This post is about buying but here’s a question for you: Do you know what makes a Rolls Royce a Rolls Royce?
Yes they are a totally custom built car. And yes, very expensive. But what makes each car so costly are the redundant systems.
For example, there’s not one set of brakes but three. For a Rolls Royce those backup systems make an incredibly safe ride. That’s why they get a premium price. Continue reading Four Tips How To Avoid Overbuying For Your Retail Store »
When I do retail management training, one of the first things I teach are the financials.
Not the most glamorous, but your financials are the vital signs that can determine right away if you are in need of triage, treatment or just Continue reading Six Quick Financial Results You Must Track in Retail »
When I worked in the coffeehouse business as CMO, we came up with stunning lifetime values of a customer. An average customer order was worth $4, a regular came into the shop once a day for 5 days out of the week, that equaled around $1000 a year. Local demographics were that people moved about once every 4-5 years. Those details let us realize that grabbing a new customer and providing an exceptional experience, if we did it right, was worth about $4500. Likewise if we did it wrong it wasn’t $4, but $4500!
Do you know what the lifetime value of your customer is? How about yearly? Heck, do you track your average ticket? If not you must; it is one of the seven tools I feature in my new book, The Retail Doctor’s Guide To Growing Your Business and in the home study course I’m now creating based on that book.
To help employees realize how important first impressions are, calculate the lifetime value of a customer for your business.
