Jeff Bezos is one daring dude. (Wanted to use the F-bomb, but mom might be reading.) By purchasing Whole Foods he sent a shiver through the stock market, knocking some competitive grocers down significantly. He announced yesterday that Whole Foods will cut prices beginning this Monday. Some analysts predict as much as 15-25%. Oohfah. Mr. Bezos doesn’t give a rat’s ass about profitability. He has enough money in the bank to lose near-term so he can win long-term. A player.
Were I Mr. Bezos, here’s what I would do. Take it a step further. Reduce prices even more for one whole month. Bring prices down to Aldi range. Costco range. But only for a month. Use it as a “trial balloon.” Trial is a promotional tool known for breaking behaviors. Once people are actually in Whole Foods and shop there a cycle or two, they will be fans.
Many people who volume shop at Costco and Sam’s Club throw away perishable food. “I can buy 20 tomatoes for the price of 6. Even if I toss out 10, I come out ahead.” Whole Foods can and will educate shoppers about better-for-you-food, healthier shopping and less waste, something that’s not happening in a Costco or BJs.
The promotional month will be crazy — with high traffic and supply hiccups, but it will be worth it. “Prime” the Amazon pump, Mr. Bezos. Prime the pump.