Richard J. George, Ph.D.

Sam's Club Helps Small Guys Get Loans

July 7, 2010

FROM RETAILWIRE:
Getting credit is not always easy for new business owners, but now one very large business, Wal-Mart's Sam's Club division, is working to help members get loans of up to $25,000 through the Small Business Administration. What do you see as the pros and cons of Sam's involvement in helping club members apply and get SBA loans?      [more...]

Sam's Club approach is very simple: solve your customers' problems and that will solve your problems. The key to this strategy is the differential advantage that this program gives Sam's. Every club store touts low prices, pre-picked product, extended hours for businesses, and a variety of insurance and travel programs. However, this program's uniqueness may very well be a tie-breaker for a small business determining which club store to join.

Marketing is a race with no finish line. This will give Sam's an advantage until the other major players do the same. Then another problem-solving innovation must be launched. The race will continue.