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10 Reasons To Love the Free
Market
Karen De Coster
Lew
Rockwell.com
Monday February 4, 2008
What makes my favorite business enterprises so extraordinary
that I will continue to seek out their products and/or services
over the long haul?
As a libertarian and market anarchist, I appreciate the high-spirited
entrepreneurs who confront a maze of government impediments in
order to start up a business they hope will be profitable in the
marketplace. Entrepreneurs take on considerable risk because they
have an ambition to provide products or services that are unique
or better than the current choices available to consumers.
The reasons why we, as consumers, frequent certain producers,
service providers, or retailers can vary, and thus at times it
is constructive to reflect on why we are enthusiastic about a
particular place of business. With this in mind, I decided to
put together a short list that might bring some well-deserved
attention to those market enterprises that have made my life easier,
healthier, more robust, more productive, or just a lot more fun.
I am not writing this on the basis of a company’s political
merits or lack thereof, nor am I considering the health of its
balance sheet. This is written strictly from a consumer appreciation
point-of-view. I have stayed away from local businesses that don’t
have a national or large regional impact.
(Article continues below)
1) It may be fitting that I start off with a company called Enterprise.
I’ve always thought that Enterprise Rent-A-Car is unique
among its peers. Business Week named Enterprise one of the "top
five places to launch a career," and for good reason. I have
frequented Enterprise often, and for many years. The reason I
go to Enterprise is because the company provides a top-notch service
environment. In my experience, the overall quality of the company’s
employees is what puts it ahead of its competitors.
Enterprise makes a habit of hiring college grads that are still
contemplating their career choices and need a place to commence
a livelihood. For instance, there are a lot of smart kids that
go to college and get degrees that can sometimes be difficult
to sell in a competitive market: general business, communications,
marketing, etc. A great starting point for learning the needs
and nuances of consumers is to deal with them, face-to-face, on
a daily basis.
Enterprise, which hires about 7,000 college graduates a year,
has a well-developed management training program that teaches
employees how to run their own businesses. In fact, nearly 100
percent of Enterprise’s current senior management –
including the president and CEO – started as management
trainees, learning the ins and outs of the business.
Accordingly, young and inexperienced people can obtain entry-level
positions and have every opportunity to acquire business management
skills and rise to executive positions. It’s a real-world
environment that serves to develop valuable business skills, because
dealing with customers is never as easy as one may think. I have
always found Enterprise employees to be young, articulate, pleasant,
and well-schooled in customer service. Plus, Enterprise offers
exceptional services: someone will pick you up or drop you off
within limits that are inordinately generous; company managers
will gladly exchange a car you don’t like with no questions
asked; and any mishaps on their part will get you a good deal
on the rental. Thus the exceptional quality of people and service
I have experienced at Enterprise puts them right atop my list.
2) LA Fitness is the next noteworthy enterprise to come to mind.
Its motto is "Where fitness is a way of life." As someone
who trains 8–15 hours per week, a good club stands at the
very top of my list.
I visited LA Fitness clubs in past years when traveling to California
and Arizona. In 2007, I visited a newly-opened club in Minnesota
while staying with family. I had never seen a gym quite like it.
This gym was the standard setup for an LA Fitness center at about
46,000 sq. ft., with glass racquetball courts, spinning room,
and yoga room; a partial-glass basketball court; a glass-enclosed
lap pool; a huge free-weight area; a massive machine section with
all the latest high-tech equipment; and a beautiful mezzanine
overlooking the whole place, loaded with nearly 200 state-of-the-art
cardio machines. I noticed immediately that the visuals were splendid,
and the environment was lively and contagious. In between workout
sets on the machines, you can stand and watch five racquetball
courts full of senior men – who are in fabulous shape –
putting on a marvelous display of athleticism. I noted that even
the locker rooms were profound. They were perfectly designed,
with the shower, locker, and toilet areas all partitioned and
temperature-controlled to perfection. The attention to minor details
in the women’s domain was exceptional. My only question
to the club manager was, "Why are there no LA Fitness clubs
in Michigan?"
