With Remembrance Day behind us, even the most ardent Christmas Sale naysayer will agree we have entered the annual holiday sales season. As we all approach Black Friday, Better than Black Friday, Cyber Monday, Boxing Day, Boxing Week, and Boxing Month sales, I was asked by a friend to write a guide of things to be aware of when “going to market.”
There are myths, misconceptions, good deals and bad deals, honest and trustworthy merchants, and others who are not so much. These are some of the things I use, I hope you find them helpful.
Truth #1 – All merchants are competing for your business which really benefits you as a consumer because this time of year really is a “buyers market.”
Truth #2 – Merchants want your money. The retail marketplace is highly competitive and achieving sales targets can make or break many sales organizations and individual careers. Most retailers work on razor-slim margins, particularly as COVID-19 fades into the background. Rising supplier costs, higher interest rates, and a slowing economy all pressure consumers to reduce expenditures and forgo many wants to focus on basic desires.
Truth #3 – Not all sales are created equal and offers may not always be as good as they seem. You need to shop carefully.
Lesson #1 – Know how to recognize “the hook.” All advertisements regardless of the media, have a “hook.” The hook is the offer or offers that grab your attention. Some merchants use standard formats, while others are very creative, just look at the flood of advertisements you hear on the radio, see on social media, television, and at the movies; all are designed to make you notice them. This is not a negative concept; they just really try to help you buy now and from them.
Lesson #2 – Be especially careful when merchants offer a “save story” based on MSRP (Manufacturer’s Suggested Retail Price). Many times, this is a legitimate price, other times it is not. Your best action is to look at price comparisons online for the same product and/or service. This has never been easier and is well worth the few minutes that it takes. Just be careful to look at where the price zone is, American goods are typically less money than Canadian prices because of the exchange rate; geographic zones can also influence prices as well.
Tip #1 – When making a large purchase, ask your salesperson if they “rock and roll” on the price or negotiate? Many stores will say they won’t; however, I have found it depends on what the item is and how slow their sales have been. Also, if something is on “clearance” or is “brand new” to their store. You have nothing to lose if you ask … they might just say “yes.”
Tip #2 – If they don’t “rock and roll,” ask if will they reduce or eliminate the cost of delivery or other things such as a bedframe for a mattress sale or offer a “BOGO” deal, buy one get on for free? Again, it never hurts to ask, especially if the salesperson knows you are deciding between their store and their competitor.
Truth #4 – Door crashers are not always great values. Door crashers are a “big hook,” and the prices are usually tremendous; however, there is usually a very limited number, and are not always items stocked by the merchant, ie. they are just brought in for the sale. Personally, as a merchant, I did not like “door crashers” because people line up, many are disappointed, and those who do purchase are only there for the deal and rarely anything else. If you are attracted by door crashers, usually they are published in advance so do some research and get there early. A better strategy might be to look at what else the merchant is offering; those deals may be much better value than the door crasher.
Tip #3 – Don’t buy your next TV at your grocery store. Often these TVs have brand names of formerly leading companies that don’t actually exist anymore. Some discount manufacturer has purchased the “brand name” and labeled it with a historic name, as with anything remember “you get what you pay for” and always read the fine print. Ask what happens if something goes wrong, can your grocery store help you with a warranty claim?
Tip #4 – When using financing … understand what the commitment is. What is the processing or administrative fee for using their financing plan? What has to be paid upfront? What is the interest rate? What happens to the interest rate if you can’t pay or miss a payment? These are all questions to have answered before signing their agreement.
Lesson #3 – How was your customer experience? How did the merchant and their staff make you feel? For a small purchase, this may not be a huge factor; however, when making large purchases this should be a major influence on where you decide to invest your money. Ask yourself, “Did they listen to me, did they treat me with dignity and respect, did they explain about delivery, returns, and customer service, did they tell me about wait times and after-sales services?”
Myth #1 – Merchants make huge profits during Black Friday and Boxing Day/Week/Month sales. It is possible; however, to be profitable merchants must balance having strong enough sales offers with sales of higher margin items to justify the high advertising and lost margin opportunities. I know of many merchants whose entire year balances on doing well during the Holiday season and the retail landscape is littered with empty stores whose principles could not make enough money to survive.
Myth #2 – Merchants are somehow disrespectful to veterans if they put up Holiday decorations before Remembrance Day. Years ago, I worked for Sears, and the Christmas Catalogue was released at the end of August and no one complained. It has only been in the past few years that people have drawn the line at Remembrance Day. As mentioned, retailers only have so many days to make their sales count and for some items that must be ordered, the lead times are two or three months. I have also asked many veterans and they said that it’s a non-issue, they fought to provide the freedom of expression. It is important to support veterans groups, to recognize the moments of silence, and how a store is decorated or what music they play should not matter.
Truth #5 – Merchants and their staff suffer unfair abuse, especially during the Holidays. Many upset people feel totally justified in screaming and yelling at retail workers, especially at younger workers. If you are upset, please ask to speak to a manager rather than verbally attacking someone who does not deserve your wrath.
Truth #6 – Giveaways, door crashers, and special events are all gimmicks. Customer Appreciation Sales, Anniversary Sales, etc., etc. are all attempts to influence you, many of them work, most are about value, and they can be fun. I don’t believe there is anything wrong with them if they are done with integrity. Ironically, sometimes they hurt merchants because they do too much, they can train shoppers to only “buy” when a sale is running.
Tip #6 – Ask about alternative values. It is not uncommon for merchants to run out of stock on some of their more popular items; good merchants will have more, perhaps, non-advertised specials, so make sure you take the time to ask your salesperson.
Tip #7 – Never buy anything from a salesperson who tells you to buy from them because they are on commission. How your salesperson is paid should never factor into your decision to make a purchase. Salespeople will earn your sales when they provide you with value and an exceptional customer service experience period.
Tip #8 – Never purchase anything from a salesperson who leaves you more confused when you leave than when you enter their store. A good salesperson will try to build a good rapport with you, will ask questions and listen to qualify your wants and needs, they will educate you on their products and services, they will use your answers and ask more questions to narrow and refine your options, they will answer your objections and ask to choose from several options, and they will stay in touch until you take delivery. A salesperson who cannot do this does not deserve your business.
Tip #9 – Only purchase from a salesperson who provides an exceptional customer service experience every time you visit, call, or shop online from a merchant. They should feel lucky that you chose to visit them, they will be helpful and listen, they will provide options, and they will work hard on your behalf, and at the end, they will thank you for your patronage and walk you to the door.
Lesson #4 – If you are going to line up for door crashers, bring some coffee, and dress warmly as you will likely be waiting outside.
Lesson #5 – Never purchase anything from a merchant who doesn’t announce the winners of the draw prizes they have. If the chance to win a draw prize is part of why you visit a certain store, follow up to see who the winners are. If a merchant doesn’t announce the winners, can you trust them?
I have been a merchant for over thirty years and my ultimate advice to you is, whomever you purchase from, whichever stores you choose to visit; go into the experience with your “eyes wide open,” use my tips and lessons, be aware of the myths, but most importantly, always look for value to you, enjoy the experience, and never lose sight of the ultimate reason for the holidays, which is to celebrate whatever you choose to celebrate.
Good luck,
Paul.