Musings from Dennis #279. Years before I entered the retail industry, I read a fascinating article in Reader’s Digest (no longer in print, but still available digitally). It explored how retailers subtly incentivize - or disincentivize - purchases at the point of sale, and it completely changed how I viewed shopping.
The article unpacked the psychology of selling: how
the right cues can create the perfect storm for customers to part with their
wallets. One classic example was pricing - an item tagged at $1.99 instead of
$2.00 makes the brain register it as “just a dollar,” even though it clearly
isn’t.
It also highlighted what not to do. For
instance, avoid placing products that require time to browse or try on (ties,
belts, costume jewellery, etc.) right at the store entrance. Why? Because
customers standing there are constantly interrupted by foot traffic behind
them, creating distraction and discomfort - and they’ll often move on without
buying.
Another key insight: customers rarely stop to make
purchase decisions at the entrance. Most walk in, proceed toward the middle
of the store, slow down, and then begin to browse.
I put these lessons into practice in the late 1990s, when a
Singapore department store offered us a 200‑square‑foot space for our Mickey
for Kids counter - right at the front entrance. I declined and negotiated
instead for a location slightly further in, but still within the direct line of
sight as customers entered.
We secured that space. When the store opened, I stood back
and watched the foot traffic. Sure enough, the theory played out perfectly. Customers
walked past the front counter… and stopped right near us.
Sometimes, those early lessons in sales psychology stay with
you—and prove their value years later, in the real world.
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| This was the Mickey for Kids corner located at OG Great World City in the late 90's (the corner, the brand and the department store are non-existent today) |