Phil's Forum for Independent Retailer Success

Is JC Penney Making a Mistake?

2012-01-31T16:55:00.002-05:00

JC Penney announced a brand new pricing strategy. They are getting away from the over-inflated regular prices with everything on some kind of a sale all the time including scattershot coupons and deals.

They have already implemented it in my local JCP.

And my wife is not happy.

She went shopping there recently and was more confused by their pricing than ever. More importantly, she walked out without making a purchase. She asked me about it at lunch today, and I told that while I am a huge fan of not using sales and gimmicks (the old JCP model), I think they have a hard road ahead for three reasons.

THEY TRAINED THEIR CUSTOMERS

The first problem is that JCP trained their customers to expect a sale, to expect a discount, to wait for the coupon. For the next few months there will be some pain as customers try to adjust to this new program.

My wife was looking at a sweater. The new price tag said $25.00. It used to be priced at $50 in the old scheme. Then with a 40% off in-store sale and a 15% off coupon, it sold for $25.50. But without those "sales", my wife ended up putting it back. It did not feel like a bargain any more.

You cannot get rid of that sale mentality overnight. We all know stories of customers who buy things on "sale" at other stores even when the "sale" price is higher than our price.

PRICING HAS PERCEPTION

I have been saying this all along. The numbers you use in your price give off a perception to the customer. JCP has changed all their prices to end in .00 instead of .99 as most retailers use.

The only problem is that .00 looks like "full price" while .99 looks like a discounted price. My wife, a full blood Transactional Shopper, mentioned this first. The price just looked too high. She even went so far as to say that she would have given it a second look at $25.99 instead of $25.00. So JCP, by their new pricing strategy is making everything look perceptually more expensive.

(For a full explanation of the way prices are perceived, download my free eBook Pricing for Profit.)

CAN THEY RELATE TO THEIR CUSTOMER?

Let's face reality. JCP, Kohl's, Macy's, Elder Beerman, and all the other department stores like them are relatively interchangeable. They all carry similar goods at similar prices. And they all go after that Transactional Customer, the one who shops solely on price.

But with this shift, JCP is hoping to get away from that price-shopping mentality. Does this mean they are now going to go after the Relational Customer, the customer looking for an expert she can trust? I don't believe they have the staff and the training to accomplish that. They certainly are not going to compete with Nordstrom's any time soon.

So while they alienate their Transactional Customers in the short term, they are going to have to find new ways to attract those customers (who have been their base for so many years) back to the store with some really sharp pricing on those every-day-low-prices. JCP is right that not everyone is duped by the mark-it-up-to-mark-it-down policy so many department stores use. But not everyone is good at math, either.

We'll see if JCP has the guts to stick it out. Personally, I'm hoping they do. (But please change those prices back to .99)

-Phil Wrzesinski
www.PhilsForum.com

PS If you have not yet seen my Pricing for Profit presentation, I am doing a revised version at the ASTRA Marketplace in Baltimore this coming June. According to those who have seen it, it might be the single most profitable hour you might ever spend.

Gotta Keep Learning and Growing

2012-01-30T11:45:00.003-05:00

I have not been blogging as much as usual. Sorry about that. You would think that with the hectic Christmas season behind me I would have more time.

Wrong.

I have been busier than ever.

One of those projects that has kept me busy is that I was asked by the American Specialty Toy Retailing Association (ASTRA) to write a book about the financials of a toy store. A comprehensive guide to help independent toy stores understand their financial statements, how those numbers get calculated, what are the industry averages, and how to figure out why your numbers might be higher or lower than your fellow store owners.

Yeah, they asked me to write a book on financials. The same guy who says right on the home page of my website that I am not a financial guru.

So for the past few weeks I have been doing my homework to become that financial guru. Okay, maybe not guru, but learning enough so that I can help you understand your numbers, too. And the journey has been worth it.

For the first time, when my accountant came in to help us make those year-end adjustments so all our accounting lines up, I finally understood everything he said. A couple of times I even knew before he said it what he was going to say.

Don't get me wrong. I am not going to pass any accounting exams in the near future. But the thrill of knowing I had learned something useful has given me a new excitement towards the business and a refreshed energy.

Maybe you could learn something new to give you that same feeling of newfound enthusiasm. If so, I have a list of topics worth exploring right here.

-Phil Wrzesinski
www.PhilsForum.com

PS Last year I posted a free eBook on Reading Your Financial Statements. It is pretty good. Not as good as the book ASTRA will be publishing this spring, but a decent start. I will be correcting a couple errors in it soon, but even this version might be a big help for those of you struggling to speak accountantese.

Lessons from MLK Quotes

2012-01-16T16:07:00.002-05:00

If you have seen my live presentations, you know I love great quotes. I love quotes that make you think, quotes that teach you a lesson, quotes that give you perspective.

Here are some of my favorite quotes from Martin Luther King, Jr. that relate to our type of business.

"Never succumb to the temptation of bitterness."

We all have customers who try to take advantage of us. It is easy to want to feel bitter about them or react by creating programs or policies to deter them. Unfortunately, those changes always come across as bitter or anti-customer. Do not succumb to those feelings. Accept that some people will act that way. Treat them well anyway. You never know what they are thinking and how you just might make a difference in their lives through your kindness.

"Faith is taking the first step even when you don't see the whole staircase."

The pretty much epitomizes the mindset you need to be a successful retailer. Have faith in your abilities. Have faith in your business model. Have faith to take risks even when you do not see the outcome clearly because you will never see the outcome completely clearly. The only outcome that is clear as a bell is that nothing good will happen if you do nothing at all.

"Love is the only force capable of transforming an enemy into a friend."

Embrace your tough customers. Embrace your unhappy customers. Say, "I'm sorry," when someone is unhappy with your business. If they are unhappy, there is something you did wrong. Apologize, accept that you were wrong somewhere, and then make it right. Love those tough customers and instead of writing bad things about you on Yelp, they will become your most loyal supporters.

"Everyone can be great because everyone can serve."

Put yourself in the service of others - both your customers and especially your employees - and they will lead you to greatness. The best training you can offer your staff is to role model the behavior you expect of them. Your staff will never care more than you so you need to care more than they have seen. They will never work harder than you, so you have to work hard (smart) enough that your staff's lesser efforts are more than your customers expect.

"All progress is precarious, and the solution of one problem brings us face to face with another problem."

The one mistake we often make is believing that once the next problem is solved, it will all be smooth sailing. If you wish to succeed, you need to be prepared to meet each problem head on. One way you do that is by furthering your education, furthering your own personal growth as a leader, as a retailer. You will never not have problems, but you can overcome them more easily the more you prepare yourself.

Happy Martin Luther King, Jr. Day!

-Phil Wrzesinski
www.PhilsForum.com

PS If you are looking for a way to grow your retail business and are in the Jackson area, next Monday starts the fifth year of the Jackson Retail Success Academy. Contact me to find out how you can get signed up.

PPS If you are not in the Jackson area, but are interested in the contents of the Jackson Retail Success Academy, I offer a two-day workshop that includes all of the best content from that class in two jam-packed days. Contact me for pricing and booking information.

This Will Be a Succesful Year If...

2012-01-09T12:28:00.003-05:00

I don't like making New Year's resolutions.

I resolve to lose weight, pay off debt, exercise more, eat healthy, save money, go to sleep earlier...

The moment you stop, you fail. I prefer success.

So instead of resolutions destined to fail, I like to take a moment to define what success will look like.

Finish the following statement:

This will be a successful year if...

...if I get to be in business next year
...if I book 6 new speaking engagements
...if I publish a new book
...if I average 100 readers per blog post

The difference between doing it this way and resolutions is that you are focusing on the goal, the end result, instead of just the method. If the method you are using does not help you reach your goal or is unsustainable then you can try new methods.

You get to keep working on that goal from any angle you choose.

Like everyone else, I encourage you to write it down. Go get a blank piece of paper and write across the top "This will be a successful year if..." and start filling in the rest.

You can make categories - Personal, Professional, Individual, Family, Financial, Social - if you want. Just be sure to jot something down for each.

Once you have done that, start strategizing the How. Start brainstorming the What. Start piecing together the Who and the Where.

The When is right now. Define your success and you have a better chance of reaching it.

-Phil Wrzesinski
www.PhilsForum.com

PS For those of you who have already downloaded my free eBook Staff Meetings Everyone Wants to Attend, you recognize that this is the same statement I use when planning those meetings. In fact, it is written right across the top of my Staff Meeting Planner Worksheet. And my clients know I ask the same question of them. How will we define success? How will you?

Do You Want Fries With That?

2011-12-30T17:10:00.005-05:00

McDonald's gave us the best punchline for the upsell.

"Do you want fries with that?"

But that one little phrase made them a lot of money because it increased the average ticket, the average dollars per transaction.

It makes intuitive sense that if every customer spends just a little bit more your store will be more profitable. That is why you want to track your Average Ticket.

In the last post we counted the number of transactions you had for the year. Simply divide your gross sales by this number and you have the Average Ticket. Now compare that number to last year's number. Did it go up or go down?

Simple knowledge of the world tells you that it should go up just to keep pace with inflation. Your prices went up a little so even if you sold the same amount of items to the same amount of people, that number should go up.

But what if it went down?

There are three big reasons why your average ticket might go down.

You do not have the right merchandise.

Your staff is not selling the merchandise you have.

Your customers are in a hurry to leave.

Let's explore those.

THE RIGHT MERCHANDISE

If you do not have the merchandise customers want to buy, then they are not going to buy from you. That is simple enough. But one easily fixed mistake some retailers make is not having the necessary accessories to complete each sale.

This is something I preach to my staff constantly. Make sure that a customer making a purchase has everything she needs to use that product the moment she gets home. Is it an electronic toy that needs batteries? How about a model that needs paints... and glue... and paintbrushes... and thinner... and a display case?

If you do not sell all those accessories then you are leaving money on the table by not having the right merchandise.

YOUR STAFF IS NOT SELLING

At least the McDonald's clerks are offering more products with their fries statement. Are your sales staff doing the same? There are plenty of less offensive ways to do that. The first is to do what we just discussed - complete the sale. Make sure the customer does not have to make a separate trip to get everything she needs because if she does, it won't be to your store (and neither will the next trip she makes to shop).

You also want to keep asking the customer if there is more you can do. Keep asking until the customer says no. Here are some simple questions any sales person should be comfortable using:

Who else is on your list today? (thanks, Bob)

Is there anything else I can show you?

What else can I do for you today?

If you are not asking, you are not selling. Anyone can point a customer to the product for which they asked. The better sales people lead them to the product, asking questions as they walk. The best sales people then offer two or three best options to fit the needs of the customer. And then those sales people show them matching, coordinating and accessory products. And then they ask for more.

It costs way too much to acquire a customer to let them walk out without being given every opportunity to buy. They will let you know when they are done shopping. Always let the customer end the shopping, never you.

YOUR CUSTOMERS JUST WANT TO LEAVE

It is a simple axiom of retail. The more time a customer spends in the store, the more money she will spend, too. So you need to encourage your customers to stay longer. You do that by making them feel more comfortable. Offer to take her coat. Offer her a beverage. Engage her in conversation. Get her to talk about herself. if she has kids with her, make sure their needs are met.

The right music, the right lighting, the right temperature are also important. If it is too cold your customers will not stay. Sure, you might save a penny or two in heating costs, but you'll lose all those pennies in customers who did not stay. Likewise, too hot makes customers just as anxious to leave. They may not even know why they want to leave. But they will leave. If you made a change in your thermostat to save some money and your Average Ticket went down, you might want to change it back.

Odors are also powerful drivers. Heavily perfumed areas can be as much a turnoff as bad odors. Don't mask the bad smells with perfumes, find the source and eliminate those odors. If you must use a scent, food scents are better than florals. They tend to be more comforting.

The layout of your store also affects the length of stay. Walk in your front door and see what captures your attention. Where does your eye go? Is there anything to attract a customer deeper into the store? The deeper they go the longer they stay.

Also look at your traffic patterns. Are the aisles wide enough to handle the flow? Do the aisles make sense? Is it obvious where to go? Confused people will not shop long. Do not confuse your customers.

Number of Transactions is something over which you only have partial control. Average Ticket is completely up to you. Whether it is going up, down or staying flat is a quick indicator of how well you are performing in the store. Raise the performance and you'll be punching a higher ticket.

-Phil Wrzesinski
http://www.philsforum.com/

PS For more on merchandising, download my free eBook Merchandising Made Easy. To raise the bar of Customer Service so high your customers are singing your praises to everyone they know, download my free eBook Customer Service: From Weak to WOW! The books are free, but the information in them is priceless. (Why would I give away such information for free? I want you to succeed. When one independent retailer improves, we all improve.)

How Many Customers Does it Take to Change a Retailer?

2011-12-29T11:23:00.002-05:00

Two numbers every retailer should track are Number of Transactions and Average $ per Transaction. (Yes, if you know the first number then you can calculate the second).

Number of transactions is simply how many times you rang up someone on your register. Did that number go up or down? If it went up, life is probably pretty good. You can skip the rest of this post and wait for the next one talking about the Average Ticket.

If it went down, read on...

There are two reasons for your number of transactions to go down:

You didn't get enough traffic through the doors

You didn't convert that traffic into purchases

YOU DIDN'T GET ENOUGH TRAFFIC

There are a number of reasons why you might not have as many people coming through the door. Here are the most obvious ones...

The market shrank. The population in your area decreased or at least the population that shops your category decreased. We have seen a decline in births in county for four straight years. Since we sell baby products it is not surprising that the number of transactions has declined. Fewer babies being born means fewer people buying cribs.

You can get population information from your local government. They track things like foreclosures, house sales, rental property availability, unemployment claims and taxes to determine what is happening with the local population.

In a similar vein, did your market dramatically change? Was there road construction outside your door? Was there a major shopping center constructed somewhere else (even if they didn't have a competing store)? Was there a fundamental shift in traffic patterns? all of these could have an effect on the amount of traffic coming through your doors.

The competition increased. Did a new competitor come to town? Did a current competitor step up their game? Although I often tell retailers to focus more on what you can do than on what your competitors are doing, you still have to watch them. In 2010 Toys R Us opened a pop-up temporary store in our market. It only took a small piece of the pie, but in our shrinking market every crumb counts.

Your advertising did not work. Did you cut back on your marketing efforts? Did you change your message? Did you forget to change your message? If you cut back or made major changes to your message you may have caused the drop in traffic. (Not sure what your message should be? Download this free eBook "Understanding Your Brand")

YOU DIDN'T CONVERT TRAFFIC INTO TRANSACTIONS

Two main reasons why this happens:

You didn't have the right products. When there is a hot product in your market and you don't have it, you'll get plenty of lookers, but no buyers. Nothing cures more retail ills than having the product everyone wants. Did you have a bunch of calls or requests for a particular item? I know one store that has a daily worksheet that all the staff fill out including what requests were made to which they had to say NO. From that worksheet she often finds new products and categories to carry. Her rationale? Customers come in thinking she should have it. Why disagree with the customer?

Your sales staff wasn't up to par. How much did you commit to training? How much did you work with the staff on what great customer service looks like? How much did you leave to a manager to do? Does the manager care at the same level as you care? Not only does a poorly trained sales staff cost you in conversions, it costs you in average ticket (which we'll explore in the next post), and it costs you in repeat business (traffic coming through the door).

More than likely, if your transactions are down it is a combination of many of these factors. The two you can control the most are your Advertising and your Sales Staff Training. Get working on those right away. In fact, even if you had a good year, you can still raise the bar in both of those categories.

And that will make it a Happy New Year for your business.

-Phil Wrzesinski
www.PhilsForum.com

PS One other thing that could happen... Your POS could change the way it tracks transactions. Our new release of our POS software did just that. Took us two months to figure out why our number of transactions spiked all of the sudden. Got that figured out so now we're comparing apples to apples again.

You ARE Making a Difference

2011-12-20T14:01:00.002-05:00

Sometimes it is good to take your eye off the big picture for a moment and focus on those little things you do that are so wonderful.

This is a good time of year to do that.

The customer in front of you is one of those moments. She is stressed. The holidays can do that to a person. She has a million things on her mind. Give her your full attention. Let her know you understand, you care and you can help.

Solve her problem.

And be thankful for that moment to make her life just a little easier and a little less stressful.

Her family will be thankful, too. They may not know to thank YOU for that. But they will be thankful nonetheless. And you will know it. And that is all that counts. Enjoy all those little moments. There will be time to look at the big picture soon enough.

Merry Christmas my friends! Thanks for all you do.

-Phil Wrzesinski
www.PhilsForum.com

PS Here is a video of a song I wrote when my first son was born called The Greatest Gift

Be the "Hot" in Your Category

2011-12-15T12:20:00.003-05:00

Seth Godin pointed out something the toy industry has known for a few years...

There is no singular HOT toy to drive in the traffic.

Hasn't really been one since the first Tickle Me Elmo back in 1997. Oh, sure, there have been some hard-to-find items, a few crazes here and there, but nothing like the way people went bonkers over that furry red guy that vibrated and laughed. They stood in long lines, got into fist-fights, paid hundreds, even thousands, of dollars to get one.

Those days are over. And that is good news for you.

The traffic still craves direction and guidance. The traffic still wants to know where to go and what to buy. The traffic is still looking for something Hot.

So instead of the Hot item, be the Hot store.

You do this by being innovative.

Are you in a downtown location with limited parking? Offer free valet service. Are you in a winter weather environment? Offer coat check and coffee or hot cocoa. Are you in a category that requires special knowledge? Offer classes and tutorials. Do you get a lot of out-of-town traffic? Offer local maps to interesting sites, fabulous restaurants and other great shops in your area.

Rotate your merchandise regularly. Make fun and surprising displays that get people to talk about you and want to see what you are doing.

You do this by being iconic.

You know that every woman in the room pays extra attention to the package wrapped in the turquoise blue. Tiffany owns that color. What can you own?

You do this by being fun.

Smiling and saying hello makes people happy. Genuinely having fun gets those happy people to talk about you. You could play guessing games. You could have quick polls and sign-in books. You could run contests. You could have giveaways. Just make sure you hire fun people.

Regardless of what the media tries to promote, there is no hot toy anymore. Only hot stores. Be one of them.

-Phil Wrzesinski
www.PhilsForum.com

PS It is no longer about Customer Service. It is all about Customer Experience. The better the experience, the more people will want to have that experience.

Be Good for Goodness Sake

2011-12-14T12:37:00.003-05:00

(Yes, Christmas music has taken over my brain...)

Just a quick reminder that during this busy season it is easy to dismiss problem customers. It is easy to not give your full attention to a needy customer. It is easy to blow off that demanding customer.

You are already plenty busy enough. What difference does it make if you do not give everyone a great experience? Your numbers are good.

This year.

But you are also planting the seed for next year.

Retailers are farmers. We plant seeds, water and fertilize all year long so we can reap the harvest at Christmas. But unlike the real farmers who plant in the spring and harvest in the fall, we plant during the harvest.

We plant the seeds for next year in how we treat the customers this year. Treat them well and they will become perennials. Treat them poorly and your harvest next year will suffer (and you won't know why).

This is your busiest time of year, the time when you see the most people. Do whatever you have to do to make sure every single one of them gets the best possible treatment. Next year's harvest is counting on it.

-Phil Wrzesinski
www.PhilsForum.com

PS If you want some good ideas on how to fertilize that crop, download the FREE eBook Customer Service: From Weak to WOW! The one card you can consistently play and always trump your competition is the Customer Experience card.

Someone Is Lying to Me

2011-12-11T15:17:00.004-05:00

My favorite gas station just changed all their pumps to Pre-Pay.

The clerk told me it was a corporate decision. She had no choice in the matter. She also told me that she had been getting flak all day long for it. She did not like it. Neither did the customers.

But somebody at the home office thinks that pissing off customers and upsetting the employees is a necessary way to do business.

The part I really do not understand is that every time the general public complains about price-fixing in gasoline, we are told by these gas stations that they do not make any money on the gas, only the soda and snacks they sell inside the store.

Yet, they just gave me an excuse to not have to set foot in the store again. I just swipe my card at the pump, get my gas, and go. Probably will be good for my diet. Probably will not be good for their bottom line.

So either they are having a rash of drive-aways or they really are making money on the gas. I think we would have heard about the former. Somebody is lying to me.

But it begs the question we all should ask about our business. Where do we make the money? And are we setting up barriers to our customers that keep them from giving us that money?

I think that second question is the driving force behind this corporate decision.

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, you should put your best, most profitable merchandise in the best location in the store. Start there and build everything else around that focal point. That is the number one rule to merchandising. For more rules and thoughts on merchandising, download my FREE eBook Merchandising Made Easy.

Two Ways to Look at the Amazon Deal

2011-12-06T17:06:00.002-05:00

Amazon announced it is offering up to a $5 incentive for someone to walk out of a brick & mortar retailer this Saturday and shop online.

Facebook and blogs are lighting up on this topic.

Retailers are obviously outraged by Amazon's blatant attempt to use their stores as free showrooms.

Before you get your panties in a bind, however, here are two different ways to look at this...

IT DOESN'T REALLY MATTER

Statistics show that about 35% of the US population uses a smart phone. And only a quarter of those people use it for primary browsing purposes.

So now we are down to only 8.75% of the population are likely to use their mobile phone for this purpose. Now figure out how many of those have that Amazon price check app. Let's be generous and say that 80% of those people have the app. Now we are down to 7% of the population.

It has been shown before that only about half the population are price shoppers, which gets us down to 3.5%. Then figure out your share of the market. 5%? 10%?

Assuming you are rocking it in your market and have 10% market share, then you can expect about 0.35% of your customers to be using such an app.

But wait, you say. Many of your customers are early adopters. They make up a higher percentage of the smart phone owners. Yes, but at the same time, a larger percentage of your customers are not price shoppers. So it is a wash.

Bottom line? Do the math and you will see that about 1 out of every 225 customers in your store this Saturday will take advantage of this offer.

KILL 'EM WITH KINDNESS

And when that customer does pull out her phone and zap an item, you get a unique opportunity. You get the chance to show her how wonderful and helpful your store is.

As long as you approach it the right way.

She is zapping for information. Not just price but also product specs and reviews. You can win her over by also being a knowledgeable font of information.

Help her understand if the item is right for her needs by asking important questions like, "What are you hoping this item will do for you? What problem are you trying to solve?"

Embrace the information she finds online. Ask her to share what she reads. Quite often you will find that the information is either faulty or useless. Then you have the opportunity to engage with her and steer her straight.

It is all about winning the customer's trust. You do that by being friendly, honest and open. You do that by acknowledging the downside to a product. You do that by showing the upside, too, the benefits of shopping with you and keeping your purchases local. You do that by understanding the customer is a person with needs and fears just like you. Find out what is her fear and you know how to build her trust.

Heck, you don't need to wait for them to use a smart phone app before you do all that.

Just saying...

-Phil Wrzesinski
www.PhilsForum.com

PS If you feel the need, you can always play the Amazon-doesn't-care-about-the-local-community card. Just ask your customers how much Amazon contributed to the fire and police departments in your town. But the best approach is to not worry at all. Just do what you do so well that your customers want to support you.

Statistics Falsified for Your Benefit

2011-12-03T17:17:00.004-05:00

I love December!

The statistical anomalies are so much fun.

Most businesses look at their sales in comparison to last year. And most businesses compare Thursdays to Thursdays, Fridays to Fridays, etc. This comparison works great right up until December 1st.

As you know, you only get 24 days in December prior to Christmas. Those 24 days are extremely important. So you might be tempted to compare December 1st to December 1st for this month to see how you are doing instead of Thursday to Thursday.

Just to show you how misleading those numbers might be...

If I compare day to day for Thursday 12/1 and Friday 12/2 to the correlating Thursday & Friday from last year (12/2/10 and 12/3/10), my sales are down 21%.

But if I compare those same days this year to 12/1 and 12/2 from last year, we are up 11%.

Being an optimist, I'm going with up. Two days down, twenty-two to go.

