Assess and Cleanup to Impress

Channel Ideas is proud to be part of helping dealerships tune in and tune up their stores. Over the following months we will be highlighting important steps you can take to make your dealership an inviting “destination” location for your current and future customers.

Let’s be honest, dealership cash flow is shorter than it has been in many years. Spending money now is not something you want to do but there is something you have to ask yourself – are you staying in business? We hope so. With that cleared up, let’s get started on 2010.

If you want to make an inviting business location then being clean, organized and professionally presented is step one in bringing customers into the store. That doesn’t mean you have to spend a lot of money! Then again, maybe you do need to spend big money and cannot do it right now. So assess your store and make an annual plan.

Look at everything outside, the parking lot, the signs, the lighting, paint – how do you feel now? Most of what I point out here is potentially big expenses. If anything is going to be done in this category, pick the biggest bang for the buck.

Now walk in the store and take a hard look from the door. This is what the customer sees! If you are the one who manages the “look” of the store…be hard on yourself. Has the unit inventory been moved and then cleaned recently? Every few days? Every week? How about P&A? Do you have relevant and seasonal displays that are exhibiting lifestyle? Lifestyle display is more important than proving you have enough inventory to make it impossible to get though the showroom.

Then there is the service department. I’m one who believes that there should be clear view of the service department for the customers. There are two reasons for this. One is that the customer feels more “secure” about their unit and two; it forces you to keep the department clean and organized. If you have technicians that don’t take organization and cleanliness seriously, have them check out the racing community and what their operation looks like. The customer expects to have the same experience when they look at your service department. While you may not have the dollars for a racing garage, just get as close as you can get.

Assess your store every day. Look at the operation with a critical eye and then act on things as you can afford to make changes. There is no way to cover all that can be done to improve your dealership in a short article so put on your marketing cap and dive in! Next issue we will address action plans. We’ll address how to make them, how to get the plan in place and keep it going.

Copyright © 2009 Neil Frame All Rights Reserved.

Closing Killers: 10 Behaviors to Avoid at All Cost

Understanding what goes on in the mind of a customer for many sales people is elusive but desired knowledge. What do they want? What do they know? What are they thinking?

Companies spend big bucks on consumer research. What colors do customers prefer? What product names are most likely to elicit interest? What music makes customers want to buy?

Sometimes big corporations can’t see the wheel for the spokes. You don’t need a PhD in Psychology to figure out what customers want. You just have to ask them.  And then most importantly listen to their response.

A recent survey of customers discovered several sales person behaviors which turn them off from buying. More than a casual annoyance these behaviors were cited specifically as reasons that customers would not do business with either the sales person or the establishment.

If you recognize yourself in any of these scenarios, just play it cool, don’t freak out and understand there are some customers who won’t do business with you as a result of these behaviors. So if you’re hopeful to sell something … you may want to change your ways!

Customers say their some of their biggest sales turn offs are:

1 – “Being called buddy or pal …”

Or sport, ace or guy, or any of those quasi-cool names that come in and out of vogue.  For many people the moment you call someone by one of these name substitutes you create a negative impression.

It’s been said that the sweetest sound to someone is the sound of their own name. And it’s true. Enter into evidence the “cocktail party” effect.

This effect is the ability of a person to identify and focus on one speaker in a room full of conversations. Think about a time when you have been at a party with a room full of people and many conversations going on enthusiastically over raucous party music. Do you remember what it was like?

Then from across the room you hear someone mention your name. For abilities which are continually being researched, the human auditory system can ignore most other incoming information and concentrate just on the conversation in which you’ve heard your name.

Scientists have studied this phenomenon and have many complicated and technical theories as to why this happens, but for salespeople the important point is simple. People are interested in conversations that are specifically about them.

But you’re thinking, “I have lots of customers. There’s no way I’m going to remember all of their names.” Well you don’t need to remember first and last names. First names are fine. Then there are many ways of remembering names; using them multiple times after first hearing them, using memory aids like association techniques are all helpful.

