I was at the checkout counter of my local market and saw the August issue of Women’s Day magazine with a cover story, “Shop Smart: Tricks Stores Use and How To Avoid Them.”

The premise and tone peaked my curiosity so I purchased it.  (You can read the full story on their website which they have taken down a notch to become, “12 Spending Schemes We Fall For.”)

The first thing that got me was how the article tapped into the lack mentality that there was some “they” retailer out to do poor “you” the customer wrong.

Author Mary Hunt let’s you know right off that she’s “no fool.”  She implies that you, dear reader are because you haven’t noticed what she does with her disciplined approach to shopping. Aah, the dirty truths of retail.

Her basic premise is that companies who hire Paco Underhill and his company Envirosell to find the best ways to merchandise their stores and grow sales to be something akin to snake oil salesmen taking advantage of gullible shoppers. Since I too help retailers merchandise, train staff, market  and more with my consulting practice, I took offense.

If you’ve read my book, The Retail Doctor’s Guide to Growing Your Business (Wiley) or read this blog for awhile, you know how I feel the four personalities help us understand behavior.

The Four Personalities
Here’s a brief rundown: The Driver – think Gordon Ramsey, the Analytical – think Mr. Spock from Star Trek, the Expressive – think Jack Sparrow of the movie Pirates of the Caribbean, and the Feeler – think Norm from Cheers. (You can take a quick quiz to discover yours for free here.)

Ms. Hunt, an obvious Analytical is tapping into the worst fears of Amiables – being taken advantage of, failure by not understanding risk and not being “smart.”

That’s why Amiables frequently shop with others or defer to friends/significant others to make decisions. They also appreciate shopping where it feels like home rather than a sterile warehouse. To Ms. Hunt, retailers are luring such shoppers into debt.

Her Tips
To an Analytical, it is just logic that keeps them from being misled and her tips follow that same line of thinking such as:

• Don’t browse, just get what you need and leave.
• Don’t follow patterns in the carpeting – make your own path.
• Don’t touch it if you won’t buy it.
• Only bring enough cash for what you “need.”
• Don’t look around at other departments.
• Seek help only if you need it.
• Keep track of prices.

While this may make Ms. Hunt feel smart, it is simply not the way people shop and it shows the wide gulf between Analyticals and Amiables. We’re not talking someone with a gambling or alcohol problem here where one roll of the dice, one swig could land them in rehab; we’re talking about what should be a pleasurable experience.

For an Analytical personality, all shopping is a necessity, not a pleasure.  They seem to believe someone somewhere has the lowest price; they don’t want to pay more so they will research things more than the other three personalities. Contrary to some assumptions, they are not cheap but spend their money in a frugal manner for things that are important to them. That’s who they are. That’s how they approach life. That’s fine.

Amiables on the other hand, the ones who read such magazines, are primarily concerned with their families and their friends. They don’t want to feel stupid and so some will follow her advice, I’m sure.

The Reality
Here’s the rub – many of the things Ms. Hunt calls out as warnings are intended to make the experience better for those shoppers.

To me, a Driver personality, Ms. Hunt’s suggestions like  ”take note of a store’s colors. Just being aware of them helps you take control,”  her assertion that Food Courts are there to “keep you at the mall,” and her instructions to “forget the cart or opt for the smallest one” are just plain weird.

Do retailers work to increase sales? Of course. It’s called capitalism. Do they merchandise various things together? Yes, so customers buy all of their needs from the one store – cosmetics, shoes, the purse and the dress. It makes it EASIER on the customer.

Macy’s for example doesn’t want a customer who just plunked down $150 for an outfit to get home and find no shoes to go with it, forcing the customer to have to get back in her car to try and find a pair that match. Or discover her lipstick has run low. Or a hundred other time-savers. And land at a competitor.

How you're being told to shop

I was particularly baffled at Ms. Hunt’s suggestion to “only seek help if you really need it.”

What would that mean using her tips?

Keep looking around a store aimlessly trying to find something and then, only after you’ve not touched anything, with your hands full, eyes straight ahead like a horse with blinders would you ask for help.

Ridiculous.

I told you this might be long and a bit of a rant.

Now retailers, what if you have an Analytical personality on your sales floor? Think they are going to upsell?  Owners, what if you have a CMO who is touting the “value” meal? How about organizing your store so people can “get in and get out” quickly – is that going to build profits?

