Retail Contrarian

Work and Vacation

A newsletter reader once asked me if I ever work in the summer as it seemed I was always writing from somewhere other than home. Summertime for my family usually includes more than one out-of-town vacation plus day trips to area beaches. I can't think of a better place to be than sitting on the beach with my family, good friends, good food, and good music. I work all year for those moments. I'm always appalled at people who work so much they don't make time for vacation.

At Bose I worked with people who would tell me how much vacation time they had accumulated, or even worse, how much they had lost since they didn't use it. For some of these people, not using their vacation time was like a badge of honor. I thought it was a badge of stupidity. I don't work for work's sake. I work to provide for my family's current and future needs and to live life to its fullest.

Vacations are when memories are built. It's where I get the opportunity to recharge my batteries and clear my head. Having employees take vacations is just as important to a business's financial health as strategic planning, hiring great employees, and being incredibly focused on the customer. So if you have found yourself too busy to plan a vacation or two this summer, stop reading and go do it. Life's too short, my friend.

For those of you who are taking vacations this summer, here a few things to consider.

First, I'm not going to give you the lecture about it not being okay to even think about work, let alone sneak off to do some. If you want to check your email, check it. If you want to check your voicemail, listen away. The way I see it, if you have to "sneak" then you're probably doing so at the expense of your family or friends. It's not checking in on work that is an issue but rather at what expense.

Here's what I do. I'm an early riser. I love getting up in the morning and having my morning coffee while everyone is still is asleep. I take a few minutes and check my email to see if there's anything so important it can't wait until the following week. Twenty minutes and I'm done. Now before you say that by doing that I'm not really getting away and recharging my batteries, I disagree. Wondering what I'm missing might be a bigger drain than checking my email before the rest of my family is awake. The key is that I very rarely take time away from my family to work. So quit feeling guilty about doing any work on vacation but feel guilty if work takes time away from your family and friends.

Next, when you're on vacation, let go. If your employees can't run the business without you then your problems are too big for you to be on vacation. Don't call the store or your managers every day. You'll give the impression that you don't trust them. If the store burns down I'm sure they'll call you. Other than that, leave them alone. This isn't about you, it's about them. Show them you that you trust and appreciate then. When you get back from vacation be sure to thank them for their hard work.

Bose once had a manager who, whenever he came back from vacation, yelled and complained that his store was all messed up. The staff told me that the store could be improved tenfold and the guy would still complain. What a jerk. I told him so, too. If you come back from a vacation to find things you don't like, develop your people so it doesn't happen again. The next time you go on vacation set very clear expectations about what you want to see when you get back. But don't be a jerk after sitting on the beach for a week while your staff worked double shifts to cover the store.

Finally, have fun. Forget about the store, district, or company. Be in the moment. Enjoy it. I can guarantee that when your life comes to a close you'll be remembering the time you spent with the people who are special to you, not how you fixed a pressing cash flow issue one summer while staring out at the ocean or mountains. Here's wishing you a wonderful summer of memories! I know I'm creating mine as you read this.

Play To Win

It was the bottom of the last inning and my daughter's softball team was down 4-0 in the championship game. It had been a hard-fought game and if a few bounces had gone the other way we could easily have been the team up 4-0.

One by one the girls came up to bat and got their hits. The rally started and before you knew it the score was 4-1.  A big hit brought in two more runs to make it 4-3.  One more hit and the game was tied 4-4 with the winning run on third base. The energy and excitement in our dugout was unbelievable.

On the next pitch the ball got past the catcher and the runner made a dash for home. The catcher threw the ball to the pitcher covering home just as the runner went into her slide. At that moment it was as if the world went into slow motion. We all looked at the umpire who paused for an endless moment before he shouted, "OUT!"  The girls had made an incredible comeback and we were off to extra innings.

In the first extra inning neither team scored.  In the second extra inning the other team finally put a run across the plate to take a 5-4 lead.  Again our team had to score or their season was over. The middle of the batting order came through and the game was now tied 5-5.

