Showing posts with label Feature Article. Show all posts
Showing posts with label Feature Article. Show all posts
Clearing Slow Sellers
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.
Ten reasons why strategy implementation fails
When it comes to strategic planning, the humorist Sam Levenson makes a keen observation:
‘Some people are so good at learning the tricks of the trade
that they never get to learn the trade...’
The result is that we have a document that is so generic – full of platitudes and fancy words (the tricks of the trade) – that we land up with something no one can really relate to. And if we can’t relate to something, we seldom become involved.
Here are nine more reasons why strategy implementation doesn’t pan out as intended:
1. The map does not closely resemble the territory
Just like a map, a strategy can show us where we are,
Is your store maximised & optimised?
Article for DIY Trade News
IS YOUR STORE MAXIMISED & OPTIMISED?
These have been tough times for many retailers. Economies have lagged, consumers are conservative, and competition is tight. There are many innovative ways small and nimble businesses can add value to their products and services to grow revenue, retain and add customers, and be competitive. Heavy or persistent discounting can hurt your bottom line and risk customer loyalty. As a small independent retailer there are smarter ways to offer a unique experience that cannot be matched by larger chains or stores that are online only..
Store optimisation is achieved through a combination of factors that may be unique to each store.
Start with the solution and GROW sales
If you have attended a retail of business conference
over the last year, I suspect at least one speaker has addressed the need to
get to know the Millennial shopper. I am one of those presenters that has been
promoting the need to respond to a new consumer. 2017 is the year when the
Millennial shopper starts spending more money in the retail environment that
the Baby Boomer and we need to be develop our market now to grasp the
opportunity and challenges this will present.
Millennial's do think differently to Baby Boomers. One
example is they start with the end solution in mind and as a result if a sales
person wants to grasp a Millennial's interest and engage them they must use a
different technique to how they would engage a Baby Boomer. With Baby Boomers
you need to proceed step by step and build the picture moving forward.
Millennials' want you to start with the solution and work backwards when
providing the same advice.
Forget about your Products
Forget
about your Products! ... Think People!
- By Graham Bush.
In the current economic trading conditions,
business is tough, we all know that, but what are you doing about it?
A
message for Owners and Management;
I believe that there are three ways to grow
your business.
1.Spend money on Marketing /
Advertising; - Promote your business!
This is one way of getting new customers
through your doors, yes it could be expensive, but there are cost effective
ideas as well.
How many of you have “miss-tinted” or
“returned” tinted paint you are stuck with?
I have visited many hardware stores over
the years and on entering the Paint Dept I am met by a mountain of old tins of
paint, either dented or miss-tinted! What impression are you giving the
consumer? I believe you are giving the impression that you make a lot of
mistakes – do I trust you to mix my paint, your customer will ask themselves.
The answer…….get rid of them! Donate to
good causes; the local Hospice, SPCA, orphanage, old age home, AIDS clinics
etc.….you choose. Then get your local newspaper to write an article about it.
Nothing wrong with good public relations!
How many damaged ‘boxed” items do you have.
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