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Throwing Around $100 Bills - 1

Overseas Travel When Your Currency is Kaput

December 2007 By Denny Hatch
9
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In the News

ECONOMIC VIEW
The Dollar Is Falling, and That’s Good News

ANXIETY about the dollar continues to spread. The falling greenback is often seen as a sign of an impending recession or the fall of the United States from global leadership. A low dollar simply looks bad. We are, after all, used to judging ourselves against others — comparing our salaries with the earnings of our peers, and our homes with those of our neighbors. We’re used to thinking it is a big advantage to stand at the top of a numerical list. But when it comes to currencies, a higher value neither brings national success nor predicts future prosperity. The measure of a nation’s wealth is the goods and services it produces, not the relative standing of its currency. Take a look at 1985-88, when the dollar lost more ground than in the last few years. Those were good times, and the next decade was largely prosperous as well.
—Tyler Cowen, The New York Times, December 2, 2007

We like Hilton. More to the point, you can trust Hilton—unlike the airlines, where you get b.s. about redeeming points or miles. Last week, no rooms were available at our favorite hotel on Trafalgar Square, so we stayed at the very fine Green Park Hilton. The Hilton Corporation continues the founder’s absolute insistence on excellence. Two quickie Hilton stories:

* Whenever the founder, Conrad Hilton, stayed at one of his hotels and went out for the day’s business, he left a 25¢ piece under the radiator. If the quarter was still there when he returned to the room, he fired the maid for not cleaning under the radiator. If it was missing, he fired the maid for theft.

* Hilton’s reported last words as he lay dying: “Always remember, the shower curtain goes inside the tub.”

Conrad Hilton cared. His chain still cares.

London Theatre
We saw “Glengarry Glen Ross” by David Mamet with Jonathan Pryce in the lead. The story is about a group of land salesmen in Chicago and the importance of getting good leads. These were desperate men, and the salesmen that sold the most got the best leads. The less good salesmen, with the poor leads, fell more and more behind.

Most playgoers saw this as an interpersonal drama about scared men willing to say anything to get a sale and do just about anything to get a decent lead.

I saw it from that perspective of course, but also as a direct marketer. I wanted to get together with the guy on stage, who generated and controlled the leads, and find out what lists he was using, what his mailing piece or ads looked like, and figure out how to make these unhappy salesmen successful.

Every direct marketer should see this work, as it graphically shows the results of the lead generation process. So many of us create campaigns in our ivory tower offices, when we should be out in the field interacting with the sales people whose lives and livelihoods depend on us.

The 1993 movie has an all-star cast—Alec Baldwin, Jack Lemmon, Kevin Spacey, Al Pacino, Ed Harris, Alan Arkin and Jonathan Pryce—and should be terrific. Will rent it and report back.

The Queen’s Gallery
One of the great small museums of the world is The Queen’s Gallery adjacent to Buckingham Palace. The Royal Family’s private art collection is (and I hate using this word but it is apt here) awesome, including works by Vermeer, Michelangelo and—incredibly—600 drawings by Leonardo da Vinci. The exhibitions change and a return visit is always worth while.

We went primarily to see one painting. It is a work that was believed to be from the workshop of the 17th century master Caravaggio that had been owned by the Royal Family for 400 years. It languished for decades in the basement of Hampton Court in grungy condition, caked with centuries of varnish and dirt.

The Queen’s conservator decided to give it a cleaning. As the picture began to emerge from the junk covering the surface, it became more and more clear that this was a real Caravaggio—one of only 50 surviving masterpieces by the artist. The estimated value is more than £50 million ($100 million). It depicts Christ with his apostles, Peter and Andrew, at the moment he was telling them to follow him and he would make them “fishers of men.” (See illustration below.)

On the free audio guide to the exhibit, the man who oversaw the restoration of the picture regales the listener with the story of how he and his fellow conservators came to the conclusion it was the real thing. It is a staggeringly luminous painting that rivets your eyes with its composition and execution, and the detective story of its discovery—heard as you stand before the picture—gives you goose bumps.

On Her Majesty as a Marketer
In terms of world-class marketing, the brochure describing the available sites and services at Buckingham Palace is fascinating. For example:

Unlimited Admission
The purchase of your ticket entitles you to register on the day of your visit for 12 months unlimited admission to the site(s) which you have visited. This is valid from the date of your first visit. The offer of Unlimited Admission does not apply to complimentary tickets and is not transferable.


I know of no other museum that offers this benefit. If you want a return visit, either you pay cash money or the institution sticks you for an annual membership at $35 to $75 or more.

