Advice for retailers
I was recently asked for business advice from someone that loved the simplicity of the 2 product menu at our high street shop. He’d just become manager at a coffee shop that also made sandwiches and was thinking of being more of a restaurant. What instantly sprang to mind was focus.
After launching a smoothie bar and redefining ourselves as a healthy fast food outlet, i could say with 100% confidence, that every area of a business will benefit from focusing on making the fewest things you possibly can. If you can be known for doing one thing, that’s perfect.
Your training will be easier resulting in increased consistency. Less equipment will improve the ergonomics of space and reduce the amount of costly sq ft wasted on prep space or stock. You’ll know exactly who you are targeting. And in return, customers will know exactly what you sell. They’ll assume you’re the expert – which you must deliver on.
If you try to be a coffee shop, sandwich shop and restaurant, the chances are your coffee won’t be as consistently good as a coffee shop. Your sandwiches won’t be as good as a sandwich shop etc. You don’t get, and keep, customers by accident.
By doing one thing you can go to extreme lengths to do it perfectly, to award winning standard – not cutting any corners. Then you need to do a good job of communicating that. Your shop should be a theater – a celebration of your product and the process that goes into making it.
Some good examples of food and drinks companies in York and Leeds are the espresso bars like Laynes, La Bottega Milanese, Spring Espresso, they’re even more focused than a coffee shop. Look at the York Hog Roast with the hot, juicy meat joints in the window. Perfect.
A personal favourite is the Luxury Ice Cream Company in York. By focusing on Ice Cream they can go to the trouble of pasteurising their own cream. With seating, the place is very popular year round, even though the core product is very seasonal. It’s a beautiful shop that celebrates ice cream and understands exactly who their target market is – girls.
It takes balls to say ‘we only sell ……….’. But having a bigger menu doesn’t = more customers.
Do your research first as to what product will be most appropriate for the location. Be patient. Unlike the internet or market stalls and street food vans, location can’t be changed once you’ve signed that lease.
Decide what your perfect customer looks, and behaves, like. Plan carefully your complimentary products for changes in the seasons. Then jump in with both feet. As Steve Jobs famously presented, ‘focus is about saying no’. He knew a thing or two about business. And retail as it turned out.
Simon
Say hi on twiiter: @SimonALong
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Comments
5 total comments on 'Advice for retailers'
#1 | {url_or_email_as_author} said:
It’s very easy to think that if you offer more you’ll sell more. In many cases all you’re doing is substituting one item for another and incurring extra costs in the process. The 80/20 rule is also a great help, 80% of your sales will come from 20% of your products. The trick is to identify that 20% and make sure you don’t drop one accidentally when you’re trying to re-jig your inventory. The other 80% are however fair game!
#2 | {url_or_email_as_author} said:
Wise words Mr Long.
I guess it’s finding that balance between maximizing on new opportunities arising from the custom your business set out to attract (a coffee shop also selling cakes etc), without diluting from what you’re actually renowned for doing. You would assume certain businesses should take a stricter stance on “keeping it tight” and remain a niche/expert retailer, where as for others, diversifying can be a game changer. Particularly where services are concerned, simply “remaining” might not be working at present and you can always get ‘stuck in traffic’ so to speak. Providing a service that takes you away from the original route, might be the key - perhaps the only key to the intended destination.
Thinking big, take apple for example. Increasing their product base is always on the agenda, providing there is that link back to the products that they were made famous for. Changing their name to “Apple” from “Apple Computers”, shows how their emphasis had diversified from the original game plan to deal with more consumer electronics. But hey, that’s apple - not real life.
But I’d agree, for start ups and retailers in general, being a jack of all and master of none can wreak havoc across all aspects - ergonomics, marketing, target markets, training, focus and above all quality; when not part of a structured and strategic master plan…
#3 | {url_or_email_as_author} said:
Excellent points Steve and Ali. Whilst i’ve used Steve Jobs as an example, you have to be very careful to follow the diversification example set by multi nationals when you’re a small business. Incidentally, the first strategy that Jobs implemented when returning to Apple was to reduce their product line from 70+ to 4. They then built on that. They were then able to produce some ‘insanely great’ feats of engineering.
There’s no harm in innovating in the delivery of you core products. In fact that’s better than diversification every time.
#4 | {url_or_email_as_author} said:
i agree with the principal focus on a key product but you have to be different from the crowd, often the 20 of the 80/20 rule is so important at being able to differentiate you from the crowd. Offerings have to be specific and the operation supported by great training, accurate marketing, supportive merchandising and a design frame to support it. The Apple point is well made. at some point or another tastes/politics/diets will move the market away from your key product. You may already have your next move lined up from your supporting cast. A recent project of mine involved a Deli..that started to make sandwiches from their products…the Deli was a step too far for the market available. The sandwiches introduced them to great new products….beverages where added to accomodate..the unit struggled, We got involved, redesigned and redefined the offering, tinkered with the operation . Now it is a great cafe that also sells accompanyong deli. Sales went up 300% within the first month of the refurbishement. Excellent delivery of all three elements are supported in the deisgn and weekly training…1 hour every wednesday evening for all staff followed by a social. Check out ‘Olive and Bean’ album on my big blue design facebook page.
#5 | {url_or_email_as_author} said:
Excellent point Ian. Diversifying or ‘complimenting’ seems to be a more accurate explanation, must include meticulous attention to training and operations. And in the clarity and consistency of your marketing.