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How Australians Treat Customers...and The Omega Boutique Business Model

  1. gatorcpa ΩF InvestiGator Staff Member Mar 26, 2013

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    Just ran across this article about a specialty food store in Brisbane...

    http://www.theblaze.com/stories/201...-practically-everyone-has-done-at-some-point/

    From what I can see, the store is charging a $5 cover charge just to walk in the door. What happens if you pay the charge, but it turns out that they are out of stock on the item you want?

    Now I understand that some people will use their smartphone to compare prices, but the policy seems a bit extreme to this Yank. Particularly when stores in the US are doing the opposite:

    http://www.businessinsider.com/best-buy-new-price-matching-policy-2013-2

    My advice to the owners would be that if you really can't compete with prices or better service, then you'd be better served to close your doors as soon as possible to preserve your capital for better uses.

    Your thoughts?
    gatorcpa
     
  2. Alpha Kilt Owner, Beagle Parent, Omega Collector Mar 26, 2013

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    Have not seen any signs of it in the UK.
    Imagine they in there own way are trying to combat the trend of "showrooming"
    I know a guy who worked for Jessops the camera retailer in the UK, now no longer, and he tells me they could spend hours of every day demonstrating products and giving advice whilst they pretty much knew that the customer would be heading off to the internet.
    Crazy to charge admission, but what is the shopping experience of the future?
     
  3. SpikiSpikester @ ΩF Staff Member Mar 26, 2013

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    And Jessops went into administration fairly recently...
     
  4. Alpha Kilt Owner, Beagle Parent, Omega Collector Mar 26, 2013

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    Sadly true, I should have made that clearer, a lot of knowledgeable staff out on the street. :(
     
  5. ulackfocus Mar 26, 2013

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    Being in retail, I've joked about a cover charge - but then said we'd double it towards any same-day purchase. Guess the owner was tired of flapping his lips at tire kickers. He might think it's a good policy, but that store won't be around long.
     
  6. gatorcpa ΩF InvestiGator Staff Member Mar 26, 2013

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    I wanted to see some of the reactions about this, particularly from Dennis, before saying anything else.

    You see, Dennis and I visited an Omega Boutique over the weekend. Saw some nice watches and the saleswoman definitely noticed the nice new AT on Dennis's wrist. He mentioned that he got it a jeweler back home at a nice discount.

    She understood, and then went on to mention that while she couldn't meet the discount, there were benefits from buying at the Boutique. Jennifer was very nice about it and was perfectly trained in how to handle the inquiry.

    Moral of the story...You'll catch more (but not all) flies with honey than with vinegar.

    gatorcpa
     
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  7. dsio Ash @ ΩF Staff Member Mar 26, 2013

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    Its not how Australians treat customers, its how Australians treat Celiacs, its the first disease that's ever been "trendy".
     
  8. ulackfocus Mar 26, 2013

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    E - it's Jenifer with one "n". ;) And if I had the available cash I might just have bought Windy that black dialed Ladymatic on the strap. Sometimes the lowest price is not the best deal.
     
  9. LouS Mrs Nataf's Other Son Staff Member Mar 26, 2013

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    Visit New York. Every disease has its following and cachet - the more trivial, the more fervent its adherents.
     
  10. gatorcpa ΩF InvestiGator Staff Member Mar 26, 2013

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    Yes, I know.

    Effin' iPhone!
    gatorcpa
     
  11. MMMD unaffiliated curmudgeonly absurdist & polyologist Mar 26, 2013

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  12. Trev The Architect Staff Member Mar 27, 2013

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    I can guarantee this place would be over-charging by far more than what should be necessary.

    To generalize, many small to medium-sized Australian businesses are extremely uncompetitive and customer-hostile. The most common scenario is finding items here priced at over 2 times what it would cost to simply order from the US (including USPS Priority shipping, or better).

    I can often use Amazon + freight-forwarding + DHL.. still 40-50% cheaper.

    I've seen it hundreds of times. I give many places a chance to price-match or adjust their price. Excuses and attitude is all you'll receive. :)
     
  13. KatYap Omega Boutique Manager Mar 27, 2013

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    It definitely happens a lot to boutiques. Retailers/dealers give more discount and we even have some customers who have been told to come to the boutiques to try the watches, get the reference number and then buy it elsewhere::censored::

    We've always joked about collecting a "cover charge" but that will never happen. It could have an adverse effect whereby instead making some money, customers will realize the store is desperate and will put them off. So you'll even lose the browsing crowd.

    Its true that enlightening the browsers of the benefits of buying from the boutiques is the way to go. Works fine for us:D
     
  14. Archer Omega Qualified Watchmaker Mar 27, 2013

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    Just curious....what exactly would these "benefits" be?

    Cheers, Al
     
  15. MSNWatch Vintage Omega Aficionado Staff Member Mar 27, 2013

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    The boutiques though aside from revenue from sales I think serve as a great marketing and advertising tool for the brand so I think even if many of those who browse and ask questions (and hopefully learn more about the brand and its products) go elsewhere and buy omegas then the boutique has achieved something. That's not the case with a chain store like Best Buy here in the US to use as an example - they are in the business of profit from sales so if their stores are used as a showroom for eventual internet purchases then it is a loss for them.
     
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  16. MSNWatch Vintage Omega Aficionado Staff Member Mar 27, 2013

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    Well, the pleasure of dealing with KatYap would be one.
     
    dsio and KatYap like this.
  17. KatYap Omega Boutique Manager Mar 27, 2013

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    Archer

    Better service, better after sales service/CRM, better product knowledge/brand history, boutique events (Malaysian high society loves them!), latest novelties, limited editions...bla bla bla. Not sure how it works in other countries but we normally get all the new collections and they are not released to the dealers til months later. Some limited editions, especially the Bond pieces sell out before they can be released to dealers.

    When I was with JLC, we had many customers who came back to the boutique after buying a Reverso elsewhere and didn't even know how to flip the watch. And some of the time they come back later for advice on another piece and end up buying from us due to all the above reasons.

    So yes, it is irritating that most end up buying elsewhere but having the browsing crowd come in is better than not having a crowd at all. It's up to the boutique staff to convert these people.
     
  18. LouS Mrs Nataf's Other Son Staff Member Mar 27, 2013

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    I learned that the term for this practice is "showrooming." It was discussed on NPR this morning, which picked up the story of the Australian business that started this thread, and attributed to the ready availability of identical product at better prices on line.
     
  19. SpikiSpikester @ ΩF Staff Member Mar 27, 2013

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    Yet another noun that has been turned into a verb ::facepalm2::
     
  20. LouS Mrs Nataf's Other Son Staff Member Mar 27, 2013

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    Mutable language, is English. Like "extreme mild normal wear"