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7 Of the Worst Business Decisions Ever
While it ’ s true we can learn from our own mistakes , it ’ s much easier , faster and sweeter to learn from the mistakes of others .
With that in mind , here are 7 doozies that belong in the Marketing Mistakes Hall of Shame :
Schlitz Beer – At one time , Schlitz was the bestselling beer in America . Then they decided to change their formula , replacing quality ingredients with inferior ones , adding chemicals to try to mask the changes , and even changing the brewing process . All of this was to increase their profit margins so they could continue to compete on price against Budweiser .
Basically , the Schlitz people worked very hard to ruin a bestselling product . By the 1970 ’ s , they ’ d changed the product so much that the bottom of each beer contained a repulsive mucus-like substance .
Of course , sales plummeted , and the brand lost over 90 % of its value . Schlitz beer was now relegated to the bottom bargain beer shelf for only the most desperate and poor of beer drinkers .
Lesson for online marketers ? It ’ s clear isn ’ t it – quality DOES count . Whether you ’ re creating products or acting as an affiliate marketer , if you don ’ t offer your customers a quality product , they won ’ t be back for more . And you ’ ll get a lousy reputation in the process .
Star Wars – A long time ago in a studio far , far away , 20 th Century Fox made one of the lousiest business decisions – ever .
In 1973 , George Lucas negotiated a deal with Fox Studios on a film he wanted to direct – sort of a space western . Fox had offered him $ 500,000 to direct , but George offered to do it for just $ 150,000 if they would grant him all merchandising rights as well as rights to all sequels .
As of today , combined revenue from merchandising and sequels of Star Wars is an estimated $ 42 billion .
Yes , that ’ s right – Fox lost BILLIONS to save $ 350,000 .
When you create a product , don ’ t stop there or you ’ ll be leaving most of your profit on the table . Create an upsell , a down sell , a continuity program , a coaching program and yes , sequels and updates .
You work hard to get your initial program sold , so why not bank on the goodwill you ’ ve earned to sell even more ?
Take a lesson from George Lucas ; the big money isn ’ t in the main product , it ’ s in everything else that comes after .
Kodak – Did you know Kodak invented the first digital camera ? But they panicked and made a terrible decision - sitting on the invention so they could continue to sell film .
Naturally , it was just a matter of time before other companies invented their own digital cameras . Since Kodak owned the patent , they made millions – until the patent ran out in 2007 . 5 years later Kodak filed for bankruptcy .
Lesson learned ? Don ’ t try to fight progress . Instead , be an early adopter and use it to your advantage . Those who were first on board with online video did really well , as did those who jumped on board social media and so forth .
Things will inevitably change , which is why it ’ s better to roll with the flow , look for new opportunities and never stick your head in the sand like Kodak did .