Need more Sales? Get Help from Your Suppliers.

September 15, 2011

Today’s fundamental principle is:

There is no use attracting new customers through the front door of your business if you are leaking customers out of the back door.

What does this principle have to do with today’s topic? It has everything to do with it. What you really want is more profitable sales and that won’t happen if it’s costing your business lots of money to attract new customers. Retailers who have applied The Outside In Method exclusive to Retail Fundamentals no longer have customers leaking out of their back door.

What you have to understand is:

  • It costs between 6 and 10 times more to attract one new customer than it does to keep an existing customer.
  • One dissatisfied customer will tell 9-15 customers about their experience.
  • Approximately 13% of dissatisfied customers will tell at least 20 people.
  • Reducing customers from defecting can boost your profits by 25-85%.

Let’s assume you have taken care of this issue. You are no longer unnecessarily losing customers and you need to increase your sales as we provide Retail sales consulting services in Melbourne.

Apart from yourself, who else do you think wants your sales to increase? The answer of course is your suppliers. Obviously, the more sales you make, the more money they make too.

Keep in mind however, that no supplier will go out of their way to support a poorly managed business. That’s because:

  • By association their brand could be negatively tarnished.
  • The likelihood of an acceptable return on their investment is minimal.
  • Successful businesses like to be associated with other successful businesses.

By applying today’s fundamental principle you will maximise your opportunity for cooperation.

You will usually find suppliers receptive to meeting you. Remember, you have a mutual goal.

Before requesting a meeting, allocate planning time to clearly identify what you want to achieve from the meeting, and how you want your supplier to help you.

For example:

  • You could ask for bigger and better signage.
  • You could ask for free samples.
  • You could ask for a price discount.
  • You could ask for share in the cost of advertising.
  • You could ask for the company to provide a customer prize such as a weekend away.

Remember the saying, “If you don’t ask, you don’t get?” It’s true.

Brainstorming such as this is also a great way to involve your staff. It demonstrates that you appreciate and respect their knowledge. In turn this will enhance their loyalty, and if one of your staffs’ ideas is put into practice MAKE SURE that you gift an appropriate reward. This is no time to be frugal.

Some business owners are of the opinion that they need to have a leadership role in all aspects of their business. As a smart business owner you should always try to be as objective as possible. So, in this case, if you are not the most creative or persuasive or enthusiastic or diplomatic person in your business choose someone who is. Give them the responsibility and authority to act for you. If you are not confident that the right person exists within your business, find someone who is from the outside.

Do not let your ego get in the way of a successful outcome.

To your success.

 Leon Skaliotis

Principal Consultant

 

Attract and Keep More Customers                                                                                                                                               M: 0425 83 33 44                                                                                                                                                                                            E: info@retailfundamentals.com.au                                                              W:www.retailfundamentals.com.au

Written by: Leon Skaliotis –                                         Founder, Retail Fundamentals.

Leon is an accomplished business coach and retail specialist in Melbourne, Australia, who has successfully coached countless clients on how to create highly profitable businesses by attracting shoppers and converting them into loyal fans.

To receive your free copy of “Retail Secrets Every Owner Should Know” click www.retailfundamentals.com.au

You can contact Leon on +61 425 83 33 44                                                                                                                          or email info@retailfundamentals.com.au

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