Sunday, January 27, 2013

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.


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


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 !


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.


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


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 !


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.


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


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 !


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 !


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 (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 !


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.


Gail Nichols

Vice Chair, The NOW Mall

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