Fine tuning your retail store ... 1

of 9 Copyright © Fred Steensma

The face of retailing began to change in the 70s and this change acceleratedthrough the 80s and 90s.

Today, early in the 21st century, retailing is a science ... not something to dowhile you’re waiting for other opportunities to arise.

Now, if you think the changes to date have been “mind boggling”, just waituntil you begin to experience the full impact of this new millennium.

Only those who really know what they are doing will make money.

Your survival through the next decade will largely depend on how you elect tocope with the changing circumstances and, specifically, how you chose to dealwith the impact of the Internet on retailing.

If you decide to adopt the “she’ll be right attitude” ... give it away right now,and save yourself a “bundle” ... because you won’t make it!

If you are deadly keen about making a career in retailing, surviving the nextdecade and making money to boot, you will need to be businesslike, street-smart, market oriented and customer centred.

BusinesslikeRetailing is a business (not a hobby). You open the doors every morning tomake money. By all means enjoy the day ... enjoy demonstrating the products... but never lose sight of the fact that you're there to do business and makemoney.

You need to have plans, goals, budgets, staff, stock, premises, attractive storelayouts, security systems, etc, etc, etc.

You need to understand and practice the basics of business ... you need toknow what makes your business “tick”.

Street SmartYour business does not operate in a vacuum. You have competitors, bothdirect and indirect. Everybody today is competing for a dwindling number ofdollars.

It is possible for you to lose a potential sale of a computer to therefrigerator salesman, simply because you didn't properly sell the "missus"on the benefits ... after all, the couple only had enough money to purchaseone item!

SPECIALACTIONREPORT

A complimentary reportprovided by an

independent BBG…

Business DevelopmentSpecialist

Our purpose:To provide practicalbusiness information

that works…Guaranteed!

In particular how to:

Increase Sales Reduce Costs Improve Productivity

Better Business Group Ltd

Serving Australian andNew Zealand Business.

U5, 51 Perry StreetBundaberg, Qld 4670Phone: 1300 711 743

Phone: +61 412 667 559Fax : +617 3036 6174

Email:[email protected]

BBG New Zealand

1329 Akatarawa RoadUpper Hutt 5372.

New ZealandPhone: +64 4 5266880Fax: +64 4 5264024

Email:[email protected]

Presented By:

Fine Tuning Your Retail Store ForBIGGER PROFITS

In The First Decade Of The New Millennium

mailto:[email protected]


Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium

of 9 Better Business Group Ltd Copyright © Fred SteensmaAustralia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: [email protected]

New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: [email protected]

The street-smart retailer wins more than his fair share.

Street-smart retailers know what is happening around them and how it will impact on theircash register. They constantly alter their approach to retailing as they monitor the eventsaround them in much the same way as a skipper of a yacht constantly trims the sails to makethe best of the prevailing winds.

Market OrientedNothing happens until you make a sale. You know that!

Retailing is one business where the customer traditionally comes to you. Will this changeover the next decade?

The street smart, market-oriented retailers are already practising ways of going out to thecustomer.

Direct mailers, catalogues, coupons, telemarketing, special promotions, networking and partyplans are just a few of the techniques with which they are experimenting.

Will they make the sale while you just sit behind the counter waiting ... and waiting ... andwaiting?

Customer CentredOn average, you will lose approximately 15% of your customers each year through naturalattrition ... death, moving address, etc.

Two other worrying factors have emerged for retailers:Customer loyalty is not as strong as it used to be.Customers are more mobile, better educated about, and more aware of, their buyingalternatives.

Thus, complacent retailers in the new millennium will quickly see their customer base eroded.So, to survive the new millennium you need to be customer centred.

You need to “love” your existing customers ... you need to be constantly on the lookout fornew customers.

All of this requires a cohesive marketing plan and a super-strong employee training programto ensure that the customer is recognised as the “King”.

The early warning signs that you may not be coping with retailing are:

A blood pressure reading gives medical specialists some insight into the future well-being ofa patient. It is a monitor of health. Likewise, the following are “bell weather” warnings thatyour retail business is not performing well and needs to be seriously examined:






There have been significant changes in the demand for your goods and services

Monitoring devices:Daily customer countsAverage sales per customerSlow-moving stockSales by product groupInformed discussion with suppliers and other shop owners.

You are experiencing severe cash flow shortages

Monitoring devices:Bank balancesLevels of stock, creditors and debtorsMost importantly, try to find the reasons for the cash flow shortages.

Increased activity from your competitors

Monitoring devices:Old-fashioned “espionage”. What are they up to? Visit their shop, speak to theiremployees, speak to their suppliers. Learn to second guess their next moves.

Falling employee moraleThis is perhaps the best barometer of them all.

Monitoring devices:The powers of observationAsk employees for their input

Changes in suppliers’ attitudes

They won’t persist with losers.... nor with those who continually ignore their marketingadvice. Seek their help as much as possible. They can share the experiences of other retailersand the results of their many thousands of dollars invested in marketing know-how. Don’tyou be the one to try to re-invent the wheel.

