It’s your choice: Nimble or slow?
Let me say what many of you probably have been thinking over the past few weeks: So far, 2007 hasn’t exactly set the world on fire, especially in retail sales. And since I’m not mincing words, let me add that most recent reports are not calling for a turnaround until mid year.
The National Retail Federation, for example, just issued a mixed-bag prediction, saying that retail sales this year will increase 4.8%. That’s the good news.
In the next breath, the NRF’s chief economist, Rosalind Wells, warned that the ongoing housing slowdown likely would take a toll on sales of building materials, electronics, appliances and — you guessed it — furniture.
Meanwhile, UBS Securities headlined its just-issued report on residential furniture this way: "2007 Outlook: Off To A Bleak Start."
The company based that headline on a cyclical slowdown at retail, weakness across all retail markets, the housing slowdown, an accelerated transition to Asian-sourced goods and an ongoing string of bankruptcies.
No matter what the predictions, you have two choices: Sit back, read the news and do nothing, or get up and do everything in your power to make news by bucking the trend and growing your business.
Like it or not, you woke up this morning in a brave new world. But here’s the good news: So did your competitors.
In the old days, when the world was not quite as brave, or the rules were not quite as new, the battle was often between the big and the little. Today, in an arena where change is the only constant, more often than not the battle is between the nimble and the slow.
To my mind, this means that retailers, regardless of size, need to focus on having what the consumer wants, how she wants it and when she wants it. The days of winning by offering good furniture at competitive prices delivered in three to four weeks are over.
Today, it’s all about speed to market, which means your back room and logistics operations had better run with the precision of a top-of-the-line BMW.
While 2007 may have limped out of the gate, you don’t have to. Lace up your running shoes, look toward the finish line and hit it hard!
Pamela Bonds commented:
I have to say that selling retail STARTS with an educated designer IF you are selling custom, high end goods. Then if you are good, which hopefully you should be (or get out of the biz) you need someone to watch your back, to make sure that the warehouse isn''t stealing your sale, that corporate is not screwing up your sale, that you have people working with you, managing your sales, so you can continue to sell. I worked retail at a high end store for a short time and sold in one month what the store sold in a month with 4 salespeople. The regional came up after I sold this amount of goods and said "Do you know that you sold a lot of furniture, now you have to manage it." No, I don''t. If the company is working properly, the warehouse doesn''t show favoritism, my manager isn''t jealous and knows how to credit customers in a timely fashion (among other faux pas) then all is well. But this company was a time bomb and when I left I couldn''t wait until I saw the sales drop and drop and drop. Of course, I never said I told you so, but I thought it!
P Bonds commented:
I have to say that selling retail STARTS with an educated designer IF you are selling custom, high end goods. Then if you are good, which hopefully you should be (or get out of the biz) you need someone to watch your back, to make sure that the warehouse isn't stealing your sale, that corporate is not screwing up your sale, that you have people working with you, managing your sales, so you can continue to sell. I worked retail at a high end store for a short time and sold in one month what the store sold in a month with 4 salespeople. The regional came up after I sold this amount of goods and said "Do you know that you sold a lot of furniture, now you have to manage it." No, I don't. If the company is working properly, the warehouse doesn't show favoritism, my manager isn't jealous and knows how to credit customers in a timely fashion (among other faux pas) then all is well. But this company was a time bomb and when I left I couldn't wait until I saw the sales drop and drop and drop. Of course, I never said I told you so, but I thought it!
Larry Hoy commented:
How to be nimble with out reinventing your company? The way that I see it the problem is more with the communication. Than it is with the speed of idea to product. Permit me this example. Wal-mart does not do custom work, they are not fast at replentishing stock, they are not great at customer service, but they are selling. How?
Buying is seasonal, buying is done in established cycles, everyone here knows generally, what is going to sell and when. Wal-mart does too, and that is what they sell. Wal-mart doesn’t sell custom products. If a customer doesn’t like the color, Wal-mart sells them a can of paint. Wal-mart doesn’t sell what is coming in next month’s shipment. Wal-mart sells what is in stock. Put it on the self and the customers carry it out the door.
We don’t need speed on custom jobs; we need to find out what is on the shelves. Translated what do we have sitting in our warehouse right now ready to be put on a truck.
How? Ok, here is the sales pitch. I work for FURNISHweb we have a product that among many other things pushes your inventory, current and incoming, to your dealers and reps. Showing them what you have on your shelves. Picture this, a dealer speaking to a customer, ‘I just checked our computer, that table we can have for you in 4-6 weeks, or I saw that this manufacture has a very similar table in their warehouse in Virginia. I can have it in your home by Friday, and $500 off the purchase price.’
Yea, our program does that. It does a whole lot more: Inverntory, Shipments, Orders, Invoices, Product specs, and it works with your existing back end software. Find out more at www.FURNISHweb.com
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