Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Thursday, June 1, 2023

Who is the “ideal” FreshDirect customer? by Kyle Phoenix

 


Meeeeeeeeeeeeeeeeeeeeeeeeeeee!

I am a Fresh Direct devotee, perhaps their owned whore, in some judgments.

I live in Manhattan, have for over a decade. and I discovered Fresh Direct after seeing their clever little trucks zooming up and down the avenues. And then one of my students mentioned to myself and other students that he worked at the processing plant in Long Island City. In an effort to always understand what my next generation students were talking about, I looked it up—-could this be a good line on jobs for other students? Then I saw what they do, connected to the tiny trucks zooming through the avenues and a connection was born.

I Am A Vampire

What I will tell you about my personal schedule, is that then and now, I am a night owl. I like the daytime——occasionally. But I’m about 4 to 6 hours off of when everyone is up and perky. I read all of the articles and suggestions about getting up early—-4a, 5a,, 6a, that all of the most productive people do.

I generally go to bed between 4–6a. It is more unusual for my to go to sleep early evening—-and I still wake up at 1,2,3,4a. I often go to sleep with the dawn rising. Yes, like a vampire.

But what does this have to do with Fresh Direct? In the past decade or so, teaching, coordinating programs, teaching university classes, I’ve been able to push my schedule to later. The first push was from 9am to 10am. Then from 10am to 2pm through 10pm. Then sometimes later nights so that I can rise and shine like I normally do at between noon to 2pm.

But being 4 to 6 hours off of the world means that I’m off from the world—-and the majority of the world is designing to coincide and support 6am to about 10pm….supermarkets included. There are yes, some supermarkets that stay open 24hours here in NYC—-Pathmark (which no longer exists) and West Side Market and Morton’s. But I would often finish teaching 3 classes for the day by 10pm—-which would put me at home in 15 to 45 minutes from Manhattan or some evenings later from an institute I taught in Brooklyn. There’s a West Side Market on 110th, in the area of Columbia 116th but if I were consulting away from the main campus, I would have to trek back to the market there or to one of their other city locations.

Fresh Direct though delivers as late as midnight. In my neighborhood. And more importantly I can set up an order, have it zapped to them and get home and a few minutes later they buzz and several gentlemen bring up boxes of food—-fresh veggies, mousse cakes, meats, dry goods, sauces, sodas, juices. It was also a boon when I helped a co-worker move, dislocated my knee—-and I was living in a 5th floor walk up (one of the downsides of living in the convenience of NYC—-you might have to settle for a walk up to have a larger apartment.) So they became amazingly helpful to being up groceries, I generally order about 6 weeks supply of, then I can stop at 7–11 or a corner store for minor items.

Is it/delivery more expensive?

Actually, no. Everyone thinks that it is but it isn’t. I rounded between West Side and Whole Foods (both more expensive), D’Agostinos and Gristedes (medium) and C-Town (medium to lower)—-yes, I know, a lot of energy and though goes into this logistically and financially—-but if you obviate walking to the store, standing in line, actual shopping time, and it all being carried up 5 flights and timed to exactly when I get home—-I’d pay a dollar or two more. Mostly the delivery charge is generally about $5. How so cheap? Volume, repeat business, lower overhead costs because they don’t have to maintain a brick and mortar store so the orders go through packers and some form of cashier and delivery workers but I’m willing to bet that the packers say cut up the meat AND put it into my 2lb package—-so a butcher/packer. The cashiers get the food orders and assemble them but don’t have down time dealing with customers directly so their efficiency and speed is probably multiplied 1 to 3x compared to an in-store cashier. And the delivery men, do only that—-deliver.

Plus, one of the soft controls Fresh Direct has over me is that they initially were very specific to zip codes, not delivering to every zip code. Here on the West Side of Manhattan you can walk down some streets and literally see walls, 6 to 8 feet high of Fresh Direct empty boxes out for garbage on garbage days. What this does is control if they’re only delivering to a range of blocks. (They used to exclude parts of the Bronx and Brooklyn—-I was trying to send an ill cousin food while in chemo and learned about the zip code segregation.) I literally was apartment hunting and stayed within the same two zip codes because one of the losses would’ve been no Fresh Direct delivery service—-I kid you not.

