In one month, the big box stores will start filling their shelves with holiday decorations and Christmas trees. Jingle bells will be playing while the temperature flirts with record heat indexes in most parts of the country. Un-happy shoppers will complain that retailers start the holiday season earlier and earlier each year. Retailers will have no finger nails left to chew as they mutter these words, "I have no idea how we are going to make our holiday sales plan".
There is an old saying that says, "When you are trying to get out of a hole, stop digging". Retailers and business people alike are literally digging themselves deeper into sales depression. Housing foreclosures, gas prices, price of food on the rise, global warming; nothing else left to do but cancel holiday season 2008!
We know that won't happen. There is a line from "A Grinch Stole Christmas" says……"and Christmas came just the same." It will, like it has through the many other recessions and there will be retailers that thrive. Let me share three ways to make sure you are one of them.
First, answer this question: "What do you sell, who is selling it and who needs it." Sound simple? If you can't answer that question, in depth, then stop reading this article and question yourself why you are in business.
The first step in business success is offering products that your customer needs and is willing to spend money to get. In order to be successful during a retail downturn, it is critical to have a strategic inventory control system in place. Whether you take a mid-year inventory or you use a computerized inventory reporting system, it is imperative that you know exactly what you have on hand by classification. Within each classification determine the average price, turnover and projected on-order items from now through the end of December.
Take action right now on items that aren't selling as well as those that are "hot sellers" that you should re-order. Develop a list of items that will help make your holiday season and monitor them each and every day. Be ruthless with orders that won't be delivered on time and with those items that aren't a necessary part of your strategic inventory control system.
Step 2. Sales Staff: Right now, I would guess you don't have one sales person in your business. You have order takers. You may give them great names like, "customer service associate" etc, but bottom line, how many employees do you have that couldn't "sell" themselves out of a paper bag?
I am in the process of "selling" my home. That is an oxymoron. I believe most realtors don't "sell" a home. The house sells itself to a potential buyer. The realtor merely gets them into the home so that a relationship is built between the attributes of the house and the potential new owners. The realtor is a match making service, but sales service, I don't think so. If they were, my house would be sold by now.
The way to make sure that your strategic inventory gets into the hands of customers who need and want your products is by having well-trained sales associates. Take a strategic look at your staff and weed out the toxic employees and those that will never be able to "sell" anything to anyone. Chances are that you hired them out of need and not what you really wanted.
The next step is to hire new people with an actual sales background or start training your employees in the sales methods that will bring your company additional business. If you don't have that expertise, then I advise that you bring someone in who is proficient in sales training and start it yesterday!
In order to make your holiday season, it is critical that every employee be aware of what each day's sales goal is as well as weekly and monthly. Accountability is imperative to having productive employees. Sales goal setting in conjunction with a reward system will place importance on job performance. What would happen in your retail business if you implemented a commissioned sales incentive? Money motivates and more sales will improve your business. Sounds like a win-win to me.
Step 3: Rev up Your Referral Engine. You know what you sell and you know who is selling it, but do you really know your customers? A functional, accurate database produces all the information you need about who your customer is, when and what they last purchased along with all their profile information. But it becomes another fancy report unless you have a strategic focus on how to use it.
The best way to improve your business is to have your happiest customers become a well-oiled referral engine. They are your "un-paid" sales staff. Maybe they should be paid for all of that free advertising? What better way to show them that they are appreciated but well before the holidays? Early discounts, lay-a-ways, incentives for referrals, special events, extra member services, the ideas to keep your cheerleaders happy; the ideas are endless, you just need to start the process today.
Holiday season 2008 will come and go. Will your business survive, thrive or die when all the figures are in? Having a strategic system in place right now will keep you focused on your goal for this holiday and beyond. A targeted inventory, sold by trained, proficient sales people to a customer base that loves you and refers you to everyone they know will keep the coal out of your retail holiday stocking!
Anne M. Obarski is The "Eye" on Performance!" Anne works with companies and organizations who want to focus on becoming CONTAGIOUS! Anne would like to present a keynote, break-out session or customized training for your next meeting. Sign up for her free ezine at www.merchandiseconcepts.com or email Anne at anne@merchandiseconcepts.com
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