Increases in customer complaints

Customer complaints must be treated seriously. They are indicators that you are not pleasingthe one person who pays the bills. Don’t forget “passive” complainants either. They’re theones who vote with their feet and never come back to your store ... and they won’t tell youeither ... they just “fade” away.

The following is a small selection of questions designed to be thought provokers. The list isby no means exhaustive, merely an introduction to the kind of scrutiny you will need to putyourself (and your business) through if you intend to survive and thrive.






Answer the questions honestly. If any apply to you, take note … the warning bell hassounded. It’s up to you to instigate some immediate changes.

True PartiallyTrue

False

SelfI don’t believe I can influence the future direction ofmy businessI know I should have personal and business plans inplace, but I don’tI don’t bother to seek advice ... after all, I’ve been inthis business a long timeI don’t spend as much time with my family andfriends as I shouldI could get more done in the day if I didn’t haveinterruptionsI haven’t yet trained anybody to manage the store inmy absenceI don’t really enjoy my business anymoreI could be more effective if I was in better physicalshapeI am working too many hoursMy wife and family resent my businessI occasionally set the standards for the shop by beingseen to do menial functions, then everyone knowsthey are to be done by anyone

PersonnelI am the person in charge, I don’t need to sellI am unable to find good staffI don't conduct staff training sessions or staffmeetingsMy staff haven't been given written job descriptions

Trying to define and measure the result of eachemployee would be a waste of timeMy staff know they’re good, so I don’t need to tellthemMy staff have not been trained in the techniques ofsellingThe quality of service falls when I am absentI don't believe in staff reward systemsMy staff are rewarded for extra effortMy staff know how to merchandiseMy staff are well-trained salespeopleMy staff know all policies and proceduresMy staff know how to act and always act on mybehalf if I am unavailable






True PartiallyTrue

False

My staff regularly give me ideas on how to improveMy staff want our business to succeedMy staff are looking at our competitors

CustomersWe don’t use customer complaints as a means ofimproving the businessWe don’t bother with special promotions just for ourregular customers (or some other function to makethem feel special)Our average sale per customer is decreasingI wouldn’t have a clue what our average sale percustomer isWe don’t bother to record the names and addresses ofour new customersWe don’t bother with a regular customer newsletteror bulletinWe are losing business because of inadequate followup of existing customersMy customers know what they want, I don’t need toshow themI don’t advertiseI advertise and no customers come inMy store is merchandised for my target andsecondary customersMy customers tell other people about me and mybusiness and generate extra business for meI don’t know if my customers are complaining - theydon’t tell me

FinancesThere has been a downward trend in our businessover the last twelve monthsWe currently have cash flow problemsI don't have a very good credit rating ... nor does thebusinessThe amount of debt that the business is carrying is aproblem or a potential problemWe don't have emergency lines of credit in placeWe try and avoid the bank manager ... because hemight ask us how we are goingI don’t bother with financial figures






True PartiallyTrue

False

I don’t really understand such terms as:average mark upaverage stock turnbreak even sales figureaverage weekly overhead expenses

Our books and records are not up to dateOur tax payments are usually on the late sideI accept most forms of credit cardsI have a cheque policy in place

MarketingWe don’t keep a record of our marketing effortsWe don’t keep a record of the marketing efforts ofour competitorsWe don’t bother with surveys or market researchbefore going after new business ... we just do it andhope it worksOur marketing campaigns and promotional materialsdon't produce repeat businessI don't bother to read newsletters, magazines andjournals on new marketing ideas

We don’t bother about getting free PR exposureWe don’t bother with asking staff or customers tovolunteer their suggestionsWe never hold special meetings or ask for help onhow we can increase business to our existingcustomers and to find new customersThe newspapers or radio stations do my advertisingfor meI regularly do a catchment of potential customersI regularly look at the postcode of my customersI look for trends and capitalise on themI do the marketing without any outside influenceWe don’t get our best clients’ phone numbersI don’t ask for referrals

Product and PremisesThe shelves of our store are looking a little tired andemptyIt's ages since we altered the layout of the storeNobody has ever told me that shopping in my store isexciting






True PartiallyTrue

False

Presently, the external and/or internal presentation ofmy store is looking a little tired or tattyI keep my excess stock in the store room notmerchandised on the shop floorI keep my signs lit at night, until passing trafficdissipatesI know every product has an add-on and what it isMy staff know every product has an add-on and whatit isI order replacement stockI regularly clear dead lines at cost to free up cashflowI develop a relationship with the staff of my suppliersto get an advantage when special deals are availableor extra service is requiredI look at increasing my range of products to copewith the changing face of retailI regularly drop lines that no longer sellMy premises say “WELCOME” to anyone whowalks in the doorI use point-of-sale material in my storeI keep point-of-sale material up to dateI make my business easy to deal with

55 Power Principles To Help Your Store Make More Money

This information has been designed for you to better understand the strengths and weaknessesof your business strategy. In order to improve business, you have to find out what is missing,and what can be added to improve your effectiveness. With careful planning, you can lookwithin your business to find new ways to enhance sales and to improve customer service,operational procedures, and your overall marketing position.

