WAY 111

How Much Does It Cost?

Customers want to know what they're getting into before making a purchase. So give them all the pricing information they need to make a decision. Items without prices may appear valueless to your customers and many people are too timid or feel they will be obligated to buy if they ask for a price.

ACTION ITEM

Do a daily sweep of your facility to make sure everything has a price so customers won't see your products as valueless.

One retailer who had a 300-piece tool display noticed that customers spun the rack, picked items up and looked them over, but then put them back and walked out the door. He suspected the problem was that there weren't prices on the items, and that people were too timid, too busy, or just not interested enough to ask. So he tried an experiment. He put price tags on all 300 items. Instantly, sales increased by 40 percent. Could simply having prices on his merchandise really increase sales that much?

There was only one way to find out. The retailer went back and carefully removed all 300 price stickers and tracked sales for the next sixty days. Amazingly, sales went right back to their previous level. He proved that everything has to be priced, or customers will see it as valueless and simply walk away.

TAKEAWAY

Customers will not ask for a price because they
expect it to be there. If it's not, you are violating
their expectations, and they'll probably take a hike
.