What’s Your Biggest Challenge as a Small Retailer?
My wonderful digital scale that I bought at Sharper Image 10 years ago finally gave out on me. So, I went to the mall to buy a new one only to discover that the Sharper Image store was lo longer there. What to do???
I had just seen a survey of 100 or so small retailers that were asked what their biggest challenge is going into 2013. “The Internet” was their biggest concern.
I decided to find out for myself, so I went to Google looking for a digital scale that measures body fat in addition to weight. I discovered that Walmart and Best Buy both sell one. Because I would like to see it before buying it, I called both stores and they were both “out of stock” but said they would “order it for me.”

Fancy, but…

A friend of mine recently told me that he buys all sorts of things at Amazon. I thought all they sold was books. So, I went to Amazon, found the same scale in stock at about the same price as Walmart, so I ordered it. I was eager to get it, so I checked the box that guaranteed delivery in three days. I failed to read the fine print, and when I saw the charge, I noticed that the cost of shipping was more than the scale. When it arrived I was excited, but when I opened it up I was overwhelmed by the complexity and the detailed directions. I finally figured it out, but in less than a month it broke.

KISS!

I trashed the fancy scale and went back to Amazon and ordered a simple analog scale. It was actually more expensive than the fancy digital one, but I was getting smarter now, so I became a Prime member and got it shipped for free.
The score was now two scales sales for Amazon and one lost sale for three different retailers simply because they didn’t have what I wanted when I wanted it. In the “old days” I would have waited or shopped around, but I found it easier to buy it from Amazon.

Apple

I went into the large Apple store in Waikiki to stock up on my favorite screen cleaner, iKlear. I looked all over the store but couldn’t find it. I flagged down a “salesperson” and asked where it is. She too couldn’t find it and offered to “go in the back and see if there was some there.” When she returned she told me that they don’t carry it any longer and suggested that I try a different brand. I didn’t want to do that, so I asked her if one of their other stores carried it. She didn’t know, so I went to their biggest store at Ala Moana Shopping Center. They didn’t have any either but agreed to call the Kahala Mall store for me. No luck there either, what to do???
By now I knew what to do. I went to Amazon, found it; in stock and stocked up!

Magnetic Eye Glasses Holder

I saw this really cool device on Shark Tank which allows you to hang your reading glasses on your shirt.  Misplacing reading glasses has been a problem for me for a very long time, so I thought, “This is just what I need.” I had no idea where to buy it however, so I clicked on to Amazon and searched for “magnetic eyeglass holder.” Exactly what I was looking for popped up, so I ordered it immediately. When it arrived and I began using it several people commented on it and asked me where I got it. I said, “I’ll get one for you.” I went back to Amazon and bought six more.

Drop Stop

A week later while watching Shark Tank I saw a young entrepreneur with an idea to block that “black hole” between your car seat and center console where things fall and disappear forever. I wasn’t even sure if it was on the market yet however I jumped onto Amazon and searched for Drop Stop and sure enough there it was. I ordered it immediately.

Bonuses

When I opened up the Drop Stop package I was surprised to find two other bonus items in there that I did not realize they were sending me. One was a cool wallet sized LED flashlight; the other a non-slip pad with two sticky sides to keep things in place. I guess they had me pegged as a guy who wants to keep control of things. They were right! I went back to Amazon and bought 10 of those to use as cool giveaways.

Sugar Scrub

I was impressed and amazed by a 17-year-old girl that came on Shark Tank promoting her Simple Gifts Farm Sugar Scrub which she had invented at 11 years old. She was so passionate and excited about the moisturizing benefits of this product that I just had to give it a try. I found it easily on Amazon and went through the first jar in no time, then went back and ordered two more.

Another Bonus

When my two jars of sugar scrub arrived there was a bonus in there; a Simple Gifts Farm Vanilla Lime Lip Balm. Hawaii has a way of drying out one’s skin and lips, so I am finding these products to be wonderful.

A Closer Look

I live on the 20th floor of our building overlooking Honolulu Harbor. There is always something interesting to look at from up here like cruise ships from around the world. When I moved in I had a crummy pair of binoculars that I could not keep focused. I had been meaning to buy a better pair for the past two years, but nothing moved me to do it. Then one day I thought, “Aha, how about Amazon?” You got it… I bought a cool pair of zooming binoculars and will start looking through them any day now.

