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The price based Christmas

It feels to me that Christmas this year is more about price than even last year.  Every major retailer I visit is pitching price.  Earlier this week in Queensland, Coles posters told me that me they will beat any other retailer in Queensland on a list of items.  Chemist Warehouse says they will beat any retailer who decides to undercut them.  Woolworths says they will price match.

A newsagent mentioned to me yesterday that their local Officeworks is price matching the newsagent on ink and toner given that the newsagent was setting the price benchmark in town for this category.

Where does this leave us?  Looking expensive some would say.

The one area where we can win is customer service for try as they might, no corporate can stray from their head office driven script enough to deliver the kind of personal and memorable customer service we are capable of.

They key for newsagents in a price focused Christmas season is for us to deliver differentiating customer service.

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  1. CAMERON

    My favourite is the Coles ad – half a dozen mince pies for $1.30. If you find them cheaper they’ll refund double the difference…. truly the silly season.

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  2. Brendan

    Cameron,we should all put some out at 10 cents and tell customers not to buy the but go to Coles for the double the difference refund. It would be fun to watch the reaction from Coles as they had to pay customers to take the mince pies.
    Tis the season to be mischievious lalalalala….

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  3. Blake

    @Brendan

    That’s exactly what they want.

    The product you buy, lets assume a 50% markup (but I’d wager 100%). You’d be looking at an 85c cost, and $1.20 refunded. All up a $2 cost to Coles.

    Do you think that Coles hasn’t counted on that business – that the customer will take the $2 and spend it (and more) in store while they are there.

    Also – their double the difference only applies to Woolworths, Aldi & IGA. (plus Franklins/Foodworks depending state)

    If any of them went out and collectively dropped their prices just to screw with Coles to nothing – e.g. Woolworths.

    The others (Aldi/IGA) could fire off a consumer competition complaint to the ACCC. As they couldn’t compete with 10c & $-2 prices which are clearly detrimental to consumers in the long run. I would wager Coles is banking on that.

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  4. Heather

    I had this email twice this week – it’s timely – share it around.

    Christmas 2011 — Birth of a New Tradition

    As the holidays approach, the giant Asian factories are kicking into high gear to provide Australians with monstrous piles of cheaply produced goods –merchandise that has been produced at the expense of Australian labor.

    This year will be different. This year Australians will give the gift of genuine concern for other Australians. There is no longer an excuse that, at gift giving time, nothing can be found that is produced by Australian hands. Yes there is!

    It’s time to think outside the box, people. Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper?

    Everyone — yes EVERYONE gets their hair cut. How about gift certificates from your local hair salon or barber?

    We all like to win, and read the latest, how bout Magazines, Lotto from your Newsagent ?

    Gym membership? It’s appropriate for all ages who are thinking about some health improvement.

    Who wouldn’t appreciate getting their car detailed? Small owned detail shops & car washes would love to sell you a gift certificate or a book of gift certificates. For the Gardeners on your list – how about some lovely healthy pot plants or plants for the garden or even a gift certificate from the local lawnmowing man.

    Are you one of those extravagant givers who think nothing of plunking down the Panasonic of a Chinese made flat-screen? Perhaps that grateful gift receiver would like his driveway sealed, or lawn mowed for the summer, or games at the local golf course.

    There are a bazillion owner-run restaurants — all offering gift certificates. If your intended isn’t the fancy eatery sort, what about a half dozen breakfasts at the local cafe. Remember, folks this isn’t about big National chains — this is about supporting your home town with their financial lives on the line to keep their doors open.

    How many people couldn’t use an oil change for their car, truck or motorcycle, done at a shop run by the Australian working guy?

    What about a gift certificate from a local home handyman for some chores to be done around the home?

    Thinking about a heartfelt gift for mum? Mum would LOVE the services of a local cleaning lady for a day.

    Someone’s computer could use a tune-up, & I KNOW I can find some young guy who is struggling to get his repair business up & running.

    OK, you were looking for something more personal. Local crafts people spin their own wool & knit them into scarves. They make jewelry, & pottery & beautiful wooden boxes.

    Plan your holiday outings at local, owner operated restaurants and leave your server a nice tip. How about going out to see a play or ballet at your hometown theatre.

    Musicians need love too, so find a venue showcasing local bands.

    Honestly, people, do you REALLY need to buy another 10,000 Chinese lights for the house? When you buy a $5.00 string of light, about 50 cents stays in the community. If you have those kinds of to bucks burn, leave the postman, garbo or babysitter a nice BIG tip.

    You see, Christmas is no longer about draining Australian pockets so that China can build another glittering city. Christmas is now about caring about Australia, encouraging our small businesses to keep plugging away to follow their dreams. When we care about other Australians, we care about our communities, and the benefits come back to us in ways we couldn’t imagine.

    THIS is the new Australian Christmas tradition.

    Forward this to everyone on your mailing list — This is a revolution of caring about each other, and isn’t that what Christmas is about?

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