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While walking through the store last week, I stopped at a couple that were looking at office supplies. Young couple, probably in their mid-twenties or late twenties.  Jake, I will call him, was wondering where the computers were. Now Jake was quite a site. Well worn jeans, plenty of ventilation, and I don’t think they had ever been introduced to Tide detergent. The holey t-shirt that Jake was wearing had a beer logo on it, and Jake not only needed a shave but a shower. Now I don’t consider myself a prude ( I don’t even like to use the word “prude”) but I have seen auto mechanics come home at the end of the day looking cleaner than Jake. Don’t get me started on the young lady.

Jake asked me about the computers in general and I began my discovery questions so I could best find the computer that would fit his needs. Through my questioning, I discovered that this man, looking like he just came out of a coal mine, was going to open up his new computer repair business.  Now through my questioning, I discovered that this idea of his was something he wanted to do for a while, but I got the feeling that he was not as qualified as he thought he was. That is beside the point.

 You are your business. As soon as Jake told me he was opening his own computer repair business I had decided that I was never going to take my computer to him. Not because of his knowledge or lack of, not because of his location, not because of his political views. Not because my computer was not in need of repair.  Jake looked like a person that I would not want to even touch my computer, much less work on it.

 You never get a second chance to make a first impression.

 How do you project yourself? The way you project yourself projects your business. I wrote a few months back about a convenience store that I was in and the male employees were dressed in cargo shorts, non- matching t-shirts and ball caps turned backwards. How does this project your business? If you have a store or provide a service that is catered to the young, maybe this is the way to be. It depends on who your shoppers are. Who is Jake catering to?

 You are your business, even when you are not at your business. When people associate you with your business, make sure it’s a positive association.

When starting your retail business, promoting the business is one of the first and most important things to consider. Where and what to use to promote your business is the first thing to consider, but what is going to be your “style“?

Where and what to use to promote I covered in a post a few months back and I will talk more about it in the future. But what do I mean by “style“?  Are you going to promote your business with ads featuring coupons, sale prices, gimmicks, give-aways, ect? That is a great way of driving traffic into your store for the short term, but unless you have your vendor partners helping out with cost concessions, this will hurt your gross margin and ultimately your profit. So not only will you spend more money for ads and promotional material, you lose gross margin dollars on the promoted items. Don’t be afraid to ask your vendor partners for promotional prices for merchandise in exchange for promoting those items in your advertising. Most will be willing to help out.

Or if you sell basic goods or services, will you stick to a EDLP, or Every Day Low Price strategy? Good prices sell merchandise without having to promote as much. This has been WalMart’s strategy since day one and last time I looked, it was working out pretty well for them. Don’t get me wrong, every new business needs to promote heavily at the start, but with the EDLP strategy your low prices should bring the customers in over the long term. You better hope so because your business will need to create “velocity” in order to maintain gross margin dollars.

Finally, this is the point I’m trying to make. It is much easier to go from a EDLP business to a gimmick business than from a gimmick to EDLP. Most of you heard about J. C. Penny trying to go from gimmick to EDLP, mostly because of competition from Kohl’s. They claimed to lower their prices and not have coupons and/or % off merchandise. Why wait for a sale?  This proved to be a disaster for Penny’s and all the loyal customers that they had gimmicked for decades. K-Mart tried to do the same thing in the early 2000″s and it and other things drove them to bankruptcy. Having gimmicks with big and many sale prices is fine but to get out of that mode is VERY difficult. If you start hearing a lot of customers saying “I’ll wait until it goes on sale?” or “When is it going on sale?”  you might have gone over the edge. If you have to scale back, do it GRADULY. Neither Penny’s or Kmart did that and they paid the price.

You’ve heard this phrase before, right? The customer is always right. I don’t know who the first person was that uttered this phrase but he (or she) was very wise. I’ve heard that it was J. C. Penny himself.

Those of you that have been in the retail business for any length of time have run into customers that, lets say, rub us the wrong way. Any one of you could tell stories of the unruly or rude or obnoxious customer that comes into your store. Some could tell stories for quite some time. Why?

Why is it that we remember the bad customers easier than the good ones? Is it because there are more of the bad ones? No. Could we tell as many stories about good customers? Probably not and that’s a shame.

