Price Isn’t the Primary Loyalty Factor

I just bought a new chair. It was time. The last time I bought a chair I was pregnant with my first born. That’s him sitting in the new chair. He’s 19.

I went to Levin because they had a 50% off sale and if you purchased on the weekend, it was free delivery. I’ve bought furniture there before – a dining room set, some end tables, and I’ve been happy with the purchase.

So I’m returning because I:

• Liked my past experiences
• Felt good about the value
• Liked the quality of the product

Did you hear me mention price?  Me neither.  I will say that the current offer was what brought me to the store but other furniture places have offers every week.

Chuck helped me.  I told him what I wanted and he showed me some choices.  I was on my way to dinner so I left but went back on the weekend to take advantage of the free shipping.  I asked for Chuck and he remembered me.  I had made up my mind before entering the store so we quickly went to the purchase portion of our relationship.

He and I hadn’t talked price.  No reason to – the price was on the chair.  The full price and the sale price.  I was pleased with the price. So much so that I also planned to buy the ottoman.

He enters the information in the computer and informs me that he’s further reduced the price of the chair by $35 and the ottoman by $30.  $65!  That I didn’t ask for. 

He also reduced the price of the scotch protection plan by more than 25%. 

Why?

Don’t get me wrong – I’m thrilled with the unexpected cash that remains in my checking account but why reduce the price if price was never an issue? 

Chuck didn’t know me from Adam.  I was a pretty easy going customer.  I did say that I wanted to remain within a budget but there were lots of chairs to choose from in that price point.  I have to believe he cut his commission or else the margins are unbelievable.

His generous price discounting has served to bring questions to my mind rather than create loyalty. 

• Just what are the margins?
• Is the quality poor – have I bought something inferior?
• Did he lose personal income on my transaction?
• Was the chair last year’s model and he’s happy to get rid of it?

Why do we believe we have to be the cheapest to win friends and influence people?  I don’t have any answers here – I’m looking for a discussion from you. Has this happened that you go to make a purchase – fully aware of the price – and all of a sudden find out that the price is even less?  How did it make you feel?

Lucky.  Happy.  Sure, me too.  But didn’t it also make you feel a little curious?  Did it build loyalty?