Advertising is a Waste of Money

Are you ready to throw away some money? Are you ready to waste some time too? Great. Here is the simple formula: Develop an awesome marketing campaign; support it with television, radio, social media, and search marketing; follow up with having no people to handle the calls and leads. That sounds crazy but businesses, specifically your local automotive dealerships, do it every  month.

The disconnect is especially evident when a consumer sees a high energy television commercial and then calls and speaks with an untrained and unmotivated so-called salesperson or receptionist. The caller usually hangs up without proceeding with setting an appointment or making a purchase, wasting their time, the company’s time, and wasting those advertising dollars. There are ways to avoid this massive money pit.

The easiest way to avoid this is to hire quality people, train them, and compensate them well. Easy, right? At the very least you should always be training. At the very very least you should be training on what the advertisement is and what people should say when customers call or come in. Phone training is difficult because it is not just the words you want people to say but how they say it. A great script delivered with no feeling or excitement is the same as having no script.

It really comes down to training. Who is training your people? Who trained the trainer?

If you want to stop wasting your advertising dollars feel free to email me at

PS. I really dont think that advertising is a waste of money because once you get trained people they need something to do, but which comes first? Join me next time.

#AdvertisingBoss #dtcarguy #CarCultureRevolution

You Hire Who You Attract

Companies often think of marketing and hiring as two different and unconnected jobs and departments, but I propose that hiring is your biggest advertising need if you are trying to grow a business. If your marketing department is not involved with attracting job applicants you are wasting the money you spend advertising your jobs.

It may only be one thing that ruins your job advertisements.

I had been noticing that our recent pool of job applicants for our sales department seemed younger and less experienced than the previous batch of young inexperienced applicants. As I pulled up the online job posting that our hiring manager had posted everything seemed fine until I reached the end, he had posted a salary of $20,000 a year.

If you want a job where you make $1600 a month that is fine, but I wont expect you to be my top producer in my sales department, or my BDC, or as an advisor or mechanic in my service department. If that amount of money is my top producer in any of those positions I am going out of business quickly.

You get what you pay for is as true in hiring as it is anywhere else. When you advertise for people who are satisfied with a minimal amount of money every month don’t be surprised when those same employees give you a minimal amount of work every month.

Motivating people who are success and money oriented is pretty easy, reward them with recognition and money and they usually work on their own to achieve whatever goals are set before them. Motivating people that are not success or money oriented usually ends up being a guessing game and who has time for that?

Advertise BIG for employees, don’t be afraid to use your top producer as the template for your job ad. Does your top salesperson make $300,000 a year? Advertise that instead of advertising to attract more of your worst producers. Get marketing involved in the way you advertise your jobs and you will get better candidates.


Tired of writing huge checks every month for SEO, SEM, Social Media Management, and advertising agency comission fees?

Even worse, are you not writing those checks because you are not doing any digital advertising?

The Advertising Boss DOES NOT want to be your advertising agency, SEO/SEM agency, or manage your social sites. We want to empower you to take control of your own business by managing YOUR BUSINESS online just like you manage every other part of YOUR BUSINESS.

I know you are saying, “I dont have time” right? But stop and think about that by asking yourself if you would let someone you dont know or know anything about your business do your books or even answer your phones?

SEO (Search Engine Optimization), SEM (Search Engine Marketing), Social Media Management, and other digital advertising must be real, authentic, and watched. No one is better qualified than you.

Let the Advertising Boss be your coach and partner in this vital part of YOUR BUSINESS.

Potato Monopoly

A monopolistically competitive market structure used to be the normal condition for the potato chip industry in the Northwest section of the United States.  In 2008, the firms competing against each other were purchased by a group of investors that merged the firms together to create a monopoly.  The company created as a monopoly came from a market that was in a long-run competitive equilibrium with a goal of operating in a state of long-run competitive equilibrium as a monopoly.  The company will gain the most benefit from making the change to operating as a monopoly but the change will only benefit a small portion of the stakeholder’s of the company.

