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  • Professor Dave on Clearance Pricing (and more)

    Dusting off my Customer Etiquette Professor cap for a bit.


    How Clearance Pricing Works

    Ok. You are interested in a clearance phone set, which for whatever reason does not have the original price listed. You ask me what the original price was so you can gauge how good a deal it is. Not unreasonable, so I tell you that it was originally $99.99. The clearance price is $79.90. Not a bad deal for a 3 handset, 5.8GHz phone set with digital answering system.

    However, it is wholly inappropriate for you to tell me that the clearance price is somehow wrong. It's even worse for you to try to lecture me on how clearance pricing works. I'M the Professor!! YOU are the plebe! Watch your place!

    As I understand your delusional idea of clearance, you believe that "clearance" means "50% off or more" and that if it's not at least 50% off, we aren't doing it right.

    Wrong. Your grade is F!!! F!!! YOU FAIL!!!!

    As I told you then, "Clearance doesn't work like that at any store that I know of."

    Here's the "secret" about clearance that you don't know: clearance is simply a word. It means little more than a given item is no longer being actively carried by the store, and the remaining stock has been marked down. How much it's marked down is up to us not you. We could mark it down by $0.01USD if we wanted to, and it's still be clearance. There is no requirement, standard, or law that says it MUST be 50%, especially since that would be below our cost for most items. The item in question here has been marked down 20%, which is quite a respectable markdown.

    Now, if you feel that 20% isn't a sufficient markdown for this item, fine. That's your opinion and I respect that. By all means don't buy it. Someone else will. However, it's is only your opinion, not a fact, and it certainly doesn't mean that we have made a mistake on the price.

    Oh, by the way, someone happily paid $79.90 for that set shortly after you left.


    Selling Culture 101

    Take a look around. We are inside a Big Box Retailer. This isn't an open-air bazaar, a flea market, a garage sale, OR a swap meet. Therefore, the employees can NOT haggle.

    It is important to understand that when dealing with retailers, pricing is often outside the control of the employees; it's set by the home office, and the managers have little if any leeway to offer discounts. To ask that we accept something lower than the marked price for an item is not only completely futile, but it's actually considered rude, and will make both the hourly associates and the managers irritable and less willing to help you.

    And you do not even have the excuse of coming from a culture where haggling is a normal and expected part of business! You're a white American woman, so I do not understand why you aren't aware of this already. The fact that you asked me if I'd accept an offer of $80 for a desk that originally retailed for $149.99, and had been marked down to $127.49 because we were selling the display model (which, by the way, is 15%, and is already more than we are usually allowed to mark down a display), was simply shocking.

    Now, on to the next lesson. When you hear something you don't like, it does not mean I'm being rude, unhelpful, or otherwise not doing my job. That sort of attitude is usually reserved for toddlers going through the Terrible Twos. Most civilized cultures frown upon that sort of behavior in adults such as yourself. Moreover, you should have listened to me when I told you in no uncertain terms that having me "check with the manager" would be a waste of time because the answer would still be no. This would have saved you, me, and the MOD a lot of frustration, and you would not have had to huff angrily when - just like I said would happen - the manager rejected your offer of $80 for that desk.

    Please take these lessons to heart and it will make your shopping experience better. Not only for you, but for the employees as well.


    How Not to Impress Us

    Contrary to your view, we are not going to start kissing your ass feet just because you have decided to bless us with your hard earned money on a clearance laptop. This is because the margins are so thin on computers that even at full price we barely make any money, and at a clearance price, we lose money. So just buying it doesn't do us any favors. Now, if you were buying a service plan, some tech services, some software, or at least SOME accessory item with it, then maybe we'd be inclined to offer you some sort of deal. But certainly not when you are making us lose money already. So we are NOT going to cave in to your ridiculous demands that we give you a free carrying case, or a free printer, or take additional money off the laptop.

    Also, I do not work on commission, so taking a haughty attitude and attempting to hold the sale over my head to get a better deal or free stuff isn't going to work either, because I get paid whether you buy it or not. Again, simply buying something gives you no leverage. You need to buy something that makes us money before we bend. As the saying goes, it takes money to make money.

    And as in you may recall from the previous lesson, asking a manager and getting huffy does nothing to help your cause. In fact, it makes your position worse.

