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Christmas Quick Tip #10 – Move Stuff Around

For the holiday season I am keeping these posts short and simple. You’re busy. I’m busy.

Here is tip #10 …

MOVE STUFF AROUND

By now you’ve had a pretty good taste of what people want. You already know the slow movers, the stuff you had high hopes for but haven’t seen the sales. Now is the time to move it.

Here is how you sell that merchandise without heavy discounts …

  • Move it around
  • Put it in a better location
  • Give it a spotlight and a sign
  • Treat it like it is special
  • Talk it up to your customers
  • Talk it up to your staff
  • Give your staff a spiff for selling it

It is better to mark it down a little and move it now while you have a lot of customers than try to move it in January at really deep discounts when you don’t have the traffic.

You have from now until Friday to identify those slow movers and relocate them in the store. (On Friday the men start their Christmas shopping.)

Go!

-Phil Wrzesinski
www.PhilsForum.com

PS Remerchandising should already be the busiest thing on your schedule as you constantly shift inventory to make the store look full.

Christmas Quick Tip #7 – Lead with the Best

Of all the Christmas Quick Tips I will give you, this one will be the hardest to master and quite possibly the most rewarding when you and your team do master it …

Here is tip #7

LEAD WITH THE BEST

Your customer is looking for solutions. Yes, at this time of year we call them gifts, but at the end of the day, they are really solutions to problems.

When you offer suggestions, unless the customer has given you a price range right up front, ignore price altogether and start by showing the best solution you have.

It doesn’t have to be the most expensive. It just has to make the most sense.

The tendency of most retail salespeople is to sell from your own pocketbook and start by offering the cheapest solution. That doesn’t win hearts (or build profits). You can use the cheapest solution as the fallback when they balk at the price of the best solution, but always lead with the best.

A customer will expand his or her budget if the product offered truly fits her needs.

You are a solution provider. Your job is to provide the best possible solution first. Then the customer can decide what she’s willing to compromise to fit her budget.

Teach your team that goal number one is to solve the problem in the best way possible. Always lead with the best.

-Phil Wrzesinski
www.PhilsForum.com

PS Never open with the question, “What’s your budget?” First, they almost always lowball you well below what they would actually spend for the right product. Second, it pigeonholes you and often keeps you from showing her the right product. She’ll tell you when it’s out of her league, and you can adjust your offerings from there.

PPS Some of my favorite stores have successfully talked me into buying a more expensive item than I planned. I love those stores because in each case the solution was worth the expenditure. On the flip side, there are stores I won’t visit again because they tried to upsell me something that wasn’t the best solution to my problem. Always lead with the BEST.

Christmas Quick Tip #4 – Never Say No

For the rest of the Christmas season I am keeping these blogs short and simple with one tip, tool, or technique you and your team can use to make this season rock!

Here is tip #4 …

NEVER SAY NO

You are going to be asked quite often for products you don’t have. Either you’re out-of-stock or you don’t carry that product (or maybe you’ve never heard of it). 

When the store is busy and you have other customers waiting to be helped, it is easy to simply say No and move on to a customer you can help.

Resist the urge.

Train yourself and your staff to Never Say No. Try out these phrases instead …

  • I have some coming in soon. Can I arrange to have it sent to you as soon as it comes in?
  • Are you looking for that particular item, or can I show you something similar?
  • We prefer this brand instead (be direct)
  • What are you hoping to do with that item? (if you know this isn’t just meant to be a gift)
  • Can you show me what it is? (if you’ve never heard of the item)

All of these phrases are conversation starters. Often a customer is looking for a specific item because she doesn’t know alternatives exist or she has an idea in her head and can only think of one solution. When you start the conversation, sometimes you find better solutions than the one she asked for.

If all you do is say No, they often quit asking.

-Phil Wrzesinski
www.PhilsForum.com

PS Here’s another tool I stole from a fellow toy store owner. Create a “No List.” Put it on a clipboard up front. Every time an employee gets asked for a product you don’t have or a service you don’t offer, write it on the No List. If one thing ends up on that No List several times, you should consider selling that item or offering that service. Your customers already think you would.

The Benefits of Teaching Benefits

He drove from Windsor, Ontario to Jackson, MI on a Friday night. “We have a Graco car seat and were told you are the closest store to have the matching stroller. Do you happen to have it in stock?”

“Yes, we have two different versions in that fabric. Which did you want?”

“Two versions?? Hold on.”

