Forget The Living Room: Amazon Is Fighting For Your Whole Damn House ! (Including The Kitchen)

Further to “The Unbelievable” portion of our recent E-News (see Chart 1 below) for Big Box retailers:

To further help “connect the dots” to the “Now Believable” and the soon-to-be “Necessity” (see Chart 2 - example for Best Buy), we believe this new article quoting Marc Andreessen, co-founder of Mosaic and Netscape, will be of interest.  (See Article Here)

“These two initiatives could allow Amazon to topple (or at least maim) traditional retail.

“Retail guys are going to go out of business and ecommerce will become the place everyone buys. You are not going to have a choice,” Marc Andreessen told PandoDaily in January.

“We’re still pre-death of retail, and we’re already seeing a huge wave of growth. The best in class are going to get better and better. We view this as a long term opportunity.”

“If Amazon will sell you the same groceries as Walmart and deliver them straight to your doorstep the same day you order them, why make the trip to the labyrinthine monument to capitalism at all?”

We look forward to discussing this with you when you and your executive team are ready for the Unbelievable to become your Necessity.

Thanks,

 

Gail

 

BREAKING NEWS - The Retail Sleeping Giants Are Awakening !

BREAKING NEWS

The Retail Sleeping Giants Are Finally Awakening !

Giving Big Box Retailers The Chance Of A Lifetime To Leap-Frog Amazon.

National Retail Federation’s (STORES.org) May 2013 lead article published last week is appropriately entitled “Moving Fast” which is a powerful double entendre for Big Box retailers.  (see National Retail Federation (NRF) article here).

Principally, this article pertains to the opportunity that enables your team to take a commanding lead in your industry as well as Retail In General.  It says:

“Late last fall, USPS joined a crowded field of retailers and logistics experts, all attempting to find the Holy Grail: the right product, price point and customer for Same-Day delivery.”  (see Chart 1 below)

NOW CONFIRMED:  The Consumers #1 Choice = Instant Gratification

For years, Big Box retailers have heard from us that their solution to Amazon is to focus on the retail consumer’s #1 choice of “Convenience” = Rapid Delivery = Instant Gratification = The Retail Holy Grail (Chart 1).

This NRF article confirms our R&D results shown in Chart 1, which is what the Grocery & Restaurant industries with highly time-sensitive products have known for years, but have never achieved. (Other than Tom Monaghan, founder of Domino’s Pizza, one of our founders.)

The consumer’s #2 choice is Price and their #3 choice is Widest Product Selection – as this article also confirms – and as Walmart has known for years.

It took Amazon 15 years in retail to help prove the point that Convenience (Rapid Delivery = Instant Gratification) is the consumer’s #1 choice.

Now that the roof on retail bricks & mortar stores has finally fallen in because they historically missed this strategic point, this article describes it as follows:

“Amazon has pushed the envelope on what’s possible and has gotten pretty successfully to two-day delivery on a lot of items,”  see Chart 2 for confirmation

Now The Sleeping Giants Are Beginning To Awaken To The New Consumer Reality.

The incredible opportunity for your company is:  These Giants Are Not YET Fully Awake as this article also attests.

This NRF lead article for their May 2013 issue details how Retail Giants are finally being FORCED by Amazon into giving the Consumers their #1 choice:  Rapid Delivery – at great cost and inconvenience and still missing the Holy Grail this article references.

However, this article only deals with “Same-DAY” delivery as Amazon is only doing Same-DAY in select markets, in limited time frame windows (not Same-HOUR 24 / 7 / 365) but this article correctly states:

“From my perspective, there’s a lot of inside-the-industry hype (about Same-Day), but it’s not the customer demanding it.”  Absolutely Correct.  They want Instant Gratification = Same-HOUR. See Chart 1

“only 4.2 percent of consumers use Same-DAY delivery frequently” Absolutely Correct.   83% want Same-Hour Fulfillment – see Chart  1. Offer it and discover the huge market you’ve been searching for – Chart 3 – and with ADDED profits most executives simply can’t conceive or believe – Chart 3.

This article confirms what we’ve been saying for years – Chart 1 – which is “The Retail Holy Grail”:  NOBODY “WANTS” SAME-DAY DELIVERY which means waiting for “something” to arrive “sometime” during the usual 4 to 8 hour time period, or 2 hour windows – same as “waiting for the cable-guy” and then at a huge cost that nobody wants to pay.

