edoubleyou
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This is just a cut and paste of something I wrote for a related question I just answered but I think it is relative and to a certain degree addresses your question.
Wallmart has built their huge empire on one basic strategy, called the price point.
Every day of every week each department in the store has one item that has a price that is so low it's hard to believe. That product is strategically place in a prominent place in that department.
After that psychology comes into play.
Here’s an example, small appliances, let say the average decent coffee maker has a price of $20
Wallmart will put a coffee maker at the end of the isle in a special display for $10
Oh my god coffee makers are usually $20, this one is only $10 Wallmart's prices are so low, I wonder what the prices are on the other coffee makers they have?
Look here's one one that has way more features and looks like it's better quality and it's only $25, it must be a really good deal.
The truth, Target is probably selling it for $20 but Wallmart now has you convinced that their prices are the lowest so you buy the thing for $25.
They have been doing this for years, making them one of the largest, wealthiest companies on the planet, its important to note that I just used the word planet, not USA, they are one of the largest, wealthiest companies on the entire planet!
Therefore they have the advertising dollars to be able to continue to convince people that they are the source for the lowest price.
They do have low prices on allot of stuff, but to always get the best value for your money, shop around, remember Wallmart has brilliant, highly educated, highly paid, creative people working for them who’s only job is to figure out new creative ways to get YOU in the door and leave the contents of your wallet behind.
If you think anything other that that you are a fool, and we know all what happens to a fool and his money...
That is how they got the edge, Target on the other hand is selling style aimed at mostly the younger crowd, but I also believe they get older folks who have good taste, but the youngsters are considered to be the crowd to get get because they have more disposable income.
Happy Shopping! |
Puzzleman
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"...too powerful?". I would ask "are they too smart"? They caught their retail competitors asleep. Wal-Mart used modern technology and methods to boost their business, sales, profits, etc.
Fifteen years ago the question was "are the japanese 'too powerful'"?
They gave school-boy lessons to US auto (electronics) companies. |
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