For years now we have focused our clients on training their staffs to recommend the best product that meets a customer's needs. As simple as that sounds, most retail salespeople show the least expensive product first every time, whatever the customer says he/she is looking for. In our Customer FIRST sales and experience approach we call this the Butcher Rule.
We named it the Butcher Rule after noticing how well the butchers at my local Whole Foods recommend the best product first. Think about it. When was the last time you walked up to a butcher counter, asked for a recommendation and heard, "the ground turkey is great today." Instead, you hear about the filet mignon or prime rib. Of course if a customer is looking for chicken the butcher won't suggest a filet since that won't meet his/her needs, but she might suggest the free-range boneless breast chicken over the wings on special that week.
Does the Butcher Rule still make sense in a changing economy? Could the Butcher Rule lose sales because we're showing customers the most expensive products? My answer is yes and no.
Yes, it still makes sense to show the customer the best product that meets their needs. We're doing the customer a disservice if we don't. The key to the Butcher Rule is we're not suggesting products without having some information from the customer.
Let's say a store sells grills that range in price from $200 to $2,500. After interviewing her customer the salesperson knows that he owned a Weber for ten years, that he wants a gas grill, and that he mostly cooks just for the family. The customer's exact words were, "I don't need anything fancy."
Based on what the customer told the salesperson she is going to suggest three different grills. One is a mid-level grill and sells for $750, another is a step down and sells for $500, and there is always the entry price point grill of $250.
Using the Butcher Rule the salesperson might say, "I have several grills I believe are just right for you." She will first suggest the $750 grill. Based on the customer's reaction and response she may or may not move to the $500 grill and then on to the $250 grill.
Because of this economy some salespeople are starting with the $250 grill. That's crazy. First of all, it's not up to us to determine what our customers can and will spend. It's our job to suggest products based on what the customer tells us. Second of all, it will cost a store a huge amount of sales if they only recommend the least expensive products.
Are people still buying those $2,500 grills? Absolutely. Are some people trying to get another year out of their old grill instead of buying a new one? Absolutely. Are some people trading down? Absolutely. But it doesn't matter what "people" are doing. What matters is what the customer you're working with needs, wants, and is willing to buy. They deserve to be shown the best product that meets their needs. Period.
So yes, the Butcher Rule is still valid in this economy. You could even make a case that it's more important than ever since people want to get the most value for their money.
So let me ask, are you and every employee in your store still applying the Butcher Rule?
- Doug Fleener and Matt Norcia
Beyond the Butcher Rule
Let us bring our Customer FIRST retail approach to your company or stores. Our proven approach will help your staff to maximize their customer opportunities and grow their sales. We offer ½ and 1-day seminars, as well as a train-the-trainer approach. Give Doug a call at 866-535-6331 to discuss the best solution for your company.
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