That means that a truck can then stop on an avenue and they can wheel out dozens of deliveries so truck/gas costs are lowered or absorbed by say 100 of us on an avenue paying $5 into the kitty—-which means we don’t have to be overcharged.

Is the food more expensive?

No, I’ve found it to be Medium, and as you can see from above, I move through several stores. Also here’s another point that people don’t factor in from the other side. Being single, no kids when I started my Fresh Direct entanglement—-I’m less price conscious. Now, personally, I’m thoughtful—-even having gone on a budget of $25 a week food right before I started at Columbia to make a job payout last for a year. My normal singular budget runs about $100 to $150 per week, which generally fluctuates the more or less cooking I do—-I cook about 95% of my meals—-maybe monthly I buy Chinese or Italian food and average dinners out twice a month and lunch once or twice. So I’m very conscious of food prices and I eat well, I like to cook so I like quality foods. West Side and Whole Foods consistently the best quality in meats, seafood, fruits and vegetables. West Side more expensive particularly by the university because it’s catering to fast go and grab students/faculty and they have about 1/4 of the store hand prepared meals, salads, baked goods, fruits diced, etc.. Whole Foods is similar to West Side but healthier yet again, that hand prepped within hours adding staff and fresh food costs plus the store housing the supermarket.

Fresh Direct is equal to Medium because you can also control the pricing of fruits and vegetables and more importantly meats and seafood. Generally meats are a hodge podge of sizes so you settle to pay more to get the amount you need. West Side is thoughtful in that they know they cater to less large families so they have individual meat pieces for one or two people. Whole Foods you can buy directly from their butcher counter and control the quantity/price—-the same holds for Fresh Direct.

Dry, canned goods and sauces—-I would caveat in here that cooking a lot myself, I don’t buy a lot of processed foods—-on the conveyor belt at stores my purchases are generally 50% fruits, vegetables—-green, 35% meats/seafood and then Pepsi and maybe a bag of low salt chips or a small pie or cake. (Yes, I cart judge.) I notice that people buy lots of processed stuff—-frozen foods, boxed crap, canned crap. I think my Fresh Direct costs are so general for me because I buy pretty much the same things from them as I do in person—-the exceptions being I stock up—-so several jars of say Rao’s 9the best sauces), multiple cans of tuna, condoms (Magnum XLs are $7.99 a dozen!—-double that in CVS, etc.), fresh juices, Pepsi (6 at a time), not much else—-maybe ice cream. Its also good for select/specialty flavors and items because like Walmart their computer system is always updating availability so I’ve never seen anything out of stock, like I have in person at supermarkets. I might also do bags of frozen vegetables but very light on processed foods of any kind—-I generally, while cart judging distinguish it by bright, colorful boxes. I rarely buy anything in bright colorful boxes/containers.

Fresh Direct is good for buying say multiple 10lbs of chicken breast, beef, steaks, pork chops, fish, lobster, shrimp at a time, and then divvying it up into freezer/portion bags. Which is how, as a mass, I use them for a 4–6 week stint to stock up.

Single people/smaller families, like me, are willing to pay for the convenience of time specific arrival, delivery men (whom I tip—-sometimes more than the delivery charge), a whole breadth of choices, online access and cart building, freshness of food, good packaging (I’ve only had one problem—-on the stairs the delivery man slipped and the juice bottle broke and damaged the eggs—-replace or refund—I took the refund) and ability to control quantity to control price. Those controls allowed someone with a slightly tilted schedule like me to get home by 11pm, get food delivery by 1130pm and even go out to a nightclub with a friend by midnight because I had no errands to run (I used to experiment with renting a Zipcar, dropping a friend off in Queens from Manhattan, so I could circle back to a 24 Pathmark in Brooklyn and bring food (that I had to lug upstairs, 10–20 bags, myself.) But eschewing all of that tie and costs I, they simply do the function better and more efficiently.

