Reading for Profit

8/9/2019

16 Comments

by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

How did you earn money as a kid? Maybe you babysat, mowed lawns, or did chores around the house. Did you ever get paid to read? Probably not, but now one creative company rewards kids for reading while they get their haircut.

A haircut is a uniquely intimate interpersonal experience for someone of any age. You sit still for a half hour or more, while a person you may not know very well stands inches away, repeatedly handling your most important body part—your head.

Beyond the physical experience, there’s the social dimension of a haircut. Sitting so close to someone for that amount of time, it’s awkward not to talk. However, even adults can find such chitchat challenging; for kids, it may seem impossible. Most children don’t have advanced conversational skills, and they’re naturally short on life experience and knowledge of topics that tend to be good conversation starters, e.g., current events, food, sports, etc.

Those aren’t the reasons, though, that City Cuts, a barbershop located in Kutztown, PA, pays children to read while they receive haircuts. More comfortable kids may be a side benefit, but it wasn’t the main thing that motivated shop founder and owner Jon Escueta to start the ‘novel’ program.

Escueta immigrated from the Philippines when he was just eight years old. Not knowing any English proved to be a formidable social barrier, but a caring teacher helped him overcome the obstacle by using a book about basketball to encourage him to read.

Escueta, now 32, employs the same strategy in his barbershop, where kids can read aloud a book of their choice to the person cutting their hair, and anyone else within earshot. For every book kids read, they receive $3.

The benefits of reading are well known: greater knowledge, mental stimulation, vocabulary expansion, memory improvement, stronger analytical skills, improved concentration, etc. However, all of those advantages can accrue to readers who sit alone and read silently to themselves. Why, then, doesn’t City Cuts simply let kids borrow books to take home and read on their own time?

The reason is there are also significant benefits that can come from reading aloud in front of others. On her website Tutoring Academy, Sharee Chapman identifies some of those positive outcomes, for instance:
- Improved diction and expression
- Enhanced visual memory and the ability to see images in one’s mind
- Better spelling from sounding out words, detecting syllables, and visually connecting words to sounds
- Great practice for public speaking

It’s the last benefit that aligns most closely with Escueta’s intent and reflects the way his program seems to be working. For example, 8-year-old Connor, whose mother travels 20 minutes to take her two children to the shop, says that reading aloud has really helped him in the classroom. He explains: "It [the reading time] made me speak up," so that "I am always raising my hand to get picked."

However, as much as Escueta may want to help, City Cuts isn’t a charity. Without seeing its financial statements, one can imagine that a small barbershop, located in east-central Pennsylvania, doesn’t make money hand-over-fist. So, how can it afford to pay both its barbers and its customers?

Fortunately, the program has gained considerable community buy-in. City Cut’s customers and others donate both the books for the young readers and the funds to compensate them. Also, this past January, Escueta started a GoFundMe account that has raised over $6,100 toward its $7,000 goal.

So, the reading program seems sustainable, but shouldn’t we be cautious about such corporate influence in children’s lives?

From banks to bakeries, all kinds of businesses want to make inroads with kids, not because children have much money to spend now but because they are the next generation of consumers. Some big players have even used reading programs as a way of reaching kids.

For instance, Pizza Hut’s BOOK IT program has been rewarding kids for reading for the past three decades and still seems to be going strong. Children enrolled in the program receive a certificate for a free one-topping Personal Pan Pizza, a prize, and a sticker for every month they reach their reading goal.

Given that the program is “free,” those rewards for reading seem like a great deal. Of course, most parents don’t drop their kid off at Pizza Hut and say, “Go in and eat your free Pizza,” i.e., one certificate likely draws the entire family into the restaurant for food and drink, resulting in a profitable tab for the company.

Pizza Hut also gains brand exposure in the ‘sacred’ learning environments of schools from BOOK IT-related items on which its logo appears such as posters, flyers, and the award certificates. All that said, it’s reasonably to wonder if the benefits the company receives far outweigh the few pizzas the children earn.

Then again, BOOK IT does get kids to read. Maybe that outcome justifies the corporate influence, but there’s also the risk that kids’ interest in books may begin and end with free food. In other words, the extrinsic, physiological reward of pizza may overshadow the more important intrinsic, intellectual reasons for reading, mentioned above.

City Cut’s reading program, on the other hand, appears to avoid these risks. Unlike pizzas, haircuts are necessities that children typically don’t crave and upon which families rarely overindulge. Similarly, unlike problems inherent with connecting reading to eating, it’s hard to imagine an association between reading and haircuts that could negatively affect kids later in life.

In terms of corporate collateral, it would be naïve to think that City Cuts doesn’t profit from its reading program. Like the mother who drives 20 minutes to take her children to the shop, there are probably other parents who go out of their way to involve their kids in City Cuts’ reading program.