Seeing Red

One day my wife said, “Please keep your eyes open for some special red lens glasses. This is what we use in art class to be able to see the distinct, subtle differences in colors. The ones we use came from a toy store.” I said, “Watch this” as I opened up Amazon and found what she wants in a matter of minutes.

Daily Surprises

It seems like I am ordering something new almost every day now and as a result, finding surprises sitting on my office chair every evening when I come home. As a person who never goes shopping, I have found this to be pretty amazing. I don’t even remember what’s on the way to me now.

ATTENTION SMALL RETAILERS:

Yes, you can compete with all of this, but not by standing by the register waiting for people to buy.

Here’s How:
In spite of the fun I have had ordering from Amazon, the truth is I would much rather be dealing with a live human being in a store.
But… You Must:
-Make shopping a fun experience.
-Let people know about you.
-Let people know what you have to sell.
-Have it in stock!
-Have Fair Prices.
-Be Sensitive.
-Make it EASY to shop.
-Never make people wait.
-Make every customer feel special.
Yes, the Internet has brought about some new competition and challenges. However I still find every mall crowded with shoppers. Your job is to convert them to buyers.
-People like to shop.
-People like to be around other people.

ATTENTION MANAGERS: Teach It!
Teaching “clerks” to become salespeople is the name of the game. Clerks “Ring Up Sales”; salespeople “Create Sales.” There’s a big difference. The best way to “teach” is by example. People will pay more attention to what the manager does than what he or she says. Do what you expect, and then inspect what you expect. You will then get what you expect.

Three Steps
Step #1 – Understanding: Teach your salespeople that customers need help, but won’t always ask for it. Customers have questions, but don’t always ask them. Customers will buy more, but don’t without your help. Helping is not asking, “May I help you.?”

Step #2 – Priorities: Teach your salespeople that customers come first. Whenever they are doing a task or chore, and a customer comes into the store, the customer goes to the head of the list of “things to be done”. Tasks, duties and chores will wait until you finish with the customer. Customers may not wait until you finish the chore.

Step #3 – Selling. Selling is “Giving the customer sufficient information to make an intelligent buying decision, be it Yes or No.” This definition from Retail Selling Made Easy must be at the core of all behavior, and must be done in a Pro-Active, yet No-Pressure manner. When it is, selling and success become easy.

It’s NOT Spying
“Opportunity Shopping” is a rapidly growing segment of our business. I am turned off by the terms “Mystery Shopping” and “Secret Shopping” as they infer “spying.” If you are shopping your competition that’s the case, but to shop your own business is “managing.” Business owners have a right to know what is happening with THEIR customers.
“Opportunity Shopping” is shopping for opportunities to be better. There always are some.

It’s Money in the Bank
Our clients tell us that my personal comments at the end of every Opportunity Shopping Report amount to a “Sales Class.” When owners and general managers visit stores they see employees on their best behavior. When salespeople do better everyone benefits. Salespeople, stores and landlords make more money; customers get a long lasting memory of the experience. Seeing behavior as the customer sees it is priceless. “Listening” to the customer will always generate more sales by way of better “Salespersonship.”

“MAHALO”
What do YOU do to make “Thank You” more memorable to your customers than others do?
Words are nice, but almost (definitely) expected.
To make your “THANK YOU” stand out, do the unexpected.
One great way to do that is with a simple e-mail to your customer sent the same day that he or she was in your store or business. It only takes a minute to do, but will last for a VERY long time.
Just create a template e-mail that says something like; “Thank You so much for visiting our store (or business) today. We really do appreciate it. If at any time I can be of service to you in any way, just let me know. And when you get a chance click here (type in your web address to make a link) and check out the latest on our web site. If you have any questions about anything you see in there, give me a call. I hope to see you again soon.”
There, I just created the template for you. Cut and paste this into a Word, Text or Pages document and then customize it a bit, save it and most importantly, SEND IT!

Somebody’s Got To Do It!

Companies spend enormous amounts of money on things intended to generate revenue. Things like, Rent, Advertising, Signage, Displays and Merchandise. Too many times they then expect these things alone to bring in the sales. The most they can do is attract a customer. What’s now needed to make these expenditures pay off is a good salesperson doing a good job. It all comes down to that. You can have a great location with great merchandise, wonderful advertising and beautiful fixtures and signs, but a poor salesperson can undo it all. Likewise a great salesperson can succeed when these other things are marginal. Your biggest challenge and most important priority should be in building and maintaining a first class sales sales team.