Also keep in mind you don’t need to know everyone’s name all the time. If you are working in sales, review your daily sales appointments for that day, so you are familiar at least those people with you have specific appointments. Same holds true for your service manager or any other department that is setting and keeping appointments.

And if in fact you have forgotten someone’s name, you have to just summon up your courage and say, “I’m sorry I’ve forgotten your name.” And then work on remembering it.

Sport. Buddy. Pal. When you call someone by one of these generic names you really send the message to them that they really are not important. Whether you mean it or not, consciously or subconsciously, customers interpret it as you don’t care specifically about them and that you really are just considering them another number on the way to your commission check. So, “Hey pal, don’t do it.”

2 – “Salespeople who are too much on my side.”

This raises customers’ suspicions immediately. Rarely do salespeople today say things like, “I like you. You have an honest face.” But some are still saying things almost as ridiculous. For example, “I’m getting to know you, so here’s what I can do.” Or “Let me go to bat for you with my manager.” (By the way the ‘I’ve got to go talk to my manager has been so vilified from the customer perspective that even if you do have to talk to your manager some customers think some sort of manipulation is underway.) “Here’s an insider’s deal” or “I want to give you a deal, it’s my manager I have to get past.”

Understand the “natural” dynamic between customer and salesperson especially in the initial phases of a sale. Avoid “saying” you are on the customer’s side. What you really want to do is show the customer that you are on his or her side. How can you do that?

• Hustle. Move quickly and with purpose. Show customers you are working for them.
• Listen with your eyes. When a customer is speaking with you. Look them in the eyes.
• When you are with that customer, be with that customer and not thinking of what else you could be doing.
• Find that motorcycle in the back that may truly fit the customer’s needs but so far others have been too lazy to pull out.
• Use the internet to research a motorcycle or product comparison.
• Get them the brochure you promised.
• Call them with the information they requested.
• Don’t let your ego stop you from asking another person for the answer to the question.
• Don’t be afraid to let them look around or comparison shop. If you, your store and your products and pricing are good. They will be back.

Customers are wary of salespeople. It’s the nature of things. You know you’re not that kind of a salesperson, but a first time customer who has never met you doesn’t. So don’t tell them how good, honest and on their side you are … prove it to them!

3 – Being told “if you have any questions feel free to ask.”

You are just trying to make the customer feel comfortable and welcome. But some customers out there are really jaded in terms of their shopping experiences. They perceive this as obvious and just a ploy to interact. They think thoughts like, “you’re a salesperson, and I’m a customer. Of course if I have questions I’m going to ask. Don’t state the obvious.”

So how can you deal with this jaded attitude? Tell them something they don’t know or that isn’t obvious. Like:

• How your store is organized. Your merchandising and signage probably does this very well (or at least it should) but one thing customers find helpful is a bit of orientation. Let’s face it, our stores do have a lot of stuff and for many, especially first timers or those that haven’t been in since you re-merchandised our stores can be confusing.Say something like, “Hi! My name is Mark and welcome to Big Deal Motorcycles. Just so you can navigate a bit the store is organized like this: new motorcycles are over here, pre-owned are here and …”The idea isn’t to be a Graceland Tour guide rather a quick orientation so that customers can spend time on their own looking at what brought them in, not confused and trying to find something.
• Show them what’s hot, different or unique. Another idea instead of telling customers who are shopping that they should feel free to ask questions is to show them what is the latest and greatest in your store.
  • “Hi! My name is Mark and welcome to Big Deal Bikes. I know you probably want to look around a bit, but if you’d like to see the motorcycle that made this month’s cover of Cycle World, it’s right over there.”
  • “I see you’re looking at helmets. I just wanted to point out that this particular helmet was just rated in Motorcycle Consumer News as being one of the best on the market.”
  • “In case you might be interested in the rear of the store our owner has brought in three motorcycles from his collection. If you get a minute you should check them out.”

