YouTube Video : What Makes a Good Manager?

Excellent Video Enjoy.

 

5 Low Cost Things You Can Do Now That Will Increase Sales!

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FREE SMALL BUSINESS ADVICE !
 

5 Low Cost Things You Can Do Now That Will Increase Sales!

1. Clean up the store 

• Get garbage off the floor, if your merchandising keep  it neat.
• Ladders and carts not being used should be put away.
• Floors should be  swept and washed.
• Shelves are straightened.

2. Re-merchandise the shelves.

•  Customers like it always looking fresh and new.  Move sections from one place to another. Pull them forward, make it look full neat and new.
• Customers will see items they didn't notice before. 
• Customers will stop shopping a store if they feel its going to have the same old thing. 

3. Use in store signs.

• Show the value to the customer even if its the everyday price.
• Just pointing it out pushes sales.

4. Good Customer Service.

• Be friendly and helpful, not pushy and annoying.

5. Get the word out

• Word of mouth is the best and cheapest advertising. 
• Have a good logo and make it visible outside your store.
• Use free website and social media.


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Well Excuse Me!

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Free Advice for Retailers!

Does anyone know what happened to the term "Excuse Me"?
It has seemed to have disappeared. I've noticed people will do one of three things in the supermarket.

1.  Stand there waiting for you to move saying nothing. 
2.  Try to squeeze in to tight spots.
3.  Get really nasty.

But only 1 in 10 customers say excuse me.

Well what does this tell you about shoppers. They won't open their mouths politely to ask for help.

Increase your sales by politely engaging your customers. Ask them if they need help before they quietly walk out disappointed.

Support this blog by following us and passing the link around.

Thanks for your help.
E.A. KOGWARD

Professional content wanted for Retail management Blog

If you are a retail professional looking to promote your own business here's your chance to get some free online exposure.

I'm looking for free magazine style articles to enhance my readers experience. You can add a link to your website, by line and about the author to promote yourself.

All I ask in exchange is you follow my blog and give me a reciprocal link back to this site.

All articles must me approved by me before posting.

If your interested email me at kogward@gmail.com

Different Kinds of Retail Customer Service

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There are different types of customer services in a retail store.  Each with their own good and bad features.  

1. The Sales Man -  this persons job is to engage the customer and sell them a product directly. Example would be a car sales man.  Their job is to talk you into buying the product.
2. Sales helper - this can be anyone working in the store.  Its everyone's job to help the customer find what it is they want, and not leave them wandering around your store.  This is the second most common form of customer service in your store and a lot of attention should be paid to it,
3. Customer Self Service - more times than not there's no one to help the customer find what it is they are looking for, so they have to be able to find it on their own.  Example would be supermarkets, mega discount stores like Walmart and Target, or just about any retail store.  This is the most common form of customer service. It needs to be treated as the most important part of laying out your store.

Facebook Marketing all in one for Dummies

    
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If you have questions about using Facebook for business and want a current text that is easy to read and understand, Facebook Marketing All-In-One for Dummies is one of the best resources to read at this time.

THE RETAIL CONSULTANT: Ways to Stop Shrink Casued By Your Employees

THE RETAIL CONSULTANT: Ways to Stop Shrink Casued By Your Employees: Employees cause to forms of shrink.  Paper shrink caused by mistakes and theft.  Here is a list of what you can do to control your shrink pr...

Avoiding Customer Accidents can save you money.

Avoiding customer accidents can save you money and a big headache.

Customers don't always thing their going to get hurt.  They are more concerned about shopping. 

Accidents cost money in medical bills, lawyers, and increased insurance premiums.  Then theres the headache of dealing with a hurt and upset customers and possible lost business.

We all see the children that run in the stores and stand up in shopping carts.  How many of us speak up and say stop running or sit down?  Not as many as there should be.  It is everyone's responsibility to speak up including other customers.  Keeping the costs of accidents down means theres more money available for higher wages and lower prices.

Only last week I saw a customer Try to step on a uboat to reach an item behind it.  When I told her I could get fired for letting her do that, she gave me a dirty look.  But its true.  The fact that a uboat is on wheel and she could have moved it out of the way never crossed the customers mind.  The best way to avoid this is to greet the customer with can I help you find something before they ever get the chance.

It is every employees job to keep an eye on the customers. 

 Good customer service avoids accidents, increases sales and deters shoplifting.

Tips to avoid accidents.

