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Photo by Ed Waters, Jr.
Bob Phibbs, left, known as The Retail Doctor, left, talks with a member of the audience Thursday night after a presentation at the Delaplaine Visual Arts Education Center on how small businesses can be successful in a recession. Purchase this photo |
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A recession might not necessarily mean the death of a business, but running it poorly can.Bob Phibbs, known as The Retail Doctor, spoke to about 100 downtown Frederick business owners Tuesday night. Phibbs said presentation -- from greeting a customer to the look of the store to marketing -- makes the difference between a successful store and one that might not survive. "Retail is hard, you have to work at it," Phibbs told the audience at the Delaplaine Visual Arts Education Center. "But it is easier than ever to stand up in this market." He advised retailers to avoid discount books and coupon campaigns and concentrate on customers. "You don't need to worry about getting more people in the store, just take care of those who are already there," Phibbs said. "How many times to you walk into a store and someone is on the phone, or texting, or talking to a friend or doing everything except waiting on you?" The store should be clean, comfortable, organized, well-lit and convenient. Phibbs said put the best merchandise out front, not the items that aren't selling or are on sale. "You need to change your shoppers from mission to browsers," he said, explaining that people who come in for a specific item may spend more if they are encouraged to look around. Too many stores have created a "castle" at the sales counter, he said. Clerks or even the owner will sit behind that "castle wall" and acknowledge shoppers only if they purchase something, "or say 'thank you' as I walk out the door," he said. One positive, but difficult, factor of the recession is that it means stores might have to get rid of some employees. "It may even be family, a long-time worker. I don't take this lightly," Phibbs said. "But if they have a negative attitude, don't respond to customers, they may have to go." He said give workers a chance to change, but if they don't respond, let them go. Shoppers usually fall into two categories, Phibbs said. There are "thinkers" and "feelers." The thinkers analyze what they are buying, how much it costs, how it works, how long will it last. The feelers are more impulsive, but they need that friendly attitude from the shop. They are the ones who will return if the experience is good and will tell their family and friends how great the store is. Feelers make up about 62 percent of shoppers, he said. Too often, Phibbs said, going into a store is like walking onto the set of the old police show, "Dragnet." Sgt. Joe Friday would simply ask, in a bland attitude, "Just the facts." That, he said, is the wrong attitude. When you greet someone, look for a clue to build a business relationship, not just "Can I help you?" "If the guy walks in with a 'Soccer Dad' shirt on, what do you say? Ask him if he is a coach, where is his team from, did they just play. Get to know the person and spend time with them," Phibbs said. Many stores seem to want to rush customers in and out, a real turnoff for any shopper. Add-on sales are important. "You make the money on the second item you sell, not the first," Phibbs said. Most items have some connection to something else. If selling shoes, ask customers if they need shoe trees. If selling paint, ask if they have masking tape or the right size and type of brush. The shop has to be different to get the customer's attention. "If you want 'vanilla' you won't succeed," he said. He used the example of looking at a barbecue grill. The clerk told him the grill was $50 cheaper at another store, but that store would take two days to deliver it, unassembled. The clerk's store, however, would deliver it, assembled, to the customer's house in two hours. That clinched the sale. "In a recession you can't do what you did a week ago. You have to change and you will succeed against the discount stores," Phibbs said. "If you don't you will be here," he said, using a projector to put www.outofbusiness.com on the wall.
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