People Simply Hate To Wait

This NRF article also outlines why TheNowMall.com does the various things we uniquely do, that others have never done before, such as providing a huge, dedicated CyberValet® Shopper/Driver pool that is necessary to handle on-demand orders in 30 to 60 minutes during the various Peaks & Valleys 24 / 7 / 365 including Seasonal Peaks & Valleys as this article mentions, PLUS Free Delivery Etc.,  Etc. (see Charts 4 & 7 for more details)

Same-HOUR is less expensive than Same-DAY for myriad reasons that the retail industry can’t yet grasp simply because there are a lot of underlying factors that even this enlightened article is wrestling with.  However, we perfected how to deal with these issues years ago even before we did McDonald’s 30-minute fulfillment program or we couldn’t have succeeded beyond even McDonald’s wildest expectations (except we made it “look” too easy !). See Chart 5

But when the retail industry “finally sees the light at the end of the Amazon tunnel”, stand back and watch the stampede, to which this NRF article continuously alludes.

But for now, the Sleeping Giants are only thinking about “Same-DAY” not the consumer’s wish for Instant Gratification = Same-HOUR, simply because Amazon is now only doing Same-DAY, leading the parade again but in the wrong direction, as this article is very clear about.  Where are all the Industry leaders ?

While Same-Day is a huge step forward from their 3 to 10 day delivery position 9 months ago, it’s not the long term game-changer that is sorely needed – see Chart 2.

But the best is yet to come.

Your Chance Of A Lifetime To Offset Amazon & Walmart

As you have been reading our E-News Updates for some time now, you are probably already 90% convinced that only 30 to 60 minute Rapid Fulfillment can BEAT Amazon, while (as this article indicates), the rest of the retail industry is at least a year or two behind you in vision, INCLUDING AMAZON & WALMART !    

To support this:  Last year we were told by one of these still struggling Retail Giants as they started their Same-Day tests:

“Your concept is clearly different in its approach and perhaps one day, many people will shop this way. For now though, we are going to pass.  This is not to say "not ever", simply "not now." (due diligence officer, S. Jensen – August 2012)  Across the country, millions of people every year have been consistently ordering “this way” from our Co-founder, Tom Monaghan’s Domino’s Pizza, for well over 50 years !

In 2010, we were told by one of the largest Regional Mall owners:

“E-commerce will not affect us because 15% of nothing is still nothing” (due diligence officer, P. Flanagan – March 2010) now converting some of their malls to other rental uses.

This is Great News for your Big Box stores !

The MINUTE you open your first SuperCyberCenter Mall in Buffalo, NY,  for your industry competitive reasons against Amazon & Walmart; AS A BONUS, the other 25 top Big Box retailers & Major Regional Mall owners (who are also hurting because of Amazon) will immediately increase their due diligence.  Key media (including Neil Cavuto – Fox News) and most retail Industry Analysts will also immediately focus their attention on this newsworthy event.  They all religiously read our periodic E-Newsletters as Rapid Delivery is a trending topic.

This is because they all know:

“IF” Same-HOUR fulfillment can be done ECONOMICALLY, Profitably & Efficiently, without Interruption to their current store operations, which Same-Day delivery simply cannot ever do – a new world is upon them.

As nobody else on this planet has anywhere near our 50 years’ combined INSTANT GRATIFICATION knowledge and ability – it’s easy for us to prove that it’s practical with a major Marketing Partner.

When The Retail Holy Grail is conclusively proven via a simple test in Buffalo, NY –a small but well-defined test city, this will give you an enormous opportunity at relatively no cost to execute an Industry-Changing Business Method Worldwide that puts your stores light-years ahead of any and all competitors, including Amazon. 

This solution includes more than just Rapid Fulfillment; it brings you incremental in-store sales and ADDED industry profits as well as increased market cap/share value - as we have achieved before as per Charts 6 & 7.

Same-Day Delivery Failure Is Now Reported

Big Box retailers have been hit hard by Amazon and many are doing many great and positive things to offset this damage, but no strategy has yet risen to this extreme long-term game-changing challenge –including Same-DAY delivery.

Your current Same-Day delivery results have been costly and disappointing and have not met your expectations (as this NRF article clearly indicates is true for all retailers), nor has Same-Day delivery in the least offset Amazon’s nor Walmart’s growing threat to your E-commerce future - see Chart 2.

