Tom Shay

Info

Calendar

Tom Shay

Info

Website:	https://profitsplus.org/
Social:

Contact

Name:	Tom Shay
Email:
Phone:	888-529-5907

Description

Tom Shay, small business management expert, created Profits Plus based upon his years of experience in a family-owned business. Tom is a fourth-generation business owner. He is also an author of thirteen books, a college text book, a columnist for over 70 trade magazines, business coach and small business keynote speaker.

Home
Meet Tom Shay
Contact

Sharks, cockroaches and independent brick and mortar retailers; they’ll be around forever!

Tom Shay - Recorded Session

The COVID-19 virus is only the most recent alliteration of what is to be the fatal blow to brick and mortar retailing. With the closing of a long list of regional and national chain stores and mass merchants over the past ten years, it is easy to believe this period of “shelter in place” could be the end.

However, there is a big difference in the chain stores and mass merchants and independent retailers. The resiliency of independent retailers is not to be challenged. With over 98% of the trade being small retailers, 40% of all retail employees working in these same small businesses, and 91% of Americans shopping in at least one small retailer every week, we see a group that is like sharks and cockroaches – they’ll be around forever!

Tom Shay is a fourth-generation retailer. He teaches how to improve the operation and profitability of the business.

With over 25 years of frontline experience in management and ownership of small businesses, Tom Shay shares and teaches from experience--not from theory!

Profits Plus Podcast

We have a replacement for “item.. →

Podcast

Tom Shay

We have a replacement for “item and price advertising! Let us introduce another free calculator on the Profits Plus website

Podcast

We are thrilled that Ron Friedman joined us for this program. Ron has so many awesome ideas that can affect your small business in a positive way. We.. →

View Content

Visiting with Lisa Shimkat, Iowa.. →

Podcast

Tom Shay

Visiting with Lisa Shimkat, Iowa SBDC state director about how SBDC can help your small business

Podcast

We have a tradition of joining in the celebration by inviting members of the SBDC team as our guest experts for the March Small Business.. →

View Content

Are the affluent your target.. →

Podcast

Tom Shay

Are the affluent your target customer? Chris Ramey visits Small Business Conversations to tell how to adjust your appeal

Podcast

Chris Ramey joined our program to discuss the techniques of selling to the affluent customer. We have found many businesses are challenged in selling.. →

View Content

Articles by Tom Shay

Adapting to the Market

Article

Tom Shay

Adapting to the Market

Article

Build a better mousetrap, and the world will beat a path to your door. What an odd analogy, for mice are known to be creatures of habit. A pest.. →

View Content

What do you sell?

Article

Tom Shay

What do you sell?

Article

Almost every type and size of business has the opportunity to receive multiple trade publications. If you make a point to review them, regardless of.. →

View Content

A good deal for both sides

Article

Tom Shay

A good deal for both sides

Article

In an episode of ‘Law and Order’ one of the prosecuting attorneys is working to decide about a settlement for a case while remembering a.. →

View Content

A 9 Point Customer Service Plan

Article

Tom Shay

A 9 Point Customer Service Plan

Article

As a customer in someone else’s store, have you ever been made to feel you were an interruption to the workday rather than the reason for it? .. →

View Content

What happens when you learn from.. →

Article

Tom Shay

What happens when you learn from other businesses

Article

When retailers from various trades visit they often find they have more in common than there are differences. The logic behind this comes from the.. →

View Content

All Posts

Search/Sort

Post Subtypes

Article
Podcast

Topics

Iowa
profits plus
profitsplus
sbdc
tom shay

We have a replacement for “item and price.. → We have a replacement for “item and price.. →

We are thrilled that Ron Friedman joined us for this program. Ron has so many awesome ideas that can affect your small business in a ...

Podcast

View

0 Podcast-Podcast jplist-topic-tom-shay jplist-topic-profits-plus 0 360977 360977 We are thrilled that Ron Friedman joined us for this program. Ron has so many awesome ideas that can affect your small business in a positive way. We have used many of Ron's ideas; the format of this calendar of past programs of the Small Business Conversations was Ron's idea. With this program, we introduce the 47th calculator on the Profits Plus website; it was Ron's idea. We look at how discounting affects your business in a negative manner. Instead, Ron suggests your using gift cards as a way to protect your margins as well as get repeat and referral business

We have a replacement for “item and price advertising! Let us introduce another free calculator on the Profits Plus website

Podcast

We are thrilled that Ron Friedman joined us for this program. Ron has so many awesome ideas that can affect your small business in a positive way. We ...