However, whatever increased business City Cuts gains, it deserves. By encouraging children to read aloud, Escueta and his colleagues offer young customers a uniquely valuable, developmental experience while extracting very reasonable value in return.

It’s fine for companies to profit from their philanthropic efforts, provided that the community/company benefits are balanced. City Cut’s reading program seems to strike that right ratio, which makes inspiring confidence in young customers “Mindful Marketing.”

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16 Comments

Will Young IV

9/8/2019 08:28:51 pm

First off, I would just like to say that this is another great article written by Dr. Hagenbuch. His analysis on various topics are quite intriguing and make for a good, quick read. Now diving into the article itself, I 100% agree that this is mindful marketing. In today's society, technology has, in many ways, taken the place of in-person social interaction. My generation definitely suffers from this but the generation/generations coming after me are the ones who are truly suffering. This generation spends so much time infatuated with the demands of social media, that it is eroding their ability to further their communication skills severely. Nevertheless, in a society were face to face interaction is declining, one place that it still seems to thrive in is in the barbershop. I've been to a plethora of barbershops in various states, and if there’s one thing that remains consistent, it is the communication. Barbers talking to their clients and clients talking to other clients across the shop on topics ranging from sports to politics to anything you can think of. This is what makes barbershops so special. In connection with this article, the idea of City Cuts incorporating books in the open and inviting atmosphere of a barbershop to enhance public speaking and analytical skills is incredible. It allows kids to take 30 min out of their day not only better their physical appearance but better their social skills, and increase their knowledge as well. And in addition to all the other benefits of this idea, they offer $3 per book as an incentive to draw the youth? I’d say mindful marketing at its finest.

Brooks Robinson

9/12/2019 09:48:28 pm

I definitely found this article and its topic interesting. I agree that paying or rewarding children to read out or alone as a good thing. Barbershops that I've been to usually are quite the social environment and reading out loud may not be needed. In most cases, people who go to barbershops are loyal clients and already know their barber fairly well after a couple visits. For this instance, it is a kid going to the barber. A book would be able to break any silence and cause conversation. I also find the other ways companies reward kids reading books (such as Pizza Hut) is just as good of a for a company to use mindful marketing.

Cole Reed

9/12/2019 11:11:09 pm

This is a well-written article about a deserving cause. I would agree that this is Mindful Marketing. Escueta is clearly creating stakeholder value as parents drive their children 20 minutes to get their haircut at his barbershop. He is also promoting the societal value of literacy. Children outside of school (myself included) are often apprehensive to read outside of the classroom. This program incentivizes children to read and it makes the haircut experience more fun. Barbershops are special environments. Some would even consider the barbershop "sacred ground" (hence the number of movies titled 'Barbershop'). The barbershop experience should be unique and enjoyable. Like any business, why would you consume the services at a barbershop that is unenjoyable? Escueta and his barbershop, City Cuts, is creating an environment like no other barbershop. He is not only helping children build a valuable life skill, but he is building life-long customers. These kids are receiving quality haircuts and are building confidence in reading, speaking, and general expression and relationship skills. The way the Kutztown community has responded is an obvious statement to the impact City Cuts is having on the children in the community. This is not a corporate scam or an exploitation of good will. This is a barbershop taking care of young kids and teaching them how to read. City Cuts should be an example to other barbershops that want to have a positive impact on their community while building life long, educated customers.

Courtney Hampton

9/13/2019 11:00:08 am

This article brings up a very interesting point about what should be considered mindful and what should be considered predatory, especially when marketing to children. Most people do not link haircuts and child development, but that is why this program has gained so much support from donors and customers. I personally view City Cuts’ marketing as mindful because their program is taking an awkward and mundane thing, like getting your haircut, and turning it into an educational experience. Getting a dollar or so from the tooth fairy when you are little is exciting, so giving kids $3 per book is a great motivator. Reading aloud to a stranger or two can definitely help a kid break out of their shell and have more confidence with public speaking and social interactions in the future. It is sometimes hard to tell if people give back for the sake of the cause or for the sake of their business. However, I think that City Cuts is giving more to the community than they are receiving from their efforts, so they are not exploiting the “promotion”. I know first-hand from living in Kutztown, PA, that it is a small town with a few barber shops and salons nearby. It is also hard to differentiate yourself or create unique value in the haircutting business—usually this is accomplished by having lower prices or delivering superior quality. This program is obviously making City Cuts stand out from the rest because they are offering more value to customers, especially those with young children. This seems to be completely on the up-and-up. Pizza Hut’s BOOK IT program seems to be more of a ploy to appear like a sincere belief, which is pushing them towards helping advance children and reading, but in the end they are more concerned with getting more people in the door. However, City Cuts seems to actually care about the children’s reading abilities and the impact that reading with have on their vocabulary, confidence, and other factors. City Cuts is not a big conglomerate trying to create some goodwill, but instead, it seems that they are just trying to use their business to better the community.

