Specialty Retail Blog

On Timing

A key element in motivating a sale is timing. A customer who has forever to make the decision will normally not make the decision to take action. That is why sales are touted as “this week only” and the stores that turn their merchandise the fastest create the logic: “If I don’t buy it now, it will be gone tomorrow.” Timing is what compels the prospects from an emotional decision and creates the urgency to proceed to buy now.

Are You Selling Words?
By Evan Wise

Selling words – does that sound like a ridiculous concept? It probably sounds almost as unbelievable as selling water in bottles. . .  Yet all of our thoughts, opinions, feelings and actions are inter- twined with or because of words that we read, see and hear. How much of your marketing is wrapped up in words? Lots!

Words are so effective at swaying opinion, sentiment and action that they deserve much more attention than they get. When the “estate tax” became the “death tax” by political wordsmith pundits, public sentiment made a drastically sharp turn against it. It was the same tax but different words! Choosing the right words to sell and market your products can have the same dramatic impact. In your battle to create the right perception, the right words will give you the edge.

How do you find the right words? That is a skill for sure but there are some guidelines that can certainly help you reach deep into the emotions of your customers!

1. Know the members of your audience and what they already believe. Don’t be afraid to go for the heart! The milk industry knew that their customers already liked milk. The question “Got milk?” was a huge hit as it reminded the customers to act on what they already believed.
2. Be interesting and new. Just as customers buy the new merchandise, they are also intrigued by new ideas. Don’t tell them what they already know; tell them what they already don’t know. There is a big difference between “We have the latest styles” and “Have you tried on a shirt made from bamboo?”
3. Personalize, humanize and validate what you say. Tell a story to create interest. Make the story about you or the customers to give it meaning. Give them the measurements to validate the message. In our M1 marketing, we don’t just say that we have the best demand forecasting in the industry. We give the measurement: We have been over 92% accurate in forecasting sales. You can tell people to buy the “five-finger toe shoe” or you can tell the story about how your knees allow you to run twice as long in those shoes.
4. Make them see it! Morton Salt’s slogan “When it rains, it pours” makes you visualize the product. If you are just telling people what you want them to know, they may not care. If they can see it, there is more chance they will act. After all, seeing is believing.
5. Keep it simple. People want clarity and simplicity.

These five guidelines are a valuable test for your selling and marketing messages. Getting it right is not easy but thinking about every word and phrase can help you get more bang for your marketing buck. Helping sales staff hone their language and message can help increase UPT and $/T. Imagine the results you can achieve when you invest in innovation when it comes to the words you convey. Prosperity comes from a culture of paying attention to the details. Sell your words!

John Adams Named Management One® Founder

John Adams (San Diego, CA) received Management One®’s highest honor when, during the annual meeting in Tucson, AZ this past month, he was named as a Management One® Founder. The award is given to affiliates who, over a period of time, give outstanding loyal, dedicated and positive contributions for the sake of the entire M1 team. Since joining M1, Adams strove to help others in the group in such ways as sharing his proven sales techniques, leading a team to go after big retailers, leading SRO and offering assistance when affiliates have personal adversity. When the M1 mentoring program began in 2009, Adams headed the instructional and nurturing platform along with Dennis Levine (Cleveland, OH). The program has been a great success on initiating the careers of new affiliates. We welcome John’s insights and work ethic as a Management One® Founder.

Excerpt from Bloomberg Business week

Customer service: marketer vs. merchant

By Jeanne Bliss

Thinking Like a Merchant

Anderson explained what he meant to be a “merchant” in this way:

“We are all merchants. And for me, that is an honorable and vital identity—even in this day when it is fashionable to hold forth on the subject of marketing in all its forms. I don’t decry that exactly, but I’m more comfortable considering myself a merchant. And here’s why.

• A marketer deals with many; a merchant deals with one.

• A marketer moves from the mind; a merchant moves from the heart.

• A marketer is logical; a merchant is perceptive.

• A marketer does business across the world; a merchant does business across the counter.

• And finally, a marketer bets his all on a system; a merchant bets his all on his store.”

And in a world where products and services are available in hundreds of variations, the companies that think and act in this manner still get a disproportionate piece of the overall pie.

Too often retailers get swept up in the latest technology to methodically reach out to prospective customers. The thinking is that if we email 5000 and get 2% response we are doing well. You will never do this better than the national chains and big box stores. This article is great in getting retailers back to their strength. Being a merchant. Making customers and sales one by one.

Evan Wise

My client had come through 2009 with sales down and profits up. That was good news. She recognized that she had done better than many retailers, but she wanted to get much more from 2010. Bottom line, she wanted to make more money – and expected me to show her how. My problem was that we have been working together for 5 years, so she was already doing so many things right!

