PEER TO PEER
Showrooming Prevention: Picking Our Brains Then Buying Online
THE PROBLEM: “This isn’t a new issue, but it’s one I’m having a big problem with. We seem to get a lot of customers who come in looking for equipment. Like good retailers, we spend time with them, answer their questions and give them the benefit of our advice. Then they leave, presumably to buy products online. I read that companies like Target are pressuring manufacturers to give them different part numbers so they can’t be directly compared by model number with online products, but we as specialty retailers don’t have the pull for this. I want to know if there are other retailers who are dealing with this (I guess it’s called “showrooming” now), and how they are able to keep the sale in the store.”
POSSIBLE SOLUTIONS: Check Your Partners: “We carry high quality brands that are more difficult to find online. By doing this, we protect our margins and minimize the likelihood of showrooming. I know that is the cliché answer, but it works for us. More popular vendors make the argument that the reason these protected products are not widely found online is because consumers aren’t looking for them. I look at it differently. I believe the reason more popular brands are found all over Ebay, Amazon and elsewhere is because these vendors do not take control of their distribution; or perhaps they just don’t want to.”
— Mitchell Schaffer, Mobile Edge, Lehighton, Pa. An Offer They Can’t Refuse: “Unlike most internet-based companies, we offer in-store financing and a layaway program which
provides the customer with flexible options based on their purchase. If the product is purchased from our shop, we offer a lifetime warranty on labor. We try to carry brands that can’t be purchased on the Internet such as Memphis, Audison, Hertz, etc., though it’s still hard to do. Sell your company brand as the best in your area, along with your professional installation. Offer your customers an incentive if they purchase a whole system at once; maybe a free amp kit or another discount.” — Cartronix, Inc., Valparaiso, Ind.
Let’s be Friends: “Carrying selective lines and products gives the retailer an advantage, being that they are harder to find on the Internet. This applies to packaged pricing as well, whereas the Internet will not have the same offers. In addition, do not give out detailed quotes, because technically these are our intellectual property. Finally, build rapport by offering tours of your shop, introducing staff to the customer and supply demo vehicles to make the vision a reality.” — Tony Dehnke, Driven Audio Ltd., Abbotsford, British Columbia
66 Mobile Electronics February | March 2012
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