    Class dismissed.
    "We guard the souls in heaven; we don't horse-trade them!" Samandrial in Supernatural

    RIP Plaidman.

  • #2
    When you hear something you don't like, it does not mean I'm being rude, unhelpful, or otherwise not doing my job.
    I just had to see that again. And perhaps print it on a t-shirt.

    Comment


    • #3
      If we're going for the t-shirt, then let's go for teh whole thing-

      Quoth Dave1982 View Post
      Now, on to the next lesson. When you hear something you don't like, it does not mean I'm being rude, unhelpful, or otherwise not doing my job. That sort of attitude is usually reserved for toddlers going through the Terrible Twos. Most civilized cultures frown upon that sort of behavior in adults such as yourself.

      Comment


      • #4
        UGH! Frick Clearance. We no longer have sales, its more clearance or full price. Some things gets marked 75% off, and if no one buys it at the end of the season, my boss will mark it at 50% off THAT price, which means tables and chairs at somewhat around 30-50 bucks from the original $120 or more. They STILL want to haggle. "Its scratched." Yes thats why its marked half of- "NO I DON'T WANT MY GUESTS SEEING THIS. THIS IS RIDICULOUS!" Oh. Okay, Salv-Army is two blocks down have a nice day.

        Comment


        • #5
          I am not surprised people want to haggle. People think that since car dealerships and some furnature stores allow people go haggle, every place does?
          When it comes to getting things done, we need fewer architects and more bricklayers. ---Colleen C. Barrett---

          Comment


          • #6
            Excellent post! Now, if only the SC's would actually listen...

            Comment


            • #7
              I get hagglers each and every day. They email or call for a price quote on their order.
              I then send it to them in an email, with all of the features and aspects broken down in plain black and white, stating what the cost of the job would be.
              Then they say it's too much and want to haggle the cost down.
              I explain to them that the only way to cut cost would be to lower your quantity and/or remove certain features and extras.
              This is, of course, unacceptable and they continue to haggle.

              Repeat the process at least another 2 or 3 times, until they relent... only to call back later in hopes of getting someone else (there are only three of us and we all work in the same room, so we all know what was said to a customer) and trying their luck again.
              "It's not easy being evil in a world that's gone to Hell" ~ Anton LaVey

              Comment


              • #8
                Quoth Dave1982 View Post
                But certainly not when you are making us lose money already.
                Sorry if I seem a little dense, but if corp is setting the prices for clearance then how is it the CUSTOMER who is making you lose money?

                I would have thought you would have been glad to get rid of something on clearance to make way for a new laptop that was at full price... something you cant do until the clearance stuff is sold?

                I am not excusing the whole give me something for doing you a favour attitude the customer seems to have. But on the same token.... I dont see how your reasoning works on the losing money bit...

                the customer isnt forcing you to sell for that price, its a company choice to sell lower to get rid of it, so how are they making you lose money?
                I wasnt put on this earth to make you feel like a man ~ Mary Bertone

                Comment


                • #9
                  I admit to "haggling" a little bit. Not usually if the customer asks for it though.

                  It usually happens if I have a crapload of a certain item, or it's something that no one else would ever want to buy and is just taking up space.

                  We have dozens of these stupid cheesey $10 porcelean dolls. If someone shows the slightest interest in them, I immediately tell them that I'll sell them 2 for $15. Usually works, and they're slowly going the hell away.

                  However, if someone complains about the price, I just tell them that prices are set by corporate, and we have no control at store level.

                  Comment


                  • #10
                    I don't think the customer is making them lose money. but regardless if its still there long enough to go on clearance, they are now selling it at below cost. why would they throw in free stuff and lose more money.

                    Comment


                    • #11
                      Quoth Dave1982 View Post

                      Most civilized cultures frown upon that sort of behavior in adults such as yourself.
                      I would venture to say that most primitive tribal cultures would also frown upon adults having temper tantrums.

                      Comment


                      • #12
                        My favorite haggling story comes from my days working at the home improvement/hardware store.

                        We carried these little welders that even at full price sold like hotcakes. One day we happened to have about six of them go on clearance. They were usually about $279 and were now $130. The reason they were on clearance (besides being a holiday sale) was they were missing some pieces that were A) Easy to replace if you knew what you were doing; B) Meant to be replace due to normal wear and tear; and C) we actually sold the replacement parts for about $5 apiece.

