It is almost NEVER a good idea for a specialty retailer to walk a sale. That being said, allow me to elaborate… I conducted a seminar at the most recent MERA KnowledgeFest about “The Value of Acting Professionally”. In that seminar I was lucky enough that several very engaged retailers were a part of the 100 plus in the audience (8:00am on a Sunday morning no less!) and we got into the discount issue with some detail and passion. I maintain that a retailer should always seek to close every sale opportunity. Always build value into the products and services being sold in order to avoid the common tendency to make lower price the reason a consumer buys from you. Sometimes however a discount or lowering a price or matching a price and/or beating a price finds its way into the conversation. What does almost mean?
If you accept the notion that a specialty retailer’s only asset is a long term profitable relationship with the consumer, than it is important to consummate that relationship with a sale. The only time a specialty retailer should walk a sale is when the specialty retailer determines that the sale will not build a long term and profitable relationship with the consumer but rather that particular consumer will most likely wind up costing the specialty retailer time, money and aggravation. We all know this consumer. He cannot be pleased. He demonstrates his displeasure in front of other consumers. No matter what you do, it is wrong or not enough. We have all provided this consumer with a considerable discount only to realize we should have WALKED him in the first place. Indeed we should have given him $10 and encouraged him to visit and torture our competitor. The trick is to properly qualify the consumer who is bent on having a discount.
1. Will your consent to discount secure the immediate sale? (Not later today or tomorrow but right now.)
2. Will that consumer become your advocate and evangelize to all his friends about your service? (Not the discount he beat you over the head with.)
3. Will the whole transaction be profitable despite the discount?
If you can’t respond with an honest and absolute “Hell YES” to all three questions then WALK THE SALE. You know this guy will be a complete waste of time. Do not demonstrate desperation. Stay in control and focus on the next opportunity. In all other circumstances make the sale and be sure to instruct the consumer to tell all his friends about your terrific service and gently encourage him not to focus on the discount.
