J.D. Associates Retail POS Solutions Blog

No, We Don't Discount!

  

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We No Longer Discount!

Could your store survive if you were courageous enough to make this statement? It’s something to think about. In previous blogs, I’ve mentioned a number of things that you ought to be doing if you intend to be successful without relying on having the ‘lowest price’. The best way to establish a ‘no-discount’ policy is to build customer loyalty.

Customer Loyalty can mean many things, but the most important is the difference between survival and prosperity – for you. Imagine what your business would look like if you could establish a loyal base of customers that would only buy certain items from you – and on a regular basis…

Let me give you an example: I was at a local garden center type of store recently. They sell bird food, pet food – etc. I asked if they had any kind of customer loyalty program in place. The answer was “No, we don’t.”  So, why would anyone keep coming back week after week to buy pet food? The only answer is convenience or price – or perhaps they like the local staff. How about, buy 10 bags, get 1 free? Keep track of the purchases on the Point of Sale system and automatically ‘give’ the reward!

Doing this lets (you) the retailer ‘maintain margin’ and often suppliers will supplement the giveaway. You just need to ask (your vendors).

I am a golfer, and buy golf balls not at the local driving range – but at the big-box store across the street. Why? The price is the same at each store. The big-box store keeps track of points,  and rewards me with a cash certificate after so many purchases. It’d be foolish to pass this up. The small store doesn’t know me from any other customer, and has never made any attempt to ‘lock me in’ and keep me coming back.  They should.  But they haven’t.

Retail is all about the customer. The retailer (you) need to take the time to know who your customers are and you need to come up with ways to keep them coming back. Reward the good ones – not the ‘bottom feeders’ who only come in for sales. Get creative. Use your Point of Sale system to track and reward your best customers. Retail POS software can ‘earn its keep’ by doing so – providing the means to a steady stream of loyal customers. Make a resolution for 2011 – no more discounts!

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If you're researching POS software, here's a handy way to organize that research so you can ask the same question of every vendor you speak with. POS Checklist.

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