Like a new mattress?

How about a new crown?

Maybe a new refrigerator?

Or a hair cut?

Just about any product or service business can say, “Oh, I’m different, my customers can put off purchasing a new ___ or fixing the ___; they can wait.”

But that’s the problem isn’t it? They CAN’T wait.

It’s not like that Star Wars DVD you place on the shelf and it will still be there, exactly as you left it.

What happens if you put off that new mattress? The mattress you are currently using continues to deteriorate. Your back gets sore.  Your legs get more restless. You toss and turn.  Your deep sleep declines. You wake up more grumpy. Less rested. Less happy.

Oh sure, you can take something like Dream Water, Unison or prescription strength Ambien. But those don’t solve the problem, do they? In addition, you might have trouble waking up until you drink 5 cups of coffee which just compounds the problem when you try to get to sleep that night.

You see where I’m going?

No different than the dentist who told you to get a new crown. You think, “Oh, I can put it off.” And you do.

So you chew your mom’s delicious buttermilk fried chicken only on the left side of your mouth. You wince when you take a drink of cold water. Meanwhile the decay continues.

When you finally are ready to return to the dentist, you find you need a root canal. So could you really wait?

If you can’t find the passion to explain why waiting is not an option, you’ll never make a sale in this economy.

And the more expensive the item is that you have in your mind can be “wait-listed” the truer this becomes.

That means you window covering dealers who have bought in to that idea customers can, will and should wait. You need to find be able to convince them how it is a savings, not a cost.

That means you motorcycle dealers who have employees who are waiting themselves and commiserating with potential customers on your sales floor instead of having them go for a test ride.

That means you flooring dealers opting for peel & stick over hardwood or tile because “a bird in the hand is worth two in the bush.”

That means you reader of this blog – what are you “waiting” for?

Can you tell if your employees have bought into the waiting game? Look at what they are showing to customers. If they start and end with what is the cheapest – you’re sunk.

Don’t wait any longer! Get your hands on sales training or bring the Retail Doctor to your business.

Otherwise, you’ll continue to use the recession as your excuse to do poorly.

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Well yes, I guess that is true to some extent.  But I think the world needs what you have to sell.

I was selling when I was 3

Take coffee for example; everyone knows it.  If they were to blind taste-test it, I’m sure 90 out of 90 people could tell you, “that’s coffee.”  But is it good coffee? Is it bad? Is it old? Is it to their liking?  All of that comes about by educating customers as you sell them.

For example, as a coffee drinker, do you know why the coffee you make at home doesn’t taste as good as the coffee you like at the big chains like Starbucks or Peets?  Here are a few facts:

Since coffee is 98% water, they use a reverse osmosis system which removes microorganisms, organic chemicals, and inorganic chemicals, producing very pure water.  Most people use tap water full of impurities and chemicals.

Since coffee loses 25% of its’ flavor within two weeks of roasting, they only use coffee roasted within days and keep it whole bean until just ready to brew.  They store it in airtight containers.  Many home users store their coffee either whole bean or ground in the refrigerator freezer where it can absorb flavors and the delicate oils can degrade.

Since the true flavor of coffee is produced by the oils which rise to the surface of the bean during roasting, the beans are ground which allows more surface for the oils to mix with the water.  Most home grinders slice and dice the beans which also builds up heat degrading the oils.

Coffee oils are what make it delicious

Since you only have one shot at getting the oils from the beans, they use water just off boil to flood the grounds and drain quickly which releases the oils but leaves the “graininess” of the beans behind.  Home brewers often recirculate the coffee back over the grounds which brings out the grainy flavor.

Since the beans are to be brewed for drip coffee, they grind the beans specifically for that brew method. Many consumers use a generic grind which can be too large letting the water go through too quickly for the oils to release or too small letting the coffee’s more bitter flavor come through.

Since the oils are what makes the coffee, they use a lot of coffee, about two tablespoons per 6 oz of coffee, that’s about a ¼ cup for a 12 oz mug.  Most people use half as much which results in a weak brew.

