Word to the RetailWise IX

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Price isn’t everything. It’s the value that counts.

At the end of last week, I wrote about a colleague of mine who had been subjected to a condescending Sales Associate. I wanted to follow up with that article because it mentioned that my colleague had decided to purchase from the store with the best price on the laptop that he had decided to buy. 

I asked him why he chose to go to that particular store just based on price and he told me that the store he normally shops at, for this type of thing, was sold out and he needed it immediately. So, he just checked on line for the best price. 

But, it’s important to remember that price is not everythingValue is. There are many, many consumers out there willing to pay more for an item when they see value. 

Benefits such as … a clean, well maintained store that has an excellent reputation for both quality products and service excellence, professional staff who are both friendly and knowledgeable, staff who are mature and have good attitudes, staff who they have some rapport with, and anything else that creates value for the customer.

Because….

There are many things that customers want and/or need, whether they articulate it or not, but they must see the value in what they buy. Let’s not forget that people buy with emotion and justify with logic.

Granted, sometimes price is the only thing they care about…but that is usually based on the type of item they are purchasing. That is why WalMart and other stores, similar to them, do well. They get the sales based on price.

But if a customer wants the benefits I mentioned above, then price is not necessarily the first thing they think of when they’re ready to buy.

The point is that if you own or manage a retail company, or store, that sells at higher prices…and if you are providing the value that people want…then you don’t have to worry

If, and when, your staff tell you that the competition is selling for less and that is the reason they are not getting the results you expect – ie: to meet their targets – be sure to check it out to make sure you’re not way out of line, but don’t give in to price cutting just because! It can be a downward spiral and, if you are offering the benefits people want, and if customers see the value in your offering, you don’t have to be caught up in that downward spiral.

One thing you must do, however, is make certain you have everything right. And, most importantly, the right staff…the ones who make customers happy to pay more!

Retail Business Academy

We must be driving sales every hour of every day, in every store, in every market.

This sounds pretty straight forward, right?

I can hear it right now. Some of you are saying “Of course, we’re driving sales every hour of every day!” But I know, for a fact that for many of you reading this…that would be an assumption and an incorrect one, at that.

So, I’m asking you to give this matter serious consideration for just a few moments. 

Ask yourself these questions and see what you come up with:

1) How do I know that everything that can be done, is being done, in every store, in every market, to drive sales today?
2) How could I know that?
3) What follow up is in place to ensure that it is happening?
4) Do our results prove that everything is being done?

If you ask these questions and don’t come up with the perfect answers…answers that convince you that all is well…then you have to do something.

Achieving sales targets – most targets, for that matter – requires unrelenting, laser sharp focus. If you have systems in place to keep that focus, every hour of every day in every store and market…great! 

But, if you don’t, there is excellent news for you. Once you put those systems in place…you’ll see a nice sales increase! It’s guaranteed.

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