SALES? SAVE YOUR
MONEY
JULY 2008
“Where is
everyone?”
That must have been the plaintiff plea of countless Australian
retailers and business leaders during the traditional, annual
June winter and stock take sale period.
Many retailers opened their doors to empty or near empty
pavements.
Television news crews, fulfilling assignments to capture
the teeming and surging crowds, returned to their studios
in search of file footage from past events.
The nationwide retail sector was having a party, but few
were accepting the invitation. Where was Corey when you
needed him !!! Guest appearances on “Big Brother”
were doing little or nothing to the ratings or the bottom
line.
Some legal practitioners have made money. They provided
the consulting advice that a sale is an “invitation
to treat”, as distinct from an” invitation to
a treat!”
Consumer indifferences to the sales was palpable. Sales
event fatigue was evident everywhere. Moreover, consumers
have become sensitive to the reality that there is no or
little financial disincentive when they did not respond
to a particular sale. There was the common attitude that
there was always tomorrow, next week or next month, when
the same retail outlet, its competitors or substitutes would
most probably be conducting a promotion or similar event
with equally attractive offers.
The figurative muscle-power and deep pockets of major national
retail chains were funding bigger advertisements with bolder
headlines, offers of up to 50% off recommended retail prices
and the availability of five year interest free loans. It
was all to little or no avail.
Comparative same period sales receipts were down or at best,
flat. Given average and typical retail price increases during
the preceding 12 months of between 6% and 10%, that suggests
unit sales were consistently in decline.
There was little difference in industrial sales and with
business-to-business transactions. “End-of-financial
year” and “stocktaking sales”, or in essence
“clearings” were generally met with stonewall
resistance from corporate clients. They too have become
financially prudent, lowering inventories and being immune
to the temptations of discount prices. The just-in-time
philosophy is a lot like that!
WINNING OPTIONS
The time is nigh
for investment in the training of people and upgrading (in
some instances, the introduction) of efficient database
management and customer relationship management (CRM) systems.
Really knowing, connecting with and giving commitment to
existing prospective and past customers and clients are
collectively the most efficient, effective and immediate
means to increase immediately revenues, margins, profits
and customer satisfaction. It is never too late.
Relevance of a business, its people, products and services
is enhanced from a better understanding of the lifestyles,
business circumstances, aspirations and individual needs
of consumers, companies, departments and networks.
Such calls for action beg the question, why wasn’t
it done before? For some, it was. It is they who are enjoying
better, more stable and in isolated instances, significant
increases in demand, sales and profits.
A central issue in addressing the evolving and enveloping
marketplace is time. Some will contend it is too late. Others
will suggest that it will take time. More will state that
the current priorities of accelerating cash flows and increasing
available cash leaves little time, money or resources to
address these propositions.
Each may contain an element of truth. However, Albert Einstein
would contend that time is relative.
If no action is taken now, just how much time is left ….
to take remedial action or..., period.
It’s time to marshal one’s resources. Energy,
creativity, product and customer knowledge, positive thought
and actively taking assertive initiatives counts for a lot
in these times.
THINGS TO AVOID
A herd mentality
is something to avoid at most times, particularly now. The
booking of and payment for bigger advertisements (regardless
of the media) with bolder headlines and more financially
attractive offers will not necessarily be appropriate or
prudent.
DON’T DO IT ALONE
Regardless of
size or capabilities, the best prospects for success are
with the collegiate and strategic partnership initiatives
involving suppliers, distributors, associates and customers,
together with purchasing, marketing and neighbourhood networks.
Common bonds typically provide common platforms for joint
and multiple positive flow on effects.
DIFFERENT PERSPECTIVES
Understandably,
concerns pervade the business, economic and personal landscapes.
There is a reluctance to outlay anything at this time without
some measure of surety of a positive and relatively short
term return.
Considerable cerebral energy will be expended in determining
what new and innovative things can be undertaken to have
impact and to provide “value-add”.
Spare a thought then for a little contrarian thinking.
Sideline for a moment contemplation about what new and more
can be done.
Attention on what one should and can stop doing….
NOW, is one avenue for freeing up things and channelling
available resources to high return activities.
This should be a process undertaken at the margin. For many
people their typical week involves up to 30% of time being
involved and indulged in things that show little or no economic
advantage. No matter how pleasurable, perhaps these things
can be deleted or, at best, put on hold.
More available time provides the scope to contact, walk
among and engage existing and prospective customers and
clients. The rewards can be immense.
