Getting Ready for the Busy Season

From USAToday

Strategies: Nine tips for small business holiday success

Sleigh bells ring, are you listening? If you run a business, you should be. The holidays can be an important time of year for all small companies, and you want to make the most of this busy and stressful time.

If you’re in retail, a good portion of your entire annual sales may depend on how you do the next few weeks. But in every industry, the holidays present unique challenges and opportunities. Click here for more…

From JCK

Study: Small retailers less hopeful about economy

October 12, 2009

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New York–Although retail sales rose in September for the first time in 13 months–fueling hope among some observers that the worst is behind big retailers as they head into the holiday season–small retailers are much less hopeful, according to a new study of small businesses released by American Express OPEN.

Retail owner respondents were the least optimistic about the current business environment among all small-business owner respondents, as well as other industry sectors, according to the American Express OPEN Small Business Monitor. Click here for more on this story…

The Art of Successful Selling

Selling is the art of asking questions, then providing solutions to Customers’ requirements.
Show interest in your customer.  Find out why they bothered to come in to your store. There has to be a reason, and more often than not the reason is for some type of special occasion for them.

Steps

ASK, ASK, ASK.  (Never assume)

• Determine why the customer is in your store today.
• Determine the Customer’s requirements. More often than not, they will be occasion related, not product related.
• Determine if the customer had any particular products in mind to satisfy the occasion.
• Determine the Customer’s thinking on price.

Apply product knowledge to sell “benefits”, not features.

• Sell with emotion, defend with logic.

Never show too many items at one time.

• Use an elimination process.

Take the Customer to a point where they are ready to say, “I will take it”.

Tips:
➢    ASK questions so you have an idea what your Customer is looking for.

• Is the gift for a special occasion or just because?
• When is the occasion?
• What price range do you have in mind?
• Have you an idea of what would be suitable or can I help you with ideas?

➢    The more questions you ask to determine what your Customer is thinking, the faster you can start showing your Customer items that will be of interest to him/her.
➢    One of the most important things to ascertain is the price range your Customer is thinking.  If you show items they cannot afford, it will frighten them off, or equally as important, you may show items of a lesser price than the Customer is prepared to pay.

• If your Customer gives you a price range of $1,000 – $1,500, always show items ranging from $1,400 – $1,700, rather than $1,000 – $1,400.

➢    Explain the BENEFITS (not features) of the products.
For Example
“Because the Diamond is held in place by six claws, it is far more secure than some of the cheaper four claw settings and this is really important as it protects your diamond against loss should you accidentally catch and damage a  claw.  You wouldn’t want to lose a Diamond as beautiful as this.”
(The BENEFIT is, “you won’t lose the Diamond.”)

➢    Product Knowledge is essential to build Customer’s confidence in you.

➢    Never try too hard to sell.  It is obvious to your Customer and it makes you appear pushy.

➢    Never pre-judge Customer’s spending ability.

➢    Sell on emotion and defend on logic.

➢    Always have item touch customer’s flesh, get them to try on the bracelet, chain, watch etc. and look at it on.  Have a mirror at the counter.

Summary

• Ask ask ask questions that will allow you to show only items to the customer that will appeal to their current need
• Present Benefits, not Features
• Work with the customer to take them to a point where you know, if they are going to buy today they are going to buy the item they have settled upon.

Planning is Preventive Medicine

No doubt, the economy can be blamed for much of the frustration business owners feel about consumer spending and lack of sales.

Unfortunately, there’s oftentimes another party to blame in the mix of slumping sales and pathetic profits… Yourself. Yes it sounds harsh, but sometimes reality isn’t so pretty.

Everybody has taken a hit, but the degree that you’re feeling the pain largely depends on how you’re running your business. Are you lean, organized and well-thoughtout? Or are you ballooning with debt, reacting with desparate marketing attempts and lowering prices?

Even when you’re swimming in success, you need to run lean so if something should happen, an external unanticipated crisis (such as a downturn in the economy or theft or a hurricane) you can wave the storm a little easier. There’s no magic formula, but you can’t but a value on how being foward-thinking can help ease potential frustration.

So now that we’ve found ourselves in a pickle of a mess, what can we do?

For one thing, don’t let your inventory get old. Identify what’s selling and and buy better. Plan. This is so important. Every business should have a business plan that is updated annually. A marketing/ business plan is like a roadmap for youto travel on. When an advertiser pitches you on a “great” opportunity you can educated decisions, you’ll know what you spent money on that worked and what didn’t and you’ll have your goals and objectives in mind when you make choices.

Another big problem is people are not gathering information (or the right information) and sometimes, even when they are; they’re not using it. If you have a system for managing your information but aren’t using it to the fullest potential, why did you buy it? Go to seminars (or send an employee), attend webinars, learn, learn, learn! Many small stores are wasting so much money by not using what they have. Assign a designated employee to manage your information, you might think you’re a small business, and maybe you are, but that’s what you’ll surely stay if you don’t run a lean business like the big stores.