When I came back to Michigan, I received a call from the Minnesota
club manager. He told me the company was in the process of opening
a new club in Michigan, so he gave me the contact information.
It is close to where I live, so I promptly went down to the pre-sale
office. A Senior VP of the company happened to be there at the
time, and he was the person responsible for opening all of the
new LA Fitness clubs in Michigan. Since I explained that I had
already been to some clubs out of state, he was eager to discuss
the company’s business model and philosophy with me. He
explained the attitude behind the infectious fitness environment
of its clubs. Essentially, the company wanted to get away from
the "gym rat" experience and open up a true sports club
for functional athletes. The company wanted to create an ambiance
that could appeal to the hardcore types as well as people on the
margin. Since the Vice-President was about 50-ish, and an avid
and very fit runner, he truly represented the company in good
light. I was one of the first 200 Michiganders to sign up, and
my club opens in about six weeks. I can hardly wait.
3) Bath & Body Works is next up on the list. This is a Chick
Store. This enterprise was one of the first retailers to bring
luxury women’s products to the masses at affordable prices.
Before Bath & Body, most female luxury items were found at
Hudson’s, Saks, Nordstrom’s, and other high-priced
retailers. Sales on luxury items were almost non-existent, and
the ambience was too upscale for many middle-class shoppers. Bath
& Body Works forged a phenomenal business by producing creative
luxury items – for hands, face, feet, hair, and body –
and sorted them by product lines in terms of quality and price
range. This retailer exists to carry out sales, and those sales
offer great bargains and few gimmicks. Prices at Bath & Body
have consistently come down in the years I have been a customer,
and its coupons offer ridiculous deals. Even so, product choice
and variability keeps improving. Again, the customer service at
this retailer is always outstanding. But mostly, Bath & Body
gets on the list because it brings luxury products to the masses
at affordable prices via gimmick-free marketing and solid business
management.
4) Bed, Bath & Beyond is not just for ladies anymore. The
guys love it, too. What’s so special about this place? In
a nutshell, selection and service. One unique thing about Bed,
Bath & Beyond is this: there is always an employee out on
the floor, somewhere near you, who is able to answer your questions
of what and where. Good luck finding a human being on the floor
at Best Buy or Home Depot. The product selection is massive, and
this retailer carries stuff for all areas of the home. It’s
a one-stop retailer. Yet the retailer’s prices are middle-of-the-road
and affordable. This enterprise also offers some extraneous benefits
that customers can truly appreciate. For one thing, returns are
never complicated. "The customer is always right" applies
here. Another service item that deserves a nod is its coupon policy.
Bed, Bath & Beyond frequently sends out 20% off coupons –
I have saved about two dozen of them. They never expire, and they
save you a lot of money on large-ticket items.
5) REI is Recreational Equipment Incorporated. I’m an avid
outdoors woman, and this is my outdoor store. The selection of
outdoor/active equipment and clothing at a typical REI store is
staggering. Whether you jog with the twins or want to climb Rainier,
this is the place to shop. REI offers a $20 lifetime membership
with dividends at year-end that are equal to 10% of your total
purchases. REI is run as a co-op, which means that you get to
vote for the Board of Directors. The return policy here is almost
insane: they take back anything you want to bring back, whenever
you want to bring it back, even if it’s been worn to shreds.
I’ve always wondered how they stay in business with this
policy, but perhaps the retailer’s outstanding reputation
and quality products makes that policy little-used and therefore
manageable. Some people consider REI to be a bit pricey, but its
unique clothing and gear for outdoor types hardly comes on the
cheap. In fact, another thing I like about REI is that it sells
its own brand of clothing and gear, and at lower prices than the
competitors’ products.