The girls on both teams were near exhaustion and I know the constant battling back was taking a toll our team. While helping the catcher suit up I saw that she had tears in her eyes. Since we had just come back to stay alive I asked her what was wrong.  She looked at me and said, "I don't want to lose." 

I realized that what had kept these girls in the game to this point is that they had never stopped playing to win. But now the fighting back had started to wear them down to the point that some of the girls were now playing not to lose.  I told the catcher that she had to play to win or we had no chance. We could not afford for her to play any other way.

The same thing is true in business. Every week I talk with retailers who must constantly battle to get and keep customers, to make their sales goals, achieve healthy profit margins, and to have a profitable bottom line.  Most of these retailers play to win but I do meet some who have begun trying not to lose.

They've become so cautious about not making mistakes they no longer take any risks. They quit buying new products or trying new things because they're afraid of being wrong. They overly focus on what their competitors are doing instead of playing their own winning game. As a result, their products are tired or low in stock, the staff has lost their energy, and store sales are in that slow death spiral.

Now back to the game.

In the third extra inning the other team scored another two runs.  It was our turn to bat and we were at the bottom of the batting order.  I was amazed at how some of the girls who hadn't hit much all year faced a strong pitcher with grit and determination.  We almost had the most unlikely of heroes not once but twice.  Unfortunately, in the end we lost the game 7-6.  The girls were very disappointed - some to the point of tears.  We reminded them that they played their hearts out and told them how proud we were that they never quit playing to win.

While these girls may have lost this game I know that in the long run, as long as they never play to not lose, they'll be successful no matter what they do.

Are you going to play to win today? I hope so.  And if at the end of the day the score isn't what you wanted it to be, the game isn't over.  You'll be back in it again tomorrow, and the next day, and the next. . . .

Play to win. 

No Dissing the Customer

I love to tell the story about the time I was in a meeting where the owner of a company addressing his managers went on and on about how important customers were and how they were the lifeline of the company, etc. Afterwards a manager came up and asked him if he had had an opportunity to speak to an unhappy customer of his. He replied that he did and then continued to trash the customer. It completely nullified everything he had told his managers.

Regardless of our position, we should never ever diss our customers. This is especially true of managers and owners whose actions speak much louder than their words. As I always say, momma said if you have nothing good to say about someone then don't say anything.  No matter what, don't diss your customers!

Some Far Out Retail Tips

One day I sat down to write one of my Daily Retail Experience articles without a topic in mind. That doesn't happen very often; most of the time I know what I plan to write about before I begin. Sometimes what I start out to write about and what I end up writing are different things entirely - but I digress.

I decided that listening to one of my favorite radio stations might motivate me to get past my blank Word document. I turned on the Classic Rock station and blasting out of the speakers came the old Bachman Turner Overdrive song Taking Care of Business.

Here I am singing along, "Taking care of business every day. Taking care of business every way." I think to myself, that's great retail advice. If we're going to be successful we need to make sure we're always taking care of business.

I began to wonder how many nuggets of good retail advice might be hidden in some of those old 70's songs. So to lighten up your week here are a few that I thought of:

Thank You by Sly and the Family Stone (1970)
Is that one of your favorite words to say? So often it means a customer has made a purchase or someone has done something to please you. Not only is it great to say, but it's music to your customer's ears as well. Are your people saying "Thank You" at every opportunity?

You're So Vain by Carly Simon (1972)
While shopping for a new Blackberry the other day I had the wonderful opportunity to learn everything about what my salesperson likes in a phone. Too bad he never bothered to find out what I wanted. I should have sung, "You're so vain, I bet you think this sale is about you. Don't you? Don't you?"

Make Me Smile by Chicago (1970)
If we can make a customer smile the chances are good we'll make a sale. It might not be that day, but that customer will be back.

