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Fine Tuning Your Retail Store

Fine Tuning Your Retail Store

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    Fine tuning your retail store ... 1 Fine tuning your retail store ... 1 Document Transcript

    • SPECIAL Fine Tuning Your Retail Store For ACTION BIGGER PROFITS REPORT In The First Decade Of The New Millennium The face of retailing began to change in the 70s and this change accelerated through the 80s and 90s.A complimentary report provided by an Today, early in the 21 st century, retailing is a science ... not something to do independent BBG… while you’re waiting for other opportunities to arise.Business Development Specialist Now, if you think the changes to date have been “mind boggling”, just wait until you begin to experience the full impact of this new millennium. Our purpose: Only those who really know what they are doing will make money.To provide practicalbusiness information that works… Your survival through the next decade will largely depend on how you elect to Guaranteed! cope with the changing circumstances and, specifically, how you chose to deal with the impact of the Internet on retailing.In particular how to: If you decide to adopt the “she’ll be right attitude” ... give it away right now, Increase Sales Reduce Costs and save yourself a “bundle” ... because you won’t make it! Improve Productivity If you are deadly keen about making a career in retailing, surviving the next Better Business decade and making money to boot, you will need to be businesslike, street- Group Ltd smart, market oriented and customer centred.Serving Australian andNew Zealand Business. Businesslike U5, 51 Perry Street Retailing is a business (not a hobby). You open the doors every morning to Bundaberg, Qld 4670 make money. By all means enjoy the day ... enjoy demonstrating the products Phone: 1300 711 743 ... but never lose sight of the fact that youre there to do business and makePhone: +61 412 667 559 money. Fax : +617 3036 6174 Email:bbgau@betterbusinessgroup.biz You need to have plans, goals, budgets, staff, stock, premises, attractive store layouts, security systems, etc, etc, etc. BBG New Zealand 1329 Akatarawa Road You need to understand and practice the basics of business ... you need to Upper Hutt 5372. know what makes your business “tick”. New Zealand Phone: +64 4 5266880 Fax: +64 4 5264024 Street Smart Email: Your business does not operate in a vacuum. You have competitors, bothbbgnz@betterbusinessgroup.biz direct and indirect. Everybody today is competing for a dwindling number of Presented By: dollars. It is possible for you to lose a potential sale of a computer to the refrigerator salesman, simply because you didnt properly sell the "missus" on the benefits ... after all, the couple only had enough money to purchase one item! Page 1 of 9 Copyright © Fred Steensma
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New MillenniumThe 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 buying alternatives.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:Page 2 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New MillenniumThere have been significant changes in the demand for your goods and servicesMonitoring devices: Daily customer counts Average sales per customer Slow-moving stock Sales by product group Informed discussion with suppliers and other shop owners.You are experiencing severe cash flow shortagesMonitoring devices: Bank balances Levels of stock, creditors and debtors Most importantly, try to find the reasons for the cash flow shortages.Increased activity from your competitorsMonitoring devices: Old-fashioned “espionage”. What are they up to? Visit their shop, speak to their employees, 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 observation Ask employees for their inputChanges in suppliers’ attitudesThey 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 complaintsCustomer 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.Page 3 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New MillenniumAnswer 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 Partially False TrueSelf I don’t believe I can influence the future direction of my business I know I should have personal and business plans in place, but I don’t I don’t bother to seek advice ... after all, I’ve been in this business a long time I don’t spend as much time with my family and friends as I should I could get more done in the day if I didn’t have interruptions I haven’t yet trained anybody to manage the store in my absence I don’t really enjoy my business anymore I could be more effective if I was in better physical shape I am working too many hours My wife and family resent my business I occasionally set the standards for the shop by being seen to do menial functions, then everyone knows they are to be done by anyonePersonnel I am the person in charge, I don’t need to sell I am unable to find good staff I dont conduct staff training sessions or staff meetings My staff havent been given written job descriptions Trying to define and measure the result of each employee would be a waste of time My staff know they’re good, so I don’t need to tell them My staff have not been trained in the techniques of selling The quality of service falls when I am absent I dont believe in staff reward systems My staff are rewarded for extra effort My staff know how to merchandise My staff are well-trained salespeople My staff know all policies and procedures My staff know how to act and always act on my behalf if I am unavailablePage 4 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium True Partially False True