Even Dead Brands Are Valuable

By John Malmo

http://stream.publicbroadcasting.net/production/mp3/wkno/local-wkno-899932.mp3

2010-05-05: Even Dead Brands Are Valuable, by John Malmo.

Memphis, TN – Remember CompUSA? Circuit City? Of course. There were stores right here in River City. And if you though about them lately, you probably thought they were dead. And they are, or, they were. But along came Systemax, an internet conglomerate, that paid forty four million dollars to buy both brands. Not stores. Not inventory. Just brands. $30 million for the CompUSA brand and $14 million for Circuit City.

Yes, they got customer e-mail lists and rights to some good real estate leases. But if you ever needed proof of the raw value of a brand name, this is it. What is Systemax doing with the brands? That's another story.

Everyone agrees that brands that are alive and well - even brands that aren't so well - can have a lot of value. But dead brands? $44 million for a couple of failed brands?

It ought to convince you that whatever you have to do affordably to build your brand, you should do it. Get your name as big as you can on company vehicles. If employees meet the public, put employees in uniforms. Even in conversation, always say your brand name. Forget pronouns. Never say, "we." Say Smith Plumbing this and Smith Plumbing that.

The higher the brand awareness, the higher the brand value.

John Malmo is a Memphis marketing consultant with more than fifty years experience. He is former chairman of Archer Malmo Advertising and specializes today in helping small businesses grow. To reach Mr. Malmo - or to buy a copy of his book When on the Mountain There is no Tiger, Monkey Is King- go to http://www.johnmalmo.com.