You've Got a Friend by James Taylor (1971)
A few years ago I attended a retailer's annual meeting where the theme was "Make a Friend." The idea was that if they could engage a customer enough to "make a friend" that they would be more likely to create a sale. As a result they had a very good year that year. Are you making friends with your customers?  You know what they say: "Friends don't let friends leave the store empty handed." Well, maybe I'm the only "they" who says it but that's okay. 

What's Your Name by Lynyrd Skynyrd (1977)
Shouldn't you know your new friend's name? Asking a customer his/her name might be uncomfortable at first but the more you do it the easier it gets. Try it for one week and I know you'll see the difference in your sales numbers.

Blinded By the Light by Manfred Mann's Earth Band (1977)
As a customer I can't stand it when I turn to look at something in the store and am "blinded by the light." When's the last time you checked the position of your spotlights?  One of the biggest mistakes I see stores make is to try to throw a spotlight on a product that is just too far away from the light source.

Communication Breakdown by Led Zeppelin (1969)
Don't let the "nervous breakdown, drive me insane" happen to your team. Consider a weekly written communication to ensure that everyone on the team has the same information. This also keeps you from spending time in staff and one-on-one meetings repeating information that can be easily communicated once in a memo/newsletter. It also keeps you from having Second Hand News. (Fleetwood Mac - 1976)

The First Cut is the Deepest by Rod Stewart (1976)
Well that's great advice when you're marking down products. When it's time to move through those slow sellers or seasonal products the first markdown should be the biggest.

Take the Money and Run by Steve Miller Band (1976)
Enough said.

Now that I’m done Reminiscing (Little River Band – 1978), it’s time to hit the floor because The Show Must Go On (Three Dog Night – 1974) and it is time for you to make lots of Money (Pink Floyd – 1973).

Take It Easy! (Eagles – 1972)

Does Your Team "Polish the Customer's Sunglasses"?

Someone reminded me the other day that the sunglass salesman at the beach who offers to clean your glasses for free sells more sunglasses than the guy who just sits on the stool and hopes you stop and buy something.

By offering to clean your glasses the first guy gives himself an opportunity to get to know you, develop a relationship and, hopefully, interest you in a new pair of sunglasses. He might irritate a few people every now and then but they probably weren't going to stop and look at sunglasses any way.

So let me ask, do you and your team offer to "polish up your customer's sunglasses" or do you just "sit on the stool" and hope someone makes a purchase? The difference will make a definite difference to your top and bottom line!

The Best Advice Applied to Retail

Fortune magazine recently ran an article called "The Best Advice I Ever Got" that included some great points. Here are a few:

From Michael Bloomberg - Mayor of New York City
"Always ask for the order, and stop talking when the customer says yes."

I suspect that no more than 10% of retail salespeople ask for the order.  Most of them can't because they don't know if the product meets the customer's needs.  The others are just showing the product, not making a sale. When your team asks for the order on a regular basis - sales are sure to follow.

From Indra Nooyi - Chairman and CEO of Pepsico
"My father was an absolutely wonderful human being. From him I learned to always assume positive intent. Whatever anybody says or does, assume positive intent. You will be amazed at how your whole approach to a person or problem becomes very different."

This is great advice in both business and life.  At work it can be applied in two key areas. The first is when dealing with customer returns. Most customers who return a product are doing so with a positive intent.  For one reason or another, the product has failed to meet their needs.  But because there are a couple customers whose intentions aren't as positive, we sometimes carry a negative feeling about the few over to our dealings with the many. All of us have been on the other side of the counter and don't appreciate a challenging return process.

Another area to assume a positive intent is when managing individuals who are struggling at their job. Years ago an HR rep reminded me that very few people wake up in the morning planning to go stink at their job.  She told me to always assume that the person is struggling because they "can't" do the job, not that they "won't."  Only after I made sure I attempted to give the person the skills and knowledge to do the job could I come to an informed conclusion.