Most people use a cheap coffee maker which never gets the water hot enough and then keeps applying squirts of coffee over and over to the beans which gives a weak brew, more like dunking a tea bag than brewing the coffee.

Since coffee begins to break down after brewing,  chains throw out unused coffee on a regular schedule (usually within two hours) and they never put on a burner or reheat.  [Except in Canada where consultant Doron Levy posted about Tim Horton’s] Some people actually reheat coffee in the microwave.

Do you need all that information? Do you want all that information?

An Analytical personality probably will want all the nuanced details which make the coffee better.  A Driver personality could probably have a taste test with a cheap Krups $39 machine and a Capresso $219 machine with the salesperson demonstrating how the coffee tastes and let the customer decide.

The problem is 63% of the world, the Expressive personalities and the Amiable personalities, will be overwhelmed by much of that information and even the price tag.  They often settle because no one ever took the time to show and sell them the differences of what it takes to get as close to their favorite coffee house taste as possible.  So they settle for the $39 machine because Macy’s has a coupon, robbing themselves of the experience of a great cup of coffee in their home; especially if they are trying to save money by making it at home in the first place.

I used coffee in this example but it could just as easily be window coverings, flooring, cashmere sweaters, you name it.  Price doesn’t make something a good value – people do – sales people do.  Until you and your crew can understand and model that, you’ll be stuck with a race to the bottom cutting profits and crying the blues.

You want to succeed in 2010? Remember, the world needs what you have to sell!

To learn more about the various personalities and how they play out in your crew and customers, pre-order my new book, The Retail Doctor’s Guide to Growing Your Business (Wiley & Sons) shipping mid-April.

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The gist is that Bill Rancic, winner of The Apprentice and a “tech guru” and “designer” have 48 hours to transform the attitude and the operations of a small independent business.  And they are all about the attitude – their own.

A & E's Newest

From the moment they sweep into the shop everything is terrible and they have come from the mount to save the poor wayward fools at, in this case Berry Elegance.  The designer has to be the most annoying person ever seen on a business program.

Don’t take my word for it, look at their promos; which were worse!

I’ve done business makeovers for nearly twenty years, including for the Los Angeles Times.  They are never fun or easy but one thing I learned early on was that you don’t belittle people – especially in front of their employees.  Not here, that must be part of the “fun” of having a reality show purporting to show people how to manage their business.

What interests me about this show as well as Bravo’s, Tabatha’s Salon Takeover is that the “experts” come in, denigrate the shop, fill it with new fixtures and (since We Mean Business is sponsored by Dell – lots of new computers) they go on their way because they said that was what was truly needed.

Now don’t get me wrong, I am a big believer in sprucing up a shop. For Berry Elegance, it looks like they copied Godiva’s and it sure did look great!  Many of the ideas had merit including the use of color – if you could get past the condescension.

I think what will further distance viewers is to realize they don’t have the kind of money to pour into their business for new fixtures, signage, plasma screens, registers and computers.  And really, who needs to scan a barcode for a one-off shop that has very limited skus?  We’re talking a shop for chocolate dipped strawberries here.

They could have counseled her that a 5% online discount is worthless on a premium product. Instead of showing who’s eating them – how about trying to sell them with descriptive text?

And if you are going to have a blog Berry Elegance - especially if you are going to be on national television – update it for gosh sakes!  A & E visited them in June, the last post was March 13 – didn’t the “technology guru” think to look at their website at least once?

These reality show makeovers would lead small business owners to conclude the magic bullet is in the physical attributes of the store.  Nothing could be farther from the truth.

If you watch the follow-up clip on A & E’s site, you see how Amy, the co-owner of Berry Elegance is in just as much trouble as before but in a much nicer space.  In fact the employees and her co-owner Todd Jones have left Ms. Stipa to run the shop on her own.

Those great embroidered white chef’s aprons given as a parting gift from Bill and the gang? (Spot on Bill by the way!) Nowhere in sight.  She did hire a PR person to get in front of celebrities which got a large order – but at what expense?

