A store in Australia is apparently taking an extreme approach to eliminating showrooming, alerting would-be customers that they'll be charged $5 if they come in to browse but don't buy anything.
Reddit user BarrettFox posted a snapshot of a sign warning shoppers that the store would impose a $5 fee for people who are "just looking." The fee, the sign explains, will be deducted from the final purchase price, ensuring that people who actually buy something won't be charged. It notes that it's pursuing this strategy because of "a high volume of people who use this store as a reference and then purchase goods elsewhere."
The user identified the store as a specialty food retailer based in Brisbane, Australia; we've reached out to the store to confirm that they posted the sign, but because it's currently the middle of the night in Australia, we haven't heard back yet.
But if this store is actually charging people just for walking in the door, it has to be the most misguided strategy we've seen for dealing with showrooming. While it's undoubtedly frustrating to have people use your store as a showroom just so they can buy the same goods online, imposing a cover charge is hardly the ideal solution. The goal of any retailer should be to impress customers with competitive pricing and great customer service -- not treat their customers with suspicion and hostility from the moment they walk in the door.
That approach won't just keep the showroomers away, either -- it's inevitably going to turn off a lot of potential customers who had no intention of showrooming, but aren't about to step into a store that forces them to pay an entrance fee if they don't find anything they like.
It's not the first time we've seen a store take this approach. A couple of years ago, a shoe store got fed up with people who tried on their shoes and then bought them online, and decided to impose a $20 "fitting fee." In both cases, we're struggling to understand how the store would even enforce such a charge; if we hear back on how it's going, we'll let you know.
But in the meantime, this store and other retailers considering a similar scheme might instead want to explore a more consumer-friendly approach. Target and Best Buy were likewise stung by shoppers who came in, tried out their products and then went home to buy on Amazon. But instead of banning phones or trying to charge an entrance fee, they instead extended their price-matching policy to Amazon and other online retailers.
Obviously doing so might cut into those retailers' profit margins, and that will also be true for this small business owner. But if, as the sign claims, the store's prices "are almost the same as the other stores," it shouldn't be much of a problem.
Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.
When Customer Service Goes Viral: The Good and the Bad
Store Charges Browsing Customers $5 'Just Looking' Fee
In an age of social media, a story about good or bad experience with customer service is no longer confined to you and your circle of friends. A particularly egregious misstep by a call-center employee – or, for that matter, an exceptional display of customer service – has the potential to quickly go viral on social networks, bringing good or bad publicity to companies overnight. Here are a few customer service exchanges that saw widespread exposure due to the power of the internet.
When Canadian musician Dave Carroll's pricey guitar was broken during a 2008 flight on United Airlines, he made a stink with airline employees and filed a claim with the airline. When United refused to pay up, he turned to the power of music, recording a protest song entitled "United Breaks Guitars." The video exploded in popularity on YouTube, where it's grabbed more than 12.5 million views and led to widespread media attention. United quickly changed its tune in the face of overwhelming negative publicity, and Carroll went on to co-found Gripevine, a company that helps customers use social media to get better customer service.
The Ritz-Carlton is famed for its customer service – one policy allows employees to spend up to $2,000 on a single customer to ensure satisfaction. And once in a while, going above and beyond goes viral. Consider the case of Joshie, a stuffed giraffe accidentally left behind by a guest's son upon checkout. Hotel staff found the stuffed animal, then took a series of pictures of Joshie enjoying his stay at the hotel to corroborate the father's story that the giraffe was simply taking an extended vacation.
Having a PR professional handling your customer service doesn't always go smoothly. When a PlayStation controller peripheral missed its planned launch date, one customer with a pre-order contacted the manufacturer's
marketing firm to see whether he would be able to get his product by Christmas. The resulting exchange with Ocean Marketing's Paul Christoforo devolved into insults and name-calling ("Grow up you look like a complete child bro," the rep writes at one point), and quickly spread on social networks and in the video game press. The manufacturer, N-Control, soon cut ties with the marketing firm and offered a $10 discount to everyone with a pre-order, salvaging its standing among gamers.
Sir Patrick Stewart, the acclaimed actor best known for his turn as Captain Jean-Luc Picard in Star Trek: The Next Generation, just wanted Time Warner to come and hook up his cable. But after waiting 36 hours for the cable guy to show up, he fired off an angry tweet noting that the experience had caused him to "lose the will to live." Time Warner's Twitter customer service representatives quickly responded, but this particular customer's high-profile ensured that the dispute would go viral. More than 1,800 users retweeted the complaint, media outlets picked up the story, and even co-star LeVar Burton (visor-wearing engineer Geordi LaForge) chimed in to share his own gripes with the company. The lesson: Don't mess with the Enterprise.
Plenty of people find reasons to complain about shipping services during the holiday season. But it's not often that poor service is caught on film. That's what happened last Christmas season when a
Social news site Reddit is known for occasionally making life miserable for companies behaving badly – observe, for instance, the role it played in leading a boycott against web registry GoDaddy for the company's support of the controversial Stop Online Piracy Act. But some companies find their fortunes lifted by appearing on the site. One user, for instance, contacted Amazon customer service after the US Postal Service lost his package; even though Amazon wasn't at fault, it gave him a full refund of the $25 purchase. A screenshot of the exchange has more than 800,000 views – not a bad PR return for $25.