Thursday, March 10, 2011

END BELOW COST SELLING ...THE DISCUSSION BEGINS..IS THERE A SOLUTION?PART 2

See previous post for context

The Beer Nut said...
It is impossible to beat Tesco at their own game. Get out of the race and concentrate on offering things that lumbering giant Tesco will never be able to do: selection and customer service. You will always have to charge more than Tesco for any given product, so either let them have it and use the free shelf-space for something that will bring customers in, or else justify your premium by giving customers a better experience than they get in the supermarket. You have an agility to do that, Tesco does not. And drop the public health policy bit. Alcohol consumption in Ireland has been decreasing steadily since 2001. The abolition of the Groceries Order had no effect on it. It did not make things worse. By calling for new alcohol legislation on health grounds you're agreeing with those who want to severely reduce access to alcohol altogether: the same ones who forced you to close your doors at 10pm. The health argument is not a friend of your business.
NoffLA said...
Agree and thanks for your input. It is difficult for Independent off licences in many parts of the country to compete against multiples selling main stream branded products below cost. Often this is what their customers want to purchase.Sales of niche wines and micro brewery beers just wont pay the overheads and neither will selling below cost.Meanwhile alcohol is being used by the multiples to drive other types of sales in order to gain market share and this is very disheartning.
The Beer Nut said...
I understand. But every business needs to adapt to the market, and when competing on price is not an option (and it never will be with Tesco, however the law is changed) you need to find something else. It doesn't have to niche wines or micro brewery beers or ultra-premium whiskeys. How about glassware? Flowers? Chocolates? Cigars? Coffee? I've seen all of these in Irish off licences. One even does cheese. The best off licences I know are the ones who engage with their customers. They hold tasting events and they promote themselves and their stock, vigorously, through the social media. They build a community of customers (like me) who keep coming back and spending money, and buying things that perhaps we hadn't thought of buying when we went in. Some of them do home delivery too. Off licences that are just sitting there passively waiting for the customer to come in and buy stuff should not be surprised that their customer is getting it in Tesco with the milk.
WoW Girls said...
Beer Nut you are spot on with your comments. Keep them coming. Can you elaborate a bit on the benefits of social media as a sales tool for the unconverted ...allowing for those around the country with no broadband coverage!
The Beer Nut said...
Officially (and I know IrelandOffline refute this) 99% of Ireland has broadband coverage. Forfás figures from end 2009 have broadband in 54% of Irish households, a bit lower than the EU average, but not by much. My point is that for a business to decide "ah, sure none of my customers use Facebook or Twitter" is a huge mistake. 50% of Irish people are on Facebook. 50%! Why you wouldn't be putting a display in a free virtual shop window like that is beyond me. If you don't know how, then that's where, I think, maybe you should ask your representative organisation to arrange help for you. Back in the real world there are outlets like the local paper and your own front window to advertise events, tastings, new stock, limited editions and other stuff that will help get people through your door. Make these regular and constantly changing, and you're more likely to get people into the habit of visiting your shop. Yes, it's all effort, and hassle, and might even cost a bit of money. But I think at this stage it's an investment as necessary for survival as a fridge or a credit card machine.
 

No comments:

Post a Comment