“The petty man is eager to make boasts, yet desires that others should believe in him. He enthusiastically engages in deception, yet wants others to have  affection for him. He conducts himself like an animal, yet wants others to think  well of him.” Xun Zi,- Chinese philosopher

FROM THE AUSTRALIAN  COMPETITION AND CONSUMER COMMISSION (ACCC):

Price comparisons that contrast a higher previous price to a lower current or sale price will breach the Australian Consumer Law (ACL) if any represented savings are not real.

 Businesses often make comparisons between product prices being charged or promoted as part of a sale and:

  • the company’s own previous pricing (including by ‘was/now’ or ‘strike-through’ pricing or by specifying a particular dollar amount or percentage saving)
  • the ‘cost’ or wholesale price
  • a competitor’s price
  • the recommended retail price (RRP).

 Statements such as ‘Was $150/Now $100’ or ‘$150 Now $100’ are likely to be misleading if the specified, ‘Was’ or ‘strike-through’ prices are inflated beyond what those goods would have been purchased for during a reasonable period immediately before the commencement of the sale.

How long this reasonable period is may depend on factors such as:

  • the type of product or market involved and
  • the usual frequency of price changes.

 Similar considerations apply to the specification of dollar amount or percentage savings.

 Misleading comparisons

 Comparisons between ‘cost’ and ‘sale’ prices can be misleading if the specified ‘cost’ price is greater than what the business paid for the goods. Consumers may be more likely to purchase goods if the gap between the wholesale and retail price is perceived to be smaller than what it actually is.

 Conduct may also be misleading where, for example, price comparisons are made with a competitor’s price for identical goods, but the stated price is taken from a different market or geographical location.

 Advertisements or promotions of ‘savings’ or ‘discounts’ in comparison to the RRP of goods and services may convey to potential customers they are getting a good deal because the prices are less than the RRP. If the product has never been previously sold at the RRP, or the RRP does not reflect a current market price, then advertisements using this form of comparison may, depending on the circumstances, misrepresent the amount of savings.      

 Tips for displaying two-price advertising      

 It is good business practice and fair trading risk management to keep records substantiating any two-price claim.

 It is also important to remember that a ‘sale’ or ‘discounted’ price should only be available for a limited period. This is because if a reasonable amount of time has elapsed and an item is still ‘on sale’, the discounted price effectively becomes the new selling price, so it may be misleading or deceptive to continue to call it a ‘discount’ or ‘sale’ price.       

 

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers. The fast working principles from my exclusive programs, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

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

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au

 

“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” – Henry Ford

ARE YOU CERTAIN THAT ALL YOUR customers are completely happy? If you are not, why not? The most important responsibility you have as a retail owner is to make certain that every single person who comes into contact with your business isn’t merely satisfied; they have to be delighted. In the majority of cases, the sad reality is that customers are left with either a feeling of apathy or disappointment. Here are some personal examples.

While giving me a haircut last Wednesday, my hairdresser told me that she had been invited to a wedding and needed to buy a gift. “Why don’t to you try to find something from Myer” I suggested. “You can never find anyone to serve you”, she replied. I have heard this same complaint before. I have heard it too many times… and this situation frustrates me because I care about Myer and I expect it to be better. What is the point of spending even one dollar to attract customers only to disappoint them when they try to buy from you?

Last week I applied to have my home phone number entered into the Do Not Call Register. Many of the nuisance calls I received were from phone companies trying to offer me a better deal. The key point here is that at no time to receive a call from my existing phone company!  Optus CEO Kevin Russell was refreshingly frank when interviewed on the ABC’s Inside Business this weekend.

Mr. Russell described how the commonly used customer metric, the net promoter score, showed support for Australian telcos had continued to plummet. He said five years ago the average for the Australian telcos was minus 31, and now it is minus 41. In the UK the score has risen from minus 18 to plus 20, and in the US from minus 19 to plus 24. Optus’s score was slightly better than the Australian average at minus 24.

