The headline above should be the battle cry for every retailer. Retailers in every spectrum of the retail world are faced with the ever- increasing "savings," "deals" and "discounts" offered by their competitors. Customers are so conditioned that if they do not get a deal or discount, it's just not worth going shopping.
The headline above should be the battle cry for every retailer. Retailers in every spectrum of the retail world are faced with the ever- increasing "savings," "deals" and "discounts" offered by their competitors. This attitude is fostered by the large amount of flyers, television ads and a multitude of online and other marketing vehicles thrown at us and all this at the expense of the bottom line. How do "they" do it?
Who are "they"? They can be anyone. The large chains with the perceived deep pockets, buying groups who collectively advertise and to some extent, the smaller individual retailer who feels forced to jump on the band wagon. No one can really afford to discount, have sales or give away deals. Why should you charge less for products that people really want to buy anyway? Well, if you don't, you are perceived to be an expensive store; you're not "with it," so to speak.
How do they do it? A better question is: "how is it done?" The answer is actually very simple, but labour intensive. It is imperative that in today's retail environment, large or small, the image of "affordability" and "value" comes across as soon as customers walk in the store. For example, the products sold in a Birks Jewellery Store are expected to be high priced, yet a young couple looking for wedding rings will be on cloud nine walking out of the store thinking they got a very good "deal." Never mind that the rings were a small fortune – they got a deal! The in-store promotional materials are telling us that we all can afford what this store has to offer.
Translate that perception to your own store. The products you sell are no different than jewellery – customers want the products. But giving discounts and deals costs you money... a great deal of money, in fact.
Start with creating that value perception in your store by having product displays that reflect any of your promotional materials (flyers, in-store posters supplied by vendors, nationally advertised products etc.). Focus on products that have higher margins where you can afford to take a little less. Be aware of your "price sensitive" products. These are the products that your customers know the acceptable retail price, and your retail price should not be higher than what your competitor charges.
For every advertised, sale item and discounted product in your store, you should merchandise an "add-on" item. This item needs to complement the promotional merchandise on display and recover the lost margin dollars. Not offering discounts, sales or deals may hurt you in the long term because of the shopper's perception of a lack of a bargain. By taking the approach that "money saved in the store, must be spent in the store", you will find that "being with it" pays for itself. •
News, Views and Happenings in the world of Canadian Natural Health.
• Launch your new products
• Support your sales team
• Be visible as stores re-focus and re-charge
• Stake your position in the “new normal”
• Reach more stores – from coast to coast
• Introduce your company to new potential customers • Combine CNHR’s print, video and podcast options
Retailers want to see more of your new products. So, we’re making it easier for you and them.
Introducing our new Product Profile Package: a three-pronged way to reach retailers by combining print, video and podcast. You get all three!
PRINT: Claim a spot on CNHR’s Product Profile pages, mailed to health food stores coast to coast, and read by over 10,000 retail store buyers, owners, managers and staff.
VIDEO: This is new for CNHR – video product reviews. You’ll get a 30 second review of your product with product image and voiceover. Five products per video, then e-blasted to CNHR’s database, to be shared among staff and with the store’s customers.
PODCAST: Also a new feature. Your product will get a mention on the New Products portion of the popular CNHR News Podcast, hosted by CNHR editor Bruce Cole and Deane Parkes. Your company name, product name, a couple of lines, followed with your company contact information.
Three-platform exposure for your new products, delivered by CNHR, the trusted source of industry information retailers have counted on for 24 years. Three platforms for $699.00
For more information please contact:
Ellen Wheeler, Director of Sales