Economic Downturn Provide Retail Opportunities.
Now is the time to expand business. Particularly if you are retailer! Fundamentally there is no better time. Yes sales are difficult to come by and as a fundamental this is a crucial part of the equation. A business must have the revenues if it is to be viable in tough trading periods. But this I only one component of the big picture, a picture that sees many business fundamentals really becoming financially conducive to the cause.
Let’s examine these fundamentals.
Rent.
Landlords are finally waking to the fact that empty retail space means no rent. Why is that landlords take so long to work out that they need to help their tenants remain viable to keep the cash-flow coming? And yet they do.
But now they need the revenue as well so rents are coming down. With good research and competent negotiation skills its possible to not only pick up a lower rental on retail space, but you can get good deals on fit-out and refurbishment, and even some assistance with plant. And there is every possibility you could secure a lengthy rent free period as well.
The ball is in your court on this one.
Declining Competition
Now take a good look at competitors. Depending on their debt structure, there is every possibility that they are struggling in some form or another. This could be with poor stock holdings, bad management, poor customer service, or simply just tired complacency. And you can generally be sure that they are either suffering at a lower rate of sales increase, or through a drop in overall turnover.
To compete then requires that you do the basics well. These can be broken into the following categories; 1) have good stock holding (and quality) and b) give top service – this means best service. And it’s worthwhile to be price competitive but know your market position. Avoid destroying your market perception by slashing prices as this send out all sorts of conflicting messages.
But know this. Some of your competitors just want to get out. They believe that there is nothing more that they can do, and they have lost complete focus. Some of them may even be up for sale….at a super low price. Keep acquisition up your sleeve and pick off the sites that are worthwhile.
Supplier Support
When times are tough the suppliers and wholesalers are looking for revenue growth as well. They will be seeking every expansionary probe they can find. And they will be keen to get in behind a business with solid basics providing strong development tendencies.
They will have money to spend as well and if leveraged correctly can range from sharp volume purchases prices right through to financial assistance for any number of items in your store. Again you will need to be sharp with your skills as in most cases they will not be forthcoming. And in most cases they will be competing for YOUR business. So play hardball because you can be sure it will not be there forever.
And Finally…
Technology
Have you noticed technology development never stops even during the tough times. Planes are bigger and better, cars a quieter and gruntier, and computers are faster and more capable.
The heart of every retail store is the POS system, more so today because of the advances over the last decade. Well composed software provides database management systems that track most data and have it appearing on a screen in your home or on your phone.
Quality systems provide the crucial data that aid the management of your business and the point to note today is that THEY EXIST! When you latch on to a system that ‘drives’ your business for you, then you have the means to be effective in any tough trading environment.
So look to grow yourself in these so called “tough times”. Everything is in your favour if you just look to see for yourself. Now is the time to expand your horizons and who better to do this with than Scanning Systems Australia.
Make your demo enquiry today and test drive the best POS system on the planet.
