Common Price-Match Guarantees to Save You Money
From online retailers to all sizes of brick and mortar stores, price-match guarantees seem to be everywhere. Customer loyalty programs and benefits like price matching can help retailers increase the amount of repeat customers they receive. According to a report by BIA Kelsey, a repeat consumer spends 67 percent more time on a purchase compared to a new customer. So, by providing unparalleled customer service and perks like price matching, retailers can reward customers for coming back and motivate consumers to recommend their brand. For retailers wanting to get in on the craze, they can learn from these other businesses.
Home Depot has been price-matching for years. To make price matching successful, the retailer trains its employees and then gives them freedom to make the sale. For example, Home Depot only discounts exact-match items, not similar items, which allows them to beat competitor prices by 10 percent without discounting too many products. When doing a price match, Home Depot employees must call the store with the same item to verify the lower price before marking it down.
In addition to competitorsâ€™ prices, the store also matches its own website. This is important because people do not want to pay more in-store than online. This level of customer service keeps customers coming back because they know they always are getting the best price. And, in this case, Home Depot can control its guarantee and increase its revenue.
Online price matching is important because it gives consumers an incentive to buy a product they cannot see, touch or try on. For example, Vision Direct is an online retailer that matches its competitor’s prices. They also go a step further buy beating any lower prices by 5 percent and accepting coupons from other retailers. All customers have to do is email their customer service department with their order number and the website offering the lower price or coupon. Then, a customer service representative verifies the discount and beats it by 5 percent.
Toys “R” Us
Toys “R” Us is another major retailer that has a price match guarantee. Similar to Home Depot and Vision Direct, they match the prices of identical items that are advertised at a lower price. However, Toys “R” Us does not beat competitor prices and has many more caveats than the other two. The offer is only valid for in-store purchases and they will only match up to two items in one purchase. They also have stricter rules for online discounts. For example, they only match prices from certain online competitor websites, like Walmart, Target and Best Buy, and take shipping charges into account when marking down products. They also do not match online marketplace pricing, which means that third party sellers like Amazon do not qualify.
Furthermore, Toys “R” Us goes into detail about special event pricing and storewide discounts. This means they do not price match Black Friday or Cyber Monday sales or full store sales when everything is 50 percent off or buy one get one free.
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