By Moe Lastfogel Director of Sales and Marketing for The Retail Observer ![]() August is one of my favorite months. Why? Car shows. For years, I went to Reno, NV to Hot August Nights and was awed by all the hotrods, classics and antiques that were on display. What I wouldn’t give for some of that chrome and horsepower. Why do I bring this up you may ask? I like cars. The point is, as I work on my own car, a 1999 Chevy Suburban, I think about ways to make it run for another 15 years (238k miles so far). As I replace parts, many choices are usually given to me; I can get upgraded brakes, longer mileage tires or replace other parts with higher performance equipment. The logic is they will last longer and help my vehicle last longer too. Upgraded maintenance is my goal. Your company is just like my truck. I have to make sure that the products I buy and use are of quality, serving me for many more years to come. In retail, it’s kind of the same thing, the upgrade equals profitability. For example, I’m putting a Magna Flow Exhaust system on my truck, increasing my gas mileage, the stainless steel lasts longer, plus I’ll get a little kick of horsepower. In your business, the items you purchase to make your business run need to be of a higher quality, because purchasing substandard equipment or products will most likely hurt you in the long run. This is anything from delivery dollies to the tape you use to ship boxes with as well as the boxes. Bad tape needs more tape to hold it together and bad boxes need more tape. Going cheap gets expensive quick! Sometimes spending a little more goes a long way towards your bottom line and in my case, my mileage gauge. Happy Retailing, Moe [email protected]
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By Moe Lastfogel Director of Sales and Marketing for The Retail Observer ![]() SELF-ESTEEMING - a feeling of pride in yourself, feeling regarded with respect and in some cases, self conceit Why do men buy expensive cars or women designer purses? In some cases, it’s quality or brand recognition and sometimes it’s just “My stove is bigger than your stove.” There—I said it, and it’s true. How do you, the retailer play off of this phenomenon of the human ego? I say offer them what they want. Now the question is, what do they want? Your customers range from architects to zoologists and they all want something better than the next guy (within their budget of course). What can you offer to this ego-centric client? The best of course! But without asking them what the best is, you’ll never know what they want. Surveys average a very low return. Internal surveys receive a 30-40 percent response rate compared to an average 10-15 response rate for external surveys. Response rates can soar past 85 percent when the responding population is motivated, the survey is well-executed and the person surveyed receives a benefit to them. Start with your own client data base, the top 10 percent of revenue and invite them to an event to ask them about the products they have previously purchased and why. More importantly, what would they buy from you tomorrow? Contractors and designers can offer perspectives of client wants and needs. And don’t forget to ask what they would purchase today if you carried it. The answers may surprise you and help you open up new categories with larger profit margins and added revenue. Happy Retailing, Moe [email protected] |
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December 2021
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