A few weeks ago I was reading a Forrester Research white paper “Why Amazon Matters Now More Than Ever” from July 26, 2012. You may be aware that Amazon is a German Maestro headphone customer. Amazon actually respects the German Maestro MRP (Minimum Resale Price) policy. I am informed that this is a rather rare circumstance. All that said, the paper is about 28 pages in length and it says all of the usual and expected stuff. BUT, on page 22 I came across two paragraphs under the heading “Competing With Amazon Is No Easy Task”. Howzat for an understatement! Any way they touched a nerve. I’d like to share their substance with you and I will quote briefly from the paper. The article makes reference to the danger that Amazon represents to its more substantial competition, Target, Toys R Us, etc… BUT these specific paragraphs are quite relevant to specialty retailers and all of their competition, Internet, table-tops at the flee circus, Amazon, etc… The paragraphs start, “Amazon thrives on known brands that have little concern for how retailers price their items… [retailers should consider] partnering with disciplined manufactures [which helps] protect one’s assortment… But the reality is that…
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MEETING CONSUMER DEMAND: Thank you for visiting our store. What do you want to buy? Oh good, the PWB Widget is very popular, everybody has or wants one… We have the PWB Widget in stock… Our price is… Oh, let me see if we can meet that price… Yes we can meet that price… Oh, well let me see if we can beat that price… Yes we can beat that price… Yes, we are open until 6:00pm… Yes we will hold the PWB Widget for you while you look for an even lower price for us to beat. We can install it too. We like the PWB Widget and we are always happy to be the lowest price because we know that is what consumers want. Sure, tell all your friends, we beat any price from anybody. CREATING CONSUMER DEMAND: Thank you for visiting our store. Have you been in before? Well you are in for a treat. We are crazy about our business and we always know the latest stuff and best install practices. In fact our people serve on the product development council of a number of the best suppliers in the business. We have had significant influence…
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As is my wont, I was talking to a long time and rather successful retailer the other day. Says I, “How do you do it?” “Constant training and review.” WOW. Management did not complain “I can’t find good people,” he indicated that all of the good people already have jobs! “Sooooo…” he says “I am a relentless trainer and reviewer”. I listen to my guys when they are talking to consumers in the store and when they are on the phone. If they miss an opportunity we sit together and review it. Not with a negative but rather with a very positive point of approach. Of course, not every consumer interaction can turn into a sale this moment. Making my birthday wish list, waiting for my tax return, I get paid next Friday… Sometimes it is best not to sell to a consumer. You know the guy… He grinds and grinds for a better price. Then he is the big time complainer about the fact that his air conditioner is not as cold as it was before you put a subwoofer box in the trunk. For sure his loudest and most obnoxious complaints are in your store, in front of…
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This one may be tough to deal with but we all gotta do it. We make a decision. The decision turns out to be less than perfect, not working as intended, sending the wrong message, creating an un-anticipated outcome, or just plain wrong. That aside, “it is my decision and that’s what we’re doing, daag-nabbitt”. Defending our less than terrific business decisions and then carrying on as if nothing is wrong is not like cheating at Solitaire. When one cheats himself at Solitaire he is the only victim of such weakness. When one defends a bad or less than terrific business decision, the whole team suffers. What we have to do is examine the effects of the decision without “taking it personally”. That is a very difficult thing for me to do for sure. I believe it is also very difficult for most people to do. Our decisions are a product of our recognition of a situation, ability to analyze the situation, determination of desired outcome, development of an action plan and then executing that action. In this regard we have more control over our decisions than we have over our own children. Everybody knows how much we all love…
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In talking with specialty retailers, one of the most alarming complaints I hear goes sompin’ like, “I just can’t find good people to hire”. I’d like to offer a solution to this problem. Three ABSOLUTE requirements to be hired here: ONE: Fit; you gotta fit our vision of how the team works together for the benefit of the company. TWO: Coachability, you gotta be capable of learning and successfully applying new skills. THREE: You gotta want to work here. This can’t be just a quick “something to do”. After the owner has interviewed, qualified and then hired people who meet the above criteria, it is the responsibility of the owner (or guy responsible to the owner) to make sure the staff is capable. They don’t necessarily have to arrive with specific technical or sales skills, BUT they have to be willing and able to learn from you. Of course they must be willing and able to apply the knowledge and skills to the best interest of your business. The owner (or guy responsible to the owner) must provide training (education) for staff with… Three ABSOLUTE training focus points to work here: ONE: The consumer is our job, not an interruption in our job.…
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In the May/June issue of Mobile Electronics Magazine, a story was run in the Peer to Peer section that featured an anonymous store and the comments from various retailers providing guidance. The photos that were used in the story are purely representative and do no directly relate to the retailer who submitted the question or problem. We apologize for any confusion this may have caused.
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