Tuesday, October 26, 2010

Small Grocery - Sticking it to Kroger and Wal-Mart

Grocery shopping is changing. All over the country you see small grocery stores making big profits. Case in point, Trader Joe's. They found a way to actually beat Kroger and Sam's prices, and still deliver better products.

But is Trader Joe's taking over the country? Not yet at least. Thousands of cities don't have this fine grocery store. Whole Foods is everywhere, but a small business can kill Whole Foods with better pricing if they want to. There is opportunity here.

The new business idea is actually an old business idea with a fresh look. This idea is a bit complex, and is no easy task, but I have a few things that I think are critical to stealing grocery market share.

  1. Take notes from Natural Grocer stores. They package their own spices and save customers big with this technique. What else can be purchased in bulk and packaged in the store to save customers money? 
  2. Take notes from Trader Joe's, they developed their own alcohol brands and deliver high quality wine, beer and liquor at insanely low prices.
  3. Take notes from Savory Spice. They carry things that are difficult to find at big grocery stores, like dutch chocolate, but are desirable by people who love to cook. They also give out 3x5 recipe cards if you need help using a new spice.
  4. Hire people who like to cook. Grocery stores are typically filled with people who are uneducated, and rarely appear to be a cooking connoisseur.
  5. Teach employees and customers to cook better, and healthier. Steal the marketing space of customers who need some help with their cooking.
Can a smaller grocer store steal customers away from Super Targets, Wal-Marts, and Kroger stores? I believe it can.

Wednesday, October 6, 2010

Luxury Homes For The Masses

This is a design studio for houses, but instead of catering to the upper class, it caters to the middle class.

The barriers to a luxury home are getting lower and lower. Things that used to embody a wealthy lifestyle have dropped in price, and they have become available to the masses.

HD flat pannel TVs, stainless steal appliances, decent artwork, weekly house cleaning service, all of these things make you think of something on MTV cribs, but they aren't very expensive.

Here are some basic packages that make cheap fixes look like luxury upgrades.
  • Flat screen TV in every bathroom in the house.
  • ipad with a recipe app installed on a cabinet door in the kitchen.
  • Weekly bathroom, floor, and lawn care for a monthly fee.
  • Updated artwork throughout the house.
  • Updated light fixtures throughout the house.
Important elements to success are: having a showroom, consistent supply chain, not cutting too many corners, limiting the number of packages to keep prices low.