Tag Archives: Business

Business, Economy, Marketing

BBC and Top Gear: A Business Lesson Can Be Learned From This

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It’s safe to say that if you’re a Top Gear fan, you’re feeling depressed like many other car enthusiasts. With Jeremy Clarkson’s firing, James May and Richard Hammond have already made it clear that it’s all three of them doing the show or there is no Top Gear at all. The BBC and Clarkson have had an interesting history over the past few years, with the BBC threatening to fire Clarkson should another controversial story come about, and now that prophecy has come to fruition. However, is this really the end of Top Gear or just the beginning of something even better?

Top Gear rakes in $74 million for the BBC annually, and this show has become a worldwide sensation, drawing in fans from around the world. Needless to say they’re lucrative, and in business, making money is the name of the game. While the BBC might be willing to cut ties and take a gamble on possibly losing millions of weekly viewers, other TV networks are willing to take their own risk and try enticing Jeremy Clarkson and the rest of Top Gear’s crew to join their TV lineup. Who wouldn’t want to see $74 million in annual revenue? That’s why this isn’t the end of the greatest show on earth, but in terms of the name, Top Gear as a TV show might no longer exist.

TV shows that make this much money don’t just disappear. If money can be made, there’s always a way to mend fences, or build new ones with some other TV network. For Jeremy Clarkson, he’s holding all the cards. Not only has Netflix shown interest in the outspoken presenter, but Sky News and ITV are rumored to be positioning themselves to bring the entire cast and show to their network. If Clarkson decides to go in a different direction and go independent, he’s already got the connections to make it happen, and it wouldn’t shock anyone that Richard Hammond and James May would not be too far behind in joining their brother in arms.

What BBC has done is nothing short of being the worst business decision in the history of the entertainment industry. Not only are they in jeopardy of losing $74 million per year, but they gave the most powerful presenter on television the opportunity to make more money if he decides to make his own TV show, whether that be with help from Netflix, other networks, or business investors.

It’s safe to say that Top Gear is one of the most influential car shows on the planet, possibly creating millions of dollars for car companies that not only sell in Europe, but also in the United States. Having Jeremy Clarkson going his own way, he can choose to have production done in the United States where distribution, annual revenue, bigger networks, and larger audiences reside. What could be a Top Gear fan’s biggest nightmare, might just be their biggest pipe dream come true. There’s the potential for Top Gear to come back better than ever should all three presenters leave the BBC.

Jeremy Clarkson isn’t stupid, and in fact has connections in very high places to make creating his own show a reality. James May and Richard Hammond are without a doubt going to join Clarkson on his next endeavor, and for all three of them they have an opportunity to make more money than if they did under the guidance of BBC.

Bigger profits are the possibility here. Who’s to stop a guy such as Jay Leno from acquiring these three to create an epic TV show in the United States? The doors are now open for all possibilities, and we can thank the BBC.

The lesson than can be learned here is that when you have a product that’s making you money, you do whatever is in your power to make sure that you don’t lose it. Clearly the BBC doesn’t value Top Gear like so many around the world, and they’re going to regret it when Jeremy Clarkson, James May, and Richard Hammond make someone else extremely rich, and see their own fame rise higher than it was under the BBC.

Business, Economy, Marketing

Make Sure To Compare Apples to Apples When Discussing Sales

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Sales figures always appear to be written in black and white, either sales are good or bad. But when it comes to comparing two completely different markets, and trying to find a correlation between both sales figures, that’s where they become very misleading. Whether it’s in the business world or the journalists who report it, sales figures must be reviewed carefully, or the one who comes up with inaccurate findings looks like a fool. It’s important to take into consideration the markets in which your company or the company you’re writing about or reviewing, is in line with other companies or your business report will be flawed.