And their clever trucks, which I have even written about in my fictional novels, I love their trucks. lol

#KylePhoenix

#TheKylePhoenixShow

Tuesday, January 10, 2023

What is so bad about working in retail? by Kyle Phoenix

The three times I’ve worked in it as an adult, I liked it enough. But then I don’t invest my identity in “jobs”—-I’ve always had a side hustle, a small business, school (High and Collège) going on. I was a sales associate at Belk’s, Abraham & Strauss and Lord & Taylor. Then about a decade ago, while visiting Charlotte to help with my terminal mother, I took a job at Walmart just to get out of the house and not spend my savings/royalties to cover my general expenses.

I’m an extreme introvert, I’m learned-professional at being present, professional and extroverted enough for sales and dealing with customers. I like solving problems. And about 90%+ of the time I’ve been dealing with reasonable people, a few extremes but I generally hand them off to others (managers.)

I think what has been influential are two things:

  1. I seek to learn not earn at every job. A&S convinced me, Jim Johnson after an hour—-convinced me to take the job during the interview at 17. I’d been applying for a bike messenger job on 34th street and wandered over to the Manhattan Mall, in hopes of finding something more amenable. I was resistant because I wanted the base pay $7 an hour but was terrified of their commission structure, 8% on top of sales total mandatory of $2000 a week, He promised Sales training for 2 weeks. He convinced me that by having a resume, since I was 14, being in a suit and tie for a bike messenger job—-in comparison to the Black man who’d left before me, twice my age in jeans and a Bart Simpson t-shirt——my parents had developed me, so he could professionally develop me. Finally I broke down, figuring that a few months of such high hourly pay would equal months of part-time work. The training was spectacular and eventually, within about 6 weeks I was making commission cash and then eventually up to $1000 a week through the 6 Stages of Sales training was:

What are the 6 steps of the sales process?

Cultivating relationships are a vital part of the sales process steps

  • Define and refine your book of business. You might think prospecting is the first sales process step.
  • Prospecting and outreach.
  • Discovery conversations and meetings.
  • The sales presentation/demonstration.
  • Close the deal.
  • Post-sale follow-up.

Of course this is broken into individual/personal contact but we were also responsible for developing a Personal Shopping Book of 100+ private clients that we would invite to store special events for them.

It is to this day, skills that I still use from then, I was 17–18 years old.

I carried it over to Lord & Taylor and further into corporate world/professionalism. I think that many people who work in retail don’t consider how to develop their skills—-whether offered by the company or to GO BUY A BOOK on sales, sales training, and YouTube videos. Most people go to work and expect it to pay them, support them, be perfect and full of great supportive people. A job is a dildo—-you get out of it, the expertise you put into it, to developing the relationship. I found mainly the lack of interaction with people some times, waiting for customers, tedious—-but I find the same thing in all of my positions, careers, etc..

2. At Walmart they specifically had a Computer Based Learning-Training system—-computers in a back training room where all of the stores’ positions were learning modules that took a few hours to weeks, to go through. You completed the training and then interned in the department and boom, promoted. I had to complete a whole series of CBLs to start in Customer Service and then in the 6 months I was there, I did a handful more of Professional Development CBLs as different modules came along that I needed to expand my skills to encompass my work duties. I was there 40 hours a week, a mile from the family home, bus stopped in front of the house, ended at the mall—-or some days and nights I would walk home. During lunch breaks I would wander around the store, studying it, the systems, the computer systems, learning the store, or take a book or magazine into the handicapped bathroom and read. When I finally left, U-Haul and family in the parking lot, I went in and thanked coworkers and then hugged the manager for giving me something to do, to learn, to focus on, during a time of personal turmoil.

I work to learn, not to exclusively earn.