Your Once In A Lifetime Opportunity:

Before the Sleeping Giants wake up to the real future of E-commerce as the consumer is demanding (Chart 1) – now is your chance to Capture Dominance In Retail with a simple field trial of the Retail Holy Grail: 30 to 60 Minute, 24 / 7 / 365,  Instant Gratification, with FREE Delivery with us in Buffalo, NY; then Pittsburgh, PA; then Atlanta, GA, before your national roll-out of your SuperCyberCenter Network.

As Winston Churchill said:  “Americans always do the right thing . . . after they have tried everything else.” And Best Buy has tried everything else, as have most other retailers, and so far everything else has failed to offset Amazon – including Same-DAY delivery.

The obvious is upon you – Instant Gratification: 30 – 60 Minute Fulfillment – 24 / 7 / 365 = The Retail Holy Grail = Same-HOUR Fulfillment.

It’s almost here.  One major retailer is close to launching their first SuperCyberCenter Mall with us. 

Now is your chance to take the coveted Master Worldwide Marketing Partner Position and, in the least, take control of the future of your Industry – Chart 3.

We sure hope your stores join us in the Winner’s Circle.

Please call or email us ASAP.

Thanks,

Gail

 

V-Commerce: Amazon's Newest Weapon Of Choice. Trumps E-Commerce.

Big Box Bricks & Mortar retailers continue to react in conventional ways to Amazon’s growing power, which opens new markets for Amazon to propel their annual $13 Billion (27%) growth via V-Commerce.

Thus Amazon is becoming the Death Star of retailing as we know it today – virtually unchallenged. This continuing disarray is outlined in Chart 1.

V-Commerce (Viral-Commerce): To effectively use one customer group, media group or product group for significant commercial gain.

Why Amazon Is Happy Breaking Even With Online Grocery   (See Article here)

“AmazonFresh could be the online grocery service that finally breaks through to critical mass, all helped by its lack of financial burdens and mastery of logistics.”

“It could also mean that delivery fees are lower, order size minimums are waived,”

“and it certainly could mean that home delivery and in-store pick up will never pay out using traditional metrics and full allocated costs.”

“Finally, Amazon views steady grocery delivery as a “powerful way to drive frequent customer interaction,” and opens up avenues to entice consumers to shop for other products with each order.”

A conventional fulfillment & delivery system using “Traditional Metrics and Full Allocated Costs” misses all the above, putting retailers directly in Amazon’s path, not to mention the loss of infinitely greater “Frequent Customer Interaction” and the incredible Third Party Profits therein – from the $8.7 TRILLION worldwide retail market – including Groceries, Pharmacies, Retailers and Restaurants. (US market equivalent is $2.6 Trillion).

Unbelievable opportunity awaits and most retailers are still in denial, even Walmart; thus giving Big Box retailers a wide open field to win.

For years we’ve been urging Big Box retailers to offer:  “(1) The Highest Level Convenience;   (2) The Widest Product Choice;   (3) The Consistently Lowest Price.”

Most retailers are positioning themselves as unique and entertaining places to shop.  However, when Amazon’s V-Commerce strategy is in full roll-out, there will be panic in the executive ranks of most major retailers.

Amazon’s V-Commerce strategic move in Groceries simply increases these Three Top Consumer Choices further in Amazon’s favor against you, stealing your customers, sales, profits & market cap – see Chart 1.

Although dinosaurs were helpless against the asteroid that destroyed them, Big Box retailers are not helpless against the coming Amazon asteroid.

Given the above:  you have the knowledge of what’s coming.

Given the following:  you also have the knowledge of The V-Commerce Solution:   A SuperCyberCenter® Mall with 30 to 60 minutes, 24 / 7 / 365,  Rapid Online Order Fulfillment and 600,000 Third Party Sellers with stores nationwide, including Grocers, Restaurants, Retailers, Pharmacies – virtually all purveyors of time-sensitive retail commodities. 

It’s a tactic that Amazon and Walmart cannot match, even though they both have similar structures.

The Only Thing Left You Have Not Yet Tried ! – A  SuperCyberCenter Local Area Online Mall – Unbelievable, But Now A Necessity – Chart 2 (Best Buy example)

A SuperCyberCenter Mall with your company name on the marquee is similar to having branding rights to venues such as: American Airlines Center, Best Buy Theater in Times Square, Staples Center in Los Angeles, FedEx Field in Washington, Bank of America Stadium in Charlotte, NC; Wrigley Field in Chicago and MetLife Stadium in New York and myriad similar other V-Commerce marketing branding examples. Those companies paid a fortune for such prized branding rights.