Along with an offer of a free newsletter from the Palace, the brochure also includes two panels of questions titled, “We Welcome Your Feedback.”

Like Hilton Hotels, Her Majesty cares.

The Gift Shop
In the lower level of the gallery is the Buckingham Palace gift shop with a splendid inventory of fine china and crystal, books, DVDs, Princess Diana memorabilia and a dizzying array of royal kitsch.

We bought several books and four souvenir ballpoint pens as Christmas gifts. As our purchases were being rung up, the solicitous gentleman behind the register—resplendent in black jacket with brass buttons and red lapels and pocket flaps—slipped the little pens into velvet presentation cases and assured us that they took regular refills and would last indefinitely.

Whereupon he added, “Ah, since you have spent over £25, you are entitled to a free gift,” and produced a box containing two large, green Christmas tree balls printed with “Buckingham Palace” in silver-spangled dust.

A customer is made to feel very welcome at Buckingham Palace. The Queen’s staff is a group of savvy marketers.

The National Gallery
After paying a call on the special exhibition, “RENAISSANCE SIENA: Art for a City,” we went into the gift shop and discovered a nifty device—a machine that makes giant prints on demand. From the Web site:

Print on Demand is the first system of its kind in the world, offering National Gallery visitors the opportunity to order a reproduction of any work in the collection.

(Please note loans to the Collection as denoted by the letter ‘L’ prefixing their catalogue number are NOT available through this service.)

The system uses high-resolution digital images made directly from the paintings, rather than the photographic transparencies used for conventional posters.

The reproductions are printed using a Hewlett Packard 5500ps DesignJet printer. Prints are made with UV-stable pigments on a durable paper and have a lightfast expectancy of 70 years if not exposed to extreme conditions.

All prints are made on a semi-gloss paper, which gives a close match to the surface appearance of varnished painting.

Print on Demand reproductions are colour matched as far as possible to the original painting. It is possible prints may look different in varying light conditions. Images are captured using direct lighting sources which may need to be replicated when hanging reproductions of darker paintings.

There are four sizes of print available, A4 - £10; A3 - £20; A2 - £25 and A1 - £40. A limited amount of prints are also available at A0 size for £75.


The Print on Demand machine is brilliantly efficient as a marketing concept:

* Like print on demand books, the National Gallery does not need to lay out cash money for a large inventory of prints or posters on paper. The inventory resides inside its computer and it can print individual orders to size.

* No need to guess which prints will sell and which will not—with the possible result of a big inventory of leftover losers. This means a cheap test is possible.

* Unlike many museum prints, the colors in off-site reproductions are not true to the original. The reason: the picture itself is in the museum and the printing plant is somewhere else. The folks doing the pre-press work do not have the luxury of comparing the projected print colors to the original. With everything under one roof—original artwork and printing machinery—the Print on Demand colors can be made to match exactly.

* With the precise color match, the person who wants a print for the home would be a fool to buy the picture from any other source.

We have been to the National Gallery on several occasions and have been stopped by staff members and invited to take a survey. This was not just any survey. We were escorted upstairs to the directors’ conference room where we saw artworks not on public view.

The St Pancras Station’s $1.5 Billion Rehab
Eurostar rail service to the Continent has a new home in London, the glorious reconditioning of the St Pancras railroad station which, when completed, will be its own London destination regardless of whether you are traveling anywhere. The final cost: in the neighborhood of £800 million.

Next to where the European trains arrive and depart is the longest Champagne bar in the world. On our visit, the bar was chock-full of people happily guzzling bubbly and scarfing down snacks and light suppers. When the myriad upmarket shops are opened, this will be the world’s premier railroad station. Abu Dhabi could not make a bigger splash. Peggy and I sipped our Champagne and gawked.

Last October 23, the title of this e-zine was “17 Hours in the Real America,” that described Peggy’s and my train trip from Washington, D.C., to the DMA conference in Chicago and the marvelous efficiencies of travel by rail.

The British and Europeans—with smooth riding welded rails and ultra-modern high-speed trains—have taken land travel to a new level.

We should have it so lucky.

Takeaway Points to Consider:

* On the Crash of the Dollar Not only is the dollar on the rocks across the pond, but the Canadian dollar is now at parity or better after years of Toronto and Montreal being a U.S. shopper’s paradise. Many book covers have North American prices that will say, “$24.95 ($31.95 in Canada).” Have you adjusted your Canadian prices to the new value of the Canadian dollar? In your catalog, direct mail and Web site? If not, you are losing Canadian business.

