Showing posts with label buying strategy pro shop advice. Show all posts
Showing posts with label buying strategy pro shop advice. Show all posts

Thursday, November 4, 2010

The Extra Mile - Salesmanship is Service




Being on par in terms of price and quality only gets you into the game. Service wins the game.

- Tony Alessandra


This is a repost from a year ago, but is something I believe strongly in as a differentiator and appropriate for this time of year.

I’m going to define salesmanship as interaction with a customer that produces a sale and start this discussion with first impressions. The customer needs to be greeted or in the case of the associate on the phone acknowledged with eye contact and a simple but pleasant “Excuse me while I finish up with this call.” Be courteous and friendly with everyone who enters your space. Whether they ever patronize the shop or not, they are potential customers and more importantly everyone represents word of mouth.

Dress according to the image you are trying to project. All key staff members should be wearing the merchandise you sell and look good doing so. When you shop elsewhere, pay attention to the sales people in the various establishments. Which employee best represents the image of their store? Which appear sloppy or out of place? Now think about the customers coming through your shop. What kind of associate will attract that customer and look good putting them at ease. Most reputable apparel vendors in the golf industry want your staff wearing their goods; asking your local company rep what the best way to accomplish this will be should be part of every sales call.

It is important in any kind of selling to know your product. Most golf shops have a limited enough inventory and finite enough number of skus that this should not be difficult, but it does require a commitment on the part of the Leader to educate accordingly. It should never be assumed that your staff knows your product unless they have been given the opportunity to receive the appropriate information. Good retail sales people who work strictly on commission can strike up a conversation on any item in their domain. All assistant pros and most shop help are working in golf because they love the game. Translating that energy and love into service and sales is the challenge. If you own your own shop or your job requires a successful shop, think of it as perhaps the most important challenge that you have.

It is human nature to want to talk about something you are confident you know a lot about and to be shy and vague when you don’t. The educated assistant pro wants to tell you what he knows that you probably don’t about performance shirts as well as hybrids. He knows that the worse way to engage you in conversation is to ask the dreaded “May I help you?” Jack Mitchell in his book “Hug Your Customer” describes this phrase as “pressure to buy something” that will always result in the response “No, just looking.” At this point the conversation is over. Sales associates who ask about the customer before getting around to discussing the product are assured the conversation will continue and this is easier in golf pro shops than it would be at Nordstrom, for example, because of the mutual interest in the game and/or the Intimacy Factor.

“So how did you play?”

“Are you headed to the range?”

“Here are two sleeves of your custom ball. Do you need any for your guests?”

Another tact that many professionals use is to acknowledge you with their eyes, their smile and demeanor but wait until you touch something or seem to show any interest at all in a product; they then approach you by kindly striking up a conversation about that object, telling you three things about that product that aren’t readily apparent. If you were even remotely interested, they now have your rapt attention. If you weren’t really interested, they haven’t lost anything for the effort and have at least struck up that conversation that can lead to a relationship. Even the most difficult of customers who may walk grumpily away realizes that the associate knows his product, is good at his job and would be a good resource when they become serious about needing merchandise from the shop.

Pro shop selling, because of the Intimacy Factor, has the potential to be even more effective as the astute staff member uses their knowledge of the customer to sell them benefits that effect their lives as opposed to just product features.

“That shaft should be perfect for your swing.”

“That rain suit costs a little more but it will last your son a lifetime.”

“These shirts are perfect for you. They’re not just easy-care, they’re care-free.”

“Your daughter loves this line and her birthday is next week. She wears a 4.”

The point is, whether at the club or dealing with the public at Pebble Beach, the product has value only because it fits your customer’s needs. There is an art to asking the right open-ended questions to determine that need. It is an incredible tool to know someone well enough to know their needs and it doesn’t get any better than being able to anticipate that need.

Whatever the suggested approach is in your shop, your staff should always be encouraged to continually refine and personalize their own style. There are, however, some fundamentals that should be adhered to.

Always smile.

Look the customer in the eye.

Use first names whenever possible

Never overwhelm by talking too much or too fast.

Ask open ended questions.

Be a good listener.

Genuinely thank the customer for the business.

Here is a nine step selling plan that focuses on the stages of a selling transaction from beginning to end from a book entitled “Opening Your Own Retail Store.”

1. Greet your customer.

2. Make some general friendly remark.

3. Find out what the customer’s needs are.

4. Explain how the product will fill those needs.

5. Close the sale.

6. Try to make the extra sale of an accessory or other item.

7.Thank the customer for shopping in your store.

8. Walk the customer to the door.

9. Invite the customer to come back soon

This book was published in 1977, the paper is yellowing and yet how much has changed at retail? Not much except that the customer has more choices as to where to play golf and buy all the golf related goods that you are selling. Service is a subject that always gets the right buy-in and lip service when brought up. In fact almost every facility brags about their service it is rare however when it is truly executed.

