It seems like an age-old business saying: You have to spend money to make money. In some cases it makes sense, although I’m sure we can come up with examples of entrepreneurs spending no resources except sweat equity and finding a way to make legitimate money. The better question to ask is how much of a return should I demand from the money I spend?
Case in point, one of my clients is a beauty salon that wisely promotes that they are “green.” Being an environmentally conscious business certainly can be a valuable brand association. From a branding perspective it may make sense to take advantage of a paperless loyalty program or paperless credit card processing using a tablet. On the surface this seems to make good branding sense.
However, this may only be the case if the salon is going to use these tools to properly promote these green aspects to bring in revenue over the increased costs. So, for example, if the digital loyalty program and the credit-card swipers for two people are going to cost an extra $100 a month, the salon needs to be diligent in promoting this additional “green” aspect to bring in at least $200 in additional monthly revenue to make it a worthwhile investment. The days of “build it and they will come” have long been over.