The story of stuff shows the process from resources to fruition. However, it isn’t what we think it is — we have used a big part of the global resources at an extreme rate. Furthermore, the stuff we produce isn’t simple. During the creation of stuff toxins, pollution, and waste are byproducts. Our society is one of the consumers and is what we consider our purpose because we keep replacing what we already have. This is an important background to consider the value of products and what happens when we buy them.
In the value chain chart, we see the different activities of a business but also what separates the categories and what each branch focuses on. When you add a margin to this, you get what buyers are willing to pay. This is important in understanding the functions of a company to see the worth of what you are creating, how much people are willing to pay, and the profit you can get out of it. If a company doesn’t understand this, then they will not be able to evaluate the numbers and therefore will not be able to sell enough product to cover costs or buyers won’t be willing to purchase the product. Trader Joe’s is a company that understands the value chain well. It evaluates its product and positions itself in an interesting way.
In the Freakonomics audio and the article by Ebster and Khalil, they use Trader Joe’s as an example/case study of a brand that has done exceptionally well. A few surprising aspects about the company is that they are 1) private label 2) don’t have advertising 3) don’t have coupons/loyalty cards 4) don’t have self-checkout 5) don’t have wide isles/big parking lots with a mass amount of products. Despite this, the grocery store has a cult following, have the most sales per square foot, and treats their employers well above average. The brand has a particular customer in mind and doesn’t try to cater to everybody. In fact, they target those with middle-class income but high education. Furthermore, to push this idea, they have a fun and quirky vibe as well as sell unique or exotic products that have a feeling of branching out into the higher class. Another aspect that the resources explore is the topic of choice. The study shows that enough options but not an overwhelming amount make consumers more inclined to take action and buy the product.
I think the most important point that relates to all three sources is the value of a product. The reason why this is so important is that, like in the case study of Trader Joe’s, it is how you make a great brand. Furthermore, the background in the consumerist economy relates to the value chain chart as it is how businesses consider ways in which to position themselves.
