The Rise of the “Consultation Fee”: Are Retailers Redefining Customer Service?
For many shop owners, it’s a familiar frustration: customers monopolize their time, thoroughly test products, and then purchase them online at a lower price. This practice, often called “showrooming,” is prompting some retailers to fight back, and a growing trend is emerging – the consultation fee.
Schulranzen Kranz Takes a Stand Against “Consultation Theft”
Schulranzen Kranz, a family-owned business with locations in Bochum and Hagen, Germany, is at the forefront of this shift. Owner Stefanie Kranz recently implemented a €25 (approximately $27 USD) consultation fee for in-store advice. However, this fee is fully refunded if the customer ultimately purchases the item from their store. “We had customers consult with us for an hour and then simultaneously search for cheaper backpacks online. We were simply outraged!” Kranz explained to WDR.
Why the Change? The Cost of Expertise
The core issue is the value of expertise. A detailed consultation for a product like a school backpack can capture 45 to 60 minutes, requiring significant staff time and knowledge. Retailers argue that providing this service comes at a cost, and it’s unfair to have customers benefit from that expertise without any commitment to purchase.
Is This a Growing Trend? The German Example
Although not yet widespread, the practice of charging for consultations is gaining traction, particularly in Germany. Barbara Wolkenhauer, Managing Director of the NRW Westfalen-Münsterland trade association, notes that whether or not to implement such fees is an individual decision for each retailer, dependent on various factors. The trend appears to be driven by industries where personalized advice is crucial, and the price difference online is significant.
The “Showrooming” Problem: A Global Challenge
This isn’t just a German issue. “Showrooming” is a global phenomenon. Consumers often apply brick-and-mortar stores as showrooms, leveraging the in-person experience to inform online purchases. This impacts retailers’ profitability and raises questions about the future of customer service.
The Impact on Retailers
The impact of showrooming is substantial. Retailers invest in knowledgeable staff, attractive displays, and a comfortable shopping environment. When customers use these resources solely to produce a purchase elsewhere, it undermines the retailer’s business model.
What Does the Future Hold for Retail Consultation?
Several potential scenarios could unfold:
- Wider Adoption of Consultation Fees: More retailers, particularly those offering high-value or complex products, may adopt similar fee structures.
- Tiered Service Models: Retailers might offer different levels of service, with a basic free consultation and a premium, paid consultation for more in-depth assistance.
- Enhanced In-Store Experiences: Retailers could focus on creating unique in-store experiences that cannot be replicated online, such as workshops, personalized styling sessions, or exclusive product offerings.
- Technology Integration: Retailers may leverage technology, like augmented reality or virtual reality, to provide interactive product demonstrations and personalized recommendations, reducing the require for extensive one-on-one consultations.
FAQ
Q: What is “showrooming”?
A: Showrooming is the practice of examining products in a physical store and then purchasing them online, often at a lower price.
Q: Is it legal to charge for consultations?
A: Yes, it is generally legal, but retailers must be transparent about the fee and clearly communicate the terms to customers.
Q: Will consultation fees deter customers?
A: It’s possible. However, retailers believe the fees will deter those who are not genuinely interested in purchasing and will encourage serious buyers to commit.
Q: What is the Handelsverband NRW?
A: Handelsverband NRW is the trade association for North Rhine-Westphalia, Germany.
Did you know? Approximately one-third of German consumers admit to using in-store service solely to inform online purchases.
Pro Tip: If you value personalized advice, be upfront with the retailer about your intentions. If you’re unsure about making a purchase, consider doing some preliminary research online before visiting the store.
What are your thoughts on consultation fees? Share your opinion in the comments below!
