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Loading ...OK, You might have noticed in my previous post that I got a bit upset about the appliance rebate program coming at us this fall. Apparently America can’t shop without a discount.
We have taught customers that printed price is irrelevant, someone somewhere will pay you to buy whatever it is. The retail landscape has become like Monty Hall’s game show from the sixties, Let’s Make A Deal or a third-world bazaar.
Some of the biggest companies are helping all kinds of product dealers move inventory by paying the customer with rebates. Taking a page from how cars have been sold for the past twenty years – and that’s worked well, right? Everyone is embracing employee discounts, friends and family shopping days and rebate programs.
Why not just improve your sales team?
When I began my retail career, it was common knowledge that in many appliance stores there used to be a “loss-leader” that was heavily advertised; a washer with a “the golden spike” in it if you will. The understanding was if you the saleman sold one, you would be gone because you couldn’t sell; a salesperson’s job was to sell the profitable item.
Sears’ had a different sales strategy I’m told by a former principal, “Sears sold up by selling down.” They presented a full line of each appliance, from a stripped down model you probably didn’t want, to a model with gadgets that you really didn’t need.
They didn’t expect to sell many from the top or bottom of the spectrum. The sales strategy was to present the full line quickly, identifying the shortcomings of the low end model and the gee-whiz features of the top-of-the-line.
Depending on how the sale was going, the salesperson would say, “Let me be honest with you. You’re paying for features in the top-of-the-line model that you probably will never use. I don’t think this is the best value for you. The model under it has features that you will use and for a lot less than the top of the line. I suggest you save some money by buying the next model down.
Sears made a profit, the customer got what they wanted, everyone was happy. Nowadays in most appliance stores, if a clerk came over, they’d ask if you “found everything ok” and a sign would tell you there was a rebate on it.
Of course, that was then. One of the people I follow on Twitter, EdisoftFan alerted me that at their local Sears is a chart ranking associates by credit card applications – nothing to do with sales. Is it a mystery Sears is flailing these days?
In a related story in today’s Los Angeles Times details how IKEA is struggling for profitability in China, Beijing loves IKEA. People flock to the store but not for shopping. Linda Xu, a company spokeswoman rolled her eyes when she came upon a trio of slumbering customers, ”The brand awareness is great, but the question is, how do we get people to open up their wallets and spend money?” That’s a salesperson’s job.
An office manager visiting with his family said he bought a couch elsewhere that looked just like IKEA furniture. “Why spend so much money when you can have the same thing cheaper?’ he said.” That’s a salesperson’s job.
The only way your store will standout from your competitors, that your crew will be different than any other, that you’ll make a profit as we come out of this stubborn recession is to learn to sell better. Your merch can’t do it alone. That comes from having a process, being coached and tracking results.
That’s why I’m hosting an intensive selling workshop in Chicago Monday, Sept. 21 for anyone looking to sell more of their products or services.It is based on the same sales strategies I’ve used for small mom & pops to companies like Brother, Yamaha and Hunter Douglas. Full details are here.
Consumer sentiment is up – are you ready to sell the merch or continue sitting there looking for a pathetic handout like Whirlpool?
Sales training is the magic bullet to growing your sales, not discounts. I have the track record to prove it in any economy.You won’t be able to use the excuse its “the economy” any longer. Change or die my friends.
Take my challenge and meet me in Chicago next month.
An insightfull post. Will definitely help.
Apart from traditional marketing, these days most of the marketers use viral marketing. I came across a website called http://www.how2talk2.com. It allows people to write articles about their products and services for free in a fun way. You write an article in the form of how to actually talk to someone and you can include links on all of your websites in your articles.
Also, thanks for the great post!”