I was presenting at the Retail Merchants Economic Summit in Richmond, Virginia this past Friday morning. Unsurprisingly, two economists gave fairly bleak assessments. One of them was Scott Krugman, a vice president at the National Retail Federation, while acknowledging they expected a 2.2% increase in sales, he became the lead quote on NBC channel 12’s news that it could be the “worst holiday since 2002”. He also talked at the summit that it would only be discounting that would bring customers in . That was not news - it is exactly the same thing he said last fall as well.
When I got up to speak, I asked everyone to take a deep breath and repeat after me, “Life sucks!” They did that and said, “That’s what the economists want you to believe.” I challenged the audience, “What are you going to do with that information?”
Many independent businesses still don’t think they need an online presence with their own website or to sell the customer the merchandise in their store. If not now, when? In many ways, you are the master of your own destiny.
Afterwards, an editor of the local business paper told me he enjoyed my speech but I should, “Lay off the media. We didn’t make this.” My voice jumped to attention. “Give me a break! The media has been looking to put a bright red R on the economy since 2006.” I know, I tried to sell a house for two years. I saw all the adjectives, “worst,” “disaster,” “plummeting,” etc. all over the newspapers, online sites and news reports. You don’t build an economy on fear; you have to have balance it with some hope.
And now the bailout is done, but what do the talking heads have to say about it? “Band-aid.” “Won’t fix the problem.” Etc. Life sucks – to be continued as long as they need the ratings.
My point to you is this is non-information for retailers. Nothing has changed in the past 24 months except we have been beaten back into a cave with fear; everything from the price of oil and credit to corn, wheat and milk is “rocketing” to new “all-time” levels. We seem to feed on the rotten idea that something even worse is right around the corner. That’s not what made America great and its not what we need to turn the tide on a struggling national economy. Just because economists see the impact of recent events on the broad economy does not mean all businesses will be effected equally.
It is time for you to fight for what you do. But you’re going to have to change.
If you still feel you can answer the phone in 20 rings, if you still feel you can answer email weekly from your website (if at all,) if you still feel you can compete having slacker employees, I’ve got news for you. You can’t. If you think you can just stock the same stuff as anyone else or throw a 15% off sale every weekend – it won’t work.
The market won’t reward you any longer because the pool of easy money has drained. There are more people chasing fewer customers.
Only if your eyes are on your customers, are you going to be able to survive and thrive.
At the end of my talk in Richmond, the manager of Jason’s Deli came up to me and told me that their catering business – you know one of the most disposable of incomes- was up 19.4% in September! His motto, “We only sell service – the food is a by-product of what we do – we SELL!”
Great example and I know scores of others who are increasing sales in this “punishing economy.” If you’re not, look in the mirror – it’s probably you.
Going to change? If not now, when?
