Disappointment is never easy. You get your hopes up for something, only to have them crushed by the reality of life (no, that’s not me pictured above, though I did feel that way after the niners lost two weeks ago). It doesn’t matter if you’re a professional athlete, a professional marketer, or anything else — dealing with disappointment is tough. Having just witnessed my team’s bitter rival win the Super Bowl (something we couldn’t accomplish the previous year) certainly is disappointing. I’m happy for the city of Seattle, since this is their first title since the Sonics in 1979, but that doesn’t trump my overall bitterness with the situation.
Everyone is confronted with disappointment at some point in their life, so what’s the best way to deal with it? To me, it’s pretty simple — get back to work and learn from your mistakes. What mistakes were made that led to the undesirable result? How can you avoid mistakes like that in the future? What can you take away from the situation to improve your results in the future? We’ve all heard the old sports adage that “there is no off-season”. Super Bowl champions may tell you they’re going to Disneyland, but in reality the great ones go back to work and try to get better.
One of my favorite companies, Moz, had to deal with a big disappointment in 2013. They went through the difficult launch of a new product, Moz Analytics, which was a contributing factor in their $5.7M EBITDA loss during the year. No one at the company planned for this, nor were they very happy about it, but there’s no sense in them complaining. In fact, one of their key investors, Brad Feld, commended them for their efforts. All that’s left is to analyze what went wrong, learn from the mistakes made, and prevent them from ever happening again.
“Tough times build character”
“It’s not about how many times we get knocked down, but how many times we get back up”
There are a thousand clichés designed to make us feel better when we’re upset. All I can tell you is when you suffer a personal setback, don’t roll over and play dead. Dust yourself off and get back to work; it’s the only way to redeem yourself.
Generally speaking, a gross imbalance between supply and demand means something is very wrong. Either no one wants your product while you hold tons of inventory, or the product is flying off the shelves faster than you can produce it. But can an imbalance be a good thing? Under the right circumstances, I say yes.
Russian River Brewing Company in Santa Rosa, California brews two beers which are considered by many to be among to best in the world. The first beer I’ll mention, available year-round, is called Pliny the Elder. The beer is named after a philosopher from the first century AD who is believed to have coined the botanical name for hops, humulus lupulus. This double IPA is one of the smoothest 8.0% beers on the market today, so why don’t more people know about it? The answer is simple: limited distribution. You can occasionally find a market with a bottle or a bar with a keg of PtE, but consumers are often limited to just one beer.
Their other, more popular beer is called Pliny the Younger, named after the Elder’s nephew who he adopted as his son. PtY is a triple IPA which tops out at around 10.25% ABV and it happens to be one of the most sought after beers in the world because it’s only available two weeks out of the year. A few select bars get a keg or two, but the main way to get your hands on some is to head up to the brewpub in Santa Rosa, where lines have been known to be around 8 hours long. RRBC claims they only sell PtY for two weeks because of the time, cost and space it consumes in the brewing process, but I know better. They have mastered the imbalance between supply and demand.
The brewery intentionally limits the distribution of Pliny the Elder to keep demand high. If you want a glass of Pliny the Younger (this beer isn’t bottled, so you can only get it on tap) you have two weeks in February to plan a vacation to Santa Rosa or get lucky with your local pub. Many might think that limiting distribution or production is a crazy move, but I think it’s brilliant. A product that is hard to find often develops a cult following. Those who are able to get their hands on it join a club which gives membership to a select few. Of course, this is no foregone conclusion. This strategy will fail if the product doesn’t meet the standards of the discerning customer. RRBC doesn’t have that problem. They sell a superior product in a limited fashion and have been able to reap the benefits — keeping costs low while selling out of nearing every unit produced. They’ve created the perfect imbalance between supply and demand.