March Issue Feature: Retail Acid Test - Improving Store Efficiency
3/16/2016 -- How does a business become more efficient? The first step is organization. Benjamin Franklin once said, “A place for everything, everything in its place.” Retailers can take this advice to heart and remember that disorganization in the workplace leads to time and money lost. Carlos Ramirez of NVS Audio in Linden, N.J. noted that this kind of problem is something he will not abide by. “If a tech spends half an hour looking for something, I just lost 50 dollars,” he said. Efficiency and organization is important in any business. Retailers who work to increase efficiency in their shops will begin to see benefits and positive change, resulting in higher sales and improved success. So how can 12-volt retailers become more efficient, thereby avoiding unfortunate mishaps?
“It’s all trial and error,” Ramirez said. “It takes a long time to find out what works. Whatever doesn’t work, you have to change it. So then the other problem is once you get a system that works really well, as you make more money and start changing lines, you change customers, and then your efficiency changes again.” Ramirez admitted that NVS Audio has had a problem with this issue in the past. “You have to be able to pay attention to how the shop’s moving, what you’re making money with, and how you can make your clients happy. As times change, you have to change.”
Creating New Systems
For much of her life, Tammy Rowland has worked in direct sales and has been involved in recruiting, leadership and training. She has created the Work Smart Earn More™ system, and coaches business owners and entrepreneurs. Rowland points out that, “Efficiency is not just finding a simpler way to do something, but creating a system so it can be done over and over again in the same way. This saves time and takes the guesswork out of any task.” While systems change, the important thing is to ensure efficiency is a priority. Very often, business owners must also learn to roll with the punches as systems and approaches change, and efficiency continues to be an essential part of success.
Ramirez of NVS Audio stated the key aspect of increasing efficiency in his shop: ensuring all departments are well organized. “We spend a ton of money on tool storage, bins and everything is labeled. Everything has a spot,” he said. “We are constantly cleaning and throwing away anything that doesn’t make money. Anybody should be able to walk in, and know where everything is … and where you need to grab something from.” Constantly keeping an eye on how things can be improved is part of ensuring that nothing slips to the wayside; efficiency is always top-of-mind.
Any products kept in-stock for the customers should also be organized and well cared for. The showroom should be immaculate. “This is the first thing I notice when purchasing an item,” Rowland said. “Dusty means old, not cared for … each task has a process. Work out what it is, then tweak it. You may have too many or not enough steps in your process. Training becomes simpler as well … this adds more success and higher sales.”
