Sales Strategy

Jimmy DeGroot: Discounting Without the Boss August 14, 2024 (0 comments)

Green Bay, WI--One of my favorite topics to train on is the emails I get from jewelers asking me to address hot issues in their stores. It makes my training more holistic than simply sales training. Last week I received an email from a store owner that asked me to help her create a “Stop coming to the boss” policy when it came to discounting or even trades.  

This is a tough one because we get into a groove as owners because that’s what we HAD to do to grow our business and make a buck. We wanted to make sure every transaction was equitable, fair and profitable for us. In many cases that habit sticks and causes owners to be handcuffed to the store at any given moment. In my case, it was on the approach shot of the 9th fairway at a charity golf outing. My phone rang in my backswing, and I plopped it in the sand next to the green, all to get the best price from the boss for one of our good customers.

I decided right then and there that I would write a procedure for how anyone on staff could deal with the issue of discounting when it came up. One of our bug issues to overcome was decades of training customers to expect a discount from the previous administration. So for us, this was a big deal. In a nutshell, the way we dealt with it was: 

1. Create a One Price system that gave everyone a fair, non-negotiable price

2. We never brought up discounting ourselves.  

3  Develop a store response when discounting came up. 

4. Create a pricing matrix based on aging that allowed for discounts up to 20% max. 

5. Our people were rewarded for profit, so they rarely gave the max discount.  They learned to sell based on VALUE.

6. Consider method of payment.

7. Always give the price in terms of a dollar amount, never percentage. 

So, whether you want to improve your backswing, reduce discounting or raise your chakras, develop a game plan for discounting in your store so everyone is empowered to handle these issues on their own. Then write it down, record it in your handbook and make everyone role play discounting scenarios. 

James (Jimmy) DeGroot is a professional jewelry sales and operations trainer from the jeweler’s side of the counter. Having been in management and the jewelry business for over 20 years, Jimmy offers weekly training to jewelers nationwide via the Train Retail website. Jimmy is an AGS titleholder and specializes in training relevant and timely methods for jewelry teams. He can do a full training on making Bridal Presentations the best they can be, among many other regular training options. Contact Jimmy at jimmy@trainretail.com or call 920-492-1191.