Of course these are just some examples and you will be able to come up with more on your own. Just remember that some customers really dislike being told the obvious. They may feel as if you are being condescending. Avoid that possibility by not being the typical salesperson. Don’t tell them what they know (i.e. If you have questions ask me) rather and tell them something they don’t know (how your store is organized or what special in your store).

4 – Staring at people as they move through the store.

This is of course a retail equivalent of stalking. Customers know that you are there to work with them. You know you are there to work with them. You don’t need to keep customers under an at-all-costs surveillance. They will not mysteriously be transported by the mother ship out of your dealership.

Relax. Go about your business

5 – Shaking hands too aggressively.

Ok, he-man, we know you go to the gym. You don’t need to show it by crushing your customer’s hand. It doesn’t matter whether your customer is a man or woman no one likes to be in a dealership and feel as if they are in some sort of carnival strong-man greeting contest. Don’t squeeze. Don’t twist. Don’t get too close. Don’t pump furiously as-if your customer will somehow begin spewing crude-oil making you the first human oil well millionaire. Just shake hands firmly, look your customers in the eye, smile and release. Say it with me now, Shake, look, smile and release. Shake, look, smile and release. Shake, look …

6 – Pinky rings.

Enough said.

7 – Hovering.

This is the body distance equivalent to staring at someone. Many customers, even if they have been in your store before like a little alone time. They like to see, touch and think on their own, uninfluenced and unhurried by the presence of a salesperson. Let them. And no, standing seven feet away and pretending to dust your fake ficus plant doesn’t count. Customers can tell when you are just doing busy work to stay in the area. Space is important. If a customer wants to look around your store by themselves let them. They will feel more comfortable about you and your store, and then probably ask better questions, moving them even closer to a purchase.

8 – Asking to help them too many times.

Michael Gerber, author of the E-Myth, did a bit of research and discovered why sales people ask customers, “May I help you.” Even after all that has been written and discussed about how that is an ineffective opening sales question, sales people still use it. Gerber concludes that sales people either subconsciously or consciously sales people ask that question because they know what the answer will be: “No thanks. Just looking.”

Why would sales people then ask that question? It gets them off the hook from an uncomfortable situation. Some people want to avoid: 1.) Talking to people who might be less than accepting 2.) Talking about products they are unfamiliar with 3.) Doing any work.

And sometimes sales people don’t have any other approach. So they keep repeating the same, “May I help you.”

Come up with other ways of interacting with customers. (Or check back with us. We’ll do some cool ones in a future column.)

9 – Steering to the expensive stuff.

Customers know that products come in all sorts of price ranges. They also know that some are a better value than others. Customers also know salespeople are often commissioned. And without properly gauging what a customer needs, immediately steering to the expensive items can turn some customers off. They feel as if you are more interested in your commission check than you are their needs.

Ask questions about what kind of riding or what kind of performance they need from the products. Use your skills to discover their needs. Then direct them to the right product that has the functionality your customer is looking for, regardless of price (and by the way it may be the most expensive item you have, but now you have done the work necessary to make the recommendation and customers will understand why you are showing them the big money item).

Do this and they will be back again and again and again. And this will be much better for you and your dealership than a one time high dollar sale.

10 – “When salespeople tell you to smile.”

You’re just trying to be enthusiastic. You’re just trying to communicate that shopping in your store is fun. Be careful. You never know what is going on in a person’s life. They may have just received bad news or are thinking about an important issue in their life. And actually what this communicates is that you are making a judgment about them and that they are somehow deficient.

Instead try mirroring their expression. Not in an over exaggerated, mocking kind of way, but rather one that shows empathy for what they are feeling. Then if you want customers to understand how much fun your dealership is, show them, don’t tell them. Smile when interacting with other employees, smile when you discover a cool product or tell a great motorcycling story, this will send the message that your place is fun and exciting and you will show them instead of telling them. And who knows even if your customer is having a bad day, they may just smile after coming to see you.

