How to Market a Retail Business

This guide is a checklist for the owner-manager of a retail business. The questions cover areas that undergird retail marketing as well as deal with obvious aspects like customer analysis, buying, pricing, and promotion. You can use it to evaluate your current status and, perhaps, to rethink certain decisions.

If your retail firm is to be successful over the long run, it must satisfy the needs and desires of its present and potential Customers. Sound Buying means knowing where to buy, what to buy, how much to buy, and how to place an order. This requires familiarity with old and new products, adequate and working with suppliers in ways that benefit the store. In Pricing, you need to understand the market forces affecting your business, plan the price policies that you will follow, and know whether or not your pricing policies meet State and Federal regulations.

You need to be familiar with various types of Promotion and when, where, and how to use them. In addition, a credit program or other special customer services can be attractions.

Under the heading of Management goes the establishment of both long- and short-range goals. How you set up your organization and how you communicate with your employees are crucial factors in the accomplishment of your goals. Of equal importance to good management is the ability to keep and make use of accurate Financial Records. It also pays to examine your Insurance coverage in various areas.

In answering the following questions, you will be reminded of what you may still need to do to round out all marketing aspects of your business.

Customer Analysis

Who are your target customers and what are they seeking from you?

Have you estimated the total market you share with competition?

Should you try to appeal to this entire market rather than a segment(s)?

If you concentrate on a segment, is it large enough to be profitable?

Have you looked into possible changes taking place among your target customers which could significantly affect your business?

Can you forsee changes in the makeup of your store's neighborhood?

Are incomes in the community apt to be stable?

Is the community's population subject to fluctuation?

Do you stress a special area of appeal, such as lower prices, better quality, wider selection, convenient hours?

Do you ask your customers for suggestions on ways to improve your operation?

Do you use "want slips"?

Do you belong to a trade association?

Do you subscribe to important trade publications?

Have you considered using a consumer questionnaire to aid you in determining customer needs?

Do you visit market shows and conventions to help anticipate customer wants?

Do most of your customers buy on weekends?

Do sales increase in the evening?

Do the majority of your customers prefer buying on credit?

Buying

Have you a merchandise budget (planned purchases) for each season?

Does it take into consideration planned sales for the season?

Does it achieve a planned stock turnover?

Have you broken it down by departments or merchandise classifications?

Have you a formal plan for deciding what to buy and from whom?

Have you a system for reviewing new items coming onto the market?

Have you considered using a basic stock list or a model stock plan in your buying?

Are you using some sort of unit control system?

Do you keep track of the success of your buying decisions in previous years to aid you in next year's buying?

Do you attempt to consolidate your purchases with two or three principal suppliers?

Have you a useful supplier evaluation system for determining their performance?

Have you established a planned gross margin for your firm's operation and are you buying so as to achieve it?

Pricing

Have you established a set of pricing policies?

Have you determined whether to price below, at, or above the market?

Do you set specific markups for each product?

Do you set markups for each product categories?

Do you use a one-price policy rather than bargain with customers?

Do you offer discounts for quality purchases, or to special groups?

Do you set prices to cover full costs on every sale?

Have you developed policy on when to take markdowns and how large?

Do the prices you have established earn planned gross margin?

Do you clearly understand the market forces affecting your pricing methods?

Do you know which products are slow movers and which are fast?

Do you take into consideration when pricing?

Do you know which products are prices sensitive to your customers, that is, when a slight increase in price will lead to a big dropoff in demand?

Do you know the maximum price customers will pay for certain products?

If the prices on some products are dropped too low, do buyers hesitate?

Is there a specific time of year when your competitors have sales?

Do your customers expect sales at certain times?

Have you determined whether or not a series of sales is better than one clearance sale?

Do you know what role you want price to play in your overall retailing strategy?

Are you influenced by competitor's price changes?

Are there restrictions regarding prices you can charge?

Do any of your suppliers set a minimum standard at which it can be sold?

Does your State have fair trade practice acts which require you to mark up your merchandise by a minimum percentage?

Are there any State regulations on how long "close-out" sales can be advertised?

Are you sure you know all the regulations affecting your business, such as two-for-one sales and the like?

Do you issue "rainchecks" to customers when sale items are sold out so they can purchase later at sale price?

Promotion

Are you familiar with the strengths and weaknesses of various promotional methods?

Have you considered how each type might be used for your firm?

Do you know which of your items can be successfully advertised?

Do you know which can be sold best by demonstrations?

Do you know when it is profitable to use institutional advertising?

Do you know when product advertising is better?

