Retailing Shouldn't Be Like Playing Tackle Football With Giants
"Don't be there!" It's Miyagi's main instruction about avoiding punches in "The Karate Kid" movies.
When you choose inventory, develop offers & send marketing messages, don't do those like big retailers. There will be similarities but if you do exactly what big retailers do, you'll be THERE when they punch.
It's that way in sports also.
If you're controlling a ball in their games in their stadiums, they'll still have a lot of control.
They won't be so rough on you when you don't play games their way.
Ideally, your clients shouldn't feel like they've been roughed up either.
Why do consumers seem to favor big retailers? Maybe local retailers don't offer anything better. Or maybe it's just consumers' misperceptions.
If you have resources to offer, but consumers don't know about or remember values you offer, in effect (for them) - you haven't offered those values.
Focus Specifically On Situational Factors Or You'll Be Carried Away
Big retailers test many things. Even when some things don't work, big retailers rework variables & test again. They stop individual tests, but they never stop testing.
They test products, departments & store formats. In other words, they change how they RUN their businesses.
Analogy - In the 1970s, running back John Brockington was a major part of the Green Packers. Brockington carried opponents as they tried to weigh him down. They slowed him but they didn't effectively stop him. They got carried away until they stopped his legs.
Piling on top of other runners worked, so (potential) tacklers stubbornly tried what worked on others.
If allowed to try, a child - using an effective tackling technique - could've been more effective than those professional football players, who were paid thousands of dollars each.
(It could seem like big retailers try bringing you down by piling up cheap products.)
Bringing John Brockington down was a matter of taking his legs & feet out from under him.
Brockington adjusted running techniques according to each situation. In general, he wanted to win but I'm sure he focused immediately on each position & being as effective as possible in it. Winning required him to do his best in specific conditions.
During a play, a touchdown is possible for anybody who holds a ball. But getting away from or at least outmaneuvering opponents is often necessary before scoring.
Getting into scoring position requires changing the conditions. Successfully dealing with changed conditions requires making more adjustments.
Adjust Your Conditions & Help Consumers Adjust Their Conditions
In a similar way, when your store is open, you're ready to sell. You shouldn't expect consumers to be ready to buy - yet.
You should focus on helping consumers adjust their perceptions about aspects of their reality. You might need to persuade them to adopt an idea & help them adapt that idea to their conditions. You can do it by attracting them based on their experiences instead of focusing only on selling products/services.
Many retailers are set up to sell NOW or else - there's no attempt to give information that might lead to sales later.
It works out in some situations since some consumers want or need quick transactions. Delaying could lead to their situations deteriorating & bring them more stress.
Yet they don't always know where, when or how to begin.
At your local level, you should have far better ways to guide consumers than clerks in big stores obeying orders from executives in far away offices.
Consumers might be almost ready to buy, but they always don't know what or from whom. They don't know what the best solution is or who would give an unbiased recommendation.
Scoring Position Is More Than Philosophical
An obvious baseline statement - Consumers naturally realize businesses are designed for profits & they tend to approach businesses based on that. They just don't want unmerited profits to be made at their expense. Yet despite this being obvious, too few businesses are set to show concern for people & their situations.
It should be a fully obvious exchange of value that will extend after the transaction.
When you're in situations when sales might be imminent, who is scoring position? Are you ready to score? Or are consumers ready to score? It's more than just thinking you & consumers are each about to score.
For consumers to have full confidence in you, they should perceive you to be blocking opponents/problems. Even if - while blocking - you cross goal lines before them, you should be doing it to help them score. In essence, they're the ball carriers.
Another analogy - MacArthur Lane often blocked for John Brockington. When Brockington scored a touchdown, it was a score for the team.
Mac Lane also did well when he wasn't blocking. He knew how to run, so he knew to help runners. He knew how to block, so he knew how to help blockers so they could help him in a full team effort.
You need to do well in scoring for yourself without seeming to take undue advantage of individual consumers. (Some consumers don't understand why small retailers charge so much more than big retailers.)
Many retailers just sell products (pass a ball) & let consumers take all the risks after that. Helping consumers avoid some risks is a big value. It's vital for you to show how much value you add & why that value is worth what you charge.
Even when people can afford to pay higher prices (compared to big box discounts), they don't want to feel cheated. If a product seems to be the same, they want to pay the lowest prices. It's why you should offer more than products.
Sometimes, you can't add significant value, so you can't afford to make seemingly better offers. You only should compete in cases when you can offer clear advantages in certain conditions.
