Never thought I was going to weigh in on this, but, for some reason, reading it all, I had too.
Grew up in a family business, and even ran it for almost 08 years. Managed to keep a Gross Operating Profit (GOP) of around 30% averaged over 05 year spans. This means, the actual markup we needed was about 45-50% depending on outside costs beyond budgeting control. For non business owners, keeping expenses around the 15-20% mark is HARD. None of this factors upgrades, repairs, expansion, etc. It only is the actual operating costs of keeping the doors open.
Which leads me to my biggest point. Being Canadian, we get ripped off from any online store in the United States. Usually, shipping charges, currency conversion, border charges, and other levies. Even though Canadians as a general population are buying more online then Americans, online retailers still try to screw them with these charges. Hence why Ebay is not selling near as much in Canada as it could.
Now, if only B&M stores would clue into this massive advantage they have in Canada. I walk through the door, you have me. You have the captive audience. All you have to do is give the customer service. Sadly, most destroy any chance they have of a sale right here. Study after study has found that if companies lose the salesman attitude and engage a hotel like customer service stance, they will profit. Hotels are quickly engaging this, eliminating up selling, revenue incentives etc, and empowering employees by rewarding them when their customer base notes and reports the amazing service. Some hotel chains saw revenues jump as high as 30% once they rolled out the full corporate wide platform and company mentality.
So, what is my point?? Sometimes you don't have to give a massive discount in terms of a financial number. If a person believes deep down they are getting a great product with great service at a decent price, they will buy. Everyone needs to lose this salesmen mentality. I just recently started getting ready for my purchase. Two local retailers made me feel like garbage because I was only looking to purchase two fronts which were under a thousand dollars. After this, I emailed another store about their product I was looking into, I explained what I was looking for, and explained what happened at the other stores I had been to, that I felt like I was wasting their time and I was just not confident to make the purchase. (Sidenote>>>If I found same product online at 50% of the cost, I might have just jumped and bought it, even though I was not sure it was what I was looking for, all because of two horrible store front experience))Someone from the store called me, told me to come in. I had just finished work, arrived, and he spent the next two hours explained all the speakers. I told him what I listen to, and what I would use them for..... this guy explained everything, and another guy helped him! I saw teamwork here. They knew what store I had come from, and told me straight that the other store was cheaper. I bought the speakers from the more expensive store no discount. I am going back this weekend to get the matching centre. I called the man who helped me buy the two speakers..... Got the hours he would be working, and l will be buying again. He has told me straight, he thinks he can get a better price for me on this centre speaker.
to conclude, even if I don't get a better deal, this man has given me great service. I felt the value of my purchase. When I have a problem, I have a great assurance it will be taken care of. Hell, I had the dumbest of question I needed answered, they helped me WITHOUT knowing that I had been a customer. Smaller businesses need to see customer service can make or break your business, not profits, not advertising, not foot traffic stats, how much product you can push!!! Without a customer, all the other bills etc are a moot point. Consumers need to get their heads out of their arses and start demanding more of this. Great stores, who carry great product lines only make products better, and in the end, the consumer better off.
PS>>> It's 5am, mind the horrid spelling and grammar. Also, the store I ended up buying from during the initial call to me, answered all my questions, and made me feel welcoming to their store. That whole section of my post could have been 200 lines long. I was just trying to show how their strive to reassure me and get me to give them a chance to fix their competitions mistakes.
Cheers