Keep smiling and keep making memories. Those are the numbers that really count.

-Phil Wrzesinski
www.PhilsForum.com

PS No, there really isn't a lesson in this post, unless you want to take away from it that the most important thing is to keep a positive spin on everything this time of year. There will be time to evaluate how you really did when the season is over.

Should You Still be Ordering?

2011-12-02T17:45:00.003-05:00

My dad always said...

"There are 24 days in December before Christmas EVERY year. Make the most of those days because they are the days that count the most."

With that said, you only have a couple days left to check your inventory to make sure you have what you need to make the most of those days.

To borrow another cliche, strike while the iron is hot.

As much as you might be needed on the sales floor this weekend, take some time to check your inventory for fast movers and hot products. Make a list of the top ten items you are seeing fly off the shelf. Prioritize that list and start emailing/calling your reps right away. Get those hot movers on order and back on your shelves as soon as possible.

Don't worry about making great terms, worry about getting the products that will make your customers smile. That is your goal this time of year.

Should you still be ordering? Yes! Get the hot stuff in now. Don't worry about the rest.

-Phil Wrzesinski
www.PhilsForum.com

PS The goal all year long should be to make your customers smile, but this time of year, with the increase in customers, it becomes twice as critical. Make your customers smile now and you will smile in January.

Black Friday - Good News or Spin?

2011-11-30T16:39:00.003-05:00

The reports in the media for Black Friday have a lot of good things to say.

Sales up 7%
Traffic up 5%
More buyers, more sales, economy must be good.

But as we all know, statistics can be misleading. For instance, Black Friday used to be from 4am to 12pm - eight hours long. Now it starts at midnight or even earlier.

The Mall of America opened at midnight instead of 5am and had a 5% increase in traffic. A 71% increase in hours (from 7 hours to 12 hours) for a 5% increase in traffic. Toys R Us, Wal-Mart and Target are all touting record days, a few percentage points higher than last year. And all three of them were open anywhere from 50% to 114% more hours.

That means at least 50% more payroll, more security, more electricity than usual, all for a 7% increase in low-margin sales. Really?

Yes, really.

What you and I, as independent retailers, fail to realize is that Black Friday for the major retailers is not about traffic, sales or profits. It is all about winning the media.

Think about it.

Is it ever a good strategy to piss off your employees by making them give up a major holiday? Is it ever a good strategy to force your customers to wait in long lines for hours fighting crowds and surly employees only to get shut out because that store only got 12 items and you were number thirteen? Is it ever a good strategy to run an event that makes people pepper spray other people in your store, have fist fights in your aisles, and attract muggers to your parking lot?

No...

...Unless your goal is to get as much FREE publicity as possible.

Go back and look at the newspapers for one week prior to Thanksgiving and see how much press was given to the deals and the hours. Then grab the papers from last weekend and see how much press was given to the events of Black Friday. Who was pictured? Who was talked about? Who got the story?

Those are the winners. And that's what Black Friday has become. A media grab. Every big retail chain wants to be New Hampshire and Iowa. What they pay in extra payroll, extra security, lost profit margin is more than made up by what they get - national media coverage.

So brace yourself. As far as the big box stores are concerned, Black "Thursday" was a rousing success. The media said so.

At least that is my spin on it:-)

-Phil Wrzesinski
www.PhilsForum.com

PS What does that mean for independents? Time to start planning for Small Business Saturday. Most of the independent retailers to whom I spoke over the weekend had better Saturdays than Fridays. We were one of those. Only the second time that has happened in the last 42 years. But I believe it will become the new norm for us. And frankly, I am okay with that. Gives me room for one more piece of pie Thursday.

Tell 'em What You Stand For

2011-11-23T00:03:00.003-05:00

(title written with apologies to all my English teachers)

If you read my free eBook Understanding Your Brand, you know that I am a firm believer of being true to your Core Values and showing them off whenever and wherever you can.

The stronger you take a stand for something you believe in, the more you may be criticized. But more importantly, the more you will attract a loyal following.

Just recently I took a stand on Facebook, posting what I felt about the big-box retail stores that are opening Thanksgiving Day and what those stores must think of their staff (not much). Not surprisingly, I got a lot of love from my fans - the people who share my values. You can read what they had to say here.

What was interesting is that our local newspaper picked up on it and wrote an online story about what I wrote on Facebook. You should read the comments there.

If you want some love, take a stand for something. Those who agree will love you even more. And they will defend you against the ones who disagree. Don't worry about the ones who disagree. They weren't going to be your loyal followers anyway.

If you want to know who are your real fans, take a stand. They are the ones who have your back.

-Phil Wrzesinski
www.PhilsForum.com

PS Happy Thanksgiving!

How Much You Care

2011-11-11T12:13:00.002-05:00

Just to finish up the subject of motivating your employees...

We have all heard the phrase... The customer doesn't care how much you know until she knows how much you care.

Same can be said of your staff.

You should care how they are doing. You should ask what you can do to make their job better. You should know what is going on in their lives.

I was talking to someone whose boss did not acknowledge her when her father-in-law died. Do you think she's going to the mat for him? Would you?

Care for them and they will take care of your business.

-Phil Wrzesinski
www.PhilsForum.com

PS At the very least you better celebrate their birthdays. Think about it like this. They are going to celebrate it with or without you. Better the former than the latter.

Almost As Hard As You

2011-11-10T10:21:00.003-05:00

So your employees won't work as hard as you. But you can get them to collectively come pretty close.

We have all seen the sign that says "The floggings will continue until morale improves." Apparently Amazon still works under that philosophy (Read this article about the shocking conditions at an Amazon warehouse).

And Amazon also has extremely high staff turnover. As do most companies that treat their employees like cogs in a machine instead of like people.

Yet employee turnover is one of the most costly mistakes you can make. It takes time and money to train an employee. It takes experience for them to become great. You cannot afford to be training someone new every few months.

So the first step is to make great decisions on who you hire. I've clearly outlined how to do that in my book, Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art.

The second step involves motivation.

Daniel H. Pink, in his book Drive, talks about how people are motivated. The old carrot and stick method - do this and you'll get a reward - doesn't work any more. People want more than that.

The two most important things that motivate workers is to know that the work they are doing is valued and that it is making a difference.

You can show that to your staff easily by doing these simple things.

Constantly praise them for what they do right. We love to hear what we did right more than hearing what we did wrong. Sure, you need to correct the mistakes, but heap the praise for what they do right and they will do more of that.

Invest in their training. You show them they are valued when you constantly help them to grow and improve.

Teach them why. With every step of the training, with every task you ask them to do, if they can see the bigger picture of how this project fits into everything else, they will be more motivated to do the project well.

Have goals bigger than yourself. Align your store values with something that helps your community, whether a charitable cause or a general improvement of the quality of life and your staff will be motivated to work harder.

We want to know our contributions make a difference. Help your staff see the difference your company makes, and they will make a difference for your company.

I have 15 year-round employees. They have an average of over 10 years employment with me. They know the difference we make in the community. They know the importance of even the simplest tasks. They know when they have done a good job. And they know the next Staff Meeting will be fun, informative, and worth their while.

-Phil Wrzesinski
www.PhilsForum.com

PS One more thing... If you make your employees get up at 3am Black Friday or the day after Christmas to work for you, you get what you deserve. They are people. They have families and lives. Let them enjoy as much of the holidays as they can.

As Hard As You

2011-11-09T15:56:00.003-05:00

"If only I can get my staff to work as hard as me, it will be a great season."

Have you said this? Heard it? Thought it?

You are not alone. Every small business owner has the dream of hiring hard working employees that do the work so you don't have to. They do the heavy lifting, you count the money.

Here is the reality check. Your staff will never work as hard as you do. Why?

They aren't the owner. They don't have a stake in the business other than a job. And they can get another one of those.

Oh, some might work that hard. You might get one or two workaholics so dedicated to your success that they work their tails off for you. But they will be the exception to the rule. Collectively your staff will probably work at about 60-70% of the level of dedication and efficiency you put forth. That is just human nature. Plus, if they were any better they would be running their own store.

The first most important point to take away is this. The more you slack off, the more your staff will do the same. If you are only giving 90%, their efforts will go down, too.

Yeah, sucks to be you.

But then again, it really doesn't. You get to control the level of effort your staff puts out. It starts with the model you put forth. Raise your own bar. Show how you are striving to get better and improve. Model the kind of behavior and effort you want through your own actions and your staff will fall in line.

Monkey see, monkey do.

-Phil Wrzesinski
www.PhilsForum.com

PS There are some other ways to get your staff to perform almost as hard as you. Most importantly, treat them as human beings. I'll tell you more in the next post.

The Purpose of Your Advertising

2011-11-03T11:50:00.003-04:00

One of the best lessons Roy H. Williams, aka The Wizard of Ads, taught me was to look at where I get my traffic. Ask yourself these two questions:

How much of my business is repeat business?

How much of my business is referral business?

The remaining is the business you got from your location and your advertisements (which by now you know are one and the same - location is one of the greatest forms of advertising.)

The typical independent retailer gets most of his or her business from Repeats and Referrals. The best way to get more of that is through your customer service. WOW your customers and they will come back and bring their friends with them.

Yet much of the advertising we do is geared towards preaching to the choir, trying to get our regulars to come back. It is much cheaper to service them extremely well than to spend a lot of money advertising to them. If you feel you need to reach out to them, use Facebook and email. They are better (cheaper) for speaking to your regulars because they are one-to-one and personal.

The bulk of your advertising, however, should be focused on getting new customers. Farming. Planting seeds that will bring you a new bumper crop to harvest in the future.

Take a good look at your marketing efforts and see how much is geared towards Repeat and Referrals and how much is farming for new customers.

Take those dollars spent on the R& R and bump up your level of service. Then spend the rest on farming. You will reap the benefits.

-Phil Wrzesinski
www.PhilsForum.com

PS Not sure what to say in your farming? Start by downloading my free eBook Understanding Your Brand. The people most likely to shop with you are the people who share your values. Once you identify clearly what you value most, you'll be able to reach the like-minded customers.

PPS I'm going back to see the Wizard in February. Want your world rocked? Join me.

Educating the Customer

2011-11-02T11:28:00.006-04:00

Most independent retailers fully understand the impact of a customer coming into your store, browsing all the aisles, asking questions, getting information, then walking out and buying the item online.

We know how that action, beyond killing your own business, is also eroding the local workforce, the local tax base, and the local economy. We know how our own communities are struggling to make ends meet, how police & fire departments are being gutted, how budgets for schools and education are being slashed.

We know how tough it is to pay your sales people to be a showroom for some out-of-town, faceless Internet site. It demoralizes the staff to do all that work and not get the sale. And they know that without the sale you won't be able to pay them for much longer.

We get all that.

The customer doesn't.

There are only two reasons for this. The customer doesn't know or the customer doesn't care.

The Customer Doesn't Know
One way we have failed our customers is by not letting them know the positive impact they make on our community when they shop with us. We have not educated them that they are supporting jobs in their neighborhood, they are supporting the tax base that pays for their protection and their education and they are making the community stronger when they shop local.

The best way to educate our customers is one at a time. Thank each and every customer who chooses to shop with you for making a positive impact in your community. Engage each customer with a positive message about how together you are making your town a better place to live.

If you choose to post any messages, either on your website, Facebook, in your advertisements, or in the store, make sure they are positive about all you (and they) can do to make the quality of life in your area better.

The Customer Doesn't Care
But do remember that the message, no matter how positive, will not resonate with everyone. Most of your customers are too absorbed in their own worries and cares to even give a single thought to the impact of their decisions. Don't lose sleep over them.

Just remember to always keep your message positive. A positive message may not change the mind of these customers, but a negative one will make them feel bad about your store - something you never want to do.

Most retailers get it. Most customers do not. We have a lot of work to do. Just keep it positive.

-Phil Wrzesinski
www.PhilsForum.com

PS One way to make the message positive... "Thank You for Shopping Local. Today you made our city a better place to live." At its best, it will get customers to engage you in conversation. If nothing else, it will make them feel good about shopping with you. And that is always a good thing.

PPS But if you use that phrase, you better back it up. Pay your staff more than your competitors. Give more to your local non-profits. And get involved in your community. It is a two-way street after all.

Ripping a New Ad Part 2

2011-10-26T16:15:00.005-04:00

Time to take another critical look at some radio ad copy. This is my ad for November...

The Toys They Play With
It wasn’t on his list. In fact, he’d never heard of it. Christmas morning, it did not get the same exclamation of joy as those other toys he thought he wanted. But when the excitement of those TV-advertised toys turned to disappointment because they barely engaged him longer than their ads, he picked up this other toy. Guess which one he’s still playing with. There are the toys on their list and the toys they play with. You know which ones we carry. Toy House in downtown Jackson. We’re here to make you smile.

Like before, let's break down this ad on the five points that turn okay copy into great copy. As a reminder, the five points are:

Make only one point

Speak to the heart

Speak more of the customer than you do yourself

Back up all your claims with evidence

Tell a story

Make Only One Point
The point on this ad is clear. The toys we sell have more play value than the ones your kids see on TV. Those are the types of toys you should buy.

Speak to the Heart
This ad has an emotional appeal because it talks about Christmas and both the excitement and disappointment of the toys/gifts of Christmas. Telling it from the perspective of a child adds to the emotional tug. Telling a story that speaks to a fear all too familiar to many parents - getting a bunch of toys that just aren't as fun as they looked on TV - also resonates emotionally.

Speak More of the Customer Than You Do Yourself
In this ad, neither the customer nor the store dominates the copy. The boy does. Story formats, however, help the customer picture herself in the midst of that story. Therefore, this ad speaks implicitly just as often of the customer as it does the store. Informational formats should be more explicit and focus more heavily on the words you and your.

Back Up All Your Claims
The claim in this ad is that toys do not meet the expectations set up by their TV ads. In this case, you either agree with that statement and the ad resonates with you, or you disagree with that statement and therefore disagree with the premise of the ad. I am not trying to convince you of that statement. I only use the claim to define my audience. I am willing to take that polarizing stand because I know that the people who believe that statement will like what I have to offer. Those that do not, will not be interested in my ad or my business.

Tell a Story
Going back to my favorite form of advertising here. Stories beat facts every single day. We are skeptical of facts (hence the importance of backing them up). But we love stories. We are more willing to listen to a story than to hear a bunch of facts. Stories get attention. Stories move people to action. Stories make people feel. Wouldn't you like your ads to get attention, move people to action and make them feel something?

Don't let your radio ads sound like everyone else. Do and say something different.

-Phil Wrzesinski
http://www.philsforum.com/

PS Based on the five criteria, I gave my last ad a B. How would you rate this one?

PPS I have to give my son, Ian, credit for the inspiration for this ad. Ian told me that one of his favorite Christmas gifts was the large stuffed dog he got in 2005 that still stands guard over his bed every night. As he says... "It wasn't even on my list!"

Resume Versus Application Versus Online

2011-10-24T13:08:00.003-04:00

You're hiring. You need applicants. What do you require those applicants to fill out?

Some have a basic paper application.
Some have a lengthy questionnaire.
Some have an online application.
Some require a resume.

While each have their merits, I am still a fan of the basic paper application.

Resumes, in my opinion, can be misleading. Supposedly they show that the potential applicant has computer skills, but how do you know they created it themselves? Plus, resumes are not standard. They don't always include all the same info.

Questionnaires can be great for weeding out the not-so-serious candidates, but might also be a barrier that keeps a great potential employee from making that first leap.

Online applications are cold and impersonal. They are faceless and give the message to the applicant that they are simply a number. Plus, there is little effort required on the part of the applicant. She doesn't even have to get out of her pajamas.

The paper application requires penmanship. If your employee has to write anything, wouldn't you love to know if you could read that writing?

The paper application reinforces or refutes education. Spelling and grammatical errors may or may not be a deal-killer, but if her education says she has a degree in English but she cannot spell "customer service", you need to be concerned about the veracity of all her claims.

The paper application shows her short-term attention to detail. Anyone can put detail into a resume. Time is not a factor. But sitting with a clipboard filling out a piece of paper shows you what she thinks is important. If she fills it out hastily and sloppily, chances are good she will work the same way.

The paper application requires completeness. If she does not fill it out completely, you can bet she will not do her job completely.

Computers are great. I love them. I use them all day long. But they cannot replace everything. Especially the amount of hidden information you get from an applicant asked to put pen to paper.

Just my opinion...

-Phil Wrzesinski
www.PhilsForum.com

PS The questionnaire makes for a great second-round application process. If there is nothing on the first application to make you say no, give them the questionnaire and see what responses you get.

Radio Ads That Don't Sound Like Ads in 30 Seconds or Less

2011-10-21T17:34:00.003-04:00

The other day I was on a Facebook page with other toy store owners. The subject came up about writing radio ads.

My biggest advice about radio ads is to make them not sound like other radio ads. Say something unique that grabs the listener's attention and then tell a story from that. So I took a line from everyone's comments in that thread on FB and tried to make a radio ad out of it.

I'm posting them here for you to see the creative process. You can say just about anything in the opening line and craft an ad around it. The more outrageous the opening line, the more people will pay attention.

My best ad ever started with the line... "I couldn't believe it. They were taking customers into the men's bathroom!"

For your amusement and motivation, please read on... (and remember, I took a line from everyone's comments and used it for my opening - I especially like the Margarita ad)

The one investment guaranteed to pay off is your child's toys. Before you laugh, hear me out. The quality of the toys you buy is what shapes your child's ability to think and learn. And it isn't just about educational toys. It's about toys that foster creativity and imagination. Invest in those and your child will reap benefits one hundred times greater than the money you spend. Come see me at Toy House and I'll find you the best investment for your child.

Ask not what your toy can do for you, but what you can do with your toy. That's the problem with most toys. They do so much your kid rarely gets to play. Except for the toys at Toy House. We specialize in toys your kids actually play with, toys that foster their creativity and expand their minds. Don't buy toys that do, buy toys that make your kids do. Trust me, they'll thank you for it later.

We have a great Christmas party every year. The best part is that the kids are off playing, leaving us adults alone. Of course, when they get toys from Toy House there is so much more play value that they want to play with their toys. In fact, at our Valentines’ Party they're still playing with those toys. Toys for Christmas that last through Valentine's. You will find them at Toy House.

Given the current stock market roller coaster, I would tell you to invest your money in your child's toys. Buy toys that will expand his imagination. Buy toys that will spark her creativity. No matter what the economy... imagination and creativity are the two skills your kids will need to compete in the future. And you’ll find the best selection of these toys at Toy House in downtown Jackson. That's one investment guaranteed to make you smile.

I never used to have time for Margaritas. I was always busy trying to find new things for my self-proclaimed bored kids to do. Then I found Toy House. They taught me so much about how to evaluate the play value of toys. Now I buy better toys and my kids keep themselves busy. And I have time to relax with my friends sipping our favorite drink. Go to Toy House. They'll teach you everything you... and your kids... need to know.

I was so freaking uninspired. My kids never played more than a couple weeks with all of the toys I bought. I figured, I would try that little toy store down on Mechanic St. Talk about mind-blowing! They showed me how to pick toys that matched my kids skills and interests, how to find toys that had longer lasting play value. You might think being a smaller toy store, it wouldn't have what you want, but Toy House has the kind of toys my kids play with for months on end. Thanks Toy House. You rock!

It's not like buying underwear. Your kids will wear whatever you buy them (if you can get them to wear any at all). But buying toys takes a little more thought. The right toys will grow their brains and put them at the top of their classes in school. The toys that simply entertain them with asking them to do much if anything will create selfish little brats that will cause you to meet with their teachers way too often. So go to Toy House and get top of the class toys. Unlike the underwear, your kids will actually want to use these.

Have fun with your radio ads. Say something interesting and outrageous and people will pay attention. It isn't as hard as you think.

-Phil Wrzesinski
www.PhilsForum.com

PS For more on advertising, check out the Freebies section of my website. Seven FREE eBooks to help you spread the word about your wonderful business.

The Customer is NOT #1

2011-10-19T12:35:00.003-04:00

Yes, I said it. Go ahead and crucify me. But I stand behind it 100%.

The #1 person in your company is your frontline staff. You take care of them, they will take care of the customer. You don't take care of them, they won't take care of the customer. Plain and simple.

But how do you take care of them?

Salary and benefits are nice. Other perks like a parking place, uniforms, an employee lounge, are helpful. But those are simply the starting points. Even the ping pong tables and video games and perceived fun that places like Google brag about only go so far.

What your frontline employees really want is to know that they are valued and they create value for others.

In an interview Google did with its employees, what the employees valued most was, “even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees’ lives and careers.” (source)

Value.

Your staff wants to know you value them as individuals and as team members. There are three easy things you can do right now that will show your staff how much you value them.

First, invest in education and training. The more you do to help them become better employees and better people, the more you show them that they are important to you. You should be training them anyway. But are you offering continual training? Are you offering advanced training? Are you offering personal training? Are you preparing them for work above and beyond their current responsibilities? The more you invest, the more valued they will feel (and the better trained and capable they will be).

Second, listen. Listen to their concerns. Listen to their stories. Take an interest in their lives, in what motivates them. They are giving you clues every time they knock on your door and say, "Got a minute?"

Whenever possible, say YES and turn away from your computer, your catalog, your phone. Give them exclusive one-on-one time where they have your complete, undivided attention. Your body language alone sends a powerful message that you value them as an individual.

Third, praise them. People love to be praised. People love to be told they did something right. Our favorite word to hear is our own name spoken lovingly. When someone does something well, praise them openly and in front of others. Not only will they continue to do well, the other staff will raise their own game in an effort to get that same praise.

Do those three things and your frontline staff will feel valued. Only then will they be able to make your customers feel valued, too.

-Phil Wrzesinski
www.PhilsForum.com

PS There is a great book on motivation called Drive by Daniel H. Pink. I highly recommend you read it.

Community Involvement Pays Off

2011-10-18T12:11:00.004-04:00

You have already been asked to sponsor seven walks, three golf outings, two spaghetti dinners, a pancake breakfast, and forty-five silent auctions.

Every non-profit thinks your pockets are lined with gold.

And they all promise the same thing. "We'll put your logo on our t-shirt. Thousands of people will see you."

Yeah, right.

The only people who see the logo on a charity event t-shirt are other charity event planners looking for potential suckers, I mean, sponsors. No one has ever made a purchasing decision because of a logo she saw on a t-shirt.

But that does not mean you should not be involved in the community and involved in helping out your local non-profits. You HAVE to get involved. If you do not support your local charities then you cannot call yourself a local store.

Here are two ways you can be involved in your community, support local non-profits, and still remain profitable.

First, give out gift certificates freely. For any local non-profit fundraising event, offer a $20 gift card. You are not out anything unless the card is redeemed and most customers will spend more than the amount of the gift card. Think of it as a customer-acquisition expense. It makes the non-profit feel supported and it gets your name out there in a way that guarantees you some return on your investment.

Second, for those groups who want money, not gift cards, hold a special day just for them. Tell them to pick a day that they can promote to all their followers. On that day you promise to donate to them 5% of whatever sales they bring you. Now the burden is on them to advertise your business for you. Yet look at what you get...

Publicity for doing something good for the non-profit.

A fixed return on your charitable donation.

Exposure to a whole new group of people.

Stature as a community supporter.

We have done this for different groups for a number of years. It is always a feel-good day, which gives an added benefit to your staff. They get fired up about it, too.

So get involved in your community. They need you and you need them. Pat their back. They will pat yours in return.

-Phil Wrzesinski
www.PhilsForum.com

PS You can even have multiple non-profits on the same day. Our DDA is doing that with all the downtown businesses on Saturday, November 19 (National America Unchained Day) with fifty non-profits signed up.

One at a Time

2011-10-16T12:34:00.003-04:00

I was on a bus full of rowdy kids with a brand new leader sitting in the front seat. In a voice slightly above a whisper, the leader said, "If you can hear my voice, touch your nose with your thumb."

About five kids nearby put their thumbs on their noses.

