Price Attack

Have you ever wondered why you see prices listed as RRP – recommended retail price?

Under law, a manufacturer can set a wholesale price for distributors and franchisees and may make a recommendation on a retail price but cannot make that price mandatory for retailers.

So Queensland skincare manufacturer Jurlique has found out to the potential cost of up to $10 million.

According to this Courier Mail report, the Australian Competition and Consumer Commission contends that the company dictated retail prices to its franchises and refused to supply to retailers that discounted their products.

This story perfectly illustrates the need for regular communication between wholesalers and their retail distributors.

Selling too cheaply impacts on the quality and value perception of the product. Price too high eats into sales, however discounting reduces profits and may cause the retailer to resent the wholesaler.

It is important for business relationships that both parties receive a worthwhile return on investment so it is important for both the wholesalers and retailers to analyse sales figures.

If stock is not selling well take a look at the reasons why. Is it price? Is it the quality of the product? Are other economic factors involved?

Rather than discounting a product, it is always worth looking at a simply value-add. It keeps the value integrity in place but also helps shift slow moving items.

Drop In, Turn On, Tune Out

There’s more to the story of this week’s $2.2 billion purchase of technology start up You Tube by Internet behemoth Google than meets the eye.

It is actually recognition of the dramatic shift in consumer viewing habits and that will have a tremendous impact on how businesses spend their advertising dollar.

For those not up to date with the latest, You Tube is a web site where anyone can upload video for the public to view.

It not only caters for special interest groups like political pundits, sports enthusiasts and ‘funniest home video’ type moments but also allows people to upload ‘captured’ video clips from television – like Australian Idol, for example.

So what’s the fascination with watching people’s home movies and the like that had major media players like News Corporation (publisher of AustralianIT), owner of MySpace.com, and MTV owner Viacom lining up rival bids?

It’s the beginning of a new trend away from pre-programmed mass entertainment.

Just as half a century ago, TV allowed the individual a choice of programming as opposed to watching the news and entertainment program set by the cinema operators, the Internet now offer a multiplicity of choice of both professionally made and amateur content.

And since the majority of home personal computers come bundled with movie making software, the costs of producing and uploading a mini-movies or video diaries, known as V-logs, are negligible.

What it means for marketers is traditional means of getting a message out to a mass audience is no longer working and the major TV networks know they are in for a tough time in capturing an audience which has so much choice on how it spends its leisure time.

The only sure way of ensuring your message hits the mark is to know your audience. Identifying and understanding your target market has never been more important in making a decision on how you spend your marketing budget.

Wonder Woman Vs The Skeletons In The Closet

Did you know that the creator of the Wonder Woman super heroine could come to the rescue of your business?

William Moulton Marston, a lawyer and psychologist by trade, developed a psychographic profile in the 1920s known as DISC.

Originally developed as an attempt to measure ‘mental energy’, the profile has been refined to create an insightful tool to use when considering bringing a new employee to the team.

Checking work histories and references only takes you so far in truly knowing whether an individual is the right fit for the job or how they will fit in with the rest of the team.

It takes time and effort to build a reputable name for your business but just days to damage the credibility of your business thanks to an ill-chosen employee.

Business Communications Management’s strategic alliance partner Centre For Business Success can come to the rescue of your business too.


A simple 24 question survey elicits a comprehensive report on the personality type, attitudes and aptitudes of the candidate. Best of all you get the profile in less than 48 hours at a cost of under $50.

It’s a very small price to pay to ensure that you’re not hiring a super villain.

Media At A Crossroads

Also in the media news this week is a compromise deal by the Federal Government regarding cross-media ownership rules.

While media bosses would like nothing better than an open playing field, the National Party has successfully applied pressure to secure an amendment that prevents one media owner from owning the majority of the media in one outlet.

According to The Australian, even more changes might be required to get the junior coalition partner’s unconditional support


Do cross media ownership laws really matter?

How much diversity is there anyway when all the news outlets all use news agencies like of AAP, Reuters and Agence France Presse?

Business Communications Management would be interested in hearing from you on your thoughts.

Quote Of The Month

In old days men had the rack. Now they have the Press.
Wilde, Oscar