Elly Valas: Stop Worrying and Start Focusing on Sales

Retailers can find good news during bad economic times of higher food and gas prices, low consumer confidence

July 2008 By Elly Valas

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The government may be afraid to use the “R” word but I know that for many, business has slowed since this time last year. We may not have had two quarters of shrinking national output, but many retailers have had several disappointing months, if not quarters.

I’m no economist, but here are the assumptions on which you can base your forecast for the rest of this year.

1. Oil will not go back to $100 a barrel.

2. Food prices will continue to rise because of high transportation costs and flooding in the Midwest.

3. Consumer confidence is at a record low.

4. Unemployment rose to 5.5 percent in May.

5. Whining won’t help.

But there’s also this:

1. ISPA is forecasting bedding sales to decline three percent in units but increase one percent in dollars.

2. CEA projects that $171 billion in consumer electronics will be purchased this year.

3. 94.5 percent of Americans are working.

4. At $4 or more a gallon for gas, anyone who comes into your store is a buyer.

Stop worrying about the economy and start focusing on things you can control. If business is flat or down, you’ll have to steal market share from your competitors to stay even or grow. In order to that, you’ll have to be faster, smarter, more creative, and offer better customer service.

A recent study, the Retail Consumer Dissatisfaction Survey, showed the top reasons why customers don’t buy. One third reported they couldn’t find a sales associate; 25 percent were completely ignored by a sales associate, and six said they left because associates were poorly trained.

According to a study conducted by Bain & Company, 80 percent of companies believed they delivered a “superior experience” to their customers. Customers of those companies, however, only felt that eight percent delivered an exceptional experience. Ouch.

There are consumers who want to buy the products you sell. They don’t want to drive around wasting expensive fuel trying to find good values and exceptional service. Let them know that by coming to your store first, they’ll find wide selection, sales expertise, great values and full service.

Act like a job applicant-after all, you’re trying to get “hired” as your client’s trusted advisor-and create a resume to convince prospects why they should buy from you.

Meet with your team and list the ways your company differentiates your customer’s buying experience. Don’t forget to tout your extended credit terms; delivery, repair, service and installation departments; experienced sales staff; extensive displays; and brand-name product selection. List your no lemon policy and your price guarantee.

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