Seven Ways to Profit Despite Eroding Margins
* Sell up.Sure, consumers are coming in asking for low priced products.That's what they've seen in the ads that both you and your big box competitors are running.Before showing them anything, take the time to ask probing, leading questions to determine what the customer would really be happy with.Use leading questions like, "Would you be interested in a washer that uses less water and saves money and energy?"
* Fill the basket.Make sure your customers have everything they need to enjoy or use their new purchases. Take things a step further and ask them about completing their home theater with additional audio gear. Suggest a new disposer to every customer buying a dishwasher. Remind customers buying a washer to also think about buying a dryer.
* Use instant and other consumer rebates and extended financing programs.Although manufacturer programs are often difficult to track and reimbursement can take a while, customers are responding positively to rebates. Extended financing opportunities help customers step up to more expensive products than they may have budgeted for.In addition, most buying groups have negotiated for additional rebates and finance programs that can motivate consumers even further.