Retail Observer

September 2015

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

Issue link: http://www.e-digitaleditions.com/i/558905

Contents of this Issue

Navigation

Page 37 of 67

RETAILOBSERVER.COM SEPTEMBER 2015 38 Elly Valas Retail Views I n its annual home appliance review issue, Consumer Reports also published the results of their reader survey about their experiences buying those products. The 21,000 Consumer Reports readers, who purchased 32,000 major appliances, reported that their experiences in locally-owned independent stores far exceeded the box stores. The report singled out Chicagoland family-owned dealer Abt Electronics and Appliances as the best of the best. And quite honestly, Bob Abt and his sons deserve the kudos they received. Independents scored the best possible ratings on in-store service, checkout ease, delivery, installation and haul away. They scored slightly lower on selection and product quality (I'm not sure how any dealer could fall short on this measure since they're all selling the same products). The former market leader Sears scored average in most metrics and only slightly higher in product quality, delivery and haul-away (not installation). Although they are surging in consumer electronics, when it came to appliances, Costco ranked at the bottom for selection and called out for the services they don't offer: in-store service, delivery, installation and haul-away. Lowe's, Pacific Sales, Nebraska Furniture Mart, Home Depot, Best Buy and P. C. Richard & Son were statistically almost tied with Lowe's, Home Depot and Best Buy falling a bit shorter on selection. P. C. Richard & Son and Pacific Sales ranked a bit higher on in-store service, HH Gregg ranked just above Sears but slightly behind other chains. Another interesting detail from the study was that only Costco was given the highest rank on price—beating Lowe's, Depot and the regional chains for the perceived best price. I suspect that is a result of their limited entry-price-point product selection. The article also noted that consumers who told their sales associate about a better price they'd found at a competitor usually resulted in a significant discount—an average of $102. That's not surprising since the two areas in which independents fared the worst according to consumers was in price and web support. If the only way a customer can get a fair market price is by negotiating for it, it's no wonder the public perceives independents as high-priced. In today's transparent world, it's imperative to be priced in line with your market. In my store visits, I still see too many retailers with artificially high prices on their merchandise. "Our customers expect us to give them a deal" they tell me. Most customers, though, want a fair value. No one really likes to negotiate—and most don't feel satisfied that they've received the best deal if they do have to ask for one. They leave feeling that they probably left something on the table. Today's consumer is well-armed—they have access to the same online pricing tools that you do. They know what they should pay for a product. And they don't want to haggle to get the price. If you listen closely, most prospects don't ask for a discount. They ask "is this your best price?" They are looking for confirmation. If your floor is tagged at some inflated price, you can't honestly answer "yes." You have to offer a better price. When you do, the customer thinks they have to ask for less. And so it goes. If you track your competitors and their pricing and you price your floor at market pricing you can confidently say "Yes" when a customer asks if you're giving them your best price. "We check our competitors' prices regularly and we guarantee a competitive price to all of our customers." Remind them of your buying group affiliation and the power of volume buying. Offer a 30-day price protection and quickly and efficiently issue the refunds when you do have to give them. If the customer is still unsure, pull out your smartphone or tablet and take them to either a comparison pricing site or to your competitor's site and compare pricing. And if a customer still wants a better price, show her a lower priced product. Most will end up buying the more expensive model. If all independents learn the fine art of pricing, consumers will gain confidence in the entire channel. Maybe in the next Consumer Reports survey consumers will rank independents best in pricing. INDEPENDENTS: BLUE RIBBON APPLIANCE DEALERS RO Elly Valas is the Marketing Services Director for Nationwide Marketing Group. She can be reached at elly@ellyvalas.com or at 303-316-7569. Visit her website at www.ellyvalas.com.

Articles in this issue

Links on this page

Archives of this issue

view archives of Retail Observer - September 2015