View Content

Visiting with Lisa Shimkat, Iowa SBDC state.. → Visiting with Lisa Shimkat, Iowa SBDC state.. →

We have a tradition of joining in the celebration by inviting members of the SBDC team as our guest experts for the March Small Business ...

Podcast

View

1 Podcast-Podcast jplist-topic-sbdc jplist-topic-tom-shay jplist-topic-Iowa jplist-topic-profits-plus 0 360974 360974 We have a tradition of joining in the celebration by inviting members of the SBDC team as our guest experts for the March Small Business Conversations. This program has Lisa Shimkat, state director for the Iowa SBDC, visiting and sharing how their services can benefit your business. We have found that most small business owners are not aware of SBDC and the many free services they can offer.

Visiting with Lisa Shimkat, Iowa SBDC state director about how SBDC can help your small business

Podcast

We have a tradition of joining in the celebration by inviting members of the SBDC team as our guest experts for the March Small Business ...

View Content

Are the affluent your target customer? Chris.. → Are the affluent your target customer? Chris.. →

Chris Ramey joined our program to discuss the techniques of selling to the affluent customer. We have found many businesses are challenged ...

Podcast

View

2 Podcast-Podcast jplist-topic-tom-shay jplist-topic-profits-plus 0 360976 360976 Chris Ramey joined our program to discuss the techniques of selling to the affluent customer. We have found many businesses are challenged in selling to this customer because their sales staff is intimidated, or as the salesperson can't afford the product or service, they do not think anyone else should spend the money. If you have faced this challenge, you will want to listen to this program.

Are the affluent your target customer? Chris Ramey visits Small Business Conversations to tell how to adjust your appeal

Podcast

Chris Ramey joined our program to discuss the techniques of selling to the affluent customer. We have found many businesses are challenged in selling ...

View Content

Adapting to the Market Adapting to the Market

Put the best products where the customers are

Build a better mousetrap, and the world will beat a path to your door. What an odd analogy, for mice are known to be creatures of habit. A ...

Article

View

3 Article-Article jplist-topic-tom-shay jplist-topic-profitsplus 0 360743 360743 Build a better mousetrap, and the world will beat a path to your door. What an odd analogy, for mice are known to be creatures of habit. A pest control expert will tell you that you should move a baited mouse trap if there is no response within three days. Success is not building a better mousetrap, but putting the cheese where the mice are. While we are not suggesting you move your business, we are going to share with you some ideas for moving your strategy. Visiting with several retailers on the phone, each is asked how sales are so far this year. One reports a steady decline over the past two years, another reports stagnant sales, and the third tells of continual sales growth. The first store is a clothing shop. It is the one with declining sales and looks exactly like it did three years ago. The interior of the business is the same color, the counters are arranged in the same manner, and signs look as they always have. Travel to some of the competitors of this business, and you will see they have significantly changed the way they merchandise their stores. Not that they have made only one change during these years, but they have constantly been looking for new items and new ways of presenting their goods and services to their customers. Perhaps if this shop were to change, it would see improvements in its sales due to the revamping of the business. We see the results of his inaction. Is this important to customers? Apparently so. Just look at any business having a grand opening; people come to see what is new. You may not be impressed with the store with stagnant sales. However, its efforts are quite unique. This is a sporting-goods store that carries a lot of t-shirts and related products. For many years they stocked products related to the nearby university in addition to NASCAR, professional baseball and basketball. In the last few years the university has not fielded great football teams; sales of products relating to the university have decreased. In an effort to replace the lost sales, the owner found lines of products relating to pro wrestling. He began to decrease the college mascot products and added more pro wrestling items. His current dilemma was created by the college football team's latest winning streak. Now the professional basketball and baseball products are being squeezed out as pro wrestling and college football are showing increased sales. Ask this owner how sales are, and his answer is that they have been stagnant, but as you can see, if this owner had left his product mix alone, sales would have decreased. Here is one more example of adapting to your market. John L. Morris was an avid bass fisherman. His father, John A. Morris, started a Star Terminal service station and restaurant in 1937. There was a tiny liquor department inside the station. John L. loved bass fishing. He shopped often at a discount store in town, as they had the largest fishing department in the area. John L. asked the store manager to stock some of the exciting fishing equipment he had seen. When he found out the items would not be stocked, he turned to his father and received permission to create a small inventory in the back of Dad's store. Dad's store was an adaptive business. It started as a Star Transfer service station. Dad added a restaurant and liquor store. John L. wanted to follow in Dad's footsteps with his own business. Dad even co-signed the inventory loan that started young John L. in his new business. You may not know young John L.; but if you enjoy fishing, you have definitely heard of his store - Bass Pro Shops. Whether you shop in one of the stores, by mail order, or on the Internet, John L. demonstrates the lesson learned from Dad: adapt to the market. It is not necessary to have the best location, although one of his stores now occupies the former discount store location. One of the lessons I learned early in life from my Dad was, "Good merchandise, well displayed and reasonably priced, will always sell well." Notice the first ingredient in the formula - good merchandise. Surely, good merchandise is what the customer wants. Snow shovels do not sell well in Florida or Southern California, and orange pickers don't sell well anywhere but these areas. The idea goes hand-in-hand with research I remember reading several years ago. Thousands of consumers were asked what they wanted most from a shopping experience. The number one answer: Have in stock what I want. Know today's changing market; have the items I want to buy. Be the next John L. Morris.Original Source »

