Trader Joe's: Proving Less Is More
Count me among the throngs of loyal Trader Joe’s fans. I love the low prices, the no frills packaging, and the impressive selection of $5 wine. And according to this enlightening Fortune article, I may also be attracted to Trader Joe’s limited selection:
Swapping selection for value turns out not to be much of a tradeoff. Customers may think they want variety, but in reality too many options can lead to shopping paralysis. "People are worried they'll regret the choice they made," says Barry Schwartz, a Swarthmore professor and author of The Paradox of Choice. "People don't want to feel they made a mistake." Studies have found that buyers enjoy purchases more if they know the pool of options isn't quite so large. Trader Joe's organic creamy unsalted peanut butter will be more satisfying if there are only nine other peanut butters a shopper might have purchased instead of 39. Having a wide selection may help get customers in the store, but it won't increase the chances they'll buy. (It also explains why so often people are on their cellphones at the supermarket asking their significant other which detergent to get.) "It takes them out of the purchasing process and puts them into a decision-making process," explains Stew Leonard Jr., CEO of grocer Stew Leonard's, which also subscribes to the "less is more" mantra.
Customers accept that Trader Joe's has only two kinds of pudding or one kind of polenta because they trust that those few items will be very good. "If they're going to get behind only one jar of Greek olives, then they're sure as heck going to make sure it's the most fabulous jar of Greek olives they can find for the price," explains one former employee. To ferret out those wow items, Trader Joe's has four top buyers, called product developers, do some serious globetrotting. A former senior executive told me that Trader Joe's biggest R&D expense is travel for those product-finding missions. Trade shows that feature the flavor of the moment "are for rookies," a former buyer said. Trader Joe's doesn't pick up on trends -- it sets them.
Counterintuitive at first, the concept rings true. My favorite fast food? In ‘N Out. They haven’t got any breakfast burritos, or chicken sandwiches, or apple walnut salads. It’s just burgers, fries, and shakes. Simple. Delicious.
But if this limited-selection model is indeed at least partially responsible for the success of these two ventures, why haven’t more retailers and restaurants followed suit?
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Jul '10
Re: Trader Joe's: Proving Less Is More
Who can forget the scene in Moscow On The Hudson in which the Robin Williams Russian Immigrant character freaks out when faced with an entire supermarket aisle devoted to coffee? I don't have a sound graps on the science, but I am guessing our brains are wired to support a maximum of 3, 5 or 7 choices. More than that and we freeze up.
I experience this when shopping for laundry detergent. It used ot be 4 or 5 choices of the same basic cleaner. Now there are 57 types of Tide. It all becomes a blur.
Which, by the way, is why the 2-party system beats the pants off of proprotional representation.
May '10
Re: Trader Joe's: Proving Less Is More
This is probably why old people stick to things they know. Why make choices if you're fine with what you've already got?
May '10
Re: Trader Joe's: Proving Less Is More
They give out great free samples, plus balloons & stickers to kids. They play much better music over the PA. They're all obliged to wear those Hawaiian shirts. And their products don't even contain sugar, either! Instead, they have "crystallized evaporated cane juice." What's not to love?
Jul '10
Re: Trader Joe's: Proving Less Is More
I know just what Professor Schwartz means about choice anxiety.
Many's the night I've bolted wide-awake in the grips of choice panic.
Oh, God, were those Blue Corn Organic Dippin' Chips a horrible, horrible mistake?
And what about the Gluten-free Cod Nuggets? Should I have chosen haddock instead?
My ragged sobs awaken my spouse.
"Baby," she says, "You've just got to learn to let it go."
At moments like this, I suspect she might be wondering whether she made the wrong choice, too.
Jul '10
Re: Trader Joe's: Proving Less Is More
It's a proposition that is frowned on by the Friedman in us all: less choice is better. Now, of course this doesn't get in the way of Friedman. Trader Joe's advocates less choice at a retail outlet, not in the market at large. But I generally don't ever have any kind of buyer's anxiety over decisions I make at the supermarket. Once I find something I like, I don't go anywhere from there. Plus, I think when you find people on the phone talking with their spouses about laundry detergent at the sueprmarket, it's more often than not a situation where the spouse who doesn't do the laundry is doing the grocery shopping.
Jul '10
Re: Trader Joe's: Proving Less Is More
Has anyone ever noticed that all the children in Whole Foods look like they're genetically-engineered?