What say you?

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In addition to myself, there was Steven Strauss from USA Today, Gene Marks, Jay Heyman, Peter Piazza, Yvonne DiVita and Carmina Perez. We spent an enjoyable two hours discussing the topic Who Says a Slow Economy Has to Slow Your Small Business Down?

Gene Marks took issue with most of us saying, “Look I don’t think every business owner in a strip center like a deli or the guy who owns a gas station needs a website or needs to blog.”  He went on to make his point that it shouldn’t surprise any of us why they don’t. “There’s no need.”

The better part of the next twenty minutes I found myself obsessing on a gas station and why they should blog.  It hit me and I asked Gene, “Do you think if the gas station owner put up a 4′x4′ sign at the end of his (or her) pumps that said, ‘Visit my blog at http://gassipper.wordpress.com to find out ways you can save on gas,’ that people’d be interested?”

Gene’s eyes opened wide – he saw the possibilities now too.  That’s the excitement of sharing ideas in person!

Open transparent communication between you and your customers. The power of blogs is they are invitational – people who want to find out about you or your category search you out.  They come to you.

Contrast that to traditional advertising where we shoot cannons out into the public hoping to hit someone.

You don’t have to know everything about blogging but try searching the internet for what you might be interested in, just put the word “blog” in the search too.  You’ll be amazed at all the interesting and fresh information out there.

Comment on a few if you like, either agree or disagree but be respectful. Put your own website into your response so people can find you.

You’ll be amazed at how this trend is growing. And if you have a website? The more incoming links from various servers people come onto your site from – the higher your Google ranking becomes.

So what do you have to lose?  I don’t think this “Internet” thing is going to go away.

What relatively unknown product or service have you seen with a blog?

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People often ask me for the “magic bullet;” that one thing that will make them money.

In a word, it is being “remarkable.” Most of us only have remarkable when the Dow drops 900 or gains 900 points.

Remarkable is doing a job so well your customers have to talk to someone about it.

They engage their friends and market your business in ways you can’t imagine. That is the power of being remarkable.

Case in point, when I was in Mexico, I discovered Explore Cancun Tours offered an all-day bus tour from Cancun to the Yucatan peninsula. They provided onboard snacks, lunch at a local restaurant complete with local girls dancing native dances, expert narration, ice-cold Coronas waiting for us as we reboarded the bus and a hospitality and graciousness rarely seen.

It was remarkable.

At every turn the expert tour guide recommended books by title and author, writing one down for me specifically noting the similarities between the Egyptians and the Mayans. He knew his stuff and could explain it in four languages.

On the way back from the Mayan ruins of Chichen Itza, he asked if we had a good time. All 53 passengers enthusiastically clapped. “Great,” he said. “Now we’re going to be passing out evaluations, please let us know how we did and leave in your seats. If you did like us, can you do me a favor? Can you tell your other friends staying at the hotel about us? Can you tell anyone you see in the elevator about the great time you had? When you get home can you tell your other friends about the trip to the Mayan ruins with our company?

Wow, if all businesses had that much pride and concern in making guests feel special, I wouldn’t have a job any more!

When was the last time you went out of your way to ask for a referral, a recommendation or a review of how satisfied your customers were with you? Are you afraid of what they might say?

A referral is golden. It doesn’t cost anything and it pays big rewards. Just ask them. Heck, if they really like it and they have a smartphone, ask them if they would mind tweeting their 140 character rave review or posting to your Facebook Fan page – make it easy for them to crow about you.

If you are a dentist, you could use pretty much the same script. Painting contractor – same thing. Fashion boutique – same thing. Even a hospital gift store. Just ask. One merchant I know has his own #800 line you can call in your testimonial. How’s that for easy?

Provided you did a job you are proud of – they’ll be more than happy to tell their friends. It is a litmus test of whether your service is truly remarkable or forgettable.

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Yes they are a totally custom built car. And yes, very expensive. But what makes each car so costly are the redundant systems.

For example, there’s not one set of brakes but three.  For a Rolls Royce those backup systems make an incredibly safe ride. That’s why they get a premium price.

For a retailer, redundancy is costly – that’s your money sitting there!

How many redundant products do you have on your shelf?

When I do business makeovers, owners are often shocked when I point out multiple products in a slow category.  They gasp, “How did so many of THOSE get there?”

Like some evil gremlin came in and stocked their shelves with excess product.