 “It’s better than the industry … we’re arguably the best of a bad bunch,” he said. “It’s not good enough. “Three things we got wrong. I think the whole market has chased customers, we’ve chased sales ahead of looking after existing customers and at times that has meant that new customers frankly get better deals than loyal existing customers. “Sales… have not been controlled as tightly as they should have been, and I think too much investment has gone into buying customers and not enough investment into improving service.” I can only wonder how Kevin Russell’s predecessor, Paul O’Sullivan and the rest of the Optus management hierarchy, – and for that matter the management hierarchy of every other Australian telco – can justify their extremely inflated salaries.

Finally, let me leave you with this thought.

According to the ABS,  cat. no. 4102.0 –  Australian Social Trends, March Quarter 2012, in 2010, the median length of marriage before separation was 8.8 years. IF A COUPLE, presumably deeply in love, stands in front of their nearest and dearest family and friends, and swears that they will remain joined together in marriage “until death do us part” yet on average in a mere handful of years separates, how tenuous is the relationship you have with your customers?

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers. The fast working principles from my exclusive programs, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

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

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au

COZY CARLISLE: Someone is either a smoker or a non-smoker, there’s no in-between. The trick is to find out which one you are and be that.

MIKE CHURCH: Well, you know, I’m trying to quit.

 COZY CARLISLE: Don’t tell me you’re trying to quit. People who’re trying to quit are basically pussies who cannot commit. Find out which one you are. Be that. That’s it. If you’re a non-smoker, you’ll know. from Dead Again, Paramount Pictures

IF YOU ARE SERIOUS ABOUT attracting more customers to your store, you must pay daily attention to the presentation of  your shop front.  This is the first point of contact that your potential customers have with your store. Remember, you have just seconds to make a favourable  impression. If you don’t think this task is important, ask yourself how much one extra customer is worth to your business.  We are going to talk at length about how to create attractive and profitable window displays in future editions. For now, begin with the following:

Step one.

– Make sure the area in front of your store is swept clean.

– Window frames are polished.

– Awnings and verandahs are clean.

– Graffiti and any other dirt is completely removed 

– Glass is crystal clean outside and inside.

– Lights are all working and focused correctly.

– Dust, flies, moths are removed.

– Displays are straight.

Merchandise is in accordance with current promotions

– Signage is correct and in pristine condition, i.e. not faded, bent, torn etc.

Step two.

Repeat this process a minimum of three times each day. Remember, partial obedience is not obedience. This whole process should only take a few minutes and arguing that you don’t have the time won’t cut it. Now think about a way to guarantee that this happens. My favourite system is to draw up a daily checklist specifically for this task.  Create spaces for three checks during every day and include a space for the person doing the check to initial.

Step three.

– Train your staff  to understand why this needs to be done, what exactly are your standards and how to meet them. Next, decide who is responsible for this task.

– Will you leave it to a single staff member or will you rotate the role?

– How will you account for absences, roster changes, illness, holidays?

– Determine how you will you ensure that this task is completed three times every day?

Ultimately, as the owner/manager it is your responsibility to know what is going on in your store(s). I recommend that you complete at least the first check of the day. Continue to do this until you are totally confident that your system is working flawlessly.

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers. The fast working principles from my exclusive programs, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

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

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au

“GREAT CUSTOMER SERVICE  IS WHAT SHOPPERS EXPECT. AWESOME CUSTOMER SERVICE IS WHAT THEY REMEMBER”Leon Skaliotis

AWESOMEWhen a customer spends $50 in your store is their purchase worth $50 to your business? The answer is that it depends. Below are five points you must consider.

1.

If Gross Sales    =  $50

If Gross Margin  = 50%

Gross Profit         = $25

Next, you need to subtract your fixed and variable costs. The end result is that your initial $50 sale may only be worth $20 in net profit! More on retail maths in future editions.

2.

If the same customer is delighted with your awesome customer service and their purchase and they return three times over the next year and make a similar purchase:

If net profit = $20

Sales             = 3

Net Profit  = $60

3.

If the same customer is “blown away” by your awesome customer service and they rave about your business to just two of their friends who also make similar purchases:

If net profit = $20

Sales             = 9

Net Profit  = $180

4.

Let’s take this scenario one step further and assume that because of your consistently awesome customer service, your two referred customers each also refers two more friends who go on and make similar purchases:

If net profit = $20

Sales             = 15

Net Profit  = $300

5.

