CathyBogart
09-18-2006, 11:14 AM
From DogPolitics:
http://dogpolitics.typepad.com/my_weblog/2006/09/akc_petland_per.html
AKC & Petland - Perfect Together?
In an unconfirmed report, we hear that the American Kennel Club, that old and venerable organization, has inked a deal with Petland Discount - a chain of pet stores that sells live puppies and kittens and fish, etc.
This deal between AKC and Petland is designed to "educate" their buyers on the benefits of registering with the AKC. (cough, cough).
If true - this decision (we hear the board voted 12-1 to approve) will be sure to provoke discussion all across the web.
But hey - maybe it makes fiscal sense for the AKC - you know pump up the revenue? What do you think?
Let's take a look from a sales perspective ........
or-The 80/20 Rule
I'd like to point out the old 80/20 rule.
Now for you non-sales people out there - the 80/20 rule says that 80% of your business comes from 20% of your customers.
Using this rule would mean that 80% of the AKC's revenue is coming (or should be) from 20 % of breeders.
Maybe high volume breeders - like the Hunte Corporation, that in turn sell their product through sales channels like Petland?
The Sales Challenge
Let's say all those puppies being sold by "high volume" breeders represent potential revenue for the AKC.
But those puppies from HVB actually lost revenue - because those were sold, the puppies were not actually being registered - and those (sales) were not reaching the home office up at the AKC.
So all that revenue from all those puppy stores was being lost in LaLa Land. The question for the AKC is how to convert those lost registrations into "sales"?
The Sales Solution
How do you recover lost revenue? Why you need a sales strategy, silly.
Maybe the AKC has figured out that in order to close more sales - ooooopps- I mean increase registrations - that it should partner more closely with it's customers - the 20% of breeders from which most revenue flows.
"Cause really the remaining 80% of low volume breeders - meaning the home hobby breeder - they only represent 20% of AKC revenue. Hypothetically - of course.
And as such a small share of revenue - it's kinda easy to ignore them. After all - they make a lot of noise - and perhaps even chew of more AKC time and resources that they're worth.
So coming up with a "program" that "educates" buyers about the "benefits" of AKC registration to close the gap on all that lost revenue - well, that's pure sales genius. Way to go, AKC!
But that plan just might be a little risky, in terms of PR and all that. But perhaps the AKC has it covered.
Risk Vs. Reward
Some people have this impression that the AKC has got things totally backwards - first lining up on the PAWS Bill with arch enemy, everyone favorite animal rights group, the HSUS.
Now if this report is true about AKC partnering with Petland - - I would say that the AKC is gonna take a beating - again. This rumored partnership may lead people to the mistaken belief that the AKC is lining up with so-called "puppymillers".
Of course - that couldn't be further from the truth, as we all know.
Such decisions thay fly in the face of the AKC's mission have seriously risked the AKCs reputation and loyalty with its core constituents. But unfortunately - it's those core constituents are the 80% who only make up 20% of the revenue.
Like they say - without risk, there can be no reward. So the AKC is betting that the rank & file will take this new approach - that despite the risk of alienting thier contstituents - the rewards (the revenue) will be there.
So the AKC will now embark on a new plan to take in more revenue over the objections of the clubs. But I am sure the AKC has already thought of this and has a plan at the ready to be sold - I mean communicated - to the stakeholders.
Return On Investment
Now all those little Mom & Pop home breeders that the AKC is supposed to represent, who feel they have been dissed by the AKC - we'll those people are already pissed.
They think that the leadership of the AKC has lost it's way a long time ago - as this venerable organization has strayed pretty far from it's core mission.
Now we happen to know that the AKC is run by some pretty smart people. But we wonder how all those really smart people up at the AKC would keep making really bad decisions? It's not like they're doing it on purpose.......
Now I'm not a dog breeder, and I don't show dogs, I'm just in marketing. But I gotta say that I don't think the AKC brand is doing real well with it's core customers - and brand repution is really key.
Long Range Plan
But maybe the AKC has a long range strategic plan in place.
