Who doesn’t love Aldi?
Lovely, tasty food at a fraction of the price you’d expect to pay at one of the big four.
Aldi’s popularity has increased massively over the last few years, and some interesting research undertaken recently indicates that Aldis in France, Germany and Spain are EVEN cheaper.
The study found that the same collection of goods that would cost £44 in London costs just £26 in Paris and £23 in Berlin.
I think there’s a pretty powerful lesson for UK businesses here…
Just because you can sell something at a certain price, it doesn’t mean that you should. Aldi could be even cheaper in the UK, but they’ve recognised that they don’t need to be. They don’t need to have margins that are as tight as can be. They don’t need to use loss leaders.
In short, they’re positioning themselves based on the market they’re selling to. So in Germany, they know that they need to be cheaper, so they are cheaper.
However, in the UK they’ve analysed what the cost of food is, thought about the amount of tax that shoppers will pay, and come up with a solution that makes their customers happy, even though it’s not as cheap as in other countries.
The lesson? Do your research. Find out what your market is like. Work out how much your customers expect to pay. Once you know this, you’re in a position to make sure your product represents great value. And as we know, value is what it’s all about!
Have a great week – and keep FIT!
FIT Tip of the week
Remember – Some people dream of success – others wake up, smell the coffee and work damn hard to achieve it, ‘cos they know that those on top of the mountain didn’t just fall there!