People are often looking for a deal. So, retail employees have to be on their toes at all times, or they may find themselves giving away discounts that will cost them money in the long run.
In retail, there are 3 types of customers who want to receive a discount: those who need it, those who deserve it and those who can afford it. Here’s how retail employees could handle each type of customer to make sure they make more profit!
Customers who need it: People who truly don’t qualify for a retail discount should be treated with respect. This is because the retail representative knows more about retail pricing than they do, and therefore can make better decisions on their behalf. Employees who give discounts to people who don’t need them are literally throwing away money!
Customers who deserve it: Customers that truly deserve a discount but cannot qualify for retail perks should be given retail gift cards. They can use the gift card in stores where it is accepted, and they will receive a percentage off on their purchase that day.
Customers who can afford it: Customers that truly cannot qualify for retail discounts but still try to get one should not be accommodated with special deals or discounts of any kind. They may be upset, but retail employees should try to explain the situation as best they can without giving them a discount on their purchase. Retail workers must know retail price points well enough that even if customers aren’t happy with being denied a discount, they will not purchase an item for less than retail value elsewhere.
It is vital that every retail business has a plan for dealing with customers who ask for a discount. Make sure everyone working in the business knows the plan and is skilled in following the plan. This is vital in resolving any discount request in a way that serves the business and respects the customers.
* This blog post is brought to you by the team at www.towersystems.com.au where local small business retailers can find POS software that helps them run more enjoyable, profitable and valuable businesses.