Perfect little Stepford kiddies.
May '10
Re: Trader Joe's: Proving Less Is More
I notice this phenomenon when I buy shoes for my dopey size 14 feet. There's usually one or two pairs in the whole joint that fit, so I'm in and out quick, without any second-guessing. A pleasure.
That being said, I think Humza nails the issue: Generally speaking, lack of choice is wonderful only if one knows he is choosing lack of choice.
Edited on Aug 26, 2010 at 8:30pmJul '10
Re: Trader Joe's: Proving Less Is More
The Soviets had it down.
Only one choice of everything.
Unless...you happened to be a dentist who had a secret stash of novocaine.* Or a car mechanic with a couple of mint Volga starters hidden away.
In which case, step on into the back room....
*Fun fact: novocaine was reserved for the Nomenklatura. Which is why everyone else opted for extraction instead of root canals. But under their superb public health care system, the steel teeth were free.
Edited on Aug 26, 2010 at 8:32pmRe: Trader Joe's: Proving Less Is More
Kenneth: The Soviets had it down.
Only one choice of everything.
The Soviets had choice: drink Pepsi or do not drink; vote for Brezhnev or do not vote; fly with Aeroflot or do not fly; save money in the “Savings Bank” or stick it under your mattress. Nevertheless, the Soviet State focused attention, time, and resources on the creation and dissemination of consumer advertisements. Any theories on why they might have done this?
Jul '10
Re: Trader Joe's: Proving Less Is More
Diane Ellis, Ed.
Kenneth: The Soviets had it down.
Only one choice of everything.
The Soviets had choice: drink Pepsi or do not drink; vote for Brezhnev or do not vote; fly with Aeroflot or do not fly; save money in the “Savings Bank” or stick it under your mattress. Nevertheless, the Soviet State focused attention, time, and resources on the creation and dissemination of consumer advertisements. Any theories on why they might have done this? · Aug 26 at 8:56pm
For Western consumption. Potemkin airliner.
May '10
Re: Trader Joe's: Proving Less Is More
Diane Ellis, Ed.
Kenneth: The Soviets had it down.
Only one choice of everything.
The Soviets had choice: drink Pepsi or do not drink; vote for Brezhnev or do not vote; fly with Aeroflot or do not fly; save money in the “Savings Bank” or stick it under your mattress. Nevertheless, the Soviet State focused attention, time, and resources on the creation and dissemination of consumer advertisements. Any theories on why they might have done this? · Aug 26 at 8:56pm
Universal employment, even if largely in what we would call McJobs...
May '10
Re: Trader Joe's: Proving Less Is More
Kenneth
Diane Ellis, Ed.
Kenneth: The Soviets had it down.
Only one choice of everything.
The Soviets had choice: drink Pepsi or do not drink; vote for Brezhnev or do not vote; fly with Aeroflot or do not fly; save money in the “Savings Bank” or stick it under your mattress. Nevertheless, the Soviet State focused attention, time, and resources on the creation and dissemination of consumer advertisements. Any theories on why they might have done this? · Aug 26 at 8:56pm
For Western consumption. Potemkin airliner. · Aug 26 at 9:04pm
Well, it was even worse than that. If somebody did not vote, a lowly representative of the "election committee" was supposed to track this person at home and persuade him or her to go and vote. These representatives were called "agitators" and they were not allowed to go home before everybody within their assigned group of voters voted. So, many people went to vote simply out of pity toward these agitators. As election days were days off of work, most people preferred to do other things (e.g., go shopping - the voting places were usually equipped with makeshift stores that sold rare things, like apples in january)...
May '10
Re: Trader Joe's: Proving Less Is More
I've never been to Trader Joe's. But my hubs is so picky about his condiments, I'd panic if I didn't have a lot of choices. Skippy, not Jiff (is peanut butter considered a condiment?) Hellman's, not Miracle Whip. Heinz, not the other stuff. Since I do most of the food shopping and usually with my kids, I will admit to a tinge of pleasure watching shoppers on the phone to significants frantically trying to figure out if they should buy Tide or Gain. I tell myself this makes up for the frustration of regularly trying to navigate a shopping cart with a giant plastic toy car affixed to the front with two little boys riding in it. Sometimes, I do step up to assist folks. One gentleman became almost undone trying to figure out why brown sugar was sold in boxes and plastic bags. He was so relieved when I told him. Oh well, none of us is as smart as all of us!
