Spend threshold for B/K/C
- Thread starter Bellub
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My SA told me something similar, but more on the store level than an individual customer level. He said that corporate has a guideline that only a % of revenue from the store can come from leather. That’s why sometimes they have bags in the back, but they are not allowed to sell them because that would bring them over the leather threshold.
Interesting. Maybe that’s why my SA was hinting at only 1 QB a year.
You guys are all helping me feel better about doing the sameSame! I have a special closet that is out of the way
For what it’s worth I remember reading a RED? Instagram? post a while ago (pre pandemic even) from a supposedly former SA who said they have a % for bags among what they sell, and the % is really low, 20-25%. If you do the math, that means prespend (so to speak) to bag ratio needs to be 3:1 or 4:1. They were able to offer bags for lower ratios 1:1 because they have other clients who spend way more / buy things without bags / wait longer / etc so it works out but it was getting increasingly difficult to do that. Obviously you really can’t trust much of what you read online so take it with a grain of salt but I remember checking into that person’s account and thinking I wouldn’t be surprised if this is true.
I remember reading a post about 2021, the year US business and tourism started to be "back to normal" from COVID. The post says that by the end of September (3rd quarter), both stores in Hawaii reached their annual sales goal. So they started limiting sales (including bag sales) in October until end of that year--their top clients could of course shop "as usual", but this practice mostly affected other clients
It’s unlikely at the price point they’re charging. I personally think it’s more to control the exclusivity of the bags.
My SA quoted something like 30 or 40%. I can’t remember exactly as this conversation happened a few months ago. I shop at a US store.
It probably doesn’t even need to be a loss leader; if they have this product that everyone wants and can use it to sell other things that less people want…it’s just makes business sense to utilize that. As sad as that is…
This actually makes some sense me, to limit sales - if they blow past targets, corp may set new, much higher, possibly impossible targets for following years.
This makes sense to me. In the end, corporate cares about bottom line and growth of all categories store wide. I think it’s even good for the brand image to have some bags go to new customers without much of a profile. Its hard to resent prespend when, depending on the roll of the dice, you could be the lucky one that day.
Regarding spend in other categories...Given that Hermès just announced a new valuation milestone (passing 200B euro, #8 on the Stoxx 600) it makes sense that there would be new pressures to expand categories that are seeing growth, but not enough growth. I know that homeware is a huge part of this; one would expect RTW to be as well.
That is actually not the case, at least in my own experience. Nov-December are the peak holiday sales seasons. Last year, when I did my holiday shopping around thanksgiving, my store was well stocked with shoes, scarfs and home goods. And though competitive, I managed to get a quota bag.