The Only Way to Prove a Concept (from Canadian Tire)

This is interesting - Canadian Tire says that food in stores as a concept is working, despite marketing surveys that show it wouldn't work. There is an important takeaway here, one that business owners have known for a long time that somehow got lost in MBA land along the way. The only true test of a concept is to put it in action, even though that takes money. Or as Jesse Livermore said:

"When I think I have found the solution I must prove I am right. I know of only one way to prove it; and that is, with my own money."

There is only one true way to test theories, and that is by putting up one's own money. You see, as an MBA we look for ways to reduce the risk - a marketing survey instead of actually putting a concept into action. But at the end of the day, a survey is just that: a theoretical question on whether or not people will be willing to part with their money. In actual practice, when people have to part with their money a different decision making process takes place. Kudos to Canadian Tire for having the cohones to test this out! (even though I personally don't plan to buy milk and eggs there in the near future!)

http://www.vancouversun.com/business/fp/Canadian+Tire+grocery+experiment+gains+converts/2602820/story.html


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