In the auto industry, journalists like to stir the pot a bit by posting misleading headlines that turn heads, but with further review, make the writer behind them look silly. This past February the Mitsubishi Mirage outsold the Volkswagen GTI. It seems to be a surprise considering the popularity of the GTI’s within the car enthusiast community, but base price for both cars proves to be the reason for the Mirage’s ‘improbable’ outselling of the popular hatchback.

The Mitsubishi Mirage starts at $13,000, while the Volkswagen GTI starts at $25,000. The $12,000 difference is one reason for more sales for Mitsubishi, but both these cars aren’t even in the same class. Also by doing some research of my own, the Mirage didn’t run away with overall sales as the GTI was only 84 cars behind. In one article, the writer posted a graph of which vehicles the little economical car outsold, but every other car on the list was either $12,000 – $40,000 more than the Mirage, making the sales figures not that outstanding. If a Lexus GS, with a starting price of $48,000, almost outsold a $13,000 car, that’s not good news for Mitsubishi.

Sales figures can be misleading if there isn’t further research. Also when it comes to business, you can’t compare apples to oranges, and that’s what a Mirage is to a GTI, they’re not the same or even in the same market. Because Volkswagen considered the GTI to be a different model than the Golf, sales figures are somewhat distorted since as the Golf, which is closer in price to the Mirage, sold 2,000 more cars than the Mirage.

Always do research and make sure both businesses and products are in the same market. What appeared to be a disappointing month for the GTI, was in fact on par with the previous 6 months of sales.

Blogging, Economy

You Have $15,000 In Cash, Do You Buy Or Lease A Car?

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Some of you may know that I’m the creator of BostonAutoBlog.com, and if you’ve followed me for a while you also know that marketing, social media marketing, and business are topics that I discuss quite a bit on my own personal blog. I’m going to combine both of my interests into one article, asking a financial question that I don’t want a quick answer to in return, but rather the most logical solution to a problem many consumers who are in the market for a car face everyday. If you have $15,000 in cash, do you buy or lease a car? Actually, I’m going to make it more interesting. If you have $10,000 in cash would you buy or lease a car?

Having scanned through forums and Reddit, there are many young, and even older consumers, who ask the same question, usually with the same amount of money in hand asking for car buying advice. Now, if your commute to work and weekend trips make your annual mileage higher than 12,000 a year, then buying is the better option. But what about those who are driving around 8,000 – 10,000 miles a year. Would you still be so hasty to buy instead of lease?

Most people feel that leasing costs you more in the long run. But does it really? True, your car payments could be higher per month, but because it’s a new car, you won’t have to factor in major maintenance costs. At $10,000 – $15,000, you’re not going to end up with what you want. Certified pre-owned, you’re looking at the Honda Civic, Hyundai Elantra, or Toyota Corolla to name a few. Used can be a case of trick or treat. There’s always diamonds in the rough, but more often than not, you’ll end up with someone else’s problem. Mechanical failure is likely, factoring into the overall cost of the car, while it’s aging, and every year the resale value is slowly tanking. You either wind up with a money pit, or a decent car that will last you a few years before maintenance issues could arise.

Now let’s look to leasing. You have $10,000 – $15,000 in hand and you’re visiting local dealership websites comparing lease offers and deciding which one works best for you. You stumble upon a great deal. Your local Ford dealership down the street has a lease offer for a new Ford Escape SE; $4,173 due at signing, $159 a month for 24 months. If my math is correct, for those 2 years it will cost you a grand total of $7,989, not including oil changes and annual maintenance. You’re saving $2,000 in the long run, which will be two grand more saved up for your next lease. If you buy a $10,000 car, you’re looking at a world of unknowns.

So the choice. A new Ford Escape SE or an 8 year old car with 50,000+ miles on it. $8,000 overall in 24 months, or $10,000, plus maintenance that will inevitably happen sometime during your ownership of the car.

Another example; this time you have $15,000. Now I’m sure you can find some sweetheart deal for a 6+ year old Infiniti G35 or G37 or an older BMW 3 Series, but again let’s factor in unforeseen maintenance. But you decide, “I’ll lease instead because I want to drive a new car”. Here are the potential options you have. Let me just say this is all predicated on what the dealerships in your area are offering. Here’s a few from my neck of the woods.

