RetailSmart

Are you smoking business crack?

23 November 2009 by retailsmart

Our usual excuse for inaction is because we have demonstrable success. A good run is a good incentive not to change anything. And that is why and how businesses die.

I have written previously about the risks of business planning here. A real issue with business planning is that it is overly focussed on what the competition is doing. (Benchmarking is very often a self-limiting exercise that results in acceptance of the status quo rather than challenging us to bigger and better things.)

This does not mean I don’t believe in planning altogether. I just don’t believe in the way it is traditionally done (and of course the traditional structure and content.)

The end-result of the business plan (as practised today) is very often incrementalism – and is more addictive than CRACK. (As if I would know, but you get the drift…)

As soon as something works, we stop experimenting. As soon as we succeed, we start repeating that. In fact whatever it was that made us successful in the first place wasn’t what we actually DID to make us successful, but the act of seeking and developing and improving is the reason why we found a way of being successful.

Finding the way is not the cause of our success, but the searching for it was.

Posted in General, Management, Strategy | Leave a Comment »

Newspapers into the future

20 November 2009 by retailsmart

There is an interesting debate happening on newsagencyblog.com.au (usually, but also right now) about newspaper distribution. I commented there, and this post elaborates slightly on that comment.

On distribution v retail:

They are two completely different types of businesses requiring different processes, skills, etc, and should be treated as such. There are pros and cons to each – but the main fallacy is to treat the home delivery customer as a lost opportunity. My advice to newsagents would be to embrace both PROPERLY and give it a crack. When you have exhausted all opportunities and are not making money, then enter into discussion with your supplier to resolve. I can’t take anyone seriously who have never proper done a subscription drive to grow the territory, or don’t even apply some technology to do proper route planning but rely on someone’s intuition and habits to run the business.

On publisher vs newsagent:

It is smart commercial thinking to build a partnership. If there isn’t that relationship, then ‘retailer’ is as much to blame as ‘supplier’. You can’t blame a publisher for trying to negotiate a contract – that is the nature of the ‘agency’ relationship. Equally publishers don’t blame anyone who chooses not to renew.

I am engaged with a publisher to help develop these relationships and the usual Pareto Principle applies. Only aboyuit 20% of the newsagents are proactive, willing to learn and change. Why should anyone care about a newsagent’s crumbling business model if they can’t be bothered to care about themselves?

On the future of newspapers:

News has a future. Period. What the product will look like is entirely different. Jeff Jarvis’s blog is recommend to everyone following the debate there too. The changing nature of newspaper distribution and the evolution of the physical product concerns and impacts the publisher as much as the retailer – and there is no blame to be apportioned. Forces outside the current industry structure will ultimately determine how things evolve.

My view is that I will pay $30 a month easily to get the truth in news. I pay whatever I pay now reluctantly and spend too much time thinking about what is propaganda and what is rehashed PR.

On retail:

The retail metric for newspapers are absolutely fantastic. Zero investment and 25% return PER DAY – is as good as anything I have ever come across in business. (GMROII). The low monetary value of the newspaper purchase in the shop is not a problem – it is an opportunity. You have a customer in front of you with the wallet open and hardly spending anything – and the usual response is… (thanks, cya later???).

Too many newsagents are habituated to suppliers/publisher thinking an deciding for them on everything from range to price and don’t take responsibility for their own businesses.

We have built a place where retailers and suppliers & professionals can share ideas and resources: retailsmartresults.com

Posted in General | Leave a Comment »

R U OK?Day: Your chance to change a life

18 November 2009 by retailsmart

G’day

Anyone who’s bumped into me in the past few months will almost certainly have heard about R U OK?Day, the national suicide prevention initiative that I’ve started. But, just in case I haven’t told you about the campaign, let me give you an outline of what’s happening …

The aim of R U OK?Day is to bring Australians together to help prevent the isolation that can lead to such outcomes as people taking their own lives. The first R U OK?Day on Sunday November 29th will inspire Australians to reach out to anyone doing it tough in order to prevent little problems becoming big ones.

R U OK? Day is for everyone, not just those at obvious risk.

Why am I passionate about this campaign? In April 1995, my father Barry took his own life. Having experienced the devastating impact of a suicide, the collateral damage caused to loved ones and the emotional rollercoaster that the families endure, I was inspired to create R U OK?Day.

To get the word out about R U OK?Day, we’ve developed a website (www.ruokday.com.au <http://www.ruokday.com.au> ), a TV commercial, print campaign, radio ad, a PR campaign, a Twitter stream, and we’re involved in a range of other communications activities including the creation of R U OK? posters which are being distributed to 25,000 GPs and pharmacists around Australia.

