Retailers all have the same basic path to success. That is, we
must increase sales and reduce expenses in order to improve
profitability. The goal is the same but how we achieve each
milestone may vary. Take a look at the following ways to better your
business.
You may believe employee theft and
shoplifting aren't a problem in your business, but simple pricing
mistakes can also cost retailers quite a bit. The average shrink
percentage in the retail industry is about two percent of sales.
Learn to identify and reduce sources of shrink.
Whether
you're up-selling to a customer or planning an expansion into a
multi-channel environment, retailers should learn to notice and take
advantage of every possible opportunity to sell.
One easy way
to better your business is to improve customer service. Retailers
should develop customer-friendly policies, train employees to
provide outstanding customer service, and learn how to create
customer loyalty.
One way to keep
customers returning to your shop is by offering new and exciting
products. When adding new products or expanding product lines, keep
in mind that not only should there be a demand for the item, but it
must also be profitable and something you enjoy selling.
The vendor who
sales an item at the lowest price isn't necessarily the vendor you
want to buy from. When selecting a supplier, consider shipping,
terms of sale and other factors to determine the vendor with the
best value. These small details may erode a retailers bottom line.
How often have you said you can't afford
to advertise right now? Maybe once business picks up you'll place an
ad. Or maybe you're holding those advertising dollars until the
holiday shopping begins. Either way, you could be losing potential
customers right now. Begin tailoring your marketing efforts to your
target audience. If you don't spread the word, no one will know you
exist.
To better your business and return more
profits to your bottom line, learn where you can cut operating
expenses. Look around your shop. Could buying instead of leasing
save money? Are you outsourcing something you could easily do?
Attend a trade show or other retail expo.
These conferences are developed in order to give retail owners,
buyers and managers the opportunity to meet existing suppliers,
conduct business meetings, network with others in retail and
investigate new products.
Every
time we invest in a new piece of technology, we're always amazed at
the results and wonder how we lived without it for so long. Find one
new money or time saving piece of technology to implement in your
store this year. For example, if you are using manual cash
registers, consider a POS system.
10. Provide Training for Staff
Once
you've determined how to best implement the nine ways to better your
business listed above, pass that information on to your staff. Your
retail employees are the ones on the front-line every day and should
be trained to reduce shrink, improve customer service and increase
sales
opportunities. 
MONEY
IS TIGHT but Not Unavailable
