpriced:

Now let it be known that I loves me some 70s-era Bronco, but I would humbly suggest that even a handbuilt-from-the-ground-up item such as this isn’t worth anything like two hundred big ones.

It’s not an original — it’s a Kincer creation — and there’s another outfit that handmakes “classic” Toyota FJ45s, at similar nosebleed prices, and still another that does likewise with 1970s-era Mercedes G-wagens.  While I understand that hand-built cars involve an astonishing amount of labor — in some cases, hundreds of hours — I would suggest that it’s a fool’s gambit to try to recoup (and even profit from) the job.  As any amateur restorer will tell you, one never recoups the cost of restoration, and I just can’t see that restoring old cars as a production enterprise makes it worth the work and expense…

…unless, of course, the target market is not the brand’s loyal devotees but (as Ted puts it) Big-Dollar Buyers (“whales”, as the casino industry derisively calls them), for whom the car is not an object of desire but an investment.

And all investments, as any fule kno, carry risk.

Caveat emptor imprudens.

All that said, there are some juicy cars indeed in the Sotheby’s catalogue, but you’ll have to wait until Saturday to see them.  Just ignore the prices, and drool.

Turning Tide?

Via Reader Mike L (thankee, squire), comes this little snippet that may just be the signal of something or other:

Hertz, which has made a big push into electric vehicles in recent years, has decided it’s time to cut back. The company will sell off a third of its electric fleet, totaling roughly 20,000 vehicles, and use the money they bring to purchase more gasoline powered vehicles.

Electric vehicles have been hurting Hertz’s financials, executives have said, because, despite costing less to maintain, they have higher damage-repair costs and, also, higher depreciation.

“[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle,” Hertz CEO Stephen Scherr said in a recent analyst call.

And EV price declines in the new car market have pushed down the resale value of Hertz’s used EV rental cars.

I lost count how many whammies are contained in the above, but it’s making parts of me tingle, and in a good way.   Okay, let me count the ways:

Higher damage-repair costs, higher depreciation and lower resale value.

Any one of those Bad Things would make me (as Hertz) want to cut back on the Duracells.  All together?  Short-Circuit City.

Ol’ Elon’s not gonna be happy, because if Hertz sneezes, the entire rental business gets diarrhea.

And common sense pokes its head above the parapet.

The Snare Of Convenience

Once upon a time, I worked for a Great Big Research Company — no name necessary, but let’s just call them A.C. Nielsen, because it’s easier to type “Nielsen” instead of “Great Big Research Company” — and the department I worked for was called “Trade Relations”.

A little background is necessary here, before I continue.  Most people, when seeing the name, think of the Nielsen Ratings as pertaining to TV.  In fact, that division of the company was only responsible for about 20% of corporate revenue, when I worked there.  The vast majority of revenue came from providing market-related information to the manufacturers of consumer packaged goods (CPG) manufacturers like Proctor & Gamble, Kraft Foods, Unilever, Heinz Foods, S.C. Johnson, Pepsi-Cola and so on.  (Nielsen actually coined the term “market share” when Arthur Nielsen founded the company back in the early 1920s.)

Basically, the concept was simple:  how much product was being purchased by consumers at any given time?  One would think that manufacturers would have had a good idea of this, based on their own shipping data, but they didn’t, for all sorts of reasons.  For one thing, retail outlets like Kroger or Safeway would buy a lot more cases of product than they actually needed at the time and warehouse it, both to make their own resupply of their stores more efficient and to lock in prices in case of future increases (known as “forward buying”).

In fact, most manufacturers had no clue how actual consumer sales were faring for their products.  What Nielsen did was approach the retail chains and get access to their sales data (either through outright purchase or by auditing a representative sample of stores), assembling the data into huge databases and then creating monthly or bi-monthly reports which the CPG manufacturers would purchase.  So when the manufacturers approached the retailers and talked about pricing and delivery, both sides of the table would be talking about the same data and negotiations would be comparatively cordial, in theory anyway.

Obviously, for such a system to work for Nielsen, there had to be a good relationship with the supermarket chains, hence the existence of the “Trade Relations” department.  What we did, therefore, was collect the data and, in the form of account executives like myself, relay market-level data back to the chains’ executives.  Because while the chain would know how much they had sold of a product to consumers, they had no idea of what their competitors had sold of the same, and therefore had no idea of their own market share.

In many cases, Nielsen was able to leverage the value of that retailer’s information against the cost of the data, which is where people like myself were critical:  the quality of the reporting was of great value to the retailers’ marketing and merchandising departments.  Several large chains admitted, privately, that their business plans would have been not only more difficult but almost impossible without the reporting supplied by Yours Truly and his compatriots.  For a free service, therefore, it was a no-brainer.

