I stand in line at the checkout of a clothing store with a bunch of clothes to purchase in my arms. I have spent the better part of an hour choosing the clothes, and I am ready to pay for them.
When I get to the check out, the clerk tells me that there is a special today that will save me an additional 20%. I don’t have to do anything. I don’t have to give my phone number, email or address. It’s just an unannounced special.
Now don’t get me wrong, I don’t mind getting the extra discount, but I was perfectly willing to pay the ticketed price (which was actually discounted too). So they haven’t gained anything by giving me the extra discount.
If retail is indeed suffering as much as we all hear it is, what is going on? Why are they cutting their profits by offering additional discounts which aren’t tied to a buying incentive?
Am I the only person who thinks this?
Cheers,
Steve
Steve,
Ordinarily I would argue that that “surprise is the foundation of delight” and chalk the additional discount up to building customer loyalty. However, a surprise discount, to your point, doesn’t seem to be such a random act of kindness. A scented candle or other gift might have done the trick.
Rather, if the merchant had the latitude to offer the additional savings, they might have done better to let the buyer know in advance. You might have bought even more stuff knowing that you were not at the budget ceiling for your trip.
And now that you stand arms full at the register, the chance that you will leave the checkout line now is very unlikely. So I agree. This seems like offering a free appetizer to diners who already asked for the check.
I have a feeling some genius said, “We’ll make them think we do this all the time. Then, they’ll shop with us more often.”
But I’m not sure about that explanation either.
BIZARRE is the perfect word to describe this.
I had the same thing happen to me. I asked the clerk, who was the manager, how they were telling people about this special deal. They had done some e-blast marketing, i wasn’t on their list. So they had gone a step further, I just thought it odd that me, an unwary customer walks in expecting to pay full price, and they just cut their margins.
In a former life, I owned a retail store. Now I sell to them. I pass on to my customers+ some wise advise that a sales rep gave me many years ago.
“You train your customers how to shop in your store. Be sure you are comfortable with what you are training them to do.”
Hence…anyone who pays full price for anything at certain department stores like Kohl’s is a fool. They ALWAYS have a coupon. If I don’t have a coupon, I don’t shop there, because they have taught me that there will always be a coupon in my email or in my mailbox.
Unfortunately, we have trained an entire generation or two that retail prices are fluid; no sale, no buy. The margins are hardly enough to keep the doors open anymore for anyone not considered a “big box” store.
When all the “little guys” are gone…watch what happens. “Crazy low prices” won’t have to exist. They will rule the world.
Thanks Anthony, I love your free appetizer analogy.
Dave, I think we could probably all point to many times this has happened. It is not a random experience.
Duane, This happens so often that I often can’t remember which store it is that did it, so not much of a future incentive is it?
Donna, I would like to have you as a sales rep.