Trade Secrets of Successful Retailers - FTDi.comWhat Are Successful Retailers Doing? • Ensure your...
Transcript of Trade Secrets of Successful Retailers - FTDi.comWhat Are Successful Retailers Doing? • Ensure your...
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December 8, 2015
Trade Secrets of Successful
Retailers
Dan Jablons, Retail Smart Guys
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Marketing
Inventory
Staff
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Marketing
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Marketing
BASIC GOAL:
Create Demand
Which will
Drive Traffic to
the Stores
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What Are Successful Retailers Doing?
• Email Marketing – and NOT just once per week
• In Store Events – Charities
• Facebook/Pinterest/Instagram – what is the message?
Marketing
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Marketing
Measuring The Results
• Open rate/click thru rate from emails
• New friends/fans on Facebook
• New names in your POS customer list
• First time purchases
• Donations to charities
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Marketing
Keys to Your Success
• What is the message?
• Test, Measure, Repeat
• Do SOMETHING to create demand
• OUTFLOW is EVERYTHING
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Inventory
Management
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Inventory Management
BASIC GOAL:
Maximize Sales
While
Minimizing Inventory
Investment
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Inventory Management
What Are Successful Retailers Doing? • Measure sales by Department/Class, THEN by vendor.
• Measure your sales in direct relation to what you received and what
you still have on hand.
• Use the above to formulate a vendor scorecard, and use that when
you go to the marketplace to get better margins from your vendors.
• Look at your sales by class to determine complimentary classes that
you are not selling or maximizing, and improve your assortment plan.
• For Multi-Store Retailers: Compare the above by store. Are there
classifications or vendors that don’t perform in all locations? How
does that affect your initial buy/distribution/restock plan?
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Inventory Management
Measuring The Results
• Sell-Thru and Turn
• Margin Sell Thru (Percent of Gross Margin achieved)
• Cash Margin (Gross sales minus Cost of Goods
Received)
• GMROI
– 1st Dollar pays for the goods
– 2nd Dollar pays for operations
– Everything above that is profit
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Inventory Management
Purchases
The single greatest cost to a retailer.
Key Components
Timing - flow of Inventory
Amount - to satisfy demand profitably
Small changes can have a huge impact on
cash and revenue growth.
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Inventory Management
Actual Results:
Revenue 751,666$ 751,666$
Purchases % 55% 53%
Purchases Dollars 413,416$ 398,383$
338,250$ 353,283$
15,033$
3.6%
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Inventory Management
Keys to Your Success
• Classes with demand need to be fed.
• Classes not growing need to be maintained.
• Classes dropping need repair and care in planning.
Sweeping cuts can destroy performing classes.
Stopping the fresh flow of inventory can paralyze.
Knee jerk reactions without thoroughly drilling down to
the details can have long term consequences.
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Inventory Management
Keys to Your Success
• Inventory is your largest investment.
• POS systems offer tons of reports. Use them!
• Vendors respond to stats, not complaints.
• GMROI is a vital statistic. Watch it carefully!
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Staff Management
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Staff Management
BASIC GOAL:
Maximize Sales
By
Salesperson
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Staff Management
What Are Successful Retailers Doing? • Ensure your system is set up to record sales by sales associate.
• Group commission plans are not effective. Create a commission plan
based upon individual sales.
• Assign sales goals to each associate: Dollars per Hour, Average Dollar
Sale, Units per Transaction.
• Run reports by associate by week, compare them against the store
average (not each other!).
• Post the stats in the backroom so all associates can see their own
stats, as well as each other’s stats.
• Train them on selling techniques.
• Get them as much product knowledge as you can.
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Staff Management
Measuring The Results
• Units per Transaction
• Average Dollar Sale
• Sales per Hour
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Staff Management
Keys to Your Success
• Employees need stats to know where they stand.
• Measurements by stats helps you keep the good
employees and weed out the bad ones.
• The employees that complain the most about this are the
ones that don’t want you to know that they can’t sell!
• Be slow to hire, quick to fire.
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A Few Lingering Thoughts….
• Retail “health” means managing marketing, inventory,
and staff.
• The retailers who win are those that understand their
numbers and their customers.
• Cutting costs, while important, is not a long term strategy
for success.
• “You cannot improve what you do not measure.” – Lord
Kelvin
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SPECIAL OFFER!
We will do a FREE ANALYSIS of your stores.
Find out:
• Where are you missing business?
• What classes of merchandise are you buying
incorrectly?
• How can you generate more cash?
• Where are your expenses out of line with industry
standards?
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Questions ??
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Email: [email protected]
Handouts are available at: FTDi.com/FTDUniversity/webinarmaterials.htm
Webinar will be available to view at: FTDUniversity.com
Thank you !