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* Do you train your employees to service and work with customers in a professional manner? * Do you have a program to reward your employees for their extra efforts and innovative ideas? * Do you empower employees to make important decisions, even if it means losing money?
8. Develop A Distinctive Image Your image is important and links all
areas of your business together. It is reality of your customers' perception of your store name, location, appearance, building, landscaping, entrance, floors, doors, counters, dressing rooms, rest rooms, products, prices, visual merchandising, signs, window displays, business cards, invoices, newsletters, advertising material, customer service, and anything else that relates to your business. Right or wrong, your image can be a "make it or break it" situation. * Is your business unique and does your merchandise fit into a niche that competitors don't have? * Do you use newsletters to remind customers of products or services you provide? * Do you implement proven concepts and formulas of other successful retail firms? * Do you grade your store's location every year in regards to appearance and accessibility?
9. Control Your Inventory The function of your inventory is to generate sales. All retail stores need to manage inventory. It is your money sitting on a shelf and represents a large portion of your business investment.
The small retailer who merely watches store's shelves can't maintain a proper balance between right amount of merchandise and probable customer demand. That retailer's buying and selling will suffer through lack of information concerning color, size, trends, and customer preferences. Without adequate control, slow-moving inventory becomes dated, shopworn, damaged, and very costly. Do you evaluate amount of inventory you carry, and fine tune your operating expense ratios on a regular basis? Generally, inventory control can be summarized as follows: * Matching stock on hand with customers needs * Controlling investment in inventory * Minimizing markdowns * Controlling shortages * Improving purchasing procedures
10. Buy and Price For Profit To fully understand nature of retailing, one must start with concept that original price of your merchandise is nothing more than a temporary estimate of what customer is willing to spend. Most stores use a "keystone" markup that applies to their product or service. What they lack is a pricing strategy based on an item-by-item calculation for regular, promotional, and off-price merchandise...
To boost sales, retailers must focus on items, price, and efficiency and by countering with lots of store celebrations, glamour and fun. To become more competitive, attend trade shows, join buying groups, and seek out manufacturer discounts that allow you to purchase merchandise at below wholesale prices.
By offering new price-conscious consumer better values, you'll be able to: attract more customers, improve your average sales transaction and offer customers more opportunities to visits your store. * Do you test different aspects for promoting business: -- new offers -- new items -- new prices? * Do you identify different vendor performance, mark-up, and turnover? * Do you use a system for tracking those products that are your best-sellers? * Have you tried to increase sales by offering better prices, more value, or add-ons?
11. Learn From The Pros It takes experience to master skills of running a successful business. First, you must learn How, Who, What, Where, and When. How Much and How often do you need to advertise to profitably promote your business. How to quickly manage and adjust to ups and downs of seasonal profit cycles of your business which include: inventory, overbuying, markdowns, turnover, timing, deliveries, expenses, and projected sales.
It's your money, so with expert planning and follow-through, you will be able to insure bigger sales and higher profits. A smart approach that maximizes your overall business and financial performance, while minimizing time, effort, and risk. 12. Ask For Help When You Need It Remember, getting results is what counts! With outside advice and assistance, your quest for a major process of improvement can get a major jump start. Don't be too proud to ask for help, we all need help sometimes.
It is important to recognize -- what you don't know can end up costing you money, and greatly reduce chance of reaching your long-term goal. And most important, you'll have all tools you need to achieve a high level of success. ..................................................................................
POWER Retailing, a retail-consulting firm based in Phoenix, Arizona. The company works with retailers to develop marketing strategies and promotional plans to quickly strengthen their cash flow and financial position. POWER Retailing, Inc. 1859 E. South Fork Drive, Phoenix, AZ 85048 (602) 460-1980. The Internet address is: http://www.retailing.com
As a former store owner, Bob Nelson understands the problems faced by those struggling to operate profitable retail operations. With a keen understanding of the many challenges, he is qualified to give definite and practical answers to specific operating questions. He turns his attention to the bottom line and offers workable solutions, not just advice. And perhaps most importantly, how to adopt new strategies to gain the greatest competitive edge and a wonderful peace of mind.
