Are you underselling?
Following on from a previous post on pricing, today we are looking at that famous retail group with the strapline “Never knowingly undersold”.
Yes, John Lewis.
Firstly, notice that clever wording: Undersold, not under priced.
But actually the whole wording is incredibly clever – it acknowledges straight away that things may be different elsewhere, but just that John Lewis are not aware of it.
But as to the pricing?
Well, granted, there are likely to be areas within the store where they may compare favourably with other retail groups, and that they are happy to price match if you do find items cheaper elsewhere.
But that’s not really the reason customers choose to shop at John Lewis. It’s about the customer service and the experience of buying from that retail group.
Staff have a vested interest in getting it right for customers. They learn about the products they sell, they offer extended guarantees, free delivery on many products and work hard to make the customer experience a good one.
Of course, they don’t always get it right, but that’s true of any retail experience. But it is that experience that the customer is buying – even if they are on occasion paying slightly more for it.
So, by comparing yourself to your cheapest competitor are you underselling yourself?
Instead of worrying about matching the price, how about bettering the customer experience? We believe that will win you loyal customers and raving fans, something the cheapest business can rarely claim.