• Clean up spills quickly.  keep caution signs and paper towels handy on the sales floor.  Call for help and watch the area until it is cleaned up. 
• Keep the sales floor neat and clean.  less clutter and more open space to walk.
• Don't block doors
• Don't leave unattended ladders on the sales floor.
• Box cutters stay in your hand or your pocket, never put them down.
• Don't stack boxes higher than you can reach, keep  top shelf neat, and as low as possible. 
• Post signs not to run and keep and eye on children.
• Speak up when a customer or employee is doing something dangerous.  If no one listens tell your manager.

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15 Ways How Shoplifters Steal from Retail Stores and Create Shrink!

   A Shoplifter is described as a person who lifts or steals items from a shop or store.  There are many ways people do this. Here I will teach you the most common ways thieves steal from stores.  Once you know how they shoplift the more likely you will be able to spot them.
   
     Always be on the lookout for the odd person looking to see if he is being watched, also large groups and overly friendly people.  These overly friendly people usually distract you while their friends steal from you.

15 Ways How Shoplifters Steal from Retail Stores and Create Shrink!

• Shoplifters will Stuff merchandise in there pocket or conceal it in some way. Sometimes they steal the whole item. Other time they take it out of the package. 

• After all ready paying for one item at the cash register they walk back into the retail store and add things to their store logo shopping bag when no employee is watching.

• Thieves will put one item inside another. Such as putting a lunch box inside a school bag. If the cashier asks any questions the customer will say they thought they went together. Or they wedge merchandise inside wrapping paper tubes. A Thief will try anyway they can to hide the merchandise the want to steal.

• Shoplifters will open sealed boxes and put other loose items inside.An example would be opening a board game and placing a computer memory card inside the box. The Shoplifter then pays for the board game and  is getting the memory card free.

• Customers eat food while they shop. Leave the empty package and never pay for it a the register.

• Try on new shoes or clothing item and wear it out the of the store. Return to store with receipt for item purchased the same of different day and try to walk out with a new one waving receipt to prove he paid for it. If you don’t look at the receipt carefully you wouldn't notice it was and old receipt.

• Walks into store with nothing and brings item to register for return with no or old receipt. Just because some one hands you a receipt doesn’t mean they came into store with the item. They could of found the receipt on the floor and took the item off the shelf and try to return it for money. If you didn’t see the thief come in you have no proof. If you turn down the return he still walks out the door with free merchandise.

• They just carry items right out the door. Shoplifters wait until you turn your back and will just walk right out the door. Some times they use a partner that will try to distract the person covering the front door so the other person can take merchandise and walk out the door with it. I’ve seen a team of three work together. One drives the get a way car waiting in front. Second person distracts employees while third carries out full floor shippers or hand baskets full of merchandise right out the door into the car and takes off. The distractor acts like he’s not involved. They are so good at it sometimes you don’t notice it ever happened until you realize the display is missing.

• They don’t steal merchandise but from other customers. Picking pockets or stealing purses. Ever hear an announcement in a supermarket “ If you have the wrong cart please return it”. It is found down another aisle with out the purse that was left unattended.

• Shoplifters with take anything of value. A portable tv/dvd used for demonstrations. Put in a shopping cart and wheeled right out the door.

• Purposely letting very young children hold expensive items then walking out the door and having the child carry it. This way they can say it was an accident.

• Customer drops change on the floor over the register counter while cash draw is open. When cashier bends down to pick it up the thief takes money from register with out being seen. If seen he runs, if not you may end up blaming cashier for shortage. But whose fault was it. The Cashier or the managers for not teaching the cashier to never turn your back on an open cash draw.

• Counterfeit money. Thief may hide bad bills mixed in the middle of good ones so if you don’t look carefully at it you don’t notice.
  

  

• Confuse cashier while making change while still in middle of sale. Thief always walks away with more money then he should of.



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Why has higher sales become more important than higher profits?

Answer is easy, bonuses.   When companies give higher and higher bonuses for higher sales,  they forgot you have to make a profit to pay for the bonus.  Many companies have gone out of business all because they forgot the golden rule.  You have to make a profit.   There are people spending too much in expenses just to help them make higher sales and get a bonus.  Problem is the sales aren't always high enough to cover the added costs.

Bonuses should be based on increase in profits and not sales.   There are a lot of badly run businesses out there that could increase their profits while actually decreasing their sales.

Control expenses and you control your business.  Payroll is one of the biggest expenses any business can have.  A lot of managers cut payroll first because it is the easiest thing to do.  Cutting payroll gives you big cuts fast.  It also can ruin a store.  No employees no sales.  

