Tag Archives: tribune

How Groupon Is Robbing Mainstreet USA…

Leave a reply

It’s official.  Groupon has filed with the SEC to “go public”.

In a time when mainstreet USA was struggling for business, Groupon rode in on their White Stallion and promised to bring business in the front door.  They patted the small business owner on the head and said, “don’t worry…we’ll help YOU.”

Groupon offered to advertise your business for free.  They said they’d even sell your stuff for you.  They’d handle EVERYTHING for YOU.  The best part is there’s NO RISK to you.  If no one buys, it didn’t cost you anything!

If no one buys, you get FREE advertising from GROUPON!!!!!

But what if lots of people buy?  What’s this “Groupon Effect” people are talking about?

Well simply put, when people buy your outragiously discounted and now commoditized wares through Groupon….Groupon will write YOU a check!!!

So to recap:

  1. Groupon advertises YOUR business FREE
  2. There’s “no risk” to you
  3. If no one buys your stuff, you pay nothing
  4. GROUPON will pay YOU if you sell your products or services

This sounds GREAT!  What’s the catch?

  1. You have to dive on price which compromises your integrity
  2. The reduced profit is split with Groupon
  3. Groupon uses your name, brand and customer base to build their database to use later to market other businesses, and even competitors
  4. You risk alienating your loyal customer base
  5. You risk overwhelming your staff with an influx of non-local business
  6. You give deals and price breaks to strangers instead of your loyal customer base
  7. You lose over 50% of your profit margin
  8. You have to clean up the mess, while Groupon moves on to the next business

In short, your business is underwriting Groupon’s growth.  They’re now selling shares for BILLIONS and you are still struggling to pay your CAM.  You are essentially paying THOUSANDS of dollars for an email blast that should cost you pennies.  Imagine paying $15,000 for an email blast.

But Groupon rocks other than that.

Here’s more on Groupon from the Tribune.

The solution?  Build your own following one loyal customer at a time.  Read 1,000 True Fans.  Partner with other local businesses and cross promote locally so you can grow together, steadily.  Forget the GRAND opening mentality.  It’s easier to keep a customer than it is to get a new one.  Love the ones you’re with and empower them to spread the word.

If you ran a Groupon, ask the board for some stock.  You helped build Groupon.

What The Hell Does Robert Feder Know?

Leave a reply

Randy Michaels (Tribune CEO) put out a list to his company chronicling 100 words that “shall not be named”.  It’s my understanding this list was intended for Tribune writers, WGN TV presenters, and WGN radio hosts.

“The real goal here is to avoid using words that make you sound like you’re reading, instead of talking — that shatter the image you’re speaking knowledgeably to one person. By not using ‘newsspeak,’ you enhance your reputation as a communicator.”

Robert Feder wrote a scathing review of this memo and Randy’s practices at WGN.  Once you get on Mr. Feder’s bad side you’re doomed.  That’s not to say Rob (not Bob) isn’t objective.  But the bigger issue (as Feder’s pointed out in his column) with this regime and others (Ahern’s CBS 2) is the fundamental culture schism.

The new bosses at Tribune came in and pissed all over everything THEN tried to establish themselves as credible and respect worthy management.  Now, they’re looked at as the bulls in a China shop when all they really want is to fix a company mired in “we’ve always done it this way” which is killing newspaper across the US.

I had lunch with a friend and fellow radio programmer yesterday and we laughed because the “list” of words not to mention is not too far off base.  Million dollar TV and Radio hosts have gotten lazy.  Their management has been reluctant to shape and mold them, or perhaps incapable because the managers didn’t have the chops or command the respect to do so.  Either way, it’s time to catapult Tribune into the 21st Century for sure.  There’s no doubt about that.

Anyone who says YOU ALL or YOU GUYS is NOT relating to an audience of ONE, which is what your audience ALWAYS is.  But tell that to Oprah.  Sometimes, she even calls the audience……AUDIENCE!

I think Mr. Feder recognizes these things even though he admittedly has not programmed a radio or TV station.  He get’s it.  He also gets how the Tribune Company will rot from the inside out if this stuff continues the way it’s being done.

Mr. Michaels is indeed attacking the messenger.  That’s what his staff is doing as well, because of the way he executed this initiative.  Memos like this are meant for telling all staff the parking lot is going to be painted on Monday and please park in lot B.  Phone calls, one on one development meetings and good old conversations are the way to motivate and inspire real change on the scale they need at the Trib.

Randy, you need to get those people walking with you NOT 20 steps behind you in fear.  I recall the signs all over the inside of WGN Radio which boldly stated:  “YOU own this place now” referring to employee ownership.  If the employees own the place, why aren’t they being treated with as much or MORE respect than you’d offer to Sam Zell?  The employees actually have SKIN IN THE GAME.

Also noted by Feder is how Michaels bagged on bloggers.  Funny.  Bloggers are good enough to anchor ChicagoNow.com AND take up precious airtime on WGN CHICAGO!  So what does Robert Feder know?  I think he’s seen enough over his 30 years covering Chicago media to know when something’s off.  He’s also smart enough to know the web is the future for all writers and darn near everything…..but then again, What the hell does Matt DuBiel know….?

(In full disclosure, I reached out to ChicagoNow about blogging for them a while back.  I began “blogging” in 1997, and then started podcasting in 2004.  Admittedly, it wasn’t a weekly effort on my part.  Either way, I pitched ChicagoNow on a blog concept coming from the perspective of a 30 something dad in the suburbs.  I got a response.  I was told to lay out some examples, which I did, and I then never heard back.  The more I thought about it afterward, the more I questioned why anyone would blog for ChicagoNow or anywhere else UNLESS they are getting paid.  Blogs are cheap and easy to set up and when you control your blog you control your message, your brand and your relationships.  Anyone blogging for ChicagoNow for free should blog on their own website and let ChicagoNow refeed it.  Don’t just blog for ChicagoNow or any other site for free.)