Audi A3: $2,694 downpayment, $299 a month for 36 months = $13,458

BMW X1: $4,000 downpayment, $239 a month for 36 months = $12,604

BMW 320i X-Drive: 4,000 downpayment, $239 a month for 36 months = $12,604 (Same offer as the X1)

Infiniti Q40: $1,499 downpayment, $229 a month for 39 months = $10,430

Lexus IS 250: $1,599 downpayment, 349 a month for 36 months = $14,163

These are just some of the deals that are out there. They all cost under $15,000 within the three year window you have the car. Most come with leather seats, heated seats, bluetooth, navigation, and electric sunroof. So think about it for a minute. You can have a luxury car for the same price, or less than if you bought a certified pre-owned Honda Civic. There are even better offers out there if you don’t want to spend $15,000.

After seeing this, would you still buy or would you lease?

Business, Economy, Marketing

Car Dealerships: Don’t Be Afraid To Use Social Media

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The name of the game is to sell cars, and what better way to do that than having an effective social media marketing strategy? Every other industry has hopped on board, and now it’s time for the auto industry to do the same. But what is really stopping dealerships across the country from branding and marketing their businesses to appeal to customers within their region? Unlike with TV ads, Facebook ads can target specific potential car buyers that live within walking and short driving distance of the dealerships that are advertising. So what’s the hold up?

First off, I’m just going to be straightforward. The social media accounts most dealerships operate are downright boring. You’re a business, not a virtual newspaper selling coupons every 3-6 months. Stop hard selling as if this is the 1950’s. One reason there is very little engagement with most dealerships’ social media pages is due to lack of trust. But more importantly, the content these accounts post aren’t worth reading or responding to. Instead of posting already used content by other dealerships that are selling the same brand, post unique content that shows off your showroom, best cars in your inventory, and interesting news or services that you provide.

Create a blog and share your content on your social media accounts. Tell possible car buyers why they should buy from you, why they should have their car serviced at your dealership, and explain the parts you use in the maintenance department to build trust and persuade car owners to come to you. Only posting when you have a sale or service special falls on deaf ears because you haven’t created good enough content that keeps people coming to your Facebook or Twitter page. They will inevitably glance or skip right over your post because 90% of your content is hard selling.

Post photos on Instagram. Herb Chambers BMW of Sudbury consistently posts pictures of BMW’s that are in their showroom. What 20, 30, or 40 year old doesn’t like a BMW M3, i8, or 435i Gran Coupe? You’re missing out by not posting on Instagram. The companies who are utilizing all social media platforms are increasing sales, but it’s their patience and determination that’s keeping them relevant because they’re posting good content that people want to see.

By being on social media, you’re in essence becoming an influencer. In studies, 27% of consumers are influenced by the cars they see on Facebook, Twitter, and Instagram. Because the pictures contain the car on the road, in the city, or in the woods, consumers can visualize themselves driving that car, or taking that same photo on their vacation. You’re giving social media users eye candy that they just might indulge in.

This doesn’t just apply to car dealerships, but businesses in every industry. You have to capture the reader’s attention by posting articles that are worth reading, post photos worth liking and sharing, and posting quality content that will show up on people’s timelines. By not using social media, you’re feeding the perception consumers have of your business or industry as a whole. You can change that by showing who you are, what products you sell (in this case cars), and why consumers should walk into your doors and not the competition down the street.

Business, Economy, Marketing

Car Dealerships: You Should Be Selling An Experience, Not Just The Car

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Even in the year of 2015, car buyers have a very negative perception of car dealerships. Go on Twitter, search the term “car dealerships” and you get many disgruntled consumers who aren’t happy about going to a dealership or spending any amount of time at one, even when they’re buying a new car. There are some tweeters who are complaining about the lack of free coffee or refreshments. At a few dealerships I’ve stopped at, I had the option of getting a bagel, coffee, and bottled water. Dealerships out there are missing out on a great opportunity to change the perceptions of car shoppers, and social media is the best way to create a positive vibe.

