Sales Lesson from an Arab Souk

I have just returned from Tunisia where I researched their time-honoured sales techniques. This involves a desperate attempt to lure the potential customer with offers of low prices so as to persuade them to look at the store.

The problem is that the average tourist gets mightily fed up with the constant hassle. Moreover most stores seem to have virtually the same range of goods for their particular field - leathergoods, pottery, jewellery etc.

Academic economists might say this is a 'perfect' market and shows how customers are ensured the lowest prices as a result of the competition. In practice however, the retailers have very low profits and the quality of the products tends to be debased, so the customer does not get the ideal service. 

The store owners are pressured into this sales approach by the need to attract the passing tourist at that moment.  Its is noticeable they do not apply the same technique to their neighbours; presumably because the latter have less disposable income and will know personally their preferred suppliers.  If the tourist keeps walking, the store owner sees a lost sale.  The tourist however has another reason not to browse - because, if he does, he knows he will be subjected to high pressure salesmanship. 

Many website owners seem to be following similar practices to the Arab souk.  They are selling a very similar range of goods as a large number of competitors and so try to be seen as the lowest price offer. The web version of high pressure salesmanship is the email.  No wonder people are so reluctant to give out their addresses.  Many sites seem to think they have a right to email anyone for whom they have an address even if they have not specifically said they wanted newsletters.  There also seems to be a trend to use so-called newsletters as a straight advertising medium.  As markets have got more difficult, the frequency of sending such newsletters seems to increase.  If one email does not generate a response, send them two!

There is another way.  Concentrate on developing your Unique Selling Proposition so that you are not just doing the same as all the competition.  Listen particularly to your best customers.  Why are they buying from you and how else can you serve them?  This is not a recipe for immediate sales; it is a strategy for long term profitable growth.  Respect your customers, don't attempt to batter them into a purchase. You can advertise to them almost without limit if they know they are viewing an advertising medium. The moment you start a personal approach that relies on them agreeing to read your message, you must only send information they want to receive.

Talk to you next month

Stephen Orr