Let each of you look not only to his own interests, but also to the interests of others.- Philippians 2:4
A FREQUENT ISSUE I HEAR about from retail managers all over the world is some variation of the following:
“I can’t trust my staff”, or
“You can’t find good employees these days”, or
“If I’m not keeping an eye on my employees like a hawk, they will stop working”, or
“My employees – with very few exceptions are lazy and underperform”.
Feel that you have this issue in your business? Start dealing with it immediately! Motivated and enthusiastic employees are an essential part of a highly profitable retail business. There are a number of factors which affect employee performance such as aptitude and quality of training; we will cover both each at another time. What I want you to focus on today, is how you think about your employees. Do you think of them solely as people who are paid to do a job or as loved members of your extended family?
You see, one mindset is that of a master and servant relationship. The only possible outcome from this kind of thinking is stress, misery and lack of quality production. The other mindset is to think of yourselves as co-workers with different responsibilities who are working together to achieve a common goal. You know what your goal is. I don’t mean having a successful business. Think deeper. What will having a successful business mean to you? Perhaps it’s all about proving that you are capable of creating a successful business. Perhaps it’s about the money and what you can do with the money. Buying the house you’ve always dreamed of owning, the car, travelling around the world . Maybe it’s about the freedom of not worrying about your bills or having time with your family and money for charity. These are your personal goals. How will you feel? You’ll feel happy, won’t you? Happiness is what ultimately we are all in search of.
Now, think about your employees. Why do they come to work? What will make them happy? What is it, deep down in their spirit that will fill them with joy? Great employers care about the answers to these questions. They take a sincere interest in their people. Most importantly, they care about helping their people achieve happiness. I have personally witnessed great retail managers who have rearranged rosters to allow for study or family needs. I have seen a manager help with personal budgeting and another handling a landlord dispute for one her team. I have seen managers who are confidants and managers who are great mentors. These caring managers deserve the trust of their teams.
As a result of earning their people’s trust, their teams consistently outperformed. Absenteeism and tardiness became negligible. Employees willingly arrived early, left late, enthusiastically did their very best every single day.
I have also witnessed a manager who didn’t know whether one of his team, who had been with him for over two years, was married. I have seen some managers who only ever left their office to publicly criticize or condemn. Managers who insisted that everyone play by the rules which they themselves ignored. Managers who only ever talked shop. Managers who thought the worst of their staff and got what they expected. Managers who only ever thought about themselves.
If you want your employees to care more about what makes you happy, begin to care far more about what makes them happy. Be sincere. Sometimes, earning trust that was never there or lost, takes a long time. Be patient and be persistent. Tell them that you want to get to know them better. Actively listen to them. Ask them to share with you what makes them happy. Think about and then share with your team how working in your business will help them.
In the final analysis, please understand that your happiness is interdependent with your team’s happiness. If you do not care about their happiness, why should they care about yours?
To your abundant success,
Leon Skaliotis – Founder, Retail Fundamentals.
Empowering retail owners to apply the most effective principles ever discovered and 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 success 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.
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 on: www.retailfundamentals.com.au
You can contact me direct on (+61) 0425 83 3344 or email me at: leon@retailfundamentals.com.au
Two-Price Comparison Advertising
June 4, 2013
“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.
Successfully 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.
Successfully 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
Partial Obedience Is Not Obedience
May 30, 2013
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.
Successfully 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
How Much Is A Customer Worth To You?
May 23, 2013
“GREAT CUSTOMER SERVICE IS WHAT SHOPPERS EXPECT. AWESOME CUSTOMER SERVICE IS WHAT THEY REMEMBER” – Leon Skaliotis
When 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
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.
Successfully 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
Don’t Confuse Small With Insignificant
May 22, 2013
“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.
Successfully 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
Inexpensive Ways To Attract A Lot More Customers
October 22, 2012
Why do some retail stores attract a lot of new customers ? Why are retail sales high for one store while others barely survive? What makes the difference?
Back in the early 80’s, along what was at the time a prominent shopping strip in Reservoir, Melbourne there were three almost identical shops side by side. Each was run by a husband and wife and each had an attached dwelling allowing the owners to live on site.
The retail owners of the shops at either end had a habit of sitting in their lounge room when business was quiet, and would come into their shop when a customer entered. Otherwise they would usually watch a little tv, read the paper and sometimes have friends and family over for a visit.
However, the retail owners of the middle shop worked very differently. Firstly, one of them was present in their shop all of the time. When there weren’t attending to customers they actively looked for things to do. They swept the floor four to five times a day. They polished the counters. They cleaned the glass on fridges. They dusted all the shelves. They rearranged their stock so that it always looked full, fresh and inviting. They swept the footpath and cleaned their shop front windows inside and out. They carefully paid attention to all the little details.
Even before their day began they each had a routine. For example, after his morning shower, the man carefully shaved while his wife styled her hair, dressed in her uniform and put on her makeup. Meanwhile, the man put on pressed trousers, a clean shirt, chose a tie and his uniform jacket. This had been specially made by a uniform manufacturer, with a different bright colour for each day. Polished shoes completed his outfit. Why do you think they went to all this effort? It’s because the knew that in order to get more customers to come in to their shop, appearances matter!
Their shop opened at precisely 7am, however, this husband and wife were on the floor a full hour before. Every little detail was taken care of so that when the front door opened both were ready for business. If you have ever wondered whether you are missing any of the important details in your retail business you must go here.
There’s a lot more to this story that I want to share with you. For instance how this business attracted so many new customers and built a morning, lunchtime and afternoon food trade that necessitated another three employees – while their competitors sat around twiddling their thumbs; but this will do for now.
So, what are the retail fundamentals that I want you to understand from today’s post?
- It is the retail manager’s responsibility to set the example. If you don’t know how, find out here.
- Attracting new customers to buy from your store starts with paying attention to all of the details.
- The presentation of your retail store, from cleanliness, to merchandising and everything in between will result in many more customers coming to buy from you.
To your abundant success,
Leon Skaliotis – Founder, Retail Fundamentals.
Leon Skaliotis is a recognised retail consulting 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.
Take the next step… If you want to know how to get more customers to buy from you, get on board my individually tailored retail programs. If you want to get more retail customers, now is the time to build momentum and make the next financial year your best ever. You will be ecstatic at how easy it can be to attract more customers to spend money in your store.
The fast working principles from my exclusive programmes, My Retail Success and The Outside In Method come with a 100% Satisfaction Guarantee and instruct Melbourne retailers in how to:
- Attract and Keep more Customers
-
Substantially increase their Profit
- Increase the Value of each business
- Free up more of their Time
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
Retail Therapy 