Sunday, November 15, 2009

Cutting Off The Tail

Disclaimer: I have a bit of a cold today, and a fever, so if I'm less coherent I usually am please excuse me. And for those of you who say 'how can I tell the difference?' I say 'shut up, that's how.'

I've noticed a trend among the big retailers - Target, Wal-Mart, most grocery stores, department stores - of focusing on the bland middle. Shelf space is reserved for those products that sell the most, or that they can get the best profit margin on, or from manufacturers with whom they have a special deal. They're catering to the middle of the bell curve and ignoring the outliers, cutting off the tail.
   For instance, my nasal spray decongestant is well past its expiration date (two years!) so I went to the store to get some fresher spray. I couldn't find the brand I had in my drawer. Not there, they didn't carry it, even though it's still a national brand. They carried exactly 1 national brand name product - four different styles - and 1 store brand. I guess the kind I wanted didn't sell enough or generate enough of a profit on a per-SKU basis to make the analyst's cut.
   Same deal with deodorant. The kind I used for years back in Texas they don't carry here in SoCal, not any more. Retailers did stock it when I first moved out here, and then it became harder and harder to find, until now I can't find it at all, it's just not available. I stock up when I go home, like I do with fajitas and good bar-b-que.
   It's the same with most products, where before shoppers might find a good selection of different brands, now they find acres of shelf space given over to just one or two brands. The retail analysts have done a remarkably poor job of understanding their own business, and they assume that concentrating on the bland middle - where they get the most sales with the least amount of effort - is the best thing for their business. Retailers are focusing on just a few at the expense of others, the idea being that people will just buy what's there, rather than move on.
   Problem is, with people watching their pennies nowadays that assumption is just not true. People are more discerning than they were even six months ago, and tighter with the buck. If people don't find what they want in a store they're not going to settle for the crap lying around, they're going to go somewhere else.
   Like me and shoe laces. At the same store this morning, where I did not buy nasal decongestant, I was looking for laces for my boots. I found the little stand with laces, and after ten minutes of searching found laces that would work, but not exactly the laces that I wanted. So rather than settle for what they had, I decided to wait 24 hours and go to the little shoe store a few blocks from my house, where I will probably find exactly what I want. And if I don't find them there, I have at least three more little shops I can go to. I'll not only get exactly what I want, but I'll be giving my money to a local business.
   I think this is going to happen more and more, as people become dissatisfied with the big retailers they're going to go back to the smaller vendors, back to businesses more interested in listening to what people want instead of telling them what they're going to get.

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