1
Patty & Pietro’s
ORBIT!
12 ABSOLUTELY, POSITIVELY PROVEN WAYS
TO BOOST YOUR BUSINESS AND GLIDE INTO SUCCESS
© Tom Patty + John Pietro 2014
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REVIEW
Levels and
Potential Growth
LEVEL 3
100-500%
LEVEL 2
20-100%
LEVEL 1
5-20%
© Tom Patty + John Pietro 2014
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ONE THING
© Tom Patty + John Pietro 2014
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BUSINESS MODEL
THE RECIPE FOR SUCCESS
Use the right amount of each ingredient
OR
© Tom Patty + John Pietro 2014
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BUSINESS MODEL
4 PARTS TO THE BUSINESS MODEL
1. Offering
Product or service
2. Who?
Best target customer
3. How?
Place, price, packaging
4. Why?
What’s in it for them?
© Tom Patty + John Pietro 2014
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BUSINESS MODEL
EXAMPLES
Business Model
Companies
Razor and blades
Gillette, Printers
Cheap Chic
Target, IKEA
Bricks and Clicks
Best Buy, B & N
Franchise
McDonalds, NFL
Loss Leader
Gas Stations
Subscription
Costco, AMEX
Speak to sell
Patty / Pietro
© Tom Patty + John Pietro 2014
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FAILURE VS SUCCESS
GATEWAY COMPUTER vs APPLE RETAIL STORES
© Tom Patty + John Pietro 2014
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BOOK EXAMPLE
TOM PATTY’S MARKETING WITHOUT MONEY
Business
Model 1
Business
Model 2
1. Offering Book
Book
2. Who?
Individuals
Groups
3. How?
Amazon
Speak
4. Why?
Knowledge
Audience
© Tom Patty + John Pietro 2014
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NIKE EXAMPLE
Business
Model 1
Business
Model 2
1. Offering Track shoes
Waffle trainer
2. Who?
Track runner
Stores
3. How?
Track meets
Retailers
4. Why?
Winning
Make money
© Tom Patty + John Pietro 2014
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APPLE EXAMPLE
Business
Model 1
Business
Model 2
1. Offering Apple II
Macintosh
2. Who?
Business
Individuals
3. How?
vs IBM
New market
4. Why?
?
Creative, fun
© Tom Patty + John Pietro 2014
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CHIPOTLE EXAMPLE
1. Offering
Fast casual Mexican food.
2. Who?
Young adults looking for something
better than fast food.
3. How?
Delivery allows for personal choice.
4. Why?
Personal choice + fresh ingredients
valued. Customer willing to pay more
leads to more sales.
© Tom Patty + John Pietro 2014
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MORTON SALT EXAMPLE
1. Offering
Packaged salt.
2. Who?
Homemakers who like to cook.
3. How?
Grocery store.
Great tradition, reputation, brand.
- First cylindrical packaging
- Add iodine to cure epidemic, goiters
- Priced 2-3 times higher
Value equation high
© Tom Patty + John Pietro 2014-
4. Why?
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AMP EXAMPLE
1. Offering Ad agency - small to medium clients.
2. Who?
Food service, soft bev, hospitality.
3. How?
Serving clients too small for larger full
service agencies.
4. Why?
Make it easy to do business with fixed
annual pricing plus first class creative
and category expertise.
© Tom Patty + John Pietro 2014
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Where to differentiate
Packaging
Promotion
PRICE
Distrib’
Easier to
use
What
you say
Better
looking
How you
say it
Better
value
for
price
More
convenient
© Tom Patty + John Pietro 2014
Easier to
use
Product /
Service
Better
in a
specific
way
15
WAYS TO DIFFERENTIATE
Convenience
Emotional experience
Expertise
Longer lasting
© Tom Patty + John Pietro 2014
Pricing
Service
Speed
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A VALID BUSINES MODEL
HOW TO CREATE ONE
1. Who is the best customer?
2. Trial & Error
Book example:
a) Individual
b) Sponsors
c) Franchise business
3. Patience
4. Luck!
© Tom Patty + John Pietro 2014
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HOW DO I DO IT?
Need outside perspective
© Tom Patty + John Pietro 2014
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HOW DO I MAKE MONEY?
Top Line Sales
- Minus Variable Costs
= Equals Cash Flow
- Minus Fixed Costs
= Equals Gross Margin
- Minus Taxes
= Equals Net Profit
© Tom Patty + John Pietro 2014
100%
40%
60%
30%
30%
15%
15%
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PIETRO’S PITFALLS
1
Business revenue goes up, profits don’t
1
2
Sales go down when we increase price
3
We need to educate the consumer
4
As a distributor, franchisee or licensee,
why can’t I make any money?
© Tom Patty + John Pietro 2014
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SUSTAIN
Innovation
Competitive Advantage
Avoid Pitfalls – Cindy Lauper vs Madonna
Graceful exit
© Tom Patty + John Pietro 2014
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SUMMARY / CONCLUSION
12 Absolutely, Positively Proven Ways
to Boost Your Business
Rocket ship: Launch blast off, orbit
Business model = recipe for success
Client success stories
You are the greatest!
© Tom Patty + John Pietro 2014
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THANK YOU
FOR COMING
AND SEE
TOM
PATTY
YOU AT OUR
NEXT WORKSHOP
© Tom Patty + John Pietro 2014
JOHN
PIETRO