On Sunday the 29th via News Ltd’s National newspaper network, we will distribute a ‘how to guide’ to 1 million homes, which helps demystify the subject, equips people to have successful conversations and identifies where to go to get any help that may be necessary.

We have also had over 250 companies register for the corporate initiative – RUOK?Arvo – which happens on the Friday preceding the 29th and is designed to address the impact of this issue on the workplace. Companies such as The Commonwealth Bank, Lion Nathan, Optus, The ABC, News Limited and organizations like the CSIRO, The SA Government and the NSW Fire Brigade have committed their support and are taking part.

If you would like to see your company participate just log onto the website and everything you or your HR Director needs to take part is free and available for download.

The campaign has the backing of the Federal Government and amongst the supporting information partners are beyondblue, Black Dog Institute, Lifeline and Reach Out. On World Suicide Prevention Day in September, the R U OK?Day website was launched at Parliament House by Health Minister Nicola Roxon.

On Sunday 29th, you could help change a life by asking someone who’s struggling to cope: “Are you OK?”

Who will you ask?

Cheers

Gav

PS. Please feel free to change the introduction and forward on to friends, relatives and colleagues who may be interested in the chance to change a life.

Posted in General | Leave a Comment »

The magic of the right price- The Starbucks story

18 November 2009 by retailsmart

Recent developments triggered by Subway’s growth which have been attributed to a new $5 sub price point in the US. My understanding is that a franchisee simply said ‘to hell with it’ and made all subs $5. Not $4.95, but $5.00.

Double digit growth ensued.

In Australia, Subway followed by launching the $7 price point. I was shocked (not really shocked, but you know what I mean), because that was not what I would have expected them to do. $7 is exchange-rate adjusted equivalent of $5. DO they really think that is why the $5 sub worked?

Pricing is one of those retail sub-disciplines that one would think is subject to more science than it is, but it isn’t and if it were then we would have had the secret recipe. I have my theories about why the $5 price point worked – and they are obviously different to Doctors Inc (the franchisors in Aus).

So I thought I would jot what I know and what I think about pricing, and ask you to add your bit so that we can pool some ideas. (The things I know are based on reading and studying and gradually becoming certain about certain principles – I can’ remember where or when I first read the research though. I think it is called experience.)

What I know.

People don’t buy on price, they buy on perceived value.
Nobody generally wants to be able to buy the cheapest of anything (there is some shame involved in being able to only afford the cheapest of anything.) But people want to pay less than they think something is worth – which proves how smart they are.
The importance of price diminishes as the product and service is less likely to influence your (perceived) status in society.
Odd pricing ($4.95) does not work (even though I thought it did for a long time). It was initially an operational tactic to force people make change so that the $10 did not find its way into the pocket of cashiers.
Really odd pricing ($4.87) works because of perceived accuracy and honesty.
Fewer price points are better than more. (People generally only perceive low, medium and high price points.)
Price points are a decision-making heuristic for consumers because they equate price to quality to it helps them decide.

What I think

The size of currency plays a role. When people pay $7.75 for something they tend to pay with a $10, then the item has a higher psychological; cost because your ‘broke’ the tenner.
The more money (cash) people carry around with them makes people less price sensitive – up to the point where carrying no money (because your lackeys carry the wallet for you.)
When people are offered the same product at three different price points, they tend to pick the middle one especially if they have no other basis of judging what the product is worth. (We teach people how to use this strategy in our SellSmart retail selling course. )

Now back to the Subway experience.

What I think happens is that when people are confronted with endless options (combinations) and endless price points at the counter, they are forced to make a considered decision. They weigh up their purchase and calculate the cost of adding the cheese or the avocado or not having a drink etc.

Subway makes it an important consideration because the menu and the presentation will force consumers to consider these variations.

When you simplify it for the customer – everything is $5 – then they can simply choose to eat what they want and there is no anticipated regret (which, by the way, is one of the most powerful motivators in consumer decision-making).

When you make things simple for the customer, they will be more inclined to spend more and/or spend more often.

The $5 price point works well because that is what the customer is psychologically committed to spending (and $4.95 would not make a difference). The same cannot be said of the $7 price point.

The $5 price point works because that represents a fair deal as far as fast food offers go (in most categories) so consumers do not feel or fear over-paying. I am not sure the same can be said of $7.