(On phone…) “Honey, they have two different strollers …”

After hanging up, we started taking about the features they wanted in the stroller. Light weight? They both had that. Easy fold? Check and check. Big wheels for walking outside? Yes and yes. Compact fold?

“What are you driving?”

“A Honda Civic, why?”

We took both strollers out to the parking lot, folded them, and then tried putting them into his trunk. They both fit, but one only went in if you had it upside down, put the front wheels in first, turned it 90 degrees, rotated it another 45 degrees and pushed really hard. The other slid in easily.

Feature: It has a compact fold
Benefit: So that you can fit it into your tiny trunk with room to spare for groceries and other stuff.

  • Feature = What it does
  • Benefit = How that helps you

It does this … So that you …

Feature: This blog offers tips, techniques, and ideas for every aspect of running a retail business …
Benefit: So that you have the tools necessary to run a successful business and have fun at your job …

Feature: Subscribing to this blog gets you an email of every new post as it is posted …
Benefit(s):

  • So that you know before your competitors what to do to gain an advantage.
  • So that you get something thought-provoking, inspiring, and helpful sent directly to you, without having to dig to find it.
  • So that you have something in your inbox that you look forward to reading to offset all those emails you dread.
  • So that you have a diversion when you just need to get away from everything else.
  • So that you get reminders of the things you already know but may have forgotten.

The Feature doesn’t sell the product. The Benefit does.

The best game you can play with your staff (new and old) is to grab a random product off the shelf, identify one of its Features, and then list as many Benefits as you can for how that feature can make someone’s life better.

There are lots of ways, places, and times to practice finding the Benefits.

  • Do it when a new product comes in so that everyone knows how to sell that product.
  • Do it during a staff meeting. Make a game out of it.
  • Do it in your daily five-minute huddle.
  • Do it during a slow moment on the sales floor.
  • Do it during training for new staff.
  • Do it randomly and on the spot.

Do it so often that finding the Benefits—how the product makes someone’s life better—becomes second nature with your staff. When it becomes a mindset for them, you’ll see the sales of your more valuable items start to rise.

-Phil Wrzesinski
www.PhilsForum.com

PS One other Benefit from playing this Benefits Game is that it helps you become better at identifying the products you’ll be able to sell better (ones with more benefits) and the dogs you need to clear out of your inventory (ones with fewer benefits). 

PPS One other Benefit from playing this Benefits Game is that it helps you be better at selling the lesser-known brands you carry to compete with the mass-market brands customers ask for by name.

RIP Sears

There is a group on Facebook for people who grew up in Jackson, MI. The posts are mostly, “Who remembers …?” so that former Jacksonians can reminisce about days long past. A recent post was about Toy House. A couple hundred people waxed nostalgic about visiting the original store in the 50’s and 60’s.

Several people mentioned the Catalog Sale, something my grandfather started early on.

The Catalog Sale was a two-weekend sale, once in October, once in November, where people brought in their catalogs and we matched the catalog price on any toy we had in stock. Our goal was to keep the sales in town.

The Sears Catalog

The most common catalog was the Sears Christmas Wishbook.

We ended the Catalog Sale in the early 1980’s when it turned out our prices were usually sharper than the catalogs at that time. The event was no longer a draw. By 1993 even Sears had stopped producing their catalog.

Times change. Retail shifts. Today Sears has filed bankruptcy.

Sears was Amazon before Amazon with their mail-order catalog business that allowed you to buy almost anything you could imagine from the comfort of your own home.

Sears was Walmart before Walmart when they dominated the retail landscape in the 1940’s and 50’s by offering a wide variety of merchandise at low prices. By 1969 Sears was the largest retailer in America with a larger market share of categories like home appliances than any retailer has ever had since. Four years later they completed construction on the tallest building in the world.

Sears also was a pioneer in retail, with legendary sales training, teaching their sales staff how to upsell and not sell from their own pocketbook. They were taught how to sell on features and benefits. They had their own credit card (which eventually became the Discover Card). They had their own insurance agency (which became AllState). 

Today they filed bankruptcy.

The easy blame is going to be Amazon and Walmart. Amazon out-Searsed Sears in the mail-order business. Walmart out-Searsed Sears in the commodity goods business.

Yet when was the last time you truly thought of Sears as a convenience-based place to buy goods? They dropped their catalog back in 1992, two years before Amazon launched.

