As a domainer, you hear certain expressions so often that they start losing their meaning. A lot of times, you need to see offline examples in order to understand just how true some of them are.
When it comes to traditional real estate, I’ve seen quite a few but one of them became obvious today, so I’m going to share it. I live in a fairly small town and there are a few huge supermarkets. The owner of let’s call it SupermarketA spent a LOT of money and built the supermarket in an excellent area. The owner of SupermarketB, on the other hand, settled for some less than stellar real estate.
Now here are a few facts:
1) SupermarketB has better prices
2) SupermarketB bought and operates busses which bring people to the supermarket free of charge
3) there are small billboards such as “SupermarketB Is Just 2km Away” plastered all over town, literally all over town
4) SupermarketB spends a fortune on marketing
And despite this fact, SupermarketA is doing better. Going there is just so convenient that a lot of people don’t mind spending an extra buck.
Location, Location, Location!
The owner of SupermarketA built his business on a solid foundation, whereas the owner of SupermarketB spends a fortune each month trying to make up for the fact that the location of his business sucks.
I’m sure you can draw your own conclusions 🙂
December 8th, 2011 at 1:48 am
I am curious how much better the prices are in the bad location supermarket?
December 8th, 2011 at 11:23 am
@Xdreamer: overall, they’re definitely better but it’s not a huge difference. No matter how great your location is, you can’t get away with unreasonable prices 🙂
December 8th, 2011 at 1:41 pm
Fully agree here I think location matter a lot.SupermarketB offering many lucrative offers to customers to increase sales and MarketA already getting good response due to best location.The owner of it spent a lot of money to buy place here.