The clip shows her ringing up a $6.50 sale.  Selling is a big problem for this owner which was ridiculed but largely unaddressed. My Five Parts To a Successful Sale retail sales training DVDs could help http://retaildoc.com/products/rxwhatyouget.htm .

Change takes time; meaningful follow-ups are what are needed whenever a business makeover is completed.

There are pitfalls to any business whether it is new, old, successful or struggling.  What you have to remember about reality shows is they are designed to make it look easy and to hype the tears.

To help you get real results right now, you can find a few of my ideas how to market your business at http://retaildoc.com/articles/market-yourself-article.htm.

And if you are looking for a host of a reality show based on results and not hype, give me a call; the Retail Doctor makes house calls.

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While I was finishing college,  I applied for a job at a western wear store. It was actually a growing trend back when Dallas and Dynasty were just beginning their meteoric rise.

I aced the job interview but when they asked if I wore western wear I confided I never had. They had a program where you could buy a pair of defective Tony Lama or Justin boots for $50. It was seen as a good way to get employees into wearing the better merchandise the store sold without breaking the bank. I got a pair of plain brown Justins. They felt good but something was off in the heel so after awhile, my feet actually hurt; working my 9-9 days were murder.

I’d do my best to tell people all the features and benefits of Justin, how they were a hand-pegged 3/4 welt which meant it was stitched 3/4 around but 1/4 had an extra amount of leather removed under the arch, around the shank of the boot with lemon-wood pegs to hold the boot together. Those pegs allowed a better fit and lemon wood swelled and shrank with the moisture in the leather soles so they didn’t fall out.

3/4 hand-pegged welt

I tried my best to get people to buy them for $189 but inside I knew I hadn’t believed in them enough to buy a good pair myself; I settled.  This led to me not pushing through to justify the product but fold my tent and suggest something cheaper or for them to wait until they went on sale.

Could that be you? Are you a window coverings store only able to sell the honeycomb shade because that’s all you’ve put in your own house – at manufacturers cost.  Do you sell Tag Heur watches only to wear a Swatch yourself?  Do you sell Cadillacs and drive a Ford? Do you silently believe your own product is too much? Maybe you feel like a fraud.

One day I realized the market for exotic boots was hot; the more I sold the quicker I’d make my store sales goal so I purchased a pair of Tony Lama pieced ostrich boots. They were not a full skin but for $399, they were still a huge step up.  Since my personal sales went up, I purchased a pair of custom Tony Lama El Rey full quill ostrich with inlays.  When a customer said they “couldn’t afford it,” I could easily sell how much enjoyment I got out of paying more and getting more.

El Rey Tony Lama Ostrich Boots

When a customer can’t decide on whether to take their big old pile of cash in the bank or credit on their card and make the premium or luxury choice, you need to know what it took for them to purchase.  That comes from owning the product yourself.

Then you can empathize with your customer that it seemed like a lot of money to pay but you found x, y, and z once you owned it.  Without that first hand experience, you’re like a priest telling a newlywed couple what the wedding night would be like.

Buy one of your premium products this week, experience the reservations that a customer would, know the joy of breaking through those reservations and enjoying the product – do that and you’ll find you’ll be able to speak from the truth rather than trying to give a snowjob when selling your premium merch.

If you’re ready to sell your merch better, take a look at the opening five minutes of Sales RX at http://www.youtube.com/bobphibbs#p/a/u/0/tEAaExPRlKQ

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“Last Saturday, my just-divorced friend and I spent two hours browsing Best Buy (breaking my previous record by about one-and-a-half).  After a long and icky battle, she and her ex-husband finally made it official, and she was excited about trading her “perfectly good” (according to her dear ex) Flintstonian, room hog of a television; receiver and speaker set-up for a streamlined home theater system.  She’d asked me to accompany her because she was “clueless” about technology yet ready to splurge big time; she wanted me to have her back.  BTW, both my friend and Mr. Ex had enjoyed soaring salaries even during the recession, so funds weren’t the issue.

