10 Things to UNLEARN if you want to run a successful retail business

  1. Staff are not a minimum wage commodity. They are the key touch points with your customer. Retailers say they can not afford to train them (paying the service provider, paying the staff member while they are not working and paying the replacement staff member.) I argue that you can’t afford NOT to train them.
  2. You can’t keep adding impulse items indefinitely. Eventually it will dilute what you do and when you hit the tipping point your customer will just think the store is full of crap and you will struggle to win them back.
  3. All you achieve by piling up stuff in a discount bin at the front door is showcase your failures and condition your customers to expect more cheap stuff inside.
  4. The things that made you successful yesterday or even today will not maintain your success.
  5. NASA may have sent a man to the min on the back of the cheapest tenderer for every product, but you can’t build your business on the cheap. Everything that is cheap or free, is cheap or free for a reason.
  6. Stop selling features. Customers don’t care about the biggest or fastest. They care about how bigger of faster might benefit them.
  7. Stop selling on price – people buy value. Do you drive the cheapest car you could find? Are all your clothes the cheapest you could find? 99% of people find the product that meets their needs and THEN don’t want to pay more than it’s worth.
  8. Customers are not thieves. 98% are honest and you should stop punishing the good ones because of a few bad apples. MOST of your shrinkage can be attributed to your STAFF. See point #1.
  9. Australians/ Westerners are conditioned to pay full sticker price. That is good for retailers if consumers act that way, but you don’t have to act that way with your suppliers. There are at least 20 things you can negotiate with your suppliers other than price.
  10. A gift has two buyers. The person in front of you in your store may not be the most important buyer. Understand the person who is NOT there in order to make a sale.

Hope that helps. Have fun…

Dennis

Ganador: Solutions for the retail supply chain (landlords, brands, franchisors etc) to engage their stakeholders (retailers, communities, consumers etc) effectively.