Friends Bubbling WSOP FTs and Interesting Biz Models
This entry also appears on my blog at PokerTips.org.
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I haven't made an entry since getting back to Houston because I haven't had much to say. I played online last Sunday and, save for a couple mini-cashes, washed out of everything. That coupled with the Magic failing to win the NBA Finals all but cemented the fact that I won't be returning to Vegas until the Main Event.
I've been following the WSOP action pretty closely since returning home. A couple friends have enjoyed some deep runs that ended in final table bubbles. Leif Force finished 10th in the $2,500 pot-limit Omaha event that had 430 players. He professes to be a very good Omaha player and his live results seem to back that up. I'm hoping he'll let me buy a little of his action in the $10k coming up!
Sebastien Sabic just busted out of the $1,500 H.O.R.S.E. event that drew a field of 770 players in 11th place. I know he had to be disappointed with coming so short of the final table, but he has a lot to be proud of with that result. It's not easy having to make decisions in five different games while navigating through a field of donkeys.
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Today, I raided Costco for about $300 worth of bulk merchandise. They have a really interesting business model. Basically, you have to be a member in order to shop there. How do you become a member? By filling out a registration form and paying an annual due of $50. This is a smart business model in a few ways.
First, it caters to people's vanity. Even though anyone with a Ulysses Grant in their pocket can be a member, there's still some magic vanity overlay that a lot of people find in being able to say they're a member of something. Second, it prices people in to feeling like they have to shop there a lot. If you don't know what Costco is, it's basically WalMart on crack. Everything is packaged in bulk and sold at a nice discount. For example, I got a 52 pound bag of dog food today for the cost of about a 24 pound bag from a "regular" store. I got a three-pack of mouthwash for just 150% of the cost that I usually pay for a single bottle. The whole store basically works like this. Items packaged in bulk and sold at a cheap price.
What makes the $50 membership smart is that it probably wouldn't be worth it if you only shopped there once or twice a year. However, it's definitely worth it if you go there once a month (or more). So by getting people to commit to a $50 membership in order to have access to the discounted bulk merchandise, they feel obligated to recoup that upfront expense by shopping there as much as possible. Pretty smart.
Another good business model I saw recently was at Lucky Brand Jeans. I visited them while in Vegas and was informed you get a $25 gift card for every $100 you spend. At first, I assumed this basically equated to $25 off my purchase for every $100 I spend. It was only when I got to the counter with a little over $200 worth of clothes that I learned the $25 gift cards would not become active until a couple of weeks after my purchase. Touche, Lucky Brand.
I visited a Houston-based Lucky Brand today so I could redeem my two $25 gift cards. Of course, I made it to the register with about $70 in merchandise meaning they got another $20 out of me. I thought this was a very smart promotion on their part. In addition to the extra money they got from me, there was some intangible value of getting me to come to their store on a second occasion. This builds familiarity with their product line and a sense of loyalty. They'll probably make even more money off of me in the future just from having priced me in to visiting them more than once and thinking about them on a semi-regular basis as their gift cards sat on my desk serving as a reminder to redeem their value.
The thing that each of these business models have in common is that they "price in" the consumer to making repeat visits. In other words, they make shopping there on multiple occasions a sensible thing to do. Any promotional model that can do this is smart regardless of the current economic state, but it's especially smart during a severe recession when people are looking out for "sensible" shopping options more than they otherwise might.
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Between now and the Main Event, I have a friends' wedding to attend and a family function in Illinois to attend. The family function, my grandparents' 50th wedding anniversary, actually came at a terrible time. They're having an open house the Wednesday before the Main Event and then the whole family is going to the Ozarks for a weekend on the lake. I told my family that if the lake plans were on literally any other weekend of the year, I'd be there, but I simply can't skip the Main Event just to lay around on a pontoon for three days no matter the occasion. To their credit, most in my family seem to understand this and are appreciative I'm coming up for the open house at the very least.
