ox-y-mo-ron
a figure of speech in which apparently contradictory terms appear in conjunction
“We have the best product in town! And it’s 25% off today!”
- Anonymous jeweller
What does the future look like? Can you picture the landscape of retail in 20 years? What about in 5 years? In a global recession the world changes and shifts its paradigm. Our reality is re-defined and while times are tough our resolve is strengthened and our talents are pushed.
Some retailers have no choice but to discount. Their entire definition is established by an owner who puts “50%-off” signs in the window because of the pressure of a entire industry saying “0%” discounting is impossible. When I ask a salesperson, manager or owner why they discount it is always the same answer - “Well, we have to. Don’t we?”.
The answer is Yes.....and No.
If you’ve been discounting for the last few years you’ve got a tough time ahead if you want to stop. Because if you’ve been discounting, any repeat business you’ve been getting is because of that and not your customer service or relationships.
If you have been discounting you don’t have to stop - you just need to handle it better. When a customer asks “Can you do me a better price?” or “Can you take any off for me?” you have an opportunity to still sell something. And you won’t have to discount it as much as you do now!
I’m still stunned by how often salespeople go to 10% as the default discounting position. Or go and ask the store manager if they can bring down the price without checking how much of a discount the customer actually wants!
Rather than procrastinating or pretending to be working out figures on a calculator in front of your customer, what about being honest? What about creating a sense of formality in the sales process?
Can you imagine responding with this - “A discount? I’d love to try and accommodate you today. Can you tell me what you were hoping for?” And you’ll be surprised how often the figure is less than the 10% you go to as standard. And remember the language - “I’d love to try and accommodate you today”
Of course, you can get the customer who won’t tell you how much they were looking for - “No, no. You tell me how much you can take off the price first”. Or the customer who throws out a ridiculous discount - “Alright then. Take off 50% for me”.
Firstly, don’t take it personally. They’re just trying to regain the power in the relationship and this is their way of doing it. But now it is more important than ever before to bring a sense of formality to the process - “I’m afraid we just don’t do that here at Smith Jewellers. I’d love to be able to do something for you but I really need to know how much you were hoping to spend today.” Or - “I’m afraid I can’t take off 50% because the boss will never forgive me! If you let me know what you’re budget is I may be able to match it or find another item that would be suitable for what you were hoping to get today.” That’s right - today!
If discounting is going to be part of your business model there is certainly nothing wrong with that. But make sure you’re in total control of the process. Done correctly it will increase your current average margins and your customers will respect you for it. Don’t lie and use language like “We don’t normally discount but....” - if you always discount. It will come across insincere and you will not get any points with your customer for it.
There are very few retailers I know who have a zero tolerance policy to discounting - and they can only get away with it because their service is extraordinary. So if you want to stop discounting how will you be memorable? What will be the in-store experience?
And why aren’t you doing it now?
Excellent!!
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