Capital vs. Marketing

Marketing expense begins where capital expenses end.

You can buy an office chair at a Big Box store for $50. It will do the job.

You could buy an office chair with style and greater functionality for $500. It will probably do the job better.

The $500 chair will also give signals about how you view form, function, comfort, attention to detail, and so on.

The first $50 could be viewed as a capital expense. You needed a chair.

The next $450 could be viewed as a marketing expense. You intentionally spent extra to buy a chair that had better form, function, and so on.

A visitor can then expect that you care about form, function, and so on, and not just using the easiest, cheapest option.

What does your chair say about you?

Peter

Feel free to reply