New to the retailing game? If so, we’re sure that you are finding out a lot about the business as you go along. And we’re even more sure that by now, you will have made several schoolboy errors that you cannot believe. Don’t panic; it’s all part of the learning experience. But some of these common errors can damage your business more than you might think. Let’s take a look at some of the mistakes you can make in retail that might cause you harm – read on to find out more.
A poor location
First of all, many retailers have dreams of opening a busy and bustling shop that is never empty, and always full of happy, spendy people. But your first problem will arise when you realise you have picked the wrong location for your store. It can be a difficult thing to judge, as you have to consider the extortionate rates on the high street to the lower levels of footfall in side streets, but in simple terms, you never want to be 50 feet away from success.
The wrong employees
The people you hire to represent your business in the flesh are as critical to your success as you are. It’s that simple – and if you get it wrong, it can have catastrophic effects. An employee with a bad attitude can result in 10-20 customers leaving your store with nothing in the course of an afternoon. And when those people go home, statistics suggest they will tell up to 10 people about their experiences. That could result in up to 100-200 people that will never visit your store, all down to that one individual. Happiness, friendliness, and product knowledge are all far more desirable qualities to your customers than the ability to work a till or look cool.
A naive approach to security
Give an inch, and some people will take a mile. That’s the cold, hard truth for retailers who don’t take security properly in this day and age. Any location with a lot of money on the site is a big target for thieves and criminals – and there are shoplifters to contend with, too. The solution is to be prepared for the worst. Cash up your tills regularly, use something like CountEasy to speed up the counting process, and bag your money and bank it as quickly as possible. Invest in security cameras – and perhaps even a security guard. A physical presence might be enough to put off all but the most hardened criminal from targeting your store.
A lack of knowledge about margins and costs
You will need to know your figures if you want to make it in retail – otherwise, you will struggle to break even. While massive sales will draw a larger crowd to your store if you are selling for too low you could end up with a financial disaster on your hands. Similarly, if you are wasting money on back-of-house stationery or equipment, it’s going to wipe out all your profits from sales. Control your costs, know your margins for every single product, and you should evolve to become a successful retailer – without a schoolboy in sight.