I worked her numbers the way I always do using my inventory planning solution from Management One. I analyzed her store using their trademarked Fresh Factor. The Fresh Factor is a guide to determine freshness of current inventory. The purpose is to illustrate the importance of having a flow of fresh goods and to see how sales react to the “newness” of inventory. I have used this formula with many retailers as part of my decision process in determining current open-to-receive. It is common for sales to improve as the “Fresh Quotient” increases.

I uncovered areas of profit that could really explode in the next 6 months. We discussed those classes and implemented her open to buy plan. She followed through very well.

The open to buy plan I provided her solves the question of how much inventory to buy and when should the inventory arrive. It is the blueprint that accurately forecasts sales and inventory. It produces a dynamic cash flow management tool and guides me to create a cash flow plan that works for clients. End-of-season markdowns are reduced and stock-outs minimized.

After 6 months, we compared the results from this year to last year. The numbers were fantastic!

$31,262 Sales Increase – I had accurately predicted trends and the client made sure to have the inventory as I had planned so she could maximize the sales in those classes

$18,451 Fewer Markdowns –because I had correctly forecasted the sales and inventory requirements

$11,621 Additional Profit Potential Dollars due to increasing the initial markup over last year

$53,976 NET INCOME INCREASE.

In addition, the client’s cost of goods was decreased by 5.7% according to her financial reports. Let me stress, that this client was already highly profitable! Another way of saying this is that her GROSS MARGIN INCREASED BY 5.7%.

The client is very happy.

Cathy Wagner

(847) 226-1375

Affiliate- Chicago

“There is more than one way to look at
a problem, and they may all be right.”
~ Norman Schwarzkopf

Doug Hilficker’s (Chicago, IL) client, Good Things, had a wonderful article about it featured on a local television station in Twin Cities (Minnesota) where the retail gift store is located. The store’s owner, Tyler Conrad, was interviewed regarding the secret to the success of his business.

James Hallman (Atlanta, GA) had two clients featured in a fashion article by bmetro, the Magazine of Metropolitan Birmingham Living. Lesley DeCastro, owner of Manhattan South, and Bryson Wilson, owner of Swanky Stork, conversed on the online publication, “trading tips from the world of retail” and, at times, some of the good advice they learned from James.

Everyone strives for good results in their business. Cash in the bank, profits on the bottom line and sell through that keeps the shelves clean at the end of the season all sound like a pretty sweet situation to most retailers. There is danger, however, in good results.

Good results can keep retailers from attaining great results. The great retailers, the best of the best, are always innovating and coming up with new ideas, new lines and exciting events to drive more traffic and attract new customers. The good retailers have a solid client base, vendors who work for them and a marketing program that is comfortable. These are the retailers who do not feel a need to change or improve. They are not the ones who are innovating and striving to learn more and achieve more. They are comfortable with their “good” status quo and their good results keep them from getting great results.

The problem is that customers get bored with stale goods and are excited with fresh merchandise and fresh, new marketing approaches. Technology is changing and there are tools that provide ways that can help to make businesses better. Outsourcing parts of the business to experts who can do things that a busy retailer cannot find time to do – or who can even do a better job than the owner in this aspect – can make a marked improvement on the bottom line.

Besides finding ways to excite the clients, training staff in new techniques and finding ways to get employees excited and motivated can make the whole store more vibrant and attractive.

One thing that goes a long way to motivate employees is to let them create their own ideas for improvement, be allowed to implement them, have them be successful and then praising the originators publicly for the ideas and the effort. That policy blazes a very clear trail toward great results!

There are many factors that all contribute to the success of a business. Not improving those things because they are “good enough” is the start of big problems. Improving each of those multitude of factors is what can add up to a great store!

The strength of a company depends on the strength of the employees. Many times sales are made solely because the people at the front line are knowledgeable, helpful and friendly. A smile and customer recognition is a great asset to selling and building sales and is often more important than great product!

Providing a great customer experience starts with a staff that is comprised of people who get together well. When the entire “crew” understands each other, a foundation is built that has a meaningful and tangible effect on the bottom line. Everyone learning about each other’s likes and dislikes can be as important as understanding the skills and abilities each person possesses. The understanding that is reached is critical to helping an organization work together to achieve results, provides a positive customer experience and builds a profitable business.

Evan Wise

I was at the IASC (Skate retail industry) meeting on innovation last week in Orange California  and was asked to address the group. My comments were based on the need to innovate to keep the industry alive. Any industry only lasts as long as it is needed and relevant to its target market. Innovation feeds that need and makes it grow.  My favorite quote on the subject is one from Henry Ford, ” I f I asked my customers what they wanted, they would have said a faster horse.”  That is the essence of innovation. We can’t get caught by what is wanted but rather, we must be able to envision what is needed.

I talked also about three methods to help them innovate.

Idealized Redesign

Winstorming

Improv

All three techniques are valuable when new ideas are desired. The gathering of vendors, retailers and consultants brought together many differing views and outlooks. That is a rich environment for innovation. I was not able to stay for the second day but I hope that they were able to not only innovate, but also develop action plans to turn the ideas into reality.