Biography:
Sol Price (Solomon Price) was born in New York in 1916 and at age thirteen he moved to San Diego with his parents. He was the middle child and had an older brother and younger sister. Price's father Solomon was the intermediary associations in New York (it forms a social consciousness of Solomon), when Sol Price was a teenager. My father later became a distributor of women's clothing in Southern California and things went so well that he was able to pay for his studies at the Faculty of Saul, University of Southern California.
Law degree Sol Price (Solomon Price) received in 1938 and until 1955 practiced law in San Diego. Sol Price's former friends at the university, said that he was very industrious and distinguished liberal political views (Mallik, 1988). They described Sol Pryce as a man with a strong will and firm convictions. Others found it extremely frugal. David Block, a former school friend Sol Price, said: "Either you love it or hate. It was not the most tolerant person in the world."
Business Story:
Sol Price (Solomon Pryce) and his two sons were the main leaders of "Fed-Mart." After the sale of "Fed-Mart" in 1974, the German owner of the retailer's "Hyper Mart" Hugo Mann Sol Price and his two sons were in it as the lead managers. Saving jobs was part of the sale agreement, but groundbreaking temperament and autocratic style of Sol Price's was not to taste German entrepreneur. They could not work together. Hugo Mann fired him in 1975, after years of wrangling. Sol Price and his sons were walking the streets of San Diego, depressed, angry, and full of thoughts about the future. This crisis was the catalyst and inspiration for creating the first "Price Club".
The first store of the "Price Club" Solomon Price and his sons opened in 1976 in an old airplane hangar in San Diego. Solomon Price invested 800,000 dollars. its funds from the sale of "The Fed in March." Another million Solomon Price borrowed from a local businessman. Five hundred thousand dollars invested his former employees to "Fed-Mart" by selling their shares of the company. They wanted to continue working with him in the new firm. They sold the equity shares of local retailers at a price of $ 25. per share. The case has gone. In the early years the owners and buyers gain experience. In the very first year the store had only a few customers and a very small amount of sales. Price Solomon refused to campaign, and for the first year the company was almost unprofitable. Sales in the year amounted to 16 million dollars., And losses - 700,000 dollars. Then, the club became actively involved different sections of public (government and small businesses). Lower price for high quality products has become a major advantage to hold those who knowingly interest costs. People living through trade or other related businesses were the main proponents of the "Price Club". Price for these people, of course, was crucial and they were willing to travel long distances in order to profitably acquire high quality product. Solomon Pryce merit consists in the fact that he came up with a subtle, effective ways to reduce tax payments. "Price Club" takes into account that its products will be of interest for the business involved in their further proliferation, and for those who buy them for personal use. Electrical appliances, food, and other small items were 77 percent of sales, "Price Club" and the buyer could purchase these consumer goods in installments.
The success story of the "Price Club" spread throughout San Diego. Information about the firm sold out among the many merchants, "Price Club" was on the verge of taking off. By 1981, sales reached 230 million dollars., And by 1984 exceeded billion. Company Incorporated in 1982 and by 1990 the value of the share, which amounted to $ 1,000 initially. rose to 12,247 dollars. By this time the company had only four stores. Then followed a dizzying growth and the end of 1991 "Price Club" has owned 75 stores in the United States and Canada.
Innovative intuition Sol Pryce (Solomon Pryce) was focused on the main principle of business - to give the buyer the highest quality product at the lowest possible price. This magic formula that made Henry Ford a hero, and the firm "Price Club" led to success. The same way of thinking is the basis for the success of the Japanese, who are guided by the same principle, punching its way into new markets. In order to be able to sell products at low prices, Solomon Price eliminate many terms prices. According to him, many of the elements that were included in the price, were superfluous, since nothing was added to the value in the goods. Other retailers use these items for so long that it was difficult to give them up. "Sears" hitherto attempts to introduce these changes and to shift to a system of discounts, but its customers are not very much welcome this initiative, because they are used to wait for further check the products, use credit cards, and a leisurely stroll on trading rooms. Solomon Price has changed all that, and, of course, opposed himself to the old model to retailers, who feared that the initiative will put Solomon Pryce bandwagon their business as usual.
Sol Price's pricing philosophy (Solomon Pryce), was probably the only one, the most important factor in the success of the "Price Club". This philosophy is reflected in the analysis, which Solomon Price presented to the press in 1990:
By setting the price, it is necessary to rely on the laws of supply ... Feature of the product is that by buying it, you wonder whether it is possible to buy it even more profitable? ... Other retailers are thinking about how they can make money on the sale of a product. I wonder if you can sell this product cheaper?