Amazon is close to reaching this Pinnacle of The Consumer’s Choice – but still has a mountain, or more, to climb – however, Jeff Bezos is trying very astutely and will eventually succeed.  Now is your time.

For the sake of all your constituents – relent and Test This V-Commerce Solution with us, starting in Buffalo, NY, lest the Amazon asteroid strikes before you have your defenses in place.

Respectfully,

Gail

Gail Nichols, Vice Chair

The Now Mall

 

So - Showrooming Is Dead ? Actually, It's Just Beginning to Heat Up !

Best Buy company spokesman MattFurman told Bloomberg:

Best Buy is confident that its latest policy change will kill "showrooming" in its stores for good.

Starting on March 3, the retailer will price match all local retail competitors, along with 19 "major online competitors" in all product categories, whenever a customer asks for it, 

“There is no doubt that this new policy ends showrooming for Best Buy customers,”  said Mr. Furman.

This statement assumes: “Amazon Is Dead”. Far From It.

For some time now, we’ve been highlighting our EVERGREEN Pricing Strategy. (Chart 1)  It’s similar to what Amazon and others use successfully.

In a nutshell: “Use higher profits from one product group, or service, to offset competitive pressure on a key product.”

Amazon uses their long time “EVERGREEN” pricing strategy most effectively, applying their “Evergreen Profits” from Sales Commissions from their 4 million Online Third Party Sellers to maintain overall growth and margins while lowering key product prices, long or short term, as need be.

Our EVERGREEN Pricing Strategy is similar, except you use “Evergreen Profits” from Sales Commissions from your 600,000 participating Physical Third Party Sellers (Local stores and restaurants) to lower your in-store and/or online product prices, as need be.

Amazon’s Siege Is On:

It’s not just Best Buy that hopes to keep Showrooming under control with price matching.  So are Target and RadioShack, amongst others.

However, price matching, declared or otherwise, without a long-term offsetting “EVERGREEN” profit source has always been a very risky and uncertain long term DEFENSIVE strategy,

AND it further encourages consumers to use their ever-increasing number of Smartphones in your stores against your ongoing best interests.

Particularly, it invites price wars by web-only retailers like Amazon who measures profits in free cash flow, not margins:

For example, see these excerpts from this Bloomberg article:

·        Amazon scares everyone. There are multiple reasons, but a big one was summarized by Amazon Chief Executive Officer Jeff Bezos in a Harvard Business Review interview posted lasted week, which ranked Bezos as one of the top executives in the world.

“Percentage margins are not one of the things we are seeking to optimize,” Bezos said, to make the counter-intuitive point that he does not particularly care about making money.

“It’s the absolute dollar free cash flow per share that you want to maximize. If you can do that by lowering margins, we would do that.

Free cash flow, that’s something investors can spend.”

·         Bezos has been reliably saying this sort of thing for years. To him, it’s still a land grab. So he’s prepared to cut prices to the bone and add all those freebies to cultivate customer loyalty and drive sales growth.

Then he reinvests it all in more low prices and further expansion, driving additional customer loyalty.

·         If you’re a competitor, it’s the Bermuda triangle of business.

·         And by the way, low margins to Bezos are a competitive advantage.

Jeff Bezos is a Past Master at using his “Evergreen Pricing” as a Sales & Marketing tool effectively.

You Need The Same OFFENSIVE Tool to survive and win.  Only your SuperCyberCenter^© with 600,000 Third Party Seller local merchants is that tool.  (see BEST BUY example in Chart 1 below)

Without such an aggressive long term OFFENSIVE tool to generate a ‘War Chest”, you will not be able to withstand Amazon’s siege against your margins using their “Evergreen Price-Tweaking” to the “Ouch No-Go” level.

And Amazon can do this for years until they win, as they did against Circuit City, Borders, Blockbuster and so many others. 

The Worst Part For You Is:

Your “price-matching” strategy backs you into a corner – it simply tells Jeff Bezos how weak and therefore vulnerable you really are,

You need a permanent Offensive pricing / marketing strategy instead of a Defensive position, expecting the consumer to do your pricing job for you.

AND Amazon will further encourage their Prime members with the convenience and cost savings of FREE Delivery  against you.