What do you believe is the right approach to pricing? What do you know for sure and what do you think applies? What are your views about the Subway strategies? Love to hear your thoughts…

Posted in Finance, Selling & Persuasion, Shopper Marketing | 2 Comments »

SRX1116672824ID – Microsoft Online Customer Service

11 November 2009 by retailsmart

Dear Dennis,

Warm greetings from Microsoft Customer Service.

As I understand it, you would like to upgrade to Windows 7. However, your concerns are as below:

1. Is it compatible with Microsoft Office Groove 2007?
2. Does Windows 7 include Microsoft Office Groove 2007?
3. What are the system requirements for Microsoft Office Groove 2007?
4. Where can you obtain a copy of Microsoft Office Groove 2007?

If I have misunderstood, please let me know.

Dennis, in general, if your PC can run Windows Vista, it can run Windows 7. But if you’re not running Windows Vista, or are just not sure if your system is ready to run Windows 7, there’s a quick way to do a simple check. You can download, install, and run the Windows 7 Upgrade Advisor Beta. You’ll get a report telling you if your PC can run Windows 7 and if there are any known compatibility issues. If an issue can be resolved, you’ll get suggestions for next steps.

You can download the Windows 7 Upgrade Advisor Beta from the link below:

Windows 7 Upgrade Advisor Beta
http://www.microsoft.com/downloads/details.aspx?displaylang=en&FamilyID=1b544e90-7659-4bd9-9e51-2497c146af15

* The Windows 7 Upgrade Advisor Beta is a pre-release version and is available in U.S. English only. While we consider this a stable and high-quality beta, it’s not the finished product.

Microsoft Office Groove 2007 should be compatible with Windows 7. After upgrading to Windows 7 and you find that you are not able to use Microsoft Office Groove 2007 with Windows 7, you can install it using the Windows XP Mode. Windows XP Mode allows you to install programs in Windows 7 that are only compatible with Windows XP. For more information regarding Windows XP Mode, please refer to the link below:

Windows XP Mode
http://windows.microsoft.com/en-us/windows7/products/features/windows-xp-mode

Please note that Microsoft Office Groove 2007 does not come as part of Windows 7. You would need to purchase Microsoft Office Groove 2007 separately from Windows 7. You can purchase a copy of Microsoft Office Groove 2007 from any of our authorised Microsoft resellers. To find an authorised Microsoft reseller in your local area who is able to assist you please use the link below:

http://www.microsoft.com/australia/buyit/default.aspx

For more information regarding Microsoft Office Groove 2007, please refer to the link below:

Microsoft Office Groove 2007
http://office.microsoft.com/en-us/groove/default.aspx

Dennis, I hope I was able to address your enquiry to your satisfaction. Should you have further questions relating to this enquiry or any additional enquiries, please let me know.

Alternatively, for immediate assistance, you can contact one of our Microsoft Customer Service Representatives on 13 20 58 (Select Option 2 followed by Option 1) from Monday to Friday, between 8am – 8pm AEST.

Thank you for contacting Microsoft.

Kind regards,

Johan Adam | Customer Service Representative | Microsoft Customer Service | Australia | Phone: 132058

Posted in Customer Service, General | 1 Comment »

No need for customer service

9 November 2009 by retailsmart

Almost without fail, in every sales training session we do, someone (usually more than one) will say something to the effect that they ‘hate being pushy’ or hate selling stuff to people but they don’t mind helping them or offering assistance. As evidence for their position, they usually relate how they feel when an assistant approaches them and tries to ‘sell’ to them.

To all those people I say (repeat after me): Service IS Selling and Selling IS Service.

One more time: Service IS Selling and Selling IS Service.

In fact, we rarely do any ‘customer service’ training in a retail environment. (Only for e.g. staff working on customer service desks.)

Of course this only makes sense if your retail selling philosophy is that you are actually NOT there to sell to customers, but that you are there to HELP THEM BUY.

A retail store is a commercial market place. People buy stuff. People WANT to buy stuff – that is why they entered your store. Helping them to get what they want is what makes the retail world go round.

To view customer service as about ‘being nice’ and ‘solving problems’ is very limiting and in fact detrimental to your business. Proper retail selling is about solving problems in a nice way – ANYWAY, so there is no need for customer service.

Posted in Customer Service, Management, Selling & Persuasion | Leave a Comment »

Customer Service Mystery

4 November 2009 by retailsmart

On a mid-week evening somewhere in suburban a mystery shopper enters the restaurant. It is early, just after 6pm, and she is a little self -conscious being the only one in the room.

The owner seats her in a great spot, offers the menu – the usual drill. Upon his return to take the order, she declines a drink and opts for a meal only. He dismisses that option with a genuine and gentle refusal and suggests just a glass of wine.

