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August 2007

In This Issue:

Advertising Mistakes

 

Retail Spotlight

 

Meet Our Staff

 

Tech Tips

 

Referral Rewards

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Advertising Mistakes: 

One Strike and You're Out

By Anne M. Obarski

We've all seen ads that make us think, "This sounds too good to be true".  Most of the time we find out that it is.  I have wondered what makes businesses think that potential customers can't read between the lines.  I also realize that there are people who actually send money to foreign countries because they got an email from an official sounding person.  The problem with false or leading advertising techniques is that it may bring a customer in the first time but they are unlikely to return.

There are a number of "bait and switch" tactics within the market place but none more blatant than the "quick oil change" places.  I have a college age son whose car is usually running on fumes and maintenance on his car is the very last thing on his list.  He constantly reminds us that he is a poor college kid.

He recently was home for a visit and we asked him to take his car to get the oil changed and warned him, "Make sure you tell them you ONLY want the $19.99 special".  One hour later he returns with a receipt for $150.00 worth of service.  His father was furious and shook his head and said, "I knew this was going to happen and I should have gone with him.  I told him no matter what they said just tell them you want the basic oil change."

It seems as though the employee intimidated him with big words and a scary tone and proceeded to do work that even the dealership said didn't need to be done on that car.  Needless to say I was fuming too.  Not because he gave into their sales tactics but because they did not do what they were asked to do by the customer, based on the advertised price.

There have been many television shows on such businesses and they aren't just limited to the car industry.  I would bet that most industries push the envelope of "truth" to avoid losing the customer.  Have you never been told before that , "This is the final day of the sale", or "I bought this extended warranty and you should seriously think about it", or "The base price is "X" but of course that doesn't have all the features the one has that you are looking at". 

The customer is made to feel inferior.  If they don't upgrade to what the employee is suggesting then in their mind they are either too cheap or too ignorant, and employees who have been taught to look for those signs can then go in for "the kill".  The problem with the "kill" is that the customer has lost their confidence and will power and the employee is thrilled because they are finally making a larger sale.  It however, may be the last sale that person makes to that customer.

A smart customer will stop doing business with companies that make them feel that they are a dollar sign with feet.  I will guarantee you that my son learned a very important lesson that day.  I am not sure he will ever return to one of those oil change places again, and if he does he will become the nasty customer that yells and stands his ground just to get what the company advertised.

So, how do you develop a compelling advertising campaign that is truthful and that motivates the customer to take action?   Look at your advertising or marketing efforts through the eyes of your customer.  Ask yourself the following three questions each and every time you develop any type of advertising or marketing campaign that you want your customers to react positively to.

1. Why should I care? - We all get bombarded with tons of advertising every single day.  If the ad is for a "15 minute oil change for $19.99", it will get my attention because it is a quick and inexpensive way to get my oil changed.  If you change what the customer ultimately receives, which is a $150 complete service that took one hour, you are guilty of false advertising in the customer's mind. 

2.  What's in it for me? - Bottom line for all advertising is that the customer needs to know that they will get value for what they are exchanging; their hard earned money.  If there is no value, in the customer's mind, to counteract the price that they pay for the product or service, then the customer feels like they have been duped. In my sons' case, I will guarantee you he questioned whether or not the extra service that was done was necessary. Not placing enough importance on the level of real "value" that your customer will be receiving within your advertising can cause a customer to scream buyers' remorse.

3.  Why should I believe you?-  You may be wondering why we didn't go complain to the manager at this oil change place?  When I suggested it, my husband's comment was, "That is the way they all are".  Trust is the basis for any good relationship, business or otherwise.  In this case, the trust had been broken over many years of using similar companies.  It does not make it right; it makes it a negative experience that the customer does not forget.  How do you work at building "trust" with your customer?  How does your advertising build your brand to such an extent that you become the vendor of choice?

How many customers did you lose last year?  How much did it cost your company?  How many other people did those lost customers influence? How many of your "best customers" are now customers of your competition?  Your advertising might just be driving them away.

http://merchandiseconcepts.com

Retail Spotlight:
Modern Skate and Surf

Modern Skate and Surf Shop from Michigan is a pillar in the extreme sports industry. They provide the best in Snow Boards, Inline Skates Wake Boards, Ice Skates and Skate Boards and every imaginable accessory.  Their four stores in Lansing, Novi, Grand Rapids and Royal Oak Michigan are destination locations for anyone in these sports. The founder of Modern Skate and Surf, George Leichtweis, started with one in Royal Oak. In time he moved to Lansing where he slept in the back room of the store devoting all of his energies to building his business. 

In the early days all sales transactions were conducted by hand written receipts and a calculator. In 1996 George purchased Retail Pro and has upgraded the product twice, most recently to version 8.52 in 2006.While research systems George stated, "I researched several POS software and found Retail Pro to be the most user friendly, yet with all of the features of monitoring and analyzing my business.  I figured that if I could use and understand it, any of my employees could too.  It has allowed me to grow to multiple locations." Currently they have over 100,000 skus. Scott Lamb, who wears many hats including, Human Resources, IT Support and web sales management says that technology is necessary to facilitate and manage the type of growth that Modern Skate and Surf has accomplished.  When asked what they like about Retail Pro, Scott says, "it really allows us to manage our inventory with multiple sales channels from the four stores and their web site, www.modernskate.com/modernskate/

Modern Skate and Surf utilizes Retail Pro's ECI tool and works with Retail Pro partner UniteU www.uniteu.com for the management of their website. 

For the extreme sports fanatic or someone just starting out Modern Skate and Surf has whatever you need. 

Meet Our Staff

Felicia Shields

 

Meet Felicia Shields, Shipping and Receiving Clerk for Advanced Retail Management Systems. Felicia has been with ARMS since early June. Prior to that she worked as a professional massage therapist living everyone?s dream in Beaver Creek, Colorado.

Enough of the snow, Felicia decided to come back to the low lands and we at ARMS are happy to have her. Prior to going to massage therapy school she has worked in retail ?forever.?  She has done it all  from cashier, sales clerk, inventory control, inventory and store remodeling.  When you contact ARMS regarding shipping questions she is ready to answer all your questions.  Thanks Felicia.

Tech Tips

 

Promotional Pricing vs. Quantity Pricing    
Promotional pricing allows you to assign any items or styles to a promotion so that you can price those items lower when selling them at greater quantities. When listing promotional items on a receipt, the quantity being sold for all items assigned to the same promotion will be summed. Retail Pro will then use promotional pricing on the receipt; the discounted price will automatically be entered for each of those items.


Quantity pricing allows you to define different prices to be automatically applied when listing a single item in different quantities on a receipt by using price levels. This method records the price to be used for each quantity range sold on the individual item.

 

Freight Costs  
Retail ProŽ allows you to spread freight costs to the cost of the items. Freight can be treated as a separate charge or it can be spread ? added proportionally to the cost of all items received.

5 Minutes to Earn $500!

It only takes 5 minutes to register a referral for a retailer that you know who is interested in a Point of Sale System.

Receive $500 credit on account or 4 Client Service hours every time you refer a new customer that purchases Retail ProŽ. 

Retail ProŽ has grown to be the premier Inventory Control/POS software for small to mid-tier retailers.  Whether you know a single store or a 100 store chain, Retail ProŽ provides the technology for retailers to excel.  Press here  to refer another retailer and start earning valuable rewards! 



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