Tag Archives: Price

Instead of lowering prices, add value

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Miracle Mile in Downtown Coral Gables

Miracle Mile in Downtown Coral Gables, Image via Wikipedia

Between Groupon, Foursquare and all the other internet deal, discount and coupon options, the case for lowering prices is compelling.

But it can also be the worst mistake you ever make as a retailer!

We now know that with certain retailers, if you wait, there will either be a sale or a markdown soon enough. So, unless you need the item immediately, you wait. They have trained you that you should rarely have to pay full price.

Now, think again… Are these coupon/discount retailers those in which you find great value? In other words, are you shopping there just with a coupon, or all the time? Are you still getting personalized service?

So, if you have products and services of consistent value to your customers, why would you discount for new customers who are only seeking the savings and not the value? Soon you would have to cut your overhead which would weaken your customer service and the downward cycle begins.

Merchandising and Customer Service is key

I once knew a retailer on Miracle Mile down in Coral Gables, Florida. She and her staff were fabulous and her customers knew they would always get the best, most personal service and the most unique goods. She was a real legend in retail.

On one of my Monday visits to observe and learn from her, I saw her moving tabled merchandise front and center of the store. I said, “New merchandise?” She shook her head emphatically, “No! No one’s buying it so I’m merchandising it better and raising the price.” She showcased the features and benefits better on the table and together with the staff’s customer service training, the value was increased.

It was all gone by the weekend.

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Just Give Me a Price!

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The Great Piggy Bank Robbery

Image via Wikipedia

How often have you had a potential customer call and ask directly for a price on your products or services? This often puts the receiver at odds or on defense on how to answer. Should you give them the price or ask questions first?

There are several strong reasons for a customer to be so direct in asking for a price rather than discuss your product or services.

1. They know specifically what they want and are simply price shopping for immediate purchase and shipping savings.

2. They are inexperienced and uneducated shoppers and unaware of other options.

3. They are “self-service” shoppers and unaccustomed to and wary of being properly serviced by a seasoned salesperson.

Bottom line? It doesn’t matter which reason they have called for a price. They have been conditioned to do so by the money-savers gurus on the news shows and coupon sites. Give them the price answer honestly, then immediately proceed to ask why they picked that particular item. By giving the price up front, you have helped them let their guard down and they will freely discuss why they have decided on this type of purchase. This opens the door wide on your ability to educate them on similar options and services – especially at your company – and win their faith and trust. If you ask questions first, you appear to be evading the issue and may urge a hang-up based on the resistance and lack of confidence you may have conveyed.

Don’t forget that many of the younger generation have grown up using self-serve shopping and the internet to determine how to buy. They may be unaccustomed to being properly helped to make a purchase. Consider the opportunities for consumers who are very busy (and aren’t they all?) to find someone who can really help speed up the process of shopping? It’s amazing to me that retailers are working harder to speed up the check out experience rather than capitalize on the time/service ratio.

Earn their trust and you will earn their loyalty!

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