Daniel, I certainly don’t seek out price only shoppers. But they
exist. The idea behind my post was how to end a relentless obnoxious
I spend most of my time with custom design. I do have an inventory
of nicer industry made pieces also. I have a financial obligation on
that merchandise. It needs to turn over. If it takes a reasonable
discount occasionally I have no problem with it. I can live with
’feel good’ discounts. And the customer returns for another purchase.
If one customer requires hand holding or snob appeal she gets it. If
another needs to feel she got a bargain(one that I can live with of
course) she gets it. If she needs to have something totally unique,
especially designed for her and made to a T, she gets it. The essence
as I see it, is to consumate numerous profitable transactions. Sounds
cold I know.
I would LOVE IT if ten people came in to buy at a discount. Suppose
the combined list retail was $20,000. It all sells at 25% off,
average, let’s say. That’s 50% over what I paid(or owe as the case
may be). I can’t sell a diamond of that value at anything over 15%
markup. And I’ve made ten people happy, who will go to the cocktail
parties and flash it around and mention my name. So instead of
selling one person a $2K piece at key, yielding a thousand profit,
I’ve sold ten people for a profit of $5K. To me, at this stage of my
career, bottom line is hard to argue with.
This was driven home to me when I had to run a GOB(going out of
business) sale. My building was to be torn down to build a bank. No
wonder my landlord wouldn’t renew my lease. Available retail space
was non existant at that time, no room at the inn. So I would need
cash and plenty of it to tide me over. I did a year’s volume in three
months by discounting. I’ll tell you this, the cash I had at the end
of it was much more than if I had tried to just sell down at full
price, even after clearing up my accounts payable. A sale like that
is not long term sustainable, but it taught me some lessons about
customer motivation and demeanor, the value of turnover, and that
profit is a time related concept.
Ideally one could sell their entire inventory at full price. But how
long does that take? One year, Two? Condense that time frame and it
equates to more profit per month.
This business has as many ways to make a living as there are people
in it. What’s good for one may not work for another. Anyone reading
this, please take it with a spoonfull of salt.
Gee, all I did was sit down with my coffee and morning Orchid and I
ran off at the mouth, Sorry.