A couple days ago, I started to tell you about my favorite grocery store, Trader Joe’s. They really have the whole “far trader” theme down. Which is a giant separator from the commodity business of groceries. Click Here if you missed it.
One of Joe’s driving principles was to consistently deliver value to his customers. Trader Joe’s definition of “Value” means offering the best quality products for the best, everyday prices.
The biggest game changer for Joe was the addition of “private label products” to the stores.
Focusing on private label (products with “Trader Joe’s” name on them) simplified a lot of things, and removed a lot of costs – no more slotting fees, marketing fees, middlemen fees… They passed along those savings to their customers ( and still do), because the value of Value is invaluable
They understood then, as they do today, that maintaining their everyday focus on Value is vital, which is why they don’t have sales, loyalty programs, membership fees, or any other gimmicks. Instead, here is what they do:
- They buy direct from suppliers whenever possible and then pass the savings on to customers.
- If an item doesn’t have acceptable sales, it goes away making room for something else.
- They buy in volume and contract early to get the best prices.
- Most grocers charge their suppliers fees for putting an item on the shelf. This results in higher prices… so they don’t do it.
- They keep our costs low—because every penny we save is a penny you save.
You see, you don’t need complex gimmicks, sales or fees to deliver value. You just need an unwavering commitment to your mission.
What does this have to do with your business / practice?
Yes, EVERYTHING
Trader Joe’s mission is to deliver value. That is their guiding principle. Disney’s is to “create happiness”. Everything they do delivers and supports the mission.
What can you do to increase the value you provide? Don’t just look inside your industry.
How can you adapt, not copy, the five ways to add value to your business?
Later in the first quarter of 2020, I will be announcing an opportunity for you to have me be your personal “Client / Patient Experience Coach”. Creating value and defining your mission are some of the things we will be covering.