Then, with the same voice she said, "If you can hear my voice, put your palm on your cheek." Another half dozen kids joined the first group.

Then, with a normal voice she said, "If you can hear my voice, clap your hands twice." About two-thirds of the bus clapped their hands twice. A few seconds later every voice on the bus went quiet and every child was paying attention.

She never once raised her voice. She never yelled, never cajoled, never forced anyone into being quiet. Instead she invited the kids into her world a few kids at a time. As some kids joined, more kids became interested. In no time at all, she had everyone's rapt attention.

Marketing works the same way.

You can yell and scream and force all the people into listening to your message. They might listen, but they will not hear. As soon as you are done yelling they will go back to what they were doing.

Or you can speak quietly to those closest to you and invite them in. Get them to commit and they will help you get others interested.

The lesson here is easy. First sell to your fans, your VIC's (very important customers). Speak to your current customers. Invite them in. Make them feel special. They will get other people interested in you.

It is a slower growth, but a far better return.

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, I'm talking about Word of Mouth. You do not get that just by being good. You have to give your customers something to talk about. First check out this free eBook - Main Street Marketing on a Shoestring Budget. There is a wonderful explanation of the four ways to generate word-of-mouth. Then download the free eBook Customer Service: From Weak to WOW! to see how you can raise your service to a talk-worthy level.

An Example of WOW!

2011-10-14T15:43:00.003-04:00

My wife was shoe-shopping. A friend told her to try this shoe store at the mall. You all know the kind of service found in a mall chain store, right?

Be amazed.

The sales clerk happened to also be the manager. He was thoughtful, engaged, knowledgeable (all words my wife used to describe him). He asked questions, listened to her, brought her shoes that matched her needs. All the things you expect a good salesperson to do, and especially the manager.

Here's the clincher...

While she was deciding whether or not to make a purchase, he picked up the shoes she had worn in and washed them.

He cleaned her old shoes. No expectations on his part, he simply picked up her old shoes and washed them with a special cloth. She was not yet decided on making a purchase, but that definitely closed the sale. Yeah, she's talking about this experience to everyone she knows. Totally unexpected service that costs the store almost nothing, but buys the store a ton of advertising.

That is WOW!

-Phil Wrzesinski
www.PhilsForum.com

PS If you are a jewelry store you should be cleaning the rings of every customer who walks through the door. If you are a stroller store you should be lubricating every squeaky wheel. If you are a store that caters to moms and babies you should have a fully-stocked changing station. What unexpected simple little nicety can you offer?

The Busy Season

2011-10-12T08:53:00.004-04:00

As a toy retailer everyone expects that my busy season is December. They would be wrong.

December is the store's busy season. My busy season is right now. Here is my October To-Do List:

Place all my orders for product I expect to sell in December. If I wait too much longer, many of the best items will already be sold out.

Hire and train my seasonal staff. This involves writing and placing ads to attract applicants, weeding through all of the applications, scheduling and doing interviews, doing background and reference checks, setting up a training schedule, updating the employee handbook, and doing the actual training. It also includes refresher courses for the regular staff.

Place orders for all selling supplies. I need to make sure I have plenty of bags, giftwrap, price tags, receipt paper, toilet paper, paper towels, layaway string, tape, etc. to get through the holidays. Do it now or forget and not have it when you need it.

Prepare my marketing campaign. I need to write/create/produce/schedule all of our marketing for November and December. This includes promotional events like Neighborhood Toy Store Day, the Downtown Christmas Parade, Discover Downtown Again Day, and the Toys for Tots Breakfast. This also includes writing radio ads and planning a Facebook campaign.

Carefully plot out cash flow. The money rolls in during December. The money rolls out during October and November as we stock up for the holidays. That means I have to pay close attention to every penny I spend.

Clean up. The entire store needs a fresh and thorough dusting. Displays need to be upgraded or moved out. Merchandising needs to be plotted and planned for all the new products coming in.

Yes, my busy season is right now. After I accomplish all those things over the next few weeks I'll have plenty of free time in December to do what I do best - sell toys.

-Phil Wrzesinski
www.PhilsForum.com

PS I wrote this list as much for MY benefit as for YOURS. For me, it is a reminder to stay focused on the tasks at hand. For you it is a reminder of all the things you need to do to make this the most successful selling season ever.

Being an Expert is Easy, Sharing is (not) Hard

2011-10-11T16:37:00.004-04:00

You already are an expert.

According to the famous physicist, Neils Bohr, "An expert is a man who has made all the mistakes which can be made, in a narrow field."

I take a more liberal approach.

An expert is someone who knows more than me on a given topic.

Most of your customers would agree. If you know more about a topic than they do, you are an expert to them. If it is a topic of which they would like to learn more, they will seek you out.

So accept the fact that you are an expert. The next step is to learn to share that expertise.

Here is a three-step process for learning how to share your expertise well:

Boil down your ideas into two or three main points. Make them simple points that are easy to remember. Label each point with some catchy phrase or title.

Find evidence to support each point. Reports, quotes, examples and especially anecdotes all work well for this.

Choose products you sell to help make your points. Your products bring the points closer to home, help establish your position as the expert (you are walking the walk), and connect your expertise to your store.

Once you have done those three things, you can then choose the platform(s) you wish to use to share. Here are just some options you can use:

Facebook - The plus side is that you can use pictures, the downside is that you have to be brief and to the point.

Email Newsletters - A little more room to make your point.

Your Website - Give yourself a page on yor website just for sharing your expertise. It helps brand you as the expert in your field for your locals, and helps build trust with non-locals who have never heard of you till they clicked you in a search.

A Blog - Wordpress and Google have blogs you can set up for free in seconds.

Youtube - Another free service, you can even post your videos to Facebook, your website and your blog.

Press Releases - Pass your information along to journalists and bloggers. Let them promote your expertise.

Speaking Engagements - Your local service groups (Lions Club, Rotary, Exchange Club, Kiwanis, etc) are always looking for speakers. Plus, most towns have women's clubs, mother's clubs, networking clubs, etc.

Classes in your store - Probably the easiest of all. Clear out a space in the store. Announce the topic and time. Share.

There are plenty of opportunities to share what you know. And share, you must. Sharing builds trust with your customers. Sharing makes your customers smarter and more loyal. Sharing creates opportunities to reach out to potential new customers.

Be the expert you already are. Be it willingly and generously. To paraphrase Carl Rogers, Who you are is good enough, if only you would be it openly.

-Phil Wrzesinski
www.PhilsForum.com

PS Afraid to speak in public? Start simple. Practice your presentations by first giving them to your staff - a friendly crowd. First, you empower them with that knowledge so they can be experts, too. Second, they will be forgiving of your mistakes, but also quick to point them out, which will help you improve. Third, because of the familiarity, you will be less nervous.

Is Your Staff Laughing?

2011-10-08T10:04:00.002-04:00

Laughter truly is the best medicine.

Laughter decreases stress hormones.
Laughter decreases the risk for heart disease.
Laughter oxygenates the cells and helps fight cancer.
Laughter boosts serotonin levels which helps your mood.
Laughter releases interleukins that boost your immune system.
Laughter releases endorphins that can even cause temporary pain relief.
Laughter works your core muscles, which promotes better spinal alignment.

Laughter also strengthens relationships. Someone who is laughing and smiling immediately looks more "attractive". The key part of that phrase is "attract". Smiles and laughter "attract" other people. You know this. You would much rather approach a person who is smiling than someone who is frowning.

Laughter opens the mind, too. People who laugh are more willing to listen, more willing to see things from other points of view, more willing to engage with other people.

So to recap... People who laugh are healthier, happier, more attractive, more engaging and more approachable. People who laugh are more open-minded and listen better.

Sound like the perfect sales staff?

Encourage and foster laughing in your staff and not only will they see benefits, so will your business.

We have three rules of laughter on the sales floor.

Laughter has to be inclusive. If you are laughing at instead of with, then it has to stop.

There are no inside jokes. If it isn't funny to everyone, it doesn't belong on the sales floor.

Appropriate laughter should be encouraged at all times.

Not only is laughter good, it fits into our Core Value of Having Fun and our mission - We're here to make you smile.

So I leave you with this one final thought...

There was a captain sailing on the sea during a battle. His servant came up to him and the captain said, "Bring me my red shirt."

So, the servant did as the captain said.

After the battle the servant came up to the captain and said, "Why did you say bring me my red shirt?"

The captain said, "Well if I got shot the crew wouldn't see the blood and be demoralized."

The next day the servant came up to the captain and said, "There are 50 ships on the horizon."

The captain said, "Bring me my brown pants."

-Phil Wrzesinski
www.PhilsForum.com

PS One way to encourage laughter is to play. Have game nights with your staff or join a sports league like softball or bowling. Another way is to have a joke session at your next meeting. Whatever it takes, set up a culture where appropriate laughter is the norm.

Driving Traffic to Your Site (SEO)

2011-10-07T16:56:00.004-04:00

I had a local entrepreneur contact me about her website. When she launched she was getting regular sales. But she hasn't had a sniff in months. She thought maybe something was wrong with her site and asked me to take a look.

She sells Made in Michigan, lead-free, lightweight, high-quality, reusable shopping bags, something worth a look for stores like ours. Check out her site, www.berniebags.com. It will be helpful in understanding the rest of this post. (Full disclosure - nothing to disclose. I am not promoting her site or products, did not know her other than as a customer before she approached me, this is purely for educational purposes, but if you like what she's selling, by all means, buy it.)

I took a look at her site and did not see anything inherently wrong with it. But I am not the best judge of that. I do not shop much online, prefer to buy local whenever possible. So I ask you to check it out and tell me what you see that could be done better.

Her biggest problem, however, is one we all face.

I Googled her product category "Reusable Shopping Bags". Thirty five pages deep, I gave up. She was nowhere to be found.

So I gave her the following list of things to do to raise her site in the rankings of Google and other search engines...

1) Make sure you have good keywords and metatags. Whoever designed your website should know what I mean. Basically, you want to have the key phrases people might use to search for your product in the keywords and metatags (behind the scenes) parts of you website.

2) Get some "link love". The more that other websites link to you, the higher your site will rise in Google's eyes.

Ways to get links include asking your friends/customers who have websites to put your logo and a link on their sites. Also, you can launch a Facebook Page, a Google Places Page, a Yelp Page, etc. If you have a profile on LinkedIn or any other type site, make sure your website is referenced there.

Another way to get links is to comment on blogs and articles online. Run a search on all the articles on lead in shopping bags and write a quick comment like "That's why I decided to make and market some Michigan-made, lead-free, reusable shopping bags." Find the bloggers who are writing about this and make comments on their blogs, too.

3) Consider starting your own blog. You can get free blog sites from blogspot and wordpress. It takes time, but you can grow a following. Simply write quick, short, one-paragraph reminders of why using reusable bags is so good. Have links to other articles. Have photos and video. And make sure each post links back to your site.

4) Do a youtube video of the bag and why it is so cool. Most smartphones have video so making a video is easy. It doesn't have to be polished, just has to be clear and informative. Post it on youtube (free), link to it from your Facebook page and website. Email it to friends and clients and ask them to share.

5) Find yourself in the Google Search and "+1" your listing (click on the little box next to your listing and get all your friends to do the same). This is tedious because you may have to search through dozens of pages of Google Search before finding yourself. But if you and 5 friends each do this on their computers, it will make a difference.

All of the above will simply cost you time, not money. If you want to spend some money, consider Google Adwords. You can drive a lot of traffic that way, but you have to convert a large portion of your visitors to be worth it.

-Phil Wrzesinski
www.PhilsForum.com

PS I know there are some savvy SEO gurus out there who read this blog. Did I hit the mark? Anything I missed that she could do? Anything with which you patently disagree? Your comments will help all of us grow.

A Lesson From Steve Jobs

2011-10-06T14:23:00.003-04:00

My son is thirteen. He downloads Apple iPod/iPad/iPhone manuals for "light reading". His favorite thing at the library is the latest edition of Mac World Magazine. His email address is applenerd@_ _ _. This past summer he taught the teachers in his school district how to use their shiny new iPads. We drove him and his brother to Ann Arbor (40 miles away) four days in one week so that they could attend "Apple Camp" at the Apple Store in Briarwood Mall.

Yesterday's news was tough in our household.

Many bloggers will be reminiscing about Steve Jobs and what he did at Apple. Here are two things we, as retailers, can take away.

First, the whole concept of Apple Camp is brilliant. Invite a group of people to come to your store multiple times over a one week period and do a continuous activity with them. Imagine having a dozen of your best customers stopping by at 4pm every day to do an activity you planned for them. Your cost would be minimal - some supplies, a little bit of marketing, time from a staff member. Your benefits would be HUGE. Every single attendee would become an instant evangelist singing your praises far and wide.

Give your customers something to talk about and they will talk about it. Apple Camp is what solidified my child as a lifelong fan of Apple.

Second, the Genius Bar is absolute genius. Most of your customers are coming to you because of trust. One way you gain that trust is through information. Apple, by creating the Genius Bar, made it clear that not only did they have people with the information, those people were available purely for the job of passing along that information.

Two great aspects of retail that Apple did right and we all can emulate. Thanks, Steve!

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, you can hold a camp. You are an expert in your field. You know more about your products than your customers do. Figure out a fun way to share that information. If you are a toy store, have toy demonstrations or game nights or puppet shows or dress-up fashion runways. If you are a jewelry store, have a class on gemstones or precious metals. If you are an auto parts store, teach people how to change their wiper blades or even their oil. If you are a clothing store, have an event around Fashion Week in NY. The ideas are endless.

Ripping a New Ad

2011-10-04T16:04:00.003-04:00

I just recorded my October radio ad. Here is the ad copy...

They gave up on you. They dropped layaway. They dropped a friendly knowledgeable sales staff. They even dropped classic toys like wooden building blocks. Oh, sure, they brought back layaway, but only for a fee. Our layaway is still free. So is our giftwrapping. And with over five times as many toys as any of our local competitors, why would you shop anywhere else? We’ve always been here for you. Toy House and Baby Too in downtown Jackson. We’re here to make you smile.

There are five things that turn okay ads into great ads.

Make only one point

Speak to the heart of the customer

Speak more of the customer than you do of yourself

Back up all your claims with evidence

Tell a story

Let's break this ad down and see how it does...

Make Only One Point
This ad is what is known as a contrast ad, designed to contrast one business with another. In this case I use multiple examples to make the point that they don't care about you, we do. I open with that point - They gave up on you - and close with that point - We've always been here for you. This message is consistent with our Character Diamond, focusing on the core value HELPFUL.

Speak to the Heart
On this I could have done better. Contrast ads, however, are about information more than emotion. Still, for effect I added emotion into the line, Oh sure, they brought back layaway, but only for a fee. Sometimes emotion is in how you read it as much as in what you say.

Speak More of the Customer
Here is the same copy but with the key words highlighted...

They gave up on you. They dropped layaway. They dropped a friendly knowledgeable sales staff. They even dropped classic toys like wooden building blocks. Oh, sure, they brought back layaway, but only for a fee. Our layaway is still free. So is our giftwrapping. And with over five times as many toys as any of our local competitors, why would you shop anywhere else? We’ve always been here for you. Toy House and Baby Too in downtown Jackson. We’re here to make you smile.

On this point I did not do well. Spoke of myself six times and the customer four times (and the competitor five times). How could I have spoken more of the customer? Hint: each of the "They" sentences could have included a "you". Oh sure, they brought back layaway for you, but only if you pay a fee.

Back Up Your Claims
My big claim is that they gave up on you. To support that claim I point out how they dropped layaway and only brought it back with a fee. I also point out how they stopped carrying certain toys.

The only unsupported claim I made was about the friendly, knowledgeable staff. This point is a matter of opinion. Without evidence to back that up I am taking a risk that people will not believe my ad. Those people who believe my competitors do offer great service will dismiss my ad.

In this case I am banking on two things. First, that most people generally believe that my competitors have lousy customer service. This is called assumptive reasoning. Second, that because I backed up my main point, people will believe this secondary claim.

Note: The final claim I make - that we carry five times as many toys - is also not backed up by evidence. But mainly because the evidence is in the store. No one would expect me to count it all for them on the air. But since I give a specific number like five as opposed to saying "way more" or "much more" the claim is more believable. Listeners expect that I have done the math before making a claim like that. And I have. It is true.

Tell a Story
Stories are powerful. Many of my radio ads paint mental pictures for the listener. The mental image for this ad is how my competitors are giving up services while we still have them. Although not as powerful of an emotional story as I have written before, this ad is a good alternative because contrast helps lay the foundation for making future stories believable.

Here is an ad I wrote with a much more powerful story...

You do not have to be a fantastic copywriter to write quality ad copy. Just stick to the five points above and your ads will resonate far better than the boring look at me ads most stores run.

-Phil Wrzesinski
www.PhilsForum.com

PS I gave myself a B for this ad. But it is also part of the bigger picture. Sometimes I use certain ad styles today to set up ads for tomorrow. When you have a long horizon view, a long timeline for your business, you will make different decisions than if you only worry about the here and now.

Is Somebody Trying to Screw You?

2011-10-03T15:26:00.004-04:00

You think your return policy is quite liberal. Somebody still tries to take advantage of you.
You think your layaway policy is quite liberal. Somebody still tries to take advantage of you.
You think your giftwrapping policy is quite liberal. Somebody still tries to take advantage of you.

No matter what wonderful, friendly, customer-oriented, liberally-applied service you offer, there is always that one customer who will try to take advantage of it and you. Don't take it personally. It isn't you, it is her. She does that with everyone. She always pushes the boundary.

There are two ways to deal with her.

Either tighten up your policies so restrictive and enforce them so tough that she stops doing business with you altogether. Or simply allow her to do what she wants and chalk it up to the cost of doing business.

The first way, however, doesn't solve the problem. The tighter your policies and the tougher you enforce them, the more boundary pushers you will have. Since these customers are a real pain the neck for your staff, all you accomplish is to upset more people including your front line workers who are the face of your business.

The second way is much better. First understand that the vast majority of your customers are not out to screw you. They love you. The few who actually take advantage of you are exactly that - a few. Embrace them. Love them. Shower them with affection for being customers and you very well might even convert them into partners who work for the mutual benefit of both of you.

Plus, when you make your policies so liberal that it is almost impossible for someone to try to take advantage of you, you eliminate much of the negative feelings your staff might have towards certain customers, feelings, by the way, that can be felt by everyone in the store.

Make your policies liberal, then make them even more liberal. Do you allow returns? Instead of 30 or 60 days, give them a year to change their mind. Give them a store credit if they don't have a receipt. We once took back a large boxed item that had our competitor's sticker on it. It was a product I knew I would sell quickly so it was a win-win. The customer was happy and I was, too.

Then empower your staff to make your customers smile by breaking the rules whenever possible. It makes your staff feel more important, makes them happier, too.

Most of your customers will have a receipt, will be in quickly, will not give you any hassles - no matter how you determine your return policy. So make your policy over-the-top liberal and you make everyone happy - except maybe the gal who really did want to screw you.

-Phil Wrzesinski
http://www.philsforum.com/

PS This goes for return policies, but also any policy you might have. Make it in the favor of the customer. Make it as easy for her to understand and use as you possibly can. The more restrictions and disclaimers, the more it turns her off. More than likely she will never use the most liberal part of that policy. But both she and your staff will be happier when you gladly give so much leeway.

Stay the Course

2011-10-02T13:26:00.004-04:00

I sailed for the University of Michigan club sailing team. Finished 4th in the nation in the fall of 1986 in a windy National Sloop Regatta on Lake St. Clair outside of Detroit. Winds of 30 knots shifting and changing.

The Naval Academy won that event.

I wasn't a very good captain. My specialty was boat speed. I knew how to sail fast. With every shift in the wind I would shift to maintain optimum boat speed, regardless of direction. That was our downfall.

The Naval Academy team focused on direction, adjusting the sails to meet the changes in the wind, but always keeping their eyes on the prize.

My boat was faster. They won the race.

Retail can be a lot like sailboat racing. If you go chasing every fad (every wind shift), you might be moving fast, but not necessarily towards your goal. You'll feel the wind whipping in your face and everything will feel good. But the ultimate destination remains far away.

Understand that to reach your goal you will have to make adjustments, but don't throw your whole strategy overboard on a whim. You might not be traveling as fast as someone else, but as long as you're heading in the right direction, you will get there.

-Phil Wrzesinski
www.PhilsForum.com

PS If you don't have a direction, check out this free eBook on branding: Understanding Your Brand. Once you know your core values, just choose one of those values and be the leader in your industry in that value.

You Get What You Ask For

2011-09-30T13:41:00.003-04:00

Many of you are putting out classified ads looking for help that read like this...

Help Wanted: Seasonal employees needed. Apply in person at The Store.

Short, sweet, and cheap.

How do you think your application pool would change if your classified looked like this?

Help Wanted: Are you a friendly person who loves to help others? Would you like to work in a challenging environment where your greatest reward is solving problems for other people and making them feel good? Are you a person who will work flexible hours including nights and weekends? Do you have high energy no matter what time of day? We want to see your smiling face in our store. Stop in The Store and fill out our application by next Friday. We need friendly, helpful, caring, flexible people who can make our customers happy.

Sure, it costs a whole lot more. But you get what you pay for. The first ad will get everyone looking for a job (which is quite a bunch of people). The second ad will only get those people who read that description and see themselves in that role. The ad becomes an automatic filter for you, weeding out many of the undesirables.

Plus, that second ad might get the interest of someone who never knew she was perfectly suited to work for you. She would have ignored the first ad.

When it comes to classifieds, you get what you pay for. More importantly, you get what you ask for. So ask for exactly what you want. It is worth paying a little more.

-Phil Wrzesinski
www.PhilsForum.com

PS The second ad also gets attention for your business. Someone might read that ad and even though the job is not for them, the description of the position gets them thinking, "Yeah, I'd like to shop somewhere that hires people like that."

Fifty Cent Words are a Dime a Dozen

2011-09-29T14:36:00.003-04:00

I got this email the other day. Here it is verbatim...

Hi Phil,
May I send you information regarding an upcoming thought leadership summit focused on data driven decision making, integrated business planning and leveraging business analytics?

Regards,
Alex

I don't know about you, but that looks like a bunch of business book vomit to me. A "thought leadership summit"? (who is thinking about what?) "Integrated business planning"? (integrated with whom?) "Leveraging business analytics"? (what analytics from where?)

Even if it was from a company I recognized and trusted, I still might not attend because I would feel left out from the beginning because I don't even know what those phrases mean. I don't want to go where I will feel like a fool.

Your customers are the same way. They will not go where they feel foolish, either. Do not use words or phrases in your marketing, on the phone or in person that might make them feel that way.

Every industry has big words specific to that industry. But do not assume that your customers understand all those words. Whenever possible, use simple words that make the same point without making the customer feel foolish. Your customers will be more trusting, more comfortable, and more likely to act.

Hi Phil,

Can I send you an invitation to a meeting of business owners who want to learn new ways to look at data to make their businesses more profitable?

Regards,
Alex

Alex, I would have allowed you to send me an invitation if you had written your request that way.

-Phil Wrzesinski
www.PhilsForum.com

PS One of my favorite Ernest Hemingway quotes... “Poor Faulkner. Does he really think big emotions come from big words? He thinks I don't know the ten-dollar words. I know them all right. But there are older and simpler and better words, and those are the ones I use.”

Make One Point

2011-09-28T11:19:00.003-04:00

As you prepare your advertising for the holiday season, here is one thing you can do to make your campaign work better.

Make only one point in your ad.

That's it. One point. No more.

The truth is, most people will neither hear nor see your ad. They are so bombarded with advertising that they have tuned you out. Those that do hear or see it will be distracted by life so they will not be paying much attention because, frankly, your ad just isn't that important to them either. The remaining few who actually do hear or see your ad and give it the minimal amount of attention will be lucky to remember one point. Which point do you really want them to remember?

Say too much and there is a good chance they will remember nothing or at the most, the wrong thing.

