Losing At King Of The Hill
Equal Access: Three "Outs" and Your "In"
Have you ever wondered what to do with $3,012 of Opportunity
Calling Credits (OCCs) from AT&T. That's S/W*A*T's dilemma
having recently earned them using AT&T's service in lieu of
reduced rates which Equal Access Carriers offer.
Figuring that it would be a shame to throw away this
opportunity, I eagerly opened the AT&T Opportunity Catalog to
redeem my credits... as well as my sanity after paying the
bill responsible for the credits.
To my dispair, here's what A-D-D-I-T-I-O-N-A-L dollars
S/W*A*T will have to spend in order to realize our $3,012
First, we can spend $11,044 on Federal Express so that we can
apply $3.00 on each overnight door-to-door delivery. Or we
can rent a local Ryder Truck 201 times and receive a $15.00
rebate on each rental (think how many dump runs and cellars
can be cleaned). Then again, we can subscribe to INC
Magazine for 502 years and save six dollars each year
(there's a gift for future generations). Optionally, we can
consume our credit by purchasing 301 Smithfield Virginia Hams
(S/W*A*T would be the talk of Rte.128 if we gave them for
holiday business gifts. giving. Or we can apply a whopping
$500.00 per AT&T Model 6300 personal computer that we buy and
and be stuck with the remaining bill for the purchase of six
machines.
What Opportunity!!! Or better yet, What Opportunity???
Still, day in and day out, on TV, radio and in print, my eyes
and ears are assulted and insulted by Cliff Robertson,
spokesman for AT&T -- and Advertising Age's Spokesperson for
the Year of 1984. Sometimes in his beige suit and sometimes
not, sometimes with chimes sometimes not, Cliff has been
telling me that its election time with respect to electing
AT&T over all Equal Access Carrier... and that I should vote
for the incumbent, AT&T, because I have it so good..
I don't know what the tab is for this concerted campaign, but
I do know that I wish that this money was being funneled back
to me directly, and not indirectly through my sending 1004
overnight letters via Fed Ex.
And personally, the entire AT&T (t)election campaign has
sicken me to the degree that I have pulled the lever in favor
of the EACs
INCUMBENCY
4
. Y
o
6
A B
Being King of the Hill, like AT&T, is both a powerful
position and vulnerable one. Its easy for Kings to ignore
the covetous challengers, despite seeing them crawl up the
mountain. Somewhat like Nero who fiddled while Rome burned.
Tariff restictions aside, I view AT&T's Opportunity Calling
Credits to be but fiddling around the hard issues which make
the EACs attractive.
For the challengers of such Kings, convential marketing
strategies suggest an oblique position which doesn't fight
the King directly. Unfortunately, that's not possible when
playing King of the Hill where there's but one pinnacle such
as long distance transmission. Consequently it's
fanscinating to watch how directly the EACs are taking the
mountain. They're doing it by the book and numbers.
THREE OUTS
S
A
ˁ灮 This has been no sweat for the
EACs; the King is asleep. If showing up is 80% of
succeeding, then AT&T has already failed 80%. Were it not
for Cliff, it would difficult to tell that AT&T even exists.
偮 While every other EAC has
walked past the "No Soliciting" sign in the entrance of our
building, AT&T ( and yes NET, too) has failed to post an
appearance.
As a result there has been no need for any EAC to outfox,
outguess, or outwit AT&T --- three customary strategies for
taking on the King of the Hill. Consequently, as one who
enjoys a good competitive (t)election campaign, I have found
this one to be a real snoozer. Ironically, AT&T is spending
the money to advertise this (t)election and they are not even
on the ballot, for the EACs consider their real competition
to be other EACs and attempt to outmaneuver them accordingly.
Expected sales production per EAC salesperson... 1 close per
day. There are about 20 EACs. If each EAC has an average of
100 salesperson that's 2,000 closes per day. Quite a ground
swell against the incumbent, AT&T.
Cliff Robertson is a pretty classy guy, but in the absence of
other direct AT&T representation, he's no match for the sales
forces that politely cold call an office building. They're
articulate, knowledgeable and available to serve.
ˁ灮 Professional selling is indeed
serving. Because of its absence, AT&T cannot serve.
Meanwhile, the EACs climb over telephone useage bills, submit
proposals, draw distinction between each others plans and
answer question. And that's only the half of it.
The other half is the services itself. If you ever have seen
an AT&T WATS bill you know that there is absolutely no
breakdown regarding the destination or time of the calls
made. That's because there is no authorization code
security. The EACs have such security and to varying degrees
provide such meaningful management reports. Ironically, in
so doing they allow a customer to retain AT&T's outdated
equipment while still having the advantage of the new
electronic/computer telephones. Telephone equipment
suppliers can't be to happy about this. I guess that it is
safe to say that deregulation has created some interesting
love/hate triangles.
ˁ灮 Here's where the EACs go crazier
than they need to. For once again, the King is actually not
even a part of the bidding. An EAC's main competition is the
EACs down the street. And they all seem compelled to
approach the sale through price. There's a side lesson yet
to be learned by the EACs with respect to this destructive
price chopping; it's that they should never give up more than
they have too. Yet they do.
OUT 'N OUT
T
I
If there is any truth to the Golden Rule, "Do unto
others..." then shortly when the (t)election ballots are
counted, AT&T will find itself more A-L-O-N-E than before
since that's how it left its installed base. And indeed,
more lonely will be the head that wears the crown... the
outcome from being outdone. And that's out and out
outrageous!
