Convenience and Savings

How far will you go to save a buck? I've seen TV news segments of the couponers who have basement storage shelves full of non-perishable foodstuffs and household products worth thousands of dollars for which they've paid little. The Groupon website is still active with their specials. The big box stores like Staples and Home Depot etc. etc. have daily or weekly adds with coupon or discount specials to attract customers. 

In the old days a customer was a buyer, hence the definition "1. a person who purchases goods or services from another; buyer; patron." And a buyer spends cash or credit for goods and services. A customer is different than a shopper, as in "1. A person who shops. 2. A comparison shopper." And nowadays the emphasis has shifted toward the customer/shopper, but the goal of any business is to attract and find a buyer. In fact, businesses emphasize "customer or brand loyalty," and hence -- coupons. Sales have become known for what they are: The retailer raises the price then announces a "sale" -- discount percentages usually. But "sale" is tired and overused and doesn't attract buyers the way coupons seem to. 

Coupons are guaranteed discounts wherever the product may be found. And different stores have different prices based on their markups for moving high turnover products.So brand, not necessarily store loyalty, is the goal. It's like Sears today. At one time they only sold their own brand of appliances, Kenmore, yet today they sell a half dozen others as well. And "post-sales" what is really called recurring revenue, is the king of business. Hence brand loyalty and other techniques, such as upselling their product maintenance contract, or providing technical support for software (Microsoft and others), on a subscription rather than One Time Charge (OTC) basis, has become the norm. 

Most advertising I see such as the Acme and Shop Rite print ads in our Sunday Times, now all show actual savings to be accrued from the purchase. Like Kohl's, famous for its 10, 20 or 30% discounts shown in dollars and cents on their receipts. We've waited for Kohl's to open at 5 am during Christmas for their sales. Because -- we know what we'll be saving. What we spend is almost secondary to what we save.

But the real clincher for any sale or coupon to succeed is proximity of product to customer, location, even if on the web we are sold on the short number of days it takes to deliver our items. And ease of use, as on the web, and convenience, are the aces in the whole for retailers. For example, we like Target and their prices etc., but they are located in Hightstown, 10 miles away. Our Acme is less than a mile, and our Kohl's at Hamilton Marketplace, with over 40 stores, banks and restaurants is 2 miles away from our home. So guess who like's Jersey Mike's (subs), Chilli's, Longhorn and Ruby Tuesday now over our old favorite Mannino's Italian restaurant further away? And who do you guess does all their craft shopping now at Michael's, gift shopping at Bed, Bath & Beyond and Pier 1 Imports? And all our card buying at Hallmark? And we also have multiple Dunkin Donuts, Subways, Taco Bell, Broad Street Diner, McDonald's and other restaurants all within 2 miles of us. So proximity (location) equals convenience, equals brand loyalty equals sales, equals recurring revenue.

And the world goes round. And I'm willing to pay more for convenience; not like buying beer at the new Vet's stadium to a captured audience, but buying gas at our local no name station because it's only a few long blocks away. 

So convenience is as good as a sale, and as good as a coupon. Why do I want to drive another couple of miles to save pennies on a gallon of gas, or a few quarters on a meal further away in town?

How do you shop? For a sale? by coupon? Or by convenience?


Best, Rod
Copyright 2014 
Surviving Bipolar Disorder in the modern age . . . a journey of Hope for the afflicted.

My poetic memoir Episodes available at www.amazon.com/episodes-rodney-richards/dp/0615914705/