Setting Your Store’s Prices—3.5 Times and 30% off Everyday?
At my FL store the tag prices were marked to be able to offer 50% off everyday. Of course it was a gimmick, but it worked for the store. At my store in Charlotte—the tags are marked at what I want to sell the pieces for—a well made piece of jewelry, at a reasonable retail price to the consumer, and a reasonable profit to stay in business; but of course customers are still asking for a discount. Unfortunately, I don’t have it in most of the pieces to be able to offer a discount and I’m finding out some of my customers are buying the same brand name item at another local store. So—I went to that store (not so local but close enough) and found out their tags were marked higher and they were discounting the piece and selling it about the same price as Guliani’s.
Are consumers really that naïve? OR Is just hearing that you got 25% off helping to close the deal? What’s the price on your tag like?
Al commented:
Depending on the merchantise being sold, some retailers really don't want to see the customer again. If that's the case then anything is fair game and the net has to be cast far and wide.
Retailers who do want to see the customer again will take care with honesty and good service. The net only needs courtesy or rudimentary casting because word-of-mouth will automatically target desireable customers.
inc commented:
And you wonder why our industry has a bad name?
Herd Mentality commented:
This issue became crystal clear to me one day when I was visiting one the stores in the company I was with. There was a competitor in the center that was running the usual 70%-off game. There were items that were identical to our selection (down to the vendor hallmark). Of course, their 70%-off price was identical to our 30%-off price. I asked a customer what she would prefer -- 70%-off, or an everyday low regular price, even if the prices were the same. Without hesitation, she said whe would rather have "the deal."
So that is where we are. It's reality, and it stinks. But we as an industry have fed into the discounting frenzy to where we have trained our clientele that the regular price is meaningless. We can blame Wal-Mart and the like all we want, but we went along with it for the attractive marketing and signage that big number discounting can provide.
So the solution is, of course, up to the individual retailer. An independent with custom design capabilities has more control of their message and pricing. Mass-market jewelry companies have to throw a wider net to attract business, so screaming "up to 70% OFF" is easy to do.
I am with one of the bigger chains. We mark it up to mark it down. I don't see this trend flagging any time soon, if ever.
Delia commented:
