New Club/Membership Discussion

[PeterC99]

I think even at a $10 a month price point, the value, as currently proposed, that you would get for it just isn’t there. For me, all of the stuff besides the discount and QTed fish and corals is ancillary and not really part of the core value, they are the sort passive perks membership. QT being one of the core draws, I would have to be confident that proper QT practice was being followed (not just observation) for me to trust it, if I don’t fully trust it, and still have to QT, then it too becomes an ancillary part of the value proposition.

So then it just comes down to the discount, which as someone else mentioned, you’d have to spend $1200 or $2400 to break even, which is more than most reefers spend on livestock (especially people with established reefs) in a year. So, I think for building a community, this isn’t the right price point. I think when you look at other sort niche business that offer programs like this, they usually charge $15-$20 per year and you get 10%-15% certain product categories and a bunch of other perks, Gamestop comes to mind.

The idea is to give the impression that your getting this great value (when the real point is to get people in the store and to upsell). I think for something like this to work, there has to be some real tangible value there. At even $10 a month, I would have to spend at least $100 to just break even, not even feel like I’ve gotten a deal. Even with all of these other ancillary/passive points of value, in the moment, if I spend $10 on my monthly fee and then only spend $70 on livestock in that transaction, I’m going to come away feeling like it wasn’t worth it. The price of the membership needs to feel like a good value at the initial point of sale, either by getting me a discount greater than the price entry on my purchase today, or by giving me more time than until the end of the month (and not requiring me to spend $1200-$2400 to just break even) to use the benefits I’m paying for today. So, for me, this would have to either have way more tangible value added for this price point, or at the current offering cost $15-$20 per year.

Very good business analysis!

 

[Tannermule]

I think even at a $10 a month price point, the value, as currently proposed, that you would get for it just isn’t there. For me, all of the stuff besides the discount and QTed fish and corals is ancillary and not really part of the core value, they are the sort passive perks membership. QT being one of the core draws, I would have to be confident that proper QT practice was being followed (not just observation) for me to trust it, if I don’t fully trust it, and still have to QT, then it too becomes an ancillary part of the value proposition.

So then it just comes down to the discount, which as someone else mentioned, you’d have to spend $1200 or $2400 to break even, which is more than most reefers spend on livestock (especially people with established reefs) in a year. So, I think for building a community, this isn’t the right price point. I think when you look at other sort niche business that offer programs like this, they usually charge $15-$20 per year and you get 10%-15% certain product categories and a bunch of other perks, Gamestop comes to mind.

The idea is to give the impression that your getting this great value (when the real point is to get people in the store and to upsell). I think for something like this to work, there has to be some real tangible value there. At even $10 a month, I would have to spend at least $100 to just break even, not even feel like I’ve gotten a deal. Even with all of these other ancillary/passive points of value, in the moment, if I spend $10 on my monthly fee and then only spend $70 on livestock in that transaction, I’m going to come away feeling like it wasn’t worth it. The price of the membership needs to feel like a good value at the initial point of sale, either by getting me a discount greater than the price entry on my purchase today, or by giving me more time than until the end of the month (and not requiring me to spend $1200-$2400 to just break even) to use the benefits I’m paying for today. So, for me, this would have to either have way more tangible value added for this price point, or at the current offering cost $15-$20 per year.

To make sure I'm understanding everyone correctly. You feel as though a smaller one time entry or annual fee, with current perks would help get you in the door as a recurring customer?
Or do you feel a pure point system would be better?

 

[Tannermule]

I'm trying to listen to everyone and get honest opinions and I just want to thank you all for your input. I truly appreciate it.

 

[PeterC99]

I'm trying to listen to everyone and get honest opinions and I just want to thank you all for your input. I truly appreciate it.

Very smart! Keep at it, maybe you will find some other niche that will help your success.

 

[Tannermule]

Very smart! Keep at it, maybe you will find some other niche that will help your success.

I'm also watching mad hatter reef process to see if anything peeks my intrest. I know his "live food buffet" would be great for me tbh.
Let me know if you have any ideas of benefits too.

 

[MaxTremors]

To make sure I'm understanding everyone correctly. You feel as though a smaller one time entry or annual fee, with current perks would help get you in the door as a recurring customer?
Or do you feel a pure point system would be better?

Yes, I think at the current value proposition, $15-$20 per year would be a fair price. The point for the retailer isn’t necessarily to break even on the price of the membership, it’s to get people in the store, retain customers, and to be given opportunities to upsell.

 

[Tannermule]

Yes, I think at the current value proposition, $15-$20 per year would be a fair price. The point for the retailer isn’t necessarily to break even on the price of the membership, it’s to get people in the store, retain customers, and to be given opportunities to upsell.

Is there anything you as a customer would like to add to the experience?
Is there anything you as a LFS owner would like to add?

 

[MaxTremors]

Is there anything you as a customer would like to add to the experience?
Is there anything you as a LFS owner would like to add?

I think sort of mimicking the structure of what Gamestop does might actually work for an LFS, maybe for like $20, you get 10% off livestock and then a $5 off coupon to use each month. The idea is that you don’t want to make the membership prohibitively expensive or outside of the price of an impulse purchase, while making it seem like a good value (and at this price it would be). Having the monthly coupon that expires at the end of the month incentives people to come in and take advantage of it each month, when they might not have otherwise, and it’s also an opportunity to upsell. So the customer either comes in and spends money they wouldn’t have otherwise (even if they’re getting $5 off), and if they don’t, then you still make the $20 from the price of the membership.

I realize that your original question or intent was to build a ‘community’, and I don’t know that I have any advice for that specifically, it’s incredibly difficult to build a community like that in an inorganic, premeditated way. The store will either become a local hangout for reefers or it won’t, you can do some things to make the environment conducive to that (having an active and responsive social media presence is integral these days), but the main way of doing this is the same as it’s always been, you offer a somewhat niche product or service that’s in a sector that isn’t over-saturated and you provide excellent service, good prices, and ensure that the entire experience is positive. I’ve been to a lot of LFS’s that had great prices and/or service, but the stores were dirty, unprofessional, had their kids there, they were rude or indifferent, hashed personal drama in front of customers, etc., the overall experience wasn’t positive and so I would end up not going back. Going to the fish store should be a fun and positive, but professional experience.

I think the question of some sort of lfs membership/rewards program and building a local reefing community are two different things. But the membership can be just a small part of attracting repeat customers which will help to foster or build a community around the store.