Smart companies know to change their marketing to embrace the current mood of the public. When gasoline shot up to $4 a gallon, car manufacturers produced ads touting the fuel efficiency of their vehicles. With the current recession many stores are touting their “value” and how they save shoppers money. Walmart is taking a slightly different tack with their current line of TV ads – the power of small changes to save big money.
The Latte Factor is based on this same concept – that small changes have the potential to add up to substantial savings. Say you spend $5 each day for coffee and a muffin from that Nameless Coffehouse. Replace that with homebrewed coffee and a muffin from the market and you’ve just saved $3. No, it’s not much money, but what if you stick to this new routine for a month? Over that month you will save $60 and over a year that one change adds up to $700. For someone without savings or an emergency fund, $700 is an infinite financial improvement.
For years financial pundits have harnessed the power of the latte factor to help clients gain control of their finances and get out of debt. Now Walmart, recognizing that the American consumer is becoming more financially aware, is using the concept to their own advantage. In their latest television ads Walmart compares the cost of a meal out to a meal made with ingredients from Walmart. The $5 fast food breakfast is only $2 when made at home, saving $12 for a family of four. The ad goes on to say, replace one meal a week and save over $600 a year, that’s the power of Walmart. It’s also the Latte Factor in action, David Bach would be proud (I believe he coined the phrase).
This is just one of several ads in rotation, all based on the same principal. Apparently Walmart believes the American public is finally becoming more financially savvy and is more than happy to show how basic financial principals apply to their own business model.
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5 comments:
Well sure, anything to get you into the store is good for Walmart. They are preaching common sense and it works.
John DeFlumeri Jr
It's true that completely cutting out small expenses - like lattes - can have a big impact on savings over time. That said, there are also ways to continue enjoying small indulgences while finding cheaper ways to get them (like cooking at home as the Walmart commercials promote).
I work for PerkStreet Financial and we believe that you can spend responsibly - and get the little things that make you happy.
Next month, we're introducing a checking account that gives you debit card rewards for the little things people enjoy and buy often - including coffee - so you can have your coffee without paying for it and without risking credit card debt.
www.perkstreet.com
I think the paying attention to the little things are important but I also think that being able to delay gratification is equally or more important.
Best wishes,
Janie
One thing that the Latte Factor discounts, I think, is that sometimes it is as much the social aspect of the coffee shop as the coffee itself that draws people in. Often I go to the coffee shop to just read and be among other people.
Walmart is just pushing the $2 meal to get you in to buy the $200 TV, I think.
Not only did he coin it, I think I read that he even TMed it. I found that pretty funny.
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