Trust Milyango

9/13/2019 11:38:33 am

This is such a great and informative article that also brings up a lot of questions. I like the idea that City Cut has. I think that the world is becoming more and more technologically centered. Kids these days are distracted by new tech inventions and games. This is a great way to grasp their attention and encourage them to read. Growing up, I always made money by doing different chores around the house. You can see the generational shift of ideas on how people encourage kids to do things that will increase some sort of moral value. I also like the idea of the children reading out loud. As someone who has English as their second language, I always worry whether I am pronouncing certain words correctly. Reading out loud has always helped me feel more confident with how I pronounce things. In addition to the valuable experience that the children have when coming to this barbershop, they also build their confidence in public speaking and reading.

Kyra Bond

9/25/2019 10:22:27 am

This article was interesting to me because I had heard about Jon Escueta and his shop before, but did not know all of the details. I was able to learn something knew from this post which is something I appreciate. One of the new aspects of the story I learned was that the children were actually getting paid to read the books. From what I understood, he was just encouraging the children to read and was using the time he had with them in the chair to do something that would help them.
I completely agree with the fact that this story falls under the mindful category of mindful marketing because of the positives that arise from it. When I compare the marketing that City Cuts was using to the marketing Pizza Hut was using, I believe City Cuts does a better job even though Pizza Hut has been doing it for various decades. Yes, it has been successful for the pizza company, but I think the way Escueta and his business approaches it is better.
I say this because it promotes education and spreads a lot more positivity in the world, rather than just a pizza dinner with your family. I also believe it is great mindful marketing because City Cuts involves the community and promotes his business in that way. He also takes advantage of the convivence that it gives parents. Their children need to get a haircut and if they go to City Cuts, their children can become richer in their intelligence and in their money. This barber shop has an advantage and doesn’t have as many threats because it does something unique and different. Escueta fills various wants and needs of parents and children in just a few minutes at his shop. When thinking about whether or not his marketing strategy to get more people to come to shop is ethical, we can see that he most likely answered yes to all of the tests on the ethical decision making metric.

Amber Miller

9/25/2019 08:13:27 pm

This article was very interesting to me and was something that I was unaware of. City Cuts has the right idea by investing into the next generation. I also liked that the sole purpose of this idea was created by an experience that Escueta had been a part of. The uncomfortable situation that he was in allowed him to really put forth effort in order to make other children not feel the way he did. By implementing the idea of paying children to read aloud, not only are the kids benefitting greatly but their business is also profiting due to more people wanting to get involved in the process. I would consider this as mindful marketing because it holds the societal value of children and the next generation being important. Giving kids the opportunity to expand their knowledge and develop better comprehension, reading, and speaking skills will benefit them even more in the long run.
It also creates more value in the company. Even though City Cuts is providing books for the kids and giving them a cash reward for reading, they are still making a profit. This is due to the amount of people wanting to be involved and give back to the community. They are able to raise money and others have donated books to City Cuts for the children to read. This is getting more people in the door as well as getting their name out there.
People often go to certain stores, barbers, restaurants, etc. because of the atmosphere and now that City Cuts has associated themselves with helping children, it will attract more consumers to their company.

Reed Wagner

9/25/2019 10:13:21 pm

I really enjoyed this article and I think that what City Cuts is doing is a great idea. More kids need to be reading more and playing video games less. If kids start enjoying reading, they might start to be more engaged in reading. They took their idea and made it a win win. They are able to pay the kids that read them the books but they also are making profit by having the books being donated along with raising money for their idea. I do see a difference between Pizza Hut and City Cuts promotions. I believe Pizza Hut is just doing their promotion to just bring in more customers so they can make more profit. While City Cuts actually is showing care about the next generation by having the kids read for money instead of sitting there in silence with a stranger they don't know for 30 minutes or more. By doing this though, they are giving out a positive vibe to customers and people hearing about what they are doing. I'd say over all that what city cuts has been doing is a very mindful marketing.

Caleb Smith

9/26/2019 12:22:21 am

I definitely enjoyed reading this article and find what City Cuts is doing to be highly commendable. In today’s world, it is very evident that spending time diving into a book reading, learning, and helping brain development in adolescents is not a common normality. Children spend a large majority of their day spent with there eyes glued to a technological screen, whether that be a phone, computer, television, or video game console. There are so many more distractions in the world that cause children to stray from reading a good book. Take libraries for example. Most are going out of style and business because the younger generations, and even the older, so not partake in this activity anymore. What City Cuts is doing is promoting the well-being and mental development of children in quite a selfless way. They do not receive a large profit from repeating customers in short intervals. The owner sounds like he created this program to help society. I would definitely rate this marketing as mindful. He is encouraging children to partake in reading while still helping promote his business. He is not taking advantage of the customer but yet does not put his company at huge risk of financial loss. That doesn’t even take into consideration the extra benefit of reading aloud. Like Dr. Hagenbuch highlighted, reading the books aloud help to assist the children in developing public speaking abilities. At the same time, it engages children in communication with other people, another trait that is being lost in today’s youth. Instead of face to face interaction, kids are opting to communicating through screens. By having the kids read aloud, City Cuts is encouraging kids to interact with people around them. This skill will be extremely beneficial for the development of the child and for future endeavors. All in all, I City Cuts is running a great program.