And with well-known economy brands like Kenmore, Craftsman, and Diehard, tons of cash, and superior vendor relationships, Sears was well-positioned to destroy Walmart in the race to the bottom. Yet they dropped faster than a greased baton at the blind relays. 

So what happened?

The answer is quite simple. Sears got away from their competitive advantages and Core Values. Convenience and Commodity Brands were only two of them. The one I believe they truly missed was their sales training.

When was the last time you were blown away by the customer service at Sears?

Toys R Us got away from their Core Values in 1992 when Walmart surpassed them in total toy sales. Sears did the same thing over the years as they gave up the advantages that brought them to the table.

There are several (contradictory?) lessons in all of this.

  • Retail is always changing.
  • New competitors will try to beat you at your own game.
  • Stick to what you do best.
  • Don’t give up your advantages.
  • Adapt or die.
  • Stay true to your Values.

We’ll explore these concepts over the next few days and try to learn from their mistakes.

-Phil Wrzesinski
www.PhilsForum.com

PS It is never a good day when a legacy retailer such as Sears files bankruptcy. If we don’t learn from their mistakes, though, then we’re likely to make the same ones ourselves. As I’ve always said, Retail is not Rocket Science. Rocket Science is actually math for which you can solve all the variables. Retail has variables and equations that never fully resolve. The lessons, though, are fascinating.

How to Push for “Yes” (Without Being Pushy)

I remember being in a presentation where the speaker told us that the average retail store only closes two out of every seven customers, and that five out of seven walk away without buying. As I was researching for a new presentation I did a couple weeks ago at the Independent Garden Center, I came across some numbers that were disheartening.

That conversion rate is getting worse.

According to ShopVisible, LLC conversion rates for typical brick & mortar stores are now only 20%, two out of ten instead of two out of seven. (Online is less than 2%.) Eight out of ten customers are walking out of your store having said, “No.”

The scary thing is that at least eight out of ten walked through your door hoping to say, “Yes,” yet somehow you let them down. Why do I believe that many wanted to say Yes? Most independent retailers are destination stores. You don’t sell milk, eggs, and bread. You don’t sell diapers and formula. No one had to walk through your doors. They chose to walk through your doors, hoping to find a solution to a problem or be enticed to buy something they didn’t yet know they needed.

You let them down.

You let them say No and didn’t take the steps necessary to turn it into the Yes they wanted to say.

I have just published another FREE eBook in the Free Resources section of my website called How to Push for Yes (Without Being Pushy). If you want to see your conversion rate and sales go up, you’ll want to download and read this eBook several times. If you want to see more happy, satisfied customers walking out your door, you’ll want to download and read this eBook several times.

If you want to teach these principles and ideas to your front line sales staff, you’ll want to read the rest of today’s blog post.

(Hint: download and read How to Push for Yes (Without Being Pushy) first. It will help the rest of this post make sense.)

NO, I DON’T WANT IT

To overcome this objection you have to go back to trying to solve the customer’s problem. You need to ask more questions and get to the heart of the matter. The QUESTION GAME from The Meet and Greet is a great place to start.

Another game is the PARROT GAME. The goal of this game is to work on listening skills. Pair off your team and have them each tell a fun story about themselves to the other person. Then get back together as a group and have the person who heard the story relate it back to the group. Do it a second time, but this time have the person hearing the story repeat it back line by line as it is being told. When they return to the group a second time, they find their memory of the story and their accuracy of retelling it both go up dramatically.

NO, I CAN’T AFFORD IT

Often the reason for this objection is the customer doesn’t see how the item will truly Benefit her. Playing the DUTCH AUCTION from Assumptive Selling is one way to get your staff more attuned to offering Benefits instead of Features.

Another activity is to have the staff identify the items that cause customers to balk at the price the most. Then work as a team to find ways to raise the Perceived Worth of the item either through better signage, better displays, or simply coming up with better Benefits.

NO, I CAN’T MAKE THE CALL

Since Analysis Paralysis is often the culprit for this particular No, play the BEST SOLUTION GAME from The Meet and Greet. The better you solve the problem, the more likely she will justify the purchase (and ask for forgiveness instead of permission).

NO, NOT RIGHT NOW

Once again, the customer is not seeing the Benefit of owning the product. Work with your staff to find the Benefits that truly speak to the customer for all of your top products. (Read the post Closing the Sale with Assumptive Selling.)