Perhaps its a plan that will make sure there's a return on investment (and will make for all the flak the AKC has been taking of late) - one that will become clearer for all stakeholders.
Now any good long range plan should include a multi-pronged approach to overcome objections by different groups. For example - there should be a plan to cover objections from the Mom & Pop hobby breeders, and another plan to overcome objections from the animal rights groups who are fighting puppy mills.
But any good sales plan includes strategies to "overcome objections".
After all - by partnering with animal rights groups on legislation, and now facilitating registrations from so called "puppy millers", the AKC kinda leaves the wrong impression with a lot of people.
But I'm sure the AKC has that covered.
For The Good Of the Dogs
For the record, there's nothing wrong with two organizations partnering to bring improved products or services to their respective customer bases.
(UPDATE: We hear the AKC delegates have overwhelmingly voted to rescind the contract.)
The point here is whether or not such a partnership is in step with the core mission of the American Kennel Club, a nonprofit organization, and whether or not such a contract relects the values of the organization, and enhances or hurts the reputation of the AKC.
Now everyone that I've ever met that's connected with the AKC - they have been warm, lovely people, with an unparalled love of dogs. The dog world has provided them with a lifetime of friendships built through the sport of purebred dogs.
They want "their" AKC. They want to see the AKC get on the right track. They want the AKC to succeed. I do too.
I sure hope they get their wish - because sometimes it seems like the AKC couldn't couldn't do a worse job of running their reputation into the ground if they planned it, right?
They would never plan it - would they? Naaaaaaaah.
Getting back to the unconfirmed report..... I hope the AKC has a plan. Millions of dog owners are depending on the AKC to represent their interests.............
For the good of the dogs.
******************************************
I think this is sick...I didn't want to believe it at first, but it seems to be everywhere.
IMO it totally demeans people who are spending their time and money to genuinely try to improve their breeds. It's also going to encourage people to not only buy but BREED pet store dogs. "well, he's AKC registered so he MUST be breeding quality!" I guess in the end it's all about the bottom line. More piss-poor quality puppies still means more money for the AKC.
http://dogpolitics.typepad.com/my_weblog/2006/09/akc_petland_per.html
AKC & Petland - Perfect Together?
In an unconfirmed report, we hear that the American Kennel Club, that old and venerable organization, has inked a deal with Petland Discount - a chain of pet stores that sells live puppies and kittens and fish, etc.
This deal between AKC and Petland is designed to "educate" their buyers on the benefits of registering with the AKC. (cough, cough).
If true - this decision (we hear the board voted 12-1 to approve) will be sure to provoke discussion all across the web.
But hey - maybe it makes fiscal sense for the AKC - you know pump up the revenue? What do you think?
Let's take a look from a sales perspective ........
or-The 80/20 Rule
I'd like to point out the old 80/20 rule.
Now for you non-sales people out there - the 80/20 rule says that 80% of your business comes from 20% of your customers.
Using this rule would mean that 80% of the AKC's revenue is coming (or should be) from 20 % of breeders.
Maybe high volume breeders - like the Hunte Corporation, that in turn sell their product through sales channels like Petland?
The Sales Challenge
Let's say all those puppies being sold by "high volume" breeders represent potential revenue for the AKC.
But those puppies from HVB actually lost revenue - because those were sold, the puppies were not actually being registered - and those (sales) were not reaching the home office up at the AKC.
So all that revenue from all those puppy stores was being lost in LaLa Land. The question for the AKC is how to convert those lost registrations into "sales"?
The Sales Solution
How do you recover lost revenue? Why you need a sales strategy, silly.
Maybe the AKC has figured out that in order to close more sales - ooooopps- I mean increase registrations - that it should partner more closely with it's customers - the 20% of breeders from which most revenue flows.
"Cause really the remaining 80% of low volume breeders - meaning the home hobby breeder - they only represent 20% of AKC revenue. Hypothetically - of course.
And as such a small share of revenue - it's kinda easy to ignore them. After all - they make a lot of noise - and perhaps even chew of more AKC time and resources that they're worth.