Pick the one most important point you want people to remember and say that. Nothing else. Your ads will be more memorable, and you will get your point across more clearly.

Did I make that clear enough?

-Phil Wrzesinski
www.PhilsForum.com

PS Don't know what point to make? Check out my free eBook on branding Understanding Your Brand. Then download the worksheets. You'll know what point to make soon enough.

The Customer is in Front of You

2011-09-27T08:58:00.003-04:00

I just got back from the All Baby & Child Expo in Louisville, KY. This is the big show for the baby products industry. Thousands of vendors, thousands of buyers, millions of square feet of showroom space.

This was the first time the show had been anywhere other than Las Vegas. Louisville was a big risk. A little harder to get there for those flying. Not the same level of entertainment options. Not the same international cache. Add in the not-quite-stellar economy and the buzz was...

Would there be good attendance?

Apparently not. I lost count how many times I had to listen to vendors complain how the lack of attendees was hurting their business and it was all the fault of the board of directors choosing this location.

Fortunately, I also heard from a fair number of vendors who were having an awesome show, meeting new people, opening new accounts, writing serious orders. It wasn't Vegas, but it was business, and they were doing it.

The difference? Attitude.

At one point, after listening to a lengthy rant about the show location and poor turnout, I looked at the person across the table and said rather indignantly, "I'm here and I'm writing an order. I don't care about all that other crap."

The point is that you can complain about the lack of customers for your business or you can embrace the customers that do show up. Complaining will not drive a single extra person through the doors. In fact, it will drive the few customers you have away. But if you focus on the positives of having a customer in front of you, she will bring you more business.

That is true at both trade shows and retail stores. We like to do business with happy, friendly people. Period. Keep your complaints to yourself.

When the attendance/traffic is not there, you have to maximize the business you do with the customers you have. You do that by being positive and upbeat. You do that by being friendly and helpful. You do that by making sure you focus on the customer in front of you. Make her feel special and welcome. Transfer confidence to her that your since your attitude is good, your business must be good, too.

Yeah, Retail 101. Amazing this past weekend how many people did not get it.

-Phil Wrzesinski
www.PhilsForum.com

PS Is it any wonder that the people with the best attitude were having the best show? Your attitude is everything. You set the tone for your employees and your business. Make sure you put your best foot forward every day.

What's My Motivation?

2011-09-21T15:01:00.003-04:00

Why do I write these blogs? Why do I create presentations? Why do I write and publish eBooks that I give away for free?

To help you succeed.

Sure, that's what I say. But even then, you are thinking in the back of your mind that there must be something in it for me. Altruistic goals always have some hidden agenda.

Here is my hidden agenda...

I love to speak to groups. I love to help other people be successful. I love to write. I love to create. So I do those last two things to accomplish the first two. I write my blogs and eBooks and presentations to get more opportunities to speak (for which I often get paid), to sell more of my book, and to find a larger audience to help (which gets me more speaking gigs and more books sold). Now you know.

The most important lesson here is that no matter how good your intentions, customers always believe you have some hidden agenda. They have been taught that "if it's too good to be true then it probably isn't true."

They are trained to look for the hidden agenda, the ulterior motive they are convinced is there.

So put your agenda out there for the whole world to see. They are going to look for it anyway. You gain their trust when you show it to them before they begin looking.

Tell them, yes, you are in the business to make a profit. It puts food on your table and on the table of all your employees. Tell them, yes, you are being over-the-top helpful because you want them to bring you new customers. Tell them, yes, they can find items cheaper somewhere else, but you are not willing to sacrifice your way of doing business just to squeeze out every nickel in the price. Tell them, yes, you want to win their hearts, you want to build trust, you want to solve their needs, and you want to get them to like you just so you can make that profit. And you will continue to do all those things to continue to make more money.

There is nothing wrong with being profitable (regardless of what the government thinks). But hiding that fact does not change it from being true.

Here is the upside from this transparency. If you openly embrace your agenda and share it with your customers, they will trust you more. And with trust comes loyalty. With loyalty comes repeat business. And with repeat business comes profit. And if you have the guts to tell your customers all that, you will be pleasantly surprised with their response. They knew it all along. They just love you more now that you are willing to share it openly.

On top of that, when you do something purely altruistic, without a hidden agenda, people won't be trying to look behind the curtain to see what scam you are trying to pull. They will believe you because they have already learned to trust you.

I wrote a line in a contest for a book that said... "the heart of our company lies not in the numbers in our books, but in the hearts of our customers."

Get into the hearts of your customers and you will have all the numbers you need.

-Phil Wrzesinski
www.PhilsForum.com

PS Yeah, on paper it looks simple. Guess what? It looks the same in real life. Be transparent about making a profit - build trust - get more sales - make more profit - repeat. Simple.

Do You Match Prices?

2011-09-19T13:27:00.004-04:00

If you are an independent retailer you have been asked this question a thousand times.

I was recently asked by a regular customer on Facebook. Knowing that a thousand plus people were going to read my response, here is what I said:

Dear ____,
This is a tough question to answer. I could just say no and leave it at that. I used to say, "No, because they don't match our services." But some might look at that as a bit of arrogance.

For the sake of everyone who might read this, I want to give an explanation of why we don't match prices because I think it might be an eye opener for shoppers to understand what goes into a decision like this for a store like us. It is a tough decision that we do not take lightly.

We used to match prices but over the years a few factors have come into play that made it difficult.

First it was the ads for products that the store never had. Target was notorious for running ads with prices below cost of stuff that was never in their store. Yet we had plenty of stock and lost money on everything we sold matching their "price".

Then there were stores that didn't offer any of the services we offer like layaway, giftwrap or a knowledgeable sales staff. All of which cost money. With a lower overhead they (sometimes) offered a lower price.

Now, with the Internet there are warehouses in low tax locales, paying minimum wage to a small handful of employees to stuff boxes. They don't have the overhead of a brightly lit sales floor, or trained and compensated sales staff. They don't have to pay the same city/county property taxes, state business taxes, city & state income taxes, etc. (which means they do not contribute to your local fire and police) They don't have to collect MI sales tax so they advertise it as "tax-free" even when it is not (and by not collecting that tax they don't help the state get the money it needs for education and roads, etc).

So our choice is to either offer to match prices, but in the process drop all the services that cost money, hire fewer staff and pay them less, or to stop matching every price and keep doing business the way we believe it should be done, by offering incredible services and experiences for our customers, by getting them the right products at a fair price, one that is reasonable for the product, covers our overhead, keeps my staff employed and puts food on everyone's tables.

That's the route we have chosen.

Whether it works for us in the long run, whether customers see any value in such services and such a stance is the gamble we have to take. But I believe it is worth it for my customers, my staff, and my community.

Thanks for the opportunity to explain. I apologize if that was way more information than you needed:-)
-Phil

What are you saying?

-Phil Wrzesinski
http://www.philsforum.com/

PS Oscar Wilde said it a long time ago and it is still true today. "Many men know the price of everything and the value of nothing."

How Much Would You Pay for This?

2011-09-16T12:44:00.008-04:00

I'm working on a project that would be a comprehensive guide for all those funky financial terms with which our accountants bombard us at the end of each fiscal year.

I wrote a simple explanation that I published here (free download). This new guide will be in far more detail.

The question today is...
Would you be interested in a guide like this and how much would you pay?

To give you an idea of what you would find in the guide, here is a sample:

Cost of Goods Sold: Cost of Goods Sold (COGS) is a measurement of what you paid out to buy the products you sold in your store. Most people think COGS is calculated by subtracting Profit Margin from 100, but the formula looks like this:

COGS = Beginning Inventory (at cost) + Net Purchases – Ending Inventory (at cost)

The formula is done this way to take into account any merchandise that has disappeared (been stolen, marked out-of-stock for store use, etc.) or any extra discounts you may have received that were not registered in your POS. If you have major inventory adjustments because of theft or loss, your COGS will go up.

Another factor that sometimes goes into this calculation is Freight-in. Some accounting systems include Freight-in as part of the Net Purchase. Some consider Freight-in as a separate Selling Expense. If you include your Freight-in with your Net Purchases then your COGS will be higher. If you do not, then your COGS will be lower.

Although most POS systems will calculate your profit margin based on the cost you paid per item sold, COGS is a more accurate reflection of what you spent on the merchandise you sold because it accounts for those inventory and cost adjustments. Typically accountants will first calculate COGS and then subtract that from 100 to get your true Gross Profit Margin.

A typical COGS for a (insert industry here) should be around (insert industry standard here) (with Freight-in as a separate expense). The higher your COGS, the less money you are making for the products you sell.

If your COGS is much higher than the average store in your industry these are the five most likely reasons:

1. You are including Freight-in in your Net Purchases.
2. You are not marking up your retail prices as high as the typical store in your industry.
3. You carry a heavier load of product lines that traditionally have much lower profit margins than the typical store in your industry.
4. You lost more inventory to theft or store use than the typical store in your industry.
5. You are offering more discounts off your regular prices than the typical store in your industry.

If your store is making a comfortable profit and has ample cash flow, then you do not need to worry about getting your COGS in alignment with other stores. But if your profit or cash flow is not where you want it, you should evaluate those five reasons to see where you can improve or look at ways to increase your Inventory Turn Ratio.

Now imagine an explanation like that for every line of your Balance sheet, your Profit & Loss plus a few other calculations like GMROI, Inventory Turn Ratio, Current Ratio, and a whole bunch of other terms that you only vaguely understand.

Interested?

How much would you pay?

-Phil Wrzesinski
http://www.philsforum.com/

PS You can simply leave a comment or send me an email. I would love to hear your responses.

A History Lesson About Change

2011-09-14T09:04:00.004-04:00

I give talks to mother's groups and other organizations about how to shop smart for toys. The talk is always well-received and praised for the smart and practical information. Most of the participants are surprised at how much thought should actually go into each toy purchase, and how easy it is, once you know what to observe, to get the right kinds of toys for your kids.

The lessons in that presentation are the same lessons my grandfather was teaching sixty years ago.

The lessons have not changed, but the toys have.
The principles have not changed, but the products have.
The core values have not changed, but the way we present them has.

The point worth making here is that while you need to hold onto the the same principles, the same core values, the same ideals about the products that got you to this moment, you need to update the packaging.

Make sure your product mix continually includes new items, fresh displays, and updated categories. Rotate your merchandising around to give your store a new look. Add a fresh coat of paint to give the feeling of new in your appearance. Dust every single week! Try new products and new categories that make sense for your store. Try one that doesn't make sense. It adds a little excitement and surprise. Sure, keep the basics and staples, but give your customers reasons to come back to see what's new.

You'll never hear a customer ask, "So what's old and dusty?"

The principles do not change, but the way we implement them always needs a fresh face. Make sure you are constantly updating and improving your product selection and displays. Keep the "history", but ditch the "old and dusty".

-Phil Wrzesinski
www.PhilsForum.com

PS Sometimes it is hard to read the label from inside the bottle. Have a spouse or friend give your store a critical look, preferably someone who hasn't been in your store in a while. Ask her to label things as either "old" or "fresh". If she calls it "old", get rid of it, move it, or update it.

Phones Done Wrong

2011-09-13T09:30:00.004-04:00

I've been beating the Customer Service drum for a few weeks now. It is the one biggest advantages we specialty store owners have over our competition.

Every now and then I see stores who get it right.

Every now and then I see reminders of how far we still need to go.

Just yesterday my wife had a moment that made her cringe. She wanted to find the hours of a local store. We needed to make a purchase.

They have a website, but their hours were not listed on it (mistake #1).

She called the store. The person who answered rattled off the hours so quickly that my wife could barely understand her (mistake #2).

Then the person never asked my wife if she had any other questions (mistake #3), if she needed directions (mistake #4), or even thanked her for calling (mistake #5).

Two minutes of interaction and five easily correctable mistakes.

If you do not have phone etiquette in your training program, you need to add it. You can turn a customer off before she even reaches your door with a poorly handled phone call.

-Phil Wrzesinski
http://www.philsforum.com/

PS Along with eliminating the four mistakes above, remind your staff to smile while on the phone. People can hear that smile in your voice. And always end the call with, "Thanks for calling."

PPS A fun way to approach phone training with the entire staff is to play the telephone game where one person whispers something into the next person's ear and so on around the circle until the last person relays the now-garbled message back to the beginning. Makes the staff laugh and gets them in the mood to accept the premise of clarity on the phone.

A Kid in a Candy Store

2011-09-12T11:08:00.004-04:00

Actually two kids. My boys, ages 13 and 10.

After a day at the Michigan Renaissance Festival that thrilled my 10 year old because of the sword play, we stopped in the quaint little berg of Linden, MI to visit Linden Sweet Shoppe, owned by my toy store buddies Chris & Laura Mathews.

Chris & Laura weren't in - good for them for getting a Saturday night off - but the two staff working that night were more than adequate replacements.

My boys were simultaneously in heaven and in paralysis.

My best estimate is that there were over 150 jars of candies from which the boys could choose lining the wall behind the counter. Every sweet imaginable from candy necklaces to pixie sticks to chocolate covered cake batter to LEGO-shaped, sweet-tart-tasting, building bricks.

The boys struggled to choose which candies would fill their bags.

Patience and Helpfulness
While they wandered up and down the aisle behind the counter (yes, the staff let them back there to get a better look) I was getting impatient. Make a decision, I cajoled them. Meanwhile, the staff showed amazing patience, carefully explaining each candy, giving them samples if appropriate, sharing their favorites, and overall treating these boys as if they were princes in their palace.

Other customers entered the store and the staff greeted them by name, asked about previous purchases, and made everyone feel equally important. Still, my boys dragged on the decision-making process. I had time to order and eat my ice cream cone (Deep Dish Apple - delicious and just the perfect temperature!) while the boys agonized over every jar.

And still, again, the staff treated them like royalty. All for a $17 sale!

WOW Customer Service still lives. I saw it with my own two eyes. (And that was before I introduced myself as a friend of the owners.) Here are some of the things the staff did right:

Greeted customers by name (when they knew them)

Talked about the product openly and honestly

Had helpful product knowledge

Showed amazing patience

Smiled constantly

Treated every customer like he or she was special

Treated every request like it was their delight to honor it

Acted happy to be there

Does your staff act that way at 8:30pm on a Saturday night? They should. Chris & Laura figured out how to get their staff to do it. You can, too.

-Phil Wrzesinski
www.PhilsForum.com

PS It starts with hiring and continues with training. The staff Chris & Laura hired have the character traits necessary to be helpful and patient. The next time you hire, choose the traits over the experience. You can teach them the rest.

PPS The Renaissance Festival featured some wonderful lessons, too. The attention to detail of the costumes, accents, and language added to the fun of the day. And there is nothing better than topping off any event with a turkey drumstick smoked to perfection.

PPPS My younger son went with the building brick candies, candy pumpkins, cake batter balls, and candied orange slices. My older son did a jaw breaker on a stick, a gigantic pixie stick, and building brick candies. Absolute heaven!

A Safe Place to Dry

2011-09-09T12:00:00.004-04:00

As you hire and train your seasonal staff this fall, there is one thing I want you to contemplate...

When do you throw your new staff to the wolves?

I was in Office Depot yesterday and the name tag of the guy at checkout said "trainee". I looked around and he was all alone. No support, no one to lean on if he had a question. And he had a question.

One of the items did not have a barcode on it. He looked around with a sense of panic in his eyes. No other staff was within range. What should he do? He decided to take measures into his own hands and go find the number himself. Left his register all alone and ran - no not a fast walk, an actual sprint - over to the area to find the number for that product. He was huffing and puffing when he returned and a little unnerved that he left his register unattended for a short bit (hence the sprint).

He solved the problem and he is definitely a go-getter, but it wasn't training that helped him, it was instinct. He probably wasn't ready to be alone yet. But how many times do we do that? How often do we give our new staff just enough skills to do the job and then leave them alone and hope they learn the rest on the job?

You cannot leave that kind of training to chance.

Here is how this lesson gets learned in my book Hiring and the Potter's Wheel. (2 chapters - enjoy!)

Chapter 12 Lessons 4, 5 and 6 Centering, Gentleness & Protection
“Kind words can be short and easy to speak but their echoes are truly endless.” – Mother Teresa

“So, how did the conference go?” Mary began.

“Quite ordinary, a bunch of theories using fifty cent words, but nothing that hasn’t already been explored or learned,” Dr. Scott explained. “I’d have rather been in your pottery class. How about you? How was class? Having fun? Learn anything new?”

Mary almost didn’t know where to begin. “The pottery is great. I love it. I think I may have found a new hobby. I can’t thank you enough. And as for business, since we last met, I have learned three distinct lessons.” Mary pulled out some notes she had been taking.

“First, before I can start throwing, I mean training, I have to make sure everyone is centered, that they are starting from the same point. Everyone has to be on the same page. That pretty much goes hand in hand with the earlier lesson of getting out the impurities, the air bubbles. I’ve already developed a clear set of guidelines and expectations, and also a list of bad habits to watch for and weed out, if necessary. But no matter what their previous experience, everyone will start from the same point in their training. That way I’ll be sure not leave anything out.

“Second, once the throwing, oops, I mean training, begins, I have to remember to use a gentle hand, lots of positive encouragement. There’s the old saying, “you get more flies with honey than with vinegar.” The same is true in teaching. The more positive gentle words, the more likely the student will listen and learn.

“That was tough for me, I mean in the pottery. I kept pushing too hard and watching my bowl flop over like it was sick. It reminded me of how I feel when someone yells at me or pushes too hard. Patience and gentleness are definitely the keys. I wrote myself a sticky note on top of my computer to remind me to praise every thing done right during the training to help encourage that behavior.

“But wait, as I think about it, you were never gentle with me, Dr. Scott. You always pushed me hard. You and your, ‘you can do better,’ mantra,” Mary added with a slight sarcastic twinge.

“But did I ever push you too hard?”

“No, I guess not,” Mary replied wistfully.

“You’re absolutely right on this, Mary,” Dr. Scott continued. “Pushing too hard never works. But you have to find the right pressure to get the most out of your clay, and your trainee. If you don’t push at all, nothing gets formed.

“I think you’re getting it. Now what about that third lesson?”

“Well, last night it dawned on me as I placed my bowl in the rack to safely dry, how often do we put newly trained employees into safe positions? Usually, once training is done we throw them to the wolves, so to speak. But wouldn’t it be better if we put them in a safe environment to try out their new skills? If they were in limited roles or carefully supervised, they could safely practice their skills and grow stronger. We know, no matter how well they train, they are going to make mistakes. But this way they can make mistakes under a watchful eye and learn from those mistakes before the errors become costly. That way they’ll be even better when they finally take on their new roles.”

“Kind of how your clay is growing stronger as it hardens?” Dr. Scott asked.

“Exactly!” Mary exclaimed. “Once the training is complete, I’m going to come up with a safe way for my new sales reps to use their skills. But Peter said something curious just as we left. He mentioned that our bowls, although hard, would be quite fragile once dried. I think I’ve got a little more to learn about this step and the steps following.

Mary looked at her watch, “Well, I’ve got to run. Oh, and I’ve got interviews scheduled all next week. Can we meet the following Tuesday?”

“Sure. You know I don’t like to miss any meals,” Dr. Scott said with a chuckle. “See you then.”

Chapter 13 Class #7 Smoothing the Rough Spots
“The soul is placed in the body like a rough diamond, and must be polished, or the luster of it will never appear.” – Daniel Defoe

After a long day of interviews, Mary was exhausted. Only the excitement of seeing her bowl gave her the strength to make it down to the YMCA. All weekend long, when not thinking about work, Mary was decorating her bowl in her head, how she would paint it, what colors to use, etc. But to Mary’s surprise, as she entered the classroom, there were no paints or paintbrushes, only sponges and sandpaper.

Peter sensed Mary’s disappointment. “What’s wrong, Mary?”

“Where are the paints? I thought we’d be decorating our bowls tonight,” Mary inquired.

“Not yet, not yet. Your bowls aren’t ready. Okay everyone, take a seat.

“Before I bring out the rack where your bowls have safely dried and hardened over the weekend, I want to review a few terms. First, since we are making bowls and the shapes are finished, I’ve allowed your clay bodies to dry completely. We call that bone-dry. But in some cases, such as making a water pitcher or any piece of pottery that might have an attachment, we would only allow them to dry about 75 to 80 percent. Does anyone remember what we called that last week?”

“Leather-hard!” shouted out one of the students.

“Very good!” Peter remarked. “The clay is firm enough that it won’t change shape, but wet enough that attachments can be made and will stick. There are different levels of leather-hard, such as soft leather-hard when we trimmed the foot, medium leather-hard, and stiff leather-hard. But since we aren’t doing any advanced designs, now we want it bone-dry.

“But this gives me a chance to plug my advanced pottery class that starts two weeks after this one ends. In that class we will be making more advanced shapes such as a water pitcher and using more advanced techniques including working with leather-hard clays. If you’re having fun and want to continue creating works of art – and believe me, these bowls are well done – you can sign up tonight right after class.

“Okay, tonight we need to prep these bowls for decorating. Before you go to the rack, understand that your bowls are dry and hard, but also fragile. This is one of the dangerous stages in pottery. You will need to handle your bowl gently as it is easy to chip them or even break them in this stage. Everyone pick up your bowl. Now, feel them. Run your hands all over them. Do you feel how rough they are?”

Mary was surprised. The clay had felt so smooth last Wednesday as she shaped it. But now there were rough spots both inside and outside the bowl.

“Not to worry, folks. This is quite normal. Our task today is to smooth out the rough spots. Up here on the table I have masks, sandpaper and sponges to do this job. The masks are for safety. The dust you kick up as you sand your bowl is silica dust and can be harmful. Please wear the masks. Use the sandpaper to gently scrape away any lumps, seams, or other extra pieces of clay. Especially work on the rim of your bowl. As you scrape away the excess, lightly dampen the sponge and wash away any dust that might accumulate.

“If you have any spots that won’t come smooth with the sandpaper, you can use this scraper. I recommend you start with the sandpaper and sponge first. Only use the scraper as a last resort, and be sure to wipe away any and all dust.”

Before you hire your next employee, buy the book. It will make a difference.

-Phil Wrzesinski
http://www.philsforum.com/

PS If you already have the book, download the Hiring & Training Worksheets. They're free!

Two Rules to Follow at Every Staff Meeting

2011-09-07T12:01:00.004-04:00

Even though I have published a manifesto to help business owners and managers plan Staff Meetings Everyone Wants to Attend (free download), I still hear about two common mistakes being made all the time that make staff meetings ineffective at best, and sometimes downright dangerous for your business.

Here are two rules you have to follow even if you do not use the method I prescribe.

Rule #1 Do Not Hold a Bitch Session

It does not matter what might be going on or who is to blame. Bitch sessions only accomplish two things:

Brings down the morale of the staff

Fractures the team

Bitch sessions never solve the problem, never "clear the air", never get to the heart of the matter. Do not buy into those excuses for allowing griping and blaming. Bitch sessions only serve to bring up more negativity and destroy any team unity you might have built.

Instead, if there are issues to resolve, resolve them in private with the involved parties directly, or simply bypass them by stating that no matter how things were handled before, this is how they need to be handled moving forward.

Rule #2 Focus on the Positive

Sure, negative issues need to be addressed. But instead of allowing them to turn into impromptu bitch sessions (see Rule #1), you need to approach them from a positive point of view.

We made a mistake.
Here is what we did.
Here is how we are going to handle it.
Here is how we will avoid this mistake in the future.

Notice how this approach holds everyone including you to blame without singling out that one person? The staff usually knows who that one person is to blame, but you take the focus off that person by making everyone including yourself the culprit. And you take the focus off the negativity by showing how to solve the problem and avoid the problem in the future.

When all is said and done, it really does not matter who made the mistake or who is to blame. All that really matters is that the staff has a positive, we're-all-in-this-together, outlook and a blueprint for avoiding those problems in the future.

-Phil Wrzesinski
www.PhilsForum.com

PS Have a tough topic you need to cover for a staff meeting? Send me an email and we can brainstorm some ways to cover it.