Consumers don't always think about this - A cheap product (especially without enough information) might produce less than a full solution, mitigation or prevention. They might waste what little they spend plus waste their time, energy & other resources.
When you can add value, it may be hard to put a price/value on everything you put into your offers. What a solution is worth depends on each consumer's conditions.
You've Got Your Problems, They've Got Theirs
Your costs per product, per square foot, etc. are apt to be higher than a big retailer's costs. Those are your problems, consumers already have too many problems without trying to solve yours.
Retailers tend to understand - As far as customer service goes, their job is to help consumers. Yet some retailers act as if consumers have a responsibility to help retailers.
Could you logically fault consumers for stubbornly doing things, if you're also inflexible?
When consumers refuse to yield to retailers, they're just being normal.
It's a mistake to think consumers are fickle, greedy or anything else negative. Those thoughts won't help you understand consumers.
Consumers are either niche members or not.
Trying to build a business by selling to anybody but niche members is bad. Sales to general consumers should be occasional only.
If you can't sustain a thriving business by selling only to niche members, you don't have the right niche or business model.
Cover Their Exposures So They Won't Feel Fleeced
If a consumer needs a specific product, which is available only from you & a big store in another city, s/he might feel you're extorting money unless you offer more value - especially information. That information value doesn't have to increase your costs drastically since your knowledge base is probably spread over your whole inventory.
You can find information quickly with a computer.
Though consumers can use search engines, you might know the best search terms, know how to interpret the results & apply the best information in the best way. Explain the information. Urge them to ask questions.
Understanding Standing & Moving
Though it's vital to avoid depersonalizing consumers, I'm using the following metaphor -
Consider consumers to be like a retailer's legs & feet. The company (body) will fall when it moves in a different direction (compared to where consumers are & where they're going). If the body stays in a position while the legs & feet move, the body will fall.
Even if the body isn't predisposed to falling, it can be knocked off balance easily by tacklers who are balanced before they hit. In most encounters, a more balanced opponent has better options for control from beginning to end.
Well balanced competitors are moving with consumers. They can knock you over easily if you stand still.
If you're doing only what you did before, you're standing still.
If you're standing still, you are NOT leading or following consumers, which means you aren't offering as much value as you should.
You're off-balance if you're offering less value than you should.
Struggling to maintain (or regain) balance feels like a more immediate priority than maintaining or regaining control over another object. A higher, longer term priority - like holding a ball or winning a game - fades in comparison with trying to avoid injuries during a fall.
You might've seen players holding a football while falling. They have to work on that because it doesn't happen naturally. (It's somewhat like spending money to avoid losing money.)
People need to expend effort to avoid natural but situationally inappropriate reactions.
Plus, you can probably recall times you or others fell while trying to stay in place. Sometimes we need to move to avoid a total loss of balance.
It can be like that in testing business methods. If you struggle to stand, you might fall. If you move in the direction you or consumers are moving/leaning, you might avoid falling down.
If you stand, opponents can catch you & knock you over - in effect - forcing you to move. You'd be better off moving proactively & maintaining control.
You need a planned direction so you can quickly determine if a potential move could be optimal.
Standing still too long can be costly.
The effect can be similar for consumers who feel they might lose opportunities if they buy from unfamiliar retailers.
(It's partly related to comfort zones even when those zones aren't optimally comfortable or safe.)
They might have some vague feelings of vulnerability. They need to do something but when they're vulnerable, they don't always know what to protect or how.
It's one reason consumers resist buying what they need - they don't want to lose what they have by wasting resources on the wrong things. But at other times, many will rush into action without knowing which potentially better options are available. They don't realize what they might lose, except they realize they could lose an opportunity.
Add Value With Your Interpretation
Based on your interpretation of consumers' situations, you have a responsibility to advise them about which solution, prevention or mitigation is better even if you don't have it. You should do your best to explain your advice so they can determine if you understand them & they understand you.
If they use up resources without total fulfillment, you'll lose your opportunities also. But it's important to emphasize protecting them instead of protecting only yourself. If they perceive you're doing it just to get a sale away from competitors, you won't be perceived as helping them.
After feeling burned, they'll be more cautious.
It's important for retailers to help people gain without losing. Part of that is being ready for certain actions.
Confident consumers aren't always as ready as they think they are. They also need help perceiving & avoiding more problems.
Thank you for using my blog. Please let me know if I should clarify anything.
Copyright 2016 Dennis S. Vogel All rights reserved.
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