Waiting to meet friends in a pro shop recently, there was an assistant pro on the phone who never acknowledged my presence or even looked my way. I roamed the entire shop as I usually do and stopped a number of times to ponder the merchandise inquisitively. Ten minutes later my friends arrived as we made our way into the bar the assistant was still with his call. Interestingly the bartender knew one of my buddies and began making him a stinger before he sat down while inquiring as to his friend’s names and libations of choice. My guess is that the golf shop and bar are not run by the same person and that if you brought up the subject of customer service with the golf pro he would probably tell you about budget cuts. One thing I don’t have to guess about is that I am not buying anything from his first assistant.



Taetzsch, Lyn, Opening your own Retail Store, Chicago, IL: Contemporary Books, Inc., 1977

Sunday, November 29, 2009

Buy to a Strategy

The Merchandise Buy Plan Guide explains the homework and process involved in determining the proper levels and turns of inventory, categories and vendors. It is written generically enough to apply to any pro shop or retail situation. It does not discuss the need to be strategic with the choice of product and vendor as this is obviously different per shop.

The blueprint for your shop’s buy for the coming season may be the most important you have ever made as two things are true.

1. The experts aren’t expecting the current financial crunch to potentially start to heal itself until mid year 2010 at best.
2. Retail has changed dramatically over the past year and while it will recover with the economy the consumer’s enhanced quest for value will be long-lasting.

Retailers who aren’t aggressively going after the business are perceived as not interested enough to be competitive and are not being taken seriously.

I have had this conversation about consumer expectations with many of the major golf-vendor captains and the underlying suggestion is that pro shops need to be diligently ready to take markdowns that will turn inventory as that is the state of the industry. This is true to some extent but to my way of thinking should never be the overriding marketing principle especially since none of the captains mentioned above explained where the lost margin was going to come from. Said another way, old merchandise obviously needs to be reduced and removed but the buy plan should be built around a schedule designed to inspire the consumer not with markdowns but with promotions that are fun, easy to sign and talk up and where the lost margin is minimal and part of the plan. When you limit the vision in your grand design to the sale rack you teach your customer to wait until the merchandise is old before buying. This is not stratagem but defeatist merchandising that creates a downward spiral that is tough to reverse.

The schedule of promotions should be manicured to your customer climate and particular shop layout. Some of the important considerations are:

· What product will be inspirational?
· What vendors will work best with us?
· What category needs help?
· What will look best front & center and be the most customer friendly?

After these concerns are well thought through, the schedule could look something like the following which you will note never mentions percentages off and could become an occurrence that regular customers look forward to:

March, April – Buy a shirt and receive a free hat or perhaps a sleeve of balls

May, June – Buy two shirts and pick out a free pair of shorts

July, August – Any $100 purchase and pick a shirt off the sale rack for free

Sept, October – Any purchase of outerwear and take a pair of winter glove

November, December – Any $100 purchase receives free gift wrapping and a $20 gift certificate for that “other gift”.

Let’s look a little deeper at this schedule.

March, April - Caps can generally be bought for $5-$6 - less than 10% of an $80 shirt. Off-shore deals on caps require larger minimums but a lot of the initial commitment will go away as the result of a successful promotion. There is certainly never any lack of golf balls on special. Shirt vendors may take interest in your effort and help with marked-downs or early in-season off price. Perhaps you introduce Private Label shirts from Pima-Direct where the extra margin needed is built in to the suggested retail price.

May, June – Memorial Day, Father’s Day, etc. – shorts to golf-in season.
Many companies come to mind here, but Greg Norman, for example, has a program that reduces certain in-line shirts by 30% and allows you to buy $24 shorts for $17. Losing $8.50 per 30% off shirts by giving away a pair of these shorts yields 43% margin and is perfect for that center table and inspiring even to the consumer who typically buys his shorts at outlets. Nothing motivates like free. The important thing is that the price of the new spring shirt has not been compromised. The sale rack is in the back room only to be brought out strategically and the consumer is confronted with a proposal that is intriguing at worst.

July, August – Any residual shirts from the spring buy become the sale rack. New shirts for summer renewal should always be bought off-price anyway. Proper vendor relationships help this effort dramatically and will be the subject of a separate entry.

September, October - Think about giving winter gloves as a tournament favor and keeping the balance of that buy as a shop promotion while receiving a tournament discount.

November, December – Holiday business is a great time of year to be creative but many pro shops don’t want to buy special goods this time of year as much as they want to reduce existing inventory. There is no better way to do this than to use gift certificates to your advantage.

Your promotional strategy after thoughtful consideration of your particular shop may be quite different from that described above but the thought process will be the same. This type of promotional schedule combined with a merchandise buy plan based on sound retail principles of space and turn should be adhered to and become the focus of the shop. Participating vendors need to assist with discounts, point-of-sale material and education of your staff to maximize their ability to discuss the promoted products and advance promotions in general.

The next blog entry will discuss the past year in review but probably the most glaring aspect of this season's business was that shops that promoted maintained their volume and in some cases were able to wow their customer. The shops that didn’t have the vision to be aggressive with the times went backwards and those using markdowns as their only form of vigorous marketing lost considerable margin that will now be hard to recover.