How to Maximize Retail Revenue Too Prepared by Michael P Cotler Business Growth Consultant
Maximizing Retail Revenue • To maximize revenue from any retail outlet requires a certain kind of “Eye” for detail. • Firstly one needs to look at the heart of the business • Why does the business exist? • What service/product are we providing or selling
Maximizing Retail Revenue • Selling a product is not difficult • Finding someone who wants to BUY the product at the right price generally can be the issue!! • Customers look for products that generally fulfill their NEEDS & satisfy their WANTS
Who runs your business? • Any body who answered the question above as “ME” should carry on reading this slide • Anybody who replied- “My Customers” is probably not reading this anyway. • EVERY successful business that I have EVER been associated with have 1 common trait (amongst others) • They are CUSTOMER CENTRIC (i.e. the business revolves around the need & expectations of their customers)
Example of customer expectations • Example 1 • Product for sale- Glass Vase • Sale price $15 • Packaged in Brown cardboard box • Picture of the vase on the box with size specifications • Placed on shelf with multiple other vases
Customer Expectations cont.. • Customer perception of the glass vase: • Cheaply priced • Readily available • Low Quality • Limited life expectancy but that doesn’t matter as it’s a functional vase • No real customer attachment to the product • Minimal staff around for assistance
Meeting Customers Expectations • Example 2 (Vase) • Glass Lalique “Pallazo” Vase • Cost $1995 • Limited number produced • Displayed in Glass cabinet with information leaflet of origination • Security Features include locks to prevent theft • Well groomed & knowledgeable assistant on hand whenever required.
Outcome • Result • The chances are that the 2 vases are similar in many ways- • Perception to the customer is vastly different by the way the product is presented and the revenue that each vase can produce • The way that the vase is priced creates value in the customers mind as well as good margin.
Outcome • Customer 1- NEEDS a Cheap Vase for flower display around kids • Customer 2 WANTS High Quality Branded vase to add to existing collection – price no object • Customer 1 would not buy the high quality vase from the shop who sells Lalique. • Customer 2 would not buy the cheap vase from the local cheap store.
Outcome • Know your customer • Know what your customer want to buy from you • Know what your customer expects from your store • What does your store say about the products that you sell? • Do you sell high quality vases in a “pile them high sell them cheap” environment?
Summary • These slides were designed to make you think about the way that you look at your store and what you sell. • Too many retailers give mixed messages to their customers • Customers have “wants” & “needs” • Your store has to satisfy all of these in order to facilitate a transaction
About the Author • Michael Cotler is a Retail Sales Growth consultant with over 23 years in Retail Operations and Store Ownership. • For further details on Michael’s extensive business acumen for high level retail growth visit • www. michaelcotler.com