  • I seek out how many skills—-the register, the sales system, the stocking system, the sales system, the management systems, as many ideas I could find and absorb—-I can get. I’m not a bump on the log, I don’t resent work, I don’t resent customers.
  • I also like solving problems—-whether it’s an outfit, discussing colors and styles, things to try out—-the one thing I didn’t like about A&S was eventually the pressure to maintain high sales—-I felt that I might have to be less honest than I prefer being. I didn’t like being attached to the commission structure in a greedy/competitive way. One of the things I learned to do was take customers all around the department store and sell them things outside of my department.
  • I like working, even as I own my own things on the side. I often go to jobs to escape my life——keep my life separate from work—-no friends visit me, no deep relationships at the job, I never date from my jobs—-so that it’s like a bubble I go into and leave at the end of the shift. I leave it, the work, the people there, and go into a whole different bubble-world. What I’ve learned over the years working in retail and corporate world is that people infuse their work into identities and expect it to fulfill their identity/lives.
  • A job, like retail, is to gain skills, learn the external workplace, engage people, make a little money and move on. Another error is that people take jobs, which are not forward, ascending, skill based jobs, and expect it to have comparative fulfillment to a developed career at any and every age. A job is to a short term goal and long term internal gain to use at another, higher position. Because of teaching, computer, university, vocational, corporate training, I’ve had to evaluate work, skills, education—-which meant going back and looking at myself, my history, my decisions. Most people don’t know how to evaluate and develop themselves—-they use time, age, and pay rates to go from job to job, unless education allows them to focus on a career/outcome.

Perhaps what we need in America as a whole is more geared education and mentorship towards Life Paths. What to do, how we’re building, what building looks like. One of the things I’ve done for about 20 years is I maintain a Word file that has several repeated questions/answers per job, career, projects, etc..

  • What did I do?
  • What did I learn?
  • What did I learn how to do?
  • What did I not like?
  • What would I change?

That breakdown allows me to go back and look at the objective reality of where I was at compared to my subjective perception.

I also as part of various current classes and trainings I’m in and doing, go back and use older work/projects as reports-presentations for my classes/training. What I mean by that is in project management examples—-I go back and dissect work/projects into presentations. So I’m consistently evaluating myself, my past work, which helps to frame it, my work. I think that’s important to consider and do about one’s work history and education.

I honestly LOVED running a cash register—-at D’Agostinos supermarket, Wendy's, Pathmark and the above places. I LOVE books, and if I could make the same comparable salary as I do from my career and a small business—-I would be up in Barnes & Noble. I often fantasize about working there for shits and giggles. Yes, those are my kinky fantasies. lol

#KylePhoenix

#TheKylePhoenixShow

Sunday, July 8, 2018

Kyle Phoenix Answers: Why does Target have such weird prices? How do they determine their pricing model?

Sales/retail you're always looking at margins. I did a six month sabbatical at WalMart and loved every minute of it; a customer could bring me an item at customer service and in the multi store/state computer I could see price Q fluctuations. Xbox is the crack of the poor. $400 in store....but not everywhere. One thing the system allows you to see is the overall scheme is ruled by multiple factors, with a goal towards a designed price.
Say an Xbox is $200 wholesale, WalMart is trying to capture that other $200. But that may not be realistic with competitors like Target. So $125 is the decision margin on each unit. But you know you'll have to play against competitors so you open price at $400, online at $375, and Xmas order at $350 if the customer will take a voucher until December 27th when you Xbox wholesale is down to $150 of $375 if the customer pays upfront, guaranteed to get one before New Years.
So there are multiple Xbox prices:
$400
$375
$350
$375
Averaged: $325($125 uptick) $225 margin uptick after date
Margin achieved.
Now lets go even deeper. Walmart acts as its own distribution center. By doing so they turn to the Xbox manufacturing center and say in country we'll forward some of our semis to pick up, if shipped from overseas, just tag them in China and we'll bring them on our shipping tankers, cutting your costs, about 50%. So we'll just cut you the $100 by obviating that other $100. We'll sweeten it by moving a million upfront by November to beat the Xmas rush.....but we'll still maintain our offline/online price structure.
Now profit margins are:
$300
$275
$250
$275
Per unit.
At those margins if Target drops to $349, WalMart can drop across the board to $300 , have a $200 margin (66%) and still meet projected $125 margins on Xbox's. Even if a spread operations cost is $25 per unit to ship.
I watched WalMart play this price brinkmanship due to setting up a shipping structure, worldwide and a computer state that tracked items worldwide. At customer service the issue wasn't simply theft and floor shortage to turn items over from returns and exchanges but in 24 hours they had to be back on the floor to match the systems view of the store.
Target is doing the same thing. I used to think about going to work six months there, the smock being the only difference.

