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Fresh & Easy Reneges on It’s Coupon Program
By Charles Martin | February 12, 2009
Many of you know my love for good companies, good service and an overall new and useful take on something old and tired.
Grocery stores fit this model. I shop almost daily for this household’s groceries and I can easily tell you how much a certain family staple costs at each store. I scan each of the four store circulars that come in each week in a few minutes and take out what I need.
Fresh & Easy came on to the LA scene pretty strong in 2008. We have one near our home and I tried it. It’s a mix of Smart N Final (feel/texture/size) with Trader Joe’s (packaging, pricing) and any other general supermarket (they have bad stuff like Coke). The prices are competitive and on the low end in any pricing poll, and the whole concept is relatively cutting edge. There are 1/2 the employees on duty, maybe less. You self check. It’s all very European just like F&E’s owners.
They began marketing with a $5 on $25 coupon in circulars that was also always available and in the pockets of everyone in the store. Coupon expired? Here’s another and a pack for your four friends. Override needed because the register didn’t like your coupon? Fine. In late fall the coupon moved to $6 on $30. I pushed a lot of shoppers to try F&E and I know the recruitment was successful on most occasions. It is a strong trust builder when you train customers over a seven or eight month period to expect to be able to use a coupon on each stop whether you had one or not. Then suddenly everything went south.
On a recent trip they began to not have any coupons in store. Then when mine was expired it took two managers and lots of angst to get them to give me the $6. I was handed cash in a rush and made to feel as I might not want to come back. Now, 20 years + in retail tells me the customer is not always right and maybe I’m not. And also I realize this was marketing based on trialing and testing for a giant new investment. But, I’ve been conditioned to want this coupon and I’m angry. I know many others are. We can’t continue this money saving practice and that’s a bummer. In this economy what better time than to continue offering ways to save more on stuff for survival. There are no club cards to track me by and offer “sale prices” on the things I buy at F&E. This is it. What the numskulls don’t really get it is that in almost each occasion, I put things in my cart that the $6 savings will [sort of] cover that I wouldn’t have bought without it. I spend more money folks!
On the other hand, I have been largely impressed by the Starbuck’s black/gold card (whichever you feel most proudest of). It offers me to commit $25 to save possibly hundreds over a year’s time. If you run the numbers and know what direct response gives most promotions it’s a winner for Starbucks. I’m not a winner for them — I shop there all the time. But it does keep me from going to Peet’s, a coffee I like better, just because I get the 10%. I’ve asked Peet’s to follow and I’m asking Fresh & Easy to do it as well. Guess what? In the case of the 10% card, I SPEND MORE MONEY FOLKS! It’s a no brainer really!
If I were asked to pay an up-front charge to save 10% on my grocery bill each and every time, I’d be happy to. Look also at the success of Amazon Prime. Today my bill would have been reduced by $4.30 instead of $6. Fresh & Easy would have made money. Lots of people won’t show after the initial buy-in and the store does well. The loyalists like me will have smiles far and wide.
I KNEW they would get rid of this sweet sweet deal and I’m angry not only for the long tenured tease but also because I was right.
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