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Plain Talk
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Has the Retail Industry Changed That Much?
by Rick Segel I recently received criticism from a reader stating that although my material is helpful, it is old fashioned. I didn't take that criticism lightly and had to do some soul searching to look at my career and its current state. I’m reaching 40 years in the retail industry. I certainly wouldn’t be considered a rookie; I study retailing now more than I ever have before. I mystery shop now more than ever, I shop online now more than ever, I collect and review stories about shopping experiences and retailers’ nightmares now more than ever, and I evaluate retail stores for awards programs now more than ever. After analyzing my presentations, my work, and the current state of the retail industry, I can honestly and sincerely say that retailing at its foundation is constant and will not change.
Where Retailing is Constant Here’s the truth. Retailing is still about selling customers the maximum amount of merchandise at the highest possible price. The person who sells the most items doesn’t necessarily win, it’s the person who sells the most at the highest price who wins. This is why decreasing prices alone won’t cut it. Modern retailing must push beyond price reductions and work towards an improved customer experience.
How to Sell More Products at the Highest Price On a recent visit, I went in to pick up parts I needed for making pens (a hobby of mine). I stood in the aisle going back and forth on which parts to purchase. It was obvious I needed assistance. The store manager approached me and offered to help. I asked him questions about which parts I needed, and he replied stating that their pen specialist (who teaches pen-making workshops) happened to be in the store that day. The manager brought the specialist to me, and we hit it off immediately. We had a long conversation about pen making, and he showed me what I needed to buy. It was as if we became good friends. And then he said something to me that a $10 Kohl’s coupon could have never communicated: “After you make your pens, please bring them in so I can evaluate your work and help you improve your craft.” After such an offer, you know I’m coming back to the store. He requested my email address, and I told him I was already on the email list. “No,” he said. “I want your personal email address so I can check on you and keep you posted on our upcoming workshops.” A couple days later, I received an email from him thanking me for coming into the store, informing me of the next workshop, and reminding me to come back so he could evaluate my pens. I spent $185 on the initial visit, and when I went back, I spent another $113. And you know what? All of the supplies I bought are now gone, which means I will be going back to the same store to purchase more products.
The Product’s Price Should Remain Secondary That’s how Woodcraft turned me into a repeat or loyal customer. I was willing to make large purchases because I knew I would get the product and service I needed. If saying that the retail industry is much more than price reductions, then call me old fashioned. I will never succumb to a price game. Retailing is still about having a customer buy multiple items and coming back again and again, despite the competition we have today.
Rick Segel can be reached at:
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