My staff regularly give me ideas on how to improve My staff want our business to succeed My staff are looking at our competitorsCustomers We don’t use customer complaints as a means of improving the business We don’t bother with special promotions just for our regular customers (or some other function to make them feel special) Our average sale per customer is decreasing I wouldn’t have a clue what our average sale per customer is We don’t bother to record the names and addresses of our new customers We don’t bother with a regular customer newsletter or bulletin We are losing business because of inadequate follow up of existing customers My customers know what they want, I don’t need to show them I don’t advertise I advertise and no customers come in My store is merchandised for my target and secondary customers My customers tell other people about me and my business and generate extra business for me I don’t know if my customers are complaining - they don’t tell meFinances There has been a downward trend in our business over the last twelve months We currently have cash flow problems I dont have a very good credit rating ... nor does the business The amount of debt that the business is carrying is a problem or a potential problem We dont have emergency lines of credit in place We try and avoid the bank manager ... because he might ask us how we are going I don’t bother with financial figuresPage 5 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium True Partially False True I don’t really understand such terms as: average mark up average stock turn break even sales figure average weekly overhead expenses Our books and records are not up to date Our tax payments are usually on the late side I accept most forms of credit cards I have a cheque policy in placeMarketing We don’t keep a record of our marketing efforts We don’t keep a record of the marketing efforts of our competitors We don’t bother with surveys or market research before going after new business ... we just do it and hope it works Our marketing campaigns and promotional materials dont produce repeat business I dont bother to read newsletters, magazines and journals on new marketing ideas We don’t bother about getting free PR exposure We don’t bother with asking staff or customers to volunteer their suggestions We never hold special meetings or ask for help on how we can increase business to our existing customers and to find new customers The newspapers or radio stations do my advertising for me I regularly do a catchment of potential customers I regularly look at the postcode of my customers I look for trends and capitalise on them I do the marketing without any outside influence We don’t get our best clients’ phone numbers I don’t ask for referralsProduct and Premises The shelves of our store are looking a little tired and empty Its ages since we altered the layout of the store Nobody has ever told me that shopping in my store is excitingPage 6 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium True Partially False True Presently, the external and/or internal presentation of my store is looking a little tired or tatty I keep my excess stock in the store room not merchandised on the shop floor I keep my signs lit at night, until passing traffic dissipates I know every product has an add-on and what it is My staff know every product has an add-on and what it is I order replacement stock I regularly clear dead lines at cost to free up cash flow I develop a relationship with the staff of my suppliers to get an advantage when special deals are available or extra service is required I look at increasing my range of products to cope with the changing face of retail I regularly drop lines that no longer sell My premises say “WELCOME” to anyone who walks in the door I use point-of-sale material in my store I keep point-of-sale material up to date I make my business easy to deal with55 Power Principles To Help Your Store Make More MoneyThis 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 consumers attitude when it comes to price and what they expect to pay.Page 7 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium5. Emphasise areas of appeal, such as special sizes, lower prices, better service, wider selection, 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 stores 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 todays 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.Page 8 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz
    • Fine Tuning Your Retail Store For BIGGER PROFITS In The First Decade Of The New Millennium37. Increase your sales transactions by offering better prices, more value, sales incentives, or add-ons.38. Know which products are price-sensitive to your customers … that is, when a slight increase 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 dont have.INSIGHTS FOR A SKILLED MARKETER:43. Attend trade shows that provide the latest technology, inventory systems, educational seminars, and other industry-related resources.44. Use newsletters as a “marketing tool” to remind customers of the products or services you provide.45. Create a budget for both regular and off-price merchandise, and know what role they should play in your buying strategy.46. Establish dependable resources where you can buy current, name brand and designer merchandise below wholesale prices.47. Make an effort to buy promotional and off-price merchandise to improve your profit margin.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.Page 9 of 9 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: bbgau@betterbusinessgroup.biz New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz