Looking at the Downstream Implications of Savings Catcher

I love the idea behind the new Saving's Catcher Walmart has put out.  In a certain extent they have drawn a line in the sand and stated, "We will beat anyone on price."  But looking down the line, I think it means good things for folks who take the time to coupon.

Walmart's competitive advantage is their low prices.  Due to their economies of scale and their business model no one can beat them at the low price game and Saving's Catcher is an extension of that.  (The ethics of Walmart's model is for a different blog, I don't want to get into that debate here.)

That said, if Saving's Catcher catches on, it puts competitors at a disadvantage.  When Walmart has the lowest price on most things and are willing to cut prices on competitors sales so you buy those items at Walmart too, that obviously puts a weekly price cutting strategy as a game competitors won't win. How can competitors beat Saving's Catcher?  The answer is pricing strategies Saving's Catcher won't catch.  Look at the list of exclusions:

• Items that require a separate purchase to get the advertised price (example: “Buy oatmeal to get cereal for $1.”)
• Items with no actual price that require a purchase to get a free product (example: “Buy both oatmeal & cereal to get milk for free.”)
• Items that require a purchase to get a gift card (example: “Buy a 12 pack of paper towels to get a $5 gift card.”)
• Buy one get one free (BOGO) deals where no item price is listed (example: Peter Pan Peanut Butter, buy one, get one free. Save up to $2.50.”)
• Going out of business or closeout prices.
• Percentage off (example: “All mascara, 40% off.)

There is a list of strategies other stores use and have been using to try to compete with those "extra low prices."  I expect we will see more of those strategies.

The net result of that is, additional complexity added to the system.  And that is where we find the best deals. Just look at these:

• I walked out of Kmart with $5.00 in points and a $5.00 Catalina for spending less than $7.00.  And I will do it again today and spend no actual cash.
• I spent $17.68 on makeup at Rite Aid and walked out with $10.00 in rewards and a $10.00 gas card.
• I've walked into Walgreens, paid $0.02 in tax and walked out with $1.00 in rewards.

When they throw complexity at us, we find ways to work that complexity to our benefit.

So if Saving's Catcher catches on as well as I think it will, that only gives us more ways to make the couponing system work to our advantage.

Saving's Catcher is huge on it's own.  But I think looking at the potential downstream effects, is what truly makes it a game changer.

Although, only time will tell.  But I am excited about the potential impact of this tool...