2 minute read
OPERANNG OPPORTUNITIES
WALLY LYNCH
Paid Associates
PO. Box 741623 Dallas. Tx.75243
THg number one question continues
I to be: when evervone has the same merchandise at the same price, how do you compete?
It isn't easy, but there are a lot ofpeople getting it done. Here are some possibilities.
There are six retailing variables used in planning to develop a positioning strategy within the market place. The variables listed can be manipulated to make a difference.
PRODUCT If possible, be part of a structured buying group. Either way, understand GMROI thoroughly, utilize and manage it. One additional inventory turn can be equal to as much as l0 margin points. The days of four turns won't cut it. Six is norm these days and l0 to l2 is doable. Be sure that your product mix stands for something. Make it easy for customers to know why they want to buy from your company.
PRICE Matrix pricing will provide a structure whereby you can compete apples to apples. It generally takes eight prices to do it. Cash and carry, charge and carry, cash and deliver and charge and deliver with consumer and contractor pricing. Some call it compensatory pricing. There are other variables depending upon your situation. Such pricing removes doubts in the customer's mind and generally locates cracks in a competitor's armor.
PRESENTATION Physical facilities continually take a rap and are ineflectual in attracting all customers if they're dirty, unkempt or otherwise unattractive. Everyone goes back to the place where they are made to feel comfortable and welcome. No competitor can have your location, but it's what you do with it that counts.
PROMOTION This implies com- munication, talking to your customers about why they should buy from you, telling them about your company and its products, establishing rapport. How many friends do you have and hold if you never speak or write to them?
PERSONAL SELLING Go into your competitor's store as a customer and see how long it takes before someone tries to take your money. See if you can get someone out from behind the leaning station so that you can give that person some money. Have a friend do it in your store. People do things they feel good about in places where they are made to feel good. Salespeople trained in personal selling are barely visible in our industry.
CUSTOMER SERVICES What customer services make you feel good when you make retail purchases? Have every employee make a list. You'll be amazed at the possibilities you'll uncover to generate customer satisfaction.
Sounds like apple pie and motherhood, but it is this back-to-basics approach that makes a difference in the bottom lines.
Check out our Calendar on page 20 for information on upcoming ) conventions, meetings and trade shows in your region.
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