Epoxy Inc. (fka EPXY)

[Black Beerd]

"Who buys milk from KT if it isn't just someone in a hurry and willing to pay more than what it sells for at their grocer or Walmart? "

first of all Walmart and grocer isn't cheaper than they are on targeted purchase point products like milk and that's a fact (some may want to call it a lost leader but they make money with those products)...enough volume that they own their own dairy processing and have contracted farms. I stated that in an earlier post.... no one beats their Milk and Banana's pricing and their coffee as well . Not necessarily in a hurry...just conveniently buying by location and in addition to gas purchases. Then they have the incentive as well with their non profits script cards with loyalty purchases.

"Loyalty doesn't bring that person in--convenience does."

Loyalty comes with the instore experience. They like the products and service is what creates loyalty. Convenience is just that...convenient yet another attribute.

"But that isn't the Epoxy approach--which is one person at a time using their app, right?"

That doesn't mean he can't include this kind of a rollout...he's early in the game and yes needs to expand and this is a good way/start to do it. Right now no one really knows the true approach because IMO... if you are in business big or small they are a potential client to target.

" I suppose the church folks who are already going there to save on gas"

Need to study up on script cards.... the customer isn't getting the deal...when they buy the 25.00....50 and 100.00 cards the 5% off the value of the card goes back to the non profits/churches. There is no additional value brought to the customer. They need gas so they use the card and purchase the gas...then they see the cost of their milk which most people know because they buy it almost daily and then they see the instore values they promote...Cheapest branded bananas around....etc. .

"IOW I'm not seeing the added value for those people, and I'm not seeing it for individuals."

It doesn't matter they understand their customer and buying habits and they understand how to bring that value to them...to the tune of 5 bil in sales this year. 25% with scrip cards. That's loyalty promotion at its finest. Scrip programs include many vendors... but that's brick and mortar promotional focus.... the EPXY program is mobile and the msg gets to where ever their customer is... a very different method of reaching their clientel.