Wednesday, November 30, 2005

185,000 Square Feet of Fishy Fun


Go on a "Big Box Safari" and explore an LA Times walk through of a new Cabela's 185,000 square foot superstore. The article makes a stark contrast:
To think, Dick Cabela started it all in 1961 on his kitchen table in Chappell, Neb., selling cut-rate flies tied in Japan. First, he advertised 12 flies for $1 and got only one customer. He cut the price to five flies for free with a 25-cent charge for shipping and handling, and the orders started rolling in. According to the hardcover history of the company written by his son, David Cabela, the profit margin on each order was 2.2 cents per fly."
Back in business school they taught us that retailers always located the men's department near a door because men like to get in and get their stuff then get out quickly. The average customer of Cabela's shops for four hours. I guess it all depends on what you are selling!

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