I suggest before you cut payroll you take a good look at how your spending it..   Do you have the right ratio of sales to man hour.  Do you have the man hours evenly scheduled.  Or do you have more sales associates on on busy times and less when its slow.   Are people standing around with nothing to do?

You need to Question your business all the time.  Plan Plan and Plan some more. 

Fail to plan and your just planning to fail.

Are your managers following up on their associates.  Are they out on the sales floor or in the office?  Do you know what people are doing or are you just waisting payroll?  Do department managers spend more time in meetings than they do making sure the job gets done?  

In a Retail store Money is made on the sales floor, not on the phone or in the office.  Not at meetings and not at the home office.  It happens in your store on the sales floor with customer service. The bottom line is if your cutting payroll you better know which employee hours are expendable and which aren't. 

On Saturday afternoon you don't need a bookkeeper doing sales reports that can wait to Monday.  You need all hands on deck helping customers. 

Have you ever gone into a supermarket and couldn't find anyone to help you after 5pm except a cashier?  Imagine if you did?  what if someone was there to help you find your favorite items.   I imagine more sales.

Think like a Customer and you will know how your Customers think!

How to Increase Retail Store Profits Without Increasing new Customers

Other than increasing retail store sales  by increasing customer flow there are things a good business person can do to increase profits.

Every little bit added together can make a dramatic increase to store profits when sales are not increasing.

1. Increase the gross margin of each sale. That means buying items at a better price and selling them for a higher retail profits. Shop around and get the best deals possible. Look at the bottom line price that includes discounts for cash payments, and shipping costs. These costs adding in can bring margins up or down.
2. Control Shrink. Shrink can bring a store to its knees and force it to close. Control Shrink and watch you store's profits climb.
3. Payroll expenses. Don't tell your employees but payroll is one of the largest expenses any business will have. You must have the right balance in man hours to run a store correctly. Too few and there is no to do the work. Too many and your just wasting money. Salaries need to stay competitive. You get what you pay for. Finding the right people you pay less and train can save much on payroll.
4. Getting the right location is very important. You want the lowest possible rent with the highest possible customer flow. With a unique retail store people may travel anywhere to get to you. If you have an average store you need street traffic to pull people in the door.
5. Other expenses. Keep good records. If you don't know what your spending on things you cant control them. Keep spread sheets with all your expenses. You should have a column for current expense, last years expense and plan budget. Break it down month and year. Constantly review them to see where improvements need to be made. These expenses include everything you spend money on broken down by category. Some expenses include: Travel, insurance, office supplies, cleaning supplies, services, phone, electric, repairs and maintenance, banking, garbage, etc.
6. Good Customer Service. Keeping your current customers spending the same amount is as important as increasing your sales. The last thing any retail store wants is for sales to decrease. Keep your current customers happy and your customer base will increase by word of mouth. Bad Customer Service and watch your sales drop.

You would think at looking at all these things that increasing profits would be hard to do.  But just a little change in each area will increase your profits.

 Every little bit adds up to a sizable increase.  

Here's an example.

Today: Sales $250,000

cost of goods $145,000 = 42% gross margin

Payroll 40,000

Rent 30,000 = 12 months @ $2500

Shrink 5,000 = 2% of sales

Utilities 7,200

Supplies 1,500

maint. 1,500

other 1,000

Profits $18,800

Get better pricing on goods, sell more items per customer, better customer service, cut back on man hours, control shrink, recycle, cut back on off hour lighting, add power saving light bulbs, change to an online phone provider, save on bank fees and supplies, Negotiate lower rent, fix things yourself etc..

Plan : Sales $250,000  ( no increase in sales)

Cost of Goods 137,500 = 45% gross margin

Payroll 39,000

Rent 28,800 = 12 months @ $2400

Shrink 4,500 = 1.8% of sales

Utilities 6,000

Supplies 1,200

Maintenance 1,200

other 1,500

Profits $30,300 = 61% increase

Increase Sales by 4% or $10,000 and Profits go up to $34,800. Its important to note that these numbers aren't real and yours will be different. But it shows how with a little effect in all areas of business you can make a big difference to the bottom line.

Retail 101: Tip of the week, FREE ADVERTISING !

Everyone wants something for free.  But as a small business retailer do you utilize everything in your reach to bring more customers into your store.  A lot of failure is because strong headed small business men are always looking for a fast cash in, to their advertising dollars.  Instead of building strong bonds with their customers and the community.
Here's a some free and low cost ways of promoting your business to bring in more customers.

