THE BUSINESS PROBLEM

The Business Problem

The Business Problem

Introduction

Whether it's due to forces beyond our control, seasonal sales or a decline in foot traffic, many retailers will experience a slump in sales at some point. The following are a few simple ways you and your staff can improve your retail sales.

Survey Questions

Describe how the company is organized, its stage of development, product creation, legal status, location.

How did the product come about?

What is the company's purpose?

What is the company's mission statement?

What is the biggest problem facing management?

Has the company established an advisory board?

Who is the corporate legal counsel?

What type of insurance is needed for this business? (Please disclose a summary of all insurance coverage.)

Has the company completed all appropriate corporate filings?

Does the company have all necessary licenses, building, and operating permits?

The Business Problem: When the Sales are down

Whenever anything noteworthy happens within your business, send a press release to the media. The idea is to grab any free coverage possible. Get involved with community events. Consider hosting classes, meetings or other networking events in your retail store. Use a unique promotional event to generate a buzz about your business. When purchasing and pricing products, be sure you've considered the cost of goods and that your retail shop is able to make a profit at that price point. Your product price should be competitive, but still profitable. Ultimately, the right price is the price the customer is willing to pay for the product.

What if half of consumers move to another size of a de-listed SKU, but the other half go to a competitor's brand? This is the central issue, of course, and the reason for thorough analytics and testing around consumer-switching behavior. Clearly, these portfolio decisions need to target only situations where revenue will remain flat or grow. So, we have to think differently about this elimination business. When a company introduces a new line or series of line extensions, an enormous effort is made to ensure a successful launch: special introductory pricing, coupons, advertising, sweepstakes, and other incentives to get consumers to switch from their current favorite products to the new ones. Plus, significant thought and marketing resources are put into ensuring that the volume does not cannibalize sister brands and SKUs. Further, the sales organization is energized. You organize sales meetings, develop collateral material, offer sales incentives, and orchestrate trade shows and presentations. The entire company is lined up behind the ...