Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

Friday, March 19, 2010

My Sunday shop, statistically speaking

Last Sunday, I became the Main Grocery Buyer in our family for a day.

It's true that I spend a fair amount of my week with my head in the world of retail, but I have to admit that I rarely ever get the chance to experience a store as a happy-go-lucky, Sunday shopper.

Thinking about doing something is never quite the same as actually doing it, a point well-proven recently by a good friend who used his blog, Brand Habits, to dabble in the world of crowdsourcing with $150 of his own money – you can read about the highs and lows of that experience here.

And so it was that the whole experience was a real eye opener for me.

Quite literally, seeing as I spent most of the shopping trip feeling incredibly overwhelmed by the sheer volume of information that was being pumped to my brain by my eyes. So much so that my brain is still compulsively processing much of the data, and every so often I feel my hand reach out in front of me to grab what it thinks is a tub of Philadelphia cream cheese or some other sundry item from a shelf in my mind's eye.

But as much as I was pretty overwhelmed, I was equally amazed by the fact that I didn't return home with a single incorrect item (although I did forget a few things and/or ran out of time as my 18-month old son ran out of patience). However, as I scoured the shelves for what looked like stuff that usually turns up in our fridge and freezer, cupboards and drawers – without a shopping list, I should add – shapes and colours were the things that invariably guided me to the right item.

In fact, those semiotic design cues are the only reason that a shopper can make it through a supermarket in anything like a reasonable amount of time – and I give my full sympathy to any label readers out there for the amount of time it must take them.

As for my trip, I was in the store for 90 minutes.

In which time, I bought 98 items.

Which means, on average, I was putting into my trolley 1 item every 60 seconds.

No wonder I was feeling overwhelmed, that's quite a workout – mentally and physically – but one that would be impossible if it weren't for the role of design.

But that's not all.

In total, my shopping came to a total of $464.96.

That's over $5 for each and every minute I spent there.

Which strikes me quite a high amount for something that is meant to be built around a low service, value model. Imagine spending $5 a minute at a cinema or restaurant, experiences where service comes at a premium. (As an aside, feel free to check out this post I wrote about Paul McCrudden and his 6 Weeks project to read an interesting take on the value of the time you spend with brands.)

For me, those two statistics say it all.

On the one hand, the supermarket shopping experience is fast and furious, a flurry of split-second decisions as you charge up and down one towering aisle after another.

On the other, it's hardly a cheap way to spend your time with a brand that typically provides barely more than a large warehouse full of commodity-priced produce – I admit that is something of an over-simplification, but you get my drift.

As I write this, both Coles and Woolworths are locked in what looks like shaping up into a mammoth battle for our time and money after years of dominance by Woolworths. What's more, the launch of Thomas Dux by Woolworths and the store renewal program at Coles are both strong signals of what's to come.

After years of stack 'em high, sell 'em cheap, they are now becoming far more interested in how we spend our time, not just our money.

Saturday, November 21, 2009

Money matters (or not)

In my experience, money has a strange effect on people. Rich and poor, happy and sad, there's simply no rhyme or reason.

In England, for example, they don't seem to worry so much about how much money you've got, but more about where it came from. You can blame that on a class system where the noveau riche are often vilified for their supposed vulgarity and lack of taste.

In the United States of America, the combination of their lack of a class system and historical hatred of all things English means that the opposite is true – in the form of the American Dream. Ian Brown, sometime singer with The Stone Roses, summed it up best for me when interviewed last month by The Quietus: "I can rent a convertible BMW in America and drive around, and I'll get homeless people saying, ‘Nice motorcar'. I get one here [in England], and people want to put a 50p up the side of it."

As for Australians and money, it's a very different story again. I've always found the biggest talking point is not how much you have or where it came from, but whether or not it's waterproof.

In marketing terms, understanding the relationship a man has with his money – and, more importantly, how to come between them – is an important one. As much they say "mo' money, mo' problems", no money isn't really a practical alternative for most commercial enterprises.

easyJet, the European budget airline, highlighted this well when they took a new approach to their segmentation of the business traveller market in the mid-90s. Rather than worry too much about the category conventions, they divided the market in a different way by separating those whose company paid for their airline travel from those who paid for their own. As you would expect, a value-based proposition was far more enticing for those who were spending their own money, and that simple insight saw them break the market.

Separating a company from its cash is always serious business, and it goes without saying that you need to make sure you're offering something of value in return – and it's certainly not something I take lightly.

However, I still find myself surprised on occasion by clients who treat negotiations with professional services firms as though they're haggling at an Asian night market.

(At this point, I should apologise if my point of view seems a little one-sided, but I can only write what I know from the benefit of experience.)

When it comes to financial negotiations at the outset of a project, it's worth remembering that logic most often applies, not the rules of minimalist design. In other words, less is not more, less is almost certainly less. Less money, less work. However, the desire to please often leads to the decision to discount – more for less, added value, and so on and so forth. But I can tell you now that someone almost always loses out.

Which I why I was pleasantly surprised to read this little gem recently on a blog called greyscalegorilla – following a link from 99%. (Thanks!)


A good piece of advice if ever I heard one. And, as they used to say in ancient Rome, pro bono.