Pomegranate Supermarket had its grand opening this week, amongst lots of buzz.  Some of the local papers weighed in. Here is what one blogger’s response was.

Would I shop here? Yes. But you must be very careful about the prices and about the "sales" items which may be much more expensive than the other neighborhood stores. 

I strolled in last night and I must say the place is stunning. The fact that they were quite crowded at 9:15 on a Summer weeknight is also a good sign, although it might just be the novelty of something new and buzzworthy that is bringing in people. As far as the prices, I would say that some are pretty reasonable while other items are about 15-25% higher than the other stores in the area.

The challenge will be whether they can sustain a steady flow of customers who want high-end, fancy cheese and willing to spend $25-50 more per shopping trip. A year ago, when the store first started undergoing its metamorphosis, Whole Foods was the all the rage and people were demanding higher end stuff. Now with the economy putting the squeeze on grocery shoppers, and with Whole Foods feeling it too, Pomegranate might be hard pressed to win back the market share that was lost and the money that was invested in their 14 month closing of its doors.

OCNM Spin

Here is what I like about what they are doing.

Presentation is a major portion of shopping experience and they certainly score big points in that area.

The personnel are very clearly distinguishable with uniforms. I can’t tell you how many times I had difficulty finding a store employee when I needed one in the past. There are area managers for each of the sections. I was hoping to grab a chat with Mayer Gold, the head manager, but he was quite busy as you can imagine. If they can provide stellar service, I think that they will really develop a loyal base.

Free parking lot with parking attendant.

 I was hoping that they would have a website where you can shop online, but one of the owners informed me that they rejected the idea as too much trouble. I wonder how it is working out for Glatt Mart. Pomegranate hopes to have a website up soon, but I am guessing that it will just have information and specials.

 
 

When the Kosher Gym originally opened in Brooklyn, it was quite a different world. I would imagine that the gym had a pretty sound business plan at the time and was pretty successful. However, the internet revolution changed everything. Customers are more empowered than ever.

Here are some points that every business owner needs to know about doing business in this era:

1. Focus on customer value - not ROI
It's a very competitive world out there. If your business does not establish itself as providing value for its customers, it will churn right through them. If your vision is only on how much you are making per customer, you lose the opportunity to build long term loyalty. Marketing budget is better spent keeoping your customers happy than trying to acquire new ones. Happier customers means more renewals and referrals as they will want to share their experience with others.

2. Open the communication channel
Every time a customer complains, it is an opportunity - a gold plated chance to engender good will and loyalty. It also presents you with a new insight into how you can truly innovate and grow.


3. Follow up with "Deadbeats"
You have the ability to track the comings and goings of your patrons. A call every now and then from a gym rep can go a long way in helping you help them get the most out of their membership. When you wait until their membership has lapsed or is close to it, you may have already lost the game.

4. Build a community driven website, not just a brochure
If all your website does is provide pictures of your facilities, you send the message that the site is about you, not them. There is a place for your brochure, but you can create a great value add for your customers by having a site where you can post blogs, videos and tips. Invite your members to take part. If you have done a good job making them enthusiastic about you, then they will do most of the "heavy lifting" for you by engaging others. Plus, it will be a great way to Point #2 as well.

5. Don't pretend the competition does not exist
You may be the only "Kosher" gym in town, but don't forget, you are competing against other separate gyms. Actually, your biggest competition is yourself. Your patrons don't need a gym - they need to be fit. If they don't sense that they are getting that value from you, then they will leave. They may buy equipment or start jogging and eating better. They may decide to keep the money and stay unfit rather than spend the money and be just as unfit. Some may just join another gym, separate or not. Either way, you have to understand what their expectations are as far as the services you provide. If classes are free in other clubs, than by golly make them free at yours. Remember, the more the gym helps them achieve their goals at a fair price, the more willing they will be in continuing to pay that price.


 
 

I recently heard a terrific teleseminar involving Seth Godin (you can download it from the linked blog post). The discussion centered around the role of social media in the changing landscape of business.

At about 26 minutes in he asks the underlying question which every business owners needs to ask is "What business am I in?" We interact all the time with businesses that don't really understand what it is that we are buying from them. How many gyms believe that what you are buying is that little bar code to put on your key ring that lets you in at any time. Nope! You are buying a healthy, fit you. It behooves the gym to ensure that you are making good on your investment because, if not, they will lose you as a customer.

We once had a client who owned a carpet store. I got the sense that they thought that what they were selling was carpets and flooring. Uh-uh. That's not what people are buying. They are buying style, comfort and beauty for their home. It may come in the form of carpet, but you gotta know what it is that people want to advertise effectively to them.

Gourmet Lite Bake Shop (disclosure: they are a client) is a company that knows what they are selling. On the surface, they are a company that makes great tasting fat-free and sugar-free baked goods. In reality, they sell an authentic story, Matt Liebowitz's quest for a truly dietetic, great tasting snack which could back up it's claim of being  fat-free.

Most people don't know it, but Matt is in the health business.