1.  Word of mouth

• 
  Sound so simple but it's the most important advertising you can do.  You can spend hundreds of dollars and not do what a happy customer can in promoting your business.  Rule #1 keep your current customers happy with good customer service.  Rule #2 go right out there and ask your customers to suggest your store to others.  This can be done simply  by engaging your customers in conversation.  You can also offer a referral bonus to them. 
•  Example of a low cost referral program.  Give out business cards as an advertisement for the
  program.  The customer puts their email address on the back, and gives the card to a friend to come into the store for a discount.  You now email  the first customer back with a  thank you.  Offer them a slightly bigger discount for being such a good customer and hopefully bringing in even more new customers. Plus you've started a email list for future online advertising.   

2.  Make sure your name is seen

• Who knows your hidden away in your small store.  How many times do you see a sign of a store near ones you visit now.  Your not likely to just walk in for no reason if you don't know who they are and w
  hat they sell.    How well does your store sign promote what you sell.  Toy R Us ,office Max and Petco don't have a problem here do they.    Does your sign describe what you sell?  Does your sign say Matt's in big letters and Pizza in fine print or the other way around.  No one cares who Matt is when they're looking for Pizza. 
• Paying to have your name advertised in the newspaper is  always important but keep to a budget that works for you.  There are low cost ways to just get your name in print and keep in good with the community. 
• Contribute to Community fundraisers.  Keep to a budget.  Make sure you know your name will be listed in journal and fundraising advertisements.  Seek out those Charities that would best bring in customers.  Ex. if you own a sporting goods store, support local sports clubs. Post it in your store, let your costumers know it.  Check with your accountant part or all of the contributions may be tax de
  ductible.
• Join the local Chamber on Commerce.

The Internet

• I keep hearing 40%  of small business don't have a web site.   I'm confused as to why not.  I can get you one for free, just like this one!  You don't have to have a fancy web site that you sell customers from.  But you do need the free advertising you can get.  Customers used to use the phone book to fi
  nd local businesses, now they use Google and other search engines.  If you can't find your business easy on google, neither can your customers.  If you need help setting up a simple web site I can help you for a small consulting fee.  Email me at Kogward@gmail.com for more information.
• Use Social Media.  Facebook, Twitter, Myspace  promote yourself to your friends, friends of friends and so on.    More and more people are doing their web searches from facebook.  Does your name come up in the results.  Look me up I have three blogs I promote.  http://theretailconsultant.blogspot.com/ , http://kogwardcollectibles.blogspot.com/

Print

 Advertising

• Most importantly "No Sign, No Sale".  Do your customers know its a great deal?  Even if your not discounting the price if you have a good deal for the customer  let them know.  Supermarkets  found that putting up compare and save signs work.  Show the value in store brands or price compared to other stores.  Using in store signs is important to highlight specials but don't over due it, it can look confusing to the customer. 
• Flyer's:  You don't have to put ads in the newspaper to get the word out.   Make your own flyer's, pass them around town, hand them to the other stores in the area, hand them to every customer that
  comes in.  Use them as bag stuffer to keep your name visible when customers get home.  These flyer's should be the same advertising you'd put in the newspaper.  If you have a simple word processor on your computer you can make your own. 

Just remember the bottom line is to make your business more visible to your customers and future customers and make a profit doing it.

Ways to Increase Retail Store Profits.

Follow @Kogward Simply putting a little effort in each of the following areas will bring back big increases in your bottom line.  Focus on all areas, giving a little extra to those that are tougher for you.

1. Increase you customer count.  Easiest way to increase profits is to increase sales.  There are lots of  ways to get more customers into your store.
2. Increase your ave transaction.  Increasing the amount each customer spends in your store takes really good sales and customer service skills.  You don't need any advertising although good signage and merchandise presentation helps. 
3. Decreasing Expenses.  I think this speaks for itself.  Keep good records, knowing what your spending is the first step in controlling it.  Reduce Shrink!
4. Increasing Gross Margin.  Margin is the amount of money you make before expenses.  Or simply put Gross Margin = Sales - cost of goods.    If you buy a book for $1.00 and Sell it for $2.00 then gross margin would be $1.00 or 50% of every dollar.   Now find items that cost you less and sell them so you can make more than 50% . 

Here's an example:

100 customers spending $8.00 each = Daily Sales of $800  , $5600 a week,  $291,200 a year
margin 50% = $145,600 - expenses of $70,600 = $75,000 Profit .

Increase 10 more customers per day spending $1 more = daily sales of $990.  or $373,550 yearly sales.
increase margin by 2 cents on the dollar or 52% and decrease expenses by less than $15 a day to $65,610.  Total Profit is now $122,000 an increase of $47,000 or 62%.

