retail-industry

Retail: I can’t seem to get better. I’m still feel I’m struggling to make it through this recession.

Skip Anderson: What do you mean?

Retail: I had to lay off people last fall, remember? Well as it turns out, I need to lay off some more if things don’t turn around quickly. And it looks like they’re not going to.

Skip Anderson: What have you tried to turn things around?

Retail: More sales and deeper discounts.

Skip Anderson: Has that gotten you to where you want to go? Is it going to do that for you in the future?

Retail: I don’t know, I just care about making it through this downturn and I’ll worry about the future in the future, you know what I mean?

Skip Anderson: I do, Retail, I do. It sounds like you’re really worried about this. Might you be better off taking a longer-term view of things; that way, maybe you could devise some plans that would do two things: get you through the recession, AND get you to where you want to go down the road. What are your thoughts?

Retail: Well, Skip, none of the other industries are really doing that, so why should I? Look at the transportation industry, for instance. And the auto industry, at least in the U.S., is only doing it because they were forced to do it, kicking and screaming to D.C. to beg for survival and making changes in order to get their bail-out. Would they have done it if they weren’t forced to? Pharmaceuticals, the insurance industry, banking, argh! I can’t change if the others don’t.

Skip Anderson: In previous sessions, Retail, you’ve told me that you were concerned about making it in the future. Does that give you a reason to rethink your position?

Retail: I need to cut costs. Period. Customers just aren’t coming through the doors. And when they do, they’ll only buy the most deeply discounted items.

Skip Anderson: I’m just wondering if you could increase revenue by hiring better sales people. Are there better people out there looking for jobs now, due to this recession?

Retail: I don’t know. I haven’t looked. We took our sales force off of commission eleven years ago. That cut our labor costs almost fifteen percent at the time.

Skip Anderson: Has it improved your sales results?

Retail: In some of my categories it has helped. Look, we can’t pay people on commission any longer. Commission salespeople require better and more training, and in today’s climate, we just can’t afford that.

Skip Anderson: What about in the other categories?

Retail: It hasn’t helped sales results.

Skip Anderson: Would a better trained sales force increase your average ticket?

Retail: Yes, but like I said, we can’t afford to train those people.

Skip Anderson: Sometimes one can’t afford NOT afford to train salespeople, Retail.

Retail: It goes deeper than sales. It’s all about distribution, and pricing concessions from vendors, and smarter marketing spending. And that’s just the tip of the iceberg.

Skip Anderson: I can imagine there are many factors, Retail.

Retail: You’re supposed to be helping me through this! Why are you picking on me about my practices with my sales force?

Skip Anderson: Am I picking on you?

Retail: Look, I’m sorry, it’s just that it’s so confusing. [lays down on sofa]

Skip Anderson: Here, let’s walk through it together. Let’s say I’m a retail shopper, and I’m lucky enough to be able to afford a new dining table and chairs, and I need it because our old one fell apart.

Retail: [sits up quickly] That’s what we need more of! More shoppers like that, please!

Skip Anderson: Okay, but we’ve talked about that before, Retail. You can only create so much demand. At some point, you have to turn your attention to maximizing the results with that shopper, because if you don’t, they’re going to go somewhere else and buy, right?

Retail: Yeah, but like I said before, we just can’t afford to pay these people better, and training is out of the question right now.

Skip Anderson: But what if, by hiring better people, and paying them viable incentives, you get those shoppers to buy from YOU, rather than spend their money elsewhere?

Retail: I can’t afford it.

Skip Anderson: Could you afford it if you moved two or three times the number of units out of your store?

Retail: Yes, but I don’t see that happening.

Skip Anderson: That’s why I’m going to recommend a program we have for you. It’s for business sectors that need intense therapy, more than I can provide once every week or two. It’s a daily group for struggling sectors, and we’ll have time to give you the help you need. It will focus on helping you understand your options. You’ve got options, but when you’re this ill, you just can’t see them. We’ve talked about this before, but you need some more intense therapy to help you with it. Will you start in the program?

Retail: I’ll give it some thought. Do you have a brochure?

Skip Anderson: Retail, tell me what you want to think about.

Retail: How much does it cost?

Skip Anderson: Most insurance covers it, Retail. We can have our business office see if your insurance covers it.

Retail: We’ve cut our insurance benefits, so I don’t know if I’d be covered.

Skip Anderson: If you’re covered, can we move ahead with the program?

Retail: I need to talk to my partner, Online Selling.

Skip Anderson: Sure, that makes sense, Retail. But putting your partner aside for a moment, how do YOU feel about participating in the program?

Retail: I guess it makes sense. But I want to talk to Online Selling and see what she thinks.

Skip Anderson: What do you think Online Selling will say?

Retail: She’ll probably say go ahead.

Skip Anderson: So what you’re telling me is that you think the program makes sense. And you want to talk to your partner, but you think she’ll say go ahead and enroll in the program. So why don’t we get you enrolled today? Talk to your partner when you get home and if she doesn’t agree with it, just call me and we cancel your participation. But I’ll bet she’ll think it’s a good thing for you. Should we sign you up?

Retail: Okay.

Skip Anderson: Here, sign this.

Retail: Okay.

Skip Anderson: See how important sales training is?

Retail: What do you mean?

Skip Anderson: You never would have agreed to participate in the program if I didn’t know how to handle your objections.

Retail: I don’t know what you’re talking about.

Skip Anderson: Don’t worry, Retail. It will all become clear once you’re in our sales training program.

Retail: It’s sales training?

Skip Anderson: Yes, it’s sales training. It’s just what the doctor ordered. Welcome to a new chapter in your business.

Retail: I don’t really see myself as a salesperson. I see myself as more of a customer service kind of guy.

Skip Anderson: We’ll get you help, Retail, we’ll get you help.