For example, a toy store that has six different child’s play tea sets.  How many do you really need?

Is there a new trend you’re riding and you continually sell out? Did Oprah mention them on her show? Then maybe. Maybe its OK.  

But usually, it’s just sloppy buying habits. Not gremlins.

The danger with multiple products is that they are not “different enough” so you’ll overwhelm your Feeler customers. They’ll shut down.

Because they can’t see any real differences they’ll either decide by price – what’s on sale or the cheapest – or leave. Neither of which builds your personal fortunes.

Four Tips How To Avoid Overbuying:

1. Keep your best-sellers in stock by monitoring your POS category reports.  Check sales within each category every week, and balance to outstanding orders.
2. Cut those that continue in the bottom 20%- even if you really “love it.”
3. Before buying anything, make sure you know what it will replace. Impulse is for customers, not store buyers.
4. Come up with an optimal level of merchandise based on your POS reports, your merchandise turn and profitability; then create your open to buy and buy to fill.  If for example you found you had 48 child’s tea sets in stock (8 of six styles) but you only sold 1 a month, that would take nearly four years to get your money back. Notice if you just replaced the one style that is selling, you’ll continue to dig yourself in the hole.

Learn more about proper buying, merchandising and selling here.

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As loyal readers of this blog know, I’m quite keen on Apple. In particular my new iPhone 4.  

But after Consumer Reports said Monday they could not recommend the new phone, a chorus of voices have risen to say everything from “the end is near for Apple” to “about time.”

Personally, I take the dropped calls glitch like Vinny Chase from Entourage, “Hey, it’s cool. Mistakes happen. So what?”

When I purchased the bumper, the problem was solved. Big deal.

But a lot of pundits today are saying it is a “Public relations nightmare.”  Right. Three million people are screaming they want their money back.

Oh right, no one.

While some users have gone ballistic on Consumer Reports, Apple has scheduled a press conference Friday, July 16 at their headquarters to address the issue.  What Would Bob Do?

My advice to Steve Jobs about tomorrow’s meeting:

1) Don’t repeat your Tony Hayward BP arrogant self like you did in your infamous reply to calls being dropped when people held it a certain way, “Then don’t hold it that way.”

We didn’t like it when our dad said something like that, we don’t appreciate it now.

2) Know others are gunning for you like you were a contestant on Dancing With The Stars. A cursory reading of comments on a WSJ piece revealed nearly 300 comments about how stupid people who use the iPhone are, what we lack and basically equate us users to lemmings. Don’t give them ammo.

3) Be like Frank Abagnale and don’t deny the facts. Admit design flaws – we aren’t stupid and neither are you. You went to market unprepared.

4) No need to give us a Jimmy Swaggart mea culpa with long explanations. Just fix it.

Cynics say Apple was aware of the antennae problem and used it just to sell the bumper.  While I suspect the bumper was created to address the dropped calls problem and not as part of the design, I imagine they’ll give it away for free or credit users.

Final thoughts Steve?

Be the brand. Classy. Convenient. Cool. Calm and Collected. Just fix it so I don’t have to hear “Does it really drop calls?”

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First I have to say I believe in commissioning sales. Whether that means employees get an hourly rate and a % of sales they make like Sandy, a bonus at the end of the month or a chance to win at trip. Call it what you want but the best bosses share the wealth, not hoard it.

That said, paying a flat commission on everything means it is a given, there are no goals to have to achieve so it can lead to employees feeling they are “entitled” to it rather than having to earn it.

Some stores only commission high-profit items or various levels to minimize paying commissions on staples or low-margin, high sale items.

I’m sharing what admittedly could seem complicated but read all the way through. I have found it to be fair and easily understood by employees.

The ultimate goal is to come up with a store goal that is reasonable [See The Retail Doctor's Guide to Growing Your Sales] then reward those who go “above and beyond to achieve it.” Here’s how:

1. Make a schedule for the month. Don’t just say for example, John works 120 hours if he doesn’t work weekends and there are five. Enter each employee, each shift’s total hours to the best of your abilities.
2. Total up each employee’s hours for the month.
3. Add all employees total hours, then multiply the total hours by 15%. This is the maximum amount of hours you expect to use for the month.
4. Divide your total store goal by that figure.
5. Multiple your individual employees hours by that number to arrive at the amount every employee (who could sell some thing)’s monthly goal.
6. Then, each day your employees work, make a goal sheet with each employees name and the amount they are expected to sell that day. (Notice the italicized amounts under each employees name in the figure.)
   

