Big W is showing that price beats customer service and any other reasonable value proposition by discounting quality brand-name calendars by 35% months out from the New Year. While I understand that discounting is the point of difference for Big W, they don’t apply a similar discount to some of the junk they sell – cheap products from overseas on which they can whack a terrific margin and still offer them at an apparent discount.
Suppliers should see this – that Big W discount, from what I can tell at least, brand name products more so than it’s own stuff. I guess this is because consumers can;t easily price compare their own stuff.
The way for us to compete with this predatory pricing – and that’s what it is with 35% of 2013 calendars this time of the year from such a big retailer – is to leverage a point of difference. Those newsagents directly affected by this Big W move need to promote calendars in a competitive way: a package deal, a competition with each calendar bought going in the running, a buy this and get that deal or a discount coupon given with each calendar purchased.
Another way to compete is on range – check out the Big W range in the store near you and focus on your range point of difference. This is our approach. calendar sales already this year are up 15% on this time last year and we’re not discounting. We will not discount prior to the start of 2013.
It might be worthwhile complaining to the ACCC about the Big W calendar pricing too.
Big W would not be discounting if the suppliers were not coming to the party. Suppliers have a lot to answer for but their day will come when they get spat out by the big boys and they come looking to rebuild our relationship.
They are also not the only ones offering discounts this far out, most outpost shops are doing it as well.
In this climate most people will buy the same item at the cheapest price hands down no matter the service level.
Our plan is to be aware of what they stock that is heavy discounted and staying away from it, be it books, DVD’s calendars or stationary and offering alternative brands or stock types. No use being seen as expensive by savvy consumers, but still offering a great range.
Sorry guys being a newsagent I should know stationery is with an e not a. got to make money so no point standing still
Mmm must be hiring the marketing staff from the same company that News ltd use.
Brown Trout calendars aren’t they ?
Must be getting some sort of deal from BT to do that straight away.
Yeh, we dumped Browntrout this year for that reason.
We have sourced our own calendars from an importing company. And the prices we are paying, we will never use Browntrout again.
My suggestion Mark, vote with your feet!
The post is more about Big W discounting a category that does not need to be discounted and that they could be using predatory pricing tactics to achieve this.
My calendar sales are terrific and the margin exceptional.
Hi Amanda, Could you please post about who is supplying the calenders other than Browntrout and Lane wrigley?
Your help will be appreciated