KPIs – Discount

If you are in a company where you do not grant discounts at all – bless you and skip it.

For the rest of you it might come in handy to understand discounts and howt to limit them. Again here I give only the management side of it the content on actually how to limit discounts or as we might want to say “commercial gestures” we will discuss later.

Just be aware on some implications and understand why it is suboptimal to offer them:

  1. You downgrade the brand
    – Most desirable products never are discounted
  2. You loose trust you built in your customer’s mind
    – The product your customer is about to purchase appears less luxurious and less exceptional
  3. You enter a vicious spiral
    – your competition will have to offer more discount to sell
  4. Upcoming negotiations will be more difficult
    – Next time your client expects the discount you gave and normally wants more, but at least the same amount.
  5. You decrease your personal turnover
    – More difficult to reach the sales target for you and the boutique

Be aware: You do not give discount on your turnover but you give it directly on your profit.

Here again please understand this part as only being a help for the management side of daily boutique life – I will on re-focus on all the KPIs at a later stage

Stock Management

  • ensure an efficient selection of limited editions, hot pieces and novelties

Team Management:

  • Target follow up and communication:
    Previous day rate announced in the briefing
    Monthly results and next month’s target target announced in monthly meetings
  • One to One:
    Review individual rate
    Identify improvement points and individual action plan building
  • Training:
    Be aware of global prices
    Attitude: keep calm, positive and positive minded
    Argumentation:
    – Never say no
    – Understand why the client is asking
    – Reinforce the value, exclusivity, rarity of the watch
    – Try to propose a gift instead of a discount
    – Ask a Manager
  • Coaching:
    On discount argumentation
  • Roleplays:
    On discount argumentation
  • Challenge:
    Organise a contest / incentive in the boutique

Benchmark

  • Mystery shop your competition (try to get discount) to learn about best and worst practices

 

 

Enjoy and happy sales!

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