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January 14, 2002
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About Town Dave Uphoff ![]() |
A grocery store is one of the most important businesses
in a small community. While the school is the heart of the town and
the churches are the spirit of the town, the grocery store is the stomach of the town. That doesn't
sound quite right but you know what I mean.
Minonk used to be the food center for this area. Forty years ago there were 6 grocery stores in Minonk. Today Minonk only has one grocery store, the IGA. On January 1 Del Scheirer of Toluca bought the IGA and renamed it Minonk Foods. Mr. Scheirer indicated that he intends to improve the meat and produce departments and make prices more competitive. That comes as welcome news to local consumers. I think everyone knows that the IGA store had become somewhat unkempt in its appearance and many items were a little pricey. It appears that Mr. Scheirer intends to turn things around. He definitely seems intent on cleaning up the place. Everytime I go in the store I see David Lindsay sweeping the floor. Regarding prices, I think everyone has to agree that a small town grocer cannot compete with Cub Foods or the other big food chains in Bloomington. A grocery store in Minonk cannot sell enough volume to warrant the low prices of the big chains. It is a challenge to a small town grocer to find the right pricing structure that will give consumers the lowest price possible and still allow the grocer to make a reasonable profit. This can be a tricky thing because it requires the grocer to have some knowledge of economics. From my college days I know that there are two kinds of demand, elastic and inelastic. If there is an elastic demand for groceries, that means the consumer is very sensitive to price changes. If the grocer raises his prices the consumer will stop buying in sufficient quantity to cause the grocer's marginal revenue to go down. Inelastic demand means that the consumer will keep on buying even though prices are increased. So all Mr. Scheirer has to do is conduct a survey of Minonk residents and ask them if they have an elastic or inelastic demand for food. Rather than call in the Harvard economists to solve this pricing problem, I suggest that Mr. Scheirer skip the survery and price his products at a price that will bring him a fair return. I also ask that we the consumer buy our groceries at Minonk Foods even though we know that perhaps an item may cost 5 or 10 cents less in Bloomington. Mr. Scheirer may not realize an immediate jump in his revenue if he prices competively. However, over time word will get around and his sales volume will pick up. An increase in volume at the store means that prices can be lowered which means more people will come, etc. This cycle becomes self-perpetuating. |
One of the problems is that many people go to Bloomington to shop as sort of a recreational
trip. In the process of going to buy something you can't find in Minonk, the consumer will
shop for groceries as well since they are already in Bloomington. So it becomes a social habit and
not just an economic justification for buying groceries out of town.
Minonk residents should be reminded of the old adage, " If you don't use it, you lose it." Losing a grocery store would be devasting to this community. Local citizens must realize that there are costs to consider other than the price of a can of beans. What about the cost of driving to Bloomington? What about the value of their homes if the community loses its grocery store? What about the convenience factor? In a way, we should be willing to pay more for groceries because, except for food, we have a lower cost of living than Bloomington residents. You can't have everything. I would like to thank Mr. Scheier and his manager Kathy Dyer for treating the public with respect. Last week I noticed that the male employees are now wearing neckties. I think that was a smart move. There is nothing that turns off the public more than to have to be waited on by some guy with pink hair and a post in his tongue. When you deal with the public you have to put aside your idiosyncrasies and present an image that conforms to the main stream. To do otherwise, means you don't care what people think of you. And people don't want to give their money to someone who has that kind of attitude. Also, I think it is important for the clerks to say thank you when taking a customer's money at the checkout counter. Customers want common courtesy. How many times have you gone to a checkout counter at a store only to be met by a surly person with a slovenly appearance? And they give you that blank, slack jawed stare as if to say, "Why are you here?" Another important consideration is to be offered help with your bags. Also, keeping enough checkout lanes open to avoid long waits is important. Having a curteous and well-groomed staff is probably more important than the price of beans in a small town grocery store. I remember Walter "Becky" Beckman who used to sit by the checkout counter at the Vissering Mercantile back in the 50's. Becky would greet every customer with a joke and a smile. He let you know that he appreciated your business. I welcome Mr. Scheirer and his staff to Minonk and I hope that the citizens of Minonk give him a chance to make Minonk again the food center of this area. If Mr. Scheirer does it right people will come to his grocery because they want to, not because they have to. |
| To reply to this editorial please send your comments to duphoff@minonktalk.com. Only letters with a valid signed name will be published in the email section. |