Business People Club

How to Build a Retail Store that is Made to Last?

0 like 0 dislike
433 views
by Butcherry
How to Build a Retail Store that is Made to Last?

Your comment

Your name to display :
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Comment

0 like 0 dislike
commented by Dingopher
Starting a retail business means you’re excited. Did you know – by adopting Best Practice Retail Sales Performance Standards you can immediately increase your sales and profit expectations by as much as 30%!

Why – because achieving sales objectives is more than just about what’s on your shelves and what your store looks like – it’s about having a customer focused mentality driven by key performance indicators (KPI) to inform staff at every level about the condition of the playing field.

Complicated? Not at all. Retail Sales Performance is just like Sports Coaching. How would sports coaches know how to focus their athletes without statistics? How would racing car managers know how to fine tune their engines and performance – it’s all about statistics. When last did you watch a game on TV without them? They tell us about trends, behaviors, opportunities to increase performance, and they forecast the short to medium term future – enabling us to understand why and where we are heading.

Statistical measurement of fundamental sales performance drivers for any retailer is a prime need. With all manner of spreadsheets, POS systems reports, Dashboards and Scorecards, we use Key Performance Indicators (KPI) to communicate the strategy of the shareholders to the individuals in the company and we employ feedback systems to report the results. It is common practice to compare what we have forecast with what has actually taken place – statistically – so we can make judgments, changes and plans.

It is important to recognise that the standard (senior level) business indicators such as profit margin and wage costs do not drive bottom line sales on the shop floor. You cannot walk up to a Salesperson and say “We did 80% of budgeted sales – please increase your performance.” That’s like the manager of a football team saying to a player “We lost the past few games – you have to do better.” To the salesperson or player the information is useless – they cannot see a clear reason for their ‘under performance’.

What sports coaches do is take the Team Manager’s expectations (of winning) and filter them down to each individual player on the team – so each player can win for them (and the team). The coach measures performance of a few highly enlightening KPI’s that tells the players exactly in which areas to improve. In soccer it may be recording the “number of times a player touched the ball”, or “number of attempts at goal.” In baseball the coach could track “number of players on 3rd base” or “number of strike outs” etc.

It is common practice in retail to employ only five (5) KPI’s to track individual performance and deliver the on-target information for coaching purposes – more than five and the reporting system is too complex, confusing, and ambiguous. The five KPI’s for retailers are:

Sales per hour - a statistic tells us about the speed at which each individual salesperson is selling or attending to customers compared to everyone else on the shift.

Average Sale – the average selling price of each individual salesperson compared to everyone else on the shift – higher averages show a greater knowledge of product as the salesperson is able to sell higher ticket items. Low statistics reveal the salesperson lacks skill in either product knowledge or effective probing.

Items Per Sale – tells us about the ability of the salesperson to add-on to a sale.

Conversion Rate – tracks how many visitors to the store are turned into customers.

Wage to Sales Ratio – compares a salesperson’s hourly wages to hourly sales. This KPI identifies your clear performers and underperformers – and their value to you.

The most common reason retailers do not track the five vital KPI’s at a staff (team player) level, is their inability to easily and quickly, record and calculate data, to create meaningful reports. After all, one needs to track hours worked, set goals, track planned versus actual performance, and somehow level the playing field for all Salespeople. It can be a lot of work.

In a sports match the playing field is level at all times because everyone is simultaneously on the field. In a retail environment some salespeople will work during fast periods and others during slow periods of the day. A salesperson working during the lunch hours should be expected to sell more than a salesperson working early morning or late afternoon. So any realistic reporting system is going to have to weight individual sales targets – otherwise the data becomes ambiguous.

Critical to any Retail Sales Management Solution is the ability to “determine the most deficient statistic of the five KPI’s because it is logically understood that improving the worst KPI first will have the greatest increase in sales and staff motivation.

Imagine if you had a really simple to use Staff Roster (time and attendance software) that automatically assigned individual, weighted, sales targets to each salesperson, based on when they were working – then integrated with your POS (point of sale) terminal to instantly calculate the five (5) key performance indicators, and figure out the most deficient KPI - on demand! What if that software went further by having integrated sales behavior coaching tips built right into the system?

Playing the retail sales game to win means knowing why you are losing and how to go about fixing problem behavior areas. It's easier to improve retail sales skills than it is to re-stock a new product or brand.

To win in retail, measure the five principal KPI’s using an affordable solution – and put Best Practice in place for your fast track to success.

Good luck with your brand new store!

Related posts

0 like 0 dislike
1 Comment 310 views
0 like 0 dislike
1 Comment 1,207 views
0 like 0 dislike
1 Comment 296 views
0 like 0 dislike
1 Comment 261 views
How to Build a Customer Focused Business?

How to Build a Customer Focused Business?

by Sumogre
0 like 0 dislike
1 Comment 275 views
How to Choose A Name For Your Company That Makes Sense ?

How to Choose A Name For Your Company That Makes Sense ?

by SilkPredator
0 like 0 dislike
1 Comment 279 views
How to choose a corporate gift that hits the spot?