Smile, Kyle
KylePhoenixShow@Gmail.com




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Monday, July 2, 2018

Kyle Phoenix Answers: What are the likely consequences of the collapse of brick and mortar retail in the US?






I agree it is changing, in 2002 I started a hybrid b/m store---reselling books online. At first as a Rich Dad experiment and then it exploded into a fulltime operation and I was buying out bookstores across the country, renting a larger apartment to hold merchandise and then eBay selling. But it did slow down because of the slow intrusion of EBooks, I then stopped /sifted because I foresaw having to purchase massive physical inventory to equate out in sales. I honestly literally saw the 80/20 rule in effect, 20% of my new inventory sold out in a week but the red sat around the house slowly selling for another six months, eventually getting me to 50% remainder. Luckily I foresaw and felt this shift so had stopped my plans to open a b/m store.
Now I'm 100% digital, my books are printed and sent to customers, eBooks delivered too, profit margins are higher because of less physical activity on my part and Amazons, what took longer was them regulating and then opening the system ---about four years and then on my part intellectual property creation. I do more visionary work now and instead of cd/dvd resale or drop shipping, create products.
Combine that with the fact that I haven't had cable since 2009 and then combine those trends---we're moving to a class convenience society. I do Hulu and Netflix for $30 a month and maybe an average of three to five films in theaters a year, I'm an outlier because, yes, I love books but I'm normal in that I have a laptop to acquire my personal preferences in entertainment. I just bought a yoga DVD as digital that I had years ago from Amazon. I would have paid upwards of $20 but digital it was $1.99.
My sales margins often in physical were $6.32 avg per item, best week $26k but now my per item cut is at least $3 less but I sell more regularly and to as many corners of the world.
I'm mainly selling to middle class and higher. Poorer people here in NY flock to stores, fact a lot of ny feels like repetitive stores and apartments. In Charlotte it was houses, spaced malls but retail strips that an intrepid walker could stroll to. The supermarket there was an eight block walk, here five maybe but delis, etc in-between. Ironically here in the city I use FreshDirect, a food delivery service. I've controlled my apartment living to only neighborhoods they service....West End Avenue in Manhattan looks like an eight foot block long box wall on garbage day, hundreds of FreshDirect boxes.
Again middle class and higher.
More mixed neighborhoods more stores. Poor people, 15 to 40% depending on age and temperament, about norm of 15% still physical shop from a distrust of the internet. I've been internet/mail order shopping for 20 years and never had a problem, maybe all those years of publishing by mail and then sales made me better at it.
Outside of larger urban areas the sprawl of space I think will concentrate shopping to WalMart and malls and supermarkets and min WalMarts that are supermarkets but simply less of them, maybe half because normal consumers can now buy in bulk. I think clothing stores will hybrid, ill touch and try on clothing and get it sent to me and carry an inventory of my closet on my phone. Sizing tech and personalization features is the future. My favorite color is rd but not bright red, I like a deep brick, blood red, I should be able to direct my color preferences at an object and get it delivered. I also have jackets I love that I can't find replacements of, tech should do that too.
I hate malls, crowded stores and I worked one black Friday at a WalMart and got there late, I leave stores if the line is over 3 people, I often think rewards cards should be expedited lanes, I would pay a $5 or $10 membership fee to never wait in line. Some European stores have cashiers just open shelves and a swipe system. As we get to universal I'd systems, I think that's where we're headed.
Retail stores will exist, less of them but for the masses and poor. I did personal shopping years ago and it's a great job in a weirdly distant yet close way. Intimate detachment. I would pay for that service too, I even have a membership just never used it.
