Selling is an art as old as time, and despite the changes taking place across retail, there remain some fundamental truths to the profession. This month, our US correspondent Gordon Hecht, business growth and development consultant to the retail home furnishings industry, digs out a few proverbs and has a go at sharpening the ‘old saw’ …
Back in the early 1400s, people wrote in a language we now call Olde English. It was defined by adding an extra unnecessary ‘e’ onto a word, and that those words had slightly different meanings than today. Faeder was the word for father. Sweostor meant sister.
The Olde English term ‘old saw’ translates as ‘wise saying’. You know all that glitters is not gold – but you may find value in these old saw proverbs about selling …
You can’t sell from an empty cart
Before we had fancy shop fronts, most retail sales were done from a pushcart. Merchants would leave their homes with wagons full of must-have merchandise. They came back home when the cart was empty. Having merchandise on hand was their best way of taking shoppers out of the marketplace. Strike while the iron is hot. It’s still true today.
You don’t have to stock every item in your showroom every day. You will, however, close more sales today when you can deliver that item immediately.
The best way to make money is to make money
Business is challenging these days. Less foot traffic looking to spend less money. Your plan might include slashing prices and displaying lower-ticket goods. Your margin is up for sacrifice.
I’m all in when it comes to advertising hot buys. And you need to be willing and gracious in selling what you advertise. You also need to sell higher-margin accessories. Show and tell the story of your better-end products to every shopper.
You may not be able to get full margin on every ticket, but you do need to average a heathy margin to keep your business off life support (a 10% discount at retail equals a 20% margin reduction – money doesn’t grow on trees, you know!).
People love to buy, but dislike being sold
You’ve heard it before. Delighted customers tell you they love what they bought. Disgruntled customers accuse you of selling junk.
The art of selling includes giving the shopper the ability to decide to buy based on products having overwhelming value and the ability to improve their life. People buy a $15 soft drink at the Super Bowl or Mouse World because they are having a fun time and the beverage makes them feel good.
You find out what’s valuable to your shopper by asking good questions. As you sow, so you shall reap. What results do they expect from your merchandise? What have they seen in the market that they really love? Did they have difficulties or lack satisfaction from their last purchase? Ask them to describe their perfect experience with your genre of products.
Really listen to their responses. Tell the tale of the specific qualities of your merchandise that will exceed their needs and expectations.
It’s six times more costly to gain a new customer than to attract a past customer
Are you seeing less door swings at your shop? There’s a low-cost solution to build traffic – invite your previous shoppers back into your store.
Here’s the cool thing. They already know and trust your business. They know where you are located. Most have multiple merchandise needs. They are just waiting for an invitation.
Use your email list, your text list, or just plain old snail mail. Reach out and touch someone. Offer to update their pillows. Or upgrade their boxspring to a motion base. Or send them a $100 gift certificate to use on any merchandise in the store. A bird in the hand is worth two in the bush.
It’ll cost you half a yard ($50). And if you’re sick of looking at the paint on the walls, I bet you’d pay that for a warm body in your store.
If somebody gets something for nothing, then somebody else gets nothing for something
Know this – everything in your shop has value. Every product and every service. Each time you give something away you are reducing your valuable margin dollars.
Shoppers love free delivery. I love free trucks, drivers, and fuel. I just haven’t found that. Before you give delivery for no charge, consider these alternatives: tie no-charge delivery into purchasing another high-margin item, like mattress protectors or extended service plans (“Our $119 service plan includes in-home delivery and set-up”);
offer a reduced delivery charge in exchange for a Google Review done on the spot and in the store (“Our delivery charge is $99, but you can have it for $49 if you give us a review on Google”), and you can speed up that process with a QR code; or collect a minimum amount for delivery (“I can’t do a free delivery – can you cover just the fuel and labour cost? It’s about $24).
The same goes for requested free accessories (AKA throw-in merchandise). If needed to close a sale, collect the cost plus a few extra bucks. Make hay while the sun shines. You’ll be amazed at the increase in your margins and dollars collected.
Sometimes the best sale you make is the sale you don’t make
Shoppers are demanding. And at these prices, you should expect it. Your goal is to deliver fair value for buyer and seller.
It’s rare, but some shoppers love to beat you up. They demand discounts on every item, and free services. On delivery day they look for product or service failures to hold you hostage for more allowances.
You think the next discount/complaint/phone call will be their last. It never is. In the history of home furnishings retail, there’s never been a successful second merchandise exchange. I wouldn’t touch that with a 10ft pole.
Look for the signs early on. Don’t cave on price. And if you’ve already made the sale, understand when it’s time to give a refund (and richly reward your competitor with that shopper!).
Gordon can be reached at [email protected]
