In the last several years retailers have pushed online coupon codes and printable coupon offers to get new customers. Most customers are looking for a great sale or deal so it should come as no surprise that they seek opportunities to save money before making a major purchase. Even when it comes to a $20 purchase almost everyone loves to save 20% or $5. With this in mind it would behoove local retailers to follow suit and offer unique opportunities for both loyal and new customers.
Local shops and boutiques have greatly struggled over the last few years as Amazon.com, the Apple Store and WalMart continue to grow. It seems to be the case that the rich get richer and the poor get poorer in the retail space. Rather than giving up, it would be smart for some of these small retailers to adopt a new strategy. Online coupons are usually very popular during holiday sales events that happen to follow on three day weekends. Presidents Day, Memorial Day and Labor Day are some of the popular weekends that come to mind.
Rather than waiting for these particular weekends to offer sales it might be a good idea to create a different pricing strategy. When we go into a WalMart, Target or Best Buy we do not get to ask if there is any way that we can get a product cheaper. A price is set in stone as these retailers have a point of sale computer system that has all the prices uploaded. If a price is changed the store manager will notice the next morning during their reports and they will question the issue. In fact, some companies are very strict with this as there are store policies that make certain that all price adjustments are documented.
At local retailers and boutiques customers have the opportunity to create their own price. Amazon.com has tried to do this with their auction or marketplace but it is still not the same as the customer “naming” their price. For retailers struggling in downtown or Main Street areas it might be a good decision to get to know customers and offer them lower than marked prices. Although retailers may lose out on a little bit of the gross profit it will still allow them to create a new relationship.
Unfortunately, many of the shoppers in these particular downtown areas happen to be tourists. This means that they will only visit that particular area once a year; if that. Even though this is the case it would still be wise to build that relationship as more and more shoppers are posting their thoughts online via Facebook, Twitter and now Pinterest. If a retailer does an amazing job of building a relationship and offers a quality product at an affordable price most shoppers will tell someone else. With the growth of social networking that telling someone else may go viral and change that particular business forever.
This is obviously the dream situation but do no discount it – not literally. Clearance sales and discounts catch the eye of many shoppers so offering these new prices might be just the strategy to produce a profit in 2012. While coupon codes and printable offers are a great idea there are other ways to build profits with both new and loyal customers. Allowing customers to “post” updates and talk to the business owners could also be a break through. Have you ever been able to talk to a WalMart manager? I mean, EVER?!? I think I have seen an assistant manager once in my life. I can promise you that they are definitely not willing to offer price points or communicate with customers online.
While this may take up a little bit of time it could be well worth it. Not only could you find a customer for life but you could build a lifelong relationship. This is one of the only ways that these small businesses can compete but it is a competitive advantage that the bigger companies do not have. With Presidents Day this weekend, get to know some of your customers and offer some products much lower than the marked price and see what happens.
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