News

Opinion: 'Just say no' to discounting

March 2, 2010

Luxury retail took a heavy hit from the recession, and many retailers responded almost reflexively with quick and deep price cuts. The jewelry segment relied heavily on this tactic, but according to a new commentary in Jewelers Circular Keystone Magazine, it's a mistake, and one that needs to be avoided at all costs.

The article cites Holly Wesche, second-generation owner of Fla.-based Wesche Jewelers, as having a strict no-discounting policy that was established by her parents. "You do it once, and the customer expects it all the time," she told the magazine.

So what to do instead, if lowering prices isn't the answer? The article says high-ticket-item retailers need to renew their focus on "clienteling," the pro-active pursuit of new business – at the proper price.

One key to maintaining sales, margins, and market share without resorting to discounting is to focus on clienteling, says industry trainer and consultant Janice Mack Talcott, owner of Janice Mack & Associates, Olympia, Wash.

Talcott notes that many retailers fail to reach out to customers on a regular basis despite ample opportunities. "Most stores think of clienteling as cold-calling," she says. "But when done right, it is very specific, targeted to cleanings several times per year, special occasions, special offers, events, and other things to get them into the store. It's all about making them feel special."