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Friday, 9 May 2014

the Bottle-O - where are their priorities?

I was at my local shopping centre picking up some groceries and decided at the last moment to pick up a bottle of wine for a Friday evening watching Hawthorn v Sydney on the television. I can honestly say I made an impulse purchase as I had four bags of groceries still in my hands. I previously supported this liqueur store when it was owned by a couple of old guys who were very amicable, I chose to support smaller independent retailers who offered personalised service, I was aware they were unable to compete on price alone - you accepted that. 


I was doing a search of Penfolds Bin 9 later that evening and found much to my surprise found Dan Murphy's was retailing the same wine for $28.30 per bottle. My local liqueur store, the Bottle-O, sold me a 2012 vintage for $38.99 - not happy. Now the Dan Murphy's price is pretty good, an average price is closer to $30 per bottle is acceptable, this is an unacceptable price difference.


Now the Bottle-O is a national chain, as such, they have bulk buying power, while their purchasing power may be somewhat less than the larger chains, this is by no means a small chain. It appears the Bottle-O seems to be more interested in sponsoring V8 super cars than passing on cost savings to customers - you are left in no doubt to where their priorities sit. This is not an organisation seeking to build a long term sustainable competitive advantage and a loyal client base.   


Ok, so the Bottle-O made the sale tonight, what I can say is enjoy your V8 super cars and watch your customers leave you en-masse in the digital age, you caught me out tonight on an impulse sale - that won't happen again. 

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