MAKE EVERY DAY YOUR PAYDAY - WHY AND HOW TO...

Too often we see retailers running their businesses with the belief that they will make their money when they sell their business. These folks tend to bot worry about the day to day as much.

It’s a mistake.

For years, we have written that retailers need to make every day their payday.

This is an important message as it focuses on the goal of driving business value. Too often, we see retailers working about, being focussed on, the wrong things, things that do not directly affect business value.

Make every day your payday.

It is a simple mantra worth repeating daily. It should guide every decision.

Does this, or that, add value to the business. It it does Not, why do it?

The challenge is how do you do this?

1. Run with a lean roster. Most businesses we review have capacity to lower labour costs.
2. Buy as best you can. Pay to capture settlement discounts.
3. Charge more every time you can. Mark up as high as you can without harming unit sales.
4. Get shoppers buying more each visit. Loyalty programs such as discount vouchers, bundling into hampers, multi buys such as 2 for 3 and other opportunities enable you to do this.
5. Only place at the counter items people will easily add to a purchase, items easily understood and that they did not expect to see.
6. Have your best people working the floor, helping customers spend more.
7. Measure product category performance by GP contribution. Quit those underperforming.
8. Ensure you can sell when the business is closed. Yes, this means sell online.
9. Promote the business outside your usual foot traffic area … increase your customer base.
10. Promote your business outside the brand people know you as.
11. Have stunning window displays that attract people from outside the shop.
12. Have compelling displays that encourage people to browse beyond their destination purchase.
13. Leverage adjacency information. Chase a deeper basket – people purchasing more each visit.

Be responsible for the profitability of your business. Don’t blame your suppliers, your landlord, your employees or some other external factor … it all comes down to you – the decisions you make and the actions you take.

If you relentlessly pursue profit with a clear focus you are likely to see profit grow. That’s better than waiting to make money when you sell because that’s less likely to happen in this market.

Doing all this relies on your measuring the performance of your business. Your software helps with this. It is easy.