Posted on 04/24/2011 9:20:13 AM PDT by pyx
(Excerpt) Read more at finance.yahoo.com ...
When I was a kid, my grandmother use to order her groceries.
“What I find interesting is that this was one of the “Next Big Things” that failed miserably during the Dot-Com boom in the ‘90’s.
Maybe they were just ahead of their time? “
A few years before the Internet, interactive TV was the next big thing, and failed miserably. Now, newer TV’s have Wifi, and who knows what else will be connected in the future.
“Grocery shopping is about the only real thing that forces me to leave home every week or so.”
Yes, you are correct.
There are things that I suddenly have depleted and need to run to the supermarket because I cant wait for the next day. Dang!!! (While there, though, the ice cream and chocolates are checked out.)
If it weren’t for those annoying miscalculations and emergencies, I swear, I would never leave my abode. The traffic is awful here in Panama.
But then again, we don’t have a Wal-Mart. Maybe that would be a different story. I will never know.
When you get into your car and drive 5 miles to the store and then 5 miles back it's 10 miles spent to deliver, say, three bags of stuff. It's 3.3 car-miles per bag.
When a delivery driver gets into his truck and drives 100 miles on a route, he delivers 300 bags to 100 customers. It's 0.3 truck-miles per bag.
The difference in efficiency is huge even after you count the higher fuel consumption of the truck; but then you will have to count the time too.
Your trip to the store needs you to drop what you are doing, spend the time on the road, then wander aimlessly at the store, then stand in line to the checkout, then load the food into your car, return the cart, drive home, unload the car. That's a couple of hours of your time spent right there.
A truck driver, on the other hand, doesn't walk the isles, and doesn't stand in checkout lines. His truck is loaded at the loading dock, with a forklift perhaps if Wal-Mart knows a thing or two about efficiency. The items will be arranged in the order of delivery, and he needs just seconds to grab your bags and give them to you. Since you paid online already, there is nothing else for the driver to do.
I will consider this delivery option myself, and will use it if the price is right. The nearest food store (Safeway) is about 5 miles from my house. I stop there if I'm passing by, but I never intentionally went there and back; it's easier to stay hungry for a day or two :-)
Sorry, I’m compelled to pick through the fruit and vegetables, choosing my own. I also like to make sure the milk carton is not leaking and the cans are not dented. Besides, I like to see the products that are new on the market.
LOL!
Pop-ups and live coupons will cover that.
Its a losing idea. I owned Webvan stock and rode it all the way to the bottom. Lost all my money. It just does not work.
Thanks for that excellent analysis.
If people consider the value of their time, along with the total incremental cost of driving their car to the store and back — then the deliveries could make a lot of sense for many people. Of course, some people enjoy the drive, and walking down the aisles. They won’t want this service.
It’s a losing idea in many areas, but can work in the right market. In New York, for example, FreshDirect is popularvand profitable.
Perhaps. But Wal-Mart will also gain elsewhere.
First, the forgotten items. I was at Safeway twice last week, and I still don't have butter at home. Why? Because I don't have a shopping list, so I just forgot about it until I needed it yesterday and had none. With online shopping it is much easier to maintain the cart - you add an item to it when you need it, and that's your shopping list. When you are ready to order all these items are there whether you remember about them or not.
Next, the rush. When I am in Safeway or any other store it's usually during the day or after work. I have other things on my mind, and rarely I can afford to walk the isles and look at products. I just grab what I need and go to the checkout. Stores - especially large ones - are crowded places, they do not necessarily facilitate thoughtful, meditative approach to shopping.
Next, the perishables. You can't just drop them in your car and be on your merry way to a movie theater or to friend's house or sometimes even to work. You'd better go right home. This creates a serious constraint - you have to do your shopping after work or on weekends. Weekends are a precious commodity, and after work I'm usually tired.
Next, the alternative shopping. A Safeway is some distance away from my house. There are stores closer, but they are not as good. Walgreens, for example, will not let you die from hunger, but the prices are high and the selection is minimal. On the other hand, I go within 100 feet from it every day. So if I need food I may just stop at one of these stores and buy what I need; Wal-Mart (or Safeway) will be excluded and see none of my money. However if I can return home on Friday night, not bother shopping, and simply order a home delivery next morning, that would be not only faster, it would be even cheaper.
Compared to all that, impulse buy is a small change. Besides, who says that you can't do an impulse buy online? All you need is to see what else is available, and most online stores are pretty good at that. Just look at how Amazon advertises similar products. It works.
I would say that the 'price' is going to go up quickly. However, it could still beat the in store price.
I get home deliveries all the time as well, just tell the wife what I want...
That is exactly what I do! LOL
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