Posts Tagged ‘Retailing in a recession’

Trying to work something out ?

Tuesday, July 21st, 2009

What's the missing piece...?

What's the missing piece...?

I don’t know if you’ve been watching the recent spate of recession busting retail programmes that have hit the TV channels recently? They range from Sainsbury’s wondering how to do it better, to Mary’s upping the game for charity retailing (and taking some stick for it, although she did a great job !) undercover boss, and now onto Gerry’s big decision….

The last one is my favourite because it deals with family businesses, the kind that most of us run, and they’re fraught with all kinds of problems that bigger or more devolved businesses don’t face, partly because there’s not so much emotion involved in being employed in someone else’s business, or at least that’s how it appears to me.

Gerry deals pretty much exclusively with family businesses, and as far as I can tell he’s looking for strong leadership, or at least the potential for it. But the programme does seem to discount the work of the founders in making award winning pastries, beers or holidays – this seems to get glossed over in favour of sales, sales and more sales…. Don’t get me wrong, I don’t think any business would turn down more sales its just that the passion for the product is what creates the business. The sales follow on from that….

Which brings me to my next musing…. How do you keep the passion ? How do you keep learning so that your business stays interesting ? How do you keep from going slightly bonkers when the sales go down?

It seems to me that the best way would be to swap businesses for a day with another business owner – because its always easier to see the “faults” or should we say opportunities for development in other businesses than it is in your own….

It’s a radical idea, and maybe a bit uncomfortable, but how about if instead of swapping businesses, you just swapped knowledge ? Maybe you have sales skills that you could teach your neighbour who has marketing or accounting skills?

As long as you agree the boundaries before you start – play nice, no abuse and no hard feelings…. It could work, and you’ll certainly get a fresh perspective on your business, maybe it’ll show you the missing piece of the puzzle… and for free !

The definition of insanity…

Wednesday, June 17th, 2009

Einstein said it best !

Einstein said it best !

I believe it was Einstein who came up with this oft repeated quote although i’ve seen it attributed to others too. Basically, the definition of insanity is doing the same thing over and over again and expecting a different result !

How often in life do we do this ? I don’t have enough fingers and toes to even begin to count the number of times i’ve fallen foul of this truism.

If you find yourself negotiating with your staff, bemoaning your sales figures, despairing at the market, or putting the same advert in the same magazine month upon month(without testing it) then you’ve surely strayed down this route.

The clever thing to do (apparently) is to pick yourself up, dust yourself off and have a look at what you could do differently?

Implement a personal development meeting with each of your staff ?

Try a new sales avenue - take the product to the customer rather than waiting for them to come to you ?

Look at all the businesses that are surviving and thriving in our current economy?

Teach yourself the basic rules for PR so you can be the story instead of the advertising supporting the story ?

If any of these would be doing something differently to how you normally do it, then they’re worth a try.

What else could you come up with thats totally different to how you normally do things ?

Heck, if it ain’t broke then don’t fix it, but if you find yourself going home to your spouse or long suffering partner and complaining about the same things more than once a week, then its probably time for a change, before you drive yourself, or maybe them, quietly insane.

It might even be fun to do something differently. What five things in your store or the running of your store drive you crazy ?

Have a quick brainstorm with anyone who’ll listen about what you could do about them, don’t rely on partners and staff, involve the milkman, people down the pub, your hairdresser, anyone who might have a different view point to you -after all your way hasn’t been working so well, so maybe its time for a new approach ?

What have you got to lose ?

Ask a better question…!

Friday, March 13th, 2009

question_mark-1We spend our whole lives thinking, or at least we think we do. After all, what is thinking? What’s the actual process of thinking? What do we do when we’re thinking?

Well, what we actually do when we are thinking (or think we are, stay with me here) is we ask questions ! You can really see how the world breaks down into two camps from the questions people ask themselves….

For instance, If you want to lose weight and you can’t seem to, you might ask the question? Why can’t I lose weight? Then your brain will tell you “because you’re a fat pig that’s too lazy to exercise, that’s why!” So you go round again in the same old familiar circle, trying to lose weight, not really doing it, and feeling bad about it.

I’ve used the weight example because it’s one that we’re all pretty familiar with, but it could be anything: forming a new relationship, opening another shop, getting great staff…

So, given that our brains are programmed to give us the answers to the questions we ask them, (and quite brutally usually – lets face it, we all talk to ourselves much more viciously than we’d let anyone else talk to us!)

What can we do with this information? Well, the really interesting thing here is that if you want to move forward and out of the cycle of dispiriting answers, then you’ve got to start asking better questions!

So, to go back to our old fat analogy. If, instead of asking “Why can’t I lose weight?”, we had asked “What can I do to lose weight?”, we’d have got an answer something along the lines of: Exercise; eat sensibly; have a goal to aim for; a reason to be setting out to lose the weight; a losing weight partner; a trip of a lifetime as a reward etc. So, our brains know the answer to the questions, if we just ask the right questions.

So, now then - Recession ! Now that’s a word that’s pretty much guaranteed to strike fear into the hearts of full grown men and women.

Instead of us fearing the recession (and that does seem to be the national psyche at the moment) with everyone running around asking how can this be happening to me? What about my job? What will become of me?

How about we ask the question “What’s good about this recession?”

I think the answer will be along the lines of – Opportunity, a new way of looking at your business, using our brains to work out how to respond, instead of just doing the same old things we’ve always done. Shedding stock, moving resources that we should have moved a long time ago, coming out of lines that never really worked for us, but we were attached to, looking at new markets as an opportunity rather than another thing we have to do and a host of other things waiting to be explored.