A monopolistically competitive industry is identified by easy entry into the market and therefore many firms are the norm (Case, Fair, & Oster, 2009, p. 303).  In the monopolistically competitive industry each firm does not create the exact same product or offer the exact service but each firm creates a different version of the same product.  Because each product is different each firm can choose to set a different price based on its individual product.

A pure monopoly is identified by a single firm that controls a unique product and because of technological or other barriers has no competition.  The monopoly produces under what capacity would be produced in a competitive market at a price higher than what would be the case in a competitive market.  The basic difference between monopoly and “perfect competition in its analysis of the behaviour of the firm in one_respect only: the monopolist’s demand curve slopes downward. So also does that of the monopolistically competitive firm, and in long-run equilibrium it is just a special case of monopoly where zero profits are being made. If this analysis does add anything to our understanding of firms’ behaviour it must be because it tells us something about the interactions between firms in an industry, for it tells us nothing new about the individual firm” (Maurya, 2008, p. 178).

Given that the new potato chip company is now run as a monopoly, the stakeholders involved, such as the government, businesses, and consumers will be affected in different ways.  Government will be affected because the new potato chip monopoly will produce less than competing firms and raise potato chip prices which will leave less income for investment and other spending.  Businesses that do business with the new company will have a huge benefit because of the volume of business however many suppliers will lose out on dealing with the individual potato chip producers.  Consumers will be adversely affected by the new monopoly since production will decrease and prices will increase.

The reason that the price will increase under a monopoly is that there is a direct correlation between production and profit in a monopoly.  The price of potato chips and the amount of labor  will be linked to production since “Any direct increase in profit due to an extra unit of input must be counterbalanced by an indirect decrease via the impact of that extra unit on the concurrent price system. In our set-up, the extent of monopoly power is driven by the current profit, the marginal product of labor and the (positive) quantity A, which captures the consumer’s attitude toward risk over consumption” (Basak & Pavlova, 2004, p. 503)

The best structure for the new potato chip company is to be a monopoly.  The monopoly is best for the company because there is no competition and “In a world of perfect competition, there are gains from trade because a country can import things that would otherwise be produced at home at a higher cost. The gains from trade under monopolistic competition need not be from comparative advantage, but rather from achieving greater variety and/or lower costs for those differentiated goods. With differentiated products and free entry, the larger market from international trade allows each country to exploit economies of scale for some selected products but at the same time give consumers even greater variety from other countries” (Roy, 2009)


Figure 1. Comparison graph of monopolistically competitive industry and monopoly (Case, Fair, & Oster, 2009, p. 269)

Figure 1 shows why the new potato chip company will produce less chips and charge a higher price than if the firms remained competitive.  The cost curves, marginal revenue curve and demand curve show that the intersection of the competitive supply curve and the market demand curve are controlled by the market in a competitive market.  The new potato chip company operating as a monopoly can set any price and quantity combination along the demand curve (Case, Fair, & Oster, 2009, p. 269)

A monopolistically competitive market structure is the normal market in the United States.  Monopolistically competitive markets are identified by many firms making similar products.  When a market is combined into a monopoly the stakeholders of the company typically do not benefit.  When the monopoly is formed the main benefactor of the monopoly is the firm itself.  Consumers do not benefit from a monopoly because production is less and prices are higher.  The company will gain the most benefit from making the change to operating as a monopoly but the change will only benefit a small portion of the stakeholder’s of the company.


Basak, S., & Pavlova, A. (2004). Monopoly power and the firm’s valuation: A dynamic analysis of short versus long-term policies. Economic Theory.

Case, K., Fair, R., & Oster, S. M. (2009). Principles of microeconomics. Upper Saddle River, NJ: Prentice Hall.

Maurya, M. (2008). Modern microeconomics: Theory and application. Delhi, IND: Mangalam Publishers.

Roy, J. R. (2009). Monopolistic competition. Princeton, Princeton: Princeton University Press.

Originally posted at