Streaming Customers & Charging Accordingly
There is a post on the Beyond Cost Pus website that should be of interest to florists. It talks about how some retailers are able to maximize sales and profits using in-store merchandising tricks to effectively stream or segregate customers based on the value they place on a product (in this case DVDs), and then sell the same product at different prices based on that valuation.
How they do it is interesting but the more important part is the “why”. They key is understanding that there are different types of customers – those that are seeking out a product they value highly and are willing to pay for, and those that will be triggered into an impulse purchase by a deeply discounted (but still profitable) charm price.
How does that translate to flowers? You have different customers and different sale situations too. The customer whose wife is having her 50th birthday and calls you to order something special? That is a customer who is likely to value the quality and service that you provide, the convenience of ordering over the telephone, and they are likely to pay a higher price for that.
But what about the thousands, or tens of thousands, of commuters that stream by your store every day? They may not have a big event to celebrate, and they might have another florist they would use if they did.
But you offer them convenience - you are right on their way to/from work. Maybe they a special charm price, promoted affordably and effectively by a banner or mobile sign, would entice them to come in and make a quick impulse purchase.
The key is understanding that these are very different types of customers, that assign a very different value to your product, and targeting them appropriately.