In addition, REI offers tons of free workshops on various activities
from snowshoeing and backpacking to rock-climbing, GPS systems,
and bicycle touring. A climbing wall can be found in many of its
stores. The company also has an extensive website that is useful
for the beginning adventurer. The stores are always well-staffed
and people are always courteous beyond expectation. One more notable
fact about REI is that it carries a very large selection of women’s
clothing. REI was the first outdoor clothing retailer to offer
such a large variety, even at a time when it was risky to stock
inventory that was much less likely to sell. REI helped make a
mainstream market where there once a very small niche market.
REI also offers its lady customers almost every clothing item
in a small and extra-small, meaning that even I can find clothes
without entering a "junior" or youth department.
6) Columbia. Gertrude Boyle’s father, proprietor of Columbia
Hat Company, died in 1964, leaving her husband Neal Boyle in charge.
Neal died just a few years later, propelling this housewife to
the head of Columbia Sportswear Company. Thirty-five years later,
Columbia is one of the world’s largest outerwear manufacturers.
Columbia outdoor wear is made of the same high-tech materials
and designs as brands such as Marmot or North Face, yet it offers
far better bargains than its more uppity competitors. Whereas
the others are marketed intensely and thus are perceived as being
of better quality, this is not true. In fact, product innovation
is Columbia’s specialty. It has grown its family of brands
and manufactures high-quality clothing that is offered at conventional
sporting goods stores and discount retailers for low prices. It
also offers lower-priced sportswear and shoes that are in demand
among the non-outdoors types who are attracted to the style and
price of the products. Thanks to Columbia, the great looks and
quality of outdoor wear has become popular among urban, suburban,
and rural customers, and not just outdoor adventurers.
This excellent company was among the first to peddle great Gore-Tex
products. Also, Columbia was one of the first retailers to make
real women’s clothing for real women who engage in something
more demanding than aerobic classes. Women? Out-of-doors? Until
Columbia, you would think that was impossible. Before that, you
borrowed Dad’s hunting jacket and your big brother’s
pack boots.
And, oh yeah, I know I promised not to do this, but as a bean
counter I could not resist pointing out this very healthy balance
sheet from Columbia. This is a sign of a very well-run company.
7) Harley-Davidson deserves a mention on this list because of
its unique products and commitment to growing its consumer base
via very slick marketing, along with dedication to its product
culture and historical past. Clearly, Harley has one of the most
identifiable logos on the face of the earth.
Harley-Davidson motorcycles have come a long way: they went from
being the choice of street punks and gangs to being a product
for which the average buyer is in his or her late 40s and has
an income greater than that of the US median. Most interestingly,
the technology found on Harley-Davidson motorcycles can be vastly
inferior to that of its competitors (Honda, Yamaha, BMW, etc.),
but Harley has something that no other manufacturer else has:
mystique, retro coolness, and historical grandeur. Harley boasts
what is perhaps the sexiest product on the planet. That is why
people who don’t own Harleys wear Harley gear and plaster
Harley stickers on their vehicles. Most everyone admires Harleys
or wants a Harley. One’s "cool factor" is said
to rise by virtue of being on a Harley.
In addition, Harley has made a mint by marketing its logo, name,
and famous color scheme. One can buy Harley wall clocks, desk
calendars, wastebaskets, beach blankets, dog wear, and even golf
balls. The Harley clothing line is huge and spectacular. Product
styles are rotated constantly, and its selection of women’s
clothing is intoxicating.
Harley meticulously grew its consumer base over the years by
offering family-friendly biker clubs, organized road trips, women’s
chapters, and safety/performance classes. Harley-Davidson, with
its ability to market "cool," has been very adept at
enticing middle-age non-riders – including women –
to buy a Harley and ride. The US motorcycle market has seen massive
growth for about the last fifteen years, with much of that growth
due to the upsurge in female buyers.