Every minute of this visit reeked of “customer centricity.”  The sales associates could not have been more professional:  the first one deftly guided us through computer speakers— though they were not even on my list, I started poking around.  Plugging his iPhone into the demo unit and flashing a conspiratorial grin, he took me up on my dare to crank up the volume on the $150+ Klipsch set . . . and when it came time to head to Home Theater, his seamless hand-off to a senior associate was a real thing of beauty.

Once there, we were treated to an effortless non-pitch that had Senior Blue Shirt translating the latest in TVs, receivers and speaker sets from high-tech to low res without so much as a whiff of condescension.  The more time we spent with him, the more confident my friend became in her decision to make an investment that would surpass any she’d personally made in the last ten years.

The power session wrapped up with Senior Blue Shirt offering to write up everything he had recommended, and that’s when the sale started going off the rails—and here’s why:

The five minutes that he was gone was just long enough for my friend to lapse into doubt mode, even though I was fully supporting the vision for the new home theater.  Nothing that couldn’t be overcome at that point.

When he got back and began walking us through the quote, the situation became unnerving for a few reasons:

Installation – What had previously been described as a fairly straightforward process suddenly got more complicated.  First quoted as a general estimate of “about $300,” the installation fee then morphed into a “range” of “$100 to as high as $800.”  Of course there are reasons for the range but that provides no comfort for the wide variation.

Delivery – Another unexpected complication, as visions of Geek Squadders magically appearing with everything—plugging it all in and turning it all on—regressed into to a two-phased commitment that would include greeting a trucking company for the television and Geek Squad for the remainder.  AND, it was revealed that the non-TV components would need to be brought home by my friend while the centerpiece of the system, the television, would be brought by the trucking company in “a couple of days.”  Not exactly seamless nor efficient and some of that stuff looked pretty heavy. That shut off the instant gratification switch.

Timelines – There was no discussion of specific timelines; only ranges.  Senior Blue Shirt’s low-pressure accommodations gave my now-skeptical and fearful friend “permission” to leave the store gracefully, and that’s just what we did.  My computer speakers were a distant memory by then and no one sought to remind me on my way out.

Back at her house, my friend turned on her perfectly good TV and twenty-year-old stereo and said “You know, I really don’t watch television that much . . .”

What I heard in this story was one of disappointment. The customer felt they had made a friend, one willing to help them out, one who could make it simple and one who “got them.”  Their disappointment came when the customer found an overwhelming array of “yeah, buts” that greeted them at the end.

How to get past this? Pepper possible disappointments during your presentation to soften any blow about timelines, special orders, variation in color, etc. at the end. For example, “We can set the whole system up for you after you get it to your house. If you can’t take the whole system with you today, we’ve got a company that can get the heavy pieces there while you can take the lighter ones with you – just to be sure they don’t miss anything.  Make sense?” Then go back to what you were talking about.

Peppering your presentation with information that could make the customer uncertain or insecure in their choice keeps you as their friend instead of a sudden enemy. Want to read more? Here’s an excerpt from my book, You Can Compete: Double Sales Without Discounting that also ilustrates this point:

At Howard & Phil’s western wear I inherited a store where employees didn’t see how they were making customers insecure.  I could see it when a customer pulled on the boot and said, “Hey these slip in the heel.”
The untrained salesperson replied, “Oh yeah, they’re supposed to do that.”
The customer would walk around then say, “But the front feels tight.”
The salesperson would react and say, “Oh yeah, new boots do that.”
The customer took off the boot and said she’d look around. Next thing you know, she was gone.

To make customers secure, I would train that  while the salesperson was waiting for a customer to remove their shoes, they’d ask, “Have you worn boots before?” 9 out of 10 times they would answer, “No.”

“When boots are new they will slip in the heel and the foot will feel a bit snug. The sole will relax as you break them in which takes about a week of wearing them.”

Invariably the customer would try on the boot and say, “Hey these are loose in the heel.”
The salesman could then reply with a smile“Remember, I told you that?” careful not to smirk.
“Let me walk around in them.”
Salesman, “How do they feel?”
Customer, “They are a bit snug up front.”
“That’ll go away in about a week.”

