Posted on 03/26/2013 10:12:41 AM PDT by rawhide
There's a store in Australia that really hates it when its customers walk around the store without buying anything.
Redditor BarrettFox posted a pic of a sign informing shoppers of a new fee at a specialty food store in Brisbane.
It's $5 for "just looking."
The fee exists to stop people from "showrooming" which occurs when a customer looks at items in a physical store, then makes the purchase online.
The sign assures that you'll have the five dollars deducted from the final purchase price, so you'll get your money back if you buy something.
(Excerpt) Read more at finance.yahoo.com ...
As of the first of February, this store will be charging people a $5 fee per person for just looking.
The $5 fee will be deducted when goods are purchased.
Why has this come about?
There has been high volume of people who use this store as a reference and then purchase goods elsewhere. These people are unaware our prices are almost the same as the other stores plus we have products simply not available anywhere else.
This policy is line with many other clothing, shoe and electronic stores who are also facing the same issue.
Management
I’m sure Best Buy has looked at this idea.
Actually, I bought a laptop last Christmas. I looked on-line. I looked at Best Buy. Same price. Naturally I bought at Best Buy.
Brick and Mortar stores HAVE to be competitive with on-line retailers. I would even pay a few bucks more to have it the same day and avoid shipping costs.
Pretty soon, they will put up another sign....”Going Out of Business.”
How to Fail at Business by Actually Trying
If there is no perceived value, then there is no reason for a business to exist.
Exactly! That has to be the stupidest shop owner in Queensland.
They are not going to have to worry about their customers much longer.
You got that right. I wouldn't shop there.
"I'll give you $5.00 as long as you spend it in my store!."
Exactly right.
It’s likely the Internet, I’m guessing. People want to check out different things in person... then go out and buy it cheaper on the net. Like a shoe store. It’s tougher to buy good-fitting shoes on the Internet but somebody can just go into a shoe store and try on shoes until they find something that fits right... then walk out and buy them from Zappos or Amazon. I understand why the brick-and-mortar store would be ticked off, but charging people to shop isn’t gonna win them any friends.
Part of the problem is that they’re providing value for free (physical access to merchandise) that there isn’t a good way to get back.
Basically like a cover charge at a bar. The trick is to buy a 59cent item...
I wonder if they stamp your hand so you can leave and come back? You could end up with stamps all up and down your arm at a mall.
I think some brick and mortar retailers might not realize that it works both ways. I have bought things online after viewing them in stores, but I have probably purchased far more stuff in brick and mortar stores after researching the products on Amazon.com or other online stores.
Maybe Amazon should charge me a fee everytime I look at product descriptions and customer reviews on their site before buying the item in a brick and mortar store.
One advantage Brick and Mortars have is no shipping costs, that is unless the Internet provider waives the shipping costs.
>>>Part of the problem is that theyre providing value for free (physical access to merchandise) that there isnt a good way to get back.<<<
I think that is the wrong way to look at it. It doesn’t really cost the store any more money to have 50 “just looking” people and 50 real customers than it does to have only the 50 paying customers.
More importantly, every one of those 50 who come in to “just look” are prime targets to be converted into paying customers. If your prices are competitive, the customer might chose to avoid paying shipping, waiting for the item, and having more hassles if they wish to return the item, and just buy it in the store where they stopped in to “just look”. Plus, they might see other items that they had not planned to purchase on buy them on impulse.
I’d leave a new sign stating I’m taking my $5 to their competitor.
I think that is largely true today.
I remember some years ago I was looking for a book at Barnes and Noble. They didn't have it. The helpful sales person told me they could order it for me and have it four weeks.
I said, "Do you realize that Amazon can get it for me in 2 days?"
"Well, maybe you should shop there!" she snapped.
Challenge accepted.
Personally, I'd rather take my chances with Zappos and return the shoe if it doesn't fit right. Few things I hate more than dealing with sales people. Zappo's is not the cheapest place to get shoes, but we generally use credit card points for them anyway so we're not paying for them with real money. And they are really good about returns/exchanges. I once returned three pairs of the same shoe to them until I got just the right size I needed. (It ended up being a wide width).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.