8) Trader Joe's knows we have to eat and it shows. This great,
privately-owned company has branded itself "your neighborhood
grocery store." With its casual, laid-back demeanor and friendly
staffers, the company that once catered mainly to the granola-conservationist
crowd has caught on with middle-class America. Its stores offer
everything from good-quality, cheap Spanish wines to a host of
organic food items. The company doesn’t spend a lot of money
on elaborate interior décor, but that’s how it offers
such unique foods at very competitive prices.
9) Whole Foods is perhaps the best food chain in America. It’s
an upscale version of Trader Joe’s, only it doesn’t
try to be so simplistic or conventional. Whole Foods strives to
reach out to the food consumer whose budget is a little bit more
flexible when it comes to maintaining a natural, healthy diet.
CEO John Mackey has grown this business from a neighborhood market
to a $4 billion, Fortune 500 company.
Besides its legion of organic produce, meat, and packaged products,
Whole Foods offers the best food bar I have ever witnessed. The
food bar is packed with fresh, natural foods, and it titillates
the consumer with unique recipes. In addition, the Whole Foods
deli counter offers even more avant-garde foods that are sensational.
The food is always fresh and it’s the kind of cuisine you
typically wouldn’t make at home. For many customers, the
opportunity cost of making the stuff at home makes the prepared
version a bargain. Finally, the meat counter is stocked with all
the usual meats, and then some. They sell a variety of raw meats
in the form of marinades, meatballs, pre-seasoned patties, etc.
– and all of the items are distinct. It’s a great
place to let someone else do the food preparation.
Probably the best draw at Whole Foods is the fact that if you
visit on a weekend, you are bound to come across an entire store
full of food samples, from marinated vegetables to cooked meats
to all of its home-baked desserts. I use this as an opportunity
to eat lunch while I’m there, and of course I have been
introduced to many new items that I have since purchased often.
They hand out recipe cards for the meals they allow you to sample.
Over by the cheese section they’ll be warming cheese and
handing it out to customers. This is great marketing, and it’s
one of the things that keeps me coming back. Lastly, the Whole
Foods website is top-notch. The company posts much of its recipes,
and the website even offers you a homepage to sort and store your
favorite recipes.
10) Waffle House is listed last, but it certainly isn’t
a bottom dweller. Some of the best moments can be had in a Waffle
House restaurant. Alas, the restaurants are not in all states,
so some people know nothing about the chain. Waffle House, however,
is always predictably good, as well as cheap. They are all open
365 days, 24 hours per day. As you walk in you are greeted by
no less than 2 or 3 "hello" chants, as this is one of
the company’s signature practices. Sitting at the counter
at a Waffle House is the perfect ideal. Service is immediate and
you’ll be called "sir" or "ma’am."
You’ll usually find a jukebox right behind your seat and
it’s likely to be loaded with Patsy Cline, Johnny Cash,
and Hank Williams, Sr. Also, you can order your scrambled eggs
about 6 or 7 different ways, and you can have breakfast anytime.
Whether I am on a road trip or just trying to get from here to
there fairly quick, I look for that yellow sign.
The business enterprises above are just a small sampling of the
wonders I encounter each day of my life. Every day I look to entrepreneurs
to provide me with affordable basics and new samplings, whether
it is organic food, hiking gear, feminine foot crèmes,
or a quick waffle at 2am. By and large, product differentiation
is crucial for the aforementioned business enterprises. Whether
it is women’s x-small clothing, a Gore-Tex breakthrough,
a sexy 2008 motorcycle that runs on 1950s technology, or a college-educated
service representative that goes the extra mile, capitalism and
the free market offer consumers countless choices to alleviate
their uncertainties about tomorrow and beyond. Somewhere there
was some heroic entrepreneur who had an idea, and he put a financial
stake in that idea and brought it to the market. When the entrepreneur
and his ideas profit, we are all better off for it.
Of course, every individual is going to have his or her own preferences.
But that’s the glory that is capitalism – there’s
something for everyone, and these days, we don’t have to
look very far to find it. In fact, we are so fortunate to live
in a world where we can just Google it.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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