NO, NOT FROM YOU

One big reason for this No is the fear a customer has of paying too much. She is going to check it out in your store and buy it cheaper online (in theory). We call this Showrooming. If this is the No you are facing, you’ll want to download the FREE eBook Selling in a Showrooming World that talks about the two types of customers, their motivations, and how to appeal to each one based on their needs and desires.

THE SILENCE GAME

Here is a simple activity you can do with your staff that serves double-duty. While discussing any of the topics from the past three blogs, ask your staff an open-ended question. Let them answer it freely without having to raise their hands. When they have answered it, don’t say anything. Just sit intently quiet, staring at them for one minute. Count to sixty in your head if you need to. At some point within that minute someone will start to talk again and the discussion will continue. Afterward explain the concept of White Space and show them how easily it worked. You’ll not only get a deeper discussion from the second go-around, you’ll be able to make the point about letting the customer talk to really get to the heart of the matter.

GENEROSITY

What can you give away for free without expectation of return? Show them the Johnny the Bagger video and then ask them for ideas. This might take two meetings before you get really good ideas worth implementing.

Recognizing and embracing the No is the path to Yes. When you empower your front line sales staff to push for that Yes in the ways described in the eBook How to Push for Yes (Without Being Pushy) you’ll see your conversion rate rise. Think what would happen if you consistently turned just one of those eight Nos into a Yes. Yeah, that’s growth we all could live with.

-Phil Wrzesinski
www.PhilsForum.com

PS Here’s a little food for thought … Most customers feel good when they walk out of a store having made a purchase. Most customers feel bad when they walk out of a store and haven’t made a purchase. Wouldn’t you rather have happy customers who feel good? That’s why you want to turn that No into a Yes. It is as much for them as it is for you.

PPS I have two more new FREE eBooks I’ll be publishing in the next few days. I’ll have the training idea blogs for you at some point next week. Happy Labor Day!

Closing the Sale with Assumptive Selling

Our realtor turned to us and said, “Now, where would you put your couch in this room?”

Immediately we started mentally arranging the furniture in the house she was showing. By the time we had visualized the family room, kitchen, and office we were ready to write the offer.

Visualization is the key to getting a shopper to move from gathering information to making the purchase. Realtors know this technique. You should, too.

I have just posted a new FREE eBook on the Free Resources page of my website titled Close the Sale with Assumptive Selling based on the presentation I did for the Independent Garden Center Show a couple weeks ago. The eBook shows you how to get customers into Visualization Mode and also shows you other smart things you need to do at the close of each sale to help your customer solve the problem that brought her into your store.

Today’s post talks about how to teach these concepts and techniques to your front line and sales staff.

(Hint: you should read the eBook Close the Sale with Assumptive Selling before reading the rest of this blog. Go ahead. I’ll wait.)

FINDING THE BENEFITS

If you have ever been involved in sales training you have heard about Features and Benefits. You have to show the customer the Features and Benefits to make the sale. While I agree wholeheartedly with that approach, the real problem is that most sales people spend all their time on the Features without showing the true Benefits. Why? Because Features are easy to explain. The packaging often tells you everything a product does. Benefits are a lot harder to determine, especially because the Benefit for one person might be completely different than the Benefit for someone else.

DUTCH AUCTION

The best game I ever played with my staff to get them to think about Benefits was a “Dutch Auction.” I broke the staff into teams and asked each person to pick three items off the shelf. Each team ended up with a dozen items. Then I would call out a Benefit. The team had to bring me one item from their collection and explain to me how that item offered the prescribed Benefit. If they were successful with their explanation, they got a point.

Some Benefits you can use are:

Show me an item that …

  • Saves a customer time
  • Makes a customer healthier
  • Keeps a customer from having to bend over
  • Helps a customer feel smarter
  • Helps a customer feel stronger
  • Will make all of her friends jealous

This game gets your staff into a different mindset away from just what an item does, but how that will help a customer.

A Feature is what an item does. The Benefit is why that is important.

Another quick way to get your team up to speed on the Benefits is to bring your top ten new items to the next meeting and have the staff brainstorm all the possible Benefits of each item. Write up the list after the meeting and give a copy to everyone.

COMPLETING THE SALE

Have a contest at your next meeting. Have each person pick one item off the shelf. When they bring that item back to the group, explain the importance of Completing the Sale. Then send them out to collect every possible item related to the original item that a customer might need. Once they return, tally up the prices and reward the person who had the highest total. (Note: if no one has Completed the Sale to your satisfaction, send them back out with a total amount they have to reach. This will stir their creative juices.)