The truth is we have way more good customers in our stores than bad ones. I think anyone that has been in retail would agree. But do we run our business based on our times with the bad ones or based on the good ones? How’s your refund policy? I see many stores that have signs posted on their cash registers or on the check out counters that say in bold print, “All sales final” or “No Refunds”. Is this because of a bad customer experience? If not, why don’t you stand behind your service and merchandise? A good return policy is a key factor as to why a customer shops at your store.  I will get into this more at a later date.

The point here is I am not a 100% believer in the “customer is always right” rule. I am a 99.99% believer though. Being in retail management as long as I have, there has been people that have tried to take advantage of their standing as a customer in my store. They are few and far between. Many more times I have taken care of customers that have abused products or services that I have performed. This is the way I look at it: these customers should go out my door happy. If they leave happy, there is a good chance they will come back and spend more money. If they don’t leave happy, they will never come back. Now some of you may say “Good riddance”, but how many other people will that customer tell of their experiences and will that customers experience keep those money spending potential customers away?

Remember, every customer is a good customer and treat them like guests in your home.

I wanted to take just a minute to thank those of you that have responded back to yourtownretail.com with your comments and thank us for our content on this site. These comments inspire us and make it easier to sit down and write about the small town retail business. This site was designed to help out small retail businesses that have questions, problems or issues. We really try to keep it simple and direct because we feel that retail should be simple.

Retail is buying merchandise and selling it at a profit.

Everything else just complicates it. And when it gets complicated, you tend to lose focus on what retail really is.

We encourage questions sent to us about any issue you may have or think you may have in the future of your retail life. We read every comment and would respond to any question you may have. Just let us know.

Once again, thanks for the e-mails and keep the lines of communication open.

Bananas.

So many times we think about the place down the street that is very similar to our retail store. Usually when we think of them it’s not pleasant because if they were not there our business would be so much better. But instead of thinking about them in a bad way, when was the last time we visited them.

Now first of all, they are not your only competition. I define “completion” as any business or person that sells the same items you sell. So if you sell batteries, your competition is any place or anyone that sells batteries.  That would be grocery stores, big boxes, building centers, convenience stores, ect. You are in completion with anyone that sells batteries. If you sell ladies clothing, any store that sells ladies clothing is your competitor.

So first of all, when was the last time you visited them?  Have you been in the store recently? If you visit them, do you tend to look around and critique them? Instead of looking for things they are doing wrong, what are they doing right?

When Sam Walton, Wal-Mart’s founder, was alive he traveled all around the country visiting his stores. Many times he would fly into a town (he was a pilot and flew his own plane, which was not a comfort for anyone traveling with him, by the way) and before he would go to the Wal-Mart store in that town he would stop at the local K-Mart, Target or any competitor that was in that town. He would go in, introduce himself to the manager and proceed to walk the store and ask the manager questions about what is selling, good looking displays, anything. He was getting ideas. He never criticized the store because in his mind, every store does something right.

In most of the country there is a convenience store chain called Kwik Trip. If you own a convenience store in that area and you heard that Kwik Trip was coming to your town, it brings panic to your life. They are a well run operation. I happen to know that one of their best selling items that they stock are bananas. That chain sells thousands of bunches of bananas every day. If you have ever been in a Kwik Trip store you are likely to see a large display of bananas close to the front door. My point here is how many other convenience stores have you been in that sell bananas. I can’t think of very many that I have seen and if they do, there are about two bunches located in the back corner of the store. Why can that chain sell so many and no one else tries?

Secondly, why not check the competition in other areas. What are they doing right?  If they are not in your business drawing area, what does it hurt to ask what they are successful selling or doing. What are their “bananas”? They may be happy to show you around and tell what their “bananas” are. If they are proud of their business, they will be happy to.

Remember, you are not the only one that has to come up with great merchandising and promotional ideas. Let your competitors do some of the work for you.

Then make sure you implement them, before those ideas become bruised and rotten.

I have always been the kind of person that, most of the time, enjoys going to the store, dealing with customers and spending time with the associates. Now I see these associates every day, unlike good customers that I see maybe once or twice a week at the most. Most associates I spend more waking time with than my wife and family. So sometimes I wonder if they feel the same way that I do.

