Wednesday, February 29, 2012

Sometimes a deal ain't a deal.

I was talking to people at the writer's group about stores, and how appearances can be deceiving and how sometimes the fact that a store looks prosperous can actually mean the opposite. And vice versa.

People are easily fooled by outward appearances. I'm the same way, I'm sure, about things I know nothing about.

How can the appearance of prosperity mean the opposite? Well, the amount of money a person is willing to spend on appearance is not predicated on how much money they actually make. So sometimes it means they have the extra revenue, but sometimes it means they are spending money they don't have. If it's the latter, then it just puts them further behind.

The article in the Bulletin this morning about "Time Well Spent" was interesting. It's one of my favorite subjects. How often I see people walk away from an item they want because it's full retail -- thinking they'll get it cheaper elsewhere.

In my mind, even if they do eventually get the item for half price, the amount of time and energy they spent getting the savings is wiped out, more often than not. Not to mention, in my store I often carry the full priced item FOR THE VERY REASON that I can't find it cheaper, and the customer is also less likely to find it cheaper.

High demand used books sell very quickly, and more often than not, my store won't have it in stock. What's more, most other stores won't have it in stock. But most people just won't believe that and will go in a fruitless, frustrating search. I call it "instant karma." So add that to the time and energy level, and you're probably spending even more.

The article splits consumers into "satisficers" and "maximizers."

Satisficers "...make a decision as soon as they find what fits the bill..."

Maximizers "...consider all options to make a choice."

"Those studies say "satisficers" are happier.

Getting back to my original point, about appearances being deceiving, there is this:

"A stripped down, warehouse look, on the other hand, now communicates to shoppers that they're getting deals. 'everything about it speaks to volume and low price...'"

I embarrassed Linda the first time we went to Costco because I couldn't keep from scoffing at everything. Sometimes I feel like an alien, because something seems really clear to me and seems to fool everyone else.

It's all marketing, those concrete floors and high ceilings and echoes and cold temps and all the other bullshit. Over the life of a building like that, a few comfortable amenities would be a tiny, tiny fraction of the cost.

The savings are in the volume, and the fact that they make just as much per S.K.U. with a lower margin by making you buy bigger containers.

But it feels like a barn, so it must be cheap.

3 comments:

RDC said...

Of course if someone doesn't find it else where did they really need it in the first place.

Isn't really needs verse wants and to put it simply there is nothing in your store that fits the needs category. It is all about wants. When it comes to wants, it is really a metter about what someone is willing to pay for something. If they walk away with the view that they might find it cheaper, they might or they might not. If they don't they will just not buy it. Saves them money.

After all it is not a need. They won't starve if they don't find it. They won't freeze in the cold if they don't find it. They won't die from lack of medical treatment if they don't find it.

The bottom line is the price is not what they are willing to pay.

Duncan McGeary said...

Probably. Then they don't "want" it very much.

Anonymous said...

Shopping for a deal is an act in itself, I liken it to the popularity of a group of yuppies snorting coke in the 1978, or a rolling and joint and passing in the 1960's. It's not so much the result as it is the process.

Some truly 'enjoy shopping' looking around for the best deal, ... and sadly cruising the internet will NOT always find you the best deal, because most software on the net tracks you and knows what you know, ... imagine if the retailer knew everything about you when you walked in the door, whether you knew FMV or not?

IMHO you spend too much time at your shop and at home watching TV, your time is valuable. For many people you have to physically GOTO every car dealer in Orygun & Washsington if you want to Buy a new HONDA. Simply calling will not find you a deal, as most likely you'll talk to a moron on the phone, with NO Power to deal.

Perhaps Dunc doesn't like saving $5,000, ... up to him. But if I know what I want I go around and see how much they want, and after physically going to 5-10 places you get a very good idea of which one is the deal.

Not so much the deal is a satisfaction of life, but knowing you got screwed is what carry's over me for weeks if not months, I hate the feeling of knowing I got screwed. Thus I shop.

Dunc doesn't have the time to shop, but has unlimited time to watch god damn fucking boring TV, ... go figure, its all about priority's in life.