An article trying to explain the huge success of Trader Joe’s stores highlighted some intriguing points:
- Company buys direct from manufacturer, striving to cut out packaging/transportation/distribution middle men.
- Quality of products carried is more important than Quantity of choices
- Company a supplier’s dream – pays on time, no extra charges for advertising, coupons and slotting fees to vendors
- No company debt and all growth is funded from it’s own coffers
- Engagement of employees
- Product placement based on needs of shopper, not by profit margins of items
Here’s my translation of this list:
- Customer service and quality for good price
- Responsibility to suppliers, customers and employees, rather than stockholders and dividend checks
- Quality over Quantity
- Quality products and direct business deals counts more than profiting from those who have enough funds to ‘buy into the marketplace’
Apparently, Trader Joe’s follows the same recipe your local Free Market Farmers Market vendors do…..