Adapting to the Market

Article

Build a better mousetrap, and the world will beat a path to your door. What an odd analogy, for mice are known to be creatures of habit. A pest ...

View Content

What do you sell? What do you sell?

Determining what type of business you are in

Almost every type and size of business has the opportunity to receive multiple trade publications. If you make a point to review them, ...

Article

View

4 Article-Article jplist-topic-tom-shay jplist-topic-profitsplus 0 360742 360742 Almost every type and size of business has the opportunity to receive multiple trade publications. If you make a point to review them, regardless of their industry, you will find yourself exposed to many ideas to enhance the operation and profitability of your business, A two-person gift shop can gain from reading the magazine addressed to the operators of a clothing store or a quick-print shop because many of the fundamental business concepts transcend all types of businesses. If you read Dr. Steven Covey's The Seven Habits of Highly Effective People, you will recognize that reading trade publications is part of the seventh habit: sharpening the saw. Looking at any industry, attending a seminar, trade show, visiting with someone in the same business field to exchange ideas, or reading a management book, report or trade publication are all excellent ways to sharpen the skills of the trade. The name of the publication and advertiser has long been forgotten, but the skill that was shown by the company that paid for the magazine ad will long be remembered, In the advertisement, a gas company was addressing restaurant owners. The invitation was to come to their laboratory and test the various brands and types of cooking equipment that were available. The advertisement mentioned that 45 different pieces of equipment had been assembled and that any restaurant owner was invited to bring his chef, recipes and ingredients to the laboratory. The idea was that the chef could test cook before purchasing the new equipment for his or her restaurant. Surely, the gas company is attempting to persuade a chef to cook with gas instead of electricity, but this is also a situation where a company understands that it is selling customer satisfaction as compared to being a company that is selling gas. Now the restaurant owner who might have replaced just a worn-out piece of equipment with an updated model can investigate the alternative choices. Too often an opposite scenario happens as exampled by a report in another trade magazine. A young couple wanted a safety fence around their in-ground swimming pool. Their concern was the safety of their 3-year-old toddler. They shopped the business directory online, interviewed several contractors, and made their selection. A contract was signed, and the fence was soon constructed. During the inspection made upon completion of the fence, the parents discovered there was a method by which the toddler could still gain access to the pool. Obviously, this made the fence unsatisfactory to the couple. The solution was not quick in coming, as the contractor explained to the parents that he had built the fence as detailed in the contract. The parents responded that the fence did not achieve its purpose. Granted, the contractor had fulfilled the letter of the contract, but the problem was in the perception of the sale: the contractor was selling a fence, the couple was buying peace of mind; and as the solution to this scenario was long and drawn out, you can expect that the couple did not provide any referrals to the contractor. In a survey performed by Dr. Richard Feinberg of Purdue University 20,000 people were interviewed about their shopping experiences and preferences. The results showed the five most important factors were:1. Having the item(s) or performing the services that the customer needs or wants2. Saving the customer time3. Providing value to the customer4. Providing the product(s) or service(s) in an attractive manner5. Having someone qualified to assist the customer Note that price is not one of the top five concerns and that the desires of a happy customer are fairly basic. The bottom line of this article is to demonstrate a comparison; did you notice that the first part of the article contained two stories? Most people can identify with the ideas and needs that were expressed in both. The second half was more statistical. Both conveyed the same information, but the first half was designed to help you in seeing a situation from a human perspective as compared to just giving information. Both the stories and the statistics were designed to be persuasive about the importance of paying attention to the wants and needs of the customers whom every person has. The next time you have the occasion to make a difference in whatever work you do, you can decide, "what do you sell?"Original Source »