* On Loyalty Programs Frequent flier programs—once a promotional boon for the airlines—are causing a backlash as customers with vast numbers of miles find they cannot use them as planes are flying full and airlines are cutting back on service. Take a look at the current business model of your loyalty programs to make sure they make customers loyal and desirous of doing more business with you. Hilton Hotels is your model.

* “Glengarry Glen Ross” Never underestimate the importance of world-class lead generation. It is the lifeblood of business, the secret of growth and key to the happiness and success of your employees.

* The Buckingham Palace Gift Shop Our experience echoed the rule of consultant Marilyn Black: “Underpromise and overdeliver.” I did not expect the little pens I bought would take standard refills and last indefinitely. Nor were we expecting a free gift—royal Christmas tree ornaments—because we spent over £25. “‘Free’ is a magic word,” said the late guru Dick Benson. Are you making your customers feel good about doing business with you? Is every person that has contact with your prospects and customers highly trained and capable? Or are you saving money by operating a boiler room in India?

* The National Gallery’s Print on Demand Machine With all the splendid new technology available, are one or more areas of your business being operated on a mid-twentieth century model? Could you not streamline it and (1) save money, (2) create a better product and (3) make customers happier? For example, mainstream book publishers are operating on a 19th century model while Print on Demand technology could make them very profitable—if they understood how it works.

* Do You Survey Your Customers? Even if you throw away the surveys unopened, they will think you care.

* St Pancras Station Can you come up with a redesign that will dazzle your customers and prospects?

Web Sites Related to Today's Edition:

“Still Loyal to Your Airline? You Must Be Looney Tunes”
http://www.nytimes.com/2006/03/21/business/21road.html

14 Trillion Unredeemed Frequent Flier Miles
http://tinyurl.com/34tm4f

Redeeming Frequent Filer Miles Is Tough
http://tinyurl.com/332g6f

Frequent Flier Web Site
http://www.frequentflier.com/

Hilton HHonors
http://tinyurl.com/2dynnf

The Queens Gallery, Buckingham Palace
http://www.royal.gov.uk/OutPut/Page1208.asp

Interactive 360-degree panoramic images of St Pancras station
http://tinyurl.com/3xuhrc

The National Gallery Shop
http://www.nationalgallery.co.uk/shop/default.asp
 
9

COMMENTS

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Most Recent Comments:
Paul Zink - Posted on December 11, 2007
Everyone's impression of a city is different, of course. Although I haven't been to London for years, I am very fond of it, at least in memory. But my wife, mother-in-law and daughter went this summer, for the first time, and were dismayed. According to my wife, the city streets were mostly full of middle-easterners (my wife -- who is part North African -- said ?If I wanted to visit Algiers, I would have gone there?)? Also, they said that more than one city street had a large official sign warning that you were at risk of bodily harm from crime if you ventured further (imagine that on any street in an American city!).

Concerning the smoking ban in the pubs, I think it?s a shame: how would non-smokers feel if smoking were mandatory in bars rather than the other way ?round? As a marketer (as Denny is so fond of saying), I say: ?let the market decide??

But every person who has left a comment here seems most taken by Glengarry Glen Ross ? and for good reason: it is a fine play. The movie was superb, but I was also fortunate to see the theater production on stage in San Francisco in 1986, with original cast member Joe Mantegna in the ?Richard Roma? role (played on film by Al Pacino), as well as some of the other original Broadway cast. An unforgettable experience, especially since I had never before then heard the ?F-word? used so frequently in so short a space of time, let alone on stage!
David Rose - Posted on December 11, 2007
Tying together European prices and a sort of negative loyalty program, I recall driving in Europe in the late '60s with my brother, who had just taken delivery of his new Volvo (which cost, I believe, ~$2800).

As we were nearing Amsterdam, I opened Arthur Frommer's "Europe on $5 a Day" and found this customer-friendly comment: "It's too bad that you don't have much money, because you will be unable to stay at the superb (sic) Hotel Arthur Frommer which, at $7 per night, is out of your price range".

Re: awesome. It would seem that common usage of the word stems from the advertising campaign introducing a new Japanese sports car: "The Datsun 240Z--AWESOME!!"
Bernie Malonson - Posted on December 11, 2007
GlenGarry Glen Ross. What a great flick! Pay close attention to Alec Baldwin's performance as the sales trainer.

"Always Be Selling. A man doesn't walk on the lot unless he wants to buy. Your job is to SELL him!"

I recently read a great quote by Hershell Gordon Lewis, "Do not be afraid to sell."

The movie echoes this as well.

