PERSPECTIVES

From The Co-Founders

rss

Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

Yes, to you.

Since 1999, you and people like you have supported the mission of The Retail Owners Institute® to “Eradicate retail bankruptcies,” one way or another. 

We give thanks to you. 

As you may know, the worldwide retail industry has the highest failure rate of any major industry.

Ahh, springtime! A time for new beginnings, fresh starts.

Spring also is a time for "Spring Cleaning" – that time of year to spruce up, clean up, fix up. Sigh! Another chore.

This year, here's how to break out of that another-to-do-task rut.

It starts by seeing your stores the way your shoppers see them. Then, with that awareness, the spruce up, clean up, fix up tasks can actually focus on attracting and appealing to your very best customers. 


And we have the (free!) tool to make all this happen.

We're sure you'll agree. Misinformation can be very harmful. Retailers surely don't need more harmful anythings!

Just last week, we came across the proverbial straw that broke the camel's back. It was a post on the Intuit Quickbooks site*, titled "Inventory Turnover Ratio." And the explanatory article was accompanied by an "Inventory Turnover Calculator."

What do we take exception to? The misleading and/or incorrect information it provides. For example, their "Inventory turnover calculator" requires two entries. 

  • First, "enter the total costs involved in selling your products."

We must take exception. "Total costs involved in selling your products" is NOT the same as Cost of Goods Sold. Nor do they specify that it should be for a 12-month period of time. 

  • The second entry they request: "Average inventory cost."

We must take exception. What they surely meant to say is inventory @cost. 

  • Plus, they simply refer to "12 months of ending inventory balances," without specifying that it should be for the same 12 months for the previous entry.
Only the Beginning
Turns out, this is only the beginning of the misleading information.

COVID-19 thumbs/KnowledgePower.png

People don't go into retailing to be financiers. 

  • They love the merchandise they sell, and/or they love the people who buy the merchandise. (Think book stores, sporting goods stores, gift shops, etc.) 
     
  • Others love the "theater", the excitement of retailing. 
     
  • Still others want to be their own boss. 

But few are attracted to the financial part. 

Which is exactly why The Retail Owners Institute website has been built!

Given our years of experience consulting with retailers, especially in turnaround situations, our speaking at conferences and publishing in trade publications, we wanted to "level the playing field" for retailers.

COVID-19 thumbs/Valentines.jpeg

Just One Week Until Valentine's Day!

What better time to send a love note to ... your customers?! 

Yes! That's right. A Valentine. Just a Valentine. No strings attached! Show your love!
  • No special discount coupon.
  • No "bounce back" offers ("come back by such-and-such-a-date to save $$$.")
  • No "sign up for our Insider's Club."
  • No "We want to know what you think about your most recent visit."
  • No expectation of them doing anything more for you!
  • No obligation.
Just an out-and-out thank you note. A love note for being your customer! 

COVID-19 thumbs/Value.jpeg

What is the definition of "value" for customers? Pretty straightforward, actually.

  • Value = benefits received for the burdens endured.

Wait. What? "Benefits received?" "Burdens endured?"

Turns out, the only single answer to "What is value?" is, "It depends." 

Don't just roll your eyes. What constitutes value for your customers increasingly is a make-or-break part of retailing. 

COVID-19 thumbs/bounce back.png

Retailers are notable for their optimism and their resilience.

And the last couple of years have provided ample opportunities to showcase their ability to bounce back.

But now, it's 2022. Time for those customers to pick up the slack. And here's an idea for helping them get started. Without costing a penny in advertising!

Print up some "bag stuffers" (you know, conspicuous notes) inviting them to come back in November.

COVID-19 thumbs/streetart.png

We recently learned of a restaurant with a kids menu which is quite unusual.

Of course, having a kids menu is not unique. But here's what IS unusual about this one.

When kids are asked "What would you like to eat?", often their answers can range from "I don't know" to "I don't care." 

But at this restaurant, here is what each all-too-familiar answer brings to the table: