There are few stores that I enjoy browsing more than ‘Best Buy.’
Their buyers bring in an interesting selection of product and it is displayed in a way that encourages you to touch, play and learn.
That’s why I was so surprised to see this…
Yes. That’s right. Office chairs secured to displays several feet off the ground.
Would you buy a chair that you couldn’t sit on? I wouldn’t either.
And when they don’t sell, will the buyer decide that chairs were a bad idea or will they consider the possibility that they were simply displayed poorly?
My point is this… when you bring in a product, it is important to design the display in a way that makes it easy for customers to become familiar with a product and decide if they would like to buy it. In this case, there’s no way that goal is accomplished.
Another point might revolve around wondering why a company known for dominating categories would bring in only 2 sku’s? If their own buyers don’t look like they care about a product line, then why should we?
Look at things from a customers point of view and you are more likely to get where you want to go.
Marc
Categories: Management · Marketing · Retail
Tagged: Best Buy, chairs, display, Marc Bluestone, office
It’s no secret that businesses are having a tough time making last year’s sales numbers.
My phone is living proof of this as it rings daily from retailers wanting advice on how to weather the current business cycle.
And while growing sales is key to building a business, in tough times that is often not realistic.
Tough times demand survival and survival often depends on getting your costs low enough that you can stay in the black no matter what happens to your sales.
Unfortunately, too many business owners get locked into fixed costs that can’t be reduced at will.
Building leases, cars, loan payments, some types of advertising, etc are all examples of costs that stay the same regardless of sales.
Salaries often fall into this category too unless you’re willing to make some difficult changes.
Here’s my thought for the day…
How much can you do with how little? Can you figure out a way to make more of your costs variable?
How can you avoid signing into long term obligations by purchasing services on an ‘as needed’ basis? For example, instead of leasing a larger building for infrequent sales bursts, can you utilize temporary storage whose cost goes away when you’re not using it?
How much can you do with how little?
There is money to be made if you can master that idea in tough times, and stick to it in good times.
Marc
Categories: Management · Retail
Tagged: Fixed Costs, Marc Bluestone, Tough Times, Variable Costs
