Beauty Store Business

AUG 2013

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for showroomers. Cultivate a reputation for reasonable prices and showroomers will be less aggressive. "People often showroom because a retailer has done a bad job establishing pricing credibility," says Josh Pollack, executive consultant at The Parker Avery Group (parkeravery.com) in Atlanta. "The consumer is not necessarily looking for the lowest price—just a reasonable one." He suggests getting ahead of the issue by maintaining a firm grip on your own knowledge of prices. What is Amazon.com asking? How about the other brick-and-mortar stores down the street? How about stores in nearby cities? "Retailers are notoriously bad for not knowing what the competitors' prices are," says Pollack. That leads to wide pricing disparities that only fuels the showrooming fire. Fair pricing, though, is not the final word in battling the showroomer. Indeed, you can go too far in the attempt to go head-to-head with the marketplace. Some retailers, for example, have experimented with promises to match any competitor's price. That can be too costly. "Price matching is a recipe for disaster," says Dion. "You have to be competitive but you cannot beat an online retailer that has no brick-and-mortar store and no associates to pay." Exact price parity is not important, but being in the ballpark is, says Pollack. "If I am looking at a $100 purchase and you are asking a $2 premium over an Internet provider, there is all likelihood I will buy from you to avoid the risk of something happening in handling or delivery." Proximity pricing is most important for generic items; less so for items that are not easily compared. Tip #2: Engage With Showroomers Now let's answer the question that opened this article: What do you do when you see Andy pull out a smartphone and start tapping keys? Proceed with caution: Andy might not even be a showroomer. "You don't know whether a person with FANTASIA ® Argan Oil Exotic Argan Oil Treatments for Straight or Curly Hair Curly or Straight Fantasia Industries Corporation 620 Valley Health Plaza, Suite A • Paramus, NJ 07652 fantasiahaircare.com • © 2013 Made in USA 44 August 2013 | beautystorebusiness.com a smartphone is searching a competitor's website or searching your own, which happens quite a bit," says Pollack. The best response to Andy is to initiate a productive engagement, exhibiting the same positive mental attitude and skilled salesmanship you employ with your best customers. Here are three possibilities. First, try a general approach that opens a conversation: "Good afternoon. Is there information I can offer you? Let me tell you what we carry and why we carry it.'" Second, try an approach that emphasizes some service that the customer cannot get from a Web merchant: "I noticed that you are looking on the Web for information. That's cool. I do that myself. You may find that [the item] appears to be a couple bucks cheaper elsewhere. It really isn't because [explain what you offer that the Web offer does not]." Finally try an approach that tells showroomers what they are doing is smart and that you are on their side: "Hey, I see you have a smartphone. I use one too. If you want to do a price-match, let me know. I am right here." Such responses can communicate your commitment to price parity. Your endorsement of showrooming testifies to your belief in your store as the best place to shop. "It's smart to promote that you welcome showrooming," says Patrick C. Fitzpatrick, president of Atlanta Retail Consulting (atlantaretailconsulting.com) in Alpharetta, Georgia. "Don't try to hide the practice. Put it out on the table. Let people know how much you want their business." Done well, this engagement can make showroomers your friends and customers. In the best of cases, showroomers will become your advocates online. Prepare for profit Approaching smartphone users with the right attitude can work well. But you must make sure of two things. First, you and your associates must have a firm grasp of pricing Your hair... your way!

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