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November 2009
When Customers Get What They Want
EVERYONE WINS!
Among the changes in consumer behavior in recent years is
their attitude toward salespeople in stores and how they respond
to high pressure selling. Such sales tactics most often
alienate customers and send them to the competition. In one
recent study 62 percent of consumers said they were turned off
by high pressure sales tactics. At the same time, trust in what
salespeople say has become a major deciding factor for where
customers choose to buy.
During this recession we've seen more aggressive attempts by
retailers and their salespeople to sell extended warranties on a
wide variety of products including electronics, appliances, and
more. Rather than integrate the sale of an extended warranty
into the sales process from the beginning, attempts to sell
these warranties often aren't made until checkout. This may
result in a few additional sales, but it takes time and is a
sure-fire way to alienate other customers waiting in line.
Extended product warranties can be invaluable for many of
today's complex products. But selling them is like selling
anything else. There must be real, tangible, explainable
benefits for the customer. There are no short-cuts to selling
extended warranties. The customer needs to understand how owning
a complex piece of electronics or one of today's sophisticated
appliances can be costly if in-home service or repairs become
necessary.
What surprises me is the number of retailers trying to sell extended
warranties on inexpensive, throw-away electronics priced under
$100. While selling such warranties may be profitable for the
retailer, do they even remotely benefit the customer?
If the goal is to keep the customer satisfied and coming
back again and again, extended warranties must also benefit the
customer. They must be sold the same way you sell any other
product or service by focusing on legitimate customer benefits.
FROM TOO MUCH TO TOO LITTLE?
During holiday 2008 luxury retailers experienced major problems
due to too much inventory. Markdowns were common with designer
merchandise being sold at discounts of 50 percent to 70 percent.
To ensure the problem would not occur this year, luxury
retailers bought far less merchandise. It's been reported that
Saks Fifth Avenue has reduced holiday inventory levels by 20
percent. The question is, will such a reduction in inventory
result in some lost sales?
EARLY BLACK FRIDAY RESULTS!
As this is written it looks like Black Friday produced lots of
traffic in stores. Much of that traffic was driven by such
electronic products as computers, flat screen televisions,
computer games, cameras, GPS devices, and the like. According to
numbers from the National Retail Federation (NRF), the nation's
stores and Websites attracted more than 195 million shoppers
over the weekend--a substantial increase over last year's store
and Web traffic numbers.
Unfortunately, shoppers were still quite cautious and spent
$41.2 billion, slightly more than they did over last year's
Black Friday weekend. Retailers have always been optimistic and
this year doesn't appear to be any different. Most think the
2009 holiday shopping season will be better than last year. I
think there will be some surprising winners this year. Losers
will be those that continue doing the same things while
expecting different results.
National Retail Federation's 2010 BIG Show
 On January 11, the NRF and American Express OPEN Network will be
holding a very special seminar as part of the NRF's 99th Annual
Convention. The seminar will include three speakers presenting
topics specifically for independent retailers. The event will
begin at 9:00 a.m. and will end at noon. I will be one of the
speakers and will be hosting a panel of independent retailers
from my book Retail Superstars: Inside The 25 Best Independent
Stores in America.
If you are attending or thinking about attending NRF's Big Show
in January, I look forward to meeting you there, and I encourage
you to attend the seminar on January 11. You will learn from
some very good speakers and retailers. This is one of those
events you don't want to miss.
Thanks for all the wonderful emails and letters sent to me from
people who have enjoyed reading Retail Superstars. They tell me
the stories of the retailers profiled not only are fun to read
but also motivating. These superstars are some of the most
creative and hard-working retailers I've ever met. And there are
lessons to be learned from them; ideas you can use in your
business.
These independent retailers go about their business serving
customers and selling unique products all the while enjoying
what they do. Many people have told me about other stores that
should be included in my next book about retail superstars.
Give yourself or others in retail a truly inspiring gift this holiday season.
You can order Retail Superstars from amazon.com and other online
booksellers or from your favorite neighborhood bookstore.
On the Road Again in 2010
I have some great opportunities to speak to some wonderful
audiences in all kinds of retail segments:
JANUARY
National Retail Federation New York, New York
Topic: "Inside the 25 Best Independent Stores in America"
Do It Best Hardware
Orlando, Florida
Topic: "Strategies for a Changing Retail World"
International Music Products Association, NAMM Show
Anaheim, California
Topics: "Strategies for a Changing Retail World" and "Becoming a Retail Superstar"
National Shooting Sports Foundation, SHOT Show
Las Vegas, Nevada
Topics: "Strategies for a Changing Retail World" and
"Double Your Sales and Triple Your Profits with High-Impact Marketing and Promotions"
FEBRUARY
World Market Center Las Vegas, Nevada
Topic: "Becoming a Retail Superstar"
Texas Association, Directors of Volunteer Services Houston, Texas
Topics: "Retail Success" and
"Strategies for a Changing Retail World"
Toy Industry Association, Toy Fair 2010 New York, New York
Opening Keynote: "The Post-Recession Consumer: Will Retail Ever Be the Same?"
Independent Jewelers Organization Dallas, Texas
Topics: "Retail Success" and
"Strategies for a Changing Retail World"
Photo Marketing Association Anaheim, California
Topic: "Becoming a Retail Superstar"
I'd love to speak for your organization. If you're planning a
convention, trade show, or corporate conference, give us a call at
800-766-1908.
Until next month...
George Whalin's Newest Presentation...
It is always a challenge for independent retailers when
consumers cut back and limit their spending as they do during a
recession. Yet, in the middle of one of the most severe economic
downturns in memory, there are independent retailers who are not
just surviving but thriving. Any retailer who wants to build a
more successful business can learn some extraordinary lessons
from these superstar independents.
George Whalin's new book Retail Superstars: Inside the 25 Best
Independent Stores in America tells the story of 25 stores that
are redefining what independent retailers can do in a highly
competitive environment. These amazing retailers are growing and
prospering alongside national chains and big box stores of all
kinds.
This unique presentation is jam-packed with the strategies,
ideas, and business-building tools employed by the independent
retailers profiled in the book. Whether just starting out or
eager to take their business to the next level, retailers can
learn what has worked for the best in the business even in tough
economic times.
Participants will learn how...
--Independent retailers stand-out and thrive against much larger competitors including national chain stores.
--Innovative store design can be used to attract more customers and build a more successful business.
--The right merchandise mix and selection can be the most powerful competitive edge.
--Even the smallest stores can use creative marketing ideas and tools to attract customers and keep them coming back again and again.
--Customer relationship building has become retail's most important and powerful business strategy.
And much, much more!
This is a program retailers won't want to miss!
Whether you're planning a convention, trade show, corporate
conference, or managers' meeting, a presentation by George
Whalin will add value for your attendees. Check out George's other
presentation topics at whalinonretail.com.
If you have an opinion or thoughts about any of the topics
posted, I invite you to comment at retailerblog.com It's easy to
do. And if you have a topic you would like to see addressed on the blog, send me an e-mail at george@whalinonretail.com.
We encourage you to pass this publication along to
your associates and colleagues. If all or any portion of this
newsletter is reproduced in another publication, attribution
should read as follows: Copyright 2009. Reprinted with
permission from George Whalin's Retail Management E-Letter. To occasionally reprint portions of this newsletter one time, no
express permission is required. To reprint in more than one venue or multiple articles,
please contact us at 800-766-1908 or info@whalinonretail.com.
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