All you believe…may be ALL WRONG – Belief #5

Misconception #5 – Lower Your Prices and Make it Up on Volume

(Read time approx. 3 minutes.)

This is the fifth misconception in a series of six. The concepts being discussed here will likely be counter to your beliefs. The comments left on the previous posts are quite interesting so you may want to go back and read them. Click HERE to go back and begin with the first post related to this series.

Possibly one of the greatest travesties to befall the independent garden center as an industry is the fallacy that if you offer lower prices you will “make it up on volume”.

This is what I  call Fifth Grade Economics. The general level of knowledge about economics in our industry was learned in fifth grade social studies class. In my fifth grade class Mrs. Woods taught us about supply and demand, and how if you lowered the price you would “make it up on volume”. Unfortunately this same macro-economic principle has been perpetuated in higher education and has not been balanced with understanding of the micro-economic application in an independent garden center serving niche demographic and psycho-graphic customers.

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Open Letter to Independent Garden Centers

Read Time: Approximately 5 minutes text, 15 minutes with links and video.

Friends,

Independent garden centers are my future. I am a fortunate person to love what I do and do what I love. I sincerely want that to continue, and I realize it is entirely dependent on the success of my clients.

Today I feel compelled to share with you some information you would probably rather not hear or would rather not consider. Sticking your head in the sand is a possible reaction to this.

Consider carefully how you choose to respond. This could be a decision that changes the course of your business and your life completely within a very few short months.

Is the sky falling? No, it definitely is not, however, just because the sky is staying where it is does not excuse us from examining other things that may be falling.

What Affluent _ _ _ Love.

Future Fans?

Men are still a big part of the garden market.

If women make over 70% of garden related purchases what percent do you think carry the interest in food?