Because the customer could feel they were safe, we increased that store’s closing ratio by 30%.

In the first scenario, the salesperson was on the defensive, reacting to the customer and losing credibilit;, it let the customer think the salesperson was just a bit dishonest in trying to make the sale.

The second scenario put the salesman in the place of knowledge and power. Because the negative qualities were peppered beforehand, the customer knew what to expect and felt safe, that the salesperson could be relied on for further information.

If you make the customer insecure during the moment they are deciding or paying for your merch or service, you will then be trying to placate a nervous customer. By then though, the trust and relationship are gone and you’re left coming up with excuses to your boss.

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The holidays are almost here so I’ve come up with my blunt reminders for both staff and owners of specialty retailers after seeing Bruce Buschel’s blog in the NYT.  They’re by no means all the “Don’ts” but especially at the holidays, they can make the difference between hearing, “I’ll take it,” and “I’m outta here.”

1. Do not let anyone enter the shop without a warm greeting. If you can’t or won’t do that, go work at Macy’s.

2. Never say it’s “slow,” “dead,” or voice any negative thought, we get enough of that from cable.

3. Leave your problems at the door – no one wants to work with high drama whether that’s your daughter’s lost keys or your boyfriend’s mom had a facial appointment.

4. Don’t come to work sick – ever.

5. Don’t complain about Christmas music, it’s playing for the customers, not you.

6. Don’t arrive late saying there was “traffic.” Of course there was traffic, it’s the holidays. Plan accordingly.

7. Don’t change into work clothes that you’ve had scrunched into your backpack all day – leave the wrinkled homeless look for the streets.

8. Don’t keep asking if you can go home early unless you are prepared to ask if you can come in early for the day after Thanksgiving or Christmas.

9. Never reply to a customer inquiry with, “No” unless it is immediately followed with, “But we have…”

10.  Don’t just ask questions that can be answered with a “yes” or “no.”

11.  Don’t ask if there is “anything else?” Suggest one item that logically goes with what they are purchasing.

12.  Don’t say you’re “not authorized” to give a discount, they’ll just ask, “Then who is?”

13.  Saying, “No problem” is a problem. It sounds condescending like, “ it’s just you – I’d do the same for my dog.”  “You’re welcome” is the “A” answer.

14.  Don’t walk past a discarded wrapper, used diaper or other leave-behinds of customers. Pick it up and dispose accordingly.

15.  Don’t stand in front of the store looking bored.

16.  If you ask, “Did you find everything OK?” listen to the answer and fix whatever is not right.

17.  Never say, “I don’t know” to any question without following with, “I’ll find out.”

18.  Know before approaching a customer who has been waited on. Do not ask, “Have you been helped yet?” Open your eyes!

19.  Never take a return without asking what went wrong. Obviously, something didn’t work and many times it can be fixed or exchanged without refunding the cash.

20.  Do not have a personal conversation with another employee within earshot of customers.

21.  Do not eat or drink in plain view of customers. That means no food visible on a shelf or the counter either.

22.  Never reek from perfume, cigarettes or body odor.

23.  Do not call a woman “lady,” or refer to two women as “you guys.”

24.  Never acknowledge one customer over and above any other, especially the one in line behind others you do not know. All customers are equal, even if the one at the back of the line is your best, wait until all others have been helped.

25.  Do not gossip about co-workers or customers within earshot of customers. Better yet, don’t gossip.

26.  If there is a service charge, delivery charge or special order charge, alert your customer before you ring them up. It’s not a secret or a trick. Likewise if something can’t be returned for a full refund after the holidays.

27.  Know your products inside and out. If you sell Zoobie plush toys that are also a soft pillow and a comfy blanket, know something about Zoobie plush all-on-one toys.

28.  Do not ignore a customer because they are not your customer. Stop, look, listen, lend a hand.

29.  Do not stand behind someone who is looking at product. Make eye contact and stand next to them or in front.

30.  Never blame the boss, the part-timer, the vendor, the weather or the economy for anything that goes wrong. Just make it right.

