Gerry Harvey says he doesn’t know why there is negativity toward him – he was on TV again this week saying this. His Harvey Norman retail business grew on the back of a price pitch and their relentless promotion of easy access to finance. The company is not remembered for promoting customer service or brands. The TV and radio ads were all about price.
There is no shopper loyalty when people purchase on price.
Now, with sales falling and profits sliding, Gerry wonders why there is negativity toward him … he has not built a sustainable relationship with his customers. This is what happens when you promote almost solely on price.
While a price pitch may get you some extra sales today, it is the easiest differentiator for a competitor to attack you on tomorrow.
In today’s world of easier than every price comparison and of new-model online retail operations, in Gerry Harvey’s space it really is about price and he has been caught with an out of date and expensive model that struggles to compete.
Newsagents who promote price as a differentiating factor over the long-term and outside of seasonal sales face the Gerry Harvey problem.
Newsagents also risk a challenge down the track when the transition from print to digital reaches a tipping point, when more lottery purchases are transacted online than in retail and when more emotions are expressed digitally than via a greeting card.
We need to work today to ensure that we are not the Gerry Harvey of tomorrow as there will be no parachute and no pity.
It is lonely sitting atop an outdated business model.
Actions we take in our newsagencies today can help ensure that this will not be us. But it’s up to us. Our future is in our own hands.
Why single out Harvey Norman, did he offend you? Retrovision is in admin due to price deflation, JBHIFI downgrades profits because of less sales, WOW goes belly up but you seem intent on bagging Jerry Harvey at every chance you get, Whats the deal?
I went to harvey norman a few weeks ago , i recieved excellent customer service they were very helpfull . i walked in for one item and walked out with 3 and i even scored a free cupachino on the way out (pays to pretend to have an interest in the cupachino machine )
I bought a fridge at Harvey Norman recently. Best range, service, delivery and good price. Overall…..flawless.
My experience with our local Hervey Norman has differed greatly over the years it seems everytime a I go in its a different experience can go in one day and wait 1/2 hour for staff to show interest and other days im greeted and helped straight away some consistancy would be nice
My Dad bought an all in one IBM PC just before the GST came in, from Hardly Normal.
Upgraded the RAM from 512MB to 1GB.
The RAM was mismatched. It wasn’t until after that happened, it was realised that HN was a glorified franchise.
Be weary of HN… GH owns the building but everyone inside it is unaccountable to his brand. You can’t complain to Gerry when things go wrong…