Skip to main content

Why we buy: a recommendation

I was talking to Steve Denham about a presentation that I made earlier this year and he said that I should read Why We Buy by Paco Underhill, which is about the Science of Shopping. Steve was listening to me talking about how signs worked and how the outside of shops encouraged or discouraged a shopper.

Mr Underhill has great credentials and is one of the pioneers of using anthropology to understand how people shop and why. The science was born in the late 1990s and has spread rapidly. While experienced retailers will feel much of what the book tells them is common sense, I agree with Mr Underhill that experienced retailers often miss what is under their nose.

However, the following paragraph is a good example of what really works in the book and if you like this then it would be worthwhile to get a copy for yourself.

"Here's a good example of the terrible magic that smart merchandising can perform. I once heard a talk given by a vice president of merchandising from a national chain of young women's clothing stores in which she deconstructed a particular display of T-shirts.

" 'We buy them in Sri Lanka for three dollars each,' she began. 'Then we bring them over here and sew in washing instructions in French and English-French on the front, English on the back. Notice we don't say the shirts are made in France. But you can infer that if you like.

" 'Then we merchandise the hell out of them-we fold them just right on a tasteful tabletop display, and on the wall behind it we hang a huge, gorgeous photograph of a beautiful woman in an exotic locale wearing the shirt.

" 'We shoot it so it looks like a million bucks. Then we call it an Expedition T-shirt and we sell it for thirty-seven dollars. And we sell a lot of them, too!'

"It was the most depressing valuable lesson I've ever had."

Comments

Popular posts from this blog

Digital disruption in the UK wholesale space

“Twenty years ago I was driving boxes to the post office in my Chevy Blazer and dreaming of a forklift,” says Jeff Bezos in his most recent letter to shareholders. A blink later and he points out that the company has grown from 30,000 employees in 2010 to 230,000 now. But his ambition is the same. “We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness and risk-acceptance mentality that is normally associated with entrepreneurial start-ups.” Amazon is great at disruption because of its customers focus and the fact that the internet means it needs none (or very few) people between its warehouses and the shopper. The threat of Prime, its membership service, is the biggest challenge facing the UK retail market and the wholesale market by extension. It is both a direct threat and an indirect threat in that is inspiring countless numbers of othe...

The secrets of persuasion: No short cuts.

The best moment in my interview with Terri Sjodin, who teaches many of the world’s top corporations how to sell persuasively, is when she smiles at me and asks to hear my “elevator speech".   My mind literally goes blank. The author of Small Message, Big Impact , her new book on how to craft powerful messages that persuade people to listen to you, has thrown the gauntlet at me. There was nowhere to hide. I had just told her how I had used her book to write out my three minute speech to open the Local Shop Summit. She listened patiently to my pitch, thought for a moment, and said: “I bet you had an illustration in your mind of an independent who really capitalised on your ideas and has taken them to the bank.” I could swear she was reading my mind. I blushed and nodded. “So you should open with this story,” she said. “Start out by saying: ‘Let me open the conference by telling you a great story with a happy ending.’ So the audience will say to themselves: ‘He is goi...

More retail inspiration from Fortune

Two current articles in Fortune make interesting reading for enterprising independent retailers. First is an interview with Pitt Hyde who sold his family's wholesale food distribution business in 1988 to invest in auto parts retailing. Hyde did not know the auto parts business but he knew there was an opportunity because customer service was poor and standards were low. His plan was to focus on customer service in good looking stores. He started out with four in 1988 and now has 5,000. "We worked on small margins and were very tight operators, so that discipline helped us through as we learned the business," he recalls. "Money is a small part of the equation for success. Sweat equity is what makes things work." Less visceral but just as interesting is an interview with Greg Wasson , CEO of Walgreen, the massive US drug store chain lauded by Jim Collins. The journalist is Geoff Colvin, who is consistently excellent. Here is what Wasson says: ...