Spring is here and so are the billboard ads we see every year. Beer is one. Clipon sunglasses are another. But before you buy a case (of clipons that is), look at what's most important: The customer experience first, and retail profit second. Both are hurt by clipons.
The Compromise.
Which would you rather have. A sofabed? Or a separate sofa and bed. Sure, a sofabed is convenient and cheaper. But the metal bar in the centre of the mattress will hurt your back. Plus, you have to choose between sitting in the bedroom or sleeping in the livingroom. With combination products there is always a compromise. Clipons, as well as photochromic lenses, are combination products. They don't fit well, add weight or glare, and don't look as good. Whatever the type, there is some compromise. Does your corporate strategy include a customer compromise?
Cannibalization.
Look at the sofabed again, but this time as a retailer. Which will give you the greater profit? Selling one sofabed? Or a separate sofa and bed. The answer is obvious. You might have all three in your home but who's going to buy glasses, sunglasses and clipons? If you are offering both options to your customer, you are missing out on some revenues. Essentially, you are competing with yourself on price, eating away your own profits.
By offering Rx sunglasses only, you are free to explain the disadvantages of clipons to the customer. How could you possibly be honest about the disadvantages of clipons if you are trying to sell them? The only disadvantage of a separate pair of sunglasses is the price. Most customers will spend the money if they know the benefits. And I firmly believe that offering the best option is a better strategy than offering the cheapest option.
Eliminate the compromise and you eliminate the cannibal.
Jason Carruthers
from THE NOiSEPAD BLOG
http://noisepad.blogspot.com
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