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Article Presentation for Audience Research on the New York Times Case Study involving Big D Custom Screen Printing and their switch to client targeting strategy.

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Article Presentation

  1. 1. A New York Times CaseStudy Review by: Eli Williamson
  2. 2.  Big D Custom Screen Printing  T-shirt Printing  Austin, Texas Darren Robbins (co-founder)  Dispute with business partner about pursuing smaller orders instead of seeking large accounts exclusively Price Rates  $5 a tee for orders of 40-499 shirts  $3.50 a tee for orders of 1000+ shirts
  3. 3.  New York Times formally asked Darren’s question:  “Can chasing small customers lead to larger profits?” Darren Robbins  Actually set out to test this approach with his company and measured the results by annual financial reports Darren’s Business Partner  Tested pursuing large accounts in hopes of larger profit margins in the long run
  4. 4.  Shifting the target consumer and lowering price rates  Public pricing (transparent pricing)  Could this cause a price war? – no, just nasty emails.  Annual Sales Reports  2008 - Year One: $325,000 (breaking even)  2009 - Year Two: $675,000 (more than double year one)  2010 - Year Three: $900,000 (nearly triple year one) Overall take-away:  Chasing small customers can lead to larger profits  “Small-order customers account for roughly 60 percent of our return business. Just as important — if not more — their positive word-of-mouth accounts for 75 percent of our new customers, including some of our largest.” – Darren Robbins
  5. 5.  Limiting your targeted consumer to only large clients is a poor decision in attempting to increase revenue  I can see how this may work for some larger, more established businesses but not for small businesses and especially not start-ups who don’t have a clientele yet Objections  Inefficiencies in targeting small-order clients  More wasted product (color correction and test prints) Study Weaknesses  Just examines just one business – a small start-up at that  One location (initially), inexperienced owners, shedding a business partner after the first year (one less salary)  Are the results unique to just the screen printing industry?
  6. 6.  Darren Robbins embarked on his business experiment with clear goals as well as an accurate and paced method of measuring his new approach’s success  Goal: To become profitable by catering to small printing orders  Accurate & Paced Measurements: Annual Sales Totals Yes it is an article, but it is also a case study  The New York Times approached the formatting of the story as if it were an experiment  Segmenting elements such as: the challenge, the background, the options, the decision, and the results  Received insight from readers and other professionals to differentiate opinions on whether Robbins’s decision was right  The New York Times released a follow up article a week after the original was published  Contained results with concrete numbers in the annual sales reports that proved the correlation between small-order focus and increased profitability in the screen printing industry.
  7. 7.  http://www.nytimes.com/2011/04/28/business/smallbusiness/28sbiz.html?ref=casestudies http://boss.blogs.nytimes.com/2011/05/03/was-big-d-wise-to-pursue-small-customers/

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