What do you sell?

Article

Almost every type and size of business has the opportunity to receive multiple trade publications. If you make a point to review them, regardless of ...

View Content

A good deal for both sides A good deal for both sides

Working to eliminate challenges with vendors

In an episode of ‘Law and Order’ one of the prosecuting attorneys is working to decide about a settlement for a case while remembering ...

Article

View

5 Article-Article jplist-topic-tom-shay jplist-topic-profitsplus 0 360741 360741 In an episode of ‘Law and Order’ one of the prosecuting attorneys is working to decide about a settlement for a case while remembering a childhood experience. He had traded a baseball card of a great player to a friend for the cards of several lesser known players. The friend repeatedly stated this was a good deal. The attorney, as he turned down the settlement offer from the defense attorney, said, “It is a good deal only if it is a good deal for both parties”. Perhaps the same could be said for the relationship between the retailer and the customer. It is only a good deal if the customer and retailer are both happy with what they got; the retailer getting an amount of money that is acceptable while the customer receives products and/or services they are happy with. If this is true, then it could be the same for the working arrangement between the owner of the business and the wholesaler or manufacturer. Unless both parties are getting a good deal, it is not a good deal. In the past week I visited with a retailer who decided to change, after many years, vendors in a certain category of products. There was a growing number of situations where the fill rate and delivery were causing the retailer to repeatedly attempt to explain to customers why certain items were not received as anticipated. A second retailer I visited with ended a long term relationship with a vendor because the pricing had become too much of an issue. By changing his primary vendor, this retailer was able to increase the margin by 3.5% on over 75% of his sales. In both situations, the retailers stated how they liked their vendors and had enjoyed working with them. However, the changing situation would cause the retailers to make the change because, in their opinions, the change would be critical for the profitable continuance of their businesses. The problems the vendors were facing were not problems that the retailers could take on as it would then force the retailer to attempt to pass that problem to the customer. Passing the problem to the customer would require the retailer to attempt to persuade the customer to wait even longer for an item, and passing the problem to the customer would require the second retailer to attempt to persuade the customer to pay more for the item. A recent trip to a fast food restaurant gave a great example of the challenges of working with a vendor. An order was placed for a medium chocolate milk shake without the cherry or whipped cream. The price posted on the menu board was acceptable, and while a bit slow, the cashier was able to complete the transaction. With additional delay, a medium milk shake, with whipped cream and a cherry, was presented. When the error was pointed out, an apology was given and the drink replaced. It was mentioned to the customer that the person on the drink machine was new. The second drink arrived and with the cherry and whipped cream gone, the drink appeared to be white throughout. Again the initial order was repeated to the service person and a second apology ensued. A third drink appeared that looked exactly like the second drink. When the third error was pointed out, the response from one of the staff was that they had been experiencing problems with the machine. Finally, a supervisor joined the conversation, looked under the machine to see that the gallon of chocolate was empty, and promptly sent someone to retrieve a new bottle of chocolate. The next drink, made correctly, arrived and with another apology was handed to the customer. The essence of this example was the comments by the fast food staff gave a strong hint that the business was aware that they have challenges. Although not spoken, a comment of ‘your problems are not my problems’, could have been appropriate if somehow the customer thought their comment might cause things to go better. The same is true in our industry. The vendor is to be a partner in helping us deliver a product or service to a customer. Just as the customer has no need to care about our problems in light of the promises we make to them, the same will hold true between the retailer and the vendor. And while a large percentage of the public will incorrectly believe that a Home