Hurting Luxury Watch Companies Finally Discover Their Sales People Stink

by Ariel Adams (RSS feed)
Jul 29th 2009 at 10:01AM

You might have heard the saying "a sales person is born, not made." There is a lot of truth to that. Good sales techniques often don't rely on too many particular skills or knowledge of a product. Hell, sometimes they don't even rely on there being a good product. If you are an honest and straightforward person who is interested in really helping out the consumer - you'll make a terrible sales person.

Finding a good sales person is tough, because they are either in high demand, or often times their personalities makes them... less than reliable. A good sales person can effectively help erode logic and focus from an unwilling consumer and get them to purchase not on principle, but on emotion. And there are people out there who train others on how to do this. Only the most manipulative and shiestiest survive. You are good if the consumer doesn't even know they are being sold.

It is no secret that luxury watches have been hurting, bad. Estimates say that luxury watch sales in the US are down at staggering 42% or more from when times were "good" a few years ago. A recent story in the Wall Street Journal discusses how Richemont Group brand IWC hired sales consultant Jean-Marie Brücker for their Beverly Hills boutique store. His role is to train the sales people on proper selling techniques for items whose values aren't always on par with their price. Being a watch fan, I am not saying that watches are necessarily overpriced given their complex construction and typically low volume, but the price of entry for most luxury watches is intense to heart-stopping. Plus, if you are of the "I am so rich I don't care segment of the population" the sales people only need to be good enough to keep you in the store while you are looking around - so they don't have to play the "let's evade the matter of price" game.

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Watch sales people have a reputation for being all but abysmal in quality. Sure, some are fantastic, but most have no concept of customer service or being personable. You get the classic snobby approach and the personality of a hungry shark. Which goes directly to Mr. Brücker's approach that attempts to solve these problems. Rule (1), invite the customer to sit down, and try something on. Put the presentation tray on their lap so that they can't get up easily. Rule (2), distract the wife if she is around. If she isn't around, suggest an "I am sorry I spent so much money on a watch gift for her," that just happens to be another watch. Rule (3), don't ever talk about the price. If the consumer asks about the price, give them the "compliment sandwich," which goes something like "this fine watch would look great on your already hot body . It is valued at $10,000 - did I mention you get a free umbrella with it? And it would make a great gift to your grandchildren eons from now when you might have them, you young thing you." And yes, watches don't have a "price," but rather a "value." Lastly, Rule (4), make them forget they are buying a watch, but rather an emotion. "This watch will make you feel younger (or more mature and distinguished), will make you feel like the adventurer you always wanted to be, will make the ladies swoon for you again" Or anything else the consumer might be receptive to.

The real kicker is whether all this works. While Mr. Brücker's business is reportedly booming these days, you have to wonder if it is just because he is a good sales person, or because his techniques actually work. Plus, are they talents that can be even taught, remember how a good sales person is born, not made? The proof will be in the pudding a few months from now when the results from his efforts, and others like him are assessed.

Watch companies are further missing a bigger piece of the picture. The Internet, that thing they attempt to avoid like plague because it represents the land of free information, often offers better prices than can be found in retail watch stores. They seem to forget that your average consumer today goes to the stores perhaps scoping out potential purchases that they either buy for less money online, or used. Plus, the high pressure environment of the retail world often times makes it more comfortable for people to buy online. While watch companies are correct that the best way to sell a watch is emotionally, only a few understand that the emotions needed to spend a college education on a watch must mature over time. A consumer must slowly adopt the concept of wanting a particular timepiece to justify the expense. In the end it must be the consumer who marches into the store and simply indicates the timepiece they want, with barely any salesmanship required, save for the skills needed to write up the order. Simply another way of looking at it. Check out the WSJ article through the link below for a bit more information.

Via The Wall Street Journal.

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

Tags: boutique, iwc, luxury, watch sales, WatchSales

Filed under: Timepieces / Watches

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Reader Comments (Page 1 of 1)

verdegrrl Jul 29th 2009 1:21PM

A great salesperson is born. But a very good one can be made with the right attitude and training.

I personally think that many of the hyped luxury goods brands have suffered more than they might have in this recession, thanks to items recently flying out the door with no sales help required. This allowed staff to become snooty order takers, with no clue how to build value or loyalty in the brand at the store level. This turns off potential clients who might just need a well timed (pardon the pun) nudge. If you think watches are bad, see Ferrari dealers who have inventory stacking up due to canceled customers with cold feet. Until recently, they had waiting lists.

