Discounting to Customers

Much of our retail inventory has a set retail price and then a minimum price that a particular item can be sold for. The reason for minimum prices is so there is room to negotiate with a customer when needed. When a customer asks how much something is then the salesperson should ALWAYS quote the retail price on the tag and NEVER the minimum. A preowned watch or vintage designer piece will have the suggested retail price on the tag so you should quote enough above the minimum to give yourself room. Don’t get into any discounting until and unless the customer actually requests a better price.

Imagine if a customer asks how much something is and you immediately tell them the minimum price and then you find out they have a coupon or that they want even more off than that. You will be forced to go under minimum to make the deal. Not only will you make less money if you constantly put yourself in that situation, but you will train your customers to assume that they can get a better price than what’s on the tag. It can also be a problem if the next thing they want is Hearts On Fire, where the price on the tag IS the price we sell for.

Not every customer asks for or insists on getting a discount on the tag price. Don’t assume they want a discount and offer it when they haven’t asked for it. Save the discount to use as a tool to close and only if you must. Immediately giving a discount also uses up that tool so it can no longer be used to close if needed. And many sales can be closed with good sales techniques alone and giving no discount at all.

Another thing that should never be done is to announce to the customer, “I’m the Discount Queen,” or “I can give you a better deal than anyone else here.” I know these seem like harmless statements but there really is no benefit to doing this. It can actually be quite harmful. You are letting the customer know right off the bat that they can get a better price than whatever it is you tell them today and in the future. Also, you are making it look like you need no approval to discount and you are the only one that can help them. The next time your customer comes in they will only want to deal with you since you have established that you are the best “deal maker” in the store. What if you are busy and you cannot help them? Maybe they’ll wait for you for a bit but then realize you are taking too long and leave. Now you’ve missed a possible split sale because the customer refused to be helped by anyone else.

You should always “play the game” if a customer is pushing for a better price and go in the back and pretend you are discussing with some unseen person that will approve or disapprove of their offer. This is to your benefit because now you are on the customer’s side working for them to try and get the “tyrant” in the back office to give them a better deal. If you let them think that you need no approval to give them a discount they will be angry with YOU if you ever can’t or won’t give them the discount that they are asking for. Better for them to be mad at the invisible “tyrant” in the back office than you.

We want our customers to walk out of here knowing they got a fair and reasonable price on a quality watch or piece of jewelry. Let’s make sure to put our own issues or personal shopping preferences aside and not assume that every customer is a bargain hunter or must get a discount or else they won’t buy. It might not be the case.