Good Thinking!!

1. 
   
   Loews Hotels decided to "credit" their guests for that pesky luggage charge. On checkout, guests get a credit of up to the $30 many / most would have paid. Now, Loews Hotels are always at least a Four Diamond property. They are not inexpensive. I suspect guests stay for more than one night on average. So a "credit" of $10-$15 per night is insignificant. The marketing genius of the idea is to understand their guests, recognize that we are ticked off at the surcharge by the airlines (despite the carriers' own need to find revenue) and solve our problem. Even better is that their strategy was newsworthy and they received plenty of free press. What a different result if they had reduced their rack rate by the same $10-$15!!! Someone was thinking at Loews.


2. 
   
   In the packaged cereal business, the boxes have typically been auxillary billboards inside the various stores that carry the products. The cereal companies used bigger boxes to get more linear feet of shelf space, even though the boxes were not full. Wal*Mart apparently realized a new win-win. Because of their size, they can more easily convince their suppliers so here's what they did... They told the cereal companies to shrink the box, but fill it up more. It reportedly told its suppliers, though, that they would still receive as many linear feet of shelf space. If the shelf used to have, say, 16 feet of General Foods, that same 16 feet would just have more boxes. No loss to anyone. Wins: The suppliers don't have a "need" to use too-large boxes. They save packaging cost. Warehousing is more efficient. Wal*Mart has fewer trucks arrive with the same weight of products...since more boxes that are more full can fit on the trucks. Less truck miles! Less fuel costs. Fewer drivers for the same weight. Less road congestion. Someone was thinking at Wal*Mart.


3. 
   
   In the same vein, it was reportedly Costco and Wal*Mart that "convinced" (by their buying power) the large milk companies to repackage for the same reasons. Now milk containers will hold the same volume but use less space. And less materials. Someone was thinking at Costco, too.


4. 
   
   I am a member of LinkedIn , http://www.linkedin.com/profile?viewProfile=&key=23289279&trk=tab_pro one of the largest social networking groups, particularly valuable for business. There are some members who treat it almost as a cult. They rack up connections almost to no purpose other than bragging rights. Sometimes I wonder if I am one of them. I have hundreds of connections and regular requests to connect with more. I have asked to join a few groups...so far no one has "rejected" me...but recently I was reminded why we network. I asked to join a group. Several responses immediately linked me up. But one person, Jay Davis from Atlanta http://www.linkedin.com/profile?viewProfile=&key=12507352&authToken=gOLU&authType=name&goback=%2Eait%2Emid_641661122 used the opportunity to actually ask for the order right up front. Here is his reply: Thank you for the invitation to connect. Please keep me in mind for ANY type of project that you are involved in. One of my clients or ever growing list of contacts could be just the right person for you. Pretty basic. But, so far, Jay is the only one to use the network right away...as a network to do business. I have not met Jay...don't know if I ever will, or if we will ever do business. But he reminded me of a lesson in networking. Think of him if you have needs in Atlanta!! He's agressive enough to be of service. Good thinking, Jay.