It is time to differentiate your store from the competition next door?
- Retailers are under threat
- Chains are getting stronger
- Big brands are demanding lower retail margin
- “One size fits all” no longer works
What can retailers do to become more interesting and more profitable?
- Passion: employ a team that is passionate about the products in your store. Customers can sense when the team is passionate about the products they sell. Passion can be very infectious.
- Love your customers: Give your customers a reason to recommend your store to others and give them a reason to return to your store. In the age of large self service outlets, serving and selling to customers on the floor, is not common, but this practise can boost sales and result in happy customers. Seeing customers wandering the aisles, searching for something, the team can choose to either avoid eye contact or they can go serve and/upsell the customer?
- You make your profit when you buy: buying from the official distributor no longer guarantees you that you are getting the best price, wholesalers often compete with each other on price and end up being cheaper than the official distributors.
- Sell less beer: generally, liquor stores that sell more (mainstream) beer make less profit, and those that sell more wine make more profit.
- Know your suppliers: get to know your suppliers well, treat them as partners, they can be a valuable source of information and can make a massive contribution to your business.
- Differentiate yourself from chain stores: chain stores are limited in the range that they are allowed to stock. What products can you stock that are not available at competing stores?
- Don’t compete on price. Competing on price often feels like such a natural path to follow but for most small businesses, there are lots of other ways to create value.
I love working with retailers. I love serving customers in stores. On friday afternoons or saturday mornings, I can often be found in my favourite bottle stores, serving customers or rearranging the beer chiller. I get the most amazing responses when I ask customers if I can assist them or start recommending a product to them. Almost always they ask me if I own the store. I just love it.
We can help retailers with:
- Market Research
- Range Audits
- Supplier Relationships
- Marketing & Community Building
- Category Management
For more information, visit us www.ntwrk.co.za