You can easily see that doing a little can compound into a big profit increase on your bottom line.

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The Importance of Good Customer Service In managing A Retail Store

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The Importance of Good Customer service in a retail store goes far beyond making that one sale to that one customer.

Here are 4 reasons why good customer service in a retail store will increase your business and bad customer service can put you out of business.

1. Make or increasing the Retail Sale.      
2. Return Visit by the Customer.    
3. Free Word of mouth advertising.
4. Controlling customer shoplifting.

Make the Sale

It is important to always greet your customer professionally.  Don't ignore customers when they walk by.  Just say hi, hello, how are you doing.  It lets them know you know they are there.  It is very important to be friendly but not scare off the costumers.   These customers are more likely to come to you when they need help. Be helpful but not an annoyance.   I always look at situations as if I was the customer. What kind of customer service do I want.  I hate it when I get asked 4 times by 4 people with in 5 minutes " Can I help You!".  My reaction is to turn around and walk out.  

If a customer can't find something and no one helps them.  Then you lost the sale.  It is very important to take study of your customers, if they look like they can't find something, step in ask if they need help.  "Are you looking for anything special?"

Be knowledgeable.  There is nothing worse than telling the customer I don't know where something is if you have it.  It means your lost the sale.  on the other hand after helping the customer find their item maybe you can suggest an add on item like batteries or French fries to the sale.

Return Visits & Word of Mouth Advertising

Getting a customer to return to your store and word of mouth advertising go hand and hand.  If you do a good job, the customer will want to come back.  If you do a bad job, they will never come back.  If they like your store a lot, then they will tell their a few friends and family about your store.  If they had a really bad experience in your store and left upset, then they will tell everyone they know every time your store is mentioned for the rest of their life about how bad an experience they had.  They might even write letters and go on Facebook to tell more people about how horrible the customer service was. 

It is a lot easier to lose a customer than to make a new one.  It takes over five new customers sometimes more to fix the damaged caused by one upset customer.  It costs a lot in promotions and advertising to make one new customer. It cost nothing to lose 5 in 5 minutes by giving really bad customer service.

Controlling Shrink

By this time you all think I'm crazy. What does good customer service have to do with controlling shrink? 

Good Customer Service is you first line of defense in fighting off customer shoplifting.  If a shoplifter knows they are being watched they are more likely to leave with out shoplifting. Take study of your customers. A professional shoplifter looks for opportunities.

 I hate it when I get asked 4 times by 4 people with in 5 minutes " Can I help You!".  My reaction is to turn around and walk out.

 You have to know the signs of a shoplifter.  It is easier and more time and cost productive to make a possible shoplifter not want to shop in your store.  Then it is to try to catch them. 

Have you heard security called to an aisle where a group of teens have gathered?

It's not just to let the employees know there are potential shoplifters in that aisle.  It is also to let potential shoplifters know their being watched.  This is where the importance of good customer service works to the advantage of store managers.

So remember Good Customer Service habits will make a customer want to shop in your store.  They will tell their friends and family to shop in your store.  Their children will get a accustomed to shopping in your store and continue as adults.  You increase your chances of making a lost sale and increasing the size of the sale.   You also decrease your the overall shoplifting in your store. Increase your Profits!

With bad customer service no one will want to shop in your store. They just come in to shoplift from you!

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Custom Printed Party Favors, Wedding, Birthday, Graduation Gifts

How can Mom and Pop compete with Mega-Mart Stores.

Sam Walton founder of Walmart gave some good advice.  You don't have to compete with the Mega-mart to become successful.  Find a niche products and give the customer service and advice better than anyone else.  A good example would be Staples.  Where Walmart does sell office supplies and electronics, they don't have the selection that Staples or OfficeMax can offer.  They are cutting back on the craft supplies and selling more groceries.  Mega Marts like Target, Kmart and Walmart only sell a sampling of products in each department.  If you want a special item you'll need to go to a store that specializes in just that line of products. 


Find yourself a product that Mega-marts and Super Home Centers can only sell part of the selection. 
Ever go into a Home Depot and get help from someone who knew anything more than you already did?


Become and expert and let the public know your an expert.  Give the Customer Service unheard of at Target, and Walmart.  Don't compete with them, use them.  Rent a Store as close to them as you can, with a product and service they don't have. Use their customer traffic to promote your business. 


Go into any Mega-Mart and ask the clerk to find a book on writing a blog.  Yeah right, good luck.

If you want a special item you need to go to store that specializes in just that line of products.