In a world caught up in trying to pinch pennies whenever and wherever they can, retail behemoth Wal-Mart is getting caught up in a new and what seems – at first – an unlikely promotion. According to an article at Fast Company, Wal-Mart aims to change the country’s perception of “swirls” – more appropriately known as the compact fluorescent lightbulb. What seems unlikely is that swirls cost more than your standard bulb.
Their goal is that they want to sell every one of their regular customers over the next 12 months – 100 million in all – one swirl bulb. It’s probably a reasonable goal, but in some respects, they have their work cut out for them. Most people have seen these bulbs. We all have. Usually they sell for something like $3 each, next to regular old light bulbs that sell for something more like $0.50 each. Which do you reach for when you buy? If you’re anything like me, you probably reach for the standard bulb.
I’ll use myself as an example. I’m generally somewhat sensitive to issues of the environment, and I love to save money where I can. But it’s tough to spend anywhere from 6 to 10 times the money on what appears to be the same bulb (shape excluded). Now don’t get me wrong. Intellectually, I understand that the swirl will save money by not needing to be replaced as often and it won’t use as much electricity and all that. Heck, I even bought a four-pack of them that was on sale for $10 or so, but then I stuck it in a back corner of a cabinet, where it’s sat until, well, today. Woops.
In any case, Wal-Mart has partnered with GE, which is another interesting twist (pardon the pun). GE currently holds some 60% of the standard incandescent bulb market. By partnering with Wal-Mart, they are essentially giving the go-ahead to start dismantling that market, and by all accounts, it appears that they are ready for it. Since swirls seem to be taking off, there isn’t a lot of choice – either they do it, or sit by and watch some other company do it and get the sales, and still lose their standard bulb business. Once you put it into those terms, it makes more sense.
Executives are predicting that by the end of 2006, GE will be closing an incandescent bulb factory in St. Louis, after tripling capacity for swirls (this after already tripling swirl capacity between 2004 and 2005). However, even this isn’t a great thing, because the downfall to manufacturing (and selling) swirls is that they supposedly don’t need to be replaced as often. Once you get enough people buying into your vision, the people making them will have to cut back that production as well. I suspect that day is a ways off, however.