A few days ago, The New York Times ran an article, Sometimes, We Want Prices to Fool Us, on the J.C.Penney misstep. They came to the same conclusion that I foresaw 10 months ago, but that’s not what I want to talk about today.
There’s a very basic retail truth at play in the Penney predicament, one that is especially pertinent to our resale industry here, and I quote the Times article:
How much do you think this WAS?
“they do not have a good sense of how much an item should be worth to them and need cues to figure that out.”
How can consignment, resale, and thrift shopkeepers use this truth to help their shoppers shop, and their shops prosper?
I think there’s a simple, simple, “5-Minute Fix” that works well on so many of the goods you have. A simple comparison, on the price tag, will explain to your customer why that gently-used whatever is worth the price you’re asking… and tell them that indeed, yes, even a $200 or $999 item is a screamin’ DEAL.
So go ahead. Add the words “This was $869 new” to the price tag on that sequined gown. Clip the web page that shows the Brown Jordan patio set was originally $2750 and slide it into your plexiglass sign holder on the table. You don’t want to do this with every single piece in your store (yes, it would be too costly to research and label each!) but for those things you fear will encounter price resistance: take the five minutes. It could mean not only quicker sales, but incredible word-of-mouth. “I got this at HerStore… and I only paid $200 for a dress that was almost a THOU new!”
If you didn’t read the June 2012 post and the articles linked there about shopper psychology, here it is.
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Auntie Kate The Resale Expert 