Shanu Singh Guliani

Interesting Business Opportunity
November 23, 2007

I own a high-end retail jewelry store and it doesn’t matter what the customer is interested in purchasing—they always ask, “Is this the best price?” We are not a discount store—and sometimes it scares me to death when I’m showing a $12,000 diamond and the customer keeps pressuring me for a better price.

I started talking to some of my friends in the industry and many of them have the same problem—here are some ways my friends are overcoming the price issue:

1. Purchase restaurant gift cards. My friend purchases gift cards from nice restaurants such as Ruth Chris, Morton’s, McCormick and Schmick’s etc. and hands them out with an expensive purchase.
2. Hand them a bottle of wine. With a diamond purchase—many jewelry store owners keep expensive bottles of wine on hand to treat their customers.

The problem: My friends are purchasing these bottles of wines, gift cards etc, and are still hurting the bottom line—the average gift card is $100—as a consumer I’d rather have the $100 bucks off the price than the gift card or bottle of wine, but my friends say it allows them to maintain their prices as well as the store’s image.

So—to the real story—the interesting business opportunity I was offered. Of course, I was telling this story to a neighboring store owner—a Med Spa and she was taking about how she was having trouble bringing in customers. “Shanu, I have three major costs: rent, advertising, and salaries. I can’t control the rent or the salaries but I can control my advertising,” she says. Lately, she’d been talking to another spa owner in FL and decided to make vouchers/gift cards for a facial up to $125 free. She say’s why don’t we partner together and I can give you these vouchers—just please give them to individuals whom you think qualify for the kinds of medical spa treatments that we offer. I think this is a great idea—I get to shush up those customers asking for a discount and take care of those who are our repeat customers. In the end—I’m not paying for the vouchers to treat my customers and this might help to bring the Med Spa more business.

She say’s those calling because of the radio ads call into her Med Spa—ask how much a service is and get sticker shock. She feels those that come into the Spa with the gift card will be wowed by the treatments and the spa that they might turn into repeat customers—and this is much cheaper than her advertising costs.

So—I’ll let you all know how this ends up for me and the local spa owner. Ever thought of partnering with a neighboring company like this?

Posted by Shanu Singh Guliani on November 23, 2007 | Comments (2)