Here’s a comprehensive list of practical ideas, methods, tips, and techniques to set yourbusiness apart from the competition and make it more productive, efficient and much moreprofitable:

CUSTOMER ANALYSIS:

1. Find out who your customers are and what they are seeking.2. Profile your customers by age, income, occupation, etc.3. Know the reasons why customers shop at your store? (service, convenience,

dependability, quality, promptness, or competence, etc.)4. Understand the market forces affecting the consumer's attitude when it comes to price and

what they expect to pay.






5. Emphasise areas of appeal, such as special sizes, lower prices, better service, widerselection, good location, or convenient hours.

6. Offer unique products at prices your customers can well afford.7. Have a tracking system for how many customers shop at your store every day.8. Seek suggestions from your best customers on ways you can boost business.9. Try to re-establish lost or inactive customers.10.Use a store questionnaire to aid you in determining customers’ needs.11.Plan on making any changes to satisfy the new value-conscious consumer.

CUSTOMER RELATIONS:

12. Improve your return policies.13. Make it a policy to give cash refunds when requested by the customer.14. Offer customers a “no-hassle” satisfaction guarantee.15. Use a suggestion box and customer want slips.16. Extend your store hours.17. Accept a wide range of credit cards.

18.Analyse complaints and take action to prevent recurrence.19. Train employees to deal with customers in a professional manner.20. Call customers to let them know when new items have arrived.21. Have lots of convenient parking for customers.22. Have a clean bathroom available for customers.23. Grade your store's location every year in regard to accessibility.24. Create a system to let customers know how much you appreciate their business.

MANAGEMENT SKILLS:

25. Use advertising techniques to create urgency and to motivate customers to buy NOW!26. Test different aspects for promoting business: new offers … new items … new prices …

special announcements … stronger ads … and better headlines.27. Know what type of advertising methods work best to attract customers (direct mail,

newspaper, television, radio).28. Use memorable advertising that sets your business apart from the competition.29. Create new opportunities for customers to purchase more frequently from your store.30. Implement proven business formulas of other successful retail firms.31. Replace outdated methods with new techniques and better resources for retailing in today's

high-tech, fast-moving, and competitive marketplace.32. Set up an inventory control system in regard to shrinkage, performance, amount of

merchandise, mark-up, profit, and turnover.33. Determine whether to price certain items below, at, or above the market.34. Utilise a system for tracking slow-moving merchandise and those products that are your

best-sellers.35. Use different ways to arrange and display merchandise that will make it easier for

customers to buy.36. Know your average sales transaction and what you can do to increase it.






37. Increase your sales transactions by offering better prices, more value, sales incentives, oradd-ons.

38. Know which products are price-sensitive to your customers … that is, when a slightincrease in price will lead to a drop-off in demand.

39. Know the maximum price customers are willing to pay for certain items.40. Computerise your business to help streamline everyday tasks, such as inventory control,

point of sale, and overall business analysis.41.Evaluate the amount of inventory you carry and fine tune your operating expense ratios on

a regular basis.42. Buy distinctive merchandise that fits into a niche your competitors don't have.

INSIGHTS FOR A SKILLED MARKETER:

43. Attend trade shows that provide the latest technology, inventory systems, educationalseminars, and other industry-related resources.

44. Use newsletters as a “marketing tool” to remind customers of the products or services youprovide.

45. Create a budget for both regular and off-price merchandise, and know what role theyshould play in your buying strategy.

46. Establish dependable resources where you can buy current, name brand and designermerchandise below wholesale prices.

47. Make an effort to buy promotional and off-price merchandise to improve your profitmargin.

48. Buy private-label merchandise to avoid the same-line prices of your direct competition.49. Join other stores like yours in area-wide buying programs to receive better prices or trade

discounts.50. Do cross-marketing by joining forces with restaurants, clubs, or whatever to jointly

develop special promotions.51. Join trade associations and subscribe to newsletters and trade publications to keep you

informed.52. Involve employees in making suggestions for improving business and cutting costs.53. Implement a program to reward employees for their extra efforts and innovative ideas.54. Empower employees to make important decisions, even if it means losing a small amount

of money to make your customers happy.55. Don’t let emotions get in the way of making sound business decisions.

SUMMARY: Your business can’t survive without customers!

To succeed and prosper, you must learn effective procedures and become an expert in yourarea. The key is to control your expenses, refrain from overbuying, re direct your open-to-buyonly to profitable resources, and develop a better strategy.

The success of your business will be in direct proportion to your insights and managementskills. The bottom line is this: If you don’t do an exceptional job of training employees andmotivating customers to take action or don’t do the strongest job to sell them once you havetheir attention, you are cheating your company of profits.



Fine tuning your retail store ... 1

Business

Transcript of Fine tuning your retail store ... 1