Depot, Lowe’s, Menards, Wal-Mart, Target or other similar business will always have the lowest price, we know this is not true. The same goes for a vendor; no vendor will always have the lowest price. The recipe for selecting a vendor will include ingredients such as competitive prices, high fill rates, prompt delivery, the right mix of products, acceptable terms and assistance, in the form of a sales representative and/or other individuals from the vendor. While you cannot make all of the problems and challenges you have faced with a vendor go away, you can do several things to reduce them. The first is to realize that as much as you dislike customers who shop only on the basis of lowest price, the same should be true for your business. No vendor is going to have the lowest price on everything. There are other factors to be considered for a profitable relationship. A second aspect is that you should be clear in defining your expectations. There is no better place to do so then when you place an order for merchandise or services. Using your purchase order form, be very specific in stating all of the terms of the order. Be clear in the quantities you are ordering; each, dozen, case, pallet. Extend the order on each line as to the total cost of each item. The same is true with extending the total of the order. You should clearly state on the order form when the merchandise is to be delivered to your business. At the same time, the order should also have a designation of, ‘cancel if not received by a certain date’. No retailer wants spring merchandise showing up in late June. When you are ordering merchandise that is a part of a complete display or selection, you can also state on the purchase order to ‘only ship complete’. This can eliminate having that order show up at your business in multiple shipments. Where appropriate when you are paying for the freight, indicate how the merchandise is to be delivered to your business. As many vendors have staff whose responsibility is making the decisions regarding logistics, it is acceptable for your order to indicate, ‘cheapest possible’. As an example, a 60 pound order being shipped with a carrier that has an initial rate of ‘up to 100 pounds’, likely indicates you are paying an excessive rate for the merchandise. A carrier whose rates are by the pound beginning at one pound would probably be a better choice. It is appropriate to charge back to the vendor the difference in the freight rate charged and the ‘cheapest possible’. An co-operative advertising dollars, samples, display fixtures, signage, and other support material should also be clearly stated on the order form. You should also put the name of the sales representative on the order in the event any follow up discussion is required with the vendor and you might need to state who took the order. Any purchase order written is an agreement between two parties. While it does not say so, there is a third party in the agreement with that third party being your customer. Indirectly, you are negotiating with the vendor on behalf of your customer. If you expect the customer to be loyal to your business, then it is your responsibility to do your best in representing the customer when you work with a vendor. Great vendors already know this. They understand that no sale is complete until the product or service has been delivered to the customer. And no relationship is complete unless the customer continues to do business with the retailer. As a member of a buying group several years ago, I remember how we made a point to partner with our vendors so that together we took care of the customer. There was another buying group in the community which also worked with many of the same vendors. Unfortunately the leader of that second group was known for their efforts to get everything they could from every vendor the group worked with. Sales representatives stated their relationship with the leader of that group was ‘always strained’. Our experience was these same sales representatives worked hard to partner with us so that everyone won. By no means is this information provided as a means for a retailer to abuse that necessary, and profitable, relationship with their vendors. At the same time, “It is a good deal only if it is a good deal for both parties”.Original Source »

A good deal for both sides

Article

In an episode of ‘Law and Order’ one of the prosecuting attorneys is working to decide about a settlement for a case while remembering a ...

View Content

A 9 Point Customer Service Plan A 9 Point Customer Service Plan

Creating a distinction between you and your competition

As a customer in someone else’s store, have you ever been made to feel you were an interruption to the workday rather than the reason for ...

