How to Beat Walmart
Well, maybe instead I should call this, How to Beat Amazon. Either way, what if I told you that I know a better way of shopping that could put every single product on my shelf at a lower price than any Walmart or Amazon ever could? How wonderful that sounds for every consumer, but it would be terrible business right? Nope. You can do all of this and still make the same average profit margin. Well that sounds like a magical dream that one of my college buddies would say during a bad mushroom trip. Not in this reality. Let’s go shopping at the forward thinking store.
But first, you must ask yourself, how do Walmart and Amazon always win? Very generally speaking, they bully around the distributors for a lower bulk price that enables them to sell each individual product at a lower price. This results in them dominating the market. That’s about the briefest explanation possible but I’ve realized that I quickly lose my millennial audience so I must make more succinct points. That’s a topic for another article… Now, enter the forward thinking store!
What’s the first thing that you see when you enter my store?!? Lower prices on every single product on my shelves, that’s what! How is this possible? I will list every product that I sell, on the shelf for the exact price that I paid for that item per piece. No exceptions. So how can this make money?
Instead of spending tedious time, energy, money and resources on marking up individual products, I will charge per transaction. But before I dive into the details, do not underestimate the value of having the products on the shelves at a lower price. It is everything. The common consumer sees a lower price… period. Let’s call this phenomenon, ‘simple eyes’. ‘Simple eyes’ see a lower price. This could also be easily translated as pure honestly. In fact, I would market ‘honesty’. “We don’t spend time deceiving you on individual product mark ups, you get the lowest possible price and you get the best products delivered to your community!” Sounds about right.
Alright, logistically how would you handle charging per transaction? Do some quick number crunching and figure out what the average markup per all products sold would be. Be careful not to mix this up with the average of all products, because that wouldn’t be taking into account that some products sell more frequently than others. Then, start a transaction fee scale that charges less of a percentage per transaction the more that you spend. Now you are getting an honest price, and you save more money the more that you buy! All of you business owners, it’s free marketing! “Spend more here and you will save more!” Simple.
One final note of a secondary benefit that this store would create. Hey marketing research department, you are all fired! Well, not all of you, but most of you. I have an excel spreadsheet that will now perform all of the market research that I need, or most of it. Now I’m even saving on labor! Let’s sum all this up.
As my old roommate comes out of his mushroom trip and we all realize this is for real, let’s look at both perspectives. The consumer sees a lower price on every product on my shelf and is naturally motivated to buy more at my store so they save more money. There is nothing to hide here. End result; more people come to my store because I sell the same products at a cheaper price. Now on to the business owner, you see more profits as a result of more people coming to your stores, not because you charged them more. In fact, you charge less. End result; You see no difference in profit per products sold, but more total revenue and total profits because you look better to the consumer and generate more consumers.
So what is the end result of this theory? The shopping world is revolutionized. I’m selling cheaper products and making more profits. Now, back to the short minded millennial’s… did you make it this far?