Is Your Business Prepared for H1N1?

We’re all familiar with H1N1 flu. If you have children, chances are that you’ve already been taking the necessary actions to prevent the spread of this potentially serious pandemic. This fall and winter, the government is reaching out to small business owners to aid in the spread.

This week the Small Business Administration, Centers for Disease Control, and Department of Homeland Security published “Planning for 2009 H1N1 Influenza Season Preparedness Guide for Small Business” on its Disaster Preparedness site.

It’s important for small business owners understand the impact the 2009/2010 H1N1 flu could have on their businesses. The most important aspect to take away from the guide is the need for small business to develop and communicate a plan so that in they can be prepared and responsive to employees.

While no one can predict the severity of H1N1 this season, it’s wise for business owners to be aware, take the necessary precautions and communicate with employee to help prevent spread. Small businesses account for the nation’s largest employers, so it’s important that we, in the government’s words, “…ensure the wheels of the nation’s economy continue to turn, even if faced with absenteeism, restricted services, and supply chain disruptions…”,

H1N1 preparedness steps that the government recommends you review and apply as appropriate to your place of business:

1. Identify a Workplace Coordinator(s), to handle all issues relating to H1N1, (prior to any outbreak) responsible for communicating with health providers and setting up a system for dealing with ill employees. Someone who will assist ill personnel as the main contact person.

2. Since employees may need to stay at home to care for sick children or school closures – so be prepared. Evaluate your current policies for Leave, Telework and Employee Compensation ad have a plan in place.

3. Identify Essential Employees and Business Functions – Maintaining communication with employees (vendors and customers may also be included) should your business be impacted by H1N1 is essential.

4. Communicate Plans with Employees- Communicate your preparedness plan, provide helpful information with health tips.

5. Prepare Business Continuity Plans – Maintaining business operations is crucial. Absenteeism and other concerns can be planned for. Go to Business.gov http://www.business.gov/expand/emergency-preparedness/disaster-plan.html.

6. Establish an Emergency Communication Plan – Most businesses already have this. If yours doesn’t…you should. Identify your key business contacts (with back-ups), the chain of communications (including suppliers and customers), and processes for tracking and communicating business and employee status.

Additional Resources

• Workplace Planning
• http://www.cdc.gov/h1n1flu/business
• Business.gov Emergency Preparedness Guide

Inventory That Works

Buying merchandise that will get you the highest return on your investment is a basic business principle. Oftentimes however, buying purchases are made based on style preferences or instincts, which in the long run may not result in customer buying. Another approach to buying is based on successful inventory that has already resulted in customer purchases. Tracking what sells and buying more of what the customer demands should be managed through your inventory control system. By running daily reports of top selling or fast selling merchandise, you can easily replace a popular item and stay within your buying budget. Tracking your budget ensures that you control your finances and prevents you from having more inventory than you really need. If you aren’t replenishing fast selling items customers will see more of the same old merchandise they saw on their last visit to your store. Trying not to let your inventory age more than 2 years keeps your displays looking fresh and current.

Investing in Technology

Investing in technology is a daunting task. Anything new requires some change and change can be intimidating. Being prepared by having clear business goals will make the process smooth. If you’re looking to increase profitability or market share, it’s important to have a clear understanding of both the short-term and long-term aspects of your decision.

Much has changed since the introduction of information technology. Things that were once done manually or by hand have now become computerized operating systems, which simply require a single click of a mouse to get a task completed. Information technology enables business owners to streamline processes and to gain constant information in ‘real time’ that is up to the minute and up to date.

Our world is smaller with technology. There is now an interdependent economic system whereby we share information despite language barriers and geographic location. Communication has also become cheaper, quicker, and more efficient. We can now communicate with anyone near or far away, thanks to video conferencing, email and texting.

Computerizing the business process helps organizations more cost effective and ultimately more profitable. When you increase productivity, increased profits will follow.

Streamlining your business systems enables the organizations decision makers to have up-to-date information to make split-second decisions with confidence and ease. Thinking about cutting costs? Check your stats and find which vendors aren’t performing for you , likewise, you can order more of what’s selling. Or who’s selling. Which salespeople are performing and who’s costing you more than their worth. What ads are working for you? Do you have referrals from customers, which customers are sending in the most referrals?

Gathering and using this information is possible simply by streamlining your businesses information technology system. Making sure everything is integrated and used to its maximum capability makes your dollars work harder for you.

Referral Customers

A man comes into the store and asks to see a specfic salesperson on the reccomdation of a friend. When introduced to the salesperson, he states who referred him. It’s easy to forget important details after the next customer comes in, how do you track referrals and how do you thank customers that sent in new clients for their loyalty?

Many stores thank customers who spend higher dollar amounts, let me ask you, if you knew lower end purchases might return to spend more, wouldn’t you want to thank everyone equally?