The other key point to watch for is the office managers interruption of Al Pacino, Jack Lemmon and Johnathan Pryce.

Cheers!

Bernie
Brent D. Gardner, CLU, ChFC - Posted on December 11, 2007
Glengarry Glen Ross is a classic story, and the movie is full of some oft quoted lines that salespeople joke about. Alec Baldwin's speech has been played in more sales meetings than any, except maybe Ben Afleck's speech in Boiler Room.

In my industry, prospecting is everything. There's more unrewarded brilliance in financial services than probably any other. We joke about failed planners who are well educated, and smart, but who don't have the cajones to pick up the phone, or walk in and ask for Mr. Big in person.

Selling really isn't difficult. Getting in front of buyers that want/need something, when they want/need it, when they can afford it, when they are willing to make a change from the status quo? That's a little more difficult, and that's why 19 out of 20 insurance and investment brokers wash out of this Darwinian craft.
Kevin Nielsen - Posted on December 11, 2007
Glengarry Glen Ross. Darkest movie I ever saw. A tribute to lies, manipulation and greed. A onetime print salesrep associate of mine held the movie as his model of how to conduct business. He was not a successful rep; nor did he evince an ounce of joy in his personna. I'll be curious Denny to know if the movie leaves you with a similar chill. Happy Holidays!
Wash Phillips - Posted on December 11, 2007
Heard on the radio last night that very recently both Egypt and Israel wrote the White House (or whomever) asking that their U.S. aid be administered in Euros, not dollars.
The government reply was not stated. What would yours be?
Mike McCormick - Posted on December 11, 2007
Denny, Thanks for the comments on Glengarry. I think of the movie often. Jack Lemon is especially good. This line in your column fascinated me "smoking has been banned in London, so pubs?and everyplace else?are a joy." I would always add "except, of course, for the 20% or so of the adult population that smokes." Nobody's explained yet why we can't have smoking and non smoking bars (owner's choice) so the people can decide. Oh wait, I just answered my own question. We can't let the people decide can we? Mike
John Jervis - Posted on December 11, 2007
When my kids and I compare the good old days to today, I look at how many hours did I need (and do I now) have to work to buy bread, a washing machines, a car, etc.

Seems some things are better in that regard, but it's still pretty relative.

So more of our dollars are needed to "buy" an hour of their work there. Perhaps it's their taxes, social programs, or whatever that makes their hour more expensive than ours.

We produce more in an hour than they may, so our produced goods are cheaper to them.

This is why Chinese goods are cheaper than ours. Their hour/cost produces more than our hour/cost.

Secondly, this attracts more dollars back here. So many went over there (oil and all that).

Thirdly, I read where the "loonie" is so high relative to our "greenback" that Canadian companies (like Bombardier) are laying off workers, and sales are tanking.

This all doesn't bother me too much. Inflation would (wheelbarrows of money and all that like in early days of Third Reich) bother me more.

We produce quality goods cheaper to Europeans than they produce. We enjoy nearly full employment, a strong economy, etc.

Makes it hard to care about the Yen, the Euro, the Pound and the Loonie all that much.
Jay van Wagenen - Posted on December 11, 2007
In February my husband and are flying first class to Paris. This will be the third Euro trip in four years for us -- all first class flights, all free, courtesy of our frequent flyer miles, most of which were earned via credit card. Since the dollar is at its lowest point in our travel experience, I'm feeling rather grateful to greedy, stupid marketers that at least we can fly in comfort.
Click here to view archived comments...
Archived Comments:
Paul Zink - Posted on December 11, 2007
Everyone's impression of a city is different, of course. Although I haven't been to London for years, I am very fond of it, at least in memory. But my wife, mother-in-law and daughter went this summer, for the first time, and were dismayed. According to my wife, the city streets were mostly full of middle-easterners (my wife -- who is part North African -- said ?If I wanted to visit Algiers, I would have gone there?)? Also, they said that more than one city street had a large official sign warning that you were at risk of bodily harm from crime if you ventured further (imagine that on any street in an American city!).

Concerning the smoking ban in the pubs, I think it?s a shame: how would non-smokers feel if smoking were mandatory in bars rather than the other way ?round? As a marketer (as Denny is so fond of saying), I say: ?let the market decide??

But every person who has left a comment here seems most taken by Glengarry Glen Ross ? and for good reason: it is a fine play. The movie was superb, but I was also fortunate to see the theater production on stage in San Francisco in 1986, with original cast member Joe Mantegna in the ?Richard Roma? role (played on film by Al Pacino), as well as some of the other original Broadway cast. An unforgettable experience, especially since I had never before then heard the ?F-word? used so frequently in so short a space of time, let alone on stage!
David Rose - Posted on December 11, 2007
Tying together European prices and a sort of negative loyalty program, I recall driving in Europe in the late '60s with my brother, who had just taken delivery of his new Volvo (which cost, I believe, ~$2800).

