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Stop complaining about the “Boxes” and “Mass Merchants”!
by Graham Bush from THE BUSH KITCHEN………….food for thought!

For years now I have constantly heard the ‘moans’ about competition – especially the Mass Merchants or Boxes.

To a lesser or greater degree your opposition (the Mass merchants) are selling what you are selling!! So what’s different….PEOPLE!! …or so it should be!

Your staff needs to be motivated! Competitive salaries, benefits, keeping them informed, bonuses, incentives, empowerment, training, business cards etc. etc…..you have to do it!

Consumers expect better service from independent retailers, and retailing is about consumers, and their expectations of your store.
You need to train your staff – product knowledge, supplier training, and train staff not to say “no” to customers! (That must be a management thing!).

Management need to constantly remind their staff about service.
How about this - Institute a 3 metre rule!! In other words, if any staff member is within 3metres of a customer they must acknowledge, greet, offer to help etc.
Management must walk the talk!!
Management need to communicate more often with their floor staff. What’s selling. What’s not…what are people saying etc.etc.
You and your staff have to try and remember customer’s names; use names from credit cards etc….make them feel important.

Your trading hours should be dictated by consumers, suburbs should stay open later to allow for commuters to get to where they live and prefer to shop.
Think about extra staff for peak periods, consumers don’t like to wait! (Lunch hours/weekends/public holidays/holiday seasons etc.)
You must not follow the “Boxes”…rather lead them!!
Offer free coffee…percolated!
Another marketing idea is to get more into Niche markets. Do what the opposition is not doing….eg.fasteners, Christmas, house wares, rental, gas filling, timber and glass cutting, deliveries, art and décor etc.
These ‘Service’ facilities will set you aside from the opposition; you then become a “WE DO” store! – And promote it!

Your product offering needs to create “One –stop shopping”
Boxes are told what to stock by their Head Office, independents can make immediate decisions!
Have a policy, “If we don’t have it, we can get it within 24 hours!”
Ask your customers what they would like to see on the shelves.
I have often used the analogy of being presented with a menu in a restaurant – I can only order what’s on the menu! – And never has any restaurant ever ask me (their loyal customer) what would I like to see on the menu! Keep asking your customers; “What would you like to see on our menu?

In today’s challenging trading conditions, you need to reduce staff turnover in your business. (If it is a problem?) Boxes will/are pinching your staff! – Ask yourself why?
Some great ideas to motivate your Team members:
Make sure you know ALL your staffs’ birthdays, provide a cake with THEIR name on!!
Provide lunch now and again.
Provide uniforms and name tags and business cards.
Issue Service awards.
Provide a staff room. (I know it’s not always easy!)

I believe that it is vital that you treat your staff the way you wish them to treat your customers!

Institute a NO Hassle returns policy…..even if you don’t stock the item, even if it wasn’t bought at your store! You’re getting or keeping a new customer! Cheap at the price!

Mass Merchants have a perception of low prices, through mass media price advertising, especially on KVI’s. Get to know your opposition’s pricing better….regular shop-outs. Let your staff do these, it gets a different prospective, and keeps them involved!
When opposition advertises on price…meet that price…market demands it!
Sometimes you will have to loose money…live with it!! Look for margin elsewhere….shop-out on non-advertised products….you’ll find margin there!
Another idea is to take advantage of pre-price increases; buy in to allow for extra margin; but be mindful of stock turn, cost of borrowing etc. (That’s another article altogether!)

Stay in constant touch with your consumer…..write to them, get their addresses / emails etc,from competition entry forms, feedback forms etc.
Put more “F” words into your business!
Be Fast, Friendly, Flexible and have Fun in your business…Boxes cannot do this…EVER!

So what are some of the weaknesses of the Boxes…Service, cant find items, poor shopping experience, width of range, expertise, general quality of staff, slow reaction time, etc.
And what may be some of your weaknesses?…width of range, ignorance of competitors, willingness to change?

Is there a BIG BOX EVOLUTION??

Originally Boxes targeted consumers with price driven promotions to DIYers only.
This has now evolved to: Meet more needs of DIYers, persue contractors and building maintenance markets, penetrate do-it-for-me markets.

Boxes are responding to changing markets…WHY?…because they follow and research the market extensively. They anticipate future market conditions and proactively develop future opportunities.

They have the best stock management in place! And they shop your stores!!! (Again we will discuss Stock Management in future articles)

Most independent retailers are constantly focused on uncertainty…..economic fluctuations…difficult customers……abnormal weather patterns etc.

You need to start to second guess your future! And none of us have a crystal ball!

Remember, Boxes don’t come to town to co-exist with you…they come to make money, take your market and TAKE YOU OUT!!!!

You CAN compete AND flourish!! I believe that you have 3 choices…

1. WAIT AND SEE WHAT HAPPENS
2. DO NOTHING
3. TAKE ACTION IMMEDIATELY

Once you know a Box is coming into your market, or they may already be there; you need to develop a strategic plan AND STICK TO IT.

SO...THE PLAN...
The Plan boils down to the following key areas of your business:

· Range
· Pricing
· Employee Retention
· Customer Service
· Advertising
· Promotions
· An other
· An other
· Etc

RANGE
Stock control, stock management
Always in stock of core items
Out of stocks = lost sales=dissatisfied customers

If you don’t have it your opposition might!
Consumers want convenience and variety.

PRICING
Boxes attract on advertised low prices, they may have loss leaders on selected items.
Most have price matching / beating policies.
For independent retailers, comprehensive managed pricing strategies are a must!
Managed pricing enhances your price image and your stores’ overall gross profit.
By regular shop-outs, your store’s pricing will always be competitive.

Consumers prefer to shop at stores where they PERCIEVE they are getting good VALUE! – That doesn’t mean cheap prices!

By communicating constantly that you provide superior products and services, and competitive prices, you can demonstrate that VALUE that your store provides.

EMPLOYEE RETENTION
As an independent retailer, your employees are your biggest asset,
And their ability to interact with customers can give the right product for the job, as well as solve common customer problems. These are crucial for the success in combating any opposition.
Employees should provide impressive service. Recruiting and retention are perhaps the two biggest challenges independent retailers face today. My best advice is to employ on personality! - You can teach knowledge!
Boxes will target your BEST employees; offer them more money and benefits.
I feel that most employees work for more than just money….create that ‘family’ environment!!
Offer, benefits, health, pension, buy at cost, etc
Be concerned about their families, get to know and understand them!
So, it’s…Attractive packages…Maintain flexibility……Have fun at work!! Oh, and walk around your store seeing what your staff are doing right! – And praise them!

Customers prefer to shop at stores where they are well treated and receive good value…….customers like dealing with happy people!!

ADVERTISING
Boxes have a high profile Advertising campaign…..price based!!!
You need to dedicate about 2% of Sales to advertising/ promotions
Promote your services…and only advertise IN YOUR TARGET MARKET!
Tell your customers why you are so different. Be consistent. Keep your presence known

PROMOTIONS
Have regular demo’s…every Saturday? Create a promotional calendar, keeping to themes, promotions, sporting events, seasons, National events etc.
Get involved with the community, schools, clubs, charities, etc.
Be there for YOUR public!

When a box comes to town, you cannot do things the same way and expect the same results.
Competition requires you to change the way you do business and welcome these changes, and use them to prosper.
You can successfully compete with the Boxes.

If………………

YOU SET A GOAL

YOU BELIEVE IN YOURSELF

YOU STICK TO THE PLAN

YOU FOCUS ON YOUR STRENGTHS

Graham Bush.