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Deciphering Office Lingo
No matter what business you are in, there is a culture in your office. The language of the office is fluid, changing as quickly. Keeping up is important because clear communication is the key to success in everything you do. Here a few terms you...
Get More Than Just "A Presence" On The Internet
The water purification salesman had been talking to us for what seemed like hours. During a lull in his monologue, I asked if he had a website. "Yes. In fact, we are the only independent distributors of this product who does," he proudly...
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The StALE Way To Success

Big, lazy and sale. What do these three words have in common?

Sales seem to be the only technique our mega-big retailers can think of - no, change that - can do (why waste time thinking!) to get more than their fair share of the available business. And by continually using this approach and seemingly dominating over their smaller competition the message they send out is that it's the only successful way to promote.

This goes way beyond retail to every type of business enterprise. The truism becomes 'if you want to have a successful promotion make it a big SALE'.

There are many other effective ways to promote without destroying margins and starting a price war. You'd think Australia's department stores would realise this. Yet despite claiming that they are about quality, choice and service (ha, ha!) they act like their discount department store counterparts.

I remember about a year after Dawn Robertson, yet another American Coles Myer import was brought in to resuscitate Australian department store icon Myer Grace Bros, attending a function where she was the guest speaker. She was very impressive. Focussed, energetic, a retailer through and through. She told us that Myer was moving away from the sale mentality, that things would be different. And for a few hours I believed her. Until the next day when Myer had a big storewide discount based sale!!!

I'm not the only one who is thoroughly fed up with this behaviour. Late last year the excellent 'Sellers & Sources Fashion Merchandise Report', a must read for smaller clothing retailers in Australia and New Zealand, featured this issue. Their front page story began -

"When David Jones and Myer resort to a constant round of destructive sales, it gives rise to criticism that surely if they were better retailers they would not have to resort to such tactics to


get customers through the doors. After all, most upmarket boutiques are trading quite well at the moment and if they can do it, why can't the majors?

Sellers and Sources approaches a range of it's readers each month to check on trading conditions, which labels and styles are selling and which aren't etc. The same edition included these comments. (I've not identified the retailers but you will find them in Edition 10, 2004 of Sellers & Sources.)

"We haven't been too affected by recent Sales but because we are so close to Albury we do feel the effect of Myer having sales all the time. Christmas will never be the same because people get their Myer Gift Vouchers and simply wait until Sale time." Wangaratta, Victoria.

"David Jones could make a much bigger profit for their shareholders if they had Sales twice a year. It worries me that they show so little regard to the labels and the people who make them. They do not value their product, the market or the industry they are in." Woollahra, NSW.

"I am about 20 metres from Myer's side door and every time I look up I see a Sale sign....They should stop all this discounting because it encourages a Sale mentality among customers. They make it very difficult for us small traders but they don't care about that." Ballarat, Victoria.

Mildred Eden, editor of Sellers & Sources, as well as providing a great source of information for clothing retailers has been advocating a common sense approach for her industry for many years. To find out more contact her in Melbourne on +61 3 9428 5729 or fax +61 3 9429 6076.

About the author:

Jurek Leon is a speaker, trainer and consultant. To subscribe to Jurek's FREE monthly email newsletter contact him at Terrific Trading by phone on +61 8 9312 1075, email info@terrifictrading.com or view his website www.terrifictrading.com

 

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