Right, Right, Right

2011-09-03T10:48:00.003-04:00

Just read an interesting article on a discussion board (sorry, don't have the source link) about the new wave in retailing.

Interesting because it talks about how big-box stores are downsizing to meet the needs of the new shoppers.

Interesting because it talks about how today's shoppers (now being called Generation C for their connected, communicative, computer-savvy, community-minded outlook) shops differently than any previous generation.

Interesting because it quotes heavily an inventory management software company that uses a lot of 50-cent words like...

Deploying network inventory strategies that optimize stocking policies and maximize the availability merchandise, reducing stock-outs and eliminating excess inventory, in a forward-looking time-phased methodology combined with guided exceptions, and early warning signals to support root cause analysis.

The bottom line of the article is that today's customer is using her phone, her computer and the Internet to do more research than ever before making purchases. She knows the products, the features, and the general price range.

She will only buy from you if you have the Right product in the Right price range and give her the Right kind of service.

Yeah, not really a new concept to retail. The only difference is that it is easier for customers to know what are the right products and right price range for them. So you have to be as savvy as them.

You have to be following trends in your area closer than before to make sure you have the right products. You have to be paying attention to price far more than you used to (although the Internet makes that easier for you, just as it is easier for her.) You have to be giving far better service than what is found in a typical retailer (and you cannot have an off day.)

The big box stores are in trouble because even with all their computers they cannot accomplish the first thing on that list because they cannot react fast enough when things change. And they never had a chance at Right kind of service. Yet all their focus has been on getting the Right price. They are downsizing because their sales are downsizing. Look at their same-store sales. Down for Wal-Mart, Target, K-Mart, Sears, and Toys R Us.

For the specialty stores, our biggest issue is having the right products, followed by having the right prices. We have to be careful we do not drive ourselves out of the market by dropping a line as soon as it gets discounted somewhere and thereby not having the right goods. Then we have to look at pricing and what we can afford. We don't have to match but we have to be in the range. The one thing we do have Right is the customer service (most of the time:-).

The reason the Internet is having such a huge influence on retail sales lately is because it is accomplishing the first two Rights (product and price) and getting better on the third (service).

Retail hasn't really changed. Customers haven't really changed. If you have the right products to meet their needs at a fair price and you take really good care of them, you'll have plenty of customers coming through your doors. Same as it has always been.

-Phil Wrzesinski
www.PhilsForum.com

PS Sure, you have to work hard to do all those things. But retail has always been that way. Ancient Chinese Proverb says, "To open a shop is easy, to keep it open an art." Roy H. Williams said, "If making a profit were easy, everyone would be doing it."

PPS Before you spend a penny on a software program full of 50-cent words, check out what I have to say for FREE.

Speaker for Hire

2011-09-02T10:38:00.004-04:00

I was sitting next to my Pastor about to give my first ever sermon in front of the congregation and I had an entire butterfly garden enter my stomach.

It was a weird sensation.

I have stood up in front of 150 independent toy store owners - some with far more experience in the industry than me - to give a talk that was totally counter to anything they had ever heard.

I have stood up in a dining hall with 500 kids under the age of ten and got them to not only pay attention but learn a complicated song in under a minute.

I have picked up my guitar in a room full of amazing musicians and led people who had more talent in their left pinkie than I have in my whole body.

Never caused me more than a sickly moth or two.

The truth is, I am one of those people who loves to stand up and talk in front of crowds. Never been an issue or problem. None of those paralyzing fears that so many experience. And I don't even have to picture anyone naked!

So you can imagine my surprise when a kaleidoscope of monarchs went crazy inside me. The hymns had been sung, the readings were done. All eyes were on me.

I stood at the pulpit, took a deep breath, looked around the sanctuary and realized I was back in my element. The garden closed, the monarchs went to sleep and the sermon went off without a hitch.

Some people find speaking to a group to be horribly distressful. For me it is one of my biggest eustresses. I love it. And according to those who have seen me, apparently I'm pretty good at it.

I just received my evaluation from Montcalm County. I gave two talks to a room of about 50 people, some who were coerced into attending. For each talk the Content was rated 4.75 out of 5 and the Delivery got a perfect 5!

At the American Specialty Toy Retailing Association my Pricing for Profit presentation in 2009 received a perfect 5.00 from the 135 people in that room. More importantly, many of those store owners are still thanking me for the info, telling me stories about how it has transformed their business and grown their profits.

Am I bragging? Sure.

But I do it with a point. I have found something at which I excel. It is something that fits my core values (Having Fun, Helping Others). And I want to do more of it.

I just revamped my Speaker for Hire page at www.PhilsForum.com with descriptions of all the talks I have previously given and would be happy to do again.

If you help organize speakers for your association or group, check out my list of topics and see if there is something there that fits. I promise you four things in every business talk I give.

You will smile or laugh at least once

You will learn something that you can apply to your business right away

You will get professional handouts that remind you of everything I taught

I will have the highest rated talk per dollar spent of any speaker you hire

Some people think I must not be very good because I do not charge the same rates as other professional speakers. I understand that. They charge what they charge because that is how they make a living. And they are worth every penny. I am worth just as much, too. But I am not doing this for the money. As cliche as it sounds, I do it for the fun. I do it because I know it will help.

Sure, you can simply download all the pdf's from the Freebies section of my website and get all of my knowledge for free. But it is not quite the same as the live presentation.

Get in touch and tell me your time, date, topic and budget constraints. There is a pretty good chance we can work something out.

-Phil Wrzesinski
www.PhilsForum.com

Laughter and Delight

2011-09-01T13:43:00.005-04:00

Do you remember the last time you laughed while shopping?

Of course you do. Those experiences are memorable. Those moments are what make shopping fun. The store that brings you those memories will easily be your favorite store.

It has to be someone. Might as well be you.

Bob Phibbs just wrote a fantastic post about the importance of laughter in the sales relationship. The more you hire fun, friendly people, the more laughter you will hear on the sales floor. Laughter leads to delight leads to confidence leads to sales.

And it isn't just for retail. Service companies can use laughter and delight to make customers for life. Here is what a dentist friend of mine just did, told in his own words...

My aim is to delight people.

So I did.

I asked a patient how old her older son is and then we got to talking about how long she'd been coming to our practice. I started in 1988; her first appointment was in 1991. So, as of August, it's been 20 years. A wonderful patient, stays healthy, comes in every 6 months, has referred friends to us.

So, I go,"It's our anniversary! Happy Anniversary!"

She and my hygienist laugh, and she says, kinda kidding and without really thinking, "Does that mean I get my teeth whitened for free?"

I said, "You bet!"

And then gave her a hug, and got her scheduled for her whitening, on me.

Do you think she will be talking about him and referring him to ALL of her friends and family? Absolutely! She never dreads going to the dentist because he makes it so wonderful for her.

Engage your customers. Make them smile and laugh. Surprise and delight them. That, my friends, is WOW! Customer Service.

-Phil Wrzesinski
http://www.philsforum.com/

PS Yes, he gave away a free whitening. He did it on a whim and with the only aim being to delight his patient. That is a great example of generosity that will buy him more advertising via word-of-mouth than any advertising he could have bought traditionally. Chalk it up as an advertising expense if you have to, but never be afraid to give it away.

Be Special at Your Specialty

2011-08-31T11:31:00.004-04:00

I was sitting in a new restaurant last night and it dawned on me that sometimes as business owners we get so caught up in cash flow, marketing, inventory management, competition, staff training, worrying about the Internet, etc. that we forget to be special at our specialty.

If you are a toy store you better have absolutely wonderful toys.
If you are a baby store you better have the most sensible or fantastic products available.
If you are a jewelry store you better have sparkle.
If you are a brewpub you better have wonderful beers.
If you are a clothing retailer you better have the right fashions.

Yeah, maybe that goes without saying. But sometimes we get so caught up in the trees that we do not see the forest.

Your customers will not care that a vendor does not have a Minimum Ad Price.
Your customers will not care that the sales rep screwed up the order.
Your customers will not care that you have to pay more in property taxes or income taxes or business taxes.
Your customers will not care that shipping costs have gone up, health care costs have gone up, utilities have gone up.
Your customer will not care that you did everything else right.

Their first and foremost concern is that you are special at your specialty. Make it so and the other stuff is much easier to accomplish or work around.

-Phil Wrzesinski
http://www.philsforum.com/

Is Self-Serve Checkout a Good Option?

2011-08-30T09:16:00.004-04:00

Rick Segal posted a blog talking about the pros of self-serve checkouts. The cost for them is coming down. They never have a lousy attitude. They are cheaper to maintain than paying an employee. Rick even goes so far as to say that all retailers should be utilizing every option that saves them money.

Do you agree?

I don't.

As a specialty independent retailer the one advantage you have over the competition is service. Incredible, over-the-top, WOW service. Sometimes that costs money.

The checkout is the final memory your customer has of your store. It is the takeaway, the lasting image they will have. Are you willing to give that over to a machine?

Sure, I get Rick's premise that a bad attitude at checkout can be harmful. Equally so, an awesome experience at checkout can cement a customer for life. A machine cannot give an awesome experience.

At its best, self-serve checkout is neutral. It didn't piss off the customer. But you and I have had plenty of experiences where self-serve checkout has been less than its best.

My wife has learned not to send me to Kroger. I will not go. I have had such horrible experiences with their scanners that I cannot stand the thought of shopping there. Yet almost every time I have gone the only lane open is self-serve. Apparently other people are complaining, too. Kroger is taking out their self-serve lanes in Texas as an experiment.

Albertson's grocery is also removing their self-serve lanes. They have seen average transactions drop at their stores since they put those lanes in. I would venture to guess it is because people would rather buy less than have to scan so many items themselves.

To give WOW service to your customers you just need to train your cashiers the same way you train your sales staff. Get everyone on the same page with the same goal. Give the customer an experience so wonderful she has to tell her friends.

You cannot get that from a cold, impersonal video screen.

-Phil Wrzesinski
http://www.philsforum.com/

PS I outline exactly how to give WOW Customer Service at the checkout in my free eBook Customer Service: From Weak to WOW!

PPS I hate the Kroger experience so much that I have been begging my local grocery store to carry the three items we eat regularly that we can currently only find at Kroger. I know they can get those items for me. But they don't. Hmmm... Might be another blog post in there.

"No" is Not Acceptable

2011-08-29T14:18:00.004-04:00

"Do you carry this product?"

"No."

End of conversation. End of interaction. End of sale. End of business.

There are millions of products out there. You have 5,000 in your store. The chances are pretty good that your customers will ask you for something you do not have. How your staff answers goes a long way towards your success.

Do they ask why?

"No we don't. What exactly are you looking for in that product? Why do you want that product? What are hoping that product will do for you?"

Do they offer alternatives?

"No we don't but we do have this other product that I actually like better because..."

Do they give explanations?

"No we don't. We used to carry that product but had too many problems and switched to this other brand."

"No we don't. That brand is only mass-produced for large chain stores. Let me show you something of which you probably haven't heard that does the job better."

Do they offer help in finding the item?

"No we don't carry anything like that. Would you like me to call this other store for you to see if they carry anything it or anything similar?"

If you are hiring friendly, helpful, caring people they might already do this just because of who they are. If they are not, then you need to train them that when the customer asks, "Do you have...?" they need to know how to respond.

-Phil Wrzesinski
http://www.philsforum.com/

PS You are probably thinking, "Aren't we all hiring friendly, helpful people?" In theory, yes. But in practice most store owners tell me this is the hardest part of their job. It was for me, too. Until I learned a secret. Quit hiring for experience and start hiring for character traits. You can read all about it in my book Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art. The book is $19.99 plus S&H. Far less than the cost of one more hiring mistake. You should buy it. You can read it in one sitting. Yes, one sitting. It will make a difference.

Growing in a Shrinking Market

2011-08-27T10:35:00.004-04:00

Our market is shrinking.

The 2010 census showed that we have 3200 fewer children in the county than we did in 2000. For four straight years the number of births in the county has dropped from the previous year. Plus, people are spending less on toys than ever before thanks to the economy and the electronics market.

The toy-selling pie has shrunk considerably. (In fact, it is more of a tart than a pie right now.)

Yet, I still have all the same competition. More, if you include the explosion of ecommerce websites. My expenses like utilities, health care, and property taxes continue to go up. And my access to profitable lines of products gets smaller each year as vendors use discounting sites to move their products or choose to sell direct online.

Sounds like a recipe for disaster.

There are three ways to combat this disaster and stay profitable as a company.

Right Size Your Business
Rather than focus on growth, focus on being the right size for your market. Shrink your overhead by moving to a smaller location. Trim the fat out of your staff by letting the poorest performers go and training the remaining staff to do more. Bring some of the outside services like payroll and accounting back in house.

Rather than lament the losses, figure out exactly what the market will bear and what your take of that market should be. Then build your business around that size.

Grab Market Share
When the pie is shrinking, you need to get a bigger piece of it. You do that by hyper-focusing on your strengths. Carry exclusive brands that cannot be found everywhere. Ramp up your customer service beyond any level previously seen in your area. Make your marketing stand out so that it moves people to want to shop with you.

That last one is easier than you think. You can take greater risks with your marketing when your back is against the wall. Go ahead and be remarkable and memorable and moving. What have you got to lose?

Expand Into New Markets
You can do this two ways.

First, consider moving into a different geographical market. Go find a town that is growing or under-served in your category and move or expand your business there. Or add eCommerce to your website and see if you can grow sales all over.

Second, find new complimentary product markets into which you can expand. If you sell toys, can you sell books or hobbies or baby products? If you sell furniture can you sell decor, wallpaper, paints, appliances? If you sell jewelry can you sell scarves, hats, or purses?

Both expansions are tough and can be costly. You'll have new competitors, new costs, new headaches. But when times are tough, you have to be tougher.

If your market is shrinking you can still grow. You just have to do it and measure it differently.

-Phil Wrzesinski
www.PhilsForum.com

PS For the last few years we have focused on grabbing a bigger piece of the pie through better customer service. Right now our market share is over 11% in both toys and baby products. This year we have been right-sizing, too. Next year? Expansion? Yeah, in some way, shape or form. Stay tuned...

How Much Retail Shrinkage Do You Have?

2011-08-26T14:23:00.003-04:00

According to the National Retail Federation, in 2010 Retail Shrinkage rose to 1.58% of all retail sales.

(Note: Retail Shrinkage is the difference between your physical inventory and your "booked" inventory, divided by your total sales)

What is more interesting is to what NRF attributes all that shrinkage.

44% is due to employee theft

33% is due to shoplifting

23% is due to other errors (billing, receiving, cash register, etc.)

Think about that...

Two-thirds of your shrinkage is caused by your staff either intentionally or unintentionally.

Here are some ways to shrink your shrinkage.

Shoplifting
Make sure you greet each customer coming through the doors. Shoplifters love anonymity. Saying hello can sometimes be the best deterrent. Wal-Mart has an amazingly low 0.75% shrinkage and I'm sure those greeters at the front door play a part in that.

The next best thing is to be available. If your staff is always walking the store working with customers then would-be shoplifters have no place to hide. In fact, make sure you design your store so that there are no hidden places. And if you cannot avoid them, visit them often. Just as a policeman on patrol deters crime, an employee on patrol deters shoplifting.

Video cameras are helpful, too, but they come with a couple downsides. As a deterrent, they have to be visible. Would-be shoplifters have to know they are being taped. But that can cause some of your better customers to feel uneasy and not want to shop in your store. Plus there is the added expense of the system. But if you are in a high-crime area or sell a lot of high-ticket items that can be easily pocketed, cameras can be your best investment.

Employee Theft
The three biggest reasons employees might steal...

They are thieves to begin with - you should have done a background check!

They do not feel any ownership of the store.

They are pissed at you and want to get back at you.

Take care of your staff. Empower them to make decisions for the store and they will feel ownership. Reward them for great behavior. Treat them with respect as human beings. Be aware of their time, their needs, their families. When you talk about the staff as "we" instead of "they" your staff will feel like part of the family and most of them will not steal the merchandise.

Errors
Check, double check and triple check.

Check that the order confirmation from the company matches the order you requested and entered into your computer. (You do request order confirmations, don't you?)

Double check that the packing list matches what is in the boxes.

Triple check that the invoice matches what you actually received.

Our shrinkage has averaged about 0.3% for our sixty-two year history. With an inventory as deep as ours, a store as large as ours, and the number of employees we have, we're pretty happy about those numbers. What is your shrinkage?

-Phil Wrzesinski
www.PhilsForum.com

PS For more on keeping your inventory under control, check out my free eBook Inventory Management. Thirty seven businesses downloaded it last week to help improve their cashflow. What do they know that you don't? (Hint: download the book and find out)

What is Your Eustress?

2011-08-23T12:53:00.003-04:00

I learned a new term.

Eustress - (yoo'-stress) A stress that is healthy or fulfilling.

Think of Eustress as the opposite of Distress.

We all have stress in our lives. As store owners, we often take on added stress that outsiders cannot comprehend. But not all stress is the same. Stress falls into those two categories - Eustress and Distress.

The key to your success is to make sure you have enough Eustress on your plate to offset all the Distress.

For instance, I find teaching classes like the Shopping For Baby 101 classes at the store and the New Dad classes at the hospital to be in the Eustress category. I love prepping for them and teaching them. I feel better after they are done.

The same is true with writing this blog, giving talks to other retailers, writing my eBooks and reading business books. Only if those things get in the way of doing my job do they shift over to Distress. But since many of them augment my job, I will keep on doing them.

Distress for me includes meeting with bankers and lawyers, dealing with unhappy customers, and mediating staff disputes.

So I try to make sure I have enough of the one to offset the other.

If ever you have a friend, spouse, mentor or advisor tell you that you have too much on your plate, list all of your stresses and label them as either a Eustress, Distress or Neutral (something that doesn't even feel like a stress and does not move your needle one way or the other.)

Then you will know exactly what to do. Delegate all the Neutrals and drop one or more of the Distresses. Keep all the Eustress that does not get in the way of your job. Your problem will be solved.

-Phil Wrzesinski
www.PhilsForum.com

PS Aahhh... I'm feeling better already:-)

Are You Google?

2011-08-22T12:37:00.003-04:00

Yes you are! (or at least you should be)

Google is a search engine that helps you sort billions of pages of information into the most relevant answers to your question.

Just like a smart salesperson.

Customers now have more information than ever before. They have spec sheets, reviews, pricing, and a whole lot more. In fact, they are overloaded with information, some of which is not as helpful as it could be.

The smart salesperson works like Google to sort that information so that the customer hears only the most relevant and important information needed to make a decision.

Here is how it works.

The smart salesperson starts by developing a relationship with the customer, getting to know her. Then the smart salesperson begins asking questions to find out not just what the customer wants, but why she wants it. The "why" is the search box, the question that sorts the information. From there, the smart salesperson uses his or her product knowledge to find the most relevant reasons why a certain product solves her needs.

To find the why, the smart salesperson pays close attention to the underlying problem needing to be solved.

"I need a new curtain for my son's bedroom. The sunlight in the morning is waking him up too soon." (I need something to make a room completely dark.)

"I need a new TV for the man cave before the playoffs begin." (I need a TV that shows off sporting events superbly.)

"I am looking for a gift for my seven-year old nephew that lives in California." (I need something for a young boy I rarely see because he lives so far away that I can ship easily.)

When you understand the why behind the purchase you are better equipped to answer that why with the product and benefits of that product that are most relevant.

Google is only as good as the info you type into the search box. The salesperson is only as good as his or her ability to find out the why behind the purchase. The smart salesperson, therefore, actively seeks out the why.

-Phil Wrzesinski
www.PhilsForum.com

PS To learn more about the power of WHY check out this TED Talk video by Simon Sinek

Is This Happening In Your Business?

2011-08-20T13:36:00.004-04:00

My friend, Chris, had an interesting experience with a specialty retailer the other day. I'll let him tell you in his own words...

I went for a long bike ride the other day and stopped at a bike shop I'd never been to before to buy a mirror. Asked a question, got an adequate (if cursory) answer, bought the mirror, and left to assemble it in their parking lot.

And as I did I thought: I am a new customer with a new bike, with more gear to buy, and they made ZERO effort to get to know me. No questions about my bike, or where I was going on it, where I was from, nothing.

Yet, I heard a radio ad for them yesterday. ...they will invest money in an ad but will not invest two or three minutes getting to know me. It makes no sense, and speaks to an enormous lack of curiosity, a laziness, that plagues our age.

And here's the thing: they sell commodities. Even their nicest bikes and gear can be found elsewhere, in other shops or online. The only thing they can do to become something more than commodity brokers is, as Seth put it, to be more human.

Why won't they do that?

Chris tried to answer his own question with the thought that maybe they didn't want to put forth the effort for somebody they didn't believe would ever be back in the store. Or maybe they didn't want to put the effort into educating the customer only to have that customer take the info and go online to save a few bucks.

Are our customers training us to give poor customer service for fear if they get good information they might never come back?

My response to Chris was that education is the bond that brings customers back because they will have more questions. If you answer their questions well the first time they will be back the next time.

About 50% of the retail customers in any category shop based on trust first, then price and all that other stuff next. The other 50% shop first on price. And every person has categories where trust is our number one decision maker and categories where price is our number one factor.

People talk about the Internet as being this vast wealth of information. And it is. What people need, however, is a guide to sort through that info and pull out only what is relevant.

In retail that relates to not just knowing your product info (features & benefits) but understanding your customers so well that you consistently find the benefit that makes the most sense to them. That is how you earn their trust.

Sure, some of your customers will be price-first. But some will be trust-first. And you never know which is which. So try to earn trust with ALL of your customers and consider that 50% of them will simply be training fodder to help you be better so that you can win the hearts (and pocketbooks) of the other 50%.

-Phil Wrzesinski
http://www.philsforum.com/

PS To understand more about how Trust and Price play a role in customer buying habits, read this post.

What if They Stay?

2011-08-17T13:12:00.003-04:00

Most retailers know that we have to train our staff. The question is often how much should we invest in this process?

The answer is Everything You Can!

You can have the best product selection in the world at the best prices, but if your staff cannot lead the customer to those products and match the customer to the right product, all you have are full shelves (for which you don't have the money to pay).

You can have the most fun displays and activities in your store, but if your staff is a real downer no one will be having a good time.

You can be the highest-tech, energy-savingest, greenest store on the planet but if your staff is texting their friends instead of greeting the customers, you're still just wasting valuable space and resources.

Your staff is the make-or-break difference in the profitability of your store. They either point customers to products and get out of the way or they create meaningful, lasting relationships that make your customers bring you more customers.

Roy Williams was once asked "But what if I train them so well they leave?" His response was, "What if you don't train them and they stay?"

The fourth quarter is right around the corner. Now is the time to start training, and training, and training, and training.

Rule of thumb... If you can do more training, then you haven't done enough.

-Phil Wrzesinski

http://www.philsforum.com/

PS Don't know how to train? I laid it all out in an easy-to-understand format in the eBook Staff Meetings Everyone Wants to Attend. Be sure to also download the one-page worksheet I use for planning fun, informative and effective meetings.

PPS Don't know what to train? Check out my latest eBook Customer Service: From Weak to WOW! If that doesn't at least spur on some interesting conversations, I'll be surprised.

Four Steps to a Killer Radio Ad Campaign

2011-08-16T12:38:00.003-04:00

You've tried radio advertising. Bought some package the sale rep offered. Ran a few ads that sounded "professional" and got little return out of it.

That's because you didn't do it my way.*

Here are the four steps to running a Killer radio ad campaign.

Figure out your core values.

Pick one core value that will have the deepest connection with your customers (and one that your competitors most likely don't have).

Write a killer emotional ad that touches on that core value.

Keep the ad running changing only the copy, not the core value, now through Christmas.

Core Values
These are the values both you and your business hold dear. Values that you will never change. Values so strong that you would rather close up shop than change them.

