The retail world is upside down. And I don’t mean because of Amazon…
Once upon a time merchants purchased the cheapest items to draw people in and then because they held high regard for their retail sales training, upsold what was the best answer for their customers.
In today's topsy-turvy world, retailers are now showing the cheapest thing as the ANSWER.
How this happened
When sales are down, businesses cut employees.
Next is training.
What this has done
The lack of retail sales training leads employees to sell cheap as the answer... and that’s expensive for your business.
Case in point …
I was working with a sporting goods store once when I asked a young woman, "What's the best fishing hook you have?" She quickly pointed out the feature and benefit with, "These are cheap so you won't care when you lose them."
While that was indeed a feature and a benefit, I asked, "But isn't the reason you lose them is because they are cheap - they either break or you can't hook the fish?"
She came to realize that the best hook, the most expensive was because it was twice as strong and much sharper so the fish could be set easier - resulting in more fish caught. That's what the fisherman wants - right?
More fish, less frustration.
That's the selling point…
The cheaper hook, in this case, was the most expensive - when you factor in time lost and fish lost - not to mention frustration to the fisherman. Think about all it took for that guy to carve out his time, get all his gear, find his perfect spot and sit there for hours in what he thought would be a fun afternoon... then think about those cheap hooks and the fish he lost.
Why selling the cheap is bad
When you just sell the cheapest item as the answer, you open yourself up for:
Having to mark down your premium items.
Dissatisfied customers telling their friends, “It (broke, split, collapsed) after just a few (wearings, uses, tries.)
Dissatisfied customers telling their friends, “They used to carry good stuff, now it’s all ‘Made in China.’”
Oh yeah and it’s not just sporting goods…
You hear it in the auto parts store; “You could just do this and get the same effect – for less.” You hear it in the apparel ads, “Same fashion – for less.” You hear it in the garden center, "Save money, get the smaller ones."
Except that what seems the same isn’t. A hook is not just a hook.
You have to educate the employee first, so they can educate the customer second.
You need to point out why the most expensive item costs more and not assume anyone will see its worth just because it’s priced more.
Customers are settling more and more with their food choices, clothing choices and furniture choices – they don’t realize all they don’t know; they just feel they are being ripped off, which leads to their frustration first with their cheap purchase, and then with the person who took their money for it.
Anyone can vomit features and benefits to a customer, but the true winners in retail are the ones who enjoy the game of selling, who analyze what they say, how they say it to a customer and connect this process to every sale they make. Those winning salespeople were educated on the benefits of the more expensive items and knew that those hidden features would lead the customer to say, “I’ll take it.”
While everyone can see a low price, most customers – and most employees nowadays- don’t see the eventual cost to the customer.
Like those fishermen and their cheap hooks, customers who leave with the cheaper items more often than not will find themselves frustrated using the cheaper product.
And remember, you handed that frustration to them.
And now you’ve lost them. That’s what upside-down thinking does to people.
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The 5 Shifts Brick-and-Mortar Retailers Are Making to Generate Up to 20% Higher Profits Every Month
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