Free. Is there a more misused, misleading and sometimes blatantly dishonest word in the English language? I think not. Its misuse became so prevalent that not long ago the government had to put an end to claims of “free financing”, etc. Logical thinking people would easily recognize that anything of value would obviously have a cost associated, right? Apparently not, as free is to a large percentage of the buying public as cheese is to a mouse – irresistible. Is it any wonder, then, that major retailers are increasingly baiting their customers’ trap with “free cheese”?
Ask yourself, does anyone really believe that UPS, FedEx and the USPS operate thousands of planes and trucks, build huge facilities and staff them all at no cost? Silly thought, right? But wouldn’t this have to be the case for any merchant to offer free shipping?
Clearly these costs must be built into the product pricing, reducing its value, to make this claim. Yet retailers from Amazon on down the list, continue to understand that too many of us will still believe that shipping is free. (My theory is that these same people must also believe in the Easter Bunny and the Tooth Fairy, as well!).
But ask yourself, when you are enticed by these offers of free shipping, what value do you place on the company carrying the goods to your home or office? Likely very little. Does anybody get more excited when you see a big brown truck pull up in your driveway than you do when a red, white and blue one does? For the most part, the answer is no. Why? Because by diminishing its cost and value, the service element has been commoditized, leaving the customer with the attitude of, “As long as you’re not charging me, I don’t care how you do it.”
Sadly, this is exactly the ploy being used by big box, online and shop-at-home flooring retailers’ every day. Build the cost into the product and give the service (installation) away, resulting in the installation being commoditized, just like the parcel services.
If I were a flooring installer, this practice of devaluating my craft by the giant stores would make me more than a little upset. Heck, they won’t even install a door bell for free, but an entire day of my skilled labor has no value? All of us involved in retail flooring will be threatened with diminished value if we don’t overcome this “free” perception.
As I visit with flooring dealers around the country, many respond that their most successful promotions involve some sort of “something for nothing” component. I do not live in a bubble. I fully understand the need to give the customer an offer to which she will respond favorably. I just feel that it can be very dangerous for an independent flooring retailer to devalue, or give away, the one component of the sale where they have the ability to build a compelling and differentiating sales story for the customer – the quality of their service.
National retailers have chosen flooring as a category to “build the cost” of services into the product pricing, simply because it is a large ticket item and one of the few product categories in their stores that have no manufacturer’s model or serial number attached. This results in products that are very difficult for a customer to competitively shop on an identical basis. The more emphasis that they can put on product, and the less on service, the better.
Clearly it is a business model that is working for them. But unless you keep your doors open 100 hours a week, and have huge marketing resources, is following this lead a healthy option for your firm? Or should you, as they say in baseball, “hit them where they ain’t”?
Savvy retailers understand that service is really all they have to differentiate themselves from every other outlet in the marketplace, as in the customers’ eyes products are largely all the same and available everywhere. They understand that many customers value transparency over deception when making a major purchase. They know how to explain to a rational customer that too often free is not cheap… for anyone involved!
When marketing a limited time promotion, I suggest that you consider options that add value to the offering: upgraded cushion, stain-resistant grout, extended financing terms or even a giveaway such as a television or computer. Any of these will result in the customer feeling that she received “more for her dollar” without devaluing the most unique offering that your store has… its staff.