We all know people that are not “morning people”, or so they think. They have to have at least 9 hours of sleep and 5 cups of coffee to carry on a reasonable conversation with anyone. You have to drag out a “good morning” from them and hope there are no other sounds in the building so you can hear it. So, is it because they are not “morning people” or do they just not want to be where they are at that point in time?

So now the big question is: Do any of these kind of people work for you? Do they work with your customers? If the answer is yes, why?

How do you treat them? You may be friendly to them (I would sure hope so), so that would keep them happy for the first few weeks, but then what. Are they bored with what they are doing? Do they not feel part of the team? Maybe they need some responsibilities. They need some more self worth. Put them in charge of an area, such as a department in your store. Get their input on orders, merchandise, supplies, food categories, ect. Also let them know how the business is doing. How are sales going? When is that next new item or items coming? Put them in charge of loss prevention areas, such as customer theft, merchandise security, customer and associate safety, ect. Associates feel more involved when they are given more responsibility. Oh and by the way, it will make your job easier with fewer headaches. I then gives you more time to talk to them, see how they are doing. How are their families? How’s that new car running? Where did you get that new coat/shirt/blouse? Ask them about their kids. 95% of all people love to talk about their kids or especially their grandkids. They will feel closer to you because you showed an interest in their personal lives, not just that they work with you.

Have fun with them. Have dress up days. I’ve seen “You”re the manager” days. Even a small thing like casual Friday or $1.00 jean day where everyone pays $1.00 to wear jeans to work with the money going to a local charity. That’s good for them and good publicity for the business when that money is handed over to that charity.

So if you’re doing all that and you still have that person that takes until 4:00 p.m. to get in a good mood, maybe that person is in the wrong line of work. He or she is reflecting on your business with  his/her customer contact and can you really afford having someone like that representing your business? It is in your best interest to ask that person if they really want to continue to work with you. My guess is that they will either get better quick or find another job so that they can sleep in until noon.

Being in retail management  for going on 37 years, living in 13 different towns and managing 19 (WOW 19? Almost ran out of fingers and toes counting them up) different stores for 4 different companies, I would have to say that I have managed to keep myself and my family firmly placed in nothing but small towns. Most towns were in the 3000 to 8000 population. Now some people would go crazy or bored to tears in such towns, but they are the areas I prefer. That why its “Your Town Retail” not “Your City Retail”.

Looking around the small towns in recent years I have noticed that the big box chains are generally not going into these towns as much as they were 10 to 30 years ago. When I was with Wal-Mart in the 1980′s, they were known for going into the small towns, some as small as 2500 population. Not so much any more. There are some chains going into small towns, but mostly specialty type retailers. I think a lot of the big boys have forgotten about these important areas of the country.

The reason I bring this up is that I feel, even with these uncertain economic times, that small towns and communities are a safer place to start a retail business than they were a few years back. In the 1980′s through the mid- 2000′s, there was a lot of retail expansion by big retail. No area was safe and many felt it was only a matter of time before a national retailer moved into your town. Because of this, many small retail businesses and ideas never made it off the drawing board.

I feel differently now. Not a lot of big retail expansion going on today, not even with the specialty chains. Most chains are focused on remodels of upgrades to their current locations. This I feel is a good time to start a retail business in your small community. Now nothing is a sure thing but there is a real need for small specialty stores in small towns and without as much of a threat from the nationals, it may be as good a time as any to start that small retail business in your small town.

Now remember there are other things to consider if you are wanting to open a store, like location, parking, inventory, financing, ect., but this might be one less thing to worry about.

Please send us your comments at www.yourtownretail.com. Click the “About Us” tab.

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You all have employees that work for you. Some are better than others, of course. But can they sell?

I don’t mean interacting with customers. Anyone can do that. Can they sell? Do they have product knowledge? Do they ask the customer the right questions? Do they find the right solution for your customers or do they just show the customer where to begin their search for what the customer is looking for?

The biggest thing small retailers have going for them is one on one customers service. Customers go to big box stores for the basics and large selection, but they go to small retail stores for the unique experiences and the customer service. If you think your employees are good at meeting the customers wants, do a roll play exercise.