Sol Price's pricing strategy (Solomon Pryce) was designed to offer the customer more and more low prices and as, one by one, to exclude components of prices. This strategy was alien to most American leaders and has never existed in bureaucratic organizations. Traditional leaders methodically and consistently included in the price of all the terms, bringing it to an extreme level, assuming that they are acting for good. This traditional strategies have been true in the majority of the executive heads of the organizations, because this position is suited shareholders. Folly of such thinking characterizes leaders and inevitably leads to failure. Sol Price (Solomon Price) often philosophized about this type of leaders who, caring only about the short term, forget about the long-term prospects. In an interview, he said that this way of thinking, based on the principle of self-preservation, is one of the biggest problems many retailers:
Wall Street wants your profits were a little higher, so why not a little splutovat? Reduce quality and leave the same price. The buyer does not know the difference (Bragou, 1990).
Conclusion:
If imitation really is the sincerest form of flattery, as Shakespeare said, then Solomon Pryce flatter retailing giants America. Wal-Mart is a fan of great talent Solomon Price. Sam Walton, shortly before his death in 1992, said, "Fortune", "I think that I had stolen (though I prefer the word" borrowed ") so many ideas of Solomon Price, as no one else in the business." "Wal-Mart" under the direction of Sam became one of the largest wholesale companies of America, owning three hundred stores. "K-Mart" competed with the "Price Club" for shopping "Pace" and "Macro". "Costco" in Seattle was founded by former employees of the "Price Club". "Home Club" Price's formula applied in hardware, "Sports Club" - in the field of sporting goods, "Office Club" and "Office Depot" - in a stationary office equipment, "Vision Works" apply the formula in the treatment points and " Softvea House "used the idea to work in the software industry.
Sol Price (Price Solomon) said that the secret of his success is that, by choosing products with which it will work, it is immediately and permanently dismissed some products. He never looked back and did not discuss their competition. Sol Price (Solomon Price) has always been focused on one thing, and in all major failures blamed dedicated employees. He acted more whip than the carrot. However, the golden rule has always been his bible, both in business and in private life. Sol Price's ethical system was part of his business philosophy.
Sol Price (Solomon Price) was rewarded for his moderation and altruistic business ethics. In 1991, the list of the 400 richest people of America, published "Forbes", Solomon Price appeared as the owner of the state in 335 million. Price Solomon recognized as the father of the wholesale trade, and was immensely respected by his employees. He is considered one of the great innovators of the second half of XX century. His rapid impatience and intolerance to inaction were the reason that the "Price Club" became the leader of retail business in America. A former lawyer and unemployed affected retailers face more than anyone else in the last hundred years.
Sol Price (Solomon Price) was born in New York in 1916 and at age thirteen he moved to San Diego with his parents. He was the middle child and had an older brother and younger sister. Price's father Solomon was the intermediary associations in New York (it forms a social consciousness of Solomon), when Sol Price was a teenager. My father later became a distributor of women's clothing in Southern California and things went so well that he was able to pay for his studies at the Faculty of Saul, University of Southern California.
Law degree Sol Price (Solomon Price) received in 1938 and until 1955 practiced law in San Diego. Sol Price's former friends at the university, said that he was very industrious and distinguished liberal political views (Mallik, 1988). They described Sol Pryce as a man with a strong will and firm convictions. Others found it extremely frugal. David Block, a former school friend Sol Price, said: "Either you love it or hate. It was not the most tolerant person in the world."
Business Story:
Sol Price (Solomon Pryce) and his two sons were the main leaders of "Fed-Mart." After the sale of "Fed-Mart" in 1974, the German owner of the retailer's "Hyper Mart" Hugo Mann Sol Price and his two sons were in it as the lead managers. Saving jobs was part of the sale agreement, but groundbreaking temperament and autocratic style of Sol Price's was not to taste German entrepreneur. They could not work together. Hugo Mann fired him in 1975, after years of wrangling. Sol Price and his sons were walking the streets of San Diego, depressed, angry, and full of thoughts about the future. This crisis was the catalyst and inspiration for creating the first "Price Club".
The first store of the "Price Club" Solomon Price and his sons opened in 1976 in an old airplane hangar in San Diego. Solomon Price invested 800,000 dollars. its funds from the sale of "The Fed in March." Another million Solomon Price borrowed from a local businessman. Five hundred thousand dollars invested his former employees to "Fed-Mart" by selling their shares of the company. They wanted to continue working with him in the new firm. They sold the equity shares of local retailers at a price of $ 25. per share. The case has gone. In the early years the owners and buyers gain experience. In the very first year the store had only a few customers and a very small amount of sales. Price Solomon refused to campaign, and for the first year the company was almost unprofitable. Sales in the year amounted to 16 million dollars., And losses - 700,000 dollars. Then, the club became actively involved different sections of public (government and small businesses). Lower price for high quality products has become a major advantage to hold those who knowingly interest costs. People living through trade or other related businesses were the main proponents of the "Price Club". Price for these people, of course, was crucial and they were willing to travel long distances in order to profitably acquire high quality product. Solomon Pryce merit consists in the fact that he came up with a subtle, effective ways to reduce tax payments. "Price Club" takes into account that its products will be of interest for the business involved in their further proliferation, and for those who buy them for personal use. Electrical appliances, food, and other small items were 77 percent of sales, "Price Club" and the buyer could purchase these consumer goods in installments.
