Shift focus to product benefits.
Status Plus director, Ashley Balderson is fully aware of the challenging conditions facing retail with declining average sell prices (ASPs), but he has a clear message to retailers blaming their suppliers – you are your own worst enemy.
“Each and every dollar suppliers give to retailers is transferred straight to the showroom floor by businesses far too eager to sell on price rather than product benefits,” he told Appliance Retailer.
“At Status Plus, we know the value of the products we sell and our clients are educated as to why they need brand X or brand Y based on the particular feature that resonates with them. It’s about listening and most importantly focusing on after sales care and giving a client something that they least expect enhances the experience.
“This removes price from the equation. Last but not least, consumers are over the “wham, bam, thank you ma’am” transaction where they have bought a product purely on price that often doesn’t go the distance – whether that’s online or through bricks-and-mortar.
“The result is the same, they want to have something that lasts and are over dealing with indifferent retailers that simply don’t care that the product they sold has failed,” he said.
So his advice to fellow retailers? Get real, lose the minus button on your calculator, support your suppliers and stop blaming them for your own inability to hold price point in the marketplace.
“You must focus on being better at selling the features and benefits of products you sell – train hard and care more. Find the sales people in your business that are giving away your margin and address them.
“Be honest and always do the right thing no matter how much it costs you. Reputation is everything as is your word. Never break it and suppliers will always have your back.”