How to choose a corporate gift that hits the spot?

by MammothMoth
0 like 0 dislike
1 Comment 270 views
What should i know about A Retail Merchant Account?

What should i know about A Retail Merchant Account?

by HarmlessRose
0 like 0 dislike
1 Comment 278 views
0 like 0 dislike
1 Comment 1,486 views
0 like 0 dislike
0 comments 969 views
Avoiding the Scams: How to Find a Business Opportunity That is Right for You

It is heartbreaking to me that so many women with big dreams get knocked down by ruthless business opportunists who take advantage of a woman's passion and trusting nature by offering bogus business opportunities. Don't get me wrong, it happens to men too; it just really frustrates me ... simple steps in generating your very own, unique business ideas, you will definitely find a business opportunity that will be both fulfilling and profitable.

by Finderpros
0 like 0 dislike
0 comments 455 views
Build a strong business with strong customer relationships

Most businesses spent time attracting customers to a product or service, trying to win their trust and then ending the whole process with a sale. That tactic seems obvious to most people. What often is neglected is the post-sale follow up with customers, particularly when it comes to online businesses. ... perform. Treat your customers like your own family. Go out of your way to communicate with them. If you neglect them, they will go elsewhere.

image
by Cybora
0 like 0 dislike
1 Comment 287 views
How to start a LLC company?

I want to start a llc company. Looks like process is very complicated. Any tips? I want to start in new york state.

by nicejone
0 like 0 dislike
1 Comment 374 views
How to find a Restaurant Equipment Supplier Crucial for New Restaurant Owners ?

How to find a Restaurant Equipment Supplier Crucial for New Restaurant Owners ?

by PlushSeal
0 like 0 dislike
1 Comment 348 views
How to find a Direct Manufacturer?

How to find a Direct Manufacturer?

by Emufasa
0 like 0 dislike
1 Comment 276 views
How to create a Business Strategy?

How to create a Business Strategy?

by Celestiger
0 like 0 dislike
1 Comment 283 views
How to choose a reliable Business Broker?

How to choose a reliable Business Broker?

by HarmlessRose
0 like 0 dislike
1 Comment 291 views
0 like 0 dislike
1 Comment 312 views
0 like 0 dislike
1 Comment 237 views
0 like 0 dislike
1 Comment 274 views
How to Inform Employees When You Sell a Business?

How to Inform Employees When You Sell a Business?

by Octopixy
0 like 0 dislike
1 Comment 241 views
How To Choose A Commercial Painting Contractor?

How To Choose A Commercial Painting Contractor?

by BunBunny
0 like 0 dislike
0 comments 1,481 views
Who Has The Largest Retail Location In The World? The Internet, That's Who!

We often hear about the many thousands of locations where you can find a Wal-Mart, or a Target, or even the remaining K-Marts. But none of these retail giants can even come close to the Internet. I remember when many of us first got online circa 1997. There were only 17% of Americans online and ... can't find locally, you'll get those products at amazingly low prices, and you can do it all without leaving the comfort of your home or office.

by ForceSoldier
0 like 0 dislike
0 comments 1,393 views
The changing face of self made business

How does young, dresses casually, rich sound to you? Even to a casual observer it is perfectly clear that today's entrepreneurial environment has changed a lot over the past 20 years. At the age of 25, a young person can very well be manager of his/her own company or, if the person is not ... internet traffic to us, and they are paid up to $175 for the sales made. Earning money online doesn't get any simpler nor easier , said Ben Lloyd.

by Madept
0 like 0 dislike
0 comments 692 views
Start Internet Business – Learn How Easy It Is

If you want to start an Internet business, the best place to start is of course the Internet. You can find everything you need to plan your business and get it off the ground. The process is simple right from the start. Internet business owners offer you a chance to share in their good fortune by showing ... a business waiting for you on the Internet. Need to start an Internet business? It's not that hard there are well known ways to do it.

by HairySeahorse
0 like 0 dislike
1 Comment 282 views
is it good idea to have 50/50 equity business partnership ?

is it good idea to have 50/50 equity business partnership ?

by BumblingBee
0 like 0 dislike
1 Comment 272 views
How Can A Timesheet System Help Your Business?