Understanding what customers are thinking is an important aspect of successful selling. Use these ideas to help you better understand what you do and how those behaviors can be interpreted and misinterpreted. Avoid these closing killers and remember your performance matters.

© 2009 Mark Rodgers All Rights Reserved.

Unlock Your Store’s Potential: 10 Strategies To Increase Sales In 2010

Strategy #1: Conduct a Comprehensive and Objective Store Evaluation

Why Conduct A Store Evaluation?

The evaluation is a method in which the store owner and staff can quickly identify potential problem areas both inside and outside the store that may be reducing potential turn-over, which results in lost sales and profits.  It’s also a potential way of identifying problem areas that may be causing lost customer base of existing and new customers.

A regularly planned evaluation will condition yourself to see your store objectively (the way customers see your store).  In other words, to force you to take off the rose-colored glasses and see your store as it really is. Since most retailers “live” in their stores, they become too acclimated to their environment and eventually never see the “trees for the forest”.

An evaluation helps the store owner develop a game plan that will enable them to correct any problems that may have been identified on a timely and scheduled basis.  It will give them time to make adjustments before the “smoke” turns into a “fire”.

Once the evaluation is completed and acted upon, will give the store owner the ability to maximize sales,(especially impulse sales), to enhance the overall image of the store.  It will help to create greater loyalty among existing customers while attracting a growing base of new customers to the store.

To create a positive “First Impression”, in the eyes of every shopper that walks into their store-everyday!

Strategy # 2: Take Control!  Create a Customer Traffic Flow Pattern Throughout Your Store

What Is Traffic Flow?

Traffic flow is a retail concept that seeks to separate “customer space” from retail selling space.  Customer space is that area a shopper uses to move from place to place in your store.  What you as a store owner must decide is, is your store “customer controlled?” or is it “store controlled?”  In other words, does your store tell the customer where to travel and what to see, or does your customer go where he or she pleases?

Traffic flow is the life blood of retail store health and success.  Effective traffic flow (the loop), will provide opportunities for every shopper to be exposed to all key merchandise areas of your store.  Without a designated traffic flow pattern (the grid), many customers will get accustomed to your environment so much, that they generally travel down the same path on each and every visit and return to exit out the same path.

Paying careful attention to your store’s traffic flow patter in on of the most important considerations a retailer will be one of the most important considerations you will ever make.  Neglecting this critically important design element will result in dissatisfied customer, lost sales and decreasing profits.

A traffic pattern can be developed as simple as applying commercial aisle tape by 3M, number 471-2” wide to any hard surface floor material.  Those with fully carpeted surfaces can create their traffic loop in their store by cutting a path in the carpet and installing vinyl tile squares.

Strategy #3: Invest in Quality Fixtures

Fixtures are an “Investment” not an “Expense”

In order for any store owner to be successful in merchandising must first have the right tools in which to merchandise.  Those tools are fixtures of top quality and possessing the three main qualities of a “good” fixture:

1. Adjustability- The ability to adjust horizontally in small increments to be able to maximize cubic space in the retail environment.  Example: Shelving on a gondola unit or glass shelves in a showcase.
2. Flexibility- The ability to adapt to assorted accessory add-on equipment to adapt to product changes within a merchandise category, Example: shelves with peg hooks with wire baskets on slatwall or peg board.
3. Mobility- The ability to be mobile with the least amount of effort by one individual.  Example:  Garments four way rack with casters, glass tower and base with casters.

Strategy #4: Practice the Seven Basics of Merchandising

Merchandising Creates Sales

Effective merchandising of your products will do more to increase sales than any other single thing a retailer can do.  Merchandising is a term that describes the promotion of merchandise sales, by coordinating production and marketing, and by developing advertising, display and sales strategies.

