When was the last time you shopped there? Last year, more than 85% of all Americans did, with almost 50% doing it weekly.
If that’s not you, you’re not getting the massive thing that’s happening.
They sell 30% of all the Tide that gets sold. 30% of a lot of other stuff too. They have a huge share of their sales in private label goods, and it’s getting bigger all the time. Why? Because they’re C H E A P.
If what you sell is an average product for average people, tell me why those people won’t try to find it at Walmart. And if they try to find it at Walmart and there’s a private label or a competitor that just as average, but cheaper, why won’t they switch?
The lesson of Walmart (for consumers) and the web (for business AND consumers) is simple: If it’s not worth crossing the street for, you’re in a commodity business. And if you sell a commodity, you don’t deserve a profit. Trying hard doesn’t count.
The profit comes not from making your profit marginally better (because no one will notice marginally better, because people don’t care about you). The profit comes from finding a free prize and offering it to people.