It is difficult to describe, but the shopper reports that the feeling conveyed was NOT that he wanted to sell an extra drink, but that he had a real empathy for her ‘aloneness’ (not loneliness) and genuinely felt that a glass of wine would be a treat and help with the overall experience.

As it happens he suggested a Sauvignon Blanc (the preferred white wine) and the wine turned out to be excellent.

The second restaurant (different brief) was an hour later. By the time she arrived, the place was already filling up because a local band was playing.

The owner (again) seated her at a small two-seater, right next to the stage and pulled up a chair that would have her facing towards the restaurant. She declined and opted to have her back to the restaurant. (Can you see why?)

He enquired if she was ‘alone tonight’ and when she answered affirmatively, he responded with a ‘oh, really’. One guy understood the art of hospitality and the other just ran a business.

The differences were subtle.

The impact was vastly different.

The foundations for the overall experience had been laid long before actual food had been served. How does this apply to you?

It reminded me of the (anonymous quote):

If you do what you love, you will never have to work again in your life.

I wonder how many retailers love what they are doing.

Check out this picture outside a newsagent in QLD to see an example of someone who definitely does not love what they are doing.

Our latest newsletter has been published here – subscribe if you like it. (If nothing else, enjoy the joke.)

It is not too late to register here for your free copy of an EBook on Visual Merchandising.

Posted in Customer Service, Mystery Shopping, People | Leave a Comment »

Don’t bother reading – this is a test

3 November 2009 by retailsmart

This is a test blog from email account to wordpress.

Dennis Price

Ganador Management Solutions

L E A R N T O P E R F O R M

We have built a place where retailers and suppliers & professionals can share ideas and resources: retailsmartresults.com

See our home on the web AND join the conversation at RetailSmart

M 0411 030 436

T+61(2) 4233 2447

F +61(2) 8078 6647

PO Box 243, Kiama, NSW, 2533

The following simply means: be nice, be fair.

This email and/or attachments are confidential. If you are not the intended recipient, please do not copy, use, disclose, distribute or rely on the information contained in it. If you have received this email in error, please notify the sender immediately and delete the email from your system. Confidentiality and legal privilege attached to this communication are not waived or lost because of erroneous delivery to you. Whilst every care is taken, Ganador Management Solutions (Pty) Ltd cannot not guarantee that this email or the attachment(s) are unaffected by computer virus, corruption or other defects.

Posted in General | Leave a Comment »

Retail media monitor

1 November 2009 by retailsmart

Readers of this blog are waaaay to sophisticated to need this, but I thouhg I would post it here – just in case

Here is a tip that you can use that will save you a lot of money.

Go to twitter.com – register for free

(Stop – don’t run away, trust me on this one )

Go to hootsuite.com – register for free

(Hootsuite is a software application that does a better job than Twitter of managing your tweeting.)
You don’ have to tweet and you don’t have to have followers and you don’t have to follow anyone – just register.

In the search box of Hootsuite, type the name of your company.
When prompted, click on ‘save search as a column’.
In the search box, type the name of your company as well this hash tag: #fail
When prompted, click on ‘save search as a column’.

Make sure you try all variations of your company or even key products so that you cover all basis.
(You can do this for ANY topic, say Ecommerce, and that column will track every mention of the word ecommerce.)

You have now set up an effective media monitoring account and all you have to do is watch it. Each column will pick any mention of the words you selected and you will immediately know if anyone mentioned anything that concerns you. There are more sophisticated ways of doing it, but this is about as effective as you can get.)

If you rate no mentions (the search columns are blank) then you can consider yourself lucky or unlucky, depending on your perspective.

If you want to see how it works, pick a larger, well-known brand (e.g. DELL #fail) and see what happens. I guarantee you DELL is watching. Shouldn’t you be?

Posted in Customer Service, Research, Risk Management | Leave a Comment »

Visual Merchandising: General Tips (post 12 of 12)

30 October 2009 by retailsmart

Managing store presentation and merchandise display is an ongoing task that occupies floor staff constantly. (Occasionally even causing them to ignore the customer!) The following list is an important list of basic rules that apply to most retail formats:

Use of signs inside and out.
High GP items at eye level.
Have an attractive, uncrowded entrance.
Design to your traffic flow.
Utilise end caps/ gondola ends.
Have a display with add-on items.
Display impulse items.
Display ahead of the buying cycle. (Some fashion stores take this too far and are selling next season in the middle of this season.)
Appeal to as many senses as possible.
Colourise.
Give the impression you have a lot of product in stock.