As we were nearing Amsterdam, I opened Arthur Frommer's "Europe on $5 a Day" and found this customer-friendly comment: "It's too bad that you don't have much money, because you will be unable to stay at the superb (sic) Hotel Arthur Frommer which, at $7 per night, is out of your price range".

Re: awesome. It would seem that common usage of the word stems from the advertising campaign introducing a new Japanese sports car: "The Datsun 240Z--AWESOME!!"
Bernie Malonson - Posted on December 11, 2007
GlenGarry Glen Ross. What a great flick! Pay close attention to Alec Baldwin's performance as the sales trainer.

"Always Be Selling. A man doesn't walk on the lot unless he wants to buy. Your job is to SELL him!"

I recently read a great quote by Hershell Gordon Lewis, "Do not be afraid to sell."

The movie echoes this as well.

The other key point to watch for is the office managers interruption of Al Pacino, Jack Lemmon and Johnathan Pryce.

Cheers!

Bernie
Brent D. Gardner, CLU, ChFC - Posted on December 11, 2007
Glengarry Glen Ross is a classic story, and the movie is full of some oft quoted lines that salespeople joke about. Alec Baldwin's speech has been played in more sales meetings than any, except maybe Ben Afleck's speech in Boiler Room.

In my industry, prospecting is everything. There's more unrewarded brilliance in financial services than probably any other. We joke about failed planners who are well educated, and smart, but who don't have the cajones to pick up the phone, or walk in and ask for Mr. Big in person.

Selling really isn't difficult. Getting in front of buyers that want/need something, when they want/need it, when they can afford it, when they are willing to make a change from the status quo? That's a little more difficult, and that's why 19 out of 20 insurance and investment brokers wash out of this Darwinian craft.
Kevin Nielsen - Posted on December 11, 2007
Glengarry Glen Ross. Darkest movie I ever saw. A tribute to lies, manipulation and greed. A onetime print salesrep associate of mine held the movie as his model of how to conduct business. He was not a successful rep; nor did he evince an ounce of joy in his personna. I'll be curious Denny to know if the movie leaves you with a similar chill. Happy Holidays!
Wash Phillips - Posted on December 11, 2007
Heard on the radio last night that very recently both Egypt and Israel wrote the White House (or whomever) asking that their U.S. aid be administered in Euros, not dollars.
The government reply was not stated. What would yours be?
Mike McCormick - Posted on December 11, 2007
Denny, Thanks for the comments on Glengarry. I think of the movie often. Jack Lemon is especially good. This line in your column fascinated me "smoking has been banned in London, so pubs?and everyplace else?are a joy." I would always add "except, of course, for the 20% or so of the adult population that smokes." Nobody's explained yet why we can't have smoking and non smoking bars (owner's choice) so the people can decide. Oh wait, I just answered my own question. We can't let the people decide can we? Mike
John Jervis - Posted on December 11, 2007
When my kids and I compare the good old days to today, I look at how many hours did I need (and do I now) have to work to buy bread, a washing machines, a car, etc.

Seems some things are better in that regard, but it's still pretty relative.

So more of our dollars are needed to "buy" an hour of their work there. Perhaps it's their taxes, social programs, or whatever that makes their hour more expensive than ours.

We produce more in an hour than they may, so our produced goods are cheaper to them.

This is why Chinese goods are cheaper than ours. Their hour/cost produces more than our hour/cost.

Secondly, this attracts more dollars back here. So many went over there (oil and all that).

Thirdly, I read where the "loonie" is so high relative to our "greenback" that Canadian companies (like Bombardier) are laying off workers, and sales are tanking.

This all doesn't bother me too much. Inflation would (wheelbarrows of money and all that like in early days of Third Reich) bother me more.

We produce quality goods cheaper to Europeans than they produce. We enjoy nearly full employment, a strong economy, etc.

Makes it hard to care about the Yen, the Euro, the Pound and the Loonie all that much.
Jay van Wagenen - Posted on December 11, 2007
In February my husband and are flying first class to Paris. This will be the third Euro trip in four years for us -- all first class flights, all free, courtesy of our frequent flyer miles, most of which were earned via credit card. Since the dollar is at its lowest point in our travel experience, I'm feeling rather grateful to greedy, stupid marketers that at least we can fly in comfort.