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Lining Your Reps Up Like Bowling Pins
May 22, 2007
A local jewelry store hosts an annual spring event where the store offers a 20% discount on all merchandise in store. The postcard reads as follows:
ABCD invites you to our “3rd annual spring event”
More than a dozen top designers showcasing their exquisite jewelry collections at an incredible 20% discount.
Featuring diamond fashion, colored gemstone jewelry, diamond earrings, pendants, pearls, bracelets, wedding bands, engagement rings and much more.
The postcard also says they will be serving hors d’ oeuvres and valet parking, and so forth. I had to go and see the event…the store is my competition and I had to know what all the fuss was about.
Outside the store, two beautiful S-Class Mercedes were parked, a pretty white tent like awning, and a red carpet. I have to admit the entrance looked nice. Inside, the store was packed and their were “employees” everywhere. I’ve been in this store many times and realized the store had hired many new faces, and then I realized the new faces were mostly men, and those men were all wearing suits.
I stopped at a case and began to glance at merchandise I had never seen before. I know this store doesn’t regularly carry these large diamond cuffs, large yellow diamonds, and so on. The word “brilliant” came to mind. He got all his Reps from each of the branded companies to come out to his annual event, stand behind the counter, and sell their own merchandise at this discounted price.
As a businesswoman—the first thought that came to my mind was, “He was saving money by having his Reps come out and sell behind the counter.” Yes, these Reps too were writing receipts. The next thought was, “A great way to showcase huge amounts of merchandise to “reel” customers in. The store didn’t carry these kinds of goods everyday and this was their chance to shine.”
So, I went home and thought more about the event and because I’m so obsessed with anything that revolves around our industry, I laid in bed replaying how this kind of event could benefit or hurt a store. The store has two events a year where they offer a 20% discount on all merchandise…good way to move inventory but the store was actually showcasing new merchandise? Will a twice a year sale give the store a bad reputation? These brands are allowing a 20% discount on their goods…don’t brands have strict rules about this? If another store down the street were to be carrying the same line…this would be unfair? Having your Reps selling behind the counter—good thing or bad? Do customers want to speak to the Reps? Can they handle this kind of situation? Do the Reps actually sell? Showcasing all this merchandise that the store doesn’t regularly carry—is that deceiving the customer or can you turn it into a positive?
I started to ask my Reps these various questions and if they had ever done an event like this—One of my Reps said, “If a store wants to line us up like bowling pins then I don’t want to be apart of it and the company has realized it is not beneficial and we are paying more out of our pocket than it is worth. If the store would like me to send numerous pieces for an event like this, then sure I’d be happy too." The other Rep, “The store does a huge volume for those three days and we add to it. I’d do it for my other stores too.” No answer regarding the 20% Discount?
Posted by Shanu Singh Guliani on May 22, 2007 | Comments (1)
