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The CEO of Whole Foods on "Conscious Capitalism"

29 points by zackattack 17y ago

bwelford 17y ago
As is said, he sounds like an a great guy. However we should not accept what he says just because of that. The fact is that his business model will lead to success and that is what should sell it to other CEOs. His picture looks very similar to the core values in the Lincoln Electric approach. They have achieved profitable success for over 100 years. What more could you ask?
- zackattack 17y ago
  Yes, if you look more depth in the PDF, Whole Foods is really killing it, especially when compared to competitors or even the S&P 500.
josefresco 17y ago
I love how the article ends with ... "Mr Mackey seems like a wise man and I look forward to meeting him one day. But I’m too price sensitive to shop at Whole Foods – I shop at Trader Joe’s, where cheap prices, great product, chill staff and convenient delivery make me a happy customer." Good example of true capitalism and 'healthy' competition.
- grandalf 17y ago
  Trader Joe's sells a lot of garbage. I shop there now and then but if Trader Joe's is a substitute for Whole Foods then you are not shopping for the same sort of items. I've heard rumors that some Trader Joes (such as the one in Boston) have good fresh produce, but none that I've ever shopped in do. Trader Joe's is essentially a clever white label branding and merchandising strategy. It's a great store, but mostly sells processed, frozen food and lots of junk food and booze.
grandalf 17y ago
I love whole foods and respect John Mackey tremendously... Some people day that Mackey is not really a capitalist or that he's an apologist because he advocates values other than the profit motive. I think that Mackey's approach is most accurately termed entertainment capitalism. We pay extra for the story behind the purchase, and that story adds value to the purchase. We identify with the story and feel better about ourselves after the purchase. It doesn't matter what the story is... but it's every bit as capitalistic to sell a story + a good/service ... Apple does it, Harley Davidson does it, etc. However most people only buy a new laptop or phone or motorcycle once every few years. Mackey has successfully applied this business model to something people buy one or more times every single week. If I am willing to pay $7 to go to the movies to be entertained for 2 hours, why wouldn't I be willing to pay $30 extra for groceries to be entertained all week long?
- zackattack 17y ago
  That's what the wise marketers preach.. you must sell an emotion, something that enhances a person's narrative/ego. Otherwise you are selling a commodity. I wonder how this applies to my blog!
- drenkert 17y ago
  'Entertainment' can paint any kind of picture, true or not. There's a huge cost when a consumer discovers she's been duped. Take, for example, http://www.ethicurean.com/2006/05/18/judys-eggs/ http://www.ethicurean.com/2006/05/18/judys-eggs/ Here's a company, pushing a brand that's supposedly some little, old Judy who's just figuring out this web stuff and doesn't have time to reply to all her email... BULLSHIT. It's Petaluma Farms, one of the biggest egg producers in California. The cost of this 'entertainment' affects all producers who honestly portray their products and story. Their messages are discounted and diluted by this bs. I've spoken with a grocer in the SF Bay area who say most producers are "liars and full of it" because of this kind of advertising. That's what this really is, bs advertising and it doesn't help anyone. For honest businesses, properly portraying their operations, let's call it what it is... Transparent Capitalism maybe?
  - grandalf 17y ago
peterwwillis 17y ago
Rant: There is no point in hiding an entire article just because I disable JavaScript (noscript default block). View Source and ooh, there's the story. Even if somebody has a 'good reason' for doing this, it's annoying and i'll just work around it. I mean, if I have the peace of mind to disable javascript i'm just going to find another way to view your content without it.
- zackattack 17y ago
  I think it's a bug with the "Flow" theme. Suggest an alternative, I'm definitely ready to move on.
hyperbovine 17y ago
Oh that's rich. This can't be the same John Mackey who spent years anonymously trashing a competitor's stock so he could scoop them up on the cheap: http://www.reuters.com/article/idUSN1133440820070712 http://www.reuters.com/article/idUSN1133440820070712
- zackattack 17y ago
  It is. Even in the original PDF, though, Mackey explains that they stop their transparency just short of enabling their competitors.
thejo 17y ago
Related: an excellent debate on the social responsibility of business featuring Milton Friedman, John Mackey and T.J Rodgers http://reason.com/archives/2005/10/01/rethinking-the-social-responsi http://reason.com/archives/2005/10/01/rethinking-the-social-...
- sy11 16y ago
  Thank for the link. That was an excellent debate and good articulation of view points.

