ONE OF MY favorite sayings is, “The definition of insanity is doing the same thing over and over again and expecting different results.” Think about that. Does it apply to the way you run your company?
You could have had your store for 30 years, and think, “Hey, if it ain’t broke, don’t fix it.” But it is broke; you just haven’t noticed it. (Check the chart below to see just how much things have changed.)
In 2011, you’re insane if you think you can run the store the same way as in the past. You might have grown up with customers in your age bracket, but the future of jewelry sales are those 24-30 years old. Baby boomers are spent! Younger consumers want:
- A fun, wow experience.
- Competitive prices. They don’t mind paying for what they want and they don’t mind waiting for it (think special orders and custom design).
- Exquisite customer service.
- Access to your store and everything about it on a nice website.
So what are you going to do different to make your business grow like it’s 2011 rather than 1977?
- Most important thing: Believe that successful retailers of all types dump old inventory at the end of the season. Why? Cash flow — so they can buy new stuff that will sell.
- Renovate the showroom: New coat of paint, new displays (get rid of those stupid boxes in the cases, for crying out loud!). New lights, replace scratched glass.
- Better signage: Inside and out.
- Buy based upon price points, style and how it will look in the cases. Don’t overbuy.
- Renovate the sales staff: Bring in a dress code. Front and back. Institute a bonus plan that if they do well they can earn a minimum of $100 a week in extra cash. Anything less is no incentive. Get rid of slackers. Consider that instead of more sales staff, you might do better with an administrative assistant for yourself.
- Start advertising 12 months of the year. Cut Yellow Pages spending; billboards do well for almost everyone. Try radio and cable. Do direct mail. Collect e-mails and send out a blast once or twice a month.
This story is from the May 2011 edition of INSTORE