So coming up with a "program" that "educates" buyers about the "benefits" of AKC registration to close the gap on all that lost revenue - well, that's pure sales genius. Way to go, AKC!
But that plan just might be a little risky, in terms of PR and all that. But perhaps the AKC has it covered.
Risk Vs. Reward
Some people have this impression that the AKC has got things totally backwards - first lining up on the PAWS Bill with arch enemy, everyone favorite animal rights group, the HSUS.
Now if this report is true about AKC partnering with Petland - - I would say that the AKC is gonna take a beating - again. This rumored partnership may lead people to the mistaken belief that the AKC is lining up with so-called "puppymillers".
Of course - that couldn't be further from the truth, as we all know.
Such decisions thay fly in the face of the AKC's mission have seriously risked the AKCs reputation and loyalty with its core constituents. But unfortunately - it's those core constituents are the 80% who only make up 20% of the revenue.
Like they say - without risk, there can be no reward. So the AKC is betting that the rank & file will take this new approach - that despite the risk of alienting thier contstituents - the rewards (the revenue) will be there.
So the AKC will now embark on a new plan to take in more revenue over the objections of the clubs. But I am sure the AKC has already thought of this and has a plan at the ready to be sold - I mean communicated - to the stakeholders.
Return On Investment
Now all those little Mom & Pop home breeders that the AKC is supposed to represent, who feel they have been dissed by the AKC - we'll those people are already pissed.
They think that the leadership of the AKC has lost it's way a long time ago - as this venerable organization has strayed pretty far from it's core mission.
Now we happen to know that the AKC is run by some pretty smart people. But we wonder how all those really smart people up at the AKC would keep making really bad decisions? It's not like they're doing it on purpose.......
Now I'm not a dog breeder, and I don't show dogs, I'm just in marketing. But I gotta say that I don't think the AKC brand is doing real well with it's core customers - and brand repution is really key.
Long Range Plan
But maybe the AKC has a long range strategic plan in place.
Perhaps its a plan that will make sure there's a return on investment (and will make for all the flak the AKC has been taking of late) - one that will become clearer for all stakeholders.
Now any good long range plan should include a multi-pronged approach to overcome objections by different groups. For example - there should be a plan to cover objections from the Mom & Pop hobby breeders, and another plan to overcome objections from the animal rights groups who are fighting puppy mills.
But any good sales plan includes strategies to "overcome objections".
After all - by partnering with animal rights groups on legislation, and now facilitating registrations from so called "puppy millers", the AKC kinda leaves the wrong impression with a lot of people.
But I'm sure the AKC has that covered.
For The Good Of the Dogs
For the record, there's nothing wrong with two organizations partnering to bring improved products or services to their respective customer bases.
(UPDATE: We hear the AKC delegates have overwhelmingly voted to rescind the contract.)
The point here is whether or not such a partnership is in step with the core mission of the American Kennel Club, a nonprofit organization, and whether or not such a contract relects the values of the organization, and enhances or hurts the reputation of the AKC.
Now everyone that I've ever met that's connected with the AKC - they have been warm, lovely people, with an unparalled love of dogs. The dog world has provided them with a lifetime of friendships built through the sport of purebred dogs.
They want "their" AKC. They want to see the AKC get on the right track. They want the AKC to succeed. I do too.
I sure hope they get their wish - because sometimes it seems like the AKC couldn't couldn't do a worse job of running their reputation into the ground if they planned it, right?
They would never plan it - would they? Naaaaaaaah.
Getting back to the unconfirmed report..... I hope the AKC has a plan. Millions of dog owners are depending on the AKC to represent their interests.............
For the good of the dogs.
******************************************
I think this is sick...I didn't want to believe it at first, but it seems to be everywhere.
IMO it totally demeans people who are spending their time and money to genuinely try to improve their breeds. It's also going to encourage people to not only buy but BREED pet store dogs. "well, he's AKC registered so he MUST be breeding quality!" I guess in the end it's all about the bottom line. More piss-poor quality puppies still means more money for the AKC.