This article appeared in yesterday’s Boston Globe about the interesting goings-on in stores nationwide.
Shoppers bring haggling skills to the mall
Shoppers bring haggling skills to the mall
by Lauren Shepherd, AP Business Writer
NEW YORK – If you're looking for an extra bargain before the holidays, you may only have to ask.
With holiday sales shaping up to be the lowest in years, possibly the worst since the industry began annual comparisons in 1969, retailers say they're taking consumers' demands for good deals seriously. Some are extending return policies, while others are matching competitors' prices. Many are volunteering on-the-spot discounts and even letting customers haggle prices well down from what's marked in a desperate bid to make the cash register ring.
"You'd have to be a moron not to ask for a discount," said Stephen Hoch, a retailing expert at the Wharton School at the University of Pennsylvania.
More and more consumers are doing just that, treating a trip to the mall like a visit to the used car lot.
Allen Chen, a part-time cashier at a J. Crew store in White Plains, N.Y., said shoppers with two-month-old receipts are asking for partial refunds for items now on sale. Normally, the store's policy is to refund the difference between an item's purchase price and a later sale price only if it goes on sale within seven days of the purchase.
"When I tell them it is past the seven-day policy, they tell me that they will just return it and re-buy it" at the sale price, he said, adding that his store managers are now allowing customers to do so most of the time.
Shoppers are also being far more savvy about asking retailers to match a competitor's lower price.
While shopping for Blu-ray discs at a Los Angeles Best Buy, Luis Levy used his cell phone to check the price at nearby competitors. Each disc was $10 cheaper at Circuit City or Wal-Mart. Best Buy matched the lower prices.
Diana Thang, manager of Grace Jewelers near San Francisco's Union Square, said she and her staff are bargaining more than she ever has in two-plus decades in the business. But it's not working wonders.
"They have a budget," Thang said of most customers this season. "We give a low, low price and they still can't accept it. They're looking at more than $1,000 stuff, and they want to spend $200 or $300."
With sales slow at virtually all retailers, experts say customers now have the upper hand. And even some who don't explicitly ask for a discount or price-match are pressing for better deals.
Jill duPont the owner of a small women's clothing and accessories boutique called Out of the Box in Greenwich, Conn., said she's felt some pressure to mark her prices down to be competitive with others.
"Customers aren't shy about telling us 'what a good price' they found somewhere else," she said.
Click to read the article in its entirety:
http://www.boston.com/business/articles/2008/12/22/shoppers_bring_haggling_skills_to_the_mall/?page=full
Sound out! What do you think? Are your customers asking you for better prices? How would you handle such a request in your store? Click on "Comments" and tell us what you think!
NEW YORK – If you're looking for an extra bargain before the holidays, you may only have to ask.
With holiday sales shaping up to be the lowest in years, possibly the worst since the industry began annual comparisons in 1969, retailers say they're taking consumers' demands for good deals seriously. Some are extending return policies, while others are matching competitors' prices. Many are volunteering on-the-spot discounts and even letting customers haggle prices well down from what's marked in a desperate bid to make the cash register ring.
"You'd have to be a moron not to ask for a discount," said Stephen Hoch, a retailing expert at the Wharton School at the University of Pennsylvania.
More and more consumers are doing just that, treating a trip to the mall like a visit to the used car lot.
Allen Chen, a part-time cashier at a J. Crew store in White Plains, N.Y., said shoppers with two-month-old receipts are asking for partial refunds for items now on sale. Normally, the store's policy is to refund the difference between an item's purchase price and a later sale price only if it goes on sale within seven days of the purchase.
"When I tell them it is past the seven-day policy, they tell me that they will just return it and re-buy it" at the sale price, he said, adding that his store managers are now allowing customers to do so most of the time.
Shoppers are also being far more savvy about asking retailers to match a competitor's lower price.
While shopping for Blu-ray discs at a Los Angeles Best Buy, Luis Levy used his cell phone to check the price at nearby competitors. Each disc was $10 cheaper at Circuit City or Wal-Mart. Best Buy matched the lower prices.
Diana Thang, manager of Grace Jewelers near San Francisco's Union Square, said she and her staff are bargaining more than she ever has in two-plus decades in the business. But it's not working wonders.
"They have a budget," Thang said of most customers this season. "We give a low, low price and they still can't accept it. They're looking at more than $1,000 stuff, and they want to spend $200 or $300."
With sales slow at virtually all retailers, experts say customers now have the upper hand. And even some who don't explicitly ask for a discount or price-match are pressing for better deals.
Jill duPont the owner of a small women's clothing and accessories boutique called Out of the Box in Greenwich, Conn., said she's felt some pressure to mark her prices down to be competitive with others.
"Customers aren't shy about telling us 'what a good price' they found somewhere else," she said.
Click to read the article in its entirety:
http://www.boston.com/business/articles/2008/12/22/shoppers_bring_haggling_skills_to_the_mall/?page=full
Sound out! What do you think? Are your customers asking you for better prices? How would you handle such a request in your store? Click on "Comments" and tell us what you think!
I am a small scrapbooking retailer with a unique market niche, and no, I have not been asked to discount or price match.
ReplyDeleteThat being said, I haven't been chasing holiday sales at all. This seasonal frenzy will not make or break me. Those that have come to me for gift shopping have come because I offer unique products, convenience and personalized service.
I completely agree Sandra. While I may have knocked a few $$ off some larger ticket items, there is no way I can compete with Wal-Mart's Cricut price. However...I can offer a free Cricut class to anyone who has purchased one from me!
ReplyDeleteI can't believe how some customers feel they are "owed" something special just because it's a down economy right now. All this does is make sales numbers worse!
We have trained consumers to demand the most for the least from retailers. It's unfortunate. They want the most beautiful store with the most convenient location but with thrift-store prices. I'm always amazed when I see scrapbook consumers complain when they find out retailers are buying products for HALF the retail. Many think that's gouging to sell at double wholesale - not realizing how little profit there really is (if any) in the end when all the overhead is met.
ReplyDeleteReally, we need more economics classes in schools. Consumers just don't understand that businesses are not community centers. They must make money or close.
It's funny, as a consumer I have to admit I am enjoying the offers various retailers have been sending; and I have shopped in their stores because they sent them. But it has never occurred to me to ask for a better price. If I need to save money, certainly the merchants need to make money.
ReplyDeleteLisaVB, great idea offering a free Cricut class to anyone who has purchased one from you!
Georganne
Have you guys ever thought about auctioning off your gift cards? You get the money upfront and increase in sales basket. The customer is getting a discount but without eroding your brand.
ReplyDelete