Follow up: Have each person create a checklist for their item of the complimentary items you’ll want to ask the customer to see if she has. Do that with your top ten items in your store. Those checklists will bring you gold.

TIPS AND HACKS

There are certain items you sell that people often misuse. There are certain items you sell that have a downside to them that sometimes kills the sale. There are certain items you sell that get the most negative feedback post-sale. Identify these items and bring them all to the next meeting.

Assign a different product to each person and have them research how and why each item is misused, mistrusted, or complained about. At the next meeting have them do a quick presentation with two points:

  • Here is the issue
  • Here is the tip you can give to make the customer enjoy the product and get the best use out of it

Nipping objections and complaints in the bud before they even happen makes happier, smarter customers who will return more often and bring their friends with them.

Now you know how to get your team to Close the Sale with Assumptive Selling.

-Phil Wrzesinski
www.PhilsForum.com

PS One Assumption I am making is that you have read and followed the steps in The Meet and Greet eBook I published yesterday. If you Meet and Greet properly at the beginning it is far easier to Close the Sale at the end.

PPS Yes, you can hire me to do these presentations for your organization. You can even hire me to do a workshop with your sales staff using some of the activities I have shown above and in yesterday’s post. A training workshop like the latter takes about 1.5 to 2 hours and will transform the way your staff works with your customers. When you’re ready to make your customers happier to buy more, contact me.

Having Fun, Helping Others, Eating Lunch

For the past three weeks I have been making several drives from my home in Jackson to the Oakland County area for lunch. For those of you not in Michigan, Oakland County is one of the three counties (including Wayne and Macomb) that makes up the Greater Detroit Metropolitan area. Oakland County is the northernmost of the three and includes several cities, villages, townships, and lakes.

Oakland County is home to twenty-one Main Street programs in the various cities, villages, and townships, and also home to one of the largest county-wide Main Street support programs. It was Main Street Oakland County (MSOC) that hired me to make these drives each week to do a “Lunch-and-Learn” series of workshops. The workshops are four-week-long tracks on one of three topics: Selling & Customer Service, Marketing & Advertising, or Retail Math.

We rolled this out to three different communities. Two of the communities chose Marketing & Advertising, one chose Selling & Customer Service. All three are reporting back with incredibly positive feedback. Other communities are already bugging MSOC to be included in the next round.

The fun part for me is that I like driving and I love doing these presentations, mostly because I know the difference one or two good tips or techniques can make for a small business.

The fun part for the attendees is that they get a free lunch (or breakfast) and four 45-minute presentations jammed with eye-opening ideas, out-of-the-box thinking, and surprisingly simple techniques to improve their businesses.

The fun part for you is that there is still time to plan a Lunch-and-Learn in your neck of the woods (as long as you are within two hours driving time from Jackson which would include Grand Rapids, Kalamazoo, Fort Wayne, Toledo, Detroit, Flint, and Lansing areas).

Here are the three tracks with class titles and descriptions.

Option A: Marketing & Advertising

  • Week #1 Boosting Your Brand to Attract the Right Business – A quick lesson in branding to show you how a well-crafted brand makes a huge difference in attracting the right types of customers and business. You’ll learn how to uncover the true value in your brand and make your brand stand out in the crowd
  • Week #2 Marketing Your Business on a Shoestring Budget – Seven different ways you can get the word out about your business and draw traffic in without spending a fortune. You’ll learn how to leverage your talents and time to attract more customers to your business right away.
  • Week #3 Making Your Ads More Effective – We hate ads, not because there are too many, but because most ads suck. This presentation will show you the six principles that make the difference between your ad being remembered and acted upon or being simply ignored. You’ll learn techniques even the most highly paid professionals sometimes get wrong, and how you can apply them to your own advertising efforts
  • Week #4 Generating Word-of-Mouth Advertising – We all know Word-of-Mouth advertising is far more effective than traditional advertising, but do you know what it takes to actually get your customers to talk about you? This presentation shows you four proven ways you can generate word-of-mouth advertising. You’ll walk away with tips and techniques that get people talking the very next day.