29 points by zackattack 17y ago

As is said, he sounds like an a great guy. However we should not accept what he says just because of that. The fact is that his business model will lead to success and that is what should sell it to other CEOs. His picture looks very similar to the core values in the Lincoln Electric approach. They have achieved profitable success for over 100 years. What more could you ask?

zackattack 17y ago
Yes, if you look more depth in the PDF, Whole Foods is really killing it, especially when compared to competitors or even the S&P 500.

josefresco 17y ago

I love how the article ends with ... "Mr Mackey seems like a wise man and I look forward to meeting him one day. But I’m too price sensitive to shop at Whole Foods – I shop at Trader Joe’s, where cheap prices, great product, chill staff and convenient delivery make me a happy customer." Good example of true capitalism and 'healthy' competition.

grandalf 17y ago
Trader Joe's sells a lot of garbage. I shop there now and then but if Trader Joe's is a substitute for Whole Foods then you are not shopping for the same sort of items. I've heard rumors that some Trader Joes (such as the one in Boston) have good fresh produce, but none that I've ever shopped in do. Trader Joe's is essentially a clever white label branding and merchandising strategy. It's a great store, but mostly sells processed, frozen food and lots of junk food and booze.

grandalf 17y ago

I love whole foods and respect John Mackey tremendously... Some people day that Mackey is not really a capitalist or that he's an apologist because he advocates values other than the profit motive. I think that Mackey's approach is most accurately termed entertainment capitalism. We pay extra for the story behind the purchase, and that story adds value to the purchase. We identify with the story and feel better about ourselves after the purchase. It doesn't matter what the story is... but it's every bit as capitalistic to sell a story + a good/service ... Apple does it, Harley Davidson does it, etc. However most people only buy a new laptop or phone or motorcycle once every few years. Mackey has successfully applied this business model to something people buy one or more times every single week. If I am willing to pay $7 to go to the movies to be entertained for 2 hours, why wouldn't I be willing to pay $30 extra for groceries to be entertained all week long?

zackattack 17y ago
That's what the wise marketers preach.. you must sell an emotion, something that enhances a person's narrative/ego. Otherwise you are selling a commodity. I wonder how this applies to my blog!
drenkert 17y ago
'Entertainment' can paint any kind of picture, true or not. There's a huge cost when a consumer discovers she's been duped. Take, for example, http://www.ethicurean.com/2006/05/18/judys-eggs/ http://www.ethicurean.com/2006/05/18/judys-eggs/ Here's a company, pushing a brand that's supposedly some little, old Judy who's just figuring out this web stuff and doesn't have time to reply to all her email... BULLSHIT. It's Petaluma Farms, one of the biggest egg producers in California. The cost of this 'entertainment' affects all producers who honestly portray their products and story. Their messages are discounted and diluted by this bs. I've spoken with a grocer in the SF Bay area who say most producers are "liars and full of it" because of this kind of advertising. That's what this really is, bs advertising and it doesn't help anyone. For honest businesses, properly portraying their operations, let's call it what it is... Transparent Capitalism maybe?
- grandalf 17y ago

peterwwillis 17y ago

Rant: There is no point in hiding an entire article just because I disable JavaScript (noscript default block). View Source and ooh, there's the story. Even if somebody has a 'good reason' for doing this, it's annoying and i'll just work around it. I mean, if I have the peace of mind to disable javascript i'm just going to find another way to view your content without it.

zackattack 17y ago
I think it's a bug with the "Flow" theme. Suggest an alternative, I'm definitely ready to move on.

hyperbovine 17y ago

Oh that's rich. This can't be the same John Mackey who spent years anonymously trashing a competitor's stock so he could scoop them up on the cheap: http://www.reuters.com/article/idUSN1133440820070712 http://www.reuters.com/article/idUSN1133440820070712

zackattack 17y ago
It is. Even in the original PDF, though, Mackey explains that they stop their transparency just short of enabling their competitors.

thejo 17y ago

Related: an excellent debate on the social responsibility of business featuring Milton Friedman, John Mackey and T.J Rodgers http://reason.com/archives/2005/10/01/rethinking-the-social-responsi http://reason.com/archives/2005/10/01/rethinking-the-social-...

sy11 16y ago
Thank for the link. That was an excellent debate and good articulation of view points.