I've changed. The recession has finally got to me.
I now want it cheaper.
But who would have known that in the search for cheaper I'd also find better and faster?
As an experiment, for the last 4 weeks I've switched supermarket. Gone are the trips to Tesco, Asda and Morrisons.
I've embraced Marks & Spencer's food hall.
And the results are staggering. It now takes me 20 minutes to do my weekly shop (instead of 60 minutes). The quality of the food is better. And, perhaps most surprisingly of all, I'm saving a LOT of money.
Let's quantify it. My average weekly shop in Tesco was coming in at around £140 in April. For two people: that's a lot.
Now I combine a trip to my local butchers Simon Howie (good, top quality meat) with a weekly shop in M&S. So far I'm yet to break the £100 barrier, a saving of 30% and more on most occasions.
I'm wasting less (so it's greener too), and we're eating healthier as a result.
So there, I've said it. I've converted from being a Railway Children family (Butter or Jam on your bread, but not both) to simply having my cake and eating it.
All in the honest quest of saving a buck or two.
Sunday, 22 May 2011
The Forgotten P
There has, over many years, been much discussion in marketing circles about how many Ps there are.... this is (academically) a big deal. We started with 4Ps (Product, Price, Place, Promotion), someone then added a fifth (People), and subsequently others have tried to increase it to as many as ten (I'd list them here but there are too many to even remember).
Being involved in the marketing of businesses and events on a daily basis, it surprises me, in fact worries me, how many organisations seem to forget about one of those Ps more than the others.
It'll be no surprise that the Ps most discussed with me are Promotion, Price, People and (occasionally) Place. But rarely, and I mean rarely, does anyone pay much attention to the central proposition: Product.
Now it hasn't escaped anyone's notice that we're in the middle of a recession here. In recessions, customers are a cash strapped, price conscious, fussy lot. In the nicest possible sense, of course.
In simple terms, consumers become more discerning. They judge us differently. They alter their behaviour. They change their patterns of spending. And all of this happens when firms are fighting like dogs over a smaller share of the money pot than was previously available.
So it's important to be different. To be better. To offer value for money. To stand out from the (increasingly large) crowd.
Yet most firms just tinker round the edge. Stubbornly refusing to look at their core product or service. It's a bit like the Emperor's New Clothes.
But now is the time. Now is the perfect time to review. To innovate. To charge ahead of your competitors.
A business we've been involved with for quite some time did just that. Around 18 months ago, with the bottom literally falling out of their market, they took a cold hard look at their whole business model, their products and their target market. And they changed. They changed drastically. New product lines, fresh branding, new target market.
The results are staggering. Instead of a downward sales curve, it's now firmly pointing in the right direction. Instead of diminishing profits, they are now making money. And the good news is, that it's early days - when the bounce back comes they'll be ready to take advantage.
So if you are facing challenges in this difficult economy, and are looking to review your marketing, start with the first P, the most important P, before you go wasting money on all the others. It might just be the making of your business.
Being involved in the marketing of businesses and events on a daily basis, it surprises me, in fact worries me, how many organisations seem to forget about one of those Ps more than the others.
It'll be no surprise that the Ps most discussed with me are Promotion, Price, People and (occasionally) Place. But rarely, and I mean rarely, does anyone pay much attention to the central proposition: Product.
Now it hasn't escaped anyone's notice that we're in the middle of a recession here. In recessions, customers are a cash strapped, price conscious, fussy lot. In the nicest possible sense, of course.
In simple terms, consumers become more discerning. They judge us differently. They alter their behaviour. They change their patterns of spending. And all of this happens when firms are fighting like dogs over a smaller share of the money pot than was previously available.
So it's important to be different. To be better. To offer value for money. To stand out from the (increasingly large) crowd.
Yet most firms just tinker round the edge. Stubbornly refusing to look at their core product or service. It's a bit like the Emperor's New Clothes.
But now is the time. Now is the perfect time to review. To innovate. To charge ahead of your competitors.
A business we've been involved with for quite some time did just that. Around 18 months ago, with the bottom literally falling out of their market, they took a cold hard look at their whole business model, their products and their target market. And they changed. They changed drastically. New product lines, fresh branding, new target market.
The results are staggering. Instead of a downward sales curve, it's now firmly pointing in the right direction. Instead of diminishing profits, they are now making money. And the good news is, that it's early days - when the bounce back comes they'll be ready to take advantage.
So if you are facing challenges in this difficult economy, and are looking to review your marketing, start with the first P, the most important P, before you go wasting money on all the others. It might just be the making of your business.
Wednesday, 20 April 2011
Sloppy Selling Sucks
Sloppy selling has always been a personal bug bear of mine. So many sales people think that "sending" the communication is all they have to do.
Newsflash: that's what we call marketing.
The sales process (and there's more than one step) actually involves doing more than sending an email and hoping for the best. That's just sloppy.
Last week I recieved just such an email, from a completely unknown person, at a (sort of) unknown company. It was, you could say, a "cold call" but of an electronic variety. I won't tell you what they wanted to sell, but I am (most definitely) in the market for buying their services. In fact, annually, I spend tens of thousands of pounds every year on the kind of service they offer.