Option B: Selling and Customer Service

  • Week #1 Selling in a Showrooming World – Online shopping is here to stay. So is the concept of Showrooming, where a customer uses your store to touch and feel the product before ordering it online cheaper. This presentation shows you the two types of customers, how to recognize them, and the very different ways you sell to them. Learn this and you’ll close far more sales than ever before.
  • Week #2 Raising the Bar on Customer Service – Every store thinks they offer Great Customer Service, but every customer can regale several stories where the customer service fell far short. This presentation gives you a different perspective on customer service and shows you how to up your game so that Great Customer Service is only the minimum. You’ll learn how to surprise and delight customers at every turn.
  • Week #3 Building the Perfect Salesperson – Finding the right salesperson is the key for any organization. But how do you identify the perfect fit? This presentation will change the way you look at interviewing and hiring and even training. When you’re done you’ll have a better understanding of how the best companies find the best employees time and time again.
  • Week #4 Training and Motivating Your Team to Perform Their Best – The carrot and stick might be good for a donkey, but it won’t get the best out of your team. This presentation will show you what really motivates people to do their best work and how to get the kind of creativity from your team that sets you apart. You’ll also learn how to turn staff meetings and training times into something your staff looks forward to attending.

Option C: Retail Math

  • Week #1 Reading Your Financial Statements – Your accountant will be glad you attended. This presentation will show you in layman’s terms how to read the two most common financial statements – the Profit & Loss and the Balance Sheet. You’ll learn how they are calculated, what they show, and an intuitive way to use them to check the financial health of your company. It isn’t as scary as it sounds.
  • Week #2 Inventory Management – Cash is King. In retail, the biggest use of your cash is your inventory. This presentation will show you simple and smart ways to manage your inventory levels better including how Open-to-Buy programs work and easy ways to increase cash flow. You’ll learn how to turn slow moving merchandise into cash and make your inventory work for you.
  • Week #3 Pricing for Profit – Most businesses leave thousands of dollars on the table because they don’t understand the principles behind how to properly price their products or services. This presentation shows you how you can raise prices and increase unit sales by harnessing the power of perception. Learn these techniques and you’ll start making more money the very first day.
  • Week #4 Unlocking the Hidden Cash in Your Business – There is more to retail than just buying and selling product. This presentation will show you some different ways to measure your business and some simple ways to make a little extra cash that might just be the difference you need to pay yourself a bonus this year.

If you just read those and said, “Dang, I could use this!” pass this post along to your DDA Director, your Chamber of Commerce, your Main Street Director, your Economic Development Director, your Shop Local director, and tell them, “Dang, we could use this!”

(Heck, you don’t even need one of those organizations. Just get a few other small businesses together and give me a call.)

Then contact me. We’ll go over what it would cost, creative ways to finance it, how to get the food and venues, and what dates to schedule this fall to have some fun helping small businesses grow and thrive, all while having lunch.

Sound yummy to you?

-Phil Wrzesinski
www.PhilsForum.com

PS Not within that two-hour drive? No worries. Instead of four lunches, we’ll do one big brunch and put all four lessons into a three-hour workshop. Call me.

PPS The beauty of what you’ll learn in these tracks is that the dividends are immediate. With many of the lessons you’ll see results right away. Having this information fresh in your mind leading into the busy holiday season will make a huge impact on your bottom line this year. Lets get some dates locked in now.

PPPS If you’re in Oakland County, MSOC is already working on the budget for 2019. Contact John Bry at MSOC and let him know you want in. If you want something this fall, however, check with the other organizations in your community to see if they will help you organize this.

Convenience Versus Experience (One More Time)

Yesterday I posted a blog titled “Convenience Versus Experience.” Today in my inbox I get an email from one of the retail news outlets I subscribe. The subject line?

“Convenience vs Experience: What matters most to shoppers?”

It was a white paper on shopping habits. Yes, I had to download it.

Oracle Bronto did a survey of shoppers’ habits by age, income, children in the house, and need, to see how frequently people shop online, in stores, or both. Excluding grocery and convenience stores, the survey covered a lot of ground and revealed some interesting stats. (You can click on the link at the beginning of the paragraph to download the full results yourself. Just beware that Oracle is going to ask for all your info and try to sell you on their Bronto email software.)

One surprising stat was that Millennials were most likely of the age groups to shop often, and they shopped equally in stores and online. Bet you didn’t see that coming.

Another surprising stat was that Boomers were the group most likely to go online when they did go shopping. (They also shopped the least.)

Not surprising was that the more money you made, the more likely you would shop often.

Here is what the survey didn’t tell me …

It didn’t tell me how many times a customer went shopping in stores for Convenience versus Experience. One of the assumptions was that people shop online purely for Convenience and shop in stores purely for Experience. Unfortunately that assumption is false.

