Those businesses which have survived the pandemic thus far have learned that you’re never too old to learn new tricks. In this column, US bed industry veteran Gordon Hecht suggests a few approaches worth re-evaluating on the road to retail recovery (such as being a little more open-minded around hiring policy) …
It’s gone half-past 2021, and it’s business as unusual out there. You, who are the survivors, have been on top of creative solutions to save and sustain your business. Sure, a few of us have made the mistake of holding onto short-sighted or outdated methods, but the last 15 months have made us able to overcome any roadblocks that come our way.
Here are a few winning and losing practices from 2021 thus far, starting with the winners …
Can you loan me a bed?
Shoppers planning a major purchase should never wait until the last moment, but not a day goes by in our retail world where a shopper hasn’t an immediate need for our products. I was working a retail floor this past week and a shopper needed a full-size mattress, pronto! They had visitors coming that evening (and apparently did not want them to stay too many nights). They weren’t looking to go on the cheap – they just needed something there and now. I was unable to fulfil their need, and they left without a purchase.
It wasn’t until the next day that a co-worker suggested that I should have offered a loaner. Just something to help them get by.
Whether you sell mattresses, appliances or lawn equipment, with the supply issues we’re all facing, it’d be a boon to your business to have a couple of loaners available. Mattress people have it easy – just require that a shopper purchase a mattress protector to qualify for a loaner. And since it’s only a short-term thing, a small double (queen-size here in the US) will work in almost every situation.
Queen for a twin sale
From our lofty retail perspective, the ‘king for a queen’ price offer looks super groovy. It’s a big sale with big savings. But, looking from your shoppers’ eyes, it doesn’t make sense.
It’s a fact – queen-size mattresses still dominate the US market, with 50% of the sales. There’s better than even chance that your shopper has a queen-size mattress at home, with a queen headboard, queen sheets, and is used to the extra roomspace they get with a queen. There’s little chance that they will upgrade in size.
Your bank account will also tell you that you sacrifice too many margin dollars in the K for Q deal. Convert it to a queen for a twin (a single in UK parlance – or, indeed, any size, Q, F, twin) for the same price, and you will attract more likely buyers, save more precious dollars and put a few more shekels in the sock drawer.
In stock and on sale
Some retailers took the risky leap and ordered inventory during dark times. Others saw the trend last December and figured that they better load up now. Not many stores have all their merchandise in stock, but almost all have some merchandise ready to go.
The big ‘A’ in retailing today is availability. Having products ready to deliver is the winning edge. More than price, features, warranty, promotions, financing, or salespeople wearing a nice suit and shiny shoes (I suggest you still offer the last one). People are trading up to get a product today. They are compromising on colour, size, style, and price.
Promote whatever you have as in stock and on sale, and you’ll appeal to the most important factors in your shopper’s path to purchase.
Note to the sales team – if you have merchandise in stock, there’s never a ‘fire sale’. There’s no need to break price. The merchandise will be purchased, and soon. Your shopper just has to decide whose house it will go to, theirs or the next shopper.
Now it's time to look at the losing practices …
Long-haired freaks should not apply
Too many retailers tell me that they can’t hire, and their help wanted posts bring in ‘the wrong people’.
It’s a great time to look for a job! And, in a weird way, a great time to hire people, too. In many parts of the nation, the best-paying job is staying home and binge-watching Jerry Springer. That means anyone who applies for your open position has the most valuable human resource – they want to work.
If you believe in ‘hire for attitude and train for aptitude’, then this is the perfect time to hire. And, as we move towards the middle of the 2020s, it’s never been more important to have your sales and operations team look like the people they serve.
Why not take a chance and title your next hiring ad ‘long haired freaks with no experience and lots of tattoos wanted’? You may just find a few gems.
I know my customers
Loyal customers (people who shopped and purchased from you multiple times) are the lifeblood of building your business. They are attracted by your location, marketing, merchandise selection, person-to-person relationships, and the services that come with that. It’s estimated that it costs six times more to attract a new customer as retaining a loyal customer.
Many retailers make their purchasing, display and advertising decisions by catering to their loyal customer base. That sounds good, but is an essentially flawed strategy – especially in the durable goods business, with infrequent return purchases.
Every year there is a drop off in your number of loyal customers. They are saturated with the merchandise you sell, they switch loyalties to another retailer, or, with Baby Boomers, they’ve gone on to a better place (you know, like Florida for the sun, or Wisconsin for the fine cuisine). In essence, you are continuing to market to a shrinking pool of likely buyers.
Yes, you know your loyal customers. If you are the dominant retailer in your market, that comprises 20% of the potential buyers. Why not flip it around and market to the other 80% of the people who don’t know about you, what you sell, and what makes you remarkable? You may lose a few of your raving fans, but you are losing them through attrition anyway.
It wasn’t the Five Man Electrical Band that sang The Times They Are a-Changin’, but they did tell us ‘Sign, Sign, Everywhere a Sign’. And the sign says the times are changing.
Business as usual is a no-win strategy in unusual times. Sign up for changing a few practices, taking a few risks, and you’ll be alive and doing fine.
Gordon Hecht is a business growth and development consultant to the retail home furnishings industry. You can reach him at [email protected].
Pictured: Perhaps it’s time to re-evaluate hiring policy and take a risk on the next recruit? (picture credit iStock.com/weareadventurers)