 

 

This article Provides managing your business tips and Handle business advice. However, you aren't prepared to begin your own
company till you've given some thought to managing it. A company is an ongoing activity that doesn't run itself. As the manager
you'll need to set goals, determine how to reach those goals and make all the required decisions. You'll need to purchase or
create your product, price it, promote it and market it.

You'll need to keep documents, and determine prices. You will have to Control stock, make the right buying decisions and keep
costs down. You'll have to employ, train and motivate employees today or as you develop.

Setting Business Management Goals. Great small business management Is the secret to success and great management begins with
setting goals. Establish goals for yourself for the accomplishment of many activities required in establishing and managing your
business successfully. Be specific. Write down the goals in measurable terms and conditions of functionality. Break big goals down
to sub-goals, showing what you expect to achieve in the next two to three weeks, the subsequent six months, another calendar year,
and the next five years. Beside each target and sub-goal place a particular date showing as it's to be attained.

Plan the action you must take to achieve the goals. While the attempt Needed to reach each sub-goal ought to be good enough to
challenge you, it should not be so good or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities.

Plan in advance how to quantify results so you can know exactly how Well you're doing. This is what is meant by"measurable" goals.
If you can't keep score as you move along you're likely to lose motivation. Re-work your plan of activity to permit for obstacles
which may stand on your way. Attempt to foresee obstacles and plan strategies to stop or minimize them.

Buying. Skillful purchasing is an important essential of Managing a business. This is true if you're a wholesaler or retailer of
merchandise, a producer or a service company proprietor. Some retailers say it is by far the most important single factor.
Merchandise that's carefully bought is easy to sell.

Deciding what to buy means finding out the Kind, kind, quality, Brand, size, color, style -whatever applies to your particular
inventory - that will sell the best. This requires close attention to salespeople, trade journals, catalogs, and especially the
likes and dislikes of your regular clients. Analyze your sales documents. Even the manufacturer should see the issue through the
eyes of customers before deciding what materials, components, and materials to purchase.

Know your regular customers, and make a Fantastic evaluation of the People you expect will become your customers. In what
socioeconomic category are they? Are they homeowners or renters? Are you currently searching for price, quality or style? What's
the predominant age category?

The age of your clients can be a prime consideration in Establishing a buying pattern. Young men and women buy more often than
many older folks. They need more, have fewer duties, and spend more on themselves. They're more aware of fashion trends whether in
wearing apparel, automobiles or electronic equipment. In case you choose to appeal to the young trade only because they seem
dominate in your area, your buying pattern will probably be completely different than if the conservative middle-aged clients
appear to be in most.

Study trade journals, newspaper advertising, catalogs, window Displays of companies similar to yours. Request advice of
salespeople supplying you product, but buy sparingly from several providers instead of one, analyzing the water, so to speak,
until you understand what your best lines will be.

Locating suitable merchandise sources isn't simple. You will buy Directly from manufacturers or manufacturers, from wholesalers,
distributors or jobbers. Pick the suppliers who sell exactly what you need and can provide it if you need it. (Distributors and
jobbers are utilized by the majority of business people for quick fill-ins involving mill shipments.)

You may spread purchases one of many providers to gain more Favorable rates and promotional material. Or you might concentrate
your purchases one of a small number of providers to simplify your credit issues. This will also help you become known as the
vendor of a certain brand or line of merchandise, and to keep a fixed standard in your products, if you are buying stuff for
manufacturing purposes.

When to buy is important if your business will have seasonal Variations in sales volume. More inventory will be required ahead of
the seasonal upturn in sales quantity. As sales decline, less merchandise is necessary. This means purchases of goods for resale
and materials for processing should change accordingly.

At the outset, how much to buy is speculative. The best coverage is To be frugal till you've had enough expertise to judge your
needs. On the other hand, you can't sell merchandise in case you don't have it.

To help solve buying problems, you should begin to keep stock Control records at once. This can allow you to keep the inventory in
balance - neither too big nor too little - with a suitable proportion and adequate range of merchandise, sizes, colors, styles and
qualities.

Basically , there are two types of inventory control - management in Bucks and command in physical units. Dollar controllers show
the sum of money invested in every product category. Unit controllers indicate the amount of individual items when and from whom
purchased by category. A fantastic stock control system is able to help you determine everything, from whom, when, and how much to
buy.

Pricing. A lot of your success manage a business will depend on The best way to price your services. If your Rates are too low,
then you will not cover Costs; too high and you'll lose sales quantity. In both cases, you won't Earn a profit.

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