Let’s Make Some Good News

Without a doubt, many specialists need to employ a new set of both short and long term strategies. That being said, many of these strategies will take trial and error. Can the retailer survive the costs associated with trial and error? One too many errors may mean the difference between being profitable and not. As I said at the 12v Summit…Trial and error can be costly and during tough times it may also be deadly. Retailers know this and in turn are afraid to try new things. One of the quickest and easiest ways to lower this fear is for store principals to communicate with each other and trade their successful playbooks. At ICE we heavily encourage our members to borrow successful ideas from other members. Currently, ICE is conducting a member survey that shows over 30% of ICE members experienced an increase in sales for 2008. These retailers are obviously experiencing success with some strategy, vendor and/or category. ICE connects these dots and then builds/repackages the playbook in order to fast track the execution throughout ICE members’ stores. But, with or without a group the point is that specialists need to seek out the successes of others. When I was a retailer, I had a conference call every third Friday of the month with retailers around the country that I considered successful. I am certain it contributed to my success. I am also certain that if I still owned my retail store, I would invite retailers from outside our industry to participate on the call. This is not a time for retailer excuses; it is a time for immediate implementation. Those who are implementing tell me they are working harder than ever, but that they are also experiencing success.

Short term: Manage cash, promote reasons to buy other than price (how you do that will vary by product) do whatever your cash management will allow to fix up your store (all those projects you were too busy to do when times were good.) Long term: Plan now for a very different post crisis environment. By plan I mean review your business and create a new business plan to reflect what will likely be (you know what won't be which is the ways things have been). Things WILL be different. Don't wait to see how. Plan for the new day, now!

Short Term: Retailers can reach out to customers to which they have already made sales. They should know what the customers have bought and make an effort to sell-up on accessories and add-ons. What ever happened to in-store product seminars?

Agreed...right now things are tough but spending all this engergy talking down the economy and the market will only make us weak and unprepared for when consumers decide to do what they do best, and that is spend. So, to Bill's point, there is a near-term and a long-term set of strategies that need to be put into place. Question: What are good short-term and long-term strategies for retailers and manufacturers (rhetorical question, of course).

Hey Ed- Probably 99% right… and Bill's comments also reflect the big picture. Unfortunately our new "Messiah" and his checks and balance “Disciples” in the H & S have yet to read ‘It’s the consumer stupid’ news flash being broadcasted for the last 60 years. A personal six month income tax holiday for the 93% of the folks that are employed would likely have a much more measurable impact, and it probably cost less! Bottom line… if the consumer defines what’s happening as BS (and they are), not a dime will go back into discretionary markets regardless of what a manufacturer or a dealer does. Folks selling Boats, RV’s Hot Tub’s and CE products best grab their ankles. The man with the glove is going to be around for a while!

You Want Some Good News? February 9, 2009 It’s my son’s 27th birthday today and he has just returned from Qatar after 1-year. Staff Sergeant Rich Rukavina will serve out his remaining 6 months in El Paso, TX with his wife Nellie and 3-beautiful children. That is my good news! In today’s economy inspiration to do well in our industry is everywhere. Yes, dare to inspire might lead you down the path of success. We have never seen so many different ways to create new business. It’s a wireless society! Just yesterday I was in someone’s car whose iPod was cradled and connected via FM. Not the purest way, but a way. What about the navigation, new forms of radio, MP4, iPod, remote starters and all the integration opportunities? Two of my clients in the Los Angeles area are actually hitting their quotas. Some would find that hard to believe? What are they doing right? They have the goods and know where to take them. One client has moved into the wireless arena in a big way, more than 50% of their product mix is now MP4’s and digital cameras. And yes, they also market integration products to create installation opportunities for their customers. Two of their sales people just received nice bonus checks for hitting their individual quotas. Not long ago more than 90% of their product mix was car audio. It’s not business as usual. If you run an ad in your local pub it might get read. If you send an email it might get passed along.

This is all BS...

There is some self-fulfilling prophecy in all this. 1. The press says the economy is bad and consumers will lose their jobs. 2. Consumers believe the press and cut back on their spending. 3. Lower spending by consumers means less sales for companies who respond by laying off workers who also happen to be the consumers who cut back on spending because they believed the press who said the economy was bad. The economy IS bad and companies need to reflect this is their near term planning but at the same time they also need to give consumers a good reason to buy what they sell

Keith, I agree with you in regards to finding new customers. The industry needs to focus on new customers by doing a better job or targeting them directly. There are many direct marketing companies that are looking at subszidizing their normal product lines with new ones. They are always looking for added value product to help move some of their higher ticket items. Some of these companies are very good at what they do and require a minimnal amount of support to get started. You can no longer sit back and wait for your customer to come back. You must go after them directly.

Keith, You make some valid points but it is my experience that manufacturers could do a far better job of identifying, quantifying, locating and targeting their customers. To often the old playbook is still being used and those strategies are tired and old and just don't work. I was asked to speak at the 12Volt Summitt and trying to convince the group that their customer is NOT a 19 year old male was a near impossibility but I tried. Until we focus on the customer no matter what the economic enviroment we will not reach our sales potential.