I’ll bet you know people who shop online for the experience, or at least to avoid the experience of shopping in stores. I’ll bet you also know people who shop in stores because they want the item today (convenience).

Hardware stores, for instance, were not excluded from the survey. When I go to a hardware store, it is for the convenience of getting the part I need to get the job done now (or at least within the next three trips.)

The one takeaway worthwhile is that people shop a multitude of ways by choice.

The only question you have to answer is if you are giving them enough reasons to choose you.

-Phil Wrzesinski
www.PhilsForum.com

PS Even though their original question of “Convenience vs. Experience?” is flawed, the results of the survey are quite fascinating. It might be worth coughing up your spam-folder-email-address for the download.

Move Your Dogs Before the Dog Days

Every year right after Memorial Day my staff and I would go on a dog hunt. No, not the little stuffed animal dogs we sold by the packs (although that would be a fun staff training exercise), the slow-moving merchandise that was holding back our cash flow.

Every retailer has these dogs. We all wish we could be perfect buyers, always choosing the right items in the right quantities at the right time. Unfortunately that rarely happens. The great retailers, however, know that the sooner they clean up the mistakes, the better.

The key is to recognize the mistakes, find the dogs, and make them hunt. If you’re a fourth-quarter-driven retailer, you know it is a dog if …

  • You bought a case last year and couldn’t sell the entire case by Christmas.
  • You bought it earlier this year and haven’t sold a single item in two or more months.
  • The item is discontinued by the manufacturer.
  • The packaging has changed.
  • The box is crumpled.
  • Your staff hates it and won’t sell it.
  • A better solution is coming in soon.

If you’re a smaller retailer with a tighter inventory that needs to turn over faster, you might have more strict criteria than that. The key is to find the laggards, the slow-movers, the merchandise you’ve already paid for that isn’t paying you back, and turn it into cash.

Toy House and Baby Too in downtown Jackson
The Summer Fun Sale!

We pulled all our dogs in June for our annual Summer Fun Sale in July. We took the items off the floor, marked them half-price, and put them back out on special shelves in the middle of the store the night before the sale started.

Half-price?

Yes, half-price (or thereabouts, for instance $14.99 became $7.99). Our goal was to move merchandise quickly.

Get it out of the store fast, get the cash, and get back to restocking with new, better inventory that might actually make you some money.

I know some retailers like to do a gradual price reduction. I’ve never been a fan of that. First, it costs you time and money to reprice things. If you have to do two or three markdowns, you’re spending way too much. Plus, if an item has been marked down two or three times, the customer gets the perception that there must be something seriously wrong with the item. Third, by going deep on the first cut, we get hoards of Transactional Customers right off the bat. Three of our five busiest days in our 67-year history were actually the first days of our Summer Fun Sale. One big sale creates a lot more excitement than a gradual death march of price reductions.

Here is another way to think about it … If you bought a crib for $299 and put it on your sales floor at $599 for six months and didn’t sell a single one, how much money did you make on that space? If you answered zero, you’re wrong. You’re actually at negative $299. You’ve lost money on that space. You could try $499 for a month or two and see if it sells. If it sells, you made a little. If not, you’re still negative $299. Or you could mark the crib down to $299 where you know it will sell right away, get back to zero, and then put something else in the space that will make you money.

I also know some retailers who have a clearance section year-round. That is a shrine to the Transactional Customer. It is also a sign that tells your regular customers that everything gets marked down eventually, might as well wait. Since my focus was on my Relational Customers, I wanted my sale to be quick and the dogs gone so that I could put my store back together to look great for the customers I was trying to impress.

The Dog Days of Summer are coming. It’s best for you and your dogs to get them out of the store before then.

-Phil Wrzesinski
www.PhilsForum.com

PS We always started our sale on the third Thursday in July. People planned their vacations around it. Our parking lot was typically full fifteen minutes before we opened. By Saturday afternoon we had moved 75% or more of our sale stuff. After two weeks we went to BOGO on the remaining clearance items. The ultimate goal was to not have to have a Summer Fun Sale. We never got there. We always had dogs. You do, too. Make those dogs hunt.

PPS There was another reason for the timing of our sale. A lot of new merchandise comes out in August and September. That’s a typical cycle for fourth-quarter retail. By having our sale in July, we cleared space just in time for the new merchandise to arrive.