As we finally appear to be creeping out of the economic doldrums we’ve been living in since 2008, now is as good a time as any to look ahead and figure out how to take advantage of the new opportunities the months ahead will present.
The glory days we saw before 2008 certainly won’t return anytime soon (if ever), but there are some trends that can help savvy dealers improve sales and profits moving forward. Here are but a few.
• Competition will remain tough. Two major suppliers are in a war for market share, while Best Buy, Walmart and Amazon are all trying everything they can to get consumers to buy electronics from them. Prices and margins in many CE-imaging categories have sunk to all-time lows. But the independent dealers caught in the middle can compete by offering more and better services, such as providing a more detailed look at the entire imaging eco-system beyond the sale of a digital camera and open the door to all the amazing new after-capture opportunities available today. They can also merchandise up from the derivative models that box stores use to drive traffic.
• Event promotion will continue to drive traffic. Follow the lead set in the marketplace and be ready for big sales over holiday weekends that are a part of every year. Shoppers are always out hunting for bargains, and traffic will be stronger as the recovery continues. Pent-up demand will create opportunities for step-up and additional sales.
• Customers will go to the web in increasing numbers for information and pricing. Don’t shun them; embrace them. You’ve done something right if they’ve shopped the web and then decided to come in to your store. Ensure that the experience they get in-store matches the promise you make on the web.
• Online marketing will become more important. Shift some of your advertising funds to e-mail marketing and to efforts that will drive traffic to your website. Post your listings on Yahoo Local, Google Places and other directories, and keep them current. Get e-mail addresses for every customer and prospect so you can personally reach out to them. Make sure your website is dynamic, has a broad product catalog and compelling messaging. Include special online clearance and sale items.
• Mobile phones will replace Consumer Reports. Customers will use smartphones to check Yelp, Google, Facebook and other sites to see what others say about the products and services you offer. They’ll look to see what experiences other shoppers have had when buying from you. Testimonials are powerful influencers. Be aware of your cyber reputation.
• Social networks will continue to grow. Get on Facebook and Twitter to spread your message to younger buyers. Millennials in particular will frequent stores who appreciate their reliance on social media. Create special Facebook events for your fans. Offer them special opportunities to preview new products or to receive early access to sales.
• Online sales will not replace a great in-store experience. Customers are shopping on the Internet and buying in-store. Now may be the time to remodel your showroom. New lighting, carpet and fixtures can be good investments. Be sure your staff is professional and knowledgeable and that they relate well to your customers.
• Independents will have to work hard to get suppliers’ attention. Specialty retailers make up a small but mighty gang in the imaging space. Don’t just settle for talking to local reps. Go to as many shows as you can, including some of the smaller shows, as well as your buying group meetings to meet with company executives. Send them copies of your unique promotional events and press coverage you receive in your community. Give suppliers who support you special opportunities by being represented in store displays and in your advertising. Be a willing partner and make good on your promises. Command attention and demand respect.
• Lending to small business is easing. It’s still difficult for small businesses to gain access to working capital, but it is improving. If you want to approach your banker to increase your credit or flooring line, get your financial house in order. Show that your inventory is in line with your sales and that you are maximizing your turns and your ROI. Make sure you are paying your bills promptly and that your cash reserves are adequate to meet your future obligations. It goes without saying that a healthy bottom line is critical when seeking financing.
Things are improving and customers are back in the market for imaging and consumer electronics products. They will be fussy and demanding, but they’ll be out in greater numbers and will spend more money than in the past few years.
Solid relationships with customers, suppliers and lenders, combined with good merchandising, consistent promotion and a strong Internet strategy, will bode well for the coming year.
Editor’s Note: Elly Valas is sales director at Nationwide Marketing and CEO of Valas Consulting Group.
