Many
retailers face a common problem: what do you do when you are directly competing with one of your vendors?
For example, a store selling Sony products has to compete directly
with Sony online, which has inherent cost and supply advantages over
brick and mortar retail businesses.
Not only is it easier than ever for customers to buy products
directly from manufacturers online, but they are opening their own
stores and using third-parties to get around the very retailers who
built their business.
The problem is, the customer still needs a middleman.
As an independent retailer, how do you turn a profit on products like this when your margins are thin to begin with?
From the point of view of a traditional brick-and-mortar retailer, adding value for the customer
can
be an easier proposition when you’re competing with online giants like
eBay and Amazon. The very fact that you are able to provide instant
in-store customer service has for years, put you at an advantage.
But when you have to compete on price directly against vendor online
stores, things get more difficult. One merchant told me a vendor dropped
the prices at their online store below what it costs her to buy from
the vendor. Sound familiar?
While you should still focus on bridging any service gaps you find in the vendor’s operations,
you also have to carefully invest in thinking about how to compete.
Your first rule of thumb is simply to look the part of a successful
competitor. It is important that your store looks every bit as
professional and inviting as your vendor’s. In fact, you should put the
effort into looking
better than your vendor.
While you might think it looks vintage to
keep things the way they were when dad started it in the 60′s, shoppers don’t.
You just look old.
Today’s shoppers want the
illusion of vintage. They want the
feeling of a funky crab restaurant that is clean, the food is great and
the servers well-trained so they seek out Joe’s Crab Shack – part of a
multinational chain. Same in retail. We want the feel of old-time
clothes but want it without the BO under the arms and the questionable
stains on the pants.
That means your store shouldn’t look, feel, or smell anything other than first rate and modern.
Update your flooring, clean it, if possible replace it. Replace your
worn-out furnishings with new. Replace your monolithic 26″ tall counters
with modern counters 32″ high. Replace your display fixtures that have
had the chrome ripped off from all the scotch tape with gleaming new
ones. Upgrade your yellowing fluorescent lighting covers and add even
more bulbs or replace with new LED spotlights where appropriate so your
camera equipment, vehicle, tools or kitchen appliances gleam.
Then ensure your professional and attractive displays are
well-maintained with a cleaning crew, not leaving it up to your sales
team when they
have free time.
In short, minimize anything that makes you look tawdry or
out of touch
with the times, particularly if you are selling computer hardware,
software or electronics. By cultivating the right image and going to
extra lengths to provide your customers with a modern impression, you
stand a better chance of winning business from the easily swayed
consumer whose primary concern is the merchandise itself, not where he
or she bought it.
And lose your multiple messages of SAVE NOW! And FREE DELIVERY! And
“SALE” in your point of purchase materials. Customers aren’t stupid and
when we notice dozens of day-glo signs hanging from the ceiling,
papering over your display windows and taped to every product; it looks
like you’re like desperate. Even if you are,
never look it.
Next get the energy right in the store. That means finding ways to
get your vendor’s products into the customers’ hands. Finding ways to
demonstrate live – not a LCD screen – using your best and brightest
people. That might mean borrowing a page from the Apple stores’ original
plan of holding classes in the store. That might mean borrowing a page
from the new AT&T store and have cubbies where customers and
salespeople can sit and talk about the products.
Niche your store to specific interests of customers. If some
customers use your products for sports or music or education, build
lands within your store to get customers curious.
A curious customer stays longer in the store and is more likely to buy.
It is OK if someone just spends 30 minutes “looking.” Be grateful for it!
Yes, of course you’ll want to close the sale but that isn’t the goal of the interaction.
At the same time, how can you help your customers get more out of products they’ve already purchased?
Your
Analytical salespeople who pride themselves on knowing everything may not be the best salespeople because they can
vomit too much information to potential customers.
But once that customer has purchased and used it for awhile, they can
be eager for becoming smarter about their product. You can really
deepen your relationship because the customer who is most likely to look
for low price is the one most interested in information. Find ways to
connect to them, offer by email, text or old school phone call offering a
tip for getting more out of their purchase.
The old adage that you need to know your customers is still true.
Let your knowledge guide you in selecting merchandise. Know which
products from a particular vendor they are looking for, and then keep
the right quantities of those products in stock.
And remember your best salespeople should be able to poke holes in
anybody’s products, so train them how to show several answers to your
customers’ questions, not just their own personal favorite of one
vendor.
You are not going to outdo the vendor or a retail giant like
Amazon when it comes to supplying each and every make and model under
the sun. Instead, direct your energy into making sure that you are able
to meet the demands of your customers when they come to your store to
shop for popular branded products. And guide them to the choices you
have, not just the one they found online.
Article by: Maria
Working happily with National Merchant Services
www.processnms.com
Happy Processing!!!
Article source:
http://www.retaildoc.com/blog/retailers-how-to-beat-a-lower-priced-competitor-your-vendor/