Article

View

6 Article-Article jplist-topic-tom-shay jplist-topic-profitsplus 0 360740 360740 As a customer in someone else’s store, have you ever been made to feel you were an interruption to the workday rather than the reason for it? Most of us have. The comments that employees make in situations like these mark the difference between a store trying to survive and a store that is thriving. Imagine this scenario: A customer walks into a store and after spending several minutes looking at merchandise, begins to search for someone to wait on them. Of course, to the customer the amount of time looking for help will seem to be longer than the time spent looking at the merchandise. When they did find the employees of the store, the employees were in a small group having a discussion about things other than their work. Or, the employee was talking on the telephone with someone as they made plans for getting together after work. Most definitely, both examples of employees need a reminder of the reason for their work. They need a reminder as to who is actually writing their paycheck. Regardless of how well your business operates, your staff does need an occasional reminder of this. Remind them that if customers choose to shop elsewhere, your store probably won’t need as many employees. Give that same response to those who resist working nights or weekends. Stores simply have to be open when customers want to shop. Constantly remind your staff that your business is consumer driven, and that the customer is the most important person in your store. In visiting with retailers around the country, I have found that few provide written customer service directives for their employees. It was only during a meeting of employees in my store that we realized we had never created directions for waiting on a customer. For the most important job in our store, we felt we needed more time training our team members to perform this crucial task. We created a nine-point directive for customer service. We also initiated a program that paid bonuses based on total sales goals, departmental work goals and individual item sales. Here are our nine directives: Allow the customer to get into the store. Do not chase her down at the front door. Next, greet the customer with an open conversation. (“Hello. How are you?” or “Hi. Glad to see you.”) If the customer is in a hurry or knows exactly what she wants, usually she will ask. If not, invite her to look around. Check the store for the location of other customers, then continue with the usual work of stocking shelves or working in assigned departments. We told our employees they should never go more than four minutes without stopping to check the sales floor for customers. If an employee is not the first person to talk with the customer, use a different approach. This can easily be done by walking by the customer in an aisle and asking something like, “Finding what you need? Let me know if I can help you.” In approaching the customer, another employee could ask questions such as, “What do we need to solve our problem today?” or “What kind of blouse are you looking for today?” By using the words we and our, the employee shows his interest in the customer. In helping the customer, ask questions about the intended purchase. If the customer is trying to decide what kind of computer software to buy, for example, the employee could ask, “What do you need the software to do?” (Maybe there is a problem that we first need to solve.) “What type of restraints do we want to consider?” (Maybe the customer is restrained by money concerns, limited time to learn new software or limited computer skills.) Offer directions, shortcuts, personal experiences or words of caution. Be certain that you end this part of the conversation with words of encouragement. After solving the problem for the customer, it is time to make the sale. In our store, we stocked add-on items in each department. The task was to get the add-on sale into the customer’s hands for her to consider before she left the department. For example, the add on sale could be made by showing the customer new index tabs for the Bible she was about to purchase. Hand the customer a copy of your current sales circular or newspaper ad. We attached a copy to the end of the counter to make it easy for us. An employee could also mention one of the many monthly specials we ran. The final step in making the sale came after the customer said “thank you” to the team member for the attention our team member had given her. We made a special point of thanking our customer. Our employees were reminded that we had many competitors and the customer had chosen our store to shop in. Her shopping in our store helped to pay our salaries and allowed us to earn bonuses.Original Source »

A 9 Point Customer Service Plan

Article

As a customer in someone else’s store, have you ever been made to feel you were an interruption to the workday rather than the reason for it? Most ...

View Content

What happens when you learn from other businesses What happens when you learn from other businesses

When retailers from various trades visit they often find they have more in common than there are differences. The logic behind this comes ...

