Have you noticed that speedy delivery is a big deal these
days? Labor Day is next Monday. The U.S. Post Office will be closed so mail
will not be delivered on the federal holiday.
Of course, that will not stop Amazon from making deliveries. Retailers
will be open for business on Labor Day and items will continue to be delivered
to your doorstep despite the holiday. This seems a bit odd given the history
behind this particular federal holiday.
Back in 1893, the railroad was a major component of
commerce. If you were in business, you were dependent upon the trains running
regularly and on time. Just how dependent was the economy on railroads? They
were the main source of moving products to and from manufacturing facilities
and warehouses, much like we use trucking today. Railroads were also the best
way to travel long distances, much like we use the airlines today. But they
were also crucial to communication because the railroad moved the mail from one
location to the other. So if you were to roll all trucking companies, all the
airlines, all of your package delivery companies, and all communication
companies into one huge conglomerate, you would get a sense of how big the
railroad industry was in the late 19th century.
In 1893, the economy started to skid and the United States
went through a financial downturn known as the Panic of 1893. The Pullman
Palace Car Company was a major manufacturer of train cars. They employed
massive amounts of workers in Chicago -
so many that they built apartment cities in poor parts of Chicago and
rented these to their employees. When the Panic of 1893 hit the economy hard,
the management of Pullman decided to reduce wages, but they did not reduce the
rent their employees paid back to the company. This led to a strike of Pullman
workers. Soon the strike spread to other
railroad workers who were part of the American Railway Union led by activist Eugene Debs. 250,000 railway workers
refused to allow any train with a Pullman car to travel on the rails. This
brought commerce – and the mail – to a halt.
In
stepped President Grover Cleveland, who ordered the workers back to the job.
Since the striking workers had tampered with mail delivery, he signed an
executive order threatening to jail anyone who kept the trains idling on the
tracks. They refused. The railroads hired non-union workers to run the trains.
This led to violence between members of the union and the strike busters.
President Cleveland sent in U.S. Marshals and the Army to put down the
violence. He had Eugene Debs put in jail for refusing to obey a federal
injunction. This action had a polarizing impact on the general public. Many
felt the violence of the striking railway workers was too much. Others sided with
the union and felt that the feds had been too aggressive in putting down the
strike. The strike continued until the summer of 1894.
Many
felt there needed to be some form of contrition to begin the healing process
between the two sides. There was a lot of pressure put on Washington to do
something to help reconcile the two sides. Congress hastily put together a bill
declaring the first Monday of September to be Labor Day, a nationally observed
holiday that gave workers a day off and where all federal offices would be
closed, including, ironically, the U.S. Postal Service! So the executive order
that denounced the striking railway workers for stopping the mail was settled
with a day off without mail delivery!
That
leads us to today. In 1893, the main way to get information out was by mail and
the primary way to ship products was by rail. The methods of communication and
delivery have changed, but the need has not. What does that look like in 2020? Nowadays
consumers expect products to be available immediately and delivery to happen
overnight or sooner. The process takes place over the internet and the delivery
is to your doorstep. People expect transactions to be easy and delivery to be
fast.
This
leads us to marketing. Marketing is charged with finding out what consumers
want and promoting it so they will buy from you. Through the years, two main
marketing themes come up time and again: Promote low prices (think Walmart) or
superior quality (think Nordstrom). However, there is a new marketing theme
that has tipped the scales in marketing – how fast can you deliver it? It is
not that price points are not important any longer (they still are) or that
producing a quality product has gone out of vogue (it has not – that is why
return policies are so important on e-commerce sites), but the new tipping
point is delivery and you need to build that into your marketing message.
How
are you changing the way you communicate your ease of placing an order with
your company? How are you marketing fast delivery? Smart marketing is taking
this into account and using it as a way to make a distinction between you and
your competition. As Labor Day rolls around, when you won’t get your mail, but
you may get a delivery, remember: easy and fast are great marketing campaign
slogans in 2020.