--------
I haven't made an entry since getting back to Houston because I haven't had much to say. I played online last Sunday and, save for a couple mini-cashes, washed out of everything. That coupled with the Magic failing to win the NBA Finals all but cemented the fact that I won't be returning to Vegas until the Main Event.
I've been following the WSOP action pretty closely since returning home. A couple friends have enjoyed some deep runs that ended in final table bubbles. Leif Force finished 10th in the $2,500 pot-limit Omaha event that had 430 players. He professes to be a very good Omaha player and his live results seem to back that up. I'm hoping he'll let me buy a little of his action in the $10k coming up!
Sebastien Sabic just busted out of the $1,500 H.O.R.S.E. event that drew a field of 770 players in 11th place. I know he had to be disappointed with coming so short of the final table, but he has a lot to be proud of with that result. It's not easy having to make decisions in five different games while navigating through a field of donkeys.
-------
Today, I raided Costco for about $300 worth of bulk merchandise. They have a really interesting business model. Basically, you have to be a member in order to shop there. How do you become a member? By filling out a registration form and paying an annual due of $50. This is a smart business model in a few ways.
First, it caters to people's vanity. Even though anyone with a Ulysses Grant in their pocket can be a member, there's still some magic vanity overlay that a lot of people find in being able to say they're a member of something. Second, it prices people in to feeling like they have to shop there a lot. If you don't know what Costco is, it's basically WalMart on crack. Everything is packaged in bulk and sold at a nice discount. For example, I got a 52 pound bag of dog food today for the cost of about a 24 pound bag from a "regular" store. I got a three-pack of mouthwash for just 150% of the cost that I usually pay for a single bottle. The whole store basically works like this. Items packaged in bulk and sold at a cheap price.
What makes the $50 membership smart is that it probably wouldn't be worth it if you only shopped there once or twice a year. However, it's definitely worth it if you go there once a month (or more). So by getting people to commit to a $50 membership in order to have access to the discounted bulk merchandise, they feel obligated to recoup that upfront expense by shopping there as much as possible. Pretty smart.
Another good business model I saw recently was at Lucky Brand Jeans. I visited them while in Vegas and was informed you get a $25 gift card for every $100 you spend. At first, I assumed this basically equated to $25 off my purchase for every $100 I spend. It was only when I got to the counter with a little over $200 worth of clothes that I learned the $25 gift cards would not become active until a couple of weeks after my purchase. Touche, Lucky Brand.
I visited a Houston-based Lucky Brand today so I could redeem my two $25 gift cards. Of course, I made it to the register with about $70 in merchandise meaning they got another $20 out of me. I thought this was a very smart promotion on their part. In addition to the extra money they got from me, there was some intangible value of getting me to come to their store on a second occasion. This builds familiarity with their product line and a sense of loyalty. They'll probably make even more money off of me in the future just from having priced me in to visiting them more than once and thinking about them on a semi-regular basis as their gift cards sat on my desk serving as a reminder to redeem their value.
The thing that each of these business models have in common is that they "price in" the consumer to making repeat visits. In other words, they make shopping there on multiple occasions a sensible thing to do. Any promotional model that can do this is smart regardless of the current economic state, but it's especially smart during a severe recession when people are looking out for "sensible" shopping options more than they otherwise might.
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Between now and the Main Event, I have a friends' wedding to attend and a family function in Illinois to attend. The family function, my grandparents' 50th wedding anniversary, actually came at a terrible time. They're having an open house the Wednesday before the Main Event and then the whole family is going to the Ozarks for a weekend on the lake. I told my family that if the lake plans were on literally any other weekend of the year, I'd be there, but I simply can't skip the Main Event just to lay around on a pontoon for three days no matter the occasion. To their credit, most in my family seem to understand this and are appreciative I'm coming up for the open house at the very least.
posted by Cory Albertson at
6:01 PM
3 Comments
