I recently visited 12 pro shops in the UK and in 11 of those shops the professional was selling Titleist Pro V1s at £39.99 per dozen. That is a very competitive price. In fact it’s the same price as that advertised by the major internet and high-street discount retailer. You would think that must be a very positive message to be sending to golfers.
However, let’s compare the presentation of the price. On the left side of the illustration is the extent of the price promotion in the pro shops; a price sticker on the box with no other promotional message. On the right, we show how the high-street competitor presents the same price.
The high street or internet retailer is clearly presenting the saving that is being offered. Then they follow-up with a multi-buy opportunity that delivers an even greater saving.
So why are the pro shops not telling their customers anything? The message is clear: if you are selling below the MRRP then tell your customers.
There will be times when your price – despite offering a saving – remains higher than someone else’s. That does not invalidate the fact that your pricing is still competitive. If you are still delivering a saving against the MRRP, then tell your customers.
A multiplication question
I was also interested to hear the different ways retailers dealt with customers who claim they have found Pro V1’s online at the cheaper retail price of £37.99 per dozen. Some automatically gave that customer the £37.99 price; others refused to budge, as their price was a competitive price.
I don’t want to tell you that one way is better than another, but I can say that price marking that states you are already delivering a £10 saving strengthens your position BEFORE the customer speaks to you.
Professionals being hit with several customers asking for the £37.99 price, could create point-of-sale signs with a ‘multi-buy’ offer, such as: Pro V1 £37.99 per dozen when you buy two FootJoy gloves.
Creating multi-buy offers unique to your store blurs the ability of the consumer to compare your price with external prices. Next time you go shopping at a supermarket or mass-market pharmacy, look at how many multi-buys they now have. Even more importantly, notice how they highlight the savings on offer.
