You Can Be A Category Killer!

(Want to get your website profiled for free? Leave a link for me to look at :).

You can be a category killer. You don’t have to win the lottery or marry Bill Gate’s daughter. Yes, you really can kill a category.

Wait a minute. So if I neither rely on the lottery nor marry my way into a ton of money, how do you expect me to buy a large retail store? There’s no way even if I live to be two hundred years old that I could save up so much money. How can I possibly be a category killer?

What are you buying is a really big myth. Category killers: the Wal-marts, Costcos and Home Depots of the world, yes, they can buy things at lower prices and squeeze their suppliers to death. However, they don’t necessarily have the lowest price in all items, and even if they did, that’s not the only reason they’re successful.

Editor’s note: Know about some interesting content? Send it to me and if I like it, I will post it with a “special thanks to” message with a link to your website at the top. Please drop me a short email at eric(at)beevok(dot)com (your own/self interest content is fine)

You’re staring at me with disbelief. Don’t believe me? Go through your junk mail and open a Home Depot catalogue and compare it with another hardware store. I’m willing to bet that not every item cheaper at Home Depot.

But generally speaking,  Home Depot is most complete. That’s why Wal-Mart only advertisers “everyday low prices” and not “We have the lowest prices in everything, guaranteed!”

Alright, let’s even assume that everything at Wal-mart is cheaper than in every other place. Statistically speaking (and if you believe communists), every single small business that sells something that Wal-mart sells should go out of business, right? Why hasn’t that happened? Why do I see convenient stores and small computer stores? Shouldn’t Costco and Best Buy have crushed these little establishments?

Well, while many have been crushed, price isn’t even the only reason I buy something.

First of all, it’s true I can buy everything I buy at my convenient store cheaper at Wal-mart or Costco. But I’m not going to go bother driving 15 minutes to cost Costco just to save $1 on chewing gum and then drive another 15 minutes back.

Wal-mart and Costco have the most complete product line for certain categories. I can get all my toys from Toys R Us, all my home improvement equipment at Home Depot and all my computer stuff from Best Buy. So when I need a lot of those, that’s where I go.

So ask yourself, for what type(s) of products is your product line the most complete? Which category do you kill?

Advertisements

%d bloggers like this: