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Marketing Math vs CPAs — why Mktg. Math is more sound

February 14, 2011

Last week we had our budget meeting.  While normally I wear black — since someone usually is murdered at these sessions, I didn’t this time.  Why?  Because we are selling like hot cakes, the buzz is amazing, we are being featured in national magazines — this is going to be the meeting where I get the medal — Sales woman of the year!  Marketing Genius!  PR Wonder!

Not quite.

According to JD’s calculations, we are broke.  Huh?  Not possible.

So while JD breaks out this super elaborate calculator, which looks suspiciously like something I saw in War Games, I break out a Target receipt which I proceed to use the back of.  Ace rolls her eyes as she is witnessing yet again — THE MATH DUEL.

JD starts throwing out all these math terms to try and confuse us — all I hear is the last statement, “and so we have x dollars left” (the x was actually a number somewhere between $1M and 0 — but apparently is termed “broke” in CPA standards)

I take my receipt, smooth it out and proceed to write.

Distribution in 4 outlets+ Outfitting 3 teams + Min. 10 country club fashion shows +  75-100 people attending our trunk show next week + In SHAPE MAGAZINE + LUCKY magazine has expressed interest  + working on coverage in GOLF DIGEST  (remember our friend Marty Hackel?) and TENNIS mag  =

we are millionaires

JD looks at me like I’m crazy.

“What?” I say “This is the new math they are teaching the kids.”

JD responds, “You mean the same one that caused the housing collapse?”

We all chuckle.  And then I, with a deadpan expression, say, “Yes.”

Now some of you purists out there will say JD’s math is more sound.  I disagree.  If it were true, every new biz would fail in the first year.  At some point, you have to bet on ourselves, and know that when we launch next week the money will start pouring in.

And I’m pretty sure when we start meeting with those angel investors, JD will begin to embrace the marketing math.  It reflects not what we have, but what we are worth.

I know many of you are curious how this debate will end.  No worries.  JD is in Vegas and last i heard she’s up a few $1K.  I think that should take us out of the “broke” category for now.

2011 Copyright Smashing LLC 2011 Copyright



2 Comments leave one →
  1. Pencils permalink
    February 14, 2011 9:36 pm

    You’re both right.

    In a free market, something is worth what a willing buyer will pay a willing seller.

    In accounting, something is worth what it can be sold for (varies) against what it cost to make (varies) at the slice of time captured.


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