PMA February 2010 : Page 52Business & Marketing Better business Writing this column isn’t usually very diffi- cult. Retail is a vibrant industry, full of inno- vation, new initiatives, and players large and small. Even in difficult times, there’s rarely a lack for new merchandising initiatives, trends, or success stories to profile. Pair this business with photography, and it’s generally a passionate lot who loves what they do and likes to talk about their successes. For example, I recently profiled Pat’s Cam- era Cottage. Owner Pat Patterson has been in the photo trade for nearly 70 years, 26 of them in the middle of Pennsylvania Amish Country – not exactly a hotbed of technol- ogy – but Pat has done more than persevere. He thrives by offering in-home consultations and personal follow-ups by phone and mail; and he accepts bartered items, which he then sells on eBay. It’s untraditional, but it works. Then, there is Hunt’s Photo, Video and Digital, with seven stores in New England. Hunt’s never invested heavily in the print side of the business; so when printing declined, it didn’t hurt them nearly as much as other photo specialists. Instead, they’ve carved out a niche selling hard goods, and have managed to keep it profitable. Finding and profiling successful indepen- dent retailers has become a staple of this column. So it was with great surprise my lat- est retail “find” asked me to hold the phone one minute while they closed the office door and said with a sigh, “No, thank you. I think I’ll pass.” What? Big retailers do this all the time. Companies such as Target don’t talk to the press much at all, and certainly don’t want to be profiled in industry publications. They think it keeps the competition from knowing what they are doing. Yeah, right – as though the competition didn’t have eyes or use the internet. It’s a rare thing when independent photo retailers decline a feature in PMA magazine. 52 PMA — February 2010 — www.pmai.org Looking good in the eyes of one’s peers is typically met with enthusiasm and an affirmative response. In this case, the hesita- tion wasn’t to hide the secrets of success, but quite the opposite. This particular retailer wasn’t sure how long the store would last, and was planning some drastic changes to sustain the business a little longer – changes that might mean getting out of the camera part of the business entirely to focus on ac- cessories and services. It was a sad conversation and one I imagine could be repeated again and again with many retailers. There’s precious little data on the numbers of independent retailers out there, and store-closing numbers compiled by places such as the National Retail Federation and International Council of Shopping Centers skew heavily toward larger chain stores. Last year, Circuit City alone closed more than 500 locations. PMA estimates there are only 3,500 businesses in 4,200 locations and storefronts left in the United States. I sought the advice of George Cloutier, CEO of American Management Services Inc., and author of “Profits Aren’t Every- thing, They’re the Only Thing,” for advice. Cloutier cofounded Partner America, a program to help foster small and mid-sized businesses. He makes a living advising small businesses what to do; and while photo retailing isn’t his specialty, per se, there are some universal truths that apply to small retailers regardless of the product category. His advice starts with expanding into higher margin accessories and products that might not be found in other camera shops. Survey customers, and find out what other things they’ve bought in the last 12 months and what they plan on buying in the coming year. Look for a common item, product category, or trend. Then stock it if possible – or partner with another retailer who does – and bundle camera equipment or a service with it. Going out of business? Not so fast Product diversification is key, says Cloutier. He favors using loss leaders to get people in the door. Once you have them, be sure to collect as much information as possible, including home addresses, phone numbers, and email addresses. Compile a mailing list and database, and then use them to regularly send newsletters. Success stories from retailers such as Pat- terson regularly include this type of activity. Patterson calls customers on the phone to see how they’re faring with their purchases, and to see what else they might need. Find out when a customer’s child has a birthday. Offer a lesson on how to use the camera for the event, and take advantage of an oppor- tunity to sell a photo book or party favors. Find a way to compete on the internet, insists Cloutier. Free shipping and no sales tax is taking a sizeable bite from small businesses; but if retailers don’t find ways to offer added value, they won’t be around long to complain about it. If retailers don’t have a web presence, they should build one now, or beef up what they have. Forget about social networking, he says. There’s little benefit to Twitter and Face- book for the small businesses. Instead, use the time to build a database and create col- lateral to send to customers. Host an in-store party once a month. Have a wine tasting, Cloutier suggests. It’s simple, inexpensive, gets people in, and creates a lot of goodwill. Let them take pictures and try products. Use that new database to send reminders. Cloutier calls this basic blocking and tackling. Like any good program, it works if the retailer works it. “The good thing with blocking and tackling is it will raise [sales] volume 10 percent to 30 percent,” he says. “It’s up to retailers to try these things. It won’t change a business overnight, but it will begin to improve it.” n By Laura Heller Better BusinessGoing out of business? Not so fast Publication List |
