Tuesday, January 15, 2013

Why steal Tide?

This seemingly irrational criminal obsession with the leading liquid detergent brand can be interpreted as a rational response to theft deterrent precautions for other, more valuable goods.:

...Most frequently stolen goods—GPS devices, smartphones, and other consumer electronics—are pricey, light, and easily concealed. They’re also not routine purchases, which means they can be locked up until buyers ask for them. Bulk goods like detergent are harder to run off with, but they’re also bought by dozens of customers daily...

This makes it costly for stores to lock these items behind a case.   This makes Tide relatively easy to steal.  Plus,
 Cashiers and stockists, working for low pay, are often disinclined to confront a potential criminal. “People at the cash register don’t stop you,” says one of Thompson’s informants, an ex-con who shoplifted for years. “They just let you go past.” What’s more, stolen bottles of Tide aren’t easily traceable.

So how is P&G reacting to this?
For its part, Procter & Gamble doesn’t seem overly concerned about the black-market popularity of its product. “It’s unfortunate that people are stealing Tide, and I don’t think it’s appropriate at all, but the one thing it reminds me of is that the value of the brand has stayed consistent,” says Raman, the marketing director. 

HT:  Brad

1 comment:

  1. I woulI would have never thought to steal Tide, or the fact that it could be profitable, but I suppose from an economic stand point, it certainly makes sense. Although like Mr. Froeb writes, certainly electronics are more expensive, but is the demand for them necessarily high? While consumers do appreciate a good deal when purchasing electronics, the risk involved with stealing these products is high and the demand for them is low. Whereas the demand for laundry detergent is high, as it is a product that consumers routinely purchase. By being able to move a high volume of detergent, this makes up for the fact that the profit on each unit is not as high as on each electronic device.

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