All Bezos has to do is concentrate on the obvious and weakest competitor(s) first to simply and inexpensively lessen his siege time and costs against you.

His first target is ALL the top 25 Bricks and Mortar retailers in America, including Walmart – Why Not ?

After all – time is on Bezos’ side - he has all the time in the world – he has nothing to lose, only you do !

The Only Long Term Permanent Solution In Sight:  Your SuperCyberCenter with 1-Hour Instant Gratification with Lower Prices and Wider Choices than Amazon.

Over the last several years, since E-commerce clearly emerged, (Chart 1) you’ve tried everything else, including price matching, and nothing has stopped Amazon’s phenomenal growth against you. In fact it continues to increase.

You’ve also resisted the only Game-Changing solution in sight (Your SuperCyberCenter –  see Chart 1 for Best Buy example) for all the standard reasons such powerful new innovative solutions have always had to overcome.  Trying to do something like this alone looks easy, but it is deceptively difficult – see the first line in Chart 6.

But when you finally see the riches of the promised land, as in all our other Industry-Changing successes, (Chart 5) you’ll never want to leave. (Charts 1, 2 & 3). We Promise.

To truly turn Showrooming in your favor, only a SuperCyberCenter can do it quickly, efficiently & profitably by meeting all three major consumer demands that collectively Amazon can never match:

(1)    Better LONG TERM Pricing than Amazon (supported by Evergreen profits to you);

(2)    Much Wider Product Choice (including time-sensitive groceries, restaurants & fast food – with profit from sales commissions to you (Chart 1) as Amazon does so successfully);

(3)    Super Convenience – 1-HOUR Fulfillment with Delivery (usually in 30 to 45 minutes); The Retail Holy Grail (Chart 4)

And, it’s not just Amazon & Showrooming to Fear.  Google, Microsoft and eBay arealso Gearing Up.

Having the ability to lower prices LONG TERM (while increasing your sales & profits – as Walmart did)  has always been  “The Retail Holy Grail”.

Your ONLY choices are:   Be “slowly eaten alive” by Amazon or do something powerful to “Change-The-Game” to the consumer’s obvious #1 choice: “One-Hour Instant Gratification with Lower Prices & much Wider Choices”.

In today’s retail world, Amazon is Goliath, but we are David – Chart 1 says it all.

All you need to do is:   Make That Call to us to schedule your initial trials.  Prepare to assuredly win this decisive battle.

We’ll answer ANY remaining questions you may have that are blocking you from achieving the Sales & Profits in Charts 1, 2 & 3.

As well as stopping Amazon’s “Showrooming Siege” against you, Dead In Its Tracks.

Respectfully,

Gail

Gail Nichols, Vice Chair

The Misconceptions, Myths & Fallacies of Instant Gratification: The Retail Holy Grail

Today, virtually every senior retail executive is talking about “Instant Gratification – The Retail Holy Grail” and how they can exploit it to the fullest.


The only problem is: a huge Misconception has emerged as to what really constitutes Instant Gratification !

Internet Retailers, including Amazon (Huffington Post) and Walmart (24/7 Wall St) as well as USPS (Boston Globe) and virtually every retail executive seem to think Same-Day Delivery is Instant Gratification – except the Consumer seriously disagrees. (Chart 1)

Until retailers accept the fact that very few, if any, consumers actually want Same-Day delivery for myriad straightforward reasons, this Misconception “Red-Herring” will persist in leading retailers in the wrong direction. (Internet Retailer)

For years, most major retailers have tried to achieve The Retail Holy Grail of Instant Gratification, but with many fatal flaws and thus failed with colossal losses (Chart 6) simply because they were searching for the wrong thing in the wrong place with virtually no experience or knowledgeable help to achieve it.

Sadly, these retailers continue the same ‘square peg in a round hole’ approach today, including: Amazon, Walmart, Walgreens, Macy’s, Target, JCPenney, Sears and Best Buy, (Internet Retailer) joined by a host of misguided service providers such as UPS, FedEx and USPS; all laboring under the same Misconceptions, Myths & Fallacies outlined below.

All will therefore end up with the same results – costly failure, short and long term, not to mention frustration from wasted effort. Kudos to the eBay Now Same-Hour Delivery beta program. (Forbes) eBay will make a great future competitor IF they can figure out the profit model with a scalable workforce and the secrets to providing their retailer Charter Members the significant profits shown in Chart 2.

