Top 9 Myths of Retailing

In retail, there are many misconceptions about what it takes to be successful. Whether our understanding of customers, marketing or other retailing information came from bad advice, myths, or elsewhere, negative information can have a profound impact on our business decisions. The following examines common (and some not-so-common) retail myths.

1) If You Build It, They Will Come

 

The right product mix, pricing strategy and store atmosphere will do no good if your customers don't know you exist. Many new retail stores fail to properly market their business. The lack of funds or the wrong advertising campaign can keep your message from being heard. Even during the hardest economic times, advertising can be an effective tool.

 

2) Small Stores Can't Compete With Chain Stores

 

While it is true that smaller stores cannot generally compete strictly on price with the large chain stores, they can still compete. By maximizing the uniqueness of their business, exceptional customer service and cozy atmosphere, the small retailer can take a fair share of the market.

 

 

3) Your Best Customer Spends The Most

 

You may have a customer who comes in occasionally and spends more than the average shopper in your store. Before declaring him or her as your best customer, stop to consider the customer who may spend little, but tells his friends and family about your business. Referrals and repeat customers are highly valuable and may add up to much more than the big-spending customer who shops with you twice a year.

 

 

4) Online Shopping Will Replace Retailing

 

E-commerce is making big strides in the world of retail. But while it is important for brick and mortar retailers to have an online presence, there will always be consumers who want to try things on, feel and inspect the quality of the merchandise and some shoppers still prefer the security of paying for products in person.

 

5) Moving Your Store Will Hurt Your Business

 

Relocating a business can be expensive and possibly disruptive, but with some planning it can be the best thing for your bottom line. Start early and make a checklist to keep the move organized. Be sure to plan your relocation marketing focus around retaining your existing customers, as well as making new customers in the new location.

 

6) The Government Has Free Money For Your Business

 

Television commercials, website ads and general false information has distorted the half-truth in this statement. There are grants available from the government for particular projects but these are generally for non-profits and educational business, not for individuals who will use the proceeds to start their own retail business.

 

7) The Customer Is Always Right

 

No, the customer is not always right. Sometimes the customer is quite wrong. Customers make honest mistakes and sometimes they want something for nothing. While the customer isn't always right, it's our job as retailers to make them feel like they are always important.

 

8) Good Help Is Hard To Find

 

It may take a little longer, but it is possible to find excellent employees. Start by writing a thorough job description. Establish a review system to weed out candidates that don't fit the bill. Learn interviewing techniques and prepare a comprehensive training program. To keep good help once you've found it, learn how to motivate your employees through pay and promotion. Staffing your store is easy if you have a plan.

 

9) You Can't Make a Living in Retail

 

This one is just completely untrue. The small profit margin for most retail items may prevent one from becoming rich, but good sales can generate a healthy income for someone operating their own retail business. And for those not interested in entrepreneurship, there are many, many positions in retail other than store manager or clerk. Some retail career fields include buyers, merchandisers, logistics and sales.