There’s no doubt that massive online retailers have made it challenging for smaller brick-and-mortar stores to see the kinds of customer traffic and profits they may have once relied on. But there are still stores in the “real world,” in towns large and small, that are thriving. They have established themselves through their expertise, their store’s physical appeal, and the trust they have won from members of their communities. And they also avoided the trap of underpricing their products and underselling their value.
I think there’s a temptation to try to match prices with deep-discounting online sellers, and slash prices to increase traffic, but I would also advise you to avoid that trap.
Before you discount anything during a promo, really think about your return on investment. For example, if a vendor or manufacturer is providing you with special pricing that makes an upcoming sale a profitable one, then I’d go ahead with the plan. But once you’re committed to a sale or an event that features products at a limited-time special price, promote the daylights out of that event in every channel you have, including Facebook, Instagram, local papers, your website and any store-sponsored newsletters.
Cultivate a customer-centric store philosophy: Commit to excellence in your customers’ store experiences. There is a hunger for real-world connections in communities everywhere, especially—and despite—the dominance of online sales and preoccupations with social media. Your customers want to talk to real people, but their shopping experience must be stellar and must supersede the convenience of just clicking “buy” on a website.
Hire and retain the best possible team: Part of competing on service rather than price is making sure that everyone you hire is an enthusiastic professional who wants to help others. Your store staff must be a team of experts that customers can trust and return to again when they’re looking for natural health answers. Building those face-to-face relationships takes time, and it might mean that you won’t see a sale with every interaction, but the rewards to your business over the long term will be well worth it.
Maintain the balance between short-term excitement and long-term sustainability: There’s a delicate balance between generating short-term excitement and sales with long-term sustainability. On one hand, you want your store to host events and draw in new and existing customers because there’s too much good stuff happening to miss out on. At the same time, ideally, your store should remain an oasis of stability and reliability in your community where customers know that they will get attentive service and trustworthy natural products. It takes time to build these relationships, much more than a quick one-time purchase out of curiosity fostered by unsustainable deals from big-box online retailers.
There’s a place for promoting your own store’s sales and events through online means like social media. But you must craft those messages in ways that cut through all the chatter that deluges inboxes and Instagram feeds and drives people to your physical location. Targeting your message and your events to the customers in your community—the people you’ve developed a relationship with over the years, and the new people arriving at your store—will pay greater dividends than any short-term solution.
Don’t underrate your store or the products you carry: Discounted items can carry the stigma of being lower quality. At a certain point, most notably in cases of deep discounts, like 50 percent off sales, customers may wonder why the supplement can’t seem to sell at its full price. Was it not effective? Is there a health risk associated with that product or ingredient so that it deserves to be avoided? Cheapening your store’s offerings with over-frequent drops in price can have the opposite effect of what you intended. Instead of generating interest, they trigger avoidance. And if you do have slow-moving products, consider making their sale price a bit less dramatic—maybe 30 percent off—so that the sale seems genuine, and not a reflection of an inflated suggested retail price or product ineffectiveness.
Think about folding any special promos and sales in with other events to generate more excitement and interest in non-sale related products. But again, be careful here that a loss-leader mentality doesn’t cause you to lose profits while chasing after one-time customers who are only there for the special offer and nothing else.
Also, don’t discount so often or on the same categories so frequently that it trains all of your customers to wait before purchasing—again, this is a delicate balance, because it’s understandable that the fear would be, “Well, if I don’t offer this item at a discount soon, my customers will just pick it up online from someone else who will.”
Instead, consider discounts on a tiered program that depend on the amount purchased. For example, spend $80 for a 15 percent discount, $90 for a 20 percent discount, and $120 for a 30 percent discount, if that makes sense for your margins.
Additionally, if your store offers loyalty cards or some other form of customer membership, you can offer special sales once a quarter to promote to that select list, and make it known to new customers that by joining that membership, they are eligible for discounts and early-bird special pricing, etc.
Patiently and skillfully overcome objections to price: Some customers may be extremely interested in your store’s products but have a difficult time reconciling those benefits and brick-and-mortar health food store prices. But there are ways to overcome that. First, learn how to sell on value. The products you carry should be something that your customers won’t find in a big box retail store. And helping them become familiar with quality brands—some that they may never have heard of—is an opportunity for education, leadership and building trust.
Secondly, remind customers that the most expensive supplement is the one that doesn’t work. Whether that’s due to poor formulation, lack of absorption or subpar ingredients, if a person’s only experience with supplements is one that didn’t meet their expectations, it’s understandable that they’d be wary of anything that appears to cost more. But properly formulated supplements made with premium and clinically studied nutrients will ultimately change their mind for one reason: they work. This is a case where providing a money-back guarantee is a great option for building trust and repeat business.
Throw in a gift with purchase: Add something extra when customers purchase an on-sale product or brand. As a retailer, you may be privy to special items from manufacturers, or samples that are included with related products. For example, if someone purchases a multivitamin energizing drink mix in a canister, you may—for a limited time—offer to throw in a shaker cup or a pack of 12 daily sample sachets as well. Those little extras make the difference to your customers and set you apart from anonymous big online box stores.
Guarantee what you sell: You can—and should—back all your products with a money-back guarantee. Work with your vendors for a generous return policy so that everyone is satisfied with their experience at your store and knows that you have their best interests at heart.
Be a Trusted Health Destination
In a world of online options and discounters, forging ties with those in your town and maintaining them helps show the difference between a locally focused business and one that simply wants to make money. But when you continue to develop and deepen the relationships between your store and the people around you, it yields a greater return for everyone.VR
A highly regarded leader in the natural products industry, Terry Lemerond is founder and president of EuroPharma, Inc. He also founded Enzymatic Therapy, Inc. and PhytoPharmica, Inc. and is currently co-owner of the Terry Naturally Health Food Stores in Green Bay & Suamico, WI, which recently won its eighth consecutive consumer choice award as “Best of the Bay.” With more than 50 years in the natural products industry, Lemerond has researched and developed more than 400 nutritional and botanical formulations that continue to be top-selling products in the market. Lemerond shares his wealth of experience and knowledge in health and nutrition through his educational programs, including a weekly radio show and newsletter, podcasts, webinars and personal speaking engagements. He is author of 13 books, including Seven Keys to Vibrant Health, Seven Keys to Unlimited Personal Achievement and 50+ Natural Health Secrets.
