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How to make a business successful?
30.08.2011 8673

How to make a business successful?

"How to choose a supplier and choose the right store assortment?", "How to increase commercial performance?" - questions from the category of eternal. You can talk about these topics for hours, while each time discovering something new for yourself. At least that's what Ralf Ringer thinks. Its employees devoted seminars to these topics, which took place within the framework of the business program of the Shoesaccess exhibition.

Fierce competition in the shoe market today does not give buyers the right to make a mistake. Fortunately, while the total turnover does not fall, however, it does not grow as fast as we would like. Therefore, the formation of the assortment on each shelf in the store should be treated with maximum responsibility, remembering that in six months it will either help the store increase its turnover or, on the contrary, will drown it.

Buying not shoes, but business

“You should always remember that you (the buyer, the store owner) do not choose shoes,” says Tatyana Mikhailova, head of the Ralf Ringer assortment policy department. - You choose a business. Therefore, the first step in finding a new source of profit should be, no matter how trivial, the search for your price segment. ”

It is believed that the mass market "pumps" the largest volume in pairs, but with a minimum margin. Buyers purchase the product primarily because of the price. Accordingly, the one who has this price succeeds. When buying a pair, for example, for 500 rubles, an entrepreneur sells it for 1000. The profit seems to be small, but sales in this segment are often made. The only caveat - choosing this segment, you should not work with one brand, otherwise all brand crises will directly affect your profit.

The middle price segment is distinguished by the fact that here the buyer is more focused on the brand and quality. Price is no longer a critical factor. Therefore, profit from a pair purchased for 1575 rubles. and sold for 2600 will be more than twice as high as the one received by the mass market. The undoubted advantage of working in the middle price segment can be considered the reputation of a brand with which the entrepreneur collaborates. Ideally, she should work for him, bringing fans of the brand to the store.

It is prestigious to work in the premium segment, it is possible to get excellent margins. The only downside is that there are few such buyers, and the place for the store must be chosen carefully.

“In order to decide which of the price segments is more interesting for you to work with, you need to understand what you focus on: sales volume or margin. As we found out, these two factors are not always interconnected, ”says Tatyana Mikhailova. - In the first case, profit can be secured by pumping large volumes. Selling 200 pairs at 500 rubles, you get 100 thousand of income. It would be great if part of it was not taken away by the rent and salary of employees. In the second case, the picture is different - the profit from the pair is significantly higher at an extra charge of 90%. However, the efforts spent on selling 200 pairs of shoes of one price segment and 200 pairs of another will be different. Therefore, choosing a supplier, be sure to evaluate the company's turnover - how many pairs per season it sells from one square meter. ”

Planning and analysis

Igor Kamelkov, CEO of the Ralf Ringer retail chain, recommends doing regular analysis to increase commercial performance: comparing the number of sales, revenue, average cost, rental rate, transportation costs, staff salaries, household expenses and operating profit of the store over the past few years. A separate analysis is required for the indicator of selling in pairs, which must be carried out in all categories (model, size, color ...). At the same time, it is better to divide the year into months and weeks, which will allow the most accurate identification of spikes and falls in sales. “With this data, it is much easier to predict the delivery time of a product in such a way as to reach the peak of demand for it,” Igor Kamelkov believes. "Having drawn up the sales schedule, you will see that the supply of winter shoes to the store should be, say, no later than the 45th week, after which the demand for them begins to decline." With the help of the same schedules, you can plan sales and take out shoes from the store, which will simplify and organize work.

Another step towards increasing business performance can be sales planning. Plans also recommend building not space (for a year, five, ten), but weekly. Moreover, each employee must be familiar with these plans. He definitely needs to know what results are expected from him. “If you increase the sales plan for the seller immediately by 200 pairs per month, most likely he will tell you that this is impossible,” continues Igor Kamelkov. - Therefore, it is better to describe in detail how much more pairs he should sell per week, taking into account both weekdays and weekends. As a result, the seller will understand that he must sell only three pairs more on weekdays and on 27 on the weekend. Accordingly, these figures will seem to him more real. "

Another step towards increasing business performance may be stimulating customers. That's just the discounts, promotions and discount cards now the matter is no longer limited. We will have to develop work standards for sellers. By the way, according to the experience of Ralf Ringer, the change of a negligent administrator brings 20 - 30% profit to the store in two weeks.

Discounts also need to be treated wisely. Do not make them on all models at the same time. It is better to throw off a certain amount from an unsuccessful model, so that subsequently the money earned from its sale is invested in a successful model.

Not the least role in revenue growth may play and cost control. To do this, you need to understand what can be reduced to a minimum without loss of efficiency. As an example: earlier in Ralf Ringer stores, shoe mats were cleaned according to a schedule, regardless of their contamination. When they began to do this as needed, cleaning expenses were reduced. “Of course, these are trifles, but nevertheless it is from them that the costs of maintaining outlets are added up,” adds Igor Kamelkov.

The only thing worth mentioning is that these factors will work only together. Individually, each of them is not able to change the situation, and only together they will help achieve the desired result.

"How to choose a supplier and choose the right assortment of the store?", "How to increase commercial performance?" - questions from the category of eternal. You can talk about these topics ...
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