Mercedes Benz of Burlington, Massachusetts is about to reshape how consumers buy cars. While there are probably dozens of others in this state or across the country catering to and treating consumers like they really matter, many still haven’t caught on or marketed their upscale customer service specials. Mercedes Benz of Burlington feeds their customers with gourmet food and coffee, offers manicures, and car washes while they wait. Not only are the cars luxury and arguably best in class, but by treating their customers special, the word of mouth and the amount of referrals from happy car buyers will pay dividends in the short and long term.

If your dealership offers comforts that many potential car buyers don’t expect, you have to make that aware to them. You’re no longer just selling a car, you’re selling an experience. Jordan’s Furniture in Wakefield and Patriot Place in Foxboro were the beginning of a new trend, and they were far ahead of the curve. Bob Kraft doesn’t just own the Patriots, he owns an empire that is attracting fans, even during the offseason. Jordan’s Furniture draws customers despite the fact that some have no intention of buying furniture on that particular day. Mercedes Benz of Burlington, because of their special services and the treatment of their customers, will attract customers who probably were loyal BMW and Audi owners. This is the direction in which the industry is heading in.

You might ask, “How do we make potential car buyers aware of our high quality customer service?” The answer is simple. Use social media to your advantage. That’s where all your customers are, and by being friendly and acting human, you will change the perception car buyers have of car dealerships. That’s the biggest problem in the auto industry, lack of trust. You have to build that trust by posting quality and valuable content that makes customers engage on your social media pages. Show the friendly and comfortable environment your dealership offers. Post photos of your inventory and showroom. Give people visual appetizers so they’re comfortable when they walk into your doors.

Mercedes Benz of Burlington has got the right idea, and they’re executing to perfection when it comes to social media. They’re using all the major platforms and posting native content showing their best cars. You have to do the same or the dealership down the street who’s got a strong social media presence will steal your business. It’s 2015, it’s time to start marketing like it.

Business, Economy, Marketing

Social Media: You’re Personal Branding Every Minute Of Everyday

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What if I told you that at this very minute your personal brand and future career is being shaped? That every tweet, every status, every Instagram photo, and Snapchat picture you post today has an effect on how others perceive you tomorrow. I’m not just talking about your peers, but also employers, bosses, CEO’s, innovators, and big-time influencers. Your tweets are reaching someone, no matter how informative or silly they are, someone is reading them, and they’re not one of your followers. This is what at times is very hard for the mind to rap around, but social media can be your greatest asset, or the tool that gets you fired from your job, and possibly destroys your career.

Most of you have probably heard or read of someone getting fired for what they’ve said online. Last month, a teenage girl was fired from a job she hadn’t even started working at yet because she tweeted her disgust about working at the pizza shop. What you say can have dire consequences, which is why social media in most cases should be used with discretion and a sense of professionalism in mind. We’re living in a time in which everything we say on the Internet is documented and held under a microscope, and it’s time we start using social media the way it was intended.

Because trolls and childish commenters don’t deserve the light of day on a professional matter such as personal branding, I’m going to focus on how it’s essential to post mature and valuable content that will be worth reading and responding to. If you’re someone who takes professionalism and your career seriously, you’re going to prosper on social media because very few millennials are taking advantage of such a powerful tool that could change their lives around.

Companies and businesses are constantly searching on Twitter for content to respond to, retweet, and acquire clients and customers. Are you one of those tweeters who continues to write good and valuable content? Well keep it up because you will get noticed eventually. Take advantage of the voice social media has given to you and show the world (literally) what you know. Your tweets are reaching people across the country and in your own back yard.

