So here’s a fun one. Wal-Mart just announced that they will
price-match competitor’s “Black Friday” ads a week before Thanksgiving
online. You’re move Target, Best Buy et
al.
But something to consider…
Retail is a race to the bottom. First it was who could open the earliest on
Friday morning (6am, 4am, midnight- now even the day before). Then it was who’s “doorbuster” was the
best. Now that fight doesn’t even matter
much anymore. Because this is all just
commodity competition. Everyone has a
55” television- who can sell it lowest first to capture the dollars, right?
At some point, someone in the retail
space is going to have to figure out how to get out of this race to the
bottom. Because even if you win, you
lose.
I for one won’t go near Black Friday
shopping. It’s a miserable
experience. I’d rather pay more than
fight the insanity. So here’s a challenge
for you retailers- how could you change the paradigm to engage more
shoppers? Instead of fighting so hard
for people who are only driven by paying the absolute minimum, why not find a
way to grow the market by enticing the high-end? I for one, would probably pay for admission
(even just early admission) to a store if I knew what the prices would be and
could get a better experience by limiting the attendance for a bit. Or if price really is the driver- what about
pre-orders and pick ups? You could
better control your margins, still scale your shipping to stores, and have a
more accurate inventory. I’m no expert,
but these are just ideas.
The point is this- keep racing to the
bottom and eventually you’ll get there.
The prices can only go so low.
The store can only be open so many hours. And we’re quickly getting there. This year’s prices don’t seem that
great. Everyone’s opening on Thursday
afternoon. We’re on the threshold of the
bottom- where everyone is open 24 hours and the prices are all equally
low. And then what? Hope to get your share of the spending? Doesn’t sound like a great strategy.
Might be time to consider your work
too. Are you in a constant game of “one-upping”
the competition? Sounds like a race to
the bottom. And in that race, if you
win, you lose. So ask yourself- what are
you going to do differently? How are you
going to get a premium for your product or service?
Rather than try to win a race to the
bottom, why not play a different game?
