Photo by Nancy Houlihan

The other day I was talking with a local ice cream store owner who was feeling depressed. He was born and raised in the town. His parents still live in the town. He opened a store in the town that appeal to the town’s self-proclaimed values (“organic food / healthy eating”). In the past few months, 3 competitors have opened similar stores in town. The competition are all small chains, none of whom have organic / quality ingredients. And yet there are lines at the other stores, and his store is feeling the pinch. What happened?

First off – his store’s prices are higher than the competition. Better ingredients do cost more. But apparently people don’t always put their money where their mouth is. Especially families/kids who are trying to stretch their budget.

Secondly – While he mentions he’s organic in the storefront, he’s not spreading the message of why organic matters. Is it taste? Health benefits? Eco-benefits? Local farmer benefits? People who “get” his values, already buy from him. People who don’t, see him as another ice cream choice, albeit with better ingredients.

Lastly – Sadly, community-supported stores are a dying breed. Many of us remember the “mom-and-pop” grocery store, the multi-generational sandwich shop, etc. But with market forces increasing, people don’t put the value of “shopping local” into their quality of life equation. If the local store doesn’t show how it feeds the community (supporting local schools, charities, etc.), then there’s no clear benefit to giving your neighbor money vs. a corporation (which may also donate to local schools).

The solution: he needs to first do an independent taste test. Can his ice cream compete on its own taste merits? If so, focus the message on that, then highlight the secondary message: better ingredients, etc. Also, since his ice cream is premium-priced, then he needs to likewise justify the price, or find ways to reduce the price (smaller sizes, frequent buyer discounts, etc.).