Is Convenience Worth The Premium?

Seems each day I come across another company or startup making the sale, delivery or return of goods more convenient. For example: Postmates, Google Express and Instacart provide "on-demand" deliveries for a number of retailers for a fee or slight markup on product. Shyp provides a service that will pickup your eCommerce return, package and ship for you for $5 plus the cost of shipping. These and other companies provide convenience for what is typically a nominal fee. 

When catching up on news this morning, I came across a Vancouver store named Pirate Joe's. In the US, Trader Joe's is known for its' quirky attitude but appreciated for low priced, high value groceries. Due to the lack of Trader Joe's in Canada, the owner of Pirate Joe's is able to sell product he purchases across the border in the US for 2X the price. Customers are willing to pay the premium rather than drive 55 miles to the closest Trader Joe's south of Vancouver. It seems business will remain strong as Trader Joe's has no intention of expanding into Canada or opening a cross border eCommerce site anytime soon. 

Apparently convenience is truly worth the premium.

Source: http://www.wsj.com/articles/pirate-joes-se...