31.  If a customer is having trouble making a decision, help out by giving them a choice like, “Do you prefer something lighter or darker?” “Something hot or cold?” Don’t just stand there like a dead fish or walk away like they have swine flu.

32.  If someone wants to know your life story, keep it short.

33.  Don’t tell customers you are out of something before they ask for the missing product.

34.  Do not disappear.

35.  Do not ask, “Do you still need some time?” Shopping is not work — until questions like this are asked.

36.  Never suggest ringing someone up until the customer explicitly asks for it. If they are holding many items, ask, “Would you like me to place these on the counter so you can free your hands?”

37.   Do not stop your exceptional service after the order is rung up. Final impressions are lasting impressions.

38.  Never dismiss or patronize a customer who has a complaint; listen, take it seriously, address it.

39.  If someone is yelling or swearing on a cellphone, politely suggest they go outside.

40.  Never hover long enough to make people feel they are being watched or hurried, especially when they are figuring out what to buy.

41.  Do not show frustration. Your only mission is to serve. Be patient; it’s not easy.

42.  Don’t ask how customers are. You don’t care, they know it.

43.  Don’t ask customers if they have a budget- of course they’ll say cheap-no one willingly says the “sky’s the limit” even if its just for a box of Crayola crayons.

44.  Don’t talk to customers’ backs. Either get in front of them so they know who’s talking to them or shut up.  No customer wants to try to figure out where a phantom voice came from.

45.  Don’t thank customers as they are opening the door to leave if you never spoke to them after they arrived. (See above.)

46.  Don’t hide behind the counter – customers shouldn’t have to come to you, you should go to them.

47.  Don’t stock when any customer is in the store.

48.  If you are in a mall, be prepared to give directions when people ask if you know where they might buy a particular item. No one wants to hear, “I don’t know.” Try.

49.  Don’t call other stores to see how busy they are. No time. No need. Nothing to help you achieve your goal.

50.  Don’t look at your employees as serfs. Chronic short-staffing, distracted, nickel Napoleon managers–make it nearly impossible to give good service. Treat your staff with respect, i.e. how you would like them to treat others. Bring out the best in them.

©Bob Phibbs 2010 All Rights Reserved

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Best-selling author and speaker Bob Phibbs has helped thousands of businesses compete by using his unique sales approach and not discounting. His Book, You Can Compete: Double Sales Without Discounting is the backbone of several companies training programs and teaches his methods for making over a business. Download more free tips at http://www.retaildoc.com/media/free-articles.htm and watch for his new book available in April from Wiley

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Ralph Hull's Bee Skep

He told a group of us crowded around that bee skeps are made of coiled rye straw and used to transfer a swarm of bees to a new colony.  They had been used since before the Bronck house and were constructed to hold up to 65 pounds of honey. As he talked about how he made them from natural rushes and rye from around his home in Oak Hill, NY, I saw the three elements of great retail at work and one of the most common to be avoided:

1. Obey the law of scarcity. Ralph only displayed one at a time.  This made me interrupt at one point and ask if I could buy one.  If you have a bricks and mortar store, don’t fill up all the shelves with product, it makes them look like no one wants them. As I walked away, I thought someone would have to wait for him to build another; I looked back later and he had several hidden out of casual eyesight.

2. Stories sell. Ralph was animated talking about the history of the bee skep, how they were made, how they functioned in colonial times who were looking for a way to maintain their supply of honey and the care he took with them.  Every item you carry should have a story, something besides the features.  The “why,” that product exists because someone was looking for a better way.

3. Show don’t tell. While Ralph presented me with a three-page single-spaced handout about the Bee Skep after I purchased it, he knew the visual of watching an 89-year old man hand make a basket with a Diet Coke bottle would draw a crowd.  From that experience of watching, he then just answered questions. When I was selling western wear I used to have an employee steaming hats at the front of the store to create interest. What can you show to create interest in your store?