Sharlee Nye

9/26/2019 12:04:36 pm

This article is very interesting to me. In the modern day most kids are rewarded or encouraged through a promise of a gift like a new phone or video game which ultimately does not benefit anyone except for the organization that the game or device is purchased from. When I was younger things such as a phone or video game were not as available to me. I related in a way to this article for reading was and still is a hobby of mine and greatly benefits me. I started reading as young child and encouraging young kids to read more will, from my experience, help them academically.
In this case when kids are rewarded for reading may encourage them even more. And it also great benefits other companies in the process. Allowing the customer to gain a sense of trust for the person cutting their hair, in this case, will also gain the business customer loyalty and continued business from this customer in the future. I think that what this company is doing is very beneficial in every aspect. The customer benefits over time from encouraged reading at young age, the company gains customer loyalty while giving a service that allows them to possibly gain profit. By also involving a reward program that gives the kids a personal pizza coupon for example can also bring more profit for the other company that coupon is to be used at.

LaVonne Alston

9/26/2019 09:55:11 pm

The title Reading for Profit caught my eye because those aren't words you typically see together. Not only that, but I happen to love reading so this intrigued me. Reading through the article, I felt a little awed and inspired and it caused me to analyze myself a little more. The owner of this barbershop knew what it was like to not know how to express himself and he didn't want other kids his age to go through that as well so he started this program. That to me is an act of selflessness. He started a business to make profits, but this program to help make change. The analyzing part came in when the article talked about the benefits of reading. As an avid reader myself, I wondered if maybe I had any of those benefits. Turns out I have everything except improved focus, but oh well. Reading has such a great impact, and reading aloud just adds to that. Escueta really provided the necessary tools to help children improve their vocabulary and diction. Their public speaking skills will noticeably improve and with comes more confidence. For me this would definitely rate Mindful on the Mindful Matrix because not only is he helping children, which I'm sure is his end goal, but he's also bringing awareness to his barbershop which will generate more customers and overall more revenue.

Rachel

10/30/2019 04:01:15 pm

This article was really eye opening in terms of how a company can pursue community growth while growing there business. Many businesses structure their marketing efforts around simply gaining further profits. City Cuts chose to instead incorporate form of marketing that would be mutually beneficial. This article gave me hope that there is a way to do business ethically. That there are people that care about the community more than they care about a certain number on a paycheck. It is interesting to see that a business can be success in terms of profit and in terms of community advancement. Theses two things are not mutually exclusive, and this article is evidence of that.

Samuel Kim

11/5/2019 09:50:45 pm

This post was interesting as it really warned of the dangers of motivating reading with a food reward. However, I do not see that as a danger but as an asset. Pizza Hut, for example, may only seem to benefit from this by associating reading with free food but when these kids grow up, the chances that they too will do the same for their kid seem to be quite high. I don't know for sure because it was started so recently. And even if the kids were only motivated to read for rewards, doesn't that mean that they would never have read in the first place without them? It seems better to get them to read than not at all.

Gunnar Lopez

11/6/2019 01:12:53 am

I love this practice, as there are positive outcomes for people and the business with few if any negative outcomes. Children are supported in education while the store gains positive PR and more business. This is a form of a symbiotic relations in business and society that any could support and should support.

Cy J Bryan

11/6/2019 02:25:13 am

I really appreciated the article on City Cut. It was fascinating to learn how people are valuing the knowledge of kids over profit, or in addition to profit. By getting kids to read for a free haircut and some money on the side City Cut is able to encourage the growth of the child along with the growth of their profit and community investments. City Cut has been able to create an environment that is beneficial for all participants.

Madison Colon

2/23/2021 12:53:13 pm

I found this article very interesting because I also do not like to read. When I was growing up reading was always a difficult subject for me. I do believe incentives are good as an initial start to step outside your comfort zone. In physical education they teach not to us food as a reward because it begins to corrupts peoples perception of the purpose of food which is to fuel the body. In the same way, these student might begin to rely on the reward of money to be motived to help themselves. I do believe pizza hut had the right intention but when it comes to self reliance on reading they've missed the mark.

Reading for Profit

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