Hiring
Recruiting is a process, not an event; it never stops. Don’t wait until you think you need a salesperson. That may be too late. Always be on the lookout for someone better that your weakest salesperson. Weak salespeople talk to customers and miss sales that a strong one would make. Even worse, they turn customers off forever. For HR reasons, companies these days are afraid to hire and afraid to fire, but both are needed to be the best that you can be. The Dead Sea is dead because there is no outlet. Rain water comes into the lake and then stagnates. Life cannot exist in a stagnant environment. As soon as it becomes apparent that you have made a hiring mistake you should make a replacement. In order to do that you need a “bench” of people ready to go to work for you.

The Bench
In sports the bench is obvious. Talented athletes are sitting there waiting for their chance to get in the game. You most likely will not have the budget to hire people that are sitting on a bench. Your “bench” is your ad in the paper and a steady flow of applicants. The better your team becomes the more difficult it is to find someone better that your worst one. That’s a nice problem to have, and much better than “grasping at a straw” when someone quits and leaves. We hate it when people quit and leave, but it’s worse when they quit and stay.

Hire Attitudes; Teach Selling
Customers form a fast opinion as to if they like a salesperson or not. When they don’t, they don’t buy. Think the same way when recruiting or interviewing. Look at the applicant as a customer will. Too many times companies pour over a resume to see if the applicant has the ideal experience. They say things like, “She doesn’t have enough sales experience” or “He has had too much sales experience, he has moved around too much.” Some of the best salespeople you will find will come with no sales experience at all, and when they get it from you will be loyal and stay with you. Hire the right stuff and be willing to teach the easy stuff.

“Oh Well…”
I went into my local, always busy Apple store the other day specifically to get a bottle of my favorite screen and device cleaner; I Klear.  I could not find it, so I asked one of the employees where it is, and she went to look for it, but, like me she could not find it either. In the place where it was normally, there was a new supply of Bausch & Lomb lens cleaner. I told her that I am partial to the iKlear, so she offered to go in the back and find out where it is. When she returned she was a bit embarrassed to tell me that Apple is not carrying it in their stores any longer. She seemed as shocked by this as I was, since it is a product designed especially for cleaning and polishing Apple products.. I passed on the Bausch & Lomb alternative and came home empty-handed. Knowing that I was going to be on Maui for a couple of days I decided to wait until I got back, and and see if I could find it in one of the other Apple Stores here in Hawaii.

“Aha!”
But just before heading off to the airport I decided to take a quick look on Amazon.com to see if by chance they were selling the iKlear there. Well, they had a great supply, at a good price with free shipping, so I ordered some and went off to Maui.

“What’s This?”
When I arrived back at my office after a brief two day journey to Maui, I saw a package on my desk and quite honestly had no idea what it was. I had completely forgotten ordering the iKlear from Amazon.

“WOW”
So when I opened the package and found the iKlear inside, all I could think was, “Wow what service!” Perhaps not so coincidentally I had just had lunch on Maui with Jerry Kohl, the president of Brighton Collectibles, and much of our discussion revolved around Amazon.com and how independent retailers need to step up the way they do business in order to compete with Amazon. Jerry shared the amazing facts with me that Amazon last year had $68 Billion in sales with a loss of $300 Million. When I looked shocked, he said, “And they don’t care, because they are out to put all of the small retailers out of business, at which point they can then do whatever they want.”

“Aloha”
While I have no doubt that some if not many retailers will eventually crumble in the face of this charging giant. But then again that’s what people said when Walmart, Costco, Best Buy and other “Big Box” retailers came along. Personally I have faith in the small independent retailers, and know that the good ones will find a way to become even better as a result of this competition. The weaker ones will go away, perhaps just a little sooner than they ultimately would otherwise, putting them out of their misery. A friend of mine refers to things like this as the “Exterminating Angel.”

As nice as it was to have the iKlear package sitting on my desk when I got home, I quite honestly would have rather bought it while I was in the Apple Store. I know that there will always be plenty of people who enjoy the shopping experience and like to feel and touch the things they are considering buying. As Amazon.com is flourishing, I continue to see crowded parking lots at the malls, stores full of customers and shoppers strolling through the mall carrying their bags.. What a great time this is!

Shortages are Costly; but Controllable!
There are two basic sources of missing merchandise;
1.) Customer theft
2.) Employee theft.
Statistics show that employee theft is the largest.