Article

View

7 Article-Article jplist-topic-tom-shay jplist-topic-profitsplus 0 360739 360739 When retailers from various trades visit they often find they have more in common than there are differences. The logic behind this comes from the fact that it is the customer that remains the same. The customer shops in one store the same way they shop in another. The retailer that wants their business to stand out from other businesses selling similar products would do well to look at retailers selling different products to observe how these other retailers appeal to customers.The pharmacy is located at the rear of a drug store for the same reason the screen repair and glass cutting are located at the back of the hardware store or the repair center is at the back of the power equipment store. All are placed that way so that the customer has to see more of the merchandise that is being offered by the store.Reading an article from the banking industry, the report stated that banks have a 90% chance that a customer will move an account to a different bank if that customer has only that account with the bank.The same customer, if they use at least five of the products/services of the first bank are 90% unlikely to move their business to a second bank. This can be taken as the business that does a better job of taking care of the needs of the customer is more likely to keep that customer and their business.The experience of the banking industry, a form of retailing, gives a lesson that could be applied to other retailers. Selling additional products, including consumables, can cause a customer to increase their dependence on the retailer.In previous columns we have discussed getting your money out of any inventory is sitting stagnant on your showroom floor or in your warehouse. Moving that money to your checking account makes sense only if you are in arrears with your payables. If this is not the case, that money should be put into action in the form of additional products that you could be offering.How would you select the items that you would add to your offering? Of course, there does have to be enough room on the showroom floor, but that is a discussion for another day.There are two ways we can answer the question about selecting these new additions for your product selection. We could first look at related items.Ask your sales team what have been the items that your customers have asked for that your store does not stock. When a customer asks for an item and your salesperson says your person states you do not offer the item, often leads to a follow up question. ‘Do you know where I could buy one?’That is the customer’s way of saying, ‘If you offered this item, I would buy it from you. Since you do not offer it, I would like your recommendation as to where to buy it.’Hearing particular items or a category of items would be the first place to consider for investing that money you have gotten from that slow moving inventory.When you look at this initial list of items, you may not see the relationship of these items to the products you are currently selling. However, they are the items that your customers see as relevant to your business.For the retailer that gives serious consideration to adding these items to their product offering, we would say this retailer is focusing on ‘who’ their customer is instead of ‘what’ their products are. This is the evolution of retailing.Look at retailers that have ceased to exist in the past decade. With many of them, they failed to adjust their product offering to the current desires of their customers. The additions you would be considering adding could be a part of your evolution.The second addition could be that of consumables. Adding these products mean your customers will have a need to return to your store more frequently. While selling these consumables are not high dollar items, they do cause the customer to return more frequently and like the example of the pharmacy, see the rest of your offerings.Selling vacuum cleaners is a natural for offering bags and belts; not only for the models you sell but for many other brands. Selling lamps and light fixtures would be a natural for offering light bulbs. Not the bulbs that are commonly found at hardware stores and home centers, but unique bulbs that make the light fixtures and lamps you sell have a more unique appearance.With many of the pieces of furniture you sell, there are many accessories that you could offer. Cleaners and polishes for furniture and appliances are one example. If you added sheets for the beds you sell, you would not be the first retailer to do so.When you next go to market, it could be the good time for you to break from the traditional routine of the lines you look at. This could be the time to consider some additional product lines that could give your customers additional reasons and needs for visiting your store more frequently.Original Source »

What happens when you learn from other businesses

Article

When retailers from various trades visit they often find they have more in common than there are differences. The logic behind this comes from the ...

View Content

No results found

Tom Shay

Sharks, cockroaches and independent brick and mortar retailers; they’ll be around forever!﻿

﻿Tom Shay - Recorded Session

Profits Plus Podcast

We have a replacement for “item and price advertising! Let us introduce another free calculator on the Profits Plus website

Visiting with Lisa Shimkat, Iowa SBDC state director about how SBDC can help your small business

Are the affluent your target customer? Chris Ramey visits Small Business Conversations to tell how to adjust your appeal

Articles by Tom Shay

Adapting to the Market

What do you sell?

A good deal for both sides

A 9 Point Customer Service Plan

What happens when you learn from other businesses

All Posts

We have a replacement for “item and price advertising! Let us introduce another free calculator on the Profits Plus website

Visiting with Lisa Shimkat, Iowa SBDC state director about how SBDC can help your small business

Are the affluent your target customer? Chris Ramey visits Small Business Conversations to tell how to adjust your appeal

Adapting to the Market

What do you sell?

A good deal for both sides

A 9 Point Customer Service Plan

What happens when you learn from other businesses

Sharks, cockroaches and independent brick and mortar retailers; they’ll be around forever!

Tom Shay - Recorded Session