Insult

A very wise man once told me; “You’ll never go broke underestimating the intelligence of the public”. I have pondered that a lot. The truth in it is, that you won’t go broke. That doesn’t mean you won’t lose money. The key is you have to have money on the table in the first place. Therefore, those that lose by not respecting the customer’s intelligence, are the ones who have the most to lose.

Wal-Mart has, traditionally, grown by opening new stores. That seems to have reached a point of critical mass. In fact, they claim to have 200 million customers. I don’t think they are losing too many customers because they can’t find a store.

My logic tells me that they need to enhance service to their customers to ensure growth. This is from a N.Y. Times article…

the discount giant is seeing its 200 million customers as belonging to three groups.

There are â€œbrand aspirationalsâ€ (people with low incomes who are obsessed with names like KitchenAid), â€œprice-sensitive affluentsâ€ (wealthier shoppers who love deals), and â€œvalue-price shoppersâ€ (who like low prices and cannot afford much more).

That is insulting. That is how they see you; obsessed, greedy, or poor.

Sam Walton was a grass roots marketing genius. He is rolling over in his grave. Sam’s slogan was, “Low Prices Always”; Brilliant and simple. The new slogan is, “Saving people money so they can live better lives”. How is that better? “Low Prices Always” implies that if we save money we will be better off. We are smart enough to figure that out. “Saving people money so they can live better lives” is insulting. It sounds like a bureaucrat that thinks he knows how to take care of us.

Here is why I shop at Wal-Mart. The 2 lb. 7 oz. tub of Folgers is two dollars cheaper than anywhere else and, four dollar prescriptions. While I’m there, I usually find other stuff that I can’t live without. What brings me in is “Low Prices”, always; thanks Sam.

Here is why I don’t shop at Wal-Mart. If I only need 1 or 2 items, it’s not worth it to wait in line.

Message to Wal-Mart, low prices+better service=growth.