I'm not a good consumer and curiosity makes me a loyal customer to probably 15% of my e. I like a place (currently a hole in the wall greasy spoon with a surprisingly refined chef) that I can see moving into the gap commercial space in my building and cutting the landlord in for 20% and discounts for residents, something else I would pay for. I do delivery of hot food, average once a week, again low because I enjoy cooking but I go to higher end supermarkets and curiosity has me trying different items.
That sense of non-community in my shopping is a mix of middle class and affluence. I want it my way but I am willing to be seduced for the right parameters. Hence my relationship with Saks.
Back to entrepreneurship, all of my business goals are non b/m, ironically the biggest is a book tour cross country to Barnes and Noble's (670 plus) to surge sales in a second larger go around to books. I already do book club meetings from tv studio where I produce my tv show, I can tape segments at home, I do radio interviews from home and 99% of my publicity is online, I just recently started printing flyers of books and that's because of printing a digital newsletter out. The digital newsletter goes to 1 million, the physical....20? I'll do 100 of the quarterly magazine combo, a limited physical run.
When I look at street vendors/stores, I wad in a store based book club, I think of expansion to online. The reverse of how I did it. I suggested to the bookstore, book club they do that, online their inventory. I doubt they have because of generational and minority business thinking is very 19th century. I can attest to that because some of my initial digital products had a minority bent (ha! Pun! It was minority LGBT info) and when I altered presentation to include more diversity on covers, sales went up...just Black and Latino, my international sales were higher than domestic.
Blacks and Latinos domestically are still crossing the digital divide. (The bookstore above is Black owned, last one in Manhattan...they now include art and smoothies and host book clubs....and are oblivious to the internet. I even suggested we book club members come in one day, ISBN inventory store and upload to Amazon. Silencio.). But ironically the book club is join-able thru Meetup. I know more technophobe people of color, another mass keeping retail stores open....the higher minority population in NYC probably accounts for this regardless of class here.
Your local malls will be browner and cheaper in populace. Touching stuff to purchase will become hip, poor people, low class. There is a certain affluent air to the quantity and quality of my personal deliveries and I tip well.
Jobs will combine and be certified, security guard and cashier, sales person and tech support, customer service and stylist, chef and nutritionist. I see more low pay, eventually $15 an hour jobs are hand/eye jobs...hand things, see things, some customer service, security, etc populated by more under-educated (less than Associate degrees).
I tell my students less school less basic tech savvy (ms Office, desktop support, typing, ability to cross software because you understand how to understand software) is the 21st century skill. I took Java, JavaScript, html, do web design, graphic design, PhotoShop, premiere cc, illustrator, quark, PageMaker, advanced systems. Administration ----all of those allow me to think tech.
Thinking tech will become a retail necessary skill set for the new stores. At WalMart at customer service we were taught more of the system of WalMart which made us better at the synergistic marketing and sales and relationships, we could tell you regular, mini, superstore differences and after awhile whether an item existed and where in citywide stores but I will give major props to the computer based learning of WalMart being the best training I've been thru in twenty years combined with a buddying-mentoring relationship. That retraining type will be the difference.
40% of the population won't be able to elasticize their thinking that way. Which will lead to immigration encouragement in the late 2020s because they will be amenable. Plus they'll be bilingual, the next skill base necessity. I see more people and ads for Spanish, French and Mandarin, Cantonese speakers (I'm working on basic Spanish myself).
Retail workers and environments will change based on region and class.
I tell people I'm Counselor Troi but I won't crash the ship. :)


Smile, Kyle
KylePhoenixShow@Gmail.com




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Thursday, February 8, 2018

Kyle Phoenix Answers: What advice you can give for a small family-run TV/audio shop in a small European island?

Systems Integrationist, writer, teacher, entrepreneur
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