Thinking Outside The Retail Box
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Hi, I’m Andy Bernstein, president and founder of FurnitureDealer.net, an Internet services company that builds and manages websites for brick and mortar furniture retailers across the country. I grew up in the furniture industry and have spent my entire career working in and around retailing and technology. We launched our first web2store site in 2003 for a retailer in Minnesota. It quickly became one of the most visited furniture websites and had a major impact on our client’s business - attracting 100,000 visitors per month and generating 150 customer inquiries a day. I have personally assisted thousands of online furniture customers, trained hundreds of furniture salespeople, and develop dozens of technology applications. FurnitureDealer.net offers cost effective website solutions, digital content services, online marketing and consulting. (Solutions that sell dressers and mirrors, not smoke and mirrors) If you would like to “think outside the retail box” together, please contact me at FTblog@FurnitureDealer.net or 651-204-1925. |
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The costs (and benefits) of showing prices on your website
There are right ways and wrong ways to display prices. Every customer wants and needs to know price, and there is certainly great benefit to displaying this information online. If and when your company decides to show prices on its website, here are five ideas on how to do it best:
1. MAKE ACCESS TO PRICES A MEMBERSHIP BENEFIT
Rather than simply posting prices on the pages of your website for anyone to see, why not try making it a website subscriber benefit? In this model, visitors who register and provide valid email and local phone numbers will gain access to prices online. Visitors who choose not to share this information can still call for quotes or you may be able to show a higher price to the public and a preferred customer discount price for those who register and sign in. I realize that this is inconvenient, but it enables your company to control this information. Most retailers will even be able to explain this policy as being partly a result of supplier restrictions.
2. PREVENT PRINTING & EMAILING
Try to display price information in ways that will make it difficult for someone to print it, email it or save it for your competition. I recommend displaying prices in a separate pop-up window. (use a button that says “click here for price”) If you don’t display item information (brand, collection, item number, etc) at the same time as price, it will be more difficult for people to use this information against you.
3. AVOID USING BRAND NAMES
When possible, avoid using information that will make your products easily identifiable, such as manufacturer brand names, item numbers, and manufacturer provided photography. These things can and will make it easy for people to compare your items and get lower prices. I would treat special order merchandise differently than on-display/stocking products. Anything your store has on display can be photographed by you and can be listed with company specific SKU numbers.
4. AVOID EMAILING PRICE QUOTES
Do not quote prices by email. It's far too easy to forward that email to a competitor or to not put an expiration date on it. You don't want to make it too easy for this information to be used against you.
5. USE CREATIVE PROMOTIONS
Try to use promotions other than low prices. Develop pricing models that reward increasing order size, repeat purchasing, payment by cash, and referrals. Sell the room or offer discounts that include free accent items rather than dollars off. Look for win/win promotional opportunities with your customers rather than just giving away margin on item purchases. Be up front with your customers so they understand how they can achieve greater savings by behaving profitably for you. I like the idea of loyalty programs that reward profitable behavior. Tie it in to a “decorating profile” so that customers who share their furnishing and decorating needs and preferences with you, will receive a better promotion than the general public. I like the idea of giving away gift certificates (toward future purchases) rather than just taking money off. Be creative. I would love to hear about any of your successful “outside the box” marketing promotions, and/or would love to brainstorm this with you.
6. SEGMENT CUSTOMER OPPORTUNITIES BY PROFIT POTENTIAL
Don’t be afraid to walk away from unprofitable business. If someone is looking for the rock bottom lowest price on a specific item, you need to determine if the business is worth your time. Can you beat the price if you get an add on sale or cash sale or a referral of additional business from a friend.
7. COMMUNICATE THE NON PRICE BENEFITS OF YOUR SERVICES
Use your website to communicate that yes, you offer “guaranteed lowest prices in the area” but emphasize the benefit of having it in stock and being able to get free decorating assistance. Emphasize that your company stands behind what you sell and that you have a reputation and service to back up your claims. Show prices for in-stock merchandise and product that you distribute exclusively in your market, but “call for quote” “guaranteed lowest prices in our area” for special order products.
8. CHECK THE INTERNET FOR PRODUCT PRICES
Be sure to search online for the products you want to show prices for. If your prices are high, you need to understand that prospective customers will see this too and will judge your company accordingly as “overpriced.” I recommend regularly checking online for pricing for identifiable products to make sure you are not sending negative signals into the market. Remember, the internet is all about access to information – and your customers and competitors will use it against you if they can.