4. Don’t know their own worth. As fascinating as this all was, Ralph said it took him 8 hours to make one. I overhead another woman say they were expensive online, over $200.  The trouble with so many retailers is they don’t price according to what the market will bear but what they fear they can’t go over.  They don’t figure in their time or talent. I figured the bee skep would be about $50.  I was shocked when I found they were $25.

Lessons for retail are all around in everyday common activities.  What are some you’ve had presented to you that made you change the way you do business?

More tips for building your business can be found here.

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We have taught customers that printed price is irrelevant, someone somewhere will pay you to buy whatever it is. The retail landscape has become like Monty Hall’s game show from the sixties,  Let’s Make A Deal or a third-world bazaar.

Some of the biggest companies are helping all kinds of product dealers move inventory by paying the customer with rebates. Taking a page from how cars have been sold for the past twenty years – and that’s worked well, right? Everyone is embracing employee discounts, friends and family shopping days and rebate programs.

Why not just improve your sales team?

When I began my retail career, it was common knowledge that in many appliance stores there used to be a “loss-leader” that was heavily advertised;  a washer with a “the  golden spike” in it if you will. The understanding was if you the saleman sold one, you would be  gone because you couldn’t sell; a salesperson’s job was to sell the profitable item.

Sears’ had a different sales strategy I’m told by a former principal, “Sears sold up by selling down.”  They presented a full line of each appliance, from a stripped down model you probably didn’t want, to a model with gadgets that you really didn’t need.

They didn’t expect to sell many from the top or bottom of the spectrum.  The sales strategy was to present the full line quickly, identifying the shortcomings of the low end model and the gee-whiz features of the top-of-the-line.

Depending on how the sale was going, the salesperson would say, “Let me be honest with you.  You’re paying for features in the top-of-the-line model that you probably will never use.  I don’t think this is the best value for you.  The model under it has features that you will use and for a lot less than the top of the line.  I suggest you save some money by buying the next model down.

Sears made a profit, the customer got what they wanted, everyone was happy.  Nowadays in most appliance stores, if a clerk came over, they’d ask if you “found everything ok” and a sign would tell you there was a rebate on it.

Of course, that was then.  One of the people I follow on Twitter, EdisoftFan alerted me that at their local Sears is a chart ranking associates by credit card applications – nothing to do with sales.  Is it a mystery Sears is flailing these days?

In a related story in today’s Los Angeles Times details how IKEA is struggling for profitability in China, Beijing loves IKEA.  People flock to the store but not for shopping. Linda Xu, a company spokeswoman rolled her eyes when she came upon a trio of slumbering customers, ”The brand awareness is great, but the question is, how do we get people to open up their wallets and spend money?” That’s a salesperson’s job.

An office manager visiting with his family said he bought a couch elsewhere that looked just like IKEA furniture. “Why spend so much money when you can have the same thing cheaper?’ he said.”  That’s a salesperson’s job.

The only way your store will standout from your competitors, that your crew will be different than any other, that you’ll make a profit as we come out of this stubborn recession is to learn to sell better.  Your merch can’t do it alone. That comes from having a process, being coached and tracking results.

That’s why I’m hosting an intensive selling workshop in Chicago Monday, Sept. 21 for anyone looking to sell more of their products or services.It is based on the same sales strategies I’ve used for small mom & pops to companies like Brother, Yamaha and Hunter Douglas.   Full details are here.

Consumer sentiment is up – are you ready to sell the merch or continue sitting there looking for a pathetic handout like Whirlpool?

Sales training is the magic bullet to growing your sales, not discounts.  I have the track record to prove it in any economy.You won’t be able to use the excuse  its “the economy” any longer. Change or die my friends.

Take my challenge and meet me in Chicago next month.

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At the same time comes news from the WSJ and others that the government is going to offer appliance rebates.  The government will take the markdown so the manufacturer maintains their profits. Here are the details in a nutshell.

