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positive thinking

In a series of articles addressing how retailers can help make their businesses more profitable, former retailer and ex-president of retailers’ association Retra, Malcolm Marshall, offers some advice on how to survive when the going gets tough

This month, I want to write about the prospects for consumer electronics retailers in 2008 and how you can tackle the issue of an economy that is slowing down with retail in general feeling the pinch.

Firstly, and very importantly, make sure you do not have a negative attitude as this will rub off on all your staff. The consequences of negativity from the top will be that the sales staff become frightened to really sell.

They will settle for the scraps instead of actually using their selling skills to maximise the opportunities that arise. The scenario you do not want is where sales for a flat panel television happen without accessories, brackets, cabinets or maybe even a sound system added.

POSITIVE ATTITUDE
It is imperative that the management of the business conveys a positive attitude whilst making sure the foundations of the company are as solid as possible.

There are some basic steps that will help, starting with making sure your costs are controlled. Your shop should always be in pristine condition and your staff are kept well trained.

You will have to be more proactive as well as being more reactive. This means, if in your particular location another dealer, whether multiple or independent, does something aggressive, you are fully aware of it. In other words, do not stay in your own little world and think you can just muddle through.

You need to get out and see exactly what the opposition is doing and change your promotions when and where required. Sometimes, of course, it will not be possible to react, but do not worry. Knowing is half the battle, so when a customer confronts you with an issue, you are not caught on the back foot and make sure your staff are informed, too.

Your customer service will also need to be assessed. It may be that you feel it is okay, which that is fine. However, it is never a bad thing to just look at how it is working, see how many complaints you receive or whether your customer satisfaction rating is as high as you thought it was.

You would not believe how many dealers I have visited over the years during my time as president of Retra and as a consultant, both now and six years ago, where the owners of the business were completely unaware of the issues that cropped up from dissatisfied customers.

You have, I am sure, heard the saying, “A satisfied customer will tell four people – a dissatisfied customer will tell 21.”

That is so true, but also true is the fact that it is much harder to attract a new customer than keep an existing one, so go the extra mile.

Let’s be honest, we all take our eye off the ball sometimes, it is only natural. My point is that if you do it during hard times, the consequences are a great deal more costly.

MAXIMISE POTENTIAL
Do not get me wrong. I am not saying the end of the world is coming, far from it. There will still be a great deal of business out there for the taking.

If you want your share, however, you will need to step back and take a little bit of time to assess where you are and how you might maximise your selling potential.

So, let’s not get too downhearted – there is still a great deal of flat panel business to be done along with other products.

So do not put all your eggs in one basket and forget the other equipment. If you do, you do so at your peril. Remember the opportunities from digital switchover cover many product lines.