When it comes to Facebook, are you engaging with your favorite fan page when they post content? Are you offering any valuable advice in the comment section, or giving a worthy response with your opinion that could change other’s perceptions? If not, start now. You can become an influencer just by consistently engaging on these pages, and who knows, maybe the social media department of these magazines or companies will take notice. Great content is never overshadowed because people will read it. Sometimes the responses aren’t aligned with your opinions, but you’re creating buzz and traffic for that fan page, and that’s important. Engagement and traffic is just as good as money for these social media pages, and if you’re bringing that in the right way, you have no idea where that might lead you.

There was once a time in which you had to apply for a job, seek out openings, and hope you offered more than the other applicants. Today, it’s the opposite. Companies and businesses seek you out. They want talent and young professionals who are ready for the work force. Admirable characteristics have become a lost art these days, but for those who still carry themselves like the people and professionals who came before them, they will find jobs and attract businesses and influencers to them and in essence, they also become influencers themselves.

It’s 2015. Millennials need to understand that every tweet, status, or blog post is their personal brand. We’re not Generation X or the Baby Boomers, our personal brand isn’t created the minute we step into the work force, it’s being built right now.

Twitter is an extremely powerful platform that could make anything we say go viral or reach people of importance. That’s why I recommend making accounts private if you have no regard for your own image and brand. The things I see people my age sharing on Twitter is outrageous and downright embarrassing. On the flip side, I see many people who are gifted with great talent and ability, but never use Twitter to their advantage or completely misuse it.

Social media, if used right, can propel your career to levels that people our age 20 years ago could only dream of experiencing. Our career’s fate could be sealed by one tweet or status, and that’s why Twitter should be used with discretion and professionalism.

Blogging, Business, Marketing

Lack Of Value Given In Blog Posts By Companies Is Absolutely Shocking

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Blogging was once used exclusively by many people to get their voices heard and to give their 2 cents on any subject, business, product or sports team. Today with the continuous evolution of social media and the Internet, businesses of all sorts have hopped online to start distributing content of their own to either reach out to customers or inform them about the company, product, or industry news. What’s surprising is that 15 years into the new millennium, businesses of all shapes and sizes are still not putting out content that adds value to the consumer, nor does it draw them into buying the product they’re selling.

On numerous occasions I’ve seen company’s blogs either being used as a voice for an individual who works for the company, or they use blogs as a platform to distribute content that would have once been in a magazine that no one ever read. I might be coming across as harsh, but this is business, and without valuable and informative content that draws interest from consumers, there are no sales.

It’s shocking to see content being posted that is completely irrelevant to the current product these companies are selling. One article could have easily been written by an independent blogger, but I highly doubt they would have wasted the time to put out content that wouldn’t drive any sales, views, or subscribers. That’s what is so dangerous about lackluster content from all platforms by these companies. As a consumer, I see no value, and therefore I skim over it and continue scrolling down my Twitter or Facebook timeline.

Most people think it’s just Facebook ads, Google Adwords, or throwing money into some other Internet marketing tool that drives sales. In today’s economy people want something with substance, information they can believe in and trust, that assures them that they are making the right decision. It’s amazing to see that the leaders who oversee the distribution of content by these companies don’t see that. Independent bloggers who are close to the product, the company, or have a passion for the industry the business is in, are more likely to post quality content that brings value, than if these companies found somebody in-house. They may also know more about the product in some cases.

Whether it’s Facebook statuses, tweets, or blog posts, businesses and stores need to start putting out better content. Most are doing a great job, but in some industries there aren’t many who are outshining the competition. It would also be wise for these companies to start following and building some form of a relationship with the bloggers who are in someway driving sales and traffic to their websites. These bloggers have an extensive knowledge of these products, and their reviews and content that go along with that knowledge is invaluable.

Also in the age of social media, blogs and the influence that they have on their followers could lead to sales directly to the company because they’ve built trust. Businesses have a harder time building that trust, whereas content from fellow consumers is easier to believe and sympathize with.

It’s 2015. It’s time to start marketing and distributing content like the year we’re living in.