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February 2010 Archives

February 1, 2010

Negotiating: Think Win-Win, Not Winner Takes All

Yesterday morning, Kevin Graff of Graff Retail, opened the CGTA Spring Gift Show in Toronto with a seminar in which he outlined 13 critical management mistakes that retailers make and gave advice on how to avoid them. One of his suggestions concerned negotiating terms with suppliers. Everything, he said, is open to negotiation.

I had that admonishment on my mind when I went through my email newsletters today and found an article from American Express Open Forum Small Business titled, Take the Long View When Negotiating with Your Vendors. Written by Thursday Bram, this article delivered some common sense advice on the art of negotiation.

Bram suggests thinking outside of the price box in your negotiaions with vendors. They may not have much wiggle room when it comes to price, so think of other terms that you can benefit from. She also says to think long-term.

It's also important to think in terms of working with a vendor for years. If you're willing to take the focus of your negotiations off of price, your vendor may be more interested in working with you in the long run.
Phil Marcus, of NegotiationPro.com, has negotiated deals for clients as an attorney for more than 35 years. He offers a simple piece of advice for negotiating with any vendor:
Don't try to do what in Yiddish is called 'hondling.' That is, try to arrive at a fair price that allows the vendor to pay their bills and make a profit so they stay in business, rather than pressing and pressing for a cheaper price. Don't overpay, of course, based on what prices the commodity sells for elsewhere, but act like you want a long-term relationship and you will build one.

Taking the long view, she concludes, will payoff in new opportunities in the years ahead. Makes sense to me.

Negotiating: Think Win-Win, Not Winner Takes All

Yesterday morning, Kevin Graff of Graff Retail, opened the CGTA Spring Gift Show in Toronto with a seminar in which he outlined 13 critical management mistakes that retailers make and gave advice on how to avoid them. One of his suggestions concerned negotiating terms with suppliers. Everything, he said, is open to negotiation.

I had that admonishment on my mind when I went through my email newsletters today and found an article from American Express Open Forum Small Business titled, Take the Long View When Negotiating with Your Vendors. Written by Thursday Bram, this article delivered some common sense advice on the art of negotiation.

Bram suggests thinking outside of the price box in your negotiaions with vendors. They may not have much wiggle room when it comes to price, so think of other terms that you can benefit from. She also says to think long-term.

It's also important to think in terms of working with a vendor for years. If you're willing to take the focus of your negotiations off of price, your vendor may be more interested in working with you in the long run.
Phil Marcus, of NegotiationPro.com, has negotiated deals for clients as an attorney for more than 35 years. He offers a simple piece of advice for negotiating with any vendor:
Don't try to do what in Yiddish is called 'hondling.' That is, try to arrive at a fair price that allows the vendor to pay their bills and make a profit so they stay in business, rather than pressing and pressing for a cheaper price. Don't overpay, of course, based on what prices the commodity sells for elsewhere, but act like you want a long-term relationship and you will build one.

Taking the long view, she concludes, will payoff in new opportunities in the years ahead. Makes sense to me.

February 8, 2010

Giving Your Customers a Product Vote

Should you give your customers a vote about the merchandise in your store? Consider this:

A recent article on entrepreneur.com called Vote For Art: Democratizing Collegiate Apparel, tells the story of a young entrepreneur named Jeremy Parker (he's 24-years-old) who has broken into the lucrative collegiate licensing category in the States in a unique way. VoteforArt.com partners with universities and colleges, and through it students at these institutions vote for T-shirt designs created by peers, which will, in turn, by sold in their campus stores. Parker's impetus for creating VoteforArt.com was his own visit to a university campus, where he couldn't find a T-shirt with a design he liked. Why not, he thought, combine crowdsourcing and licensing and let the people who actually purchase the merchandise do the designing and make the selection.

Reading the article, I wondered what other retail applications this "democratizing" might have. Would it be good business for a retailer in a tourist area to hold a T-shirt design contest and let customers determine the winning design? Could a customer vote help you narrow down your choices of product in any given category? Customers have always voted with their dollars but it's an after-the-fact vote. What would happen if they got to vote for something that you didn't yet carry in your store? Just an idea.

February 22, 2010

Take a Tip from The Container Store: Treat Every Customer Like a Thirsty Man in a Desert

The Container Store, a U.S. chain specializing in home and office organization, has been in the retail news a lot lately. One of its founders, Kip Tindell, who is currently the company's CEO and chairman, is a keynote speaker at the upcoming International Home + Housewares Show, being held March 14-16 at McCormick Centre in Chicago. Tindell was also recently interviewed for the National Retail Federation Foundation Research & Education blog. At the International Home + Housewares Show he will be speaking about the value of an employee-first culture during tough times. In the NRF Foundation blog, he talked about "employees being a true part of the business" and the company's new "We Love Our Employees Day."

Not surprisingly, the company is one of the few retailers to consistently make Fortune Magazine's 100 Best Companies to Work For list. And with $551 million in sales in 2008, these employees clearly know a thing or two about selling. With all this in mind, I was interested to read an article that appeared in last Wednesday's (February 17) Dallas Morning News, which landed on my desk via a SmartBrief enewsletter. Titled "Container Store co-founder shares secret shopping encounters," the article detailed a "mystery shopper" expedition made by Garrett Boone, who is now the Container Store's chairman emeritus. Boone visited 30 stores in Dallas to prove that "rote, mindless greetings draw rote, mindless and dismissive responses from customers--even when they need guidance." On a day, when he "set the sky as the limit" for spending, encounters with 60 salespeople saw him purchase only "two pairs of jeans, a shirt and a half-dozen pairs of socks." No-one, he reported, treated him like a "Man in the Desert."

At the end of the article (which was originally a post on his Container Store blog), Boone explains "Man in the Desert" selling, which is taught at the Container Store.

"A man lost in the desert for weeks stumbles across an oasis and is offered a glass of water. But if you stop to think, you probably realize he also needs food, a place to sleep, a phone to call his family, a pair of shoes and a hat and umbrella to screen the sun's rays.
"When a customer comes looking for shoe storage, most retailers help her find a shoe rack--that glass of water. We know she needs a complete solution for her entire closet.
"Man in the Desert selling teaches our salespeople to become so immersed in the customer's needs that we complete their solution indistinctively."

Someone once told me that selling starts when the customers says "No." In retail, I think it's accurate to say that selling starts when the customer says "Just looking." Want to increase sales? Maybe your staff should try a little Man in the Desert selling.

About February 2010

This page contains all entries posted to Editorial Blog in February 2010. They are listed from oldest to newest.

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