Holding your nerve in Retail

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  20th Nov 2017 - 12:56 20th Nov 2017
Paul OrangeTree
OrangeTree Online

Holding your nerve in Retail

This is not new, although the names of the events are new.

But retailers get too often panicked into joining in with every bonanza of giving stuff away that happens.  Black Friday is the newest.  

I am not saying don't ever join in.  But there is a common thread that has been a feature of retailers ever since I began.  And the big players do it, too.

They over discount.  They over buy.  They create activity with no profit.

Don't panic.  Price fairly.  Give top service.  Hold your nerve. 

  20th Nov 2017 - 14:06 20th Nov 2017
Lee Rickler
Point and Stare

Mauve Monday. 

  20th Nov 2017 - 14:42 20th Nov 2017
Paul OrangeTree
OrangeTree Online
Quote: Lee Rickler (Point and Stare)

Mauve Monday. 

 

Taupe Tuesday. 

  20th Nov 2017 - 14:52 20th Nov 2017
Lee Rickler
Point and Stare

Wheat Wednesday.

  20th Nov 2017 - 15:37 20th Nov 2017
Paul OrangeTree
OrangeTree Online

Thrift Thursday

 

  20th Nov 2017 - 16:52 20th Nov 2017
Chris Maslin
Maslins Accountants

Yeah I can see retailers get that more than most, especially with temporary sales. Ie January/Boxing Day sales, summer/winter sales, black friday sales, or DFS every day of the effing year sales.

I think this applies more generally though, in terms of when you see the competition doing something, do you panic and copy them to avoid being left behind? Or do you hold your ground? If the latter, and (potential) customers ask you why you're not doing X, how do you respond?

  20th Nov 2017 - 17:10 20th Nov 2017
Lee Rickler
Point and Stare

... and so we're back to Black #buymyreducedpricedstuff Friday.

  21st Nov 2017 - 10:28 21st Nov 2017
Paul OrangeTree
OrangeTree Online
Quote: Chris Maslin (Maslins Accountants)

Yeah I can see retailers get that more than most, especially with temporary sales. Ie January/Boxing Day sales, summer/winter sales, black friday sales, or DFS every day of the effing year sales.

I think this applies more generally though, in terms of when you see the competition doing something, do you panic and copy them to avoid being left behind? Or do you hold your ground? If the latter, and (potential) customers ask you why you're not doing X, how do you respond?

 

As a retailer, you very much do feel tempted to panic.

Which is my stance on this.  Do not panic.  The big Black Friday offers now are involving a level of discount that means the retailers are losing money on the stuff.

Now that is fine if you over purchased, had a terrible season, and need to dump stock for cash.  But if you don't you are generating activity, cost, and gross losses all on the same day. 

Unless you have access to stock at bigger margins than anyone else. But even then, if you are stocking branded stuff, you don't have enough margin to give 70% discount.  Probably not even 50%. 

 

  21st Nov 2017 - 10:30 21st Nov 2017
Paul OrangeTree
OrangeTree Online

The latter part of your question, Chris, is of course very important.  How do you respond to your customers if they ask you why you are not joining in.

That will, of course, depend on the kind of brands you are selling.

The best answer is to be honest.  I have decided not to sell at a loss.  That can result in a conversation where you do sell something, perhaps at a discount I can make sense of. 

But over aons of years I have learnt not to be panicced.

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