McDonald's
Fatburger
“Economies of scale.”
“Predictability — the product is the same regardless of the market.”
I’ve long been bemused by people who hold up the McDonald’s restaurant business model as one to be followed by radio stations.
In fact, you’ve probably heard someone — either at a convention or in a boardroom — hold up that model as one for your company to aspire to.
McDonald’s doesn’t make much money when they sell one of those miserable little hamburgers. So to make a lot of money, they’ve got to sell a whole lot of hamburgers.
They don’t offer great taste or a pleasurable dining experience.
They offer “dollar menus.”
“Dollar Menu” = “Cost Per Point Radio.”
If you play that game, whoever charges the least wins.
And when lots of others compete with you on price, you have to resort to promotions that further erode your profits: giving away plastic toys, conducting sweepstakes (which, sadly, occasionally turn out to be rigged), etc.
On the other hand, there’s Fatburger, which I have patronized for 25 years now.
Their burgers are a LOT bigger than McDonald’s.
And a LOT tastier.
And a LOT more expensive.
How much more expensive?
You know what? I don’t even know, because I’m not thinking “price” when I go to Fatburger. I’m thinking “taste” and “satisfaction.”
If your radio station aspires to nothing more than doing what every other radio station does, in the same way that every other radio station does it, you don’t get to charge premium advertising rates.
Instead, you get the pleasure of being bullied by 24-year old media buyers who — to quote Randy Michaels from his legendary PD GRAD SCHOOL presentation — “don’t even know how to operate a radio.”
Strange to see an ad agency get a commercial half-right…
