Defending Luxury Prices
“Are you giving your luxury product the importance it should have?”
Above: Bordelle Signature Collection.
by Joy Menon, founder of MerchandisingEye.com
The holiday season is typically the perfect excuse for customers to splurge and treat themselves or loved ones to something special. However, business owners and sales associates experience more challenges, especially around this time of year, trying to sell their premium products, mostly caused by frustration and poor planning.
The struggle is real and as a business, patience and sanity is tested, with lower priced product taking priority, because it’s the easier and more comfortable route. Some business owners even panic and lower prices for their luxury product, convinced that it will not sell regular price.
I highly suggest avoid falling into this trap, because it restrains a business and brand from high profit potential both short and long term.
Below are some tips on maximizing your luxury product, so that it receives the respect it deserves:
Above: Teddies for Bettys.
Are you giving your luxury product the importance it should have? If it’s tucked away in the back, it’s forgotten and seems unimportant. Assure that you have the proper layout for your store and its corresponding online presence. Also, take note of the way the pieces are being merchandised and check that they are showcased properly. Remember that not every piece looks good on a hanger and other pieces can be incorporated into the mix, complimenting the complete look.
Above: Customers at Marie Angelique.
Do not be afraid of educating your consumer on your luxury products. This will clarify their higher prices and communicate value. . The main question is ‘why?’ Why would someone want this product and what makes it so special? If you are hesitant, then don’t expect your customer to believe you. Similarly, your staff should be educated and prepared for various scenarios and questions customers may ask. Consistency is essential, so that everyone is on the same page and mixed answers are avoided. The importance of sales training is key here, as well as the right team.
3. Follow Thru
Above: Fleur of England.
Giving your customer room to haggle opens the Pandora’s box of trouble. It creates an unpleasant tug of war and really takes away from a pleasant shopping experience. In addition, the haggling diminishes the value of your product if you entertain it. Stay firm, staying true to your prices and work with your customer’s desired budget, suggesting other items that might be a better fit. Continue to develop that customer and eventually, if the item does go on sale in the future, they can be notified.
I hope the above tips are helpful and encourage you to maximize the presence of your luxury product lines and handle price resistance strategically.
Identifying missed opportunities and making adjustments to improve them can impact your business in an amazing way. Don’t be afraid to be flexible and be open to change.
What other tools have you used to help with selling your luxury products in-store and online?