J.D. Associates Retail POS Solutions Blog

Top 10 Mistakes Retail Independent Businesses Make

The top 10 tips below, courtesy of Bob Phibbs, The Retail Doctor  I'm passing Bob Phibbs' list along because it caught my attention. 

Some of his mistakes that retailers make can be quickly corrected through the use of POS software.  We've got a POS system for every budget.  Let's talk.

1. They hire the exact same person as themselves. This works if all you want to talk to is people like you, but having a balanced crew lets you speak to all four of the personality types. With only one type of person, you often find a "hive" mentality where it's us versus them. I've witnessed this first hand; one time I walked into a busy sewing shop - you'd think I had lobsters growing out of my ears as they stared, never getting up or trying to engage me. How did they not know I wanted 10 machines for the new high school?
2. They fill their stores with merchandise based on "gut feeling." Rather than having a system to replace the sellers as well as remove the dogs, their floor is littered with duplicates that leads to the merchandise being dated, shopworn and inhibits their ability to repurchase best-sellers.
3. They have no sales process. This leads to customers doing all the work and employees that become slackers. Clerking has no place except in fast food - no, it has no place- everyone can up sell.
4. They display their merchandise with no flare, creativity, or system. Stack it on the shelves and hope it sells. More often than not, it's accompanied with a handwritten starburst sign with a price, rather than a fun sign that makes us stop and consider the items in the display. Remember: just because it's cheap doesn't make it 'want-able.'
5. If they have a website, it frequently is lacking in the most crucial details -- rendering it invisible to potential customers. Because owners don't understand the Internet, many throw up their arms and settle or tell themselves it's great when it misses on the most basic of criteria.



6. They train by crisis, instead of logic. This often means the best employees leave quickly and the worst are rewarded. Being the chief only means you'll be the one taking all the stupid questions when you take a day off or go to the bank.
7. They do not review employees to high standards; this allows the weak to thrive on the owner's dime.
8. The only quiver in their bow is to discount their merchandise, price match and participate in multiple discount programs anyone brings them, in a wrong-headed belief it will grow sales. This robs profits and often means they're putting money into the business, instead of taking it out.
9. They have little or no presence on social media, which means they are unaware of what customers are saying about their business.
10. They whine that it's the economy, government, or their online competitors who are ruining them - never taking responsibility that it's up to them to make a profit.

 

Get Ideas From Your Competition

When was the last time you went shopping for ideas? Yes, I said ideas.

Although you may be doing a pretty good job running your business, you can always do better. You have to work harder and smarter to get consumers to part with their dollars. It seems like you have to come up with new ideas all the time to attract new customers and cultivate existing customer loyalty. But where can you get all those new and creative ideas? Steal them! Or if that terminology makes you feel uncomfortable, then just borrow them.

It seems the only thing that retailers notice about each other is how their competition prices their inventory. What's the best way to find out about some new and exciting ideas from other retailers? Go shopping! Most retailers get so bogged down in their day-to-day business that they don't take the time to get out and shop the competition. Although price is more important today than it was before the recession, it's not the only thing that customers factor into a buying decision. So what do you look for when shopping another store?

1. FIRST IMPRESSIONS are often a determining factor when people are making buying decisions. You feel a certain way about a store when you first walk in.  That could be good or bad. How does your store look, feel, hear and smell to your potential customers?
2. HOW WELL IS THE STORE MERCHANDISED?  If the store doesn’t carry the merchandise I want, or if I can’t find the items I’m looking for because the placement of the merchandise makes no logical sense, I probably won’t return to that store.  If I can’t find it, I can’t buy it.  By shopping your competitors, you may get some great ideas on how to better merchandise your inventory and pair up complementary items.  
3. HOW IS THE STORE HYGIENE?   Is the store clean or is it a pig sty?  A dirty store tells the potential customer that you have no respect for them and, if they come to that conclusion, they won’t buy from you.   Additionally, they will tell their friends.
4. ARE IN-STORE PROMOTIONS AND EVENTS OBVIOUS AND ENTICING?  Promotions and events are becoming increasingly important.  Not only do stores need to keep their inventory fresh, they need to create a “buzz” that attracts return visits.  
5. DO YOUR COMPETITORS HAVE A GOOD SELECTION OF MERCHANDISE AND IS IT COMPETIVELY PRICED?  Knowing your customer is critical when selecting merchandise.  Successful stores are constantly monitoring trends and customer preferences.  A retailer’s point of sale system or POS software usually has customer relationship management capabilities that unobtrusively track the buying habits of their customers.  A point of sale system collects data to feed these now necessary business intelligence tools.

Shopping your competition is not a onetime deal. Scheduling the time to shop on a monthly basis is the best way to ensure that it will happen. Don’t go to the same stores every month.  Mix it up.  If you’re afraid you’ll be recognized as a spy, send a mystery shopper.  But don’t forget to take notes, notes and more notes.  

You may be surprised at how rewarding shopping can be.

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Retail POS Systems on Steriods Survive - and Thrive

 

Last week before I went to the NRF Big Show in New York, I ran into a friend and customer at the grocery store.  I told her that I was exhibiting at NRF, and she asked me if I would jot down a couple of my observations on the mood of the vendors and retailers in light of the Great Recession. 

Upon arriving at the Javits Center on Sunday, which is set-up day, I noticed that the show seemed larger than last year, although not as large as some of the shows in the past.   The "Big Show" isn't typically known for producing immediate sales, but most of the world's largest retail technology vendors attend if for nothing more than to make sure another vendor doesn't steal their customer.

As for the mood in the hall, most attendees including vendors and retailers expressed cautious and reserved optimism (optimism being the key word).  Having been "beat up" for the past two years, most felt they were better off this year that they had been last year and felt the worst was probably over.  Neither vendor nor retailer was jumping for joy because they felt business was fabulous.  But neither vendor nor retailer was expressing the devastating pessimism of last year.

This year it was obvious that technology companies have kicked it up a notch and were not only displaying point of sale systems on steroids, but were also placing  a strong emphasis on planning tools, video surveillance, traffic counting, customer loyalty programs, and business intelligence.  It appeared that both vendors and retailers realized that in order to flourish and not merely survive in the new economy, innovative and more sophisticated tools were essential.    

So, when the Big Show was over, I walked away knowing that I had met the survivors of the Great Recession and all of them were collectively looking for a better future.