3/4/06
Conversations from Cloud 8.99

Tri-O's oddities, observations, and opinions
by Herb Kandel

As most readers of Tri-O’s know I am wont to share my mental excursions. This latest imaginary voyage wafted me into the celestial, drifting among numerous Cloud 9’s.
Each cloud was specific as to its inhabitants. There was one for every profession and occupation, One labeled CLOUD 8.99 caught my attention --it was the one for Retailers. There sitting by the round table was R.H. Macy, J.C. Penney, Stanley Marcus, and Sam Walton. Let’s eavesdrop.
Stanley Marcus: Say Sam, I hear there is some grumbling coming from a town in Alabama about your proposed store.
Sam Walton: No more than usual when we move into a new area. But folks get used to us and things settle down.
J. C. Penney: I remember when we started our first store in Wyoming in1902 there was only a company store for the mining community and they operated on credit. We opened for cash only and the policy of - do unto others as you would have them do unto you -it was called The Golden Rule Store
R. H. Macy: I was told that now-a-days what it means is “who has the gold makes the rules”
STAN: You got that right, RH, but rules are made to be broken.
JC: What do you mean?
STAN: Well in 1872 Montgomery Ward sent out the first mail-order catalog. Then in 1894 Sears added more items and later tacked on "Your money back if you are not satisfied," Our first catalog was in 1908 and in1926 we had the first cover in color and offered "taste, fashion, and value." in exciting new items from all over the world.
RH: And I was the first to introduce the procedure of the one-price system, in which the same item was for sale to every customer at one price, and giving specific prices for goods in newspaper advertising. I was the first to introduce such products as the tea bag, the Idaho baked potato and colored bath towels and the first in-store Santa Claus.
SAM: Well, fellas, I kinda piggy-backed off you. After working at a J.C. Penney store for 2 years and getting out of the Army, in 1945 I bought a Ben Franklin franchise and made it the most profitable with a wide range of goods with very low prices, keeping the store centrally located, staying open later than most stores, and experimented with discount merchandising. I sold the store and made a profit. In 1950 I purchased a store in Bentonville, Arkansas, another Ben Franklin. Then I became quite involved with community activities, such as Rotary Club, the chamber of commerce, the city council, the hospital board, and started a Little League. I opened a second store on my own and I did something I would do for the rest of my run in the retail: “nose around other people's stores searching for good talent" and offering them a percentage of the store's profits. The next new thing was self-service. Cash registers that were located at the counters throughout the store would be replaced by checkouts located in the front of the store where customers would pay for everything at one time. My other ideas: have special promotions, keep the place well lighted and clean, demand staff be loyalty by sharing profits.
JC: That’s all well and good but what about the small corner store selling the same item? Won’t you put them out of business with your lower prices? And one of your stores will be pretty near the other down there in Fairhope.
STAN: I think that the folks will patronize the one that is closer to them but there are those customers who can never get some things that the corner store offers.
RH: Such as…..
STAN: Things that Sam can’t give them even with lower prices and promotional giveaways. That is: the reason to shop there, be it for personalized service, specialized items, or quality goods at a fair price. If you satisfy needs they will come.
JC: I know that if for a few cents more I can receive respect as a shopper, save the time at the checkout and gas too, and chose from an appealing inventory in a cordial environment it’s worth it to me. My middle name is not Cash for nothing.
SAM: There you go again, JC. I will always have my majority share because I buy worldwide in vast quantity and minimize my expenses by standardizing even though I try to tailor each store to the locale. No one has 100% of everything so I say “Bring ‘em on” and if you can do a better job in price (I doubt it) or service (there they may have me) go to it. After all that’s how I got started.