My store's core values are Fun, Helpful, Educational, and Nostalgic. Ask me to drop any of those and it is a deal killer. If you are struggling to figure out your core values, download my free eBook Understanding Your Brand and the accompanying worksheets.

Deep Connection
Believe it or not but it isn't income, education or marital status that drives loyal customers into your store. Your best customers are there because they share the same values or belief system that you do. Those shared values are the bond between you.

The deeper that connection, the stronger the bond.

When you pick a value to use for your marketing, either pick the one that is the most emotional or the one that is least likely to be found in your competitors.

For example, as a toy store, one of my values is Fun. But all of my competitors also have some claim on the concept of Fun because we all sell toys. Nostalgia, however, runs much deeper and more emotional. Education is a missing component in the big box competitors, and Helpful has never been their strong suit either. So I tend to focus on those values in my ads.

Killer Emotional Ads
Remember that the goal of your ad is to move someone to action. That someone is the person who shares your values. Write an ad directly at her heart. Speak to her and only to her. Speak about her values and how you understand them. Speak to her concerns, needs, and beliefs.

Forget about everyone else who might be hearing your ad and just write it to that one person. You will be amazed at how many of those "one persons" there are out there.

Killer emotional ads do not sound like any other ad on the radio. That is good! No one likes ads so we tune out anything that remotely sounds like an ad. Here is an example of a killer emotional ad...

He left Detroit 9am Christmas Eve... Someone somewhere had to have the one toy his sweet little six-year old wanted. Six cities…seven stores later, he stood, travel-weary, across the counter from me. “I suppose you don’t have any Simon games either.” As I handed over the last of our Simon games he smiled and said, “God Bless You!” Believe me, He already has. Merry Christmas from the Toy House in downtown Jackson. We’re here to make you smile.

Keep it Going
Radio advertising is not a sprint. It is a long distance run. If you want this campaign to give you great fourth quarter results, you have to start running now.

At the same time, radio ads can get boring really quickly. One superbly written, emotionally-driven, killer ad can turn boring in only a matter of weeks. So you have to write a whole bunch of ads all around the same value. Figure out how to say the same thing five different ways and you have the makings of a killer campaign.

There are eighteen weeks until Christmas. Five ads all about your strongest core value running three to four weeks each will connect you powerfully to your best customers and get them to choose you over your competitors this fall.

Killer.

-Phil Wrzesinski
www.PhilsForum.com

*PS My way is really Roy's way, as in Roy H. Williams, aka The Wizard of Ads. He taught me. I did it. I saw the results.

PPS For more on how to use radio the right way, check out this post I wrote in 2009.

Are Your Reps Coming to You for Training?

2011-08-10T15:40:00.003-04:00

Favorite phone call. A rep just picked up a new line of products. He knows we sell them. He calls me to set up a time to have us show him the line.

He knows he will learn more about how to sell the line to other stores by talking to me than by going to the company. He knows this because he will learn from me why we bought it in the first place. And he knows that the reasons I bought it are the same reasons he will need to use to get other stores to buy it.

Two quick lessons in that paragraph.

First, we can do the same. Ask your best customers why they bought what they bought. The reasoning they use will give you incredible insight into the reasoning you should use to sell your products. Now you are thinking like the customer will think and selling to her needs, not to yours.

Second, are you that important to your sales rep?

My reps are my lifeblood, at least my great reps are. They make sure I get the right products and steer me clear of the wrong ones. They never try to oversell me. They never push me into products they know won't work for me or my market. And I have a lot of great reps!

But I had a hand in making them great reps by cultivating a relationship where they gain as much from it as I do. For many of my reps, we are nowhere near their top account monetarily, but because we bring more than just dollar-value to the table, we get their very best in return.

You can do that, too. Treat your rep like an extension of your family. Make the relationship beneficial to both of you. The return on that investment will often end up in your favor.

-Phil Wrzesinski
www.PhilsForum.com

PS The principals to building relationships with your sales reps is the same as building relationships with your customers. Treat 'em like your new best friends. Share with them. A quote I use in my Customer Service live presentation is "Your customers will get better when you do." The same applies to your sales reps.

Two Books My Staff Read

2011-08-08T10:31:00.002-04:00

I gave my staff an assignment. Read some of the books I have read and give a presentation to the staff. At today's meeting we had the first two presentations.

Lakisha spoke about the book Poke the Box by Seth Godin (not an affiliate link - I don't have any of those).

She liked the concept of just initiating something, not being afraid to fail. We have had a couple instances of that recently when Carrie initiated our Birthday Club and Nate created better signage for our JTV Toys of the Week.

The one big lesson from Poke the Box is to always try new things. Not all will work, but if you poke the box and see why it isn't working you can tweak it and make it work. But if you do not initiate anything, nothing ever gets done or improved.

Darlene had a harder assignment - one of my favorite books - Free the Beagle by Roy H. Williams.

This book is an allegorical story about a Lawyer and his beagle that must take a journey. The story is fairly simple and might remind you of The Wizard of Oz. What is impressive is the layers of learning Mr. Williams has woven into the story. On just one level the lawyer represents our logical left brain while the beagle represents our more creative right brain. There are nine other levels of understanding in the book (and I've only uncovered about six).

My favorite part of the book is the discussion that was recorded afterward. Mr. Williams invited a number of people from different backgrounds to give their takes on the book. Their insight is so fascinating that it alone is well worth the cost of admission.

Free the Beagle is great for anyone at a crossroads, anyone who believes they might be on a journey to bigger and better things, or anyone who feels stuck.

This is just one way I empower my staff to grow. I cannot pay them millions of dollars. I cannot offer them cushy benefits. But I can help them on their own journeys in life, help them grow into better people.

You can do the same for your staff. In fact, you should. For all they do for you, you owe it to them.

Some people say, "Yeah, but what if I train them and help them grow and they leave." Roy Williams replied, "What if you don't train them and they stay?"

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, my staff meetings are a little unconventional. I once served ice cream for an 8:30am meeting. The meetings are also memorable. Yours can be, too. Download the FREE eBook Staff Meetings Everyone Wants to Attend and the accompanying Worksheet and start planning meetings that get the results you want.

Complete, Compliment, and Suggest

2011-08-05T19:14:00.002-04:00

Closing a sale is a lot easier than all the books make it out to be.

It starts with asking a whole bunch of questions before you make the sale to make sure the product you recommend is the perfect fit (or at least really good).

And it ends with three simple tasks - Complete, Compliment and Suggest

Complete the Sale
"Ya want fries with that?" Although that has become the iconic symbol of poor add-on sales technique, the premise behind it is dead-on. You need to make sure that with every purchase the customer has everything she needs to complete the purchase.

If she is buying a blouse, does she need a sweater, jacket, pants, skirt, shawl, necklace to complete the look?

If she is buying a toy for her child does she need batteries, accessories, a play mat?

If she is buying a necklace does she need the bracelet, watch and earrings to complete the set?

If she is buying a new grill for the deck does she need grilling tools, a grilling cookbook, a conversion to natural gas kit, delivery and installation?

It isn't just the obvious, either. Look at the whole picture. Why is she buying this item? Who is it for? What else will they need? Make sure you have shown all the possible items needed to make the sale complete so that she will not have to make another trip to the store later (which will not be to your store because she's mad about not having everything she needs.)

Compliment Her Purchases
This may seem weird, but if you have done your job and helped her pick the perfect item, you need to then compliment her on her selection. It reassures her that she is making the right purchase. It helps her feel better about buying, and it opens the door for more relationship-building conversation.

Tell her why she will be happy with the item. Remind her why you believe it is a good fit to her needs. It is even okay to point out the flaws, if only to let her know that while not perfect, it is still a good fit. If you have used the product, tell her why you like it or why other customers who have purchased it have liked it. Be honest, though. She will smell a phony compliment instantly.

(Note: if you cannot sincerely compliment her on the purchase then you did not get her the right item. Sometimes you win in the long run when you simply say you are sorry but you do not have what she really needs. Show her something you know she will be happy to own.)

Suggest Better Ways to Use Her Purchase
One more way to make her feel good about what she is choosing to buy is to give her tips and suggestions that make the use of her new product easier.

We use this with strollers by showing customers how to clean the wheels, why to use a silicone lubricant rather than WD-40 (silicone is better for plastics than WD-40). Not only do we arm her with more product knowledge, we also eliminate the unhappy customer coming back because the wheels squeak. She knew they would eventually squeak and knew how to solve that problem.

If you Complete, Compliment and Suggest you will give your customer the ultimate confidence in her purchase and the same confidence in your store. Not only will you close this sale, you will have already begun closing future sales. Yeah, it is that WOWerful!

-Phil Wrzesinski
www.PhilsForum.com

PS For more examples of how to WOW your customers, download my FREE eBook Customer Service: From Weak to WOW!

What Gets Measured?

2011-08-03T09:36:00.006-04:00

We had a meeting of downtown business leaders to share our "one big thing", that one nugget of truth that helps us be successful. Local businessman Bob Smith said...

"You can't manage what you don't measure."

Frances Schagen, who helped me with the eBook Reading Your Financial Statement, had a more positive spin on the same message...

"What gets measured gets done."

What are you measuring?

I looked at my web stats for http://www.philsforum.com/ to see from where I got my traffic, to see which documents were downloaded, to see which eBooks were most popular this week.

I was surprised that my newest eBook - Customer Service: From Weak to WOW! - was only fourth on the list of eBooks downloaded for the week. Apparently more people were interested in Inventory Management, Staff Meetings Everyone Wants to Attend, and Understanding Your Brand.

Usually when I announce a new eBook, it dominates the downloads for the first week.

Now I need to read into the tea leaves from this data and decide one of three things:

People are not interested in the new eBook on customer service.

People are not aware of the new eBook on customer service.

The other eBooks are more important to my readers than customer service.

Since I track these numbers regularly, I have some understanding that the Inventory Management downloads this week have been unusually high. This is a good thing. I also know that the Customer Service: From Weak to WOW! downloads have been weaker than a typical launch.

But previous posts on Customer Service have been some of my most popular posts (I know this because I measured it.) Therefore, the most likely answer to why the new eBook was not tops in downloads is a combination of #2 and #3.

Which means that my message in the launch of the eBook needs to be tweaked...

I just wrote a new eBook that you can download for FREE that will help you raise the bar of your customer service so high your competition will not even be in the conversation!

It is called Customer Service: From Weak to WOW! and although you will hate me for some of the things I have written, and you will dismiss some of my advice out of your own denial, you will be thankful you downloaded it and shared it with your staff. More importantly, your customers will be thankful when you quit giving lip service to customer service and start WOWing your customers.

At only four pages, how can it be that good?

Download it and see for yourself. It's FREE!

-Phil Wrzesinski
http://www.philsforum.com/

PS Why do I give away so much for FREE? I want you to succeed. Period. That brings me lots of joy. Plus, I know that if you find it useful you'll reprint it, re-tweet it, share it with others. Then even more of us independent retailers will see success. My goal is to raise the water level for all boats, even if I have to do it one harbor at a time.

PPS Of course, my other favorite thing is when I get hired to speak to groups of retailers. Giving information away like I do gets my name out there and helps establish me as an expert. The more you share what I say and the more you help me spread that influence, the more likely I get those opportunities. Thanks!

The Magnetic Principle

2011-08-02T12:50:00.005-04:00

The power of a magnet to attract is in equal proportion to its power to repel.

That is a universal truth about attraction.

We hear with magnets that opposites attract because the positive pole of one magnet attaches to the negative pole of another. But in reality alignment attracts. For two magnets to hook to each other, they both have to be in the same alignment - heading in the same direction.

The same is true with batteries. Put two batteries into your flashlight facing different directions and the flashlight will not work. But put the batteries in alignment with each other and the light comes on.

The same is true with your advertising. When you clearly state your values, those who are aligned with your values will be attracted. Those who are not aligned with your values will be repelled. Just like the magnet, the stronger you state your values, the stronger the attraction and repulsion.

The problem with most advertising, however, is that we focus on the repulsion.

"I don't want to anger anyone."
"I don't want to be controversial."
"I don't want anyone to hate me."

And we write bland ads that will not offend.
And we wonder why we did not attract new customers to our store.
And we think that maybe we are not reaching the right people.
And we change our medium, but not our bland, white-bread, non-offensive, un-attractive message.

And we get the same results.

Focus your advertising message to attract, not to keep from repelling. Say something powerful enough to move the needle for someone. Roy H. Williams, aka The Wizard of Ads says that if your ad does not get complaints, you have not written a strong enough ad.

Say something powerful and meaningful that aligns strongly with your core values. Do not be afraid to make bold statements. In my current radio ad I start with the line...

"Shop here. Your kids will be smarter..."

The ad started yesterday and I had my first complaint by 9:00am that morning. I also had three people praise me for my ad. If they are complaining or praising, then they are listening.

Be the most powerful attractor you can by making bold, powerful statements aligned with your core values. Then you will get the return on your advertising investment you want.

-Phil Wrzesinski
http://www.philsforum.com/

PS The whole radio ad copy reads as follows... Shop here. Your kids will be smarter. Oh sure, that’s a bold statement to make, but I know it’s true. Need proof? Which is a better method for selling a toy? Because it’s tied to a movie or TV ad or because it has incredible play value requiring brain-stretching imagination? My competitors? They use the former method. I use the latter. Brain-stretching toys guaranteed to make your kids smarter and have more fun. Toy House in downtown Jackson. Smart kids, lots of smiles.

PSS If you need help figuring out your Core Values, download my FREE eBook Understanding Your Brand and the accompanying worksheet. Work it through and email me if you have questions.

Customer Service: From Weak to WOW!

2011-07-29T13:28:00.002-04:00

Every business thinks they offer great customer service. Yet every one of you reading this has experienced lousy customer service, probably within the last week!

I think the problem is that we don't have a definitive guide of what great customer service looks like.

Until now...

I also think great customer service isn't enough. Just being great merely gets you a thanks from the customer (if that). It doesn't move the needle towards referrals or word-of-mouth advertising. It doesn't grow your business.

You give great customer service. She says Thanks. Transaction over.

We need to WOW her to get her to talk and get her to bring others to our store.

Check out my new eBook, Customer Service: From Weak to WOW! Like all of my eBooks, this download is FREE. The eBook takes you through 8 different interactions a customer has with your store and ranks the type of service she gets from Weak to WOW! so that you can see where you fit on the scale and where you need to improve.

Customer service in this country has been devalued because it has been so weak. We need to reverse that trend. Please download the eBook. Share it with your staff. Share it with your fellow business owners. Share it with your Chamber of Commerce, your DDA, your Shop Local program.

If we collectively raise the bar on what WOW customer service looks like, we make customer service an important element in the shopping equation once again.

-Phil Wrzesinski
www.PhilsForum.com

PS If you would like me to come to your town to do a one-hour presentation on this topic (or any other topic), send me an email. While I think the info looks good on paper, those who have seen the live presentation will tell you it is much more powerful in person.

Three Keys to Remember About Advertising

2011-07-26T12:45:00.003-04:00

As business owners we are often the worst judges for determining what to do with our advertising.

We're bad because we don't act like the typical consumer. We see ads that most people would miss because we are an advertiser. So all advertisements are relevant to us, ads that would not be relevant to the average consumer. And we read them more carefully, so we know them better than most.

Then we make advertising decisions like where to place the next ad based on what we do and see, not what our customers do.

So if you are debating where to place your next advertisement or what to say, remember these three things about advertising.

First: You cannot reach all of the people. No matter what you do, no matter how much you spend, there will always be some perfect customers for your business that never heard or saw your advertisement.

Second: That is okay because chances are they will know someone who has heard or seen your ad.

Third: Therefore, the most important thing is for you to impact the people you do reach well enough to make them want to tell somebody else about you.

Picking your medium is now easy.

Choose a medium in which you can create a compelling ad, one with a strong emotional connection to your potential customers.
Choose a medium where you can get your potential customer's attention and move her into action.
Choose a medium where you can tap into her powerful right brain, the side that deals with emotions and actions.
Choose a medium where you can paint a mental image so she sees herself doing exactly the behavior you want her to do.
Choose a medium where you can make a point that is relevant to her lifestyle and choices.
Choose a medium where you can afford to reach her often enough on a continual basis until she has no choice but to think of you first when she is ready for your product.

Personally, I like radio for that purpose. But that's because I learned how to write radio ads. An awesome graphic designer might have a different opinion.

No matter which medium you choose, the most important thing is to craft a powerful, emotional message that causes her to act. Anything else is just a waste of your time and money.

-Phil Wrzesinski
www.PhilsForum.com

PS The quickest, easiest way to come up with a powerful, memorable, emotional message is to unlock your Core Values. Read more in my free eBook Understanding Your Brand. Then download the Branding Worksheet and get your advertising doing what you are paying it to do.

Design for the Many, Not for the One

2011-07-22T17:14:00.003-04:00

Too often we design policies for the wrong reason. We design them because somebody tried to take advantage of us. And in the process we restrict the many to protect us from the one.

Yet, no matter where we draw the line, there is still someone out there who will try to skirt around the edges and push past our boundaries. It never fails. Draw a line in the sand and someone will dare to cross it.

Solution?

Quit drawing lines in the sand.

For instance...

We offer layaway. Most stores that have layaway have fairly strict limitations. K-Mart's policy was 25% down, 25% in 15 days, paid off and taken home in 30 days. Period.

We offer a 6-month layaway with only 10% down and one payment of any size per month. And we are pretty lax in enforcing it.

Now ours may seem like a more generous policy, but the truth is, the vast majority of our layaway customers use it less than 30 days and would fit easily into K-Mart's model. In fact, only a small handful of layaways each year pass the 60 day mark, and maybe one per year hits 6 months.

But by offering 6 months, I look so much more generous and customer-friendly than K-Mart.

Here's another example...

We just launched our Birthday Club. The postcard $10 gift certificate we send out has NO expiration date. Some stores give you only 14 days to come in. They want the gift certificate used right away or it expires.

They are afraid that someone will hold their birthday gift certificate and not use it until Christmas or some other time.

But how many kids are really going to do that? And even if they did, wouldn't that be encouraging that the kids were learning how to save?

The reality is that the vast majority will be in right away to spend that $10 gift certificate. Only a small handful will not - regardless of the expiration date. And those who come in after 14 days will be pretty upset with you for not honoring it 4 weeks later.

Is it worth ticking them off? No.

Once again, our policy looks more generous and customer-friendly than the other, although both get roughly the same results.

The key here is to draw up your policies to allow for those customers who push the boundaries to push all they want. The vast majority won't push. Make your policies look generous and in the favor of your customers. You give the appearance that you are putting the customers' needs ahead of your own.

Sure, someone will try to take advantage of you. Someone always tries to take advantage of you. But the vast majority of your customers will not.

Look at all of your policies and see where you can make them more generous. The vast majority of your customers will still comply with what you expect, and you eliminate the nasty confrontations with the one or two customers who try to push beyond your boundaries.

-Phil Wrzesinski
www.PhilsForum.com

PS My newest eBook "Customer Service: From Weak to WOW!" will be coming out next week. Look for an annoucement soon.

Don't Marry Your Inventory

2011-07-21T16:20:00.003-04:00

Marry your spouse. Develop a long-lasting relationship built on love, trust, fun, and shared interests.

But don't ever marry your inventory.

Your inventory shouldn't be around for long. It is simply an affair designed to bring you some short-term enjoyment (profit). If it overstays its welcome, you both suffer.

Oh, sure, when you first get your inventory it is exciting and new. There is an infatuation. And people tell you how great your inventory looks with you.

But if it stays around, it starts to look old and tired, and so do you. Be heartless. Kick it to the curb and get something newer and younger and fresher.

(Note: this is the only situation for which I'll give you this advice, so use it for what it's worth:-)

-Phil Wrzesinski
www.PhilsForum.com

PS Yeah, a lot on Inventory Management this week. That's what happens when I'm divorcing my inventory in our Summer Fun Sale.

Discounts or Dating, Which is Better?

2011-07-20T15:24:00.003-04:00

The first question out of every retailer's mouth at the trade show is, "What's the Show Special?"

The vendor responds with some incentive such as Free Freight, a percentage discount, or extended credit (net 60 instead of net 30 days for instance) if the order is large enough.

If given the choice, which should you choose?

Your Choice
Most retailers jump on the Free Freight. And they would be smart. With shipping costs the way they are, freight bills run from 12% to 20% the cost of the goods. That's a major savings.

Most retailers, though, ignore the extended dating. It is hard to quantify what an extra 30 days to pay actually saves.

Unless, like me, you've done the math.

Doing the Math
Extending your payment terms from Net 30 to Net 60, in terms of cash flow, is the equivalent of a 15% discount. In other words, it's just as good for your cash flow as Free Freight, and far better for your cash flow than a 3% or 5% discount.

The key lies in the phrase for your cash flow.

If you are under a cash flow crunch, you should look at trying to extend your payment terms in lieu of any discounts under 12%. It will help you out far more than the 2-3% or 5% or even 10% discounts offered.

But if your cash flow is already strong, take the discounts. The one shortfall of extended dating is that it does nothing for the bottom line. Freight is an expense so Free Freight decreases your expenses. Discounts lower your Cost of Goods Sold. Extended dating merely helps cash flow.

Discounts or Dating?

If you need cash flow, choose the extended dating.

If you need profit, choose the discounts.

If you can get Free Freight (which helps both) take it

But never, ever, ever buy something you don't want just to qualify for the incentive. Never. Okay?

-Phil Wrzesinski
www.PhilsForum.com

PS Need more help with your inventory management? Download my free eBook Inventory Management

Who's Training You?

2011-07-19T15:26:00.003-04:00

I talk a lot about the importance of training your staff. But who's training you?

Oh, don't get me wrong. I'm honored that you're here reading this post. That's a fabulous start. What else are you reading? Other blogs? Books?

Are you attending any conferences? Sitting in on any workshops? Listening to any podcasts or webinars?

Are you visiting other stores and seeing how they do things?

Here is one of my favorite ways to learn... Teach!

You can't teach what you don't know, so agree to teach something. Then you'll be forced to learn it. That's what I did to write my free eBook Reading Your Financial Statements. I took a topic that was tough for me and forced myself to learn it. Talked to accountants. Talked to other retailers. Read articles. Got professional opinions. Wrote a rough draft. Took the criticism like a man. Re-wrote it. And learned.

How do you get the chance to teach something? Simple. Ask.

Ask your local chamber if they are looking for an presenters for upcoming workshops or academies. Offer to speak to philanthropy groups like Lions Club or Rotary. Talk to your shop local group about doing a training.

Don't worry if you don't think you know enough. First, you know a lot more than you think. Second, once you book it, you'll do what you need to do to learn the rest, and you'll be all the smarter for it.

Your staff will model what you do. If you keep learning, so will they.

-Phil Wrzesinski
www.PhilsForum.com

PS If you would like a suggestion or two for good books to read, send me an email. Tell me the subject and what you hope to learn. Chances are there is a book I've read or one on my to-read list that will fit the bill.

PPS For our last staff meeting I put a dozen or so of my favorite business books on a table, gave a quick synopsis of each book and offered the staff 3 bonus hours if they do an oral presentation on the book at the next staff meeting. You would have been amazed how many grabbed a book.

Building Your Customer Email List - Stolen Idea Made Better

2011-07-15T19:35:00.003-04:00

I stole this idea from George Whalin.

To build your customer email database, put a fishbowl on your counter with a sign-up for your email and offer a drawing for a $25 gift certificate each month for anyone who signs up that month.

Works like a charm.

I shared this idea with some of my toy store owner friends. Tracey Harding of Kidz Enterprise in Tyngsboro, MA took it one step smarter.

She posted that the winner would be announced in her monthly email.

Guess what her open rate is?

Yeah, a lot higher than yours and mine.

Thanks, Tracey!

-Phil Wrzesinski
www.PhilsForum.com

PS Follow this link for some words of wisdom I wrote on how to make an email newsletter campaign work for you. I wrote it in 2009 and the principles haven't changed.

