Discounts

I have never been a big advocate of offering general product or service discounts. Discounting tends to not only devalue a product or service but can also get a customer wondering where the bottom price point exits. Discounting to resellers or for volume purchases is a different matter. What I’m referring to are discounts to lure customers to make a buying decision.

So I was in a bit of a quandary as I prepared for exhibiting at a trade show earlier this month. I wanted to lure people to our products and to entice them to place orders at the show, but without offering any discounts. My solution was brilliant and helped me to exceed my sales goals for the show. It was a simple solution.

The lamps we make and sell tend be be bulky and consequently are costly to ship. Depending upon the distance and the specific product, shipping charges within the United States can vary from $7.00 to over $30.00. The customer pays whatever UPS charges us. So my decision was to waive shipping fees for any order placed at the show.

A prominent sign announced the deal, and I mentioned the savings to everyone I spoke with. It worked, as we came back with a pocket-full of orders! We were able to offer a good deal without discounting product pricing in the eyes of our customers.

Will Limkemann
Siqua Group Limited

A great buying experience

I hate shopping, but I had an amazing shopping experience yesterday. I bought an IPhone. Well, not the new IPhone 4 but the prior version. I bought the phone at the Crocker Park Apple store.

Two things made the experience amazing, and both are lessons for any retailer of technical or high-end goods.

First, the sales associate was friendly, knew his product and, most importantly, listened to my needs and wants. Understanding what I wanted he gently steered me to the right products. Did he try to upsell to maximize the sale for Apple? Absolutely! But he did so by educating and not by “selling” or pressure.

Second, the point-of-sale technology was amazing. Advanced technology is no surprise in an Apple store! There is no check-out counter or line. There is no cash register. Each sales associate has a hand-held wireless device similar to an IPhone which scans the product bar-code and in which the associate enters all needed information. To complete the sale, the device has a slot for reading a credit card. If desired, a receipt can be printed in a back room and retrieved by the associate, or simply sent to the customer’s e-mail address.

Both the sales techniques and the point-of-sale technology should be studied by any high-end durable goods retailer. Both make the customer feel important. Both enable the sales to be transacted to the satisfaction of the customer and the retailer in the best possible way.

If you are such a retailer and in need of an Apple product, go to your nearest Apple store and see what you can learn from the experience.

Will Limkemann

How much do credit card transactions really cost you, the merchant?

Almost all businesses now consider credit card sales to be part of the cost of doing business. It’s not only competitive to accept plastic, but credit cards provide instant cash and eliminate problems associated with collecting past-due accounts receivable. Certainly the convenience of credit cards come with a cost, and the cost can vary depending upon the processor you have contracted with. But, do you really know and understand what the true costs associated with each credit card transaction are? Check out this article from Inc Magazine.

Will Limkemann