“Beginning late this fall, federal rebates will be available for purchasers of high-efficiency household appliances, furnaces and air-conditioning systems. Congress authorized $300 million for the program earlier this year as part of the federal economic-stimulus bill. After seeing the recent surge in new-car orders attributed to the federally funded cash for clunkers program, appliance industry executives are hoping to lure consumers back into appliance store showrooms with rebates that are expected to reach $200 on some types of appliances.

‘It’s a good way for the consumer to get back into the marketplace,’ said J.B. Hoyt, director of governmental relations for Whirlpool Corp., the world’s largest producer of household appliances by revenue. ‘Clearly, anything that boosts business is good for us.’

What’s next? Cash for Clippers to help the hair salon business? Cash for Killers for the pest control business? Cash for Kickers to help soccer retailers?

When I was in seventh grade, I sold holiday greeting cards door-to-door in the hot Toledo, Ohio summer.  Prices were fixed and a customer got a discount if they ordered more than 3 boxes.  I also sold candy for school.  If I gave a discount, or ate any as the case may be, it came out of my pocket.  That’s basic capitalism. Cause and effect.

With appliance manufacturers looking for a handout to move their machines, there is nothing out of their pocket – its someone else’s money.  Same with the CEO’s of the companies running big discounts still, it’s not their money really.

For the mom and pop retailer, any discount IS their money, their livelihood, their mortgage payment.

We have gotten so bad at selling anything that we can’t sell anything without a “deal.”  That cripples our economy. People mark things down to make the sale, not make a living.

I’m hosting an intensive selling workshop in Chicago Monday, Sept. 21 for anyone looking to sell more of their products or services.  Full details are here. Sales training is the magic bullet to growing your sales, not discounts.  I have the track record to prove it in any economy.

Consumer sentiment is up – are you ready to sell the merch or continue sitting there looking for a pathetic handout like Whirlpool?

You won’t be able to use the excuse  its “the economy” any longer. Change or die my friends. Take my challenge and meet me in Chicago next month.

Tomorrow, the legacy of Sears sales training…

© Bob Phibbs 2009

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I had a business owner tell me last month that he had, “A really great gal but she spends about 1/2 hour with each customer.” OK that’s not a really great gal if she can only wait on 16 people in a day. It would be like a McDonald’s only able to serve the number of people who could sit down in their dining area. They’d lose their profitabilty because fast food is a numbers game.

So is retail.

Your employees have to be able to juggle many customers and make sure they each feel like they are important and valued.

If a customer comes in while they are with someone else they should say, “Excuse me, do you mind if I go greet that customer? I’ll be right back.” Then wait for their permission and go to the new arrival. If you can have the customer read something or put a product in their hands before leaving, so much the better.

When the employee returns to the original customer they must say, “Thank you for waiting,” and restate where they were in the sale. For example, “So we were looking for a toy for your son who likes art but hates clay. Is that right?”

It’s important they do not say to the current customer, “Hold on, I need to go greet them” and leave or yell, “Someone will be right with you,” to the new arrival.  You need them to be hospitable, not hostile. That’s why we ask permission to leave and thank them when we return.

Next time you’re in a busy restaurant notice the best servers, they can do this easily.  You can tell because they check in frequently with their tables, upsell and focus on those customers while always keeping their heads up for who just sat down at their station.

Slow sales have allowed complacency in most retailers. More employees behind the counter. More dismissive expressions, “They’re just looking.”  Don’t let your employees get away with being more comfortable with only one person, train now how to juggle many customers.

Otherwise that one person will buy, but the majority who try your store, especially when its busy, will walk out because they were ignored. And in this environment, never be back.

As you develop juggling to an art, you’ll find your busy store produces the best results because people are comfortable waiting and shopping; many times selling each other as heads-up employees act like hosts rather than order takers.

You have the potential to have a great holiday season if you get your head around this concept and train for it.  Do it now and be on the news crowing about your great holiday sales in December.  Ignore it and potentially lose sales, your business, your home.

Learn how to grow your sales.

from The Retail Doctor’s Guide To Growing Your Business to be published by Wiley mid-2010 © Bob Phibbs 2009

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