Get Rid of Your Dogs

2011-07-13T14:33:00.006-04:00

What if you bought this shiny new crib for your store. It measures 62" wide and 35" deep. It takes up 15 square feet of your store.

What if six months after you bought it, you still hadn't sold it?

One calculation some stores use to see how healthy their sales are is Sales per Square Foot. Take your total annual sales and divide it by square footage of selling space to find out your Sales per Square Foot.

Now you know how much business you should be doing for those 15 square feet.

But if you haven't sold a single crib, where are you? You're in the hole. You're out whatever it cost to bring that crib in. You are in negative numbers.

Not only have you not made any money, you've lost money on that space.

And chances are, since no one wanted that crib in the last six months, just taking 10% off the price isn't going to move it any faster.

The best move is to mark it at cost and sell it quickly. Get it out of there. Get back to zero for your 15 square feet. Then you have six more months to try something else in that space that will make you money.

Hey, we all make bad buying decisions, dogs that just won't hunt. That's part of the retail game. But a worse decision is not getting rid of the dogs soon enough.

Make sense?

-Phil Wrzesinski
www.PhilsForum.com

PS If you want to know more about managing your inventory including the two formulas every retailer should know and track, download my FREE eBook on Inventory Management.

PPS Follow this link for my post on the best way to make your dogs bark.

PPPS Check with your industry to see if there are standards for what your Sales per Square Foot should be. But understand that every store is different. The bigger your store, the more of your space might be used for extra cash registers or wide aisles for shopping carts, thus lowering your numbers.

Customers Can Be Frustrating

2011-07-11T09:54:00.003-04:00

She loves to tell you how your prices are high, how she can get everything cheaper somewhere else. She does everything but call you a price gouger and cheat to your face.

You feel your blood pressure start to rise. You know she doesn't know the truth.

She doesn't know that you check prices at your competitors a couple times a month so you know you are at the right price.
She doesn't know that 70% of your product mix isn't even available in any of your local competitors.
She doesn't know that all those 40% OFF signs she saw in the other store were off some inflated price no one would ever spend on that product.
She doesn't know that your competitor bullied the vendor into a better deal on that product.
She doesn't know that you pay more for your staff, pay more for your property, pay more in taxes, and offer more services than your competitor.
She doesn't know the research you did into finding the best products that make the most sense (unlike your competitors that only research which products make the most dollars).

And frankly, she doesn't care about most of that.

She is a Transactional Customer who is driven by one fear - paying too much.

She will drive to four or five stores (well, maybe three or four with these gas prices) to find the best deals, oblivious to the costs of time and gas.
She will do all the research she can to find the best deal.
She will only buy from you the stuff that offers her the best savings.
She loves watching Extreme Couponing.

She will not make you profitable in the long run.

Treat her well. You treat everyone well, don't you? But don't lose a minute of sleep over her comments or attitude.

For every one of her there is a Relational Customer who wants the expertise you have, who wants the knowledge you share, the services you offer.

As frustrating as the former can be, the latter is why we are independent retailers.

They are the customers who bring us the most joy because they get all that stuff above.
They know we want to steer them into the products that make the most sense.
They know we offer competitive prices, convenient services, and expert advice.
They understand the impact of shopping local.

You can't win them all. And some customers you'll never win. So don't fret the losses. Just celebrate the victories and move on.

-Phil Wrzesinski
www.PhilsForum.com

PS I learned about Transactional and Relational Customers from Roy H. Williams, aka The Wizard of Ads. Want your socks blown off? Sign up for any one of his programs. Want to know more about Transactional & Relational Customers? Download his free eBook.

I Couldn't Have Said it Better

2011-07-08T17:54:00.003-04:00

I stole this...

Bob Phibbs wrote this on his blog yesterday and it is worth repeating.

So many “retail brand experts” and C-level executives have bought into the belief “our customers just want to get in and get out.”

Do you know why?

Because their customer experience sucks wind, blows chunks, is one step up from the necessary evil of a root canal by a guy in a clown mask.

Your store will not succeed if you take this approach. The one true advantage every independent store holds over the big box discounters, the vast majority of chain stores, and the Internet is the Customer Experience.

You can give your customers an experience like none other.
You can make customers have so much fun they do not want to leave your store.
You can make customers so happy they have no choice but to tell others about you.

In fact, you have to do those things. You and me both. That's our calling card.

Thanks, Bob, for the reminder! (If you're not following Bob's blog like I am, you should! You can find the link in my sidebar.)

-Phil Wrzesinski
www.PhilsForum.com

PS It starts with you and your attitude. And it continues with the type of employees you hire. If you don't get the right raw ingredients in your frontline staff, no amount of training will make them better.
PPS (Not sure what I mean by "raw ingredients"? You need to read the book Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art. It will change the way you do your hiring and training forever.)

What if the Coach is Wrong?

2011-07-04T23:34:00.003-04:00

Everyone knows in sports you do not question the coach.

The coach says.. You do...

Everyone has to be on the same page for the team to be successful.

But what if the coach is wrong?

Every season someone ends up in last place. Someone is the biggest loser. Even though the team did everything the coach asked. Either the team didn't have the talent or the coach was wrong.

But in sports, unlike retail, if you're the biggest loser this year, that's okay. Next season you start 0-0. In retail, if you go 0-16 this year you start next year in a deep hole. There is no reset.

Two quick lessons from this...

1) If you're the coach, you better be right. You better have done your homework, planned for all contingencies and plotted a fabulous course. Then all you need to do is get the team to buy in.

2) If you have a coach and you know the coach is wrong you have to decide. Do you try to change the coach's mind or simply do the right thing?

Yes, I do advocate mutiny. If your coach is obviously leading you into last place, you need to do what you can to change that, even if it means subordinating the coach.

There is no reset in retail. You carry over your wins and your losses from last year into this year. The bank and your customers will remember and judge you on your previous season.

When the coach is right, all is good. But when the coach is wrong...

-Phil Wrzesinski
www.PhilsForum.com

PS Before you choose mutiny, however, you have to understand. Following a coach into last or subordinating the coach are both going to lead to struggles. But as long as you're playing to win, at least you have that to fall back on. And if you don't know where your coach is leading you or why, you need to ask first. They may have a vision they just haven't explained well.

How Many Customers Can You Afford to Anger?

2011-07-02T13:12:00.005-04:00

I've been following a handful of private conversations in my industries about how to treat customers who really aren't our customers.

You know these people.

Bleeding You Blind
They find every loophole to get the most out of every transaction with you. They rarely shop at your store unless there is a discount or special going on. They always want more, trying to squeeze every penny out of your turnip. Rarely do you even know their names because they never come in until they need a donation or want to complain. They always want to use a coupon after it has expired, get a discount because the corner of the box is crushed, or complain about how they are a regular shopper at your store (even though no one on the staff has ever seen them) and should get a better deal.

These customers cost you money. They bleed your profit margins, take up your staff's time, and keep you away from more profitable customers. They frustrate and anger you and bring down the entire store's morale.

Best Buy took the approach years ago to fire these customers, send them to Circuit City.

What do you do?

Better yet, what should you do? Can you really afford to anger somebody in this economy? Are you big enough to take a PR hit because you wouldn't put up with an unreasonable customer?

What I Do
I'm not Best Buy. I don't believe I have the capital to purposefully anger any customers - even the customers I don't like. Oh, I've done it a couple times. We all have. But more often than not I look at it this way... I get to choose whether I am nice to someone or not. And it doesn't matter whether they are nice to me.

If I let someone use a coupon after it has expired, I am showing generosity.

If I give an extra discount because an item is crushed or the customer makes a fuss, I am being compassionate.

If I allow a customer to return an unopened item 10 months later, I am being helpful.

If I apologize to a customer for our failings even when she made the mistake, I am being understanding.

Generous, Compassionate, Helpful, Understanding. Yeah, I'd like to own those words in my customers' eyes. Wouldn't you?

The essence of Branding is simply...

Every single interaction a customer has with your business plus how they feel about it.

You cannot always control the interactions, but you can control the feelings by how you treat others. And don't ever believe that your best customers are not watching. Fair or not, they will measure you not at your best, but at your worst.

So make your worst pretty darn good by treating even your worst customers pretty darn good. You might just turn one of them into your best customer.

-Phil Wrzesinski
http://www.philsforum.com/

PS Even if you do have to fire a customer, do it with kindness and respect. At the end of the day the one thing you always have left is your character.

Another Basic to Wow Example

2011-06-30T10:10:00.004-04:00

I got a couple emails asking for more examples of Basic to Wow customer service against which you can measure your own business.

Here's one for the simple act of greeting a customer at the front door...

Basic Customer Service: Look up from your station and say "Hello" to everyone who walks through the door.

Good Customer Service: Spice it up with a hearty welcome (and actually mean it).

Great Customer Service: Get out from behind the cashwrap. Greet the customer by name. Speak to their kids.

WOW Customer Service: Hold open the door (especially for people pushing strollers or wheel chairs). Offer to hang up their coats. Greet them like a friend. Chat casually with them, not about why they are there but what's up in their lives. Ask about the previous purchases they have made (what do you mean you don't know?). Customers love to know they have been recognized and remembered. Give them all the time they need to decompress and feel comfortable before getting to the business at hand.

Exceeding customer expectations is your goal. That's what makes people talk positively about you. Simply meet their expectations and at best you'll get a "Thanks". But when you go way beyond what they expect, they'll tell their friends about you.

WOW Customer Service exceeds their expectations every time. It is as much an attitude as a skill.

-Phil Wrzesinski
www.PhilsForum.com

PS If your staff doesn't already have that attitude there are only two reasons. Either you aren't modeling and teaching it, or they just don't have it in them. More often than not it's the former. But don't be afraid to cut loose those who don't have it in them.

Everyone Thinks They Have It

2011-06-27T23:31:00.002-04:00

Every store thinks they have Great Customer Service. Even Wally World thinks a greeter at the door qualifies them for the customer service hall-of-fame. But unfortunately, most stores barely offer the basics.

And even then Great Customer Service isn't enough to move the needle for customers these days. You need WOW Customer Service!

See where your business stacks up in this example of dealing with a Customer with a Problem...

Basic Customer Service: Go find a manager to deal with the problem.

Good Customer Service: Take the customer away from other customers and go find a manager.

Great Customer Service: First attempt to solve the problem before calling a manager.

WOW Customer Service: Own the problem from the start. Apologize and admit you made a mistake. Solve the problem to the satisfaction of the customer. Report your solution to the manager. Follow up with the customer later to make sure she is still satisfied.

It doesn't take much to go from Basic to Great. But to get to WOW requires a dedicated and well-trained team. Ask yourself...

Does your management team allow for WOW to happen?

Is your staff capable of making WOW happen?

It takes WOW to get WOM (word-of-mouth). Give your customers the WOW treatment and your needle will move. Guaranteed!

Phil Wrzesinski
www.PhilsForum.com

PS I'm working on a new eBook... "Customer Service: From Basics to WOW" I would love your feedback on what you consider to be WOW service that you're currently using in your store. Any submissions used will get both credit in the eBook and a FREE copy of my book Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art

The No List

2011-06-24T11:41:00.003-04:00

Carole Bernstein owns Get Smart! Carole Bernstein is Smart.

She works on her business as much or more than she works in her business. But she still keeps a pulse on what is happening in her business at all times with a clever communication tool used by all her staff.

I don't know for sure what she calls it, but I call it the "No List".

At the end of every shift her staff are required to fill out a worksheet that includes every request to which they said "No" that day.

Think about that for a moment...

What if you knew every time your staff said, "No, we are out-of-stock"?
What if you knew every request a customer made for a product that you did not carry?
What if you knew about a service for which multiple customers were asking but you didn't offer?
What if you knew exactly what your customers expected but didn't get?

Would you be a better retailer with this information? Of course you would. And Carole just showed you how to get it.

That's why I love attending good conferences and meeting smart retailers.

-Phil Wrzesinski
www.PhilsForum.com

PS Not sure how to train your staff to communicate with you in this way or any other way you choose? Check out my free eBook Staff Meetings Everyone Wants to Attend and the accompanying worksheet. You'll have your staff fired up and wanting to learn more in no time at all.

Notes From Visual Merchandising & Store Design Sessions

2011-06-21T16:37:00.003-04:00

I love attending conferences with excellent presentations and workshops.

At the American Specialty Toy Retailing Association Marketplace this week I got a chance to attend two sessions on merchandising and store design put on by Linda Cahan.

Although I have already published a Free eBook called Merchandising Made Easy, I wrote down a ton of notes from these sessions either as reminders or as advanced ideas from what I already know.

Here are some of the key takeaways...

Focal Displays
Your store merchandising should be built on a series of Focal Displays that are visually attractive and placed where they will be easily seen. For instance, at the end of every aisle there should be a Focal Display. When a person enters the store, they will typically look straight ahead first. You should have a Focal Display against the back wall directly in front of them.

People also scan a store in predictable patterns. First they look straight ahead. Then they scan from left to right. Therefore you should stand in their shoes and see how many Focal Display areas you have from the front of the store and what are they seeing.

Your Focal Displays tell the story of who you are, your product selection, your core values, etc. Make sure that you are using those spaces wisely. If you have nothing interesting where a Focal Display should be, you are telling your customers that your store has nothing interesting for them. Make your Focal Displays fun and the rest of the store will seem fun.

Light Makes a Difference
Stores with really bright lights and lots of product everywhere are considered more affordable than stores with a mix of lights or bright lights with little product. If you are going for the boutique look, mix up your lighting. If you are going for the affordable look, add some wattage.

The best light of all, however, is Natural Light. Windows, skylights, etc. Natural light makes a store feel cleaner, lighter and more relaxing. It also helps your staff feel better.

Even if your landlord won't let you put in more natural light, you can make a difference just by painting your ceilings light blue with a cloud or two. It will expand the space and make it feel like there is more natural light.

LED lights are the new wave of the future, offering brightness at a fraction of the energy, and they last forever. Get away from the hot halogens, expensive incandescent, and even the fluorescent lights in favor of LED when you start switching out your light fixtures.

Round is a Shape
Get rid of your sharp corners. If your cashwrap sits in the middle of the store and has corners, soften them somehow. Put a plant or a round fixture at each corner. Use round tables instead of square tables for displays. Sharp corners are irritants, not only dangerous physically, but also psychologically. Rounded corners and rounded fixtures are much more comfortable and pleasing.

Thanks to Linda for these great ideas (and so much more). I know there are some things I need to change.

How about you?

Phil
www.PhilsForum.com

PS Check out Linda's book 100 Displays Under $100 (not an affiliated link, just a shout out to say thanks for two wonderful presentations)

You Get What You Pay For

2011-06-14T15:28:00.003-04:00

A friend of mine's wife was teaching a dance teachers workshop and one of the participants asked her how she was able to get such good musicians for the program.

She replied, "Pay them!"

The universal truth is that you get what you pay for.

It especially applies to your staff.

There are two management approaches you can take towards your staff. Either they are one of your largest expenses or one of your largest assets.

The business owner who approaches payroll as an expense will try to cut it to the barest minimum, keep pay as low as possible to keep labor costs down.

The business owner who sees the employees as an asset will invest in them and do whatever necessary to get the highest possible return from those assets.

Either way, you will get what you pay for.

Choose wisely, my friends, choose wisely.

Phil
www.PhilsForum.com

PS Need help getting the right assets in place? Buy my book Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art. It will make a difference immediately.

How I Am Marketing the Birthday Club

2011-06-10T11:12:00.003-04:00

Thought it might be insightful to show you all I am doing to market the launch of our Birthday Club at Toy House.

Facebook - This is where I did a lot of research and also where we first announced it.

Email - I use Constant Contact to manage my email list. This particular email was the most-opened email I have sent.

Press Releases - I have 80 email addresses just for press releases; newspaper contacts, radio, TV, business leaders, people who publish newsletters, local organizations, etc.

TV - I am the daily sponsor of the JTV Birthday Club on the Bart Hawley Show. They put up a slide on the air at the end of their Birthday Club segment telling people to sign up for our Birthday Club. Plus, I will be making a live appearance next week on the show to talk about it.

Local Message Boards - my wife posted the announcement on two local message boards and they both immediately had positive reactions.

Radio - I will be doing a couple interviews on local radio soon to talk about the Birthday Club. Part of that is because I do a lot of radio advertising. Part of that is because I have cultivated relationships with our local deejays. I might run a radio ad later, but only if I think I need the extra publicity.

Website - Our web guy put it up on our website in conjunction with the launch. Thanks Steve!

In-Store Signs - We have signs all throughout the store advertising the Birthday Club.

This Blog - Sure, it's more of a backdoor way of marketing, but I have customers and local people who read this blog and have learned about the Birthday Club from it.

Word-of-Mouth - The buzz both online and in person has been huge.

Sure, that might seem like a lot of work. But much of it is simple enough to do. And all it really cost was time.

Results? Over 150 sign-ups in the first three days.

You don't need a big advertising budget to market your business. You need some time, some ingenuity, and a great message.

Phil
www.PhilsForum.com

PS To learn other affordable ways to market your business, check out my three free eBooks
Main Street Marketing on a Shoestring Budget
Baby Store Marketing on a Shoestring Budget
Non-Profit Marketing on a Shoestring Budget.

If You're Gonna Do It, Do It Better Than Everyone Else

2011-06-07T09:44:00.006-04:00

Today at Toy House we launched our Birthday Club.

We looked into what our competitors were doing and figured out we could do a whole lot better.

Our biggest competitor offers a small gift certificate of $3.
So we offered $10.
Their gift certificate had a strict time limit.
Ours has (virtually) none.
Their program ends when the kid turns 10.
Ours has no limit. Yes, even adults can sign up!

Then, for fun, we installed a Birthday Bell in the store. When a Birthday Club member comes in, he or she gets to ring the Birthday Bell to let everyone in the store know he or she is celebrating.

Oh sure, we have some ulterior motives in all of this. All such programs do. Here are the benefits we hope to reap.

More traffic in store. You have to come in to sign up and you have to come in to redeem the gift certificate and ring the bell.

More information. You have to give us your mailing address and there is a place to opt-in to our email list, too.

More fun and excitement. Ringing the bell in the store adds to the in-store experience for everyone.

More memories. Will you remember a $3 gift? Heck, some of our Facebook friends said it wasn't enough to even get them in that other store. A $10 gift certificate means you can get something of value. Add it in with other money they received and the gift becomes even more special.

More sales. Yes, we expect to reap some incremental sales from this. The kid with birthday cash can go anywhere. The kid with birthday cash and a Toy House gift certificate is coming to see us.

More exposure. Word of mouth? You bet! Plenty to talk about. The size of the gift certificate. The Birthday Bell. The fact that adults can join (and the added benefit of reminding people that we carry toys for all ages.)

We could have copied the other store. But that isn't us. We're bigger than that. We're better than that. You are too!

Is your competitor doing something positive that you aren't? See how you can do it better than them, and blow them out of the water.

Phil
www.PhilsForum.com

PS If you would like details of how we're running this program, how we're marketing it, or anything else regarding it, send me an email.

The Importance of Fun

2011-06-06T10:43:00.003-04:00

Are your employees having fun?

Do they enjoy coming to work every day? Do they smile, laugh and play? Do they make the tedious jobs seem fun and exciting? Do they brighten up the entire store?

Or do they drag themselves to work at the last possible moment? Do they start each day with a bitch session about last night's issues with the kids, or yesterday's customers, or just life in general? Do they roll their eyes when you suggest something to keep them busy?

If you're a retailer, you have to have a fun place to visit. There are too many options for customers to have to go to someplace they dread. And that fun attitude starts with your staff.

Here are some things you can do to foster fun amongst the staff:

Hire fun people. Seems obvious, but are you willing to fire the sourpusses and start over?

Encourage fun on the job. Have games for the staff to play. Get products out for the staff to demo. Help your staff become experts by making them use the products you sell. Do something unusually fun on the sales floor, maybe even out of character for your industry like a TV in a jewelry store.

Encourage fun in the training. Make meetings and trainings fun by finding fun ways to teach. Have surprises, pleasant surprises, at meetings and trainings such as prizes, guests, food, or just unexpected activities.

Yeah, for me it's easy. I have a toy store. It's supposed to be fun. But even in a toy store I have to foster that atmosphere of fun consciously. And the more I foster it, the more fun it becomes.

Make fun a priority in your store and your customers will respond. And that's the most fun of all!

Phil
www.PhilsForum.com

PS Fun can work in any retail situation. What it would be like for the guys if the jewelry store had a TV showing sports channels and all the sales people were having a good time? How about a grocery store with tasting stations and experts on grilling techniques that had serious passion and a light-hearted good nature? Or a hardware store where you could swing a bunch of hammers to see how each one is different while the staff egged you on to hit harder?

How to Remain Special

2011-06-04T11:11:00.004-04:00

The independent retailers are often called Specialty Retailers because rather than carry a wide swath of departments, we specialize in one or two general niches.

Specialty was also a way of saying we offered a little more in the way of a shopping experience, something special that the discounters couldn't offer, that the department stores couldn't match.

Our stores truly were Special.

Special products not found everywhere.

Special services not matched by our competitors.

Special experiences enhanced by our staff.

Of course, those last two things cost money. Thanks to the margins on the first item, our special products, we could afford them.

But those margins are disappearing fast. The product that used to be found only in specialty stores is all over the Internet. Some of it is even on the shelves of gas stations and pharmacies. While the cost of those goods continues to rise, the retail price holds steady or shrinks.

Without that margin many specialty retailers are finding it hard to afford those services that made them special. But to compete, we have to hold the line. We have to find ways to keep our stores Special.

The best way to remain Special is to focus on your staff, on the frontline folks who make or break the experience for the customer.

Teach your staff how to connect with your customers and build relationships.

Empower your staff to solve problems immediately and effectively.

Encourage your staff to be creative and unique and memorable.

Allow your staff to play and have fun.

It starts with hiring great people. It moves forward by constantly teaching and training them, never getting complacent.

Whatever you do, don't give up being special. Start by making your staff special and the other stuff will fall into line. And don't worry about the special products and lost margin. This is just a cycle we're going through. They'll be back soon enough.

Phil
http://www.philsforum.com/

PS In the meantime, there are some simple things you can do to make your prices look better and help you move some more merchandise. Check out my free eBook Pricing for Profit.

Smoothing the Rough Spots

2011-06-02T12:09:00.004-04:00

Wow, what a fun ride!

Last June I published my first book, Hiring and the Potter's Wheel: Turning Your Staff Into a Work of Art. The book has received wonderful praise from store owners and HR people alike.

And sales have been phenomenal! I have shipped copies all over the world.

I set a pretty high goal for myself, to sell enough books in one year to pay for all the expenses of printing and design. And I'm really close. I only need to sell 10 more copies of my book by June 22 to reach my first year goal.

Anyone responsible for the hiring and training of others will benefit from reading this book. Plus, it makes a far better and more useful Father's Day gift than a tie.

To whet your appetite, here's another excerpt from the book...

Chapter 14 Lesson #7 Smoothing the Rough Spots
“Nothing is so strong as gentleness. Nothing is so gentle as real strength.” – Frances De Sales

As Mary smoothed the rough edges of her bowl she pondered what lesson she could learn from this step in the process. “If I’ve put them in a safe place to use their skills, what roughness will be left?” she thought. A smile came to her face. “Evaluations! I’ve got to make sure there is time for evaluations during and after the safe zone period. Even though they are using their skills, there will still be rough edges needing smoothing.

“I know,” she thought, “I can take the training skills checklist and do follow-up evaluations on each skill just to make sure there are no bad habits, no rough spots. Oh yes, and the evaluations must be completely positive – show them what to do right, rather than harp on what was done wrong. They’re still fragile at this time. Yes, fragile. That’s what Peter meant. The bowls, while dry, are still fragile and need to be safe. The trainees, while trained, are still fragile and need to be in a safe environment where they can learn from their mistakes. It all makes sense,” Mary concluded.

Peter wandered the room checking up on everyone’s bowls, looking for missed rough spots. By the end of class he deemed every bowl to be ready.

