Before we look at some possible solutions, let us first go back to when you purchased the
products, and think about why you possibly made a few mistakes, or errors of judgment!
Like most problems, you must look at the causes.
If you can prevent them from happening again, it will obviously help you in the future. Like the saying goes; “Learn by your mistakes”. To Quote Oscar Wilde: “Experience is simply the name we give our mistakes” . The truth of the matter is even the most experienced Retailers still make mistakes! ... and that’s fine!
Like most problems, you must look at the causes.
If you can prevent them from happening again, it will obviously help you in the future. Like the saying goes; “Learn by your mistakes”. To Quote Oscar Wilde: “Experience is simply the name we give our mistakes” . The truth of the matter is even the most experienced Retailers still make mistakes! ... and that’s fine!
...it is OK to make mistakes – as long as you learn by them!
I believe that there are three basic reasons that result in “Slow sellers” (Dead Stock)
1. Buying for the wrong market:
Do you really understand your Market? Are you merely repeating what you have done in the past? Markets are constantly changing all the time, as are your consumers’ buying habits. You have to keep asking yourself, “Am I Selling what my customer is buying”? You need to be constantly talking and interacting with your customers to establish their ever changing needs and wants... and that’s very hard to do when you lock yourself away in your office!
Do you really understand your Market? Are you merely repeating what you have done in the past? Markets are constantly changing all the time, as are your consumers’ buying habits. You have to keep asking yourself, “Am I Selling what my customer is buying”? You need to be constantly talking and interacting with your customers to establish their ever changing needs and wants... and that’s very hard to do when you lock yourself away in your office!
2. Poor merchandising:
This is everything that you do with the products, including Location and Pricing. Was the product in
the correct Department, with proper adjacencies? Was it in a “Hot-Spot” in the store? Did you have
proper signage and ticketing? If the product was in a “Bulk” display, was it a “WOW” display?
All too often, product “failure” is due to lack of Product Knowledge by team members in the store.
Sometimes linked to this is the staff’s unwillingness to sell or promote a product due to “non –
belief” either in the product itself, or even the source of supply!
3. Poor product knowledge:
Alright then, we discussed some possible causes, let us now have a look at some possible
solutions!
ACTION PLAN
2. The most obvious next step would be perhaps to try and send the products back to your suppliers. Now this is a very interesting topic! Over the years I have seen many Retailers treat their Suppliers like the Plague; Calling them names and using adjectives that were never used in the Navy; but when it comes time to get assistance, like returning stock, they can’t understand why the Supplier will not assist! As a suggestion, perhaps one of your New Year Resolutions should be: “I will treat my Suppliers (and my staff) the way I want them to treat me and my Customers”! Go on – try it!
1. Hold a Staff meeting, with ALL Team members!
You can firstly ask them what they think were the reasons for the products not selling. At the
same meeting you can perhaps ascertain the staff’s product knowledge.
Then ask for their suggestions for clearing the stock; remember that there is no such thing as a bad idea! Don’t knock them down – rather encourage ideas! It just means that not all suggestions will be implemented!
Then ask for their suggestions for clearing the stock; remember that there is no such thing as a bad idea! Don’t knock them down – rather encourage ideas! It just means that not all suggestions will be implemented!
2. The most obvious next step would be perhaps to try and send the products back to your suppliers. Now this is a very interesting topic! Over the years I have seen many Retailers treat their Suppliers like the Plague; Calling them names and using adjectives that were never used in the Navy; but when it comes time to get assistance, like returning stock, they can’t understand why the Supplier will not assist! As a suggestion, perhaps one of your New Year Resolutions should be: “I will treat my Suppliers (and my staff) the way I want them to treat me and my Customers”! Go on – try it!
3. OK, so your suppliers couldn’t, or wouldn’t take it back! Bad luck!
Re-merchandise stock with powerful signage. Remember the basics here: Big sign, Big
price, and maybe a couple of consumer benefits – NOT product features! Ensure that
merchandising is co-ordinated and that products are in the correct place within the store
and department. Remember, do not place slow sellers in ‘hot spots’ rather place them
adjacent to products that do sell in a Hot-spot area!
The only time that ‘hot spots’ would be used for clearance stock, would be during a promotion!
You may be part of a Group, Co-operative or a Franchise. Again here is an opportunity to
establish “friends” rather than treating them in a similar way that you may be treating some
of your suppliers!
Network with your colleagues within your Group – you never know, they may want what you cannot sell. A great idea would be for Groups to create a “swap-shop” (for use of a better term) on their websites! Food for thought?
The only time that ‘hot spots’ would be used for clearance stock, would be during a promotion!
4. Do you have “Mates” in the business?
Network with your colleagues within your Group – you never know, they may want what you cannot sell. A great idea would be for Groups to create a “swap-shop” (for use of a better term) on their websites! Food for thought?
5. Mark stock down very aggressively – once only.
You must avoid gradual mark-downs, it doesn’t clear stock! Remember, the cost price of the
stock is now irrelevant – the stock is dead! You must clear the stock at a price the consumer
is prepared to pay. Whatever you get for it is 100% more than what you’re getting now!
In conclusion then, there will always be slow sellers in your business; your job is to keep them to a minimum.
In conclusion then, there will always be slow sellers in your business; your job is to keep them to a minimum.
