Big Bird Lock-in
In the northeast of the United States, there is a supermarket called Giant Eagle. In the Pittsburgh area, it is by far the most common—nearly monopolistic. As many stores do, they have a card that allows you to take advantage of special offers when you check out: the Giant Eagle Advantage Card. Of course, this also allows them to track your purchases and provide coupons at checkout based on that information. It’s really a brilliant system.
Several years ago, they started opening convenience store gas stations by the name of GetGo, often in close proximity to their grocery stores. In concert with this new endeavor, they introduced the FuelPerks program. For every $50 you spend in Giant Eagle using your Advantage card, you earn 10¢ off per gallon at GetGo, again, by scanning your card before pumping. This was another brilliant move, and it resulted in my wife usually getting her gasoline at GetGo stations. However, you save the most by applying it to a full tank, and we don’t spend enough on groceries to earn savings on every tank of gas for one car, let alone two.
I pass three gas stations on my daily commute: one GetGo and two BPs. One of the BP’s is close to the GetGo, so they compete on price and are typically the same. I always went to the BP because it is easier to get in and out of and has more pumps.
Very recently, Giant Eagle crossed the streams and initiated the FoodPerks program. As I’m sure you can deduce, buying gas at GetGo will earn you a discount on your groceries: 1% for every 10 gallons. Bingo! They have now achieved lock-in. I’m buying my gasoline, whenever possible, from GetGo. Absolutely brilliant.



