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- How to increase your profits?
How to increase your profits?
The owner of any store is always interested in the question of how to increase profit from sales. Some effective ways are presented in this article.
How to increase grocery store profits
The methods of increasing profits largely depend on the profile of the establishment. For a grocery store, you should start with a thoughtful selection of assortments.
Find out which items are selling the worst, stop ordering them and get rid of your stock as soon as possible. This is especially true for small stores, as it makes no sense to fill the shelves with goods that will take up space without making a profit.
The second step is to study the range of competitors and find out if your store contains all the goods that are regularly purchased by the population of nearby houses.
The third step is to figure out what products your retail business will build on. For stores located in residential areas, this is, first of all, bread, milk, tobacco and alcoholic beverages, for which no one will go to the supermarket, far away in order to save mere pennies.
These products should always be on the shelves, and in addition to them should be offered products that, as a result of market research, are most often bought by your competitors’ customers.
Only a naive person can think that high prices can increase a store’s profits. With the same quality of goods, buyers always tend to choose a retail outlet where they can buy cheaper products.
To increase profits, you need to slightly lower the markup, or change suppliers.
Comfort for buyers
When considering the factors driving a retail store’s profit margins, pay attention to customer convenience.
“Our people do not take a taxi to the buloshnaya”, however, having taken care of parking in front of the outlet, you will ensure that not only residents of the nearest houses will come to you, but also drivers who remembered that they forgot to buy food on the way to the country house , or decided to take food with you, so as not to put a friend in an awkward position.
It is imperative to make sure that the area at the entrance to the store is free of snow and ice, and there are no deep puddles. After all, buyers will most likely prefer to walk several tens of meters to another outlet, rather than risk slipping or jumping over holes of water.
Shop owners should pay special attention to the porch. It should have a visor and a non-slip floor covering.
To ensure the comfort of customers, care should be taken to ensure that the sales area where groceries are sold are free of unpleasant odors and that everything around them shines clean. Consumers will bypass a store where the floor is covered with dirt, the windows are dusty, and the glass is stained. Not only will it be unpleasant to be in it, such a point of sale will not inspire confidence, and buyers will have big doubts that food storage was organized in accordance with sanitary and hygienic standards.
The store should be well lit both inside and out. No one will buy a pig in a poke, guided almost by touch. This means that saving on lighting not only cannot be considered a way to increase profits, but will also lead to its fall, due to the loss of customers. In addition, the store must be visible from afar. To do this, you will need to provide him with decent external lighting.
Interior and exterior
The decision to enter an unfamiliar store, the buyer makes based on the appearance of the sign. It makes sense to take care of the design of the facade of the outlet.
If you are considering a grocery store, then the interior design should be modest, no frills, unless, of course, we are talking about a trading establishment that sells gastronomic delicacies. However, it is unacceptable for the store to have shabby walls or smudges on the ceiling.
To increase the average profit, you need to increase the number of buyers. However, store owners often notice that, despite competitive prices and various merchandising gimmicks, their number is declining. The reason may be in the queues. A modern person appreciates his time and does not want to visit a retail outlet, knowing that he will have to spend a quarter of an hour there to buy a loaf of bread and a bottle of milk.
If there are always a lot of people at the checkout, you should increase the speed of customer service. You may need to replace staff or hire another salesperson.
The reason that shoppers will avoid your store may be due to staff’s negligence towards shoppers. No one wants to go back to where they were rude, or watch the salesman discuss everything on his mobile phone for a quarter of an hour.
Much of the above applies to retail outlets that sell clothing. There are also differences. In such establishments, the main factor in increasing profits is the competent work of the staff, which should be taught:
- sell a more expensive product, vigorously, but not intrusively, offering it to customers;
- indicate to the buyer the thing that will make up a set with the item of clothing he has already chosen (a shirt for jeans, a wardrobe trunk for a skirt, etc.);
Additional services (delivery, the presence of a mini-studio, a discount on dry cleaning, etc.) will also help to increase sales.