People in NYC love Trader Joes.
I’ve found that TJs operates by some simple principles that can be applied to any business which I outline below.
1. Don’t try to do everything for everyone
Trader Joes stays nimble by only offering a few items but making sure people really like those items. They’re okay knowing that you’ll have to go elsewhere for some things because they know you’ll still buy from them the things they do better than others. Trying to create a store that would be a “one-stop shop” would hurt their ability to do all the other things they do well. “Put more force behind one arrow” is a powerful mantra for any business and the way a David can take down a “Goliath” — the focused slingshot rock right at the blind spot inevitably created by the Goliath’s size.
2. Set reasonable prices, make money on volume
TJs keeps things simple and wants to offer value. People recognize this and customer loyalty is created. People also recognize that the lack of frills is a part TJ’s charm and what allows them to offer affordable quality.
3. Experiment and discard what doesn’t sell
TJs is constantly introducing new stuff and removing old stuff that isn’t selling. Inventory or product or feature pruning and focus is important with any business.
4. Invest your profits into your staff
Staff members at TJs are generally happy and friendly. Maybe this is because they make more money and are given better benefits than those working elsewhere. The customer experience is far more enjoyable as a result. It sounds corny but it does seem like somewhat of a family when you shop there. Consider how much more confident you’d be in retaining customers at your own business if they also felt like they were a part of a family as a customer of your business.
5. Give free samples
Free samples just make people happy and show you’re confident with your products. At TJs, this means literally giving out food samples but in other service of product businesses, it may sometimes mean providing your services or products at a discounted, below market price at the beginning to make it easy for new customers to see how good you are and win trust.
6. Offer sustainability
Having an advertised mission beyond profit shows customers you have a higher purpose and are working to also make a larger difference.
7. Keep location overhead low
People care about the value of the products and not the office space. Good employees will care more about whether they are making a good living working on something they care about than the grandeur of their office.