How Can A Timesheet System Help Your Business?

by OpinionOwl
0 like 0 dislike
0 comments 476 views
How To Advertise And Build Brand-Name For A Product Online

According to the research of authors Al Ries & Laura Ries, there are 22 immutable laws of branding to build a product into world-class brand. However, one of the laws that's always right to any products is The Law of Advertising . Today, we know that there are a lot of ways to advertise. ... today, Audio4fun is the first name of voice changer software in the world. So, why don't you try to speech-up your business by online advertising?

image
by HuggingDuck
0 like 0 dislike
1 Comment 281 views
0 like 0 dislike
0 comments 1,077 views
Business Planning Help: Finding The Help That You Need

Business planning help is help that is structured to help your business in any way that you need it. It can help you to get your ideas worked out. It can help you to find the legal aspects of your business and take care of them. It can even help you make decisions that you ... same problems yourself. Business planning help is also available throughout the web a well. Get focused and get motivated to finding and implementing your business plan.

image
by HarmlessRose
0 like 0 dislike
1 Comment 252 views
0 like 0 dislike
0 comments 1,221 views
17 Important Points To Consider Before You Hire A Law Marketing Consultant

As we fast approach the new year, many firms are preparing to launch their 2006 marketing efforts. If you're thinking about hiring a marketing specialist, make sure you consider these 17 key points. 1. Objective Advice. Consultants who are paid fees are more likely to give you unbiased advice than consultants ... you with at least 30 or 40 testimonials from other lawyers. If he provides only a few, you may be reading comments from his in-laws.

by PlaySeal
0 like 0 dislike
0 comments 531 views
8 Ways to Avoid Litigation When You Sell a Business

Based on recent litigation storm clouds, business owners planning exit strategies better batten down their legal hatches. As a small business owner, your company most likely represents a significant portion of your net worth. That's why it's crucial not to let litigation wash it away when ... free transition. Take the time to recognize and act on the many opportunities you have to minimize your litigation risks and reap the benefits later.

image
by TwinNut
0 like 0 dislike
0 comments 282 views
5 Great Reasons To Hire A Telecommuter

How would you like to hire someone that is more motivated and more qualified to do the work and costs you less than your average employee? No, I am not talking about hiring someone illegally. You can accomplish this simply by employing a telecommuter. Let's take a look at ... position. Once you have experienced all the benefits a telecommuter brings to your organization, you may even consider converting even more positions to telecommuting.

by PlushSeal
0 like 0 dislike
0 comments 1,302 views
7 Tips to Starting a Successful Small Business

Getting a small business off the ground is challenging to say the least. Here are some tips which will prepare the ground for running a successful small business. Have Goals This is where it all starts - the foundation for success. Know exactly where you are heading. What will the business look' ... has not gone right train yourself to ask, What good has come out of this? Understand that in every problem there is potential for good.

image
by Mosquiche
0 like 0 dislike
0 comments 229 views
Five Steps to Create a Budget for your Small Business

How I hate budgets! Every time an accountant told me to put together a budget for my company, my response was - When I get the time I will! I just never seem to get the time. For several years when I first started my company I never paid attention to a budget. ... to review your actual financial statement (Income Statement or Profit and Loss) to your projections. Have systems in place to increase revenue and decrease expenses as necessary.

by UncleRhino
0 like 0 dislike
0 comments 237 views
What to Look For in a New Franchise

Want to buy a franchise opportunity? Great idea! Here is a high-level overview on what to look for: Operating History - A long history of success is the #1 thing to look for. If many other franchisees have been successful over the years, your chances are probably pretty good that you will be ... a section on their web site for franchise re-sales. Beware if there are a lot of re-sales relative to the total number of franchises in existence.

by HairySeahorse
0 like 0 dislike
0 comments 215 views
Business Tools to Help You Run a Successful Business

When setting up a business, even the best prepared among us will struggle to do everything and remember everything. It is very unlikely that we will understand all of the financial and legal ramifications of a new business, especially when we need to concentrate on getting that elusive first sale or completing the first ... with the wrong (or no) tools. You will find that the time it takes to get the right tools will pay off time and time again.

by VirtualAssassin
0 like 0 dislike
0 comments 266 views
3 Lifesaving Tactics to Stay Afloat In a Constantly Changing Marketplace

Let's face the facts... old-fashioned marketing tools aren't going to keep your business a growing and prosperous entity in today's marketplace. Hey, this month's hottest techniques and information will be obsolete in six months. Now, I'm not saying that old marketing principals can't be ... current products and services. Don't let the speed-of-light changes in the market take your business under. Stay afloat with these proven tactics.

image
by PositiveVoid
0 like 0 dislike
1 Comment 349 views
What to look for when working with a partner?

What to look for when working with a partner?

by GraveGrass
0 like 0 dislike
0 comments 233 views
Business loan and how to acquire it

Business loan can cater to your each and every aspect of your business. The urgent requirement of funds for your business can be catered through a business loan. It is easy to seek a business loan now a day. All you need to do is to fill up an online application form and your application form ... other resources. Don't let funds come your way in becoming a successful entrepreneur. Seek a business loan and expand your business, the way you want.

by Cybora
0 like 0 dislike
1 Comment 793 views
0 like 0 dislike
1 Comment 326 views
0 like 0 dislike
1 Comment 320 views
How to automate your business with autoresponders?

How to automate your business with autoresponders?

by PlushSeal
0 like 0 dislike
1 Comment 373 views
How to stay competitive In the 21st century ?

How to stay competitive In the 21st century ?

by GardenParrot
0 like 0 dislike
0 comments 214 views
How to manage my customers?

I am having issues managing my customers. How can i manage my customers effectively?

by Finderpros
Connect with us:
...