This week the proverbial apple fell on my head.
Our main game is training. But, we do also do some consulting because (a) we are pretty good at it and (b) we find it a great way to stay current. (We need to learn too…)
Just his week it was a retailer; 22 years in the business and ‘knows everything’ despite the fact that (a) that had call in the rescue squad and (b) their claims that they were willing to learn.
In conjunction with the Landlord, we had decided that unless the retailer could produce (or at least was willing to try and produce) an accurate set of numbers for us to base our assessment and advice on, we would play hard ball.
I know some readers may disagree, but the reality is that the landlord is a property manager, not a bank, so financing under-performing businesses has to make sense from their perspective (improving or securing their ROI) because they should not be in the business of sharing the business risk as a bank would do.
During our initial conversation, the apple fell on my head. I realised that retailers can be classified based on how they make decisions.
There are four main approaches to retail decision making:
Let’s run though them quickly from the bottom up.
They rely on their experience; the ‘I-have-been-in-this business-22-years’ type of retailer.
So, when I ask him; “what is your average sale”, the vague answer is ‘somewhere between $30 and $50.’
They go on what the SEE.
Look at the store, it looks OK. Look at the customers in the mall – not enough. Look, at the car park – there is no one there but commuters.
They base there strategy and their responses on what the guy across the road is doing; or what the supplier said, or what they heard on the news - all anecdotal evidence.
I am still trying to find them. I dream about it… maybe one day.
Come to think about it, there may be a 5th type.
Maybe there are retailers who may consider all the angles (FAVE) to come to a balanced view:
• The ones who realise that you can’t survive on low-hanging fruit forever.
• The ones who know that success is sweat spelled differently.
• The ones who don’t look for the magical silver bullet.
• The ones who realise that the environment is the same for everyone.
• The ones who are willing to learn.
• The ones who can read between the lines…
I learned from the apple that fell on my head that when someone is locked into a single paradigm like that, there is no helping them.
But if I ever bump into one, I will let you know. And if you do, please let me know - or if perhaps you are one; I would love to buy you a coffee…
GANADOR helps retailers and their retail supply create high-performance businesses through innovative learning & development technology and programs.
PS: On Friday we published the Winners’ Circle, our occasional newsletter – and it is pretty cool even if I have to say so myself. This issue is ‘DESIGN YOUR FUTURE’. Click on the subscription link to be notified …