The interesting thing about this email is that the company office is just three doors down the corridor from my office...... heck, I probably already know the sales person to say hello to - albeit from a watercooler (read: kitchen, coffee machine) type moment.
So I replied and said "Why not pop along the corridor and we'll talk."
And I'm still waiting.
Apparently 3 doors is a step too far.
Note to sales people: the objective of your first (introductory) contact, whether by phone or by email, should always be to get permission to move to the next stage. The second stage is your opportunity to sell.
Failing to follow up is just sloppy sales. And it sucks.
Newsflash: that's what we call marketing.
The sales process (and there's more than one step) actually involves doing more than sending an email and hoping for the best. That's just sloppy.
Last week I recieved just such an email, from a completely unknown person, at a (sort of) unknown company. It was, you could say, a "cold call" but of an electronic variety. I won't tell you what they wanted to sell, but I am (most definitely) in the market for buying their services. In fact, annually, I spend tens of thousands of pounds every year on the kind of service they offer.
The interesting thing about this email is that the company office is just three doors down the corridor from my office...... heck, I probably already know the sales person to say hello to - albeit from a watercooler (read: kitchen, coffee machine) type moment.
So I replied and said "Why not pop along the corridor and we'll talk."
And I'm still waiting.
Apparently 3 doors is a step too far.
Note to sales people: the objective of your first (introductory) contact, whether by phone or by email, should always be to get permission to move to the next stage. The second stage is your opportunity to sell.
Failing to follow up is just sloppy sales. And it sucks.
Tuesday, 12 April 2011
Every Little Helps..... The Bottom Line
I've been a bit too busy to blog recently. No excuses, work has been very busy recently and, in a recession (as they say), work is work.
But the news today, that inflation was falling, has compelled me to write. Even if it's just a little blog.
Stephanie Flanders, the BBC's economics editor, has today published her blog off the back of a "surprise" announcement that inflation has fallen, when it was largely expected to stay still.
Her article is a startling insight into the possible whys and hows this has come about.
Interestingly, however, she pins the most likely reason fairly firmly on the major supermarkets, both for the unexpected fall in inflation, and (in some respects) for partly causing the "squeeze" in the first place.
Graphs depict how wages (50% of the cost base in retail) have stayed relatively stagnant while food prices have risen sharply in 2008 & 2009. So where did all that extra money go?
Well, retailers margins we are led to believe. Or profit, to you and me.
And quite possibly the evidence is there:
Tesco announed pre-tax profits up 12.5% up in October 2010.
Sainsbury's announed pre-tax profits up 8.1% in November 2010.
Asda announced a leap in profits of 58% in October 2010.
Stephanie suggests consumers are starting to fight back, with over 40% of us now purchasing via discounted offers, as opposed to full price. And, if it's helping drive down inflation, I'm rather inclined to agree that as consumers we should be making a point of driving supermarket prices down.
It is a recession and every little helps, you know.
But the news today, that inflation was falling, has compelled me to write. Even if it's just a little blog.
Stephanie Flanders, the BBC's economics editor, has today published her blog off the back of a "surprise" announcement that inflation has fallen, when it was largely expected to stay still.
Her article is a startling insight into the possible whys and hows this has come about.
Interestingly, however, she pins the most likely reason fairly firmly on the major supermarkets, both for the unexpected fall in inflation, and (in some respects) for partly causing the "squeeze" in the first place.
Graphs depict how wages (50% of the cost base in retail) have stayed relatively stagnant while food prices have risen sharply in 2008 & 2009. So where did all that extra money go?
Well, retailers margins we are led to believe. Or profit, to you and me.
And quite possibly the evidence is there:
Tesco announed pre-tax profits up 12.5% up in October 2010.
Sainsbury's announed pre-tax profits up 8.1% in November 2010.
Asda announced a leap in profits of 58% in October 2010.
Stephanie suggests consumers are starting to fight back, with over 40% of us now purchasing via discounted offers, as opposed to full price. And, if it's helping drive down inflation, I'm rather inclined to agree that as consumers we should be making a point of driving supermarket prices down.
It is a recession and every little helps, you know.
Tuesday, 29 March 2011
Free Estimates
Free Estimates.
This phrase has always intrigued me. Frequently seen adorning the side of labourer's vans: Free Estimates.
Is this really a unique selling point?
To be honest, if the best you can do is only "estimate" the price, and you're the professional, then surely I shouldn't be expected to pay for that?
Is there anyone out there who does charge, I wonder?
This phrase has always intrigued me. Frequently seen adorning the side of labourer's vans: Free Estimates.
Is this really a unique selling point?
To be honest, if the best you can do is only "estimate" the price, and you're the professional, then surely I shouldn't be expected to pay for that?
Is there anyone out there who does charge, I wonder?
Sunday, 6 March 2011
Is there Ever an Excuse for Poor Service?
Feedback on yesterday's blog post Trust Games has got me thinking: is there ever a legitimate excuse for poor service?
