Question

Topic: Advertising/PR

Competing With Costco

Posted by mickey.griffith on 4/29/2009 at 2:24 PM ET 25 Points
I have a client that runs a business buying pallettes of merchandise from big box stores including Costco and many others. These items are customer returns that still have manufacturers warranties and are in fine condition. He is able to sell them for less than the big box stores.

The issue with marketing for this business is that the pallettes he buys can contain a variety of products that he won't know the contents of until after he's recieved them. So essentially, he has no control over the product lines that he's selling and may have anything from baby diapers to plasma tvs. My thought is that this issue reduces his marketing strategies to price, conevenience, and customer experience.

One of many tactics that we're employing is street corner sign-spinners. Location is one of the issues that the client has and the belief is that many people in the neighborhood just need to know where he is. He is in close proximity to a major traffic intersection where we will position the signs. Again, this is only one of many tactics we're putting in place. We are also working on referral networking, targeted mailings, cell phone marketing, email strategies, etc.

So to get to the point, I'm looking for ideas for the signage that will compel people to come take a look at what he has to offer. I can't say "Check out our TV's" because he may not always have them. He may have clothing and housewares for that week.

Ok, I'm done rambling... Your thoughts?
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RESPONSES

  • Posted by bill.hall on 4/29/2009 at 2:37 PM Member
    I think the best approach is to brand it as a discount new items store where items change weekly (or whatever frequency that applies). Your direct mail can have a reply card with multiple options - with one of them having them go to a landing page to subscribe to a weekly (again based on frequency) newsletter. This way, people can be notified of the new items as they come in and always have new reasons to stop by.

    It can be called the "Secret Deal Update" or something that motivates people to look out for it and expect great bargains on items they are ready to buy. I also would set up this person on ebay to unload these items and then get buyers to subscribe to the newsletter or notifiation system. Hope that helps.
    Bill
  • Posted by Mkter on 4/29/2009 at 3:18 PM Accepted
    Mickey-Griffith:
    I would suggest maybe considering a website where he can name his site with a catchy clear name so it's obvious of what deals he's selling. Perhaps -
    -This Weeks Deals
    -Brand Name Deals
    -Discounted Deals

    The site wouldn't necessarily be an e-commerce site but instead a site that would have to explain how this item could be this and next. week something different. In addition, he could do local advertising ie. The Flyer, Penny Saver type advertising to promote the site, draw traffic to view his items on hand and draw people to inquire weekly/periodically however way he brings in his goods. Note, that this type of advertising covers many, many neighborhood clusters - so you'll definitely get local people if that's the focus, you just have to ask for the neighborhoods or zip codes. Many times these smaller type circular advertising vehicles will allow FREE Ads if they're under a certain dollar value. So he can describe 'x' item and include Tel. and website address for full viewing of his items.
    Hope this helps.
    csmith.
  • Posted by CarolBlaha on 5/2/2009 at 11:26 AM Accepted
    Youre not competing with Costco.

    Look at this company, they deal with 2nds only. And do a great job of marketing. https://www.sloanescarpetsecret.com/.
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