The seemingly unstoppable spread of discounters and megastores can be unnerving to independent merchants, especially when they show up in their town or city. As small shop owners struggle, the big box retailers seem to get larger. So, what does the future hold for the small business owners?
There has never been a better time to outmaneuver the mass merchandisers. Even as they grow larger, they become less capable of competing effectively in the areas at which small shop owners excel. In this article, I ll provide an overview of how independent merchants can outcompete the giant retailers. You have the tools at your disposal. With focus, planning, and execution, you can maintain and even expand your sales.
Pricing For Profit Margins
One of the few advantages that a chain store can offer customers is low prices on commodity items. They buy in bulk and can drive prices along with profit margins into the ground. In fact, megastores often do so just to bring people through their doors. Trying to compete with a big box retailer on price is a bad decision. Because of their enormous coffers and economies of scale, they will always win unless you sacrifice your margins.
Avoid carrying commodity items that the discounters are selling. Instead, offer your customers high quality products. Many shoppers are not motivated by price; they re willing to spend more for quality while shopping in a store that provides a higher level of customer service. By catering to these shoppers, you ll preserve your profit margins while avoiding price wars.
Minimize Your Inventory
Many independent merchants lock up their budget in inventory because they don t want to sacrifice a potential sale. If a customer wants an item, they want to be able to provide it. Unfortunately, keeping items in stock is expensive if you re unable to sell them. Before long, you re marking products down and destroying your profit margins in the process.
When it comes to inventories, leaner is better. Specialty retailers can maintain their flexibility by limiting the stock they have on hand. That way, they can respond to market demand more quickly, stocking their shelves when needed.
Nurture Passionate Employees
One of the most powerful ways small retailers can carve out their territory is by providing better service than the mass merchandisers. The fact is, large chain stores cannot effectively maintain a motivated staff who can offer the same level of service as your employees.
If you provide the training and product knowledge, and give your staff the independence and authority to do their jobs, they ll make sure that each customer s needs are satisfied. Customer service is a potent feature that many shoppers crave after being disappointed once too many times at their local big box retailer. If you nurture passionate employees, they ll become partners in finding solutions for your customers problems.
Out Of The Shadows
Local merchants often worry about disappearing into the shadows of the megastores and discounters encroaching upon their area. However, by leveraging the advantages of being small and independent, they not only can insulate themselves from the megastores, but outmaneuver them.
By carrying products that offer higher quality and stronger profit margins, small retailers can avoid costly markdowns and sales. By keeping their inventories lean, they can respond quickly and take advantage of sales opportunities as they emerge. By providing employees with the authority and independence to do their jobs, they can offer shoppers an unparalleled level of service.
As the chain stores and discounters try to dominate their territory, independent shop owners have a perfect opportunity to outcompete them. The future of specialty retailing is bright, indeed.
Author Resource:-
G.A. Wright specializes in high-impact sales promotions that produce big increases in sales volume and attract big audiences. Check them out online at: http://www.GAWrightSales.com
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