Try to stay away from percentage-based discounts as it is more difficult for consumers to calculate. For example, this is seen more readily in the restaurant industry where tip percentages are now being pre-calculated. This is because the average consumer cannot easily do this math. Therefore, do it for them and offer a monetary discount instead of percentages.
For higher ticket items, do not be afraid to use digital signage such as digital photo frames or manufacturer displays that incorporate video screens. This is a growing trend that will continue to be seen more and more in every retail environment, so be ahead of it.
As a rule, stay away from anything handwritten with a marker or pen. Take the time to type the items and print them. Make sure the signage not only states the price, but also builds value in the product. Further, show the manufacturer’s suggested retail price (MSRP), regular price, as well as the new price so the customer can visualize how much they will save. Never discount the power value has; it is one of the main motivators when someone makes a purchasing decision.
Finally, when entering the store each day, walk through and look at things like a customer would for the first time. By implementing a few of the strategies presented in this article, retailers can increase the success of their businesses.
Ted Lawrence is a global retail specialist with Pool Corp., a wholesale distributor of swimming pool supplies, equipment, and related leisure products in Cleveland, Ohio. He has served the swimming pool industry for more than 20 years and is an authority on retail, sales, and management. Lawrence is also a regular seminar presenter at various national and international industry events, and participates on several professional retail boards and councils. He can be reached via e-mail at ted.lawrence@poolcorp.com.
