Showrooming strikes again. But this time, Target strikes back.

Observation:  Target has decided to stop selling Kindle e-readers, according to a story from USA Today.  The article suggests that part of the reason might be what is called showrooming; when people take a hands-on look at a product in store, but then go online (either at home or from their phone) to buy the item at a cheaper price from an Internet vendor.  The story indicates that another motive might be the Apple mini-stores that are scheduled for launch in a number of Target locations (Apple’s iPad would be considered a direct competitor to Amazon’s Kindle).   Click here to see the story.

Implications:   One way to beat “showrooming” is to offer a product enhancement, service, or sales experience that online vendors can’t deliver.  It seems to me that Target has decided to do just that… but just not with Kindles.

[To see our prior stories on Showrooming, click here.]

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

If everybody’s doing it, low price is no distinction

Observation:  Today’s Supermarket Guru newsletter from Phil Lempert opines that consumers have come to expect great prices everywhere they shop.  So, to point out the obvious, just having a low price does not make your company, product or service “special.”  Click here to see the story. 

Implications:  A unique selling proposition must be—before all else—unique.  When the market was flooded with discounts during our recent economic turmoil, retailers were forced to become more thoughtful and creative.  Examples?  How about free Wi-Fi in the auto dealer service department so I can work while I wait?  A list of wine pairings offered free at the grocery store where I buy fresh seafood.  Or a hands-on test drive (like the Apple store). 

 Discounting can be a race to the bottom of profit margin.  It’s what you do under the sale sticker that makes you special.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.