From Thomas Murphy - Former CEO of Capital Cities/ABC
"The last thing a college professor told us at the end of the class was to remember for the rest of our life is to not spend time on the things you can't control. Instead, spend your time thinking about what you can."

This is essential advice when running a business in today's topsy-turvy economic challenges.  You have no control over rising oil prices, a big drop in the stock market, or Big Brown not winning the Belmont.  What you can control is how often you communicate with your best customers, the quality of the experience you deliver in your store, and the attitude and spirit of your staff.  And if you don't believe you control that last one you will struggle to succeed.

From Nelson Peltz - CEO of Trian Fund Management
"It was my dad who gave me the best advice of my 45-year career.  He said get sales up and keep expenses down.  That sounds simplistic, but it is the way my father got 4% margins in his food business when his competitors made 1% or 2%. The goal is to get revenues moving and to keep expenses from rising at the same rate so that the margins expand."

When consulting with retailers who are struggling with sales the first thing they assume is they have to increase expenses to get revenues up. Not so.  More than anything what is required is to shift where executives/owners and managers spend their time and focus.

Remember, there is no cost involved in working harder or working smarter.

So let me ask, do you have any advice you've been given that you'd like to share?

Stop to Start Growing Sales

In talking with a Mentor Program client  I was reminded that owners and manager often have to figure out what they need to stop doing before they can start taking the actions that will help them grow their sales and profits.  What do you need to stop doing today?

Speaking of the Mentor Program, we just put up a new website for it. Check it out at http://www.retailmentorprogram.com

Give This Away to Grow Your Sales

"What is the one thing you as a manager or owner must directly provide your employees in order to grow your sales?"

When I ask this question in a workshop I always get a variety of different answers.  I hear everything from "product knowledge" to "current promotions" to "company updates." It's true that employees need that information but it isn't essential that they hear it directly from the manager.

Someone inevitably comes up with the answer I'm looking for:

Feedback.

Feedback is extremely important to an employee's growth and their ability to excel in their role. Without feedback, employees don't know what do more of, what to do less of, and what to do differently.

If giving their employees feedback is so important, why do so many managers not provide it on a regular basis?  I think the biggest reason is that a lot of managers think they're giving feedback - but they're not.  Or at least not in a way that the employee hears it.  Another challenge is that some managers simply aren't comfortable doing so.

If you fall into either of those two categories, or even if you're an old hand at giving employees feedback, consider these three things that will improve the feedback you give your staff and, ultimately, improve your store.

1. Don't think of feedback as positive or negative - think of it as praise or instructions. Positive feedback is our way of praising an employee and telling them to continue to do something in a way that meets or exceeds our expectations for their position.  Whenever someone's behaviors or actions fail to meet our expectations anything we say about it is labeled by some people as negative. The only time feedback is negative is when it is delivered in a negative way.  Otherwise you're just instructing an employee how to do something better, or differently, in order to meet or exceed the expectations of the role.

2. Our feedback, both praise and instructive, should focus on the behaviors and actions that we can see, and not about the person him/herself. Telling an employee that he's wonderful doesn't explain what behaviors he should continue. Telling a person that you're pleased with how well she's suggesting products and is now leading the store in sales does. The same holds true for giving instructive feedback. If we don't keep our focus on actions and behaviors the feedback becomes personal, which will not help the employee improve.

3. Feedback needs to given in as timely a manner as possible. Telling an employee how well they handled a challenging customer right after the customer leaves the store is much more effective than waiting eight months for their performance appraisal. Obviously you can bring it up again on the review but don't miss the chance to say something right away. The same holds true for instructive feedback. You want to be timely but you must make sure you make it the appropriate time. Giving an employee feedback on what they could have done differently with a customer is very productive; doing it in front of the customer is not.

So let me ask, are you giving enough feedback for your employees to succeed so ultimately your store succeeds?  To find out the answer ask your employees that same question.