In that sense, a watch is no different than any other big ticket discretionary purchase. Most people need time to decide which resonates best with them, and get used to the idea of spending the money and owning the article. If they are already in a watch store, that is more than half the battle. Then it becomes the job of the salesperson to find out what brought them in, the customer's thoughts with regards to pros and cons, perhaps suggesting a product that is a better fit, and finally overcoming any objections. This may not happen in a single visit. The way to have clients return is to always be polite, make sure they feel that you have their interests at heart within the realm that your job is to sell watches, and always have a hook like some new product arriving soon that they might like to see.

I've seen jewelers who keep customer cards with items purchased, wish list items, preferences, family birthdays, anniversaries, etc. They call about a month in advance of the event and speak to someone who might make a purchase, inviting them to the store to view some special merchandise. By keeping detailed notes, they know the perfect thing to recommend, which means it is a hit. Obviously this builds store loyalty. IMHO, that is knowing how to sell.

Ariel Adams Jul 29th 2009 9:18PM

Thanks for your comment Verdegrrl. Really thoughtful and you make some excellent points. Especially when it comes to personal service and loyalty. These are missing things. Plus, I don't care what you are selling, there is no reason anyone should be snooty. Just bad form for everyone involved. Take care.

Publishing Maven Aug 6th 2009 11:28AM

Wow! Shiestiest and most maniupulative are the only salespeople that survive??
I work in the luxury magazine publishing business and I can tell you that I fire anyone on my staff that I find out has lied to a prospect/client or has not followed through on a commitment made on behalf of any of our publications. It's a shame that you have "slimed" an entire profession because of what, I can only surmise, is based on a bad experience(s) you may have had. Further, our account managers are coached and schooled in how to provide value to our clients not just to go and sell a page of advertising. I don't know how that benefits anyone. Price and value are two completely different things. I agree with the writer above; personal service and loyalty are key.

Ariel Adams Jul 30th 2009 3:38PM

Hi Publishing Maven,
Thanks for your comments. Part of the manner in which I commented on the situation was with insolent humor - though it is a fair commentary on the sales world. Second, you mistake my direction a bit, as I am purely discussing luxury watch sales, not all sales in the luxury world. I cannot comment on all areas of the wealth driven world of course, but watches and the industry around the focus of this discussion. Thanks again and take care.

phantom Jul 30th 2009 4:28PM

-Ariel

Hi, I always love your posts on this site. Anyway I do have a story of a shopping experience that I had about 3 years ago, and yes this snootyness is on all aspects of the luxury sector. I am really into luxury writing pens. So one day I went to a mall which is about 2 and a half hours away from where I live. I went there to visit the Montblanc Boutique that they have there because I was interested in purchasing a new edition pen. Lets just say that I didn't feel welcomed. I was walking around looking at the display cases alone and when I asked a question on a lifestyle accesory, all I got was blank stares. They were acting like they were above me because they work there of all places! Since I am an avid collector, I played with them and asked them further questions and again got more blank stares in which I then started answering my own questions and they then got there cataloges out and checked on what I was saying and proved that everything that I was saying was 100% correct. They were acting like they were all mighty and cream of the crop, yet I knew more about there product than they did.
On a seperate note, I went back there to this same store a year and a half ago with my mom because she really wanted to get the new womens perfume that had just come out at the time. We are there and the salelady with an ugly sounding accent, I don't know if they think that actually helps with selling something, because to me it turns me away. Anyway she was sitting there lying to my moms face saying that they were out of stock and that was the last bottle left. They also said that it was going to be discontinued. She lyed up a storm to get this sale. Funny thing is we bought it anyways because she really wanted it anyways. My sister was with us on the trip but in a different store at the time. We sent her in there about 2 hours later asking for the same perfume. Funny they had plenty when she got there even though my mom bought the last discontinued one.
To end this, when you are a salesperson selling high end luxury merchandise, you need to be honest and helpful to everyone. Money and a sale is the same from anyone and anywhere that it comes from. Lots of people will first go in to browse and compare before they make their final decision and come back to your store with their money to make that purchase. The key here is to make sure they come back to your store and if you are nice to them and helpful without judgement, they will. If you are snooty, then no customer.

Ariel Adams Jul 30th 2009 9:45PM

Hi Phantom,
Thanks for your compliments about my articles, I appreciate that. It is good to hear about your experiences, as unfortunate as they may be. I can't say that I understand the hiring practices at luxury places, but sales jobs in general are often commission based. This often results in high turn around rates, and not so happy employees. The companies and their employment models are to blame as they often get people "willing" to do the job as opposed to "good" at doing the job. Then you have the "training" they get and how to close sales - which can result in the treatment that we often get. People can disagree with me all they like, but the bottom line is that in most sales environments, employees have no real incentive to be honest, and often quite the contrary is to their benefit, and not ours. Take care.

