August 3, 2006
Internet Killed the Retail Store
Trivia Question: Remember the very first song played on MTV in 1981?
Answer: 'Video Killed the Radio Star' by The Buggles
Hypothetical Trivia Question: In the early 21st century what led to the ultimate demise of the retail store concept in use around the world for several hundred years?
Answer: The Internet
Think about that for a minute. Can the Internet actually lead to the downfall of offline retail stores? For example, defunct retail store chains that were in business for perhaps, like The Hudson's Bay Company was in Canada until about a decade ago, since the late 1600's?
I surmise that it can, it will, and it is doing just that.
Let me explain through a couple of personal experiences...
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My first experience: I wanted to replace my now 10-year-old NordicTrack Skier Elite with another exercise mode that my body could work with as part of the ever-increasing struggle to keep the fat off my midsection. I realized that doing what I did before I started using the NordicTrack would be the answer to this struggle which seems to have hit a roadblock as of recently.
I decided that I needed to go back to using a modified road bike converted into a stationary bike using a special magnetic contraption that made this possible. Doing this back in the early- and mid-1990's was what was primarily responsible for me losing almost 40 pounds off this carcass at that time.
So, seeing as how I wanted to again pursue this exercise workout methodology I would need the proper equipment - in this case a road bike and another one of those magnetic contraptions to strap it to so I could use it conveniently and frequently indoors.
The road bike was easy to get at the local WalMart Supercenter; however, the magnetic thingy was a little more unavailable so I had to search for it.
I went into one of the local retail bicycle shops here in Phoenix that has been around for almost a century in the Valley of the Sun and I inquired about getting another one of those magnetic thingies (which I came to learn were called magnetic resistance trainers and were pretty much now manufactured by a company that coined them with the moniker of Cycle-Ops.)
However, in the store I was told that the only Cycle-Ops model that they had in stock that had the features of my old magnetic (now-defunct) magnetic resistance trainer model would put me back about 229 green ones from my checking account. Ouch.
After hearing that sticker-shock price, I told them I'd get back with them. Needless to say, I never did. I'll explain that in a bit.
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My second experience: I also needed to buy a rooftop carrier for my new SUV since I wanted to be able to carry a lot of stuff during long trips and also have my boys packed in their carseats too, and have room to breathe inside the vehicle. And since room inside an SUV is at a premium with this many needs to be met, the solution to these needs was: I needed an external rooftop carrier for the vehicle.
And in case you're not completely clear as to what a rooftop carrier is it's one of those plastic shells (like a big piece of luggage) that is strapped to the top of your vehicle and onto the roof rack. However, I decided that I didn't want the plastic type since it was too bulky to store when I didn't need it.
So I went to the local sporting/camping retail store chain in Phoenix and inquired as to what they had in stock in the collapsible fabric-type of rooftop carriers. The only model they had in stock that was of decent quality to withstand a 400 mile road trip was made by Thule and costed out at $185 US. Again...ouch.
And after hearing that sticker-shock price for the only model they had in stock, I told them I'd get back with them. Needless to say, I never did. I'll explain that next.
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So what does all this mean? Well, for starters I saw that a pattern was occurring here with these two recent inquiries and so I realized that I needed to do some sleuthing on my own, instead of simply relying on the expensive in-stock supplies of these retail stores.
Essentially, I surmised that I had to use the Internet for these somewhat out-of-the-ordinary purchasing needs. And, wow, did it come across big-time for what I wanted. And at prices I could afford.
I ended up getting the same model of that Cycle-Ops magnetic thingie, okay, 'magnetic-resistance trainer', for $167 US with free shipping and no taxes. I saved over $80 overall.
Also, I ended up getting a lower model of the Thule rooftop carrier at just over half the price of the one that was being offered to me in the local camping retail store. That was another $80 saving.
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So, what's my point with all this rambling?
Well, in the one instance I was able to get the item I wanted through an Internet purchase at a substantially lower price overall. And I received it in four days from my order day. And in the other instance, I wasn't limited by and didn't have to purchase what the retail store had 'in stock'.
Those are both cool concepts to realize. Why?
Because with the Internet one is no longer limited to paying for an offline retail store's higher overhead (employees, property taxes, leases, insurance, etc.) through higher product prices. And one is no longer stuck with what the retail store has in stock as to evidencing what their buying choices are.
Instead, with the Internet one simply has to 'Google' that item's title or manufacturer name and up pop thousands of places to view the entire product range of that manufacturer and in most cases available websites where one can buy it too.
Another way to say this: There are no store shelves on the Internet which translates into more product options for the product buyer. And there is lower overhead on the Internet which translates into, in some cases, substantial savings for the product buyer.
However, commerce is still commerce. And one cannot do all their shopping online (until Amazon figures out how to ship automobiles via UPS ;-) so the local economy is still supported in most instances via local taxes.
But it's just so neat to be able to have that ever-powerful resource called the Internet literally at one's fingertips via the 'Search' button.
So, getting back to my original trivia questions...
DID video kill the radio? No, but it certainly forever changed what humans do to satisfy their entertainment needs. Think mp3, ipod, dvd's, and the hundreds of televised music stations.
WILL the Internet kill retail stores? Maybe, in time. But, for now at least retail stores are being forced to realize that today's consumers have a LOT more choices than what the retail stores are able to stock on their store shelves.
Now, if only someone can explain to me why it was when I went into a huge national electronics retail store chain and inquired if they would be able to meet the $100 US cheaper price tag on THEIR OWN WEBSITE for a Panasonic surround-sound system and they said they couldn't do that...
The Internet.
Ya gotta love it.
Written by Andre Best
President, Ultimate Results, Inc.
http://www.andrebest.com
'Learn About Life From Another Perspective'
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Posted by Andre Best at 7:28 PM | Comments (0)