Retail is changing, shops are changing, jobs are changing, technology is changing - heck, life is changing! So why would any of us think it should somehow stay the same…? If you want to move on, then you’ve got to take something on…!

In the words of Bruce Springsteen, “these jobs are going boys and they ain’t coming back!”

Another great speaker that I’ve admired for years, Jim Rohn famously said “Don’t wish it was easier, wish you were better!” - which is fabulous advice at a time like this…. So the questions we could be usefully asking ourselves are things like : What have I learnt recently? What new skills or training have I invested in? How can I develop my marketing? How can I widen my horizons and get really excited about the future?

So if you want a better answer – Ask a better question?

USP’s - They’re the name of the game…!

Friday, March 6th, 2009

Welcome to the party !

Welcome to the party !

What’s your USP? Have you worked this out? Are you clearly articulating it at every point of contact with your customers? On business cards, websites, blogs, advertisements, on your windows, your signage, delivery vans, and your packaging and bags?

In tough economic trading, and most of us are agreed this is no picnic, some businesses will scrap and scrabble for any business they can get their hands on just to stay in the game.

You know when a business is in danger, when the business suddenly starts diversifying into products that have no relevance to their initial offering. You’ll see from my canine friend at the top of this post, that this can have disasterous connotations as customers struggle to decipher the mixed messages your business is sending out.

The danger of grabbing anything you can, is that you can lose sight of the distinctive benefits that your product or service delivers to your customers and you’ll end up being treated like a commodity and coming under severe price pressure. Any business that operates as a commodity is going to come under price pressure, that’s a given.

Your aim as the business owner, or champion must be to create a vision and personality for your business, something to communicate to your customers so that they understand the value of being part of your network and doing business with you. They literally are choosing you from all the other alternatives out there, so you must give them compelling reasons to make that choice.

Winning retailers clearly articulate the distinctive benefits they bring to their customers. Those who grasp the upside of the downturn and come out as winners are those who

* Ensure their offer is distinctive and that their customers value this distinctiveness, and don’t mind paying for it.

* Are clear and confident in articulating their distinctiveness of their business at every opportunity

* Say “no” to opportunities where their distinctiveness is not valued, or the products take their offering away from their USP

These challenging times are a real test of leadership and nerves! Whatever you do, don’t just wait and hope that things will get better. Now is the best time for you to show the clarity, focus, resilience, and persistence of a leader.

Take some time, get curious about what’s working and what’s just not. Get clear on what is your business’s USP and once you’re clear on this, get creative and shout about what makes your business distinctive.

By doing this, you create a better future for your business, for your employees, and of course, for you!

You can download our free e-book on USP’s from this website, just log in.
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How to thrive in a contracting economy…

Friday, February 27th, 2009
Ringing the changes !

Ringing the changes !

While I don’t want to make light of the current economic situation, I do believe that there’s always something you can do ! Observing a few simple points will see significant rewards:

1.Manage costs – Look at the simple things that you maybe haven’t questioned for a long time. Do you really need 4 bins for your rubbish? Two telephone lines? As many staff ? Look again at all the contracts and subscriptions you currently have – Are they all necessary, what can you reduce or combine to save money?
Cut your stock down. Operate a little leaner. Can you trim 10 percent to 15 percent of your stock costs by carrying less of each item? If so, then do it. Not only does it mean you’ll have more working capital for this slower time period, but it means you’ll have important cash reserves should the storm last longer than expected or the banks continue their current shall we say “cold attitude” to SME’s
Shave staff hours. Labour is one of the biggest costs for any retail business. Standard accepted wisdom in the industry is that you want to get your payroll costs to be less than 15 percent of sales and ideally around 12 percent. If you can shave hours and still deliver excellent customer service, then make the cut. It’s more cash you can use for working capital or to save for later.

2. Reduce wastage :This sounds really obvious, but if you consider the thinking involved in investing to move a business forward you’ll get the dilemma. Understanding your customer in great detail will help you make better decisions, as you’ll base them on Return on Investment (ROI)

3. Clarify your brand message: Make sure that this is clear and concise, and shout about it at every opportunity. Make sure its on your business cards, your signage, your bags, your blog and your website – Tell everyone about your business and what’s so great about it at every opportunity. Don’t radically overhaul it - Just reinforce what’s great about it.

4. Avoid Knee jerk reactions: A reaction is a bad thing, its what you get when you’ve eaten bad shellfish ! Reacting is intuitive, instinctive and usually dangerous ! Responding is a much better alternative. You respond to external stimuli with thoughtful action. Response is always better than reaction. Don’t slash everything in a blind panic. Analyse all your options, and keep everything in perspective.

5. Take the Initiative – Both reaction and response pale in comparison to the third alternative – Initiative – taking the initiative and making something good out of any situation is always preferable to being a victim of a situation. Look at the situation as a game, how can you play the game better? What do you need to learn. How can you increase your public profile? How far can you stretch your advertising budget? How creative can you be with your budget?

6 Marketing: Trim your marketing expenses. Some argue that when times are tough, you need to market your business more. But, if consumers are in a hunker-down mode, no amount of marketing is going to get them to react. Market as you need to, for your sale and seasonal occasions. Pull an ad here or there to trim the costs. Test it. If you can do it and your business doesn’t change, the marketing isn’t working anyway. Remember to test and measure all marketing!

The only way is up ……!