“Okay, put the bowls safely on the rack. On Wednesday we fire them for the first time.”

“The first time?” Mary asked.

“Yes,” Peter replied. “On Wednesday we are going to do what is called ‘bisque-firing’. This will harden your bowls so that they won’t be so fragile.

“By the way,” Peter continued. “We will not be meeting here. All of you are invited to my studio. I’ve put the address and directions on these little slips of paper. Unfortunately, the directors here at the YMCA will not let me build a kiln inside the Y, so we’ll use my kiln at the studio. See you Wednesday.”

Get your book today!

Phil
http://www.philsforum.com/

PS All orders online will get a signed first edition. (So will books bought in the store, as long as I'm working that day:-)

It Took a Surgery to Learn This

2011-05-31T11:33:00.003-04:00

My wife has been harping on me about this for 18 years.

"The store is too big," she says.

"Your plate is too full," she says.

"There are other people who can do that," she says.

You know what? She's right!

I used to think I was pretty good at delegating. My father? Not so. He didn't like to teach so he would rather do it himself. I like to teach, so therefore I teach it and delegate it.

Or so I thought...

The Staff is Capable
But over the past two weeks, while I sat at home recovering from surgery, I finally had a revelation. I have an extremely talented staff capable of far more than the responsibilities I have given them so far.

Not only did they keep the store running smoothly, they came up with some ideas on how to do things better. Not only did they keep the customers happy, they came up with ideas to draw in more customers. Not only did they step up when I needed them, they showed that their potential is still miles higher.

I need to give them more to do.

The Toughest Part
But let's face it. Delegation is hard. You know the excuses...

They won't care as much as me

They aren't as skilled, experienced, talented (insert your own adjective here) as me

It will take me longer to teach them than to do it myself

And still you're paying them to work for you. So make them work for you.

Maybe they won't care as much as you. What may surprise you is when you give them ultimate responsibility for the success or failure of a project they will care a lot more than you expect.

Maybe they aren't as skilled as you. But how do you build those skills? By using them. With a little time, they can grow to your level, and possibly beyond.

Maybe it will take longer... the first time... but there will probably be a second time, a third time, and so on. Make the investment today and it will pay off down the road.

Reap What You Sow
Your staff is your largest expense after inventory. And if you treat it like an expense, you'll get what you pay for. Your staff is also your largest asset. If you treat it like an investment, you will reap the benefits beyond what they cost.

See if you can delegate one new responsibility each week for the next four weeks. That's my plan. Excuse me while I go check on our new Birthday Club we're hoping to unveil in a few weeks.

Phil
www.PhilsForum.com

PS There will always be some things you don't want to delegate. I love teaching the Shopping for Baby 101 classes at the store, and I'm pretty darn good at it. If it's both a strength and a love, keep doing it. Everything else should be on the table.

Stats Lie, Trust Your Own Numbers

2011-05-29T17:19:00.003-04:00

The only numbers that really count are yours, the ones you make, the ones you manage.

The weather service says Jackson County has only received 3" of rain (as of May 27) yet my dad had a bucket of 8" of water from just the previous week (including evaporation).

The various reports have retail sales up, down, or flat, so many different ways that you could get dizzy trying to follow.

Even Winston Churchill says, "The only statistics you can trust are those you falsified yourself."

And as Seth Godin pointed out in his last post, none of these reports on the economy really matter.

The only economy that counts is your local economy. The only statistics that count are the numbers you create and measure.

Are you tracking Customer Counts? This is a good sign of the health of your marketing campaign.

Are you tracking Average Ticket? This is a good sign of the ability of your sales staff?

Are you tracking Gross Margin Return on Inventory? This is a good sign of the ability of your buyers.

Are you tracking Cash Flow? This is a measure of the ability of your company to react to changes in the local economy.

Those are the numbers that count.

Phil
www.PhilsForum.com

PS Need help in understanding those numbers? Help is available in the Freebie section of my website. Need more help? Send me an email. You can be successful in any economy when you track the right numbers.

Teaching Your Staff to Connect

2011-05-27T07:48:00.003-04:00

Let's plan a staff meeting together...

Every meeting needs to have a goal.

Our Goal:

This will be a successful meeting if... The staff learns a better way to create relationships with our customers.

Doug Fleener, the Retail Contrarian, believes you should find out three things about a customer before you try to sell them anything. That way you know more about the real needs of the customer, not just the surface needs they might readily ask.

Bob Phibbs, the Retail Doctor, teaches that the easiest way to make a connection is to find a point in common and share about yourself because you become more human and memorable. ("I see Johnny had a soccer game today. Did you win? You know, my son plays soccer, too. What league are you in?")

I believe that customers enter stores like Toy House because they want solutions. Maybe it is a gift idea, maybe it is to solve an educational issue, maybe it is to complete a project, maybe it is to fulfill a desire. Our job is to help them define the problem before we can find the solution.

The Task:

So we need Tasks - activities that help us teach this skill of relating to customers. Let's brainstorm...

Task Idea #1 - Show a Movie
Movies are fun. You could search the web and check other resources for movies that either teach
customer interaction, or show lousy interactions from which you can learn. (Google "lousy customer interaction videos" and you get 8.6 million choices)

Task Idea #2 - Lecture
Give a talk about the importance of interaction, how making connections makes you more real and trustworthy. Quote Mr. Phibbs, or Mr. Fleener, or George Whalin, or any host of other retail consultants on why making such connections are important. Give examples of good connections versus bad connections. Ask for critique of the bad ones, how they could have been done better.

Task Idea #3 - Play Games
Since the key to learning is asking questions, steal this game from the TV show Whose Line is it Anyway? One person starts by asking a question, but you can only respond with another question. Pair off your staff and have them see how long they can keep it going until someone goofs. Trade partners and do it all over again.

Another game is to have your staff try to find ten things they have in common with each other person on the staff.

Task Idea #4 - Role Play
Split up the staff into pairs to do simple role play. Make one person the customer. Give her a typical customer profile. Have her enter the store and have another staff person interact with her with the goal to find out three things about the customer before showing a product. After each role play talk about what was awkward, easy, could be done differently. Continue until everyone has played both roles at least once.

Task Idea #5 - Bring in an Outsider
Hire someone to come in and teach these skills. Sometimes an outside voice makes it stick better with the staff than hearing your same voice time and again. For a skill like this, a person who teaches Networking Skills is a good alternative to a retail consultant. In fact, maybe even a better alternative because the same principles of networking apply to meeting and relating to customers, and there are tons of people who teach Networking (contact your local Chamber).

That's a pretty good list, five potential Tasks that could lead us to reach our Goal. With a little creative thought you might come up with a few more ideas. The more the merrier.

To pick one you have to ask three questions...

What are my constraints? (Space, Time, Money, etc.) Eliminate any Tasks for which you do not have/cannot get the resources necessary.

What will be the most effective Task? (Pick one)

What will be the most fun Task for my staff? (Pick one)

So now you should have two Tasks from which to choose. Look closely at the Task you picked for question #3. Will it accomplish the goal? If yes, then run with it. If no, then go with the Task from question #2. (note: if the answer to #2 and #3 is the same, you're golden:-)

The Plan:

You know what you want to accomplish (the goal) and how you're going to accomplish it (the task). Start your planning. What else do you need? A date and time. A place. Any props necessary (a projector for a movie, a stage area for role play, rules to games, etc.). Collect everything you need to do your Task.

You also need questions. Questions that lead your staff from doing to learning. The technique I use is the What? So What? Now What? method.

What? These are the concrete questions. What did we do? What happened when...? How did that work?

So What? These are the abstract questions. What did we learn? What did this teach us? Why did we accomplish this?

Now What? These are the application questions. How do we apply that lesson to our situation? How does that compare to here? What can we do with this knowledge?

Write down two or three questions of each type appropriate to the task you have chosen.

Then post your plan. Put out the agenda. As much or as little info as you wish. Extroverts just need to know when and where. They'll do their best thinking then. But Introverts need a little more. If you want feedback from them, you need to give them a topic so they have time to formulate thoughts prior to the meeting. Introverts do their best thinking beforehand.

The Surprise:

Have some unexpected element planned in your meeting that will be a pleasant surprise. Maybe a gift certificate to a local restaurant given to the staff person who does the best in the games. Maybe a special treat like a pizza party as soon as the meeting is over. Maybe a costume that you wear as part of the Role Play. Maybe lottery cards for everyone just because you thought it would be fun.

Surprises make meetings more memorable, and it is not just the surprise they remember. The surprise becomes the anchor which triggers memory of the meeting and its lessons.

The Summary:

Your meeting will be a success. You've pretty much guaranteed that in your planning. But to make that success long lasting you need to write up a summary. What did we do? What did we learn? Try to use quotes from the staff as much as possible. Pictures are good, too. If any further action steps are required, list them. If certain future tasks are assigned, list them.

Then post the summary where all can see it.

That's all it takes to have a successful staff meeting.

Are you ready?

Phil Wrzesinski
www.PhilsForum.com

PS Yes, I go through this process for every staff meeting I plan. Believe me, it gets easier the more you do it. But for starters, here's a worksheet I use for planning. It's just one of the many Free eBooks I've written with your success in mind.

Convenience Versus Experience

2011-05-26T07:43:00.004-04:00

A Convenience Store is always located on the easiest side of the road to pull in or pull out, no-hassle driving.

An Experience Store has you drooling with anticipation as you wait at the light to pull in.

A Convenience Store carries all the same merchandise you would expect to find anywhere, the most popular items, the most requested items.

An Experience Store is full of unique and wonderful treasures, amazing merchandise you haven't seen.

A Convenience Store is open early and late, enough hours to be there exactly when you need it.

An Experience Store is open long enough for you to be able to take the time to explore all those treasures leisurely and when it fits in your schedule.

A Convenience Store has a staff that knows where everything is, and can get you through checkout in a hurry.

An Experience Store has a staff that also knows what everything is and how each product fits or doesn't fit in your lifestyle, an can also get you through checkout in a hurry (because when the shopping is done, there's no time to waste).

A Convenience Store wants your trips to be quick, painless, anonymous.

An Experience Store wants your trips to be comfortable, engaging, and relational.

A Convenience Store treats the customers as transactions, maximizing speed in the process.

An Experience Store treats the customers as people, maximizing comfort in the process.

A Convenience Store is measured by how little time you want to spend there.

An Experience Store is measured by how much time you want to spend there.

A Convenience Store is on the way to or from a Destination Store.

An Experience Store is a Destination Store.

Whichever you choose, now you know what is expected and what you need to do.

-Phil

Don't Bring Me Down

2011-05-24T21:02:00.003-04:00

At the trailer on the Manistee River where my family spent many a summer vacation there was a printed piece of fabric full of cliches. I loved reading those phrases and spent many a night asking my dad to explain what they meant.

One of my favorites was "Before you run in double harness, look well to the other horse."

There is a reason we haven't done a lot of collaboration marketing and promotions. Quite often the other horse wasn't up to our speed. We weren't willing to use (lose) our reputation because of an inferior partner.

We are All in Double Harness
The Shop Local movement has challenged all that. To get the benefits of a Shop Local campaign we have to allow ourselves to be defined under the umbrella of all local businesses. We have to allow ourselves to be defined by the local florist, the local shoe store, the local tailor, and many other businesses over which we have no influence or control.

That's scary.

Especially when I read stories about local retailers failing their customers like this one by Rick Segal, this one by Cinda Baxter or this one by Bob Phibbs.

I'm not sure I want to run in harness with all those other businesses.

At the same time, however, I really don't have a choice. The Shop Local movement is here to stay, whether it gains a lot of momentum in our area or not. We also face the issue of being defined as a downtown business, so I'm lumped in with all other downtown businesses and the perceptions they are giving customers (good or bad). And I'm a specialty toy retailer and specialty baby product retailer.

That's a lot of horses tied together. And if we all run well, we can travel far. But if we don't...

I'm Counting on You, You're Counting on Me
We are in double harness whether we like it or not. And it raises the stakes for all of us. Not only do we have to do right by the customer for our own sake, we have to do it for every other retail channel we represent.

Makes you realize that more customer service training isn't such a bad idea after all.

-Phil

The Emperor Has No Clothes

2011-05-23T11:20:00.003-04:00

That's where Roy H. Williams found himself in today's Monday Morning Memo talking about Facebook & Twitter - as the boy in Hans Christian Andersen's tale telling the truth nobody wanted to hear.

Facebook and Twitter are not the be-all-end-all fix to your marketing & advertising woes.

They are just the latest dazzling jewels being passed on as our next marketing saviours. But like many jewels that have blinded us before, Facebook and Twitter will not be your knight in shining armor. They will not lead you out of the dark. They will not transform your business into greatness.

Oh they might help a little bit. But alone they are as naked as Andersen's Emperor. They need to be clothed with the right message.

Remember the message? Your message? The one relevant, salient, memorable point that speaks to the heart of your customer? The message that makes them feel not only a connection with you but a partnership? A loyalty?

If your business isn't growing there are only two things to blame.

Your market is shrinking. If you sell typewriters, sorry, dude, but the game is up.

Your message isn't connecting.

And not just the message you give through your advertising, but the message you give through the experience in your store. Do you echo your marketing in your services? In your attitude? Do you show the same heartfelt caring towards your customers in person as you do online (and vice versa?)

Figure out your message. Put all your time and energies into coming up with that one relevant, salient, memorable, heartfelt message. And once you have your message, make it sparkle in every single element of your business from the bathroom floor to the phone message to the way your employee says Hello.

Then it doesn't matter which jewel you use. With the right message they all shine. Even Facebook & Twitter.

-Phil

Yeah, I like to call this "Branding". And when you understand your brand, you have all the jewels you need.

Staying the Course

2011-05-21T10:58:00.002-04:00

Another lesson from surgery...

In prepping for the surgery I had this past Wednesday, I read a 56 page thread on people recovering from this procedure.

Time and again the pattern of recovery emerged the same. The first five days get gradually worse before it starts to turn around.

Doing that research and having a realistic expectation of what will happen has made the last couple days much more tolerable. Today is day 4. If I hadn't read that entire thread, I might be wondering why I'm not getting demonstrably better yet. I might be sweating things out and worrying too much (which wouldn't help the healing).

Instead, I'm hunkered down doing what I'm supposed to do - take my meds, drink lots of water, get nutrients, and plenty of rest.

Do your research, be realistic, and stay the course (and take your meds, drink lots of water, get nutrients, and plenty of rest.)

Life lessons, business lessons.

Bigger Rewards Require Bigger Risks

2011-05-17T09:39:00.006-04:00

Tomorrow I am taking a huge risk. I am undergoing surgery to correct two physical abnormalities, an elongated soft palate and uvula, and a tongue that is positioned farther back in the throat than normal.

I suffer from sleep apnea. And in the long run, if I don't treat it, it will kill me.

I tried the easy routes...

Tried all the over-the-counter fixes, Breathe Right Strips, Anti-snore sprays, etc. Not worth the money or aggravation.

Wore a CPAP mask for three years religiously. But the mask came off 15 times a night no matter what mask I tried or how tight I cinched it.

Wore two different oral appliances. One didn't work worth a darn (don't buy them over the Internet), the second almost worked but just couldn't overcome the odd physical circumstances of my throat.

So tomorrow I will have my tonsils removed, my soft palate trimmed, and my tongue pulled forward. The surgery is long, painful, and the recovery brutal. And there are risks, too. Any surgery involving the throat runs serious risks for breathing. Although the surgery itself will have no negative effect on my voice, the anesthetist will have to run a tube down my throat past the vocal chords. For a guy who makes his living with his voice (speaking, teaching, singing), those are some serious risks.

But those are the risks I need to take to set myself up for long-term health.

There's a business lesson in here, too. Your business has some long-term health issues. Are you addressing them? Are you willing to take some serious risks to set your business up for long-term health?

Have you extended your hours to meet the demands of convenience-driven customers?

Have you tightened your pricing to stay competitive in your field?

Have you raised the Experience level in your store to the point people are bragging about their trips to see you?

Have you made the necessary investments in technology to keep you current with best practices, and help you manage your inventory and cash flow better?

Have you made the necessary upgrades to make your store look fresh, new and exciting?

Sure, there are some risks spending the money necessary to make those kinds of changes. And there is no guarantee you will succeed. Even my surgery only has an 80-90% chance of success.

But without those changes, your business will die a slow (?) death.

Take the risks necessary to ensure you are set up for long-term health. That's what I'm doing both personally and at Toy House.

When I recover from surgery I'll let you know what we have in the works for Toy House. It's every bit as exciting and scary as tomorrow.

-Phil

Seth is Wrong, Brand Exceptionalism is Easy to Innovate

2011-05-13T13:05:00.003-04:00

I have to take exception with Seth Godin's post today. (Go ahead and read it. I'll wait.)

For those of you who don't want to read it, his basic message is that once your brand becomes exceptional (whether in your own eyes or in the eyes of the public), you lose ground because you won't change. Why would you change "perfect"?

He says... "The problem with brand exceptionalism is that once you believe it, it's almost impossible to innovate."

Unless your brand is set up on Values.

The truly exceptional brands are those based on a set of core values, not on a particular product or service. Values are timeless. Values remain the same through the ages. How you show those values, however, changes from time to time.

For instance, our core values are Fun, Education, Helpfulness, Nostalgia. The products we sell are constantly changing and improving. The services we offer have to adapt and innovate with the new needs of customers. The way we market our store, the way we merchandise our products, even the way we ring you up at the checkout goes through countless innovations. We are constantly looking for innovations in how you Experience our store.

But Fun, Education, Helpfulness, and Nostalgia will never go out of style. And as long as we stay true to our values while staying current with ways to implement those values, we can have Brand Exceptionalism and Innovation.

They are not mutually exclusive when you set your Brand up on Values.

Wanna learn how?

-Phil

Just For Baby Stores (and Anyone Interested in Marketing)

2011-05-10T17:28:00.003-04:00

Last week I gave a couple presentations at the All Baby & Child (ABC) Spring Educational Conference in Fort Worth, TX.

Once again, Pricing for Profit was one of the biggest hits of the show. Many vendors were asking, "Who's Phil?" as retailer after retailer showed them better ways to price their goods for more profit because,"Phil said..." (Love that people talk about it that way! That never grows old for me:-)

The other presentation was Baby Store Marketing on a Shoestring Budget. Unlike most retailers who rely on repeat customers, there aren't a lot of repeat visits in the baby world. Stores that sell cribs and dressers have to constantly seek out new clientele.

Similar to Main Street Marketing on a Shoestring Budget, the Baby Store presentation covers eight affordable ways specific to baby stores that they can market themselves without spending a ton or giving away the profits.

And the Stork has arrived!

Everything in the presentation is now available in a newly published eBook. Download it for free. Share it with your friends. More importantly, use it as a guide to get more traffic in your store. (The smart ones among you will easily adapt it to your specific product mix.)

-Phil

Turning Nouns into Verbs

2011-05-09T12:16:00.003-04:00

My friend, Rick Wilson DMD, is writing a novel.

The story features a wonderful brewery in England called Gack & Bacon Brewery, established in the 16th century, now fighting off its conglomerate rival, Slore's. (Their motto? "It's beer.")

Gack & Bacon has an in-house pub called the Pig & Trebuchet. In a recent post (he's sharing tidbits online with some of his friends), Rick shared with us a little of the magic of the Pig & Trebuchet - The Bad Table.

Every restaurant has one, that table by the kitchen or bathroom (or both) that has the built-in annoyances. No one wants to sit at the Bad Table. But the P&T leadership turned that negative into a positive by making the table special for all who sit there. Special menu, special visitors, special activities. Always some little surprise and delight.

And people come in asking to sit at the Bad Table. My favorite line from this part of the story reads...

..."I've been Bad Tabled," was even local slang for being surprised by something excellent and unexpected...

How do you take a negative noun and turn it into a positive verb? The key is in the phrase surprised by something excellent and unexpected.

What are you doing to turn around a negative associated with your business with something excellent and unexpected?

If parking is an issue, do you offer a valet service?

If price is the driver of all purchases, do you have a lower priced item (from which you can upsell)?

If location is an issue do you have billboards or wall signs directing people where to go?

If convenience is an issue, do you go out of your way to make the experience memorable?

At this morning's meeting my staff and I decided we are going to turn Toy House into a verb. To be Toy Housed is to be pleasantly surprised and delighted in such a way that you have to smile. We'll accomplish that by first doing four things:

Play More

Listen More

Ask More

Know More

I'll let you know when Merriam-Webster puts it in their dictionary.

-Phil

Built-in Advantages

2011-05-07T16:25:00.005-04:00

Some businesses have built-in advantages.

The big box chain stores have the advantage of Price through buying power and a bully position to demand and extract better pricing out of their suppliers. Some have the advantage of Convenience, too. Great locations and one-stop shopping.

The Internet sites have the advantage of Convenience. Shopping in your pajamas from the comfort of your own home. Some have the advantage of Price through low overhead. Warehouse space is cheaper to build than retail space.

And those two channels are fighting big time for customers who value price and/or convenience.

Independent Retailers rarely have either of those advantages. We work on tighter margins to stay price competitive. We pay higher rents to try to be convenient. And although good to have those things, the one area where we do have the built-in advantage is Experience.

To be successful, we have to out-Experience the competition.

We can offer not just good customer service, but outstanding, bend-over-backwards customer service, the kind that gives people something to talk about.

Have a problem? We'll fix it.

Have a special need? We'll take care of it.

Have a desire? We'll fill it.

We can know more about the products than even the most savvy Internet researcher. And it isn't just important to have knowledge. We can know how to apply it.

Let me tell you why the folding mechanism on that stroller is better for you.

Did you know that this game teaches skills that will raise your child's math scores?

The manufacturer recommends this age because younger children don't have the hand-eye coordination to be successful.

We can WOW our customers every time they step through the door.

Yes, I'd be happy to carry that out for you.

I'd like to give you this free gift as a token for shopping with us today.

Of course we deliver.

If your store isn't built around the concept of Experience, you're missing out on the one built-in advantage you have that your big-box and Internet competitors don't. And if you aren't actively working every day to improve your Experience, you're not only hurting yourself, but every other indie retailer in your town because you're teaching customers that Experience isn't that important.

It is. You can do it. So make it so.

-Phil

Are You Working ON Your Business or IN Your Business?

2011-04-30T11:50:00.003-04:00

Morgan Freeman’s character “Red” said it in The Shawshank Redemption, “You either get busy living or get busy dying.” Never have more truer words been said about retail.

So what are you busy at right now?

Are you busy coming up with new ways to market your business?

Are you busy evaluating your inventory mix to make sure you have the right items, the right amount of items, the right prices?

Are you busy measuring your financials to make sure you have enough cash flow, are keeping expenses in line, and building profits for the future?

Are you busy training your staff, teaching them how to please your customers and make their experience both memorable and worthy of talking about?

If you want to get ahead, you have to spend just as much time working ON your business as you spend working IN your business. Maybe even more.

Here are some simple things you can do to find more time to work ON instead of IN.

Don't waste your time stapling, folding, cutting or hole-punching. If you don't have a staff person in need of a simple project, give it to your kids or grand kids. (And if that isn't an option take it home with you and do it while you catch up on your favorite show).

Don't micromanage. Train your staff how to do it. Then empower them to do it. Even encourage them to come up with their own ways to do it better.

Don't ever say or think "it would be quicker for me to do it myself." The first time, you're right. But if you teach someone else how to do it, the first time will be your last time.

Hire somebody. Let them do all that day-to-day stuff that bogs you down. Not only does it free up your time, but it forces you to work ON your business just to find the money to pay them.

And if you aren't sure where to begin working ON your business, think about it as a three-legged stool.

The seat of the stool is the products. Without the seat there is no need to prop it up.

The first leg, then, is the marketing. What are you doing to get people in to see your products?

The second leg is selling. How well trained is your staff? Do they know the benefits of the products?

The third leg is the financials. How is your cash flow? Profit? Inventory levels? Expenses?

Pick the wobbliest leg and get to work. (Let me know if I can help).

-Phil