Employee Theft:

Employees have the best opportunity to seal if so inclined. They know what your security systems are, who is watching and when. It is almost impossible to keep an employee that wants to steal from doing so. They can steal money as well as merchandise.

What can you do?
You can be more careful when hiring. Do background checks and call references. When in doubt, do without. A person who will lie to you on a resume may also be inclined to steal from you on the job.
When scheduling, keep in mind that it is easier to steal when alone than when working with another employee. There are many good reasons to have people working with someone. An even bigger reason than theft retardation is added sales. Once one person gets busy with a customer, that’s when more customers come into the store, and they are not as likely to be serviced.

Happy employees are not as likely to steal, so keeping people happy is another deterrant. Watch for trouble signals. When someone starts complaining (about anything) it may be time to move on.

Customer Theft:
The pros are going to get you; accept it. That being said, you can lessen their chances of being successful in your store by keeping a few simple things in mind.
The biggest deterrent to customer theft is an alert salesperson. The simple act of making eye contact and greeting a customer will cause some would be thieves to turn around and leave.
Your constant attention drives shoplifter’s nuts. A person intending to steal from you gives up as a result of your willingness to help with information and buying decisions. It is interesting that the things you can do to lesson theft are the same things that increase sales.
Thieves know how to remove security tags, so check the change room when someone leaves and limit the amount of merchandise taken in there. When someone comes out of the change room looking like he or she gained a few pounds in there, be suspicious.
If you see someone put something in his or her pocket or purse, say something like, “I think you accidentally dropped that Rolex you were looking at into your purse. Will you please take it out?”
There is no crime committed until the culprit leaves the store. Should that be the case, make a good note of the person’s description and license plate number, and then call the police. Don’t be a hero! People about to get busted may become violent, Your safety is more important than the merchandise. The merchandise is easier to replace than you are. Be alert, be aware, and be cautious.

Salespeople hate hearing, “No.”

Jerry Kohl, the founder of Brighton Collectibles, once told me that he used to require reps to come to a weekly meeting armed with two “No’s.” My initial response was, “Wow that must make for some negative meetings.” Jerry said, “No, you would be surprised how many ‘Yes’s’ they found looking for those two ‘No’s.’”

Interesting; by making the dreaded “No” okay he got people calling on stores that they might otherwise drive on by thinking, “No, they wouldn’t be interested.” They went in thinking, “I’ll get one of my required “No’s,” and damn, it became a “Yes” and they had to keep on looking for the “No’s.”

In Retail Selling Made Easy I say, “If NO to the wrong item is not alright with the salesperson, then YES to the right item will not be okay with the customer.”
The minute you try to sell me something that I don’t like, there is something else I don’t like.
Guess what that is.

It’s Not For Everyone
Personal appearance and body posture make up an important part of a customer’s first impression. And, everyone knows how important first impressions are.

In SUCCESS MADE EASY I tell a story about once being criticized (many years ago) for having my hands in my pockets during a presentation. I was offended and defensive at the time, but later realized that it must have been true. To find out, I sewed my pockets shut, and sure enough caught myself repeatedly trying to put my hands in those closed pockets.

Look Alert and Sharp
I tell this story often when I see people who are sitting, slouching or having their hands in there pockets. This happened just the other day. The salesperson with his hands in his pockets said, “I don’t know what to do with them.” I handed him a pen that was on the counter and said, “Just carry this with you.” He smiled, and I left.

YEAH!
When I visited his store a few days later he said, “Hey, check this out” and showed me that he is taping his pockets shut at work. I am always impressed when someone takes positive, corrective action as a result of some well intended criticism. It’s not always easy to do, but it says a lot about the person and makes a big difference.

 
“Buyer Beware!”
I see too many signs saying, “No Refunds” or “All Sales Are Final.” I am also hearing of retailers that will only give a customer making a return a store credit, not a refund.
When I see these signs, I think, “Buyer Beware!”
I know of some retailers that post these signs to keep unhappy customers from returning. I think you should want all customers returning; for ANY reason. Doctors say that a broken bone, once healed, is stronger than it was before broken. I think that the same can be true with an unhappy customer made happy.
On the other hand, an unhappy customer left that way is likely NEVER to return, and just as likely to tell people why.
It’s challenging to obtain customers; you should want to keep the ones you get. You should never let customers walk away unhappy unless you really want to lose that customer (and his or her friends) for good.