“The importance of being different”

I read a great story recently about a small bodega owner in LA.   It is a story of risk taking, survival, planning and most importantly, it is a story about never giving up.   It is a wonderful tale about the necessity of change, adapting, and executing.   As Ralph Waldo Emerson once said “Good luck is another term for tenacity”!

John Nese owns Galco’s Old World Grocery and in the late 1990’s, his original business model was failing.   He opened as a small, conventional Italian grocery several years back but the neighborhood changed and lost many of its Italian residents.   Among Italian specialty items, the store carried food staples and the usual brand named soda such as Coke and Pepsi.   However, it became clear to John that he could not compete on price with Safeway and Wal-Mart less than a mile away.   Often, Wal-Mart’s retail prices were cheaper than his wholesale prices.   Nese could not compete in soda or many of the other items he had for sale.

One day, a Pepsi salesman came in and offered him a great deal.   If he bought a 100 case pallet, he would get a discount so his cost would be $5.59/case.   John figured that if he sold every case, he would make a profit of only $30!   It was that night he made a decision to adjust his plan.

Later that evening, John went to a micro brewery and had an epiphany.   Micro brews were gaining popularity and giving the traditional beer companies fits.   Maybe there were micro breweries for soda?   He remembered a drink that he savored as a small child called Dad’s rootbeer bottled in LA.   Sure enough, he found Dad’s and ordered his first 10 cases.  He then became an expert on micro-soda pops. One of the parameters that had to be met for him to carry the brand was it had to be bottled in glass bottles.   The soda could not be massed produced and it had to be made from natural ingredients.   Slowly, he added more and more brands that fit this description.  John’s customers would ask why he was carrying the old brands and he simply stated “because I want to be different”.   If someone wanted a coke, he would send them down the street.

John’s tenacity has paid off handsomely.   He know carries 450 brands of micro-sodas and has a great on line store(www.sodapopstop.com) that has really helped his business.   Some brands have been around for years, but just have fallen off the radar.   John says that he sells “soda and memories”.

As an aside, his daughter became involved in the business and suggested to John that he start carrying all the old time candy.   This brilliant idea caused John to seek out products like Goo Goo clusters, Charleston Chews, Squirrel Bars, etc.   The candy has been a nice addendum to his business.

The lesson learned here is that we all must adapt to the ever changing retail landscape.  Now more than ever, big brands and big stores threaten the smaller companies.   Those of us who own or sell smaller brands must find away to battle back against the giants.   John did with intelligence and tenacity!

Ken Proctor
Front Man – Dad
Twig Footwear, LLC
 Ken@twigfootwear.com
 www.twigfootwear.com