Are you tracking and acknowledging referrals?

Think of it this way…imagine you have a niece who just turned 10. You sent her a gift, something small, and mailed it. Seeing as you never received a thank you note, you weren’t sure if she ever received it so you had to call her mom just to check. How would this make you feel? Will you send her another thoughtful gift? Probably not. Would you have felt better if she had simply acknowledged your gift? Absolutely!

How is thus any different from your business?

Regarding referrals. If you give someone the name of a contractor you like, as a good business to deal with and they never let you know if they ever used or how their experience is, won’t you wonder?

It’s so easy to build loyalty if you not only provide great service and terrific products, but also convey a feeling that you truly value that the customer has decided to do business with you. There are many stores to choose from…why do you return to the businesses you frequent?

Never Judge a Book By the Cover

I’ve heard a few stories lately that involve salespeople who were quick to judge and as a result lost some big sales.

Particularly in the current economic climate, such ignorance has me speechless. Salespeople should want to make people feel welcome, not push them away. The following two stories should illustrate the importance of good customer service and what NOT to do when selling. We all hear these stories, but they can be a good reminder for everyone to stay on task.

The first story takes us to a Toronto store in an affluent part of the city. A customer walks in on a dreadfully rainy summer day. The store was empty, and the staff obviously preoccupied with personal conversations either on their cell phones or with one another.
The customer, on his lunch break, stopped in to shop for a pair of 2 ct. diamond earings. He was referred to the store by a friend. When he walked in, he was not so much as acknowledged. He liked at the merchandise in the cases and waited for what seemed like awhile, but not so much as a nod or smile was granted. He left and walked down the street where he spent nearly $20,000.

The other story took place near Portland, Oregon. A women went to the gym and when she was finished, she decided to stop in a nearby jewelry store with some diamonds she was awarded from the recent settlement of her mother’s estate. She planned to reset the stones. Having recently moved to the area, she was looking for a family jeweler and was referred to the store by a new friend. Coming from the gym, she didn’t look the part of shopper, yet she would never have expected the treatment she received, especially in Portland. She walked in and like the previous story, she was not greeted yet it was not terribly busy. All the salespeople were either on the phone, or chatting. There was one other customer. The people who eventally tended to this guest was a young woman, who as it turns out has close connections with the owners. The salesperson was nothing shy of rude. She made our guest feel like she was interupting, but she trusted her friend and made a $5,000 plus pendant purchase. Will she return? Probably not.

The problem is that some stores don’t track customer feedback, pr of they do, the may not always make decisions based on the feedback or statistics provided. Never keep people on staff for personal reasons, it will alwats interfere. If you do maintain a personal approach to staffing (employing friends, relatives or children) expect from them what you would from unrelated employees. Don’t let your staff use cell phones on site and require that they put on a “happy face” with your customers. You can’t judge a book by it’s cover; you never know who, why or how much someone is willing to spend until they cash out. Treat each guest as a big spender.

Your Image Matters

When it comes to marketing, you cannot underestimate the value of consistency.

In challenging economic times, making sure your materials communicate the message you wish to convey to existing and potential customers is key in making your dollars work for you. A well thought out campaign that marries with your existing materials and emphasizes the strengths of your business in a clear and concise manner is essential.

This of course requires that you have a clear understanding of your business. Now your thinking, “of course I do!” but do you?

To have a clear understanding you should be able to list your strengths, weaknesses, opportunities and possible threats. This is called a SWOT analysis and doing one gives you incredible insight into your business and allows you to make decisions based on facts rather than instincts.

This planning and organizing process doesn’t have to be done by one person hidden away at a desk, but rather can involve your salespeople to gain their valuable first-hand experience and knowledge. They’ll feel more valued too for your asking them for feedback.

So now you can see that yes, you need fantastic materials to have a consistent look and feel, but to make them work for you, you really need to know your business (and your audience – but we’ll discuss that in a future article).

Are You Competitor-Oriented?

I’m assuming you know your companies strengths, do you know your competitions? Do you know their weaknesses? What does the customer view as a value that your competition offers? What are your differences?

In order to create an effective competitive strategy, you must take some time to answer these important questions. In fact, success requires that you take time to work on your business, not just in your business.

Let’s face it, customers have choices. Let use clothing as an examle. As a consumer, you know where to go to get the best quality, the hottest trends, best deals, or unique styles. What makes your store any different in the minds of your customers? What would your store represent in your community?

Don’t just look at competition as one store compared to another. Look at products that segment your business. Each segment can be looked at to carefully analyze competitive products offered at other stores. This will enable you to identify market opportunities or trends that might be fading.

Do you have a vision? A business with a vision or philosophy, functions with a bit more ease as it’s easier to make decisions when they can be evaluated in terms of whether or not they are part of your business vision.

Understanding your competition will also provide you with information on how to provide improved customer satisfaction, to find new opportunities, and the ability to make decisions quickly and with ease.