                        Enter SC:

                        SC: Yeah, I see you have these welders for $130. What if I give you $90 for this?

                        Me: Sorry, they're already marked down as low as we're willing to go.

                        SC: C'mon! They're broken! See, these pieces are missing.

                        Me: Yes, that's why they're marked down. (I mean, Duh!)

                        SC: But...how am I supposed to get it working? It'll take alot of money!

                        Me: Actually it'll only take about $10-$15 to get them working. In fact, we sell the parts right behind you.

                        At this point this other guy who was kinda hovering over some other items on the clearance table stops dead in his tracks and casually but not so casually walks over to the replacement parts and picks up a couple. You see, he, like me, could tell this idiot wasn't going to get anywhere.

                        SC: Look. I'll give you $85 dollars for this and you'll throw in these replacement part for free. Really. No one else is going to buy this from you!

                        Me: I'm sorry, the price is not going any lower.

                        SC: Well, I'll just go find a manager and then you'll see!

                        **walks off**

                        Other guy: *grabs welder* are you open? can I ring out now?

                        Me: Why certainly.

                        Five hours later the SC comes back hoping to get this welder for a steal now that it's close to closing time and is --Shocked!! Shocked I tell you!--to find that allll the clearance welders are long gone.
                        My formula for living is quite simple. I get up in the morning and I go to bed at night. In between, I occupy myself as best I can.---Cary Grant

                        Comment


                        • #13
                          Quoth flybye023 View Post
                          Other guy: *grabs welder* are you open? can I ring out now?

                          Me: Why certainly.
                          Now that was freaking awesome! I'm sure the other guy was pissed, but oh well. Nobody's fault except for his own.

                          That's why I always check out the clearance items at the hobby shop. You never know what you'll find. In fact, one of the hobby shop owners just *loves* it when I do that--he knows that I'm the only person who will take the old "junk" off his hands. Old Nissan Skylines, Leopards, Datsun Bluebirds, etc. are just a few that I've picked up like this! Nothing wrong with the kits, other than the boxes are a bit old and dusty. I'm sure it annoys the hell out of the "collectors," but you snooze, you lose!

                          Getting back on topic, I'm sure the hagglers would have a field day with that. That's one thing I haven't done at that shop. The reason I can get those kits cheap...is because I'm the only person who will buy them. I didn't ask for the lower price--the owner simply wants to sell those kits. If it means that he loses a few dollars, oh well. Some of those kits have been there nearly 20 years!
                          Aerodynamics are for people who can't build engines. --Enzo Ferrari

                          Comment


                          • #14
                            Quoth Dave1982 View Post
                            When you hear something you don't like, it does not mean I'm being rude, unhelpful, or otherwise not doing my job.
                            Ahem...
                            Time for a little lesson in SC Vocabulary 101.

                            "No" always means RUDE and that the employee is lazy and/or stupid anytime it is said in response to whatever an SC wanted or demanded no matter how stupid or unreasonable or outrageous that demand might have been and no matter how politely the word was said or what lengths the employee went to try to accommodate the SC otherwise.
                            "Ignorance is no excuse for a law."
                            .................................................. ..................- Alfred E. Newman

                            Comment


                            • #15
                              And you do not even have the excuse of coming from a culture where haggling is a normal and expected part of business! You're a white American woman, so I do not understand why you aren't aware of this already. The fact that you asked me if I'd accept an offer of $80 for a desk that originally retailed for $149.99, and had been marked down to $127.49 because we were selling the display model (which, by the way, is 15%, and is already more than we are usually allowed to mark down a display), was simply shocking.
                              Wow, you met my mother in law. No, really. I once saw this woman haggle (successfully, might I add ) at the ice cream store. She got a whole bowl of free ice cream just because it was a little melted. I was so flabbergasted, I didn't say anything. There wasn't really any suck involved, she asked and the lovely girl behind the counter said okay, but still. It was weird.

                              If it never worked, she would stop. It does work, though, so she will probably do it until the end of time.
                              "You mean you don’t have the one piece of information you actually need? Well, stick your grubby paws in the crayon box, yank one out and colour me Fucking Shocked Fuchsia." - Gravekeeper

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