A deep discount shop near one of my newsagency appears to be having trouble selling their Easter cards. The have upped the ante from one dollar a card to now offering three for two dollars. In the meantime, our Easter card sales are on track to deliver 15% year on year growth off a good base from 2012.
While it’s annoying to see these cheap product shops in what is otherwise a premium shopping centre, I do understand that they attract a different shopper who is loyal only to price. In other words, not that loyal at all. We has shoppers coming back to us for easter cards because of our range and the exceptional customer service – we have several instances of this very specific feedback. These customers, returning because of an experience they love, are more valuable than someone going back to the deep discount shop to purchase a $1 card.
I talk to many newsagents who feel they have to compete in this cheap card space. While I tried this ten or twelve years ago, I am glad I stopped confusing my shoppers and offering cheap product in a quality service based business. Today I don’t try and compete on price as I see it as confusing my shoppers.
I make more from one Easter card than what my deep discount competitor makes from twelve cards. I am glad to be in my position compared to theirs.