Merchandising is both a science and an art.  To effectively merchandise your products you must understand something about the psychology of buying, your customers, the products you sell, and how those products should be displayed in your store.  To maximize your efforts each and everyday you’re open for business, you must learn and adapt these seven basics of merchandising as if they were a part of your “soul”!

1. Every day is Grand Opening Day!  The store must be Clean, Clean, Clean!  No Excuses!
2. Front face your products daily!  Each and every product on a shelf or hook must be brought forward to give the impression of “fullness”.  Don’t leave the impression of your products being half-full or half-empty!
3. Spread to fill!  This technique helps maintain that “full” in-stock look each and everyday.  By taking excess merchandise next to an empty hole on the shelf or empty peg hook and pulling product from behind to fill the hole, will leave the impression you are always in stock on your products. Don’t wait for the “empty hole” to fill itself waiting for the next order to come in, there may be another UPS strike!
4. Color block your merchandise!  Color blocking is a technique that takes advantage of your product’s packaging and color of loose products such as, apparel and merchandising them in a vertical fashion rather than horizontal.  Since customers are first attracted by color, then style and price is last, you’ll want to take advantage of this technique where possible in your store.
5. Practice the two finger rule!  The two-finger rule refers to a technique that enables you to maximize the use of your vertical display space on shelves and other fixture systems.  The two-finger   rule states that your products are space so that the top of the product on a shelf comes within two finger widths of the bottom of the next shelf above.  This will vary as your products do because of non-uniformed packaging.  Your goal is to utilize as much vertical space as possible for the display of your products.
6. End-cap merchandising!  End caps generally refer to the end unit on a gondola type fixture with a base.  End-cap merchandise should be one-two “like” items and no others.  End-caps are your feature, promotional display areas in the store.  The goal is to use the end-cap display to set off the featured products from all the other products.  End-caps are used for general merchandise as well as sale or promotional products.  Change end-cap merchandise every 2-3 weeks as a golden rule.
7. Tonnage, Seasonal and Promotional Merchandising!  Tonnage is a retail term that refers to buying large quantities of an item and creating a special merchandising display unit.  Effective   tonnage displays will require commitment of buying large quantities of product.  These products are generally boxed goods and should never set on the sales floor.  Construct a raise deck or platform to raise the product off the floor, which shows the customer you respect the products you sell and in turn they will buy the product.  Just look at what the grocery stores do to their tonnage displays-how often do you buy from these units?

Merchandising is both a science and an art.  Some of the most effective merchandising techniques available to you involve nothing more than common sense.  Others involve some study, learning and application.  Do not hesitate to work with a professional store merchandiser to become familiar with the specific techniques that will benefit your stores success.

Strategy #5:     Hire, Train, and Retain Quality Employees

Developing a Winning Team

Winning stores recognize the importance of developing a strong team of dedicated, productive and customer-oriented employees.  Therefore, as you consider the human resource needs of your store, you must be very clear in communication your expectations to every potential employee.  Before you advertise to fill a position vacancy you must first have thought through your expectations for the position and for the person performing the duties of this position.

Prior to hiring any employee, you should give serious consideration to addressing the following tasks.

1. Develop a realistic assessment of you staffing needs for the next six to twelve months.
2. Develop specific job descriptions for every position you anticipate filling.
3. Believe that employees are the “most valuable asset” in your store.
4. Attract the “best” and “brightest” talent.  How? By better hiring practices, developing results-oriented training, recognize and reward for results, and believe in “People-Centered Leadership & Management”.

Strategy #6: Develop and Implement a Policies and Procedures Manual

Why you need an employee handbook!

As a business owner, you should make the creation of an employee policies and procedures manual one of your top managerial priorities.  The purpose of the policies procedures manual is to provide your employees with a comprehensive summary of your company’s policies, principles, standards, expectations and procedures.  It will address important matters such as; define company policies, to inform new hires, to establish uniform standards, to serve as a resource for answering employee questions, to promote teamwork, to maintain compliance with applicable laws and to facilitate employee orientation programs.

