I was chatting with three entrepreneurs in the grocery e-commerce and fruits & vegetable e-commerce business. One interesting, may be weird, thing that emerged in our discussions was that friends (including Facebook and other social media connections), people staying in the same building and relatives in particular, do not buy or have not bought anything from them, though they buy from somewhere else the same products these folks are selling.
Somehow, I too face this 🙁
Some days ago, I was meeting a person who had started an eating joint in Pune. He invited friends and relatives, but hardly any came for the next two three months, though they did go to eat out. Then at family functions and other gatherings he started telling relatives and acquaintances that that the business is not doing well, lot of problems, etc etc. Weirdly, in some days some of them started walking in. Some close relative told him that a section of the relatives who decided to walk in had discussed that they should go to his joint because if they don’t, his business will close down.
I am curious to understand whether this is a common phenomenon for all entrepreneurs? And what could be or are the reasons for this?
(Pic taken from the link it is hyperlinked to)
vineet banthia
My cousin bought some sanitaryware/bathroom fittings/hardware from a family friend’s shop and those guys knowingly overcharged him. They (the family friends) knew that my cousin had no idea about the prices and hence could get away. When my cousin researched the market for the prices, he said he will never buy from them again.
Friends & relatives know that they cannot bargain hard with a known guy and hence refrain from doing business with them.
Adarsh Thampy
In online purchases, there’s hardly chances for bargain.
Besides, I always try to buy local stuff from people I know (Eg electrical items which I have zero knowledge in). Most of the times, they give me genuine stuff and give me discounts without asking.
Online it might be just that your brand does not have enough mindshare for them to buy from you when they need to. Keep reminding them about your venture- maybe distrubute relatives/friends only coupons for discounts.
Manish Sharma
I think family and friends are the one who would try your product i have just started an e-commerce business and have done much of my sales with family and friends and the referrals I got from them.
The reason I think here is that since I am into selling apparels online, family and friends can come back to me if they have any issues and then issues can be resolved very easily because we have a personal relationship.
You guys can visit our website at http://www.zuvino.com
Ashish Parik
Its a fact that people (family, Friends and Known to Us) may be using the same products / services. However they take it from others and not from ours. Even they might be paying more money for the same product / service.
1. To some extent I agree with Vineet Banthia. It is the major reason for them not coming to us. In reality majority of us offer good discount. So the fear of getting over charged or not able to bargain keeps them away from us.
2. May be sometimes they don’t approach us as they don’t want us to be obliged.
These peoples are the best one to start marketing. These people know us for a quite longer time and know us better than the world. By using the products / services, they can get real experience which can help them strengthen the trust on us.
Remedy :
1. I believe we should follow them like a MLM / Insurance agent, however we should keep them updated about our initiatives.
2, Take their suggestions and feedback on the products / services.
3. If possible, should offer products / services either complimentary / at subsidized rates so that they can have hands on experience. While doing this we should maintain complete professionalism so that they should be treated like customer ( who is mostly a king).
Devgad Mango
I don’t understand why would they need to be reminded. Shouldn’t relatives be on the top of their mind. Now keeping aside discounts part, yesterday I was speaking to my relative who runs a franchise of Amul, whom I asked this question. Now I always go his shop when I have to buy milk, ice cream, etc. Even he’s saying other relatives and the acquaintances in the building hardly come to his shop, though they buy these things from other shops. Everything is sold at MRP, so no question of they getting discounts elsewhere. No idea what is the reason.
Adarsh Thampy
“Shouldn’t relatives be on the top of their mind.”
Just because one of my relative has a business, what makes it so special that I have to keep it in mind all the time?
I always prefer buying things from places like dmart, reliance fresh etc because I do my monthly shopping one time. Unless these stores can match the convenience, range, etc of the big shops, I wont want to go and shop there just because he/she is my relative.
In the end, I am the consumer. It’s my money I am spending. I have the right to spend it anywhere I feel that gives me maximum value.
There might be several reasons people dont buy from a particular place. Example: My local kirana store guy will deliver the stuff I want to my house. Also, he gives me discounts because I am a regular customer. Will my relative do that? What if they dont have home delivery?