Interestingly, the Same-Day Delivery TEST results of the 2012 Holiday Shopping Season are now in for the retailers who were testing Same-Day delivery. Not surprisingly, their results were disappointing: Ho Hum. The consumer’s choice is clear: Same-HOUR: 83% versus Same-DAY: 33% as consumers forcefully stated as documented in Chart 1 (Internet Retailer),

The Same-Day Delivery euphoria is now conclusively over – and the new powerful era of e-commerce One-Hour Instant Gratification (the consumer’s #1 choice) begins with virtually no risk and huge rewards for those with superior vision and the commitment to implement our proven solution (see below).

Unfortunately, most retail senior executives will continue to gripe and complain about Amazon instead of doing anything truly creative, effective and powerful about it.

Nonetheless, the new powerful era of The Retail Holy Grail is disarmingly easy to exploit if you can successfully get past the following Misconceptions, Myths & Fallacies, and all the associated “Red-Herrings and Fatal Flaws” on the path to success.

MISCONCEPTIONS:

A. Same-Day Delivery Will Increase Our Sales And Profits !

REALITY:

1. To the consumer, there is nothing convenient about Same-Day delivery, so they simply won’t use it to the extent you need to justify its costs to implement and continue. (Internet Retailer)

2. It’s like waiting for the cable guy, or watching a pot boil; consumers hate to wait: it’s easier, faster AND CHEAPER to just go to the store and get it than waiting 3 to 5 hours. (Charts 1 & 3)

3. FREE Delivery in 30 to 60 minutes is something consumers simply cannot replace by themselves. Not only does FREE One-Hour Delivery save them time and money but it truly improves their life, particularly the 50% of people who are Mobility Challenged. Ask Them. We Did. (Chart 1)

B. Instant Gratification (FREE 30 to 60 Minute Fulfillment) Can’t Be Done Profitably or Efficiently on a Long Term Basis !

REALITY:

1. The Pizza Industry has been doing 30 to 60 minute delivery for the last 40 years. Tom Monaghan, founder of Domino’s Pizza, is one of our founders.

2. We did it successfully for McDonald’s, raising their profits 58.6% and raising their annual sales 14.89%. (Chart 4)

3. FREE One-Hour Instant Gratification costs retailers substantially less than either Same-Day or 3 to 10 days because it results in: (1) far fewer returns; (2) larger orders; (3) more orders; and (4) many more new customers (just to name a few).

4. For our Charter Member Retailers; the profits outlined in Chart 2 are AFTER all Network costs, including all service fees.

5. Many retailers have failed in their quest for The Retail Holy Grail simply because of lack of long term experience in learning where The Real Profits are and are not – the basis of all successful businesses. (Chart 6)

6. NOTE: To succeed Long Term, it takes years of dedicated rapid fulfillment experience (we have 35+) plus a Consortium with symbiotic relationships similar to what we had in place at McDonald’s (and elsewhere), which is what this blog post is all about. (Chart 4)

7. The opportunity now exists for true industry leaders to at least test Instant Gratification’s SuperCyberCenter© Consortium Network to win the coming e-commerce battle for The Retail Holy Grail.

MYTHS:

A. INSTANT GRATIFICATION Will Cannibalize Our In-Store Sales.

REALITY:

1. A significant number of MOBILITY CHALLENGED people simply CAN’T get to your stores which is why they order elsewhere. (Charts 1, 3 & 4)

2. Most consumers in your stores’ trading areas have at least one of your competitors closer to their home that they use the most – only Instant Gratification (30 to 60 minute fulfillment) can attract their dollars to you. (Chart 3)

3. Instant Gratification will INCREASE your in-store sales by an average of 15% which is therefore NOT cannibalization. (Chart 4)

4. Only Instant Gratification allows our Charter Member Retailers to further increase sales and profits to unheard of levels using our SuperCyberCenter Consortium Network. (Chart 2)

5. The only thing cannibalizing your stores is Amazon, enabled by your lack of an effective alternative solution.

B. We Don’t Believe You Can Do It Nationwide !

REALITY:

1. Chart 4 says we can. It also says we did it.

2. Our 35 years experience and myriad statistical analyses from various major companies with whom we collaborated, are available.

3. Our shared workforce of 60,000 professional, independent contractor, “Level 1” CyberValet® Shoppers, are available to our Charter Member Retailers, starting with 127 in Buffalo, NY.