Next time it’s a little slow in the store, take one of your associates aside and tell them you are going to play a game. You play the customer and your associate will try to sell you the items that you came into the store to purchase. Have them treat you like they would treat any other customer. Have some specific item or items in mind that your character  wants to buy. How will your seller handle the challenge?

Don’t make it overly tough for them. If, during the roll play, they do a good job of presenting and selling an item to you, tell them flat out, “I’ll take it.” See if they will suggest other items that will tie into the item that you are purchasing. The idea is to show the customer to every item that he or she needs to have with the main item they are purchasing. Remember not to push items the customer doesn’t need, but suggest every item they may need.

My guess is that you will be very surprised as to how little your associates will try to sell you. Talk after the roll play as to what other items could be suggested to the customer. How was the presentation? Did they greet the customer? Did they ask enough questions about what the customer needed? Did they tell the customer why that item that they picked out was best for their needs?

Do this roll play with all your employees at different times. Make it fun. If possible, have some other employees observe the game. They will learn. I think you will be surprised, the first few times doing this, as to how much better your employees could be at selling.

Most of the time we as managers and owners think that anyone with a personality can sell. Selling well is something that is taught, not something people are born with.

As most of you know, it’s the twenty-first century and the retail industry has changed a little. Buying on line is not only commonplace, but has become VERY commonplace. The only thing to realize is that all retailers can play that game, not just the big boys. In fact, some of the ”big boys” are there to help you with your small retail business.

Facebook and Twitter have exploded in the last 5 to 10 years and they allow you to get your name and business out there in the public eye for very low if any cost. Remember that Facebook and Twitter are not only for people accounts, but also business accounts. So if you do not have a Facebook page for your business, get started now. One evening’s work on the site and then getting all your Facebook friends involved , and then getting all their friends to “friend” your site and you are well on your way to a long list of potential customers. Putting a sale item or promotional event on your page for all your friends and you can see how this free advertising will benefit you and your business. And don’t forget to promote your Facebook/Twitter page inside your store. There should be in-store signage everywhere. You surely want to let your walk-in customers know where they can go to see any promos you are running. Oh, did I mention that these accounts cost you nothing?

You should also consider having a web page for your business. Yes, your own web-page. Web pages are not as expensive as you may think and can be designed however you want them to look. There are even some big box stores like OfficeMax that are selling web sites to small businesses at introductory prices for the first year. You can get a basic site for around $69 for the first year, all the way up to a 999 page site where you can have the customer use your “shopping cart” and buy items from your store and pay using the credit card account that is included in the package. These run for about $250 for the first year. these sites are professionally made and look great. There are other packages in-between that may fit your store better.

Go out and get some information on your own business site. It’s not as scary as you think.

By the way, you’re reading one now.

It’s the time of the year that retailers love, hate or love to hate, the holiday season. Most every store placed their orders for holiday merchandise long ago, started receiving it not so long ago, and now should have it out on the counters and have started to sell it. Craft stores, you should have had your holiday merchandise out on the shelves for quite a while now. Holiday craft and fabric merchandise sells first, as merchandise goes, because your customers may have to make or design their holiday items that they are buying from you. Next comes outdoor decorations and gifts, then indoor decorations and gifts, and finally wrapping supplies and last minute gifts and stocking stuffers. See the other holiday post for more details.

Something to remember for 2012 is that Black Friday is on November 23rd this year. Why is that important? Because in 2012 the time period between Thanksgiving and Christmas is the longest it can possibly be. That is because since Thanksgiving is always the 3rd Thursday in November, Thanksgiving is as early in the month as it can possibly be. There are 32 shopping days between the two holidays and that will mean two things:

1. There will be more days to shop between holidays, so more days to sell.

2. Black Friday will sneek up on many people because right now it is  the early part of November and we have less than 3 weeks to go to the big day.

Be ready. Early Black Fridays tend to be less busy because of the earliness of the Thanksgiving holiday, so make sure you are promoting your business. Many retailers have Open House’s or Pre-Black Friday Sales. have special hours for that day or that week-end.

This Thanksgiving holiday could make or break a good holiday season and the season is too important to miss.