To create proper inventory turnover, you must first educate, teach and train your staff to be the best that they can be.  They must know where they stand within your company’s frame work and what their specific duties, responsibilities and expectations from you, are going to be.  It becomes absolutely necessary that every store operation or business, no matter what size, establish written policies and procedures manual.

Strategy #7: Make Quality Customer Service Your #1 Priority

Service, Service, Service!

Need I say more?  Without customer service, you as a retailer will be out of business in a “heart-beat”!  If you don’t take the necessary time and energies to train your staff on who pays their salary, and develop their skills in providing the best customer service available, you’ll be gone in a, “heart-beat”!   Everything you or your staff do in your retail environment, is under the scrutiny of the customer.  They will literally judge their shopping experience solely on the way they were treated that day.  If they felt neglected, insulted (through the five senses) or disappointed in their shopping experience, they will probably not return.  Can you afford the loss of a customer, (per day)?

Train your staff to be  service oriented individuals  with each and every customer and you will sell more products.  Customer service is the one price customers will always be willing to pay for.

Strategy #8: Practice ‘Perpetual Remodeling’

Define ‘Perpetual Remodeling

Perpetual remodeling is an on-going remodel program established after you have make a major remodel to keep your store looking its best each and every year.  By constructing something new on the outside or the inside or your store, you’ll always be considered a “destination” store, that customers want to visit because something new has happened and they don’t want to miss out.  All too often when a remodel is complete, it isn’t touched again for another 5-10 years.  When this happens, the store starts sliding backwards in image, style and newness which causes customers to start shopping elsewhere.  Customers want something new and fresh.  That’s why many consumers buy new cars, houses, clothes etc., every couple of years to make them feel good about themselves.  The customer will seek out those retail outlets that offer change, variety and accepting it as a way of life.

If you don’t change a little something in your store each year, your products are going to go to sleep.  Your customers will become as accustomed to your store environment as you. The more acclimated they become, the less they see when shopping your store which means fewer sales, especially impulse sales.  So, believe in that change is “good” as long as it’s controlled change with a plan every year and a budget!

Strategy #9: Plan for Future Remodels

Budget 1-3%

Each and everyday you open your doors for business you are making sales, (hopefully)!   Out of those sales you should, without thinking, take out 1-3% of gross sales to put away for your next major remodel or to do perpetual remodeling.  Keeping your store it great physical conditions will generate a tremendous amount of sales that could never be experienced by those who never remodel or do it every ten years.

This 1-3% could be used for many purposes including, on-going building repairs and maintenance, fixture replacement and repairs, new employee training, new employee uniforms  and store expansion.  Because everything “costs more than it costs”, you will have the needed funds for what needs to be accomplished.  It sure beats having to dig up a loan somewhere!  Save, Save, Save for that rainy day, you’ll be better prepared to react to changes to make your store the “Leader” not the follower.

Strategy #10: Make Every Day Grand Opening”

What is Grand Opening?

Grand Opening is more than what it appears.  Most people store owners and staff alike, believe Grand Opening is a “one-day to one-month” event and then it’s over.  They couldn’t be more wrong!  Can you remember your last Grand Opening and what it was like, excitement, newness, fresh, clean and sparkling?

Can you tell me if your store today still has that same feeling?  Probably not!   In most cases, Grand Opening is just an event just like a holiday, it comes and it goes.  Well, if you’re the “smart” retailer who wants nothing but sales will think and believe in that Grand Opening is everyday!

There isn’t any justifiable excuse for anyone in retail to let their store slip back into the dark ages after their initial Grand Opening ceremonies.  It must be on everyone’s mind each and everyday that their store is the best that it can be and to say to every customer, “today is Grand Opening”, come on in and shop.  Let the customer enjoy you Grand Opening on every visit and they will reward you by purchasing more of your products.

It’s up to you-”Success or Failure”?  You Hold the Key!

Copyright © 2009 James Rasmus All Rights Reserved.