I'd like to share with you a series of blog posts dealing with some tricks of the trade that have worked for me over the years in our retail store operations. In today's difficult economy, it is especially important to find ways to maximize profit, so perhaps the 3 P's will help maximize YOUR retail success and help you survive and thrive! I will make this a continuing series that hopefully will give you some new ideas as well as encourage and validate the things you already do. Please feel free to share your input as well on these ideas and add to our discussions!So, let's go on the treasuer hunt for profit- and we'll start with PURCHASING!Blog post One- Purchasing- DistributionEvaluating the suppliersIt will depend on your area and what is available there where you want to do your purchasing. There are a number of factors to consider. Obviously price is a major factor, but there are a number of other important issues to consider to evaluate where you want to do your major purchasing.a. DistributionOne major source of supplies throughout the nation of course is distribution. There are major distributors in most of the larger cities all over the country and if you live in an area like this, this may be your best source of most of your products due to price, availability of a variety of products, delivery and service. It’s a good idea to establish relationships with all the major distributors in your area, and to reevaluate their programs each year, compare what each has to offer, and bargain for the best deals you can cut.However, establishing one as your major source gives you an edge in obtaining the best you can have in price and service If you can establish yourself as a major client. Be aware as well that in this industry the one thing you can count on is CHANGE. Be loyal to suppliers that back you up, but realize that conditions may change and it may be to your advantage to change suppliers accordingly. Watch the trends happening with your distributors locally, your local management and industry trends, and pay attention to what is happening that affects you and that will be to your advantage. Look for such factors as educational programs your distributor offers, price, of course, efficient delivery service, accurate billing and accounting, as few order mistakes as possible and willingness to address mistakes and problems, good warranty service, etc.(1.) Communication is key- Make an effort to communicate well with your distribution employees and establish a good working relationship with the managers and assistant managers of the branches you deal with, as well as their sales reps. Remember the old saying that you can catch more flies with honey than with vinegar. It never hurts to smile at the delivery man, counter guy, stop in and say a pleasant hello to the secretary, and be courteous and polite.(2.) Sure, problems and mistakes happen, but while you may need to be firm and insist on good service, you are more likely to get it if you have already established a pleasant working relationship first. Make your orders clear, keep excellent records and follow up on special orders. Write down what you ordered, who took the order, and have this information available to whoever is on duty in your store so that anybody can follow up a special request if need be. This will help both your store and the branch serve you better and most importantly, serve the customer better.(3.) And, VERY important- TELL THE BRANCH MANAGER WHAT YOU WANT HIM TO STOCK! I learned this from the “rep” side of the equation: distribution branches are constantly barraged with sales people wanting them to stock new products. The management of the branches is held accountable for what they stock and for selling it by their higher ups, and , accordingly,they want a market to be there before they bring in that wonderful pool care book or whatever that you saw that you want to start using. So, it is important to communicate with your manager, maybe over and over until he gets the message and brings it in, what you want in there. They are busy and may need to be reminded multiple times. But do so in order to have things available when you need them!(4.) Participate in programs-Find out what programs the distributor offers each year and participate. Take advantage of every thing offered- educational programs and tabletops at the branches, new products they might be stocking, literature, coop advertising, rebates, early buy, special store support programs, when it is to your advantage. Make sure your employees know what is available and how to participate too.
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