Monday, August 16, 2010

Capital vs. Marketing

Marketing expense begins where capital expenses end.

You can buy an office chair at a Big Box store for $50. It will do the job.

You could buy an office chair with style and greater functionality for $500. It will probably do the job better.

The $500 chair will also give signals about how you view form, function, comfort, attention to detail, and so on.

The first $50 could be viewed as a capital expense. You needed a chair.

The next $450 could be viewed as a marketing expense. You intentionally spent extra to buy a chair that had better form, function, and so on.

A visitor can then expect that you care about form, function, and so on, and not just using the easiest, cheapest option.

What does your chair say about you?


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