  • What is the cost to your business if for any reason your original customer is merely satisfied but never returns?
  • What is the cost to your business if for any reason at all your original customer is dissatisfied and tells their friends about their bad experience?

A dissatisfied customer will tell 9-15 people about it. And approximately 13% of your dissatisfied customers will tell more than 20 people about their problem. Source: the White House Office of Consumer Affairs, Washington, DC.

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers.

The fast working principles from my exclusive programmes, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

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

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au

“IT’S THE LITTLE DETAILS THAT ARE VITAL. Little things make big things  happen.”  John Wooden

BEING CONSISTENTLY GOOD AT THE little things is crucial to your success. The key is to make sure that everyone in your business is trained correctly and regularly so that when each situation arises, they routinely and instinctively know the right thing to do and can execute it brilliantly.

It never ceases to surprise me how little training actually takes place throughout the retail industry. This is totally unforgivable!  How can a retail manager or a retail owner expect their staff to perform like superstars on a daily basis when training is only provided occasionally? How can consistency, perfect execution and instinct be developed when a specific training topic is covered only once? That would be like Michael Malthouse randomly picking a person out from an MCG crowd, who has never played football, giving them a single lesson in kicking the ball and at the end of that lesson expecting them to kick like Chris Judd!

You must always engage in two types of training. There are no shortcuts! The first is formal, for all staff, regularly and permanently scheduled, such as once a week.  If this isn’t already happening in your business, you owe it to yourself to make regularly scheduled training your number one item of your action plan.  The second type is on the job training. This is where your staff are observed putting their training into practice and where positive reinforcement as well as corrections are made. Even the most sophisticated marketing strategy will come to nothing as long as your people who have the responsibility of executing your strategy do not have all of the necessary skills. Training is not optional; it is vital.

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers.

The fast working principles from my exclusive programmes, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

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

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au

A good marketing plan can shape the way you connect to your existing customers and attract new ones. It can also help you determine the types of customers you should target, how to reach them and how to track the results so you learn what works to increase business. Follows these basic sales and marketing practices and develop a tactical marketing plan and sales process that works for your business.

 Step one: position your product or services

To start your plan, keep in mind the four “Ps” of marketing: product, price, promotion and place. Your goal is to put the right product or service in front of the right customers, at the right price and at the right time and place. A good way to get started is to answer some basic questions about your business to help you develop a solid foundation on which to build your marketing plan.

  • Who are you selling to?
  • What do those customers need?
  • What distinguishes your product or service from the competition?
  • Are there marketing tactics that work best for your business?

 

Step two: ask for input from trusted advisors

To ensure that you have a clear sense of your own business, it is a valuable practice to gather information from those around you. Set up meetings with trusted friends, staff, advisors and peers, and ask for their input on the following. Getting feedback on these aspects of your business can help you prepare your marketing strategy as well as create targeted materials.

  • Who is your business selling to?
  • What do your customers need?
  • What distinguishes your products or services from the competition?
  • When and how often should you employ marketing efforts?
  • Where should your company be one year from now?

 

Step three: ask for input from customers and prospective customers

To successfully market to customers, you need to learn how they react to your product, pricing, brand or service — anything related to your business. Ask several of your current and prospective customers what they think about your business, products and services, potential to sell to them, and competitors. You can ask them by e-mail, telephone or marketing postcards. Incentives, such as discounts or samples, can encourage feedback.

Step four: draft your plan

Now that you have feedback and an outline, you can draft your marketing plan. Start by summarizing your market position and goals, and define what you expect to accomplish in a specific time period. A typical marketing plan might be organized in the following way:

  • Market summary
  • Competitive landscape
  • Product comparison and positioning
  • Communication strategies
  • Launch strategies
  • Packaging and fulfillment
  • Success metrics
  • Marketing schedule

 

With a marketing plan in place, you have a structure you can use to help keep your business on track. Make sure you review your plan every six months to help you determine whether it is producing the results you need. You should also update your plan regularly to respond to changing market conditions.

To your abundant success,

 Leon Skaliotis – Founder, Retail Fundamentals.

Leon is an accomplished retail specialist in Melbourne, Australia, who  successfully coaches Melbourne retail owners on how to create highly profitable businesses by attracting shoppers and converting them into loyal fans.

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

You can contact Leon Skaliotis direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au