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FIND GEELONG | JULY 2022
www.findgeelong.com.au
The Five Rights Of Retail BUSINESS COACH By Deb Fribbins
The success of any business is reflected in sales, profits and foot traffic. Regardless whether they are coffering goods or services in bricks mortar store fronts or online How we can increase sales, maximise profits and grow customers/ data base, all comes down to a basic five rights. These 5 rights are the key aspects your customers see. It is the strategy behind each of these that will give your company longevity. The world is forever changing; therefore, we need to make sure we keep “on trend” at all times. Ensure you are using the world’s best practises, showcasing the latest trends in the products you are offering. How you do that is up to you and your individual business. There are trade shows, merchandisers, agents, your competitors, and of course the right sites on the internet. Always be aware of your competitors, but never be a “Me Too”. The Right Products, at the Right Time, in the Right Place, in the Right Quality in the Right Quantity? The right price will fall out of these 5 rights. It is not the most important part of the part of the equation. It is not about being the cheapest on the block. It is all about the best value for money. If you can offer your customers better “value” for their purchase than your competitors, they will come back to you. Value can be in the form of the customer service, after sales service, exclusivity, presentations, ranging offer, bundling and so much more. Price is relevant to each of these factors. A vase in a $2 shop has the same end use as a Waterford Crystal vase at very different price points. It is all about value for money, customer perception and the customer experience. When looking at the specific Products you sell, consider how they fit into your business. How will your clients perceive them? Consider: 1. 2. 3. 4. 5.
The ranging strategy in your business. Changes in the marketplace, current trends Consumer needs versus wants. Relevance in today’s market. Competitor analysis
If the item is right, consider the TIMING. Is this the right time, taking into account;?
Finally the QUANTITY, how long is a piece of string?
1. 2. 3. 4. 5.
1.
Climatic conditions Demographics Seasonality Special occasion Consumer needs
2.
With the right product, at the right time, 3. positioning in the Right PLACE for the consumer to be able to find readily is 4. paramount. Consider: 1. 2. 3. 4. 5.
Create a demand by putting it front of mind. Changing the position, to draw customers in to look for the item Create theatre in the store with demonstrations or movement where applicable Change the relevance of the product mix around it, style, colour, end use, etc Reactionary to conditions ie: umbrellas at the front of store with a sudden change in the weather
The product may have the right end use but is it the right QUALITY for your clients? 1. 2. 3. 4. 5.
Is it value for money What quality does your client expect from your business Is there an extended warrantee or guarantee you offer? Are there sustainability or biodegradability advantages? Will it last the lifetime the consumer expects for the money they pay?
5.
If you have too many, customers may think it is not very good and you cannot sell them. Where you have a lot of stock, limit what you put on display to create a call to action If you have too few and sell out too quickly, it is costing you in lost revenue. Where sell outs occur, and the product is in high demand advise customers of the next delivery date. Offer to advise when it comes in, and or to deliver to them. What can you offer as a good alternative to meet their needs?
With these “5 Rights” in place you are portraying a clear message to your consumer. They know what to expect from your stores, from which you will achieve greater loyalty from existing customers and their friends through referrals, which will increase foot traffic. Increase foot traffic leads to increased sales maximising the profits in dollar terms.
Deb Fribbins Developing Excellence in Business 0400 524 451 deb@debconsulting.com.au
