Recently I heard about a promotion Apple was running on a trade In Sale on Cell Phones. Essentially you could bring your old Apple In and Trade up to one of the newer models. Since my phone was over three years old and starting to show some wear in battery life ,and camera accuracy, I thought I would check it out. I went to the Apple store on Monday morning, July 1, figuring I could get in and out quickly. I was wrong as the store was full of people of all ages evidently drawn by the same idea. Apple for its part had greeters that put me in a 20 minute Que to speak with a specialist, when they were available. They had all the models on hand, and as you tapped them they had them programmed with details of the sale. The ultimate Point of Purchase.
My sales associate eventually showed up, looked at my phone and proclaimed I would be entitled to $200 rebate. Great! I spent time learning about the new models, selecting one adding a screen protector and case. Probably all totaled more than most people would spend on a new living room set.
As we begin to write-up the purchase he has me remove it from the case and then he takes the screen protector off crumbling it into a million pieces. At which point he proclaims there is a barely visible chip that will now prevent me from getting the trade in value, but he is still willing to sell me the phone and everything I picked out at full price. I told him No Deal upset at wasting my time. I left with no purchase and will probably continue to defer a high priced phone until I absolutely need one.
There are a few things to consider as they may apply to your retail business dealing with the end consumers.
1. The power of a good trade in sale promotion could work nicely in the furniture business if executed without ticking off customers. We all want something new and are willing to pay for it if we can be convinced it’s a good enough deal. A trade in sale takes one of the biggest challenges in consumer’s minds, what to do with the old stuff, and turns it into a positive. If the trade in sale was coordinated with a local charity it may not even need that much off to get them to buy new.
2. Don’t bait and switch. It tarnishes your brand. Take care of the details up front and don’t waste the customers time by presenting potential deal busters at the end. Today’s customer’s demand transparency.
3. Realize your biggest competitor are not traditional furniture stores but Apple stores, vacation rentals, automobiles. Our product is such a value when you compare it to the cost of an Apple iPhone. Do better job of selling the sizzle of new furniture. The customer is spending money every day, just not in furniture stores because its not perceived as needed. My new Apple phone was not needed and I chose to save my money for now. People think the same about replacing their sofa.
