BY JAMES DION
BY THIS CHRISTMAS almost 75 per cent of
Canadian adults will own a smart phone.
As the holidays approach, they’ll be arming
these devices with the latest shopping
apps, like Red Laser, to ensure they get the
best price possible on their seasonal pur-
chases. Any product with a UPC code can
be scanned by these programs, which then
instantly compares your price for an item
to other retailers – brick and mortar and
online. As such, most of your inventory will
likely be exposed to comparison shopping.
What should you do? First, remember,
it’s basic human nature to not want to feel
like you’ve been taken advantage of by paying a higher price than others for the same
item. Secondly, use shopping apps to identify the prices of products you carry. Check
the shipping charges to see how much
higher your price is than the ‘landed’ price
James Dion has a bachelors and masters degree
in psychology from the Chicago State University
and a Ph.D. in industrial psychology from the Illinois
Institute of Technology. Coupled with 30 years
of hands-on retail experience, he’s one of the most
sought after retail consultants internationally.
He’s also the author of three books including Retail
Selling Ain’t Brain Surgery, It’s Twice As Hard.
of a purchase made online. If the difference
is more than 10 per cent, it should be relatively easy to convince the customer to buy
the item from you. Explain all these reasons
to your customers. 1. They’ll leave the store
with the product and won’t have to worry
about it being out of stock online. 2. If the
recipient wants to exchange or return the
purchase, your slightly higher price includes a no-hassle return policy. 3. Your
associates are available to answer any questions or concerns and can help them find
additional items that will make the gift
even more special.
When you encounter a customer using
their smart phone to price check an item,
approach them and say, “I can’t help but
notice that you’re scanning that product.
That’s a smart thing to do! We regularly
check our prices against online sellers and
while we find that some are lower, some are
also higher.” Then go on to explain the
three reasons why buying from your store
If the customer points out a product
that’s priced higher than 10 per cent, you
may need to decide to either stop carrying
the item or reduce your price to within 10
Consider placing a sign in the store
which reads: “We encourage you to compare prices!” Then, list the reasons why
buying from your store makes sense.
Will you be showroomed
How to deal with shoppers armed
with price-comparison apps