All went well until Art Nielsen Jr. (son of the company’s founder) sold out to some evil bloodsucking company of debt collectors (Dun & Bradsomething) whose accountants, after a couple of years, decided that we in Trade Services were providing such a good service to retailers that the retailers should start paying for those services — which, as we know, had hitherto been free.  The result of this little corporate reindeer game was twofold: the retailers told us to fuck off, and I resigned and went to work for a Great Big Advertising Agency instead.

I told you all that so I could tell you this.

I have often railed against this trend of “convenience”, made ineffably worse by the age of electronics and most recently, by the Internet of Things whereby activities that required even the slightest effort can now be ameliorated or eliminated by having remote access to said activities.

Chief among these, of course, are things like programmable refrigerators, remote starters for cars, and of course Satan  Amazon’s Alexa.

And as I have also said before, the very nature of these things involved giving something — or to be more specific someone — access to your appliances, vehicles and lifestyle.  While I joked about some asshole kid in the basement of his mother’s house in Schenectady being able to hack into your network’s system and turn on your stove to get your house to burn down, I can see now that making a joke of the situation — in hoc reductio ad absurdam, so to speak — was not helpful.

What is more malevolent is that someone actually inside your personal network — i.e. the provider of a service — can start to affect your life, and in ways that are not always to your advantage.

The specific case in point is this trend of auto manufacturers (step forward BMW, you bloodless Kraut assholes) to take electronic conveniences included in your car and start to levy a fee to continue the features’ usage.  Your reversing camera — a great safety feature, by the way — would suddenly become inoperable unless you paid a “nominal” (say, $19.99) monthly fee to BMW.

In other words (and this goes back to my experience in the supermarket business), what you used to get for free as part of your purchase would suddenly involve a cost.

Now we could all probably live with unheated seats, for example, or having to use a key to start the car’s engine instead of starting your car with an electronic fob (also, by the way, easily hacked by thieves).  But the thought of having to pay some monthly pound of flesh to Big Auto for features that were supposedly included in the (already bloated) purchase price of your car should make one want to resist such a change.

 

The legality of such manufacturers’ initiatives is discussed by Internet lawyer Steve Lehto — the link sent to me by Longtime Reader Mike L., thank you Mike, and which gave rise to this whole rant.  And yes of course one can discuss legalities all day, except that the minute one does, one has to involve both lawyers and politicians (considerable overlap), all to deal with a situation that should fall under the concept of “doing the right thing”, but which in modern times seems to have gone bye-bye like so much else, and particularly in the case of Global MegaCorp Inc. and their fucking accountants (who, make no mistake, are the driving force behind this bullshit just as the Dun & Bradstreet accountants were behind the initiative which drove me from A.C. Nielsen).

What’s worse is that I don’t know if this wave of bloodsucking bastardy can even be slowed, let alone halted or reversed.  Certainly, if one is going to purchase a car from Global CarMaking Inc., resistance will be futile because they hold all the cards (and especially the politicians) in their sweaty little accountants’ hands, and the increase in corporate profitability will be cheered to the rafters by their shareholders — who, lest we forget, are largely composed of other big companies like retirement funds and such, as well as politicians (don’t get me started).

And “the market” is unlikely to come to our assistance either.

Oh sure, one could always buy an ancient vehicle which does not hold all the electronic doodads which make this corporate fuckery possible, or else a “stripped down” vehicle like, say, a Caterham which is bare-bones driving incarnate:

…until, of course, the Gummint passes legislation which outlaws the ownership of older cars or trucks (because of “environmental” concerns) or of stripped-down cars (because they don’t contain sufficient “safety” features).

And if you think that Congress wouldn’t dare to pass such legislation, you obviously haven’t been paying attention because that’s precisely what they’ve been doing for the past half-century.

Of course, this isn’t just confined to the U.S.A.;  it’s already a going concern in Europe and the U.K. (ULEZ, anyone?).  So the steamroller is well on its way, and you’re the one staked out in its path.

Have a nice day.

Me, I think I’ll go to the range.

Marketing Morons

We’re all familiar with companies that screw up their brands — Bud Lite coff coff — and I often wonder how they stay in business.

Chief among these offenders are companies which change their logo, a change which may not only cause customer confusion at the moment, but which can screw up future brand recognition as well.

One shining example of when it’s a good idea to change one’s logo is that of Federal Express, abbreviating that (unnecessarily-long) name to simply “FedEx” — and it made sense because ta-da!  that’s what their customers had been calling them for years anyway.  (And adding colors to differentiate the various services:  genius.)


