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Auntie Kate The Resale Expert

Kate Holmes of TGtbT.com talks with consignment, resale & thrift shopkeepers about opening, running, & making their shop THRIVE!

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Even Wal-Mart gets it.

April 7, 2009 by Auntie Kate of Too Good to be Threw

You know I preach Add Value don’t Reduce Price. Whether 2009ap7easterbsktwalmartyou’re a consignment, a buy-ouright, or a donations thrift shop, constantly telling folks you’re cheapest…or you are for today at least with a 20% off everything! sale…simply leads to a “I’ll wait until they mark it down” mentality in your clientele. And when that price reduction effectively erodes your entire profit margin (and then some, in many cases), it’s unsustainable.

You don’t want people to come to your shop to spend less. You want to show them that when they shop with you, they can get more. Hence my suggestions that you show samplings of your merchandise under a headline or subject line such as See what $25 looks like at MyShop.

Well, looks like recently even the “Low Price Leader” Wal-Mart is thinking the way I am. Have you seen their Easter commercial? First the camera glides across what the voice-over calls “a perfectly acceptable Easter basket” of goodies with a giant $10 price tag. Then the announcer says “But look what $10 gets you at Wal-Mart” and the camera lovingly salutes a bigger, fuller…but essentially the same…basket of treats.

Wal-Mart doesn’t say, Hey, spend less, here’s the same basket for only $6.88, do they? They’re saying Get more value.

In the same way, your photo or window display of a tabletop of lamp, vase, silk flowers, and coasters (and maybe even the side table!)  vs. a lamp all by itself, with identical price tags, says Great More Value.

After all, you don’t want people to spend less. You want the opportunity to offer them more value. When your audience thinks of your shop, you don’t want them to think Cheap. You want them to think What a Deal!

And now, even Wal-Mart sees the light.

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Posted in Shopkeeping talk | Tagged merchandising, perceived value | 2 Comments

2 Responses

  1. on April 8, 2012 at 12:50 pm Nancy Klein's avatar Nancy Klein

    My sales have gone up since I’ve been accepting only higher end brands and marking the price UP. My software doesn’t let me mark the original retail price, but I do it by hand on the tag. I recently had a customer come in and buy $1,200 of St. John’s clothing that were marked at about 1/3 of original price. She didn’t bat an eyelash; she said she will buy one piece of St. Johns at Nordstrom when she can afford it, and thanked me for allowing her to buy 3x what she usually can get. She sent two of her friends over who purchased, too, and promised to come back often.


  2. on April 8, 2012 at 9:21 am Debbie McDaniel's avatar Debbie McDaniel

    We try to put the original retail price on many higher end label items so customers can see what their savings are. We use Liberty and it offers that option. An item priced at $98. that originally retailed for $498. is a deal!



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