The success story of the "Price Club" spread throughout San Diego. Information about the firm sold out among the many merchants, "Price Club" was on the verge of taking off. By 1981, sales reached 230 million dollars., And by 1984 exceeded billion. Company Incorporated in 1982 and by 1990 the value of the share, which amounted to $ 1,000 initially. rose to 12,247 dollars. By this time the company had only four stores. Then followed a dizzying growth and the end of 1991 "Price Club" has owned 75 stores in the United States and Canada.
Innovative intuition Sol Pryce (Solomon Pryce) was focused on the main principle of business - to give the buyer the highest quality product at the lowest possible price. This magic formula that made Henry Ford a hero, and the firm "Price Club" led to success. The same way of thinking is the basis for the success of the Japanese, who are guided by the same principle, punching its way into new markets. In order to be able to sell products at low prices, Solomon Price eliminate many terms prices. According to him, many of the elements that were included in the price, were superfluous, since nothing was added to the value in the goods. Other retailers use these items for so long that it was difficult to give them up. "Sears" hitherto attempts to introduce these changes and to shift to a system of discounts, but its customers are not very much welcome this initiative, because they are used to wait for further check the products, use credit cards, and a leisurely stroll on trading rooms. Solomon Price has changed all that, and, of course, opposed himself to the old model to retailers, who feared that the initiative will put Solomon Pryce bandwagon their business as usual.
Sol Price's pricing philosophy (Solomon Pryce), was probably the only one, the most important factor in the success of the "Price Club". This philosophy is reflected in the analysis, which Solomon Price presented to the press in 1990:
By setting the price, it is necessary to rely on the laws of supply ... Feature of the product is that by buying it, you wonder whether it is possible to buy it even more profitable? ... Other retailers are thinking about how they can make money on the sale of a product. I wonder if you can sell this product cheaper?
Sol Price's pricing strategy (Solomon Pryce) was designed to offer the customer more and more low prices and as, one by one, to exclude components of prices. This strategy was alien to most American leaders and has never existed in bureaucratic organizations. Traditional leaders methodically and consistently included in the price of all the terms, bringing it to an extreme level, assuming that they are acting for good. This traditional strategies have been true in the majority of the executive heads of the organizations, because this position is suited shareholders. Folly of such thinking characterizes leaders and inevitably leads to failure. Sol Price (Solomon Price) often philosophized about this type of leaders who, caring only about the short term, forget about the long-term prospects. In an interview, he said that this way of thinking, based on the principle of self-preservation, is one of the biggest problems many retailers:
Wall Street wants your profits were a little higher, so why not a little splutovat? Reduce quality and leave the same price. The buyer does not know the difference (Bragou, 1990).
Conclusion:
If imitation really is the sincerest form of flattery, as Shakespeare said, then Solomon Pryce flatter retailing giants America. Wal-Mart is a fan of great talent Solomon Price. Sam Walton, shortly before his death in 1992, said, "Fortune", "I think that I had stolen (though I prefer the word" borrowed ") so many ideas of Solomon Price, as no one else in the business." "Wal-Mart" under the direction of Sam became one of the largest wholesale companies of America, owning three hundred stores. "K-Mart" competed with the "Price Club" for shopping "Pace" and "Macro". "Costco" in Seattle was founded by former employees of the "Price Club". "Home Club" Price's formula applied in hardware, "Sports Club" - in the field of sporting goods, "Office Club" and "Office Depot" - in a stationary office equipment, "Vision Works" apply the formula in the treatment points and " Softvea House "used the idea to work in the software industry.
Sol Price (Price Solomon) said that the secret of his success is that, by choosing products with which it will work, it is immediately and permanently dismissed some products. He never looked back and did not discuss their competition. Sol Price (Solomon Price) has always been focused on one thing, and in all major failures blamed dedicated employees. He acted more whip than the carrot. However, the golden rule has always been his bible, both in business and in private life. Sol Price's ethical system was part of his business philosophy.
Sol Price (Solomon Price) was rewarded for his moderation and altruistic business ethics. In 1991, the list of the 400 richest people of America, published "Forbes", Solomon Price appeared as the owner of the state in 335 million. Price Solomon recognized as the father of the wholesale trade, and was immensely respected by his employees. He is considered one of the great innovators of the second half of XX century. His rapid impatience and intolerance to inaction were the reason that the "Price Club" became the leader of retail business in America. A former lawyer and unemployed affected retailers face more than anyone else in the last hundred years.
He built mini-market system!
ОтветитьУдалитьHis concept uses whole world
ОтветитьУдалитьthank u Nariman! very useful information!!!
ОтветитьУдалить