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Ask the Experts

How are you addressing consumer concerns in the present economy?

Aug 5, 2008

Today's global economic ambivalence spurred this month's question, as consumers grapple with their own viewpoints of their economic future and that of the U.S. We posed this query to our Retailer Advisory Board: "How are you addressing consumer concerns in the present economy?"
Here are their answers:

We had noticed a drop in customer count due to the price of gasoline and uncertain economic future. We decided to use a chunk of the advertising dollars we had budgeted for the fourth quarter and run a concentrated series of TV ads now. We focused on kitchen gadgets, and it's working. Our increase in customer count and sales has paid for the campaign and the buzz is back in the store.
Janet Ostrow, Premier Gourmet, Kenmore, N.Y.

First, we have to identify what our customer's concerns are "in the present economy." We would list them as:
1. Lack of faith in the federal government.
2. Worry about the weakening dollar (read: higher prices on everything).
3. Higher energy prices (read: higher prices for gasoline, air travel, etc.).
4. Concern for long-term ecological issues (read: increased awareness of "green" products).

In order to address these issues, the first thing that comes to my mind is a quote from many years ago by Joel McLendon of Dallas. "When times look tough, the most important things you can stock are the same things you sell day in and day out. Stick to basics, and fluff it up with a few new looks or items."

We are stressing value in tight economic times. When a customer expresses concerns about the price of an item, we stress the long-term economic savings of buying better quality and replacing it less often, or never, if it has a lifetime warranty — and much of our cookware and cutlery does. We stress the longer warranty of those electric items that carry a one-year or longer warranty versus the 30-day or 90-day warranty at discount stores. And we repeat the promise we've made for over 20 years. "We want you to be happy with everything you purchase from us, period. We will make every effort to see that you are."

We suggest that our customers buy a few extra sauces or oils to keep on hand, to save on driving costs; and we remind our students that if they plan their purchase to coincide with the dates of their cooking classes, the 10 percent discount they get on those dates will help to offset the cost of driving to class.

Mostly, we just try even harder to make every experience in our store a pleasant one, which will entice people to return, in spite of the cost of gasoline, in spite of higher prices, in spite of their distrust of the government; for, after all, people don't think about the cost of shopping if they are really happy to get what they want, at a reasonable price, for a product which meets or exceeds their expectations. And it's even better if that product comes with a warm smile.
Mike Sackett, Kitchen Affairs, Evansville, Ind.

Although consumers are more conscious of their spending, they are still shopping. In the present economy, it is critical to be at the top of your game. We have used this time to review all of our operations and service standards to focus on creating a better overall service experience. Although we have always had extremely high standards, we continue to focus on improving them. All members of our team have that responsibility. We have been working with all of our team to make sure that they understand every customer has a choice where they spend their money. Our role is to make sure we can offer them the best experience possible. You simply cannot afford to make service mistakes.

We believe that taking this time to invest in operations and staff development is a key strategy in setting ourselves apart in the current economy. We have put an even greater focus on product education, consumer product testing and supporting the customer's buying decision. In addition, we have focused on the things that set us apart and actively market them to our customers. Creating a more unique experience is key to attracting a more cautious shopper.
Doug Huemoeller, Kitchen Window, Minneapolis, Minn.


If you would like to pose your own question, please send e-mail to mmoran@gourmetretailer.com.


How are you addressing consumer concerns in the present economy?

Aug 5, 2008

Today's global economic ambivalence spurred this month's question, as consumers grapple with their own viewpoints of their economic future and that of the U.S. We posed this query to our Retailer Advisory Board: "How are you addressing consumer concerns in the present economy?"
Here are their answers:

We had noticed a drop in customer count due to the price of gasoline and uncertain economic future. We decided to use a chunk of the advertising dollars we had budgeted for the fourth quarter and run a concentrated series of TV ads now. We focused on kitchen gadgets, and it's working. Our increase in customer count and sales has paid for the campaign and the buzz is back in the store.
Janet Ostrow, Premier Gourmet, Kenmore, N.Y.

First, we have to identify what our customer's concerns are "in the present economy." We would list them as:
1. Lack of faith in the federal government.
2. Worry about the weakening dollar (read: higher prices on everything).
3. Higher energy prices (read: higher prices for gasoline, air travel, etc.).
4. Concern for long-term ecological issues (read: increased awareness of "green" products).

In order to address these issues, the first thing that comes to my mind is a quote from many years ago by Joel McLendon of Dallas. "When times look tough, the most important things you can stock are the same things you sell day in and day out. Stick to basics, and fluff it up with a few new looks or items."

We are stressing value in tight economic times. When a customer expresses concerns about the price of an item, we stress the long-term economic savings of buying better quality and replacing it less often, or never, if it has a lifetime warranty — and much of our cookware and cutlery does. We stress the longer warranty of those electric items that carry a one-year or longer warranty versus the 30-day or 90-day warranty at discount stores. And we repeat the promise we've made for over 20 years. "We want you to be happy with everything you purchase from us, period. We will make every effort to see that you are."

We suggest that our customers buy a few extra sauces or oils to keep on hand, to save on driving costs; and we remind our students that if they plan their purchase to coincide with the dates of their cooking classes, the 10 percent discount they get on those dates will help to offset the cost of driving to class.

Mostly, we just try even harder to make every experience in our store a pleasant one, which will entice people to return, in spite of the cost of gasoline, in spite of higher prices, in spite of their distrust of the government; for, after all, people don't think about the cost of shopping if they are really happy to get what they want, at a reasonable price, for a product which meets or exceeds their expectations. And it's even better if that product comes with a warm smile.
Mike Sackett, Kitchen Affairs, Evansville, Ind.

Although consumers are more conscious of their spending, they are still shopping. In the present economy, it is critical to be at the top of your game. We have used this time to review all of our operations and service standards to focus on creating a better overall service experience. Although we have always had extremely high standards, we continue to focus on improving them. All members of our team have that responsibility. We have been working with all of our team to make sure that they understand every customer has a choice where they spend their money. Our role is to make sure we can offer them the best experience possible. You simply cannot afford to make service mistakes.

We believe that taking this time to invest in operations and staff development is a key strategy in setting ourselves apart in the current economy. We have put an even greater focus on product education, consumer product testing and supporting the customer's buying decision. In addition, we have focused on the things that set us apart and actively market them to our customers. Creating a more unique experience is key to attracting a more cautious shopper.
Doug Huemoeller, Kitchen Window, Minneapolis, Minn.


If you would like to pose your own question, please send e-mail to mmoran@gourmetretailer.com.

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