4. Chart 6 should also give you a glimpse into our experiences.

5. Nobody else on this planet has any such experience, abilities or proof of years of costly field trials in various cities nationwide.

FALLACIES:

A. FREE One-Hour Instant Gratification Is Too Expensive For Bricks & Mortar Retailers To Offer !

REALITY:

1. 83% of consumers want One-Hour Instant Gratification, including the Mobility Challenged (50% of the population comprising seniors, people with disabilities, busy families, caregivers, etc.) (Chart 1)

2. Our One-Hour fulfillment cost (order assembly, packaging and payment before we leave your store, delivery) is significantly less than your current Same-Day and 3 to 10 day internal e-commerce fulfillment costs (assembly, packaging, added inventory, warehousing, delivery).

3. You also save your 20% to 30% returns cost that we 100% eliminate.

4. FREE delivery via our Network is 100% sponsored by us as our contribution to the overall Consortium Network marketing costs.

5. Only real Instant Gratification (30 to 60 minute fulfillment) can beat BOTH Amazon’s new Same-Day service as well as their Prime service.

B. Chart 2 Sales And Profits From Third Party Sellers Are Not Realistic And Therefore Cannot Be Achieved !

REALITY:

1. Amazon’s Third Party Seller Marketplace generates 40% of their overall revenue.

2. The profits shown on Chart 2 are sales commissions to which you have no added costs.

3. 600,000 Third Party Sellers nationwide, starting with an average of $126 sales each daily from their physical stores via our SuperCyberCenter Network, enable you to reach this target (easily achievable, less for smaller stores, more for larger). These local retailers need the same thing you do – more sales to survive against Amazon.

4. 600,000 Third Party Sellers comprise an average of 500 per SuperCyberCenter including retailers, restaurants, grocers, services (doctors, dentists, and lawyers), other business advertisers, etc.

5. Only by realistically gaining these Third Party Seller profits can you compete on a level playing field with Amazon and others.

6. Our unique “Secret Sauce” and patent-protected SuperCyberCenters (Chart 6) provide you these new sales opportunities.

C. We’ll Do It Ourselves, Our Store Staff Knows Our Products Better Than You !

REALITY:

1. Walmart and Amazon can’t do it alone – how can you?

2. Thousands have tried and all failed. (Chart 6)

3. No matter how big your stores and well-trained and equipped your staff, your Peak & Valley delivery times will alternately overwhelm and underwhelm your in-store and delivery teams (i.e. the same dynamic as in a call center). The solution is Third Party Seller participants generating sufficient orders in off-setting time periods that are all processed by our shared workforce of professional CyberValet Shoppers (i.e. the same solution we pioneered in our industry-changing virtual call center – Willow CSN – now Arise.com) (Chart 5)

4. Liability Insurance does not cover your Brand Name losses in major traffic accidents involving your staff.

5. Alone, you will never reach enough sales or profits to offset either Amazon or the profits shown in Chart 2.

6. Same-HOUR service is not possible without a full Consortium of mutually benefiting symbiotic participants.

7. Quality Control is of the highest importance. Historically, busy store staffs inevitably prepare packages for delivery with wrong or missing items. Then, at the door the customer is upset. It’s important for the CyberValet Shoppers to personally assemble orders and pay for them, taking responsibility for correct fulfillment. Our team already has the UPC codes, product description, the customer’s phone number and your staff’s help as needed. Let us do it seamlessly, end to end. (Chart 6, item 8).

8. Our experience and knowledge from years of Instant Gratification trials, trump everything in this new powerful era of Instant Gratification e-commerce retailing.

D. I’ll Wait Until Everyone Else Is Doing It – Then I’ll Consider It !

REALITY:

1. Fortunately, so will most other executives, thus leaving The Real Profits in Chart 2 for the retail industry-changing thinkers and innovative retail leaders like Jeff Bezos, Sam Walton, Dick Schulze, just to name a few.

2. If you wait until everyone else is doing it, the best e-commerce locations and opportunities will already be taken.

3. Unless your store sales are increasing over 3% annually AND your e-commerce sales are increasing over 30% annually (chart 2), your current business method is stagnant and needs a strong boost.

Call or email us your remaining concerns that are blocking you from achieving The Retail Holy Grail sales & profits shown in Chart 2. Let’s get together NOW to provide your customers with REAL Instant Gratification – One Hour Fulfillment.

Respectfully,

 

Gail Nichols

Vice Chair, The NOW Mall