Merchandise tips
Consider merchandise mix when you are competing with a mass merchandise store.

• Try not to handle the exact same merchandise. A better strategy is to sell another brand item that is not directly comparable.
• Sell singles instead of pre-packaged groups. Customers often only need one item. Independent merchants can often meet these needs by unbundling packages and selling items as singles.
• Try to handle complementary merchandise. Astute competing merchants should expand their lines to be more complete than their giant competitors'. Customers will soon learn to go directly to the more complete store if their needs are out of the ordinary.
• Look for voids in the mass merchandiser's inventory.
• Consider upscale merchandise.
• Find a niche that you can fill. Smaller merchants can often succeed by merely finding the various voids in the mass merchandiser's inventory and filling them wisely.

Service tips
Superior service can become an important competitive advantage for many smaller businesses. Large chain stores usually don't have the flexibility to offer many of these services.

• Emphasize expert technical advice. Many smaller merchants build a loyal clientele because they are able to help customers analyze their problems and help them find the right tools, supplies and equipment.
• Offer deliveries where appropriate. A certain segment of our population has a need for the delivery of prescription drugs or heavy equipment. Some smaller merchants can carve out a certain market share by offering delivery service.
• Offer on-site repair of certain items. Nearly everyone has a need to have some item repaired or serviced occasionally. Independent merchants can draw a substantial volume of trade to their stores by providing repairs and service of merchandise.
• Develop special order capability. Instead of letting a customer walk out the door when an item is not in inventory, say, "I'm sorry I do not have it in stock, but I can get it for you in two days." Then use e-mail, fax machines, express delivery services, and arrangements with dependable suppliers or cooperating partner stores to ensure that you are true to your word.
• Offer other services as appropriate. Independent merchants can develop many loyal customers by offering "how to do it" classes, gift wrapping, rentals of items that will boost sales of collateral merchandise, etc.
  

Customer relations tips
In past years, small businesses had the reputation of excellent customer relations. However, nowadays many consumers perceive that they are treated no better in small firms than in larger ones. Research has shown that poor customer relations is the primary reason that customers quit doing business with a store.

• Make sure customers are "greeted." Customers are very offended by the failure to be greeted or acknowledged when entering a store. This is particularly true when a customer is in a buying mood. Train all store personnel to greet customers.
• Offer customers a smile. All customers prefer to do business where they are treated in a friendly manner.
• Make employees "associates" and treat them as part of the team. Regular store meetings can be held where everyone can participate in planning and problem solving.
• Solicit complaints. Many times customers have a bad experience in a store, but they are reluctant to complain to store personnel. Instead, they complain to other people. Good merchants would rather hear of the complaint first so they can find a remedy. Provide an environment where customers feel comfortable in complaining by soliciting complaints through ads, through signs at the checkout counters, and by signs on shopping bags.
• Train employees often. In the eyes of the customer, the employee is the business. Training employees can have one of the highest payoffs of any investment in the business. Training is available through Small Business Development Centers, university extension services, community colleges, parent companies, franchisors, and others.