It intrigues me that more than one person (on and offline) has defended Tesco's "security led" approach, claiming it "makes sense" that they protect their store and their goods on offer from petty thieves and serial shoplifters. I don't deny that it does make sense.
My customer "experience", as one of the many millions of law abiding, big spending Tesco customers, however is continually tainted by this security led approach. The first person who greets me, for instance, in the Tesco store is the security guard.
It is possible, however, to run a major retail business with multiple lines and stock with good street value without making the customer feel like they are entering some sort of homogenous police state. Ask Marks & Spencer: they've been managing it for years. Anyone noticed Morrisons' security team? I haven't. How about Asda? Nope.
They are there in all three cases, but they are not "present" as part of the customer's retail experience.
So, back to my original questions - is there ever an excuse for poor quality service? Does the old trio of "Quality, Price, Service: Choose Two" still ring true? Or can we have all three?
I believe we can, and without much extra effort or cost. So how could Tesco improve?
Well, the changing rooms are easy: Pop a person on clothing to man the changing rooms - it's what all the other fashion retailers do.
The automated tills are easy too: weigh the customer's bag before they start packing. That way they are not trying to juggle car keys and their shopping at a set of tills that have clearly been designed by men who also haven't sussed that women carry handbags (that's a story for another day).
The CD cases, again, I think are easy: HMV seem to manage with a simple, unobtrusive, stick on alarmed bar code sticker.
So when it comes to quality, service and price, I want all three.
And I don't think security is a valid excuse for not delivering on them.
It intrigues me that more than one person (on and offline) has defended Tesco's "security led" approach, claiming it "makes sense" that they protect their store and their goods on offer from petty thieves and serial shoplifters. I don't deny that it does make sense.
My customer "experience", as one of the many millions of law abiding, big spending Tesco customers, however is continually tainted by this security led approach. The first person who greets me, for instance, in the Tesco store is the security guard.
It is possible, however, to run a major retail business with multiple lines and stock with good street value without making the customer feel like they are entering some sort of homogenous police state. Ask Marks & Spencer: they've been managing it for years. Anyone noticed Morrisons' security team? I haven't. How about Asda? Nope.
They are there in all three cases, but they are not "present" as part of the customer's retail experience.
So, back to my original questions - is there ever an excuse for poor quality service? Does the old trio of "Quality, Price, Service: Choose Two" still ring true? Or can we have all three?
I believe we can, and without much extra effort or cost. So how could Tesco improve?
Well, the changing rooms are easy: Pop a person on clothing to man the changing rooms - it's what all the other fashion retailers do.
The automated tills are easy too: weigh the customer's bag before they start packing. That way they are not trying to juggle car keys and their shopping at a set of tills that have clearly been designed by men who also haven't sussed that women carry handbags (that's a story for another day).
The CD cases, again, I think are easy: HMV seem to manage with a simple, unobtrusive, stick on alarmed bar code sticker.
So when it comes to quality, service and price, I want all three.
And I don't think security is a valid excuse for not delivering on them.
Saturday, 5 March 2011
Trust Games
I'm going to pick on Tesco. I know it might be an easy target.
Not unlike many British people, I spend a lot of money in Tesco. In fact, taking groceries, petrol and clothing all into consideration, my average monthly spend probably hovers in the region of £500 (or, for arguments sake lets call it £6000 per annum).
Now, if I was spending six grand on a business purchase, I'd have certain expectations. I'd expect quality. I'd expect good service. I'd expect there to be a level of trust between me and the supplier.
Tesco seems to take a different approach.
Want to try on clothes? You need to ring for an assistant to unlock the changing room first.
Want to go through the self service checkout? God forbid you have anything in your own canvas shopper apart from fresh air.
Want to buy a £3 DVD? Make sure it gets taken out of its security box at the checkout first.
Perhaps I'm missing something, but if you spent £500 a month with your local Prada store (not that £500 would go terribly further than a couple of pairs of shoes and maybe a scarf), they'd be serving you with champers upon your arrival every month, and waiting on you hand and foot.
So. Every little helps? I'm not so sure.
Very little helps. Perhaps.
Not unlike many British people, I spend a lot of money in Tesco. In fact, taking groceries, petrol and clothing all into consideration, my average monthly spend probably hovers in the region of £500 (or, for arguments sake lets call it £6000 per annum).
Now, if I was spending six grand on a business purchase, I'd have certain expectations. I'd expect quality. I'd expect good service. I'd expect there to be a level of trust between me and the supplier.
Tesco seems to take a different approach.
Want to try on clothes? You need to ring for an assistant to unlock the changing room first.
Want to go through the self service checkout? God forbid you have anything in your own canvas shopper apart from fresh air.
Want to buy a £3 DVD? Make sure it gets taken out of its security box at the checkout first.
Perhaps I'm missing something, but if you spent £500 a month with your local Prada store (not that £500 would go terribly further than a couple of pairs of shoes and maybe a scarf), they'd be serving you with champers upon your arrival every month, and waiting on you hand and foot.
So. Every little helps? I'm not so sure.
Very little helps. Perhaps.
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