And to be honest, FedEx hasn’t made that many mistakes anyway, over their relatively-short corporate history.

That makes sense.  But this one doesn’t.

WH Smith has left shoppers baffled after dropping ‘Smith’ from its signs in a trial rebrand. The High Street retailer has shortened the signs to simply state ‘WHS’ in a move that has confused customers.

The sign now consists of the three letters ‘WHS’ in a white font on a blue background, dropping the surname of William Henry Smith, who turned his father’s business into a nationwide concern.

I should point out that the stationery company has been known as WH Smith since 1846.  (It was originally founded by WH’s father in 1792.)  This is not a heritage to be messed with.  The change is massive;  it goes from this:


…which everybody knows, even internationally, to this:


…wherein the sign would idiotically incorporate the name of the town, as though customers would be unaware of where they are.

All that said, however, there may be some hope:

A spokesperson for WH Smith said the new signs were designed in mind to raise awareness of the range of products sold by the company.

He added that there were currently no plans to roll the new design out to further stores.

What fucking bullshit.  How does shortening the company name increase awareness of the product range?  More to the point, who was the moron who came up with this idea?

Here’s the thing.  “WH Smith” is inextricably linked with things like books, stationery, newspapers and such.  Yes, they sell other stuff such as toys and games — but mostly it’s paper and paper-related products, and it’s what they’ve been known for since the nineteenth century.

What are they going to do to their product range that would make so fundamental a change necessary?  Expand into tools and hardware?  Clothing and perfumes?  Garden furniture?

You see, that’s the problem right there.  It’s because WH Smith is so linked with paper and publications that it might be difficult to tell customers that “Oh no, we don’t just sell newspapers, we also sell motor cars and cookware!”

One ironclad marketing rule is that you never mess with your core brand’s identity — New Coke, anyone? — but if you want to expand your product offering, you do it under a new brand.  It’s why Procter & Gamble doesn’t sell Pampers tampons, even though Pampers and Always are part of the same corporate entity, and often manufactured under the same roof.  Most consumers, by the way, are blissfully unaware that the two products are made by the same corporation, nor should they or anyone else care, because it’s irrelevant.

So if WH Smith wanted to branch out and extend their product offering — and there’s nothing wrong with that, necessarily — they would need to separate the non-stationery items under a new brand, and preferably in a new location altogether.  Frying pans ain’t magazines, Bubba, and they require a different approach altogether.

FFS:  this is Marketing 101 stuff, and I feel like I’m explaining the need for personal hygiene to kindergartners.  I’m sure there are all sorts of Smart Young Things at the Swindon headquarters of WH Smith — pardon me, WHS — who would love to bend my ear about The Need For Change, and Not Letting Your Brand Become A Dinosaur and every other marketing trope (I nearly said “tripe”, which would have been equally appropriate).

I would have thought that said Bright Young Things might have learned from the debacle of New Coke — yeah, I know, but that was such a Long Time Ago and Times Have Changed, Old Man — but it pains me to think that they couldn’t even learn from the very recent debacle of Bud Lite, whose dolorous ripples are still being felt even as I write this.

The problem, you see, is that Marketing always has to stay relevant.  That’s what is taught, and it’s regarded as gospel — when in fact it really isn’t.  The core principle of marketing — Never Fuck With Your Brand — is about as unyielding, and as timeless, as the principles contained in The Gods Of The Copybook Headings.

Then again, the latter are also regarded as old-fashioned nonsense nowadays, so perhaps this whole “WHS” nonsense is unsurprising.

I just hope that this “WHS rebrand experiment” remains just that, and is tossed into the trashcan quickly.

Many A True Word

…spoken in jest, as the saying goes.  Here’s the jest:

…and here are the true words.

Back when I was a business consultant, I belonged to a share group of same-industry consultants who would meet twice a year at some pleasure spot (#BusinessDeduction) to swap stories, pass on potential leads and so on.

I was moaning about a recent catastrophe which had befallen me (details unimportant, but “fuckwit client” will suffice), when everyone at the table laughed, and one of the guys said:

“Never take on a gig when the client CEO has a Harvard MBA.”

And it’s true.  Not only are these ivory-tower assholes devoid of any true business sense, but the Harvard MBA must be a pretty shitty course, judging by their track record in the real world that I swam around in.  (That particular company failed, spectacularly, and the CEO left the country for a while.)

The only reason I can think of for anyone to get an MBA is if their undergrad course didn’t include things like Accounting, Stat or Marketing.