GlobalDia Jul 30th 2009 5:02PM

salespeople in general suck....salespeople of highend goods, with their holier-than-thou attitudes suck the most. if i go to a store and ask a question, i want specific answers, not asskissing. i appreciate honest, knowledgable, no-hassle salespeople...id even buy from someone regardless if their price wasnt the lowest around if they know their stuff. if my bullsh_t meter goes off, i walk out.
i purposefully wear jeans and sneakers when going to a highend store just so salespeople wont start harassing me...the looks on their faces when i ring up with a 4 or 5-figure bill is priceless.

Ben Roman Aug 11th 2009 11:02AM

Big mistake Global. It's a very bad idea to dress down when buying things from sales people. It shows a lack of public awareness (shown in your disregard to show yourself as smart, kept and knowledgeable.) Thus, you will almost never be given the lowest price on these items. If you look like this is your first time picking up a large diamond do you think they're trying to give you a "killer" deal to maybe entice you to return? No. The sales person is doing the same thing day after day, let me guarantee with some certainty... we can tell when you're acting, lying, etc. We have our job because we can read people well. And from what I can tell, you're my favorite type of customer. from your "thousands" to burn, and your desire for luxist items to make you feel better about yourself, throw that in with thinking you can trick salesmen by your clothing choice... I hope we cross paths someday! I'm not mad at you, just thinking you've given yourself a reason to buy items... our trick is to always let the customer think they've decided to make the purchase themselves- with someone like you, that becomes very easy.

Bumby Jul 31st 2009 4:30PM

All of the articles have been insightful, As a Princetonian 85' GS 87' and a Southern Wasp male I have from time to time encountered this attitude. The basic rule of shopping 101 is that I the customer am in charge, and rudeness is never acceptable from me or you. Notice that I said me first, This is the cornerstone: RESPECT . I as the customer must have respect for myself first; before I can have and show the salesstaff respect . Don't ever expect that which you are not willing to give first. This said, I never accept rudeness or incompedence, If they do not know, I strive to allow for the two of us to learn. I have found this to be the best solution for me.In this day of fast , fast and faster>Take time slow down ,and enjoy your time shopping . If you are in a time crunch tell the sales staff but do it with respect. and when you are done say thank you. Try it you might be suprised.

Karen Aug 6th 2009 11:24AM

The idea that a salesperson is some slick highway robber went out a very long time ago. The good salesperson is pro active and does solve the clients problem or need. Now to a wonderful experience I had in Miami with Bvlgari. I was out of perfume so I walked into the shop in Bal Harbour and I was treated like a queen. The guy next to me was looking at $40,000 watches and I was treated with the same care and respect as he was, my purchase was $65.00. The saleman was just perfect!

L. Wadsworth Puffington Aug 15th 2009 9:49AM

Very cynical, but to some extent true, Mr. Brucker (pardon the absence of the umlat), has created a reason to buy a need. He has recognized the arrogance that is at the core of 'Luxury' and to no surprise, the French, for it is the either LVMH, Richemont or PPR that manage this industry and create the mnyth and veil of superiority. It is evident in Mr. Arens piece that there is a an issue with the ability of the Sales people for these Brands, but a closer look would indicate that they have themselves through their own hubrous created this delemna, as they have conciuosly chosen the route of homogenization, of taking a Brand, making a common message that all associates must echo, which by itself excludes the initiative of the creative Sales person. They have therefore chosen, the less expensive, Merchandiser type, the Laptop-feedback type who will advise Management in their 'ivory towers' of he events on the street. Whether a good Sales person is born and not made, I am still not sure, as this by itself would indicate one cannot be taught. I prefer to 'respect' and identify the customer by the Timepiece they wear, compliment them on their choice and ask if they're looking for something different 'Feature wise'. Features translate to Benefits only when a need has been established and by and large, this is an aspect of salesmanship that is over the level of most out there today, whether at the wholesale level or retail. Without Brand arrogance, they have become neutered. Know who and what your Brand is, know your competition. Understand the consumer has come here for a reason, and it can be investigatory or to satiate a need. It is the Professional Sales Associates skills that will translate this into a sale. To the point of the Internet, it is competition, and in today's world even luxury Brands awill compete with 'bricks and mortar' Retailers with their own Boutiques and Websites, as well as the Grey availability. Though this articale is particularly directed to the Brands themselves and their Boutiques, the strongest asset they have which further impunes their salespeoples skills, is that they are the Brand and they they may infact have the piece exclusively. Regardless of House, the Internet remains a price venue, with no romance, no shopping experience, no proudly carrying the bag down Fifth, Michigan, Rodeo or Worth, after the purchase, one has a simply placed themself in the 'me too' world of establishing if a Site has the product, what is their price, and wondering if it is real or fake, if my information is safe, but then again this is what Great Salespeople do, they build relationships for today and the future. Sorry I joined the party late, but it's frustrating when the obvious is lost by those that think they have the formula.