May '10
Re: Trader Joe's: Proving Less Is More
Diane Ellis, Ed.
The Soviets had choice: drink Pepsi or do not drink; vote for Brezhnev or do not vote; fly with Aeroflot or do not fly; save money in the “Savings Bank” or stick it under your mattress.
It's funny if you read the bottom of the advertisement...
"Все столицы союзных республик, крупные города, курорты Крымо и Кавказа связаны воздушным сообщением."
Another choice...fly domestic-only or stay home.
Edited on Aug 26, 2010 at 10:26pmMay '10
Re: Trader Joe's: Proving Less Is More
Sergei Nirenburg
Well, it was even worse than that. If somebody did not vote, a lowly representative of the "election committee" was supposed to track this person at home and persuade him or her to go and vote. These representatives were called "agitators" and they were not allowed to go home before everybody within their assigned group of voters voted. So, many people went to vote simply out of pity toward these agitators. As election days were days off of work, most people preferred to do other things (e.g., go shopping - the voting places were usually equipped with makeshift stores that sold rare things, like apples in january)... · Aug 26 at 10:07pm
I love reading about your experiences, Sergei. Do you mind sharing where you're from?
May '10
Re: Trader Joe's: Proving Less Is More
I figgered you were talking about Trader Vic's. Where they offer only one variety of mai-tai (because they invented it). Sorry.
But Andrea does speak actual Russian. Honest.
May '10
Re: Trader Joe's: Proving Less Is More
I'm not sure if I'm admitting to something here, but I enjoy grocery shopping (by myself) and I love a sea of choices. Probably why getting three things I need takes me two hours and 12 bags of groceries. I could maybe cut that time in half if I skipped the cheese rounder and ice cream.
Diane, you asked what the point was of advertisements like the one you posted. My guess is propaganda. Advertising to make the people think they have choice...or manipulate them into being pleased with what was offered. The whole thing is screwy. It was a very difficult language to study and a difficult culture to understand.
Aug '10
Re: Trader Joe's: Proving Less Is More
Diane Ellis, Ed.: ...But if this limited-selection model is indeed at least partially responsible for the success of these two ventures, why haven’t more retailers and restaurants followed suit? ·
I've heard high-end restaurants do do this.
But for supermarkets... selection is important to a lot of folks. Many folks have picky spouses, or family members with allergies, or have been put on some insane restricted diet by their doctor. In these cases, quality is less of a concern than finding something -- anything -- that fits these restrictions.
I love Trader Joe's, but I'm not sure I could use it as my primary grocery even if I wanted to because of limited selection.
Scott Reusser: I notice this phenomenon when I buy shoes for my dopey size 14 feet. There's usually one or two pairs in the whole joint that fit, so I'm in and out quick, without any second-guessing.
I wish! I've got common-sized feet, but apparently oddly-shaped. I hate shoe shopping because it means trying on about 50 pairs before I find one that fits. (Yes, a woman who hates shoe shopping -- I go barefoot whenever possible.)
Re: Trader Joe's: Proving Less Is More
Midget Faded Rattlesnake
I wish! I've got common-sized feet, but apparently oddly-shaped. I hate shoe shopping because it means trying on about 50 pairs before I find one that fits. (Yes, a woman who hates shoe shopping -- I go barefoot whenever possible.) · Aug 26 at 10:45pm
MFR -- you've reminded me of the silly clothing boutiques in places like NYC and LA and SF that sell women's clothing in sizes 0, 2, and 4. The choice there? Lose weight or go shop at a department store, where all the average people get their clothing.
Aug '10
Re: Trader Joe's: Proving Less Is More
Diane Ellis, Ed.:
Nothing will make unsalted peanut butter satisfying, at least not to me. I don't know why "natural" or "organic" peanut butters so often forget the salt. Salt is natural. Salt is organic (well, it's not an organic compound, but it can be harvested "organically"). And salt adds flavor.
Having been advised to steer clear of normal peanut butters in the past because of certain troublesome typical additives, I've found myself stuck with the unsalted "natural" stuff more than once. The only help for it is to stir salt in myself.
But I've got a vendetta going against the low-salt craze. Chalk it up to low blood pressure. Or I'm just ornery .