Inside Outdoor Winter 2018

First of all, you are asking the customer to do the math and most are math-challenged. Secondly, custom- ers over time develop an immunity to the %s. It takes a higher and higher % to get them to move. In today’s world, 20% barely moves the needle unless it is used on an item rarely discounted. A $25 coupon has more motivation than a 25% off coupon even though it might represent the exact same discount on, say, a $100 item. A recent online study tested the effectiveness of various email offers. A “$50 off” a purchase was chosen as a good incen- tive that would still maintain sufficient margin. Using the same parameters, a 15% off offer was selected as being of equivalent value. The $50 off coupon had a whopping 72 percent higher conversion rate and generated 170 percent more revenue. While poor buying – including se- lecting bad styles, incorrect sizes and price points, duplications and buying minimum quantities that are too large to absorb – can all be root causes for excessive markdowns, but the number one cause is still overbuying! Ninety percent of profitable sales come from inventory that is less than 10 weeks old. Knowing that, progres- sive retailers identify slow sellers in season and react accordingly. Under- standing the markdown truths, espe- cially the fact that the cost you paid has absolutely nothing whatsoever to do with the amount of the markdown, is key to controlling markdowns. Secret #9: Don’t be Afraid to Say “No” The people you hire in the early days of your retail career are not always the ones you might hire later. The right skill sets and attitude for the stage your company is currently in should be a de- termining factor. Sometimes that means saying “no” to a would-be employee who fits all the other criteria. If a certain line doesn’t move you or more importantly your customers, don’t waste their time or yours writing token orders just because someone showed you the line. That’s their job. It isn’t personal, it’s business. One of the main reasons I encounter for retailers getting overstocked and overbought is that they buy from too many vendors. Finally, you need people in your organization with the smarts and con- fidence to respectfully say “no” to you. Surround yourself with people in your company and outside advisors who have the integrity to stand up for what they believe even if it differs from what you may think. Adopting these “Nine Secrets of Re- tail Success” will help you stay focused and profitable this year and beyond. The “Nine Secrets for Retail Success” along with many other topics are discussed in Ritchie’s book “Retail Revelations-Strategies for Im- proving Sales, Margins, and Turnover” available on Amazon or by contacting the author at RSayner@rmsa.com. winter 2018 | Inside Outdoor 27