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Why Do We Do What We Do

hotels in Cordobaby David Dunn, Georgia SBDC

Here comes Santa Claus! The Christmas season is barreling toward us like a runaway sleigh. Now is the time for retail businesses to really prepare for the weeks ahead. The importance of being ready for this season cannot be stressed enough due to this statistic: between 25 and 40 percent of annual retail sales are made in the Christmas season, according to the National Retail Federation. Additionally, the Friday after Thanksgiving and the last Saturday before Christmas are very close in the race to be the busiest retail day of the year. Thus, if a business isn't prepared already, it should immediately do so. So, what can a business do to get ready? Examining the store's layout is a basic preparation.

A retail store's design and layout can easily increase or decrease profits. The layout should make it easy for customers to find what they are looking for, compare the merchandise with other products, and eventually make a purchase. This is especially so considering only about 25 percent of customers will go more than halfway into the store. Obviously, the higher profit items should be more toward the front of the store. Customers that do not go to the back of a store certainly are not going to buy anything from the back.

baccarat onlineHave you ever gone to a wedding and been asked, "Bride's or groom's side?" Well, I have, and sitting on the bride's (left) side of the church made me a little uncomfortable for some reason. In terms of a wedding, this information means very little. However, in terms of a retail business, knowing what is going on in a person's thought process could make a retail business a little more profitable. For instance, just as most people subconsciously want to sit on the right at a wedding, most also take a right immediately upon entering a retail store. An estimated 60 percent of patrons turn right upon entering and shop counterclockwise. Higher markup items should be placed accordingly.

Impulse items are typically very high markup products. Also, their price is usually low, thus encouraging an impulsive purchase. These items should be placed where they are most likely to be picked up and bought. Don't think the gum, candy, and razorblades are at the checkout counter at the supermarket solely for the customer's convenience—these items increase the store's profitability.

hotel rooms KosAisle displays are an interesting layout concept. Obviously, the retailer wants the shopper to notice these products, so they may be high markup or clearance type items. However, there is more to it than that. The shopper has to avoid these aisle displays, and in doing so, his direction of travel and line of sight shifts. The smart retailer has just directed the shopper to look at the products (high profit, no doubt) he wants shoppers to notice, and hopefully buy.

K-Mart recently did a series of changes in their stores to increase sales. Two major components of these changes were bigger aisles and better lighting. There is a lesson here for smaller retailers. Consumers like to have adequate room and well-lit facilities, as well as light music. A crowded, poorly lit store is not only depressing, but also less profitable than it could be.

Additionally, odors have the potential to be strong sales tools—really. A restaurant owner friend used to direct a fan out the window of his kitchen to the downtown area on the days he baked cookies. He estimates sales were 20 percent higher on those days.

Retailers should odor engineer their businesses better than they currently do. Used car dealers should put a "new car" smell in their vehicles. Boot and shoe stores should smell like leather. If no particular smell seems to fit your business, try floral smells for women targeted customers and spicy scents for men. These odors are the best for each gender, according to the Smell and Taste Treatment and Research Foundation. However, be cautioned not to overpower patrons with too much fragrance.

These tips are the tip of the proverbial iceberg. So much can be done with a store's design with a little knowledge, some creativity, and (fortunately) little money. The time to maximize any retail store's profitability is now, before the Christmas rush. So, make Santa happy at your home this year, change your store a little, and make more money.

> See also: Retail Trade




David Dunn is a business consultant in the Albany office of the Georgia Small Business Development Center (SBDC) Network. To find your local SBDC call the state office at (706) 542-6762 or via the web at www.sbdc.uga.edu.

For further assistance, contact a consultant at a Small Business Development Center.

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