Trader Joe, Joe Colom, Seward Alaska discussed on Freakonomics
Vibe as if to say, hey, you're just buying food. Food is delicious. So enjoy yourself. There's also an artsy. Vine a writer Levi more so oddly enough than in a typical bookstore these details as casual as they might seem would also appeared to be strategic in two thousand eleven interview with the LA times. Joe Colom said that when he started trader Joe's in the nineteen sixties. He was inspired by an article he read in scientific American about the huge spike in Americans attending college. I felt this newly educated class of people would want something different he recalled, and that was the Genesis of trader Joe's. Why did he choose Pasadena as the first store location because he said Pasadena is the pit Amee of a well educated town trader Joe's is for over educated and underpaid people for all the classical musicians museum curator's and journalists. He said this suggests that from the very begin. Inning. Trader Joe's understood cream skimming targeting certain kind of customer and leading the rest slide by as for the underpaid part of colognes equation that would appear to be outdated an analysis by the research firm Ag data found that trader Joe's stores today are located in counties with higher household median income than any other grocery chain, including whole foods in about ten thousand dollars higher than the US median income. But in this seems to be another key component of trader Joe's success. They also value for galaxy. As Michael Roberto found they usually set up shop in the cheaper parts of the expensive areas. Frankly, in many cases there in sort of old strip malls. So they've saved money on the real estate. The real estate firms Zillow found that homes near trader Joe's stores. Appreciate more quickly than homes in the city as a whole concluding that either trader Joe's is really good at picking areas that are on the rise or that they are in. Part causing the rise. So how about a new store in Seward Alaska that is Kirk discern is dream? So I started a Facebook page called bring trader Joe's to Alaska. This was in two thousand twelve I thought man these guys maybe they just don't know what they're missing yet. If I can create this Facebook page, and I can get people around the state to start liking it and sending trader Joe's an Email to say, hey, we would really love to see your store here than maybe trader Joe's will actually listen to us. So after one of his out of town trader Joe's shopping binges when I come home with a suitcase full, I like to throw it on the kitchen table and take a picture of it and put it out there, hopefully to motivate people to send that Email to trader Joe's, and let them know we're out here. His Facebook page got some traction about twelve hundred likes. I would say most. Of my friends in Seward are where that this is something that I would like to see happen and less you think to Serbia is one of those guys who makes a Facebook page for everything. No. Some of my friends might say them fairly politically active. But you know, I honestly I can't think of any other store that I might think to start a page to bring up here. Seward Alaska does have a relatively high median household income. But the population is a problem fewer than three thousand people to Serbia concedes that Anchorage. A few hours away would be more sensible site for the first trader Joe's in Alaska, and he'd happily make the drive. He just really wants a trader Joe's every time. I go to trader Joe's and the lower forty-eight. They always look sideways at me when I when I'm getting two to three hundred dollars worth of goods. But I tell them, you know, it's because we live in Alaska, and we can't get you guys come up here. And since I started this page in two thousand twelve and they've never responded to single Email. It seems a little unlikely. But hopefully, they're going to listen to this interview. And then I'll percentage will go up. Coming up after the break. We'll get into the economic details of trader Joe's success. We'll hear how they flip the script on customer relations. Just imagine if you would one if you changed the rules. What if you guys were both on the same side and will answer the question. We know you've been thinking what does trader Joe's have in common with Michelangelo? It's coming up right after this..