   ©Bob Phibbs MMX

7. At the end of the month, you use actual figures for total hours employees worked to arrive at correct dollars per hour they should have sold.
8. If the store hit the store goal, you reward those who went over their goal by whatever you have promised whether that is a % of the increase or other bonus. If the store missed the goal, even if an employee “hit” their goal, no bonus. Its great to have superstars but you need the crew to hit the goal in order to share in the increased business.  Otherwise you just end up paying certain employees more because they clerk more or hog the floor from the others – neither of which builds sales.

Here are two thing that make this valuable:

• Nothing happens unless they hit the goal and
• You only pay out based on actuals, but set the bar higher in case someone quits and you need to train someone new.

Those who consistently hit goal deserve to stay; those who consistently miss don’t. Even if it’s your son or significant other!

Again, a key is to not include hours for stock people who have no ability to sell anything.

Yes, you’ll get some employees who’ll say it isn’t fair they work “nights” or “mornings” while others work limited hours on weekends. They can only move the needle of sales if they are in the store at least 3 days a week. To help minimize this, don’t allow part-timers to only work 10 hours a week. Otherwise, your business is a distraction, not a destination for their attention.  Make sense?

Finally, whatever you do to reward employees’ sales, pay it out as quickly as possible to keep them motivated, preferably within a day or two of the end of the month. Using this commission system isn’t the only way to produce sales but it clearly sets boundaries for your crew to move the needle higher.

What are your experiences in paying commissions to employees?

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Like a new mattress?

How about a new crown?

Maybe a new refrigerator?

Or a hair cut?

Just about any product or service business can say, “Oh, I’m different, my customers can put off purchasing a new ___ or fixing the ___; they can wait.”

But that’s the problem isn’t it? They CAN’T wait.

It’s not like that Star Wars DVD you place on the shelf and it will still be there, exactly as you left it.

What happens if you put off that new mattress? The mattress you are currently using continues to deteriorate. Your back gets sore.  Your legs get more restless. You toss and turn.  Your deep sleep declines. You wake up more grumpy. Less rested. Less happy.

Oh sure, you can take something like Dream Water, Unison or prescription strength Ambien. But those don’t solve the problem, do they? In addition, you might have trouble waking up until you drink 5 cups of coffee which just compounds the problem when you try to get to sleep that night.

You see where I’m going?

No different than the dentist who told you to get a new crown. You think, “Oh, I can put it off.” And you do.

So you chew your mom’s delicious buttermilk fried chicken only on the left side of your mouth. You wince when you take a drink of cold water. Meanwhile the decay continues.

When you finally are ready to return to the dentist, you find you need a root canal. So could you really wait?

If you can’t find the passion to explain why waiting is not an option, you’ll never make a sale in this economy.

And the more expensive the item is that you have in your mind can be “wait-listed” the truer this becomes.

That means you window covering dealers who have bought in to that idea customers can, will and should wait. You need to find be able to convince them how it is a savings, not a cost.

That means you motorcycle dealers who have employees who are waiting themselves and commiserating with potential customers on your sales floor instead of having them go for a test ride.

That means you flooring dealers opting for peel & stick over hardwood or tile because “a bird in the hand is worth two in the bush.”

That means you reader of this blog – what are you “waiting” for?

Can you tell if your employees have bought into the waiting game? Look at what they are showing to customers. If they start and end with what is the cheapest – you’re sunk.

Don’t wait any longer! Get your hands on sales training or bring the Retail Doctor to your business.

Otherwise, you’ll continue to use the recession as your excuse to do poorly.

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Fast-forward 18 years later…

I was on Alex Witt’s MSNBC program last weekend to talk about Abercrombie & Fitch and their reissue of their soft-porn catalogue.  It ran from the late 90’s until 2003 and features semi-naked and naked boys and girls shot in black and white by photographer Bruce Weber – just like the last time.

But a lot has changed in 7 years …

Back then, many parents were upset about it and launched boycotts. That was before Facebook and other social media let them spread the word quickly.

A bigger problem bringing it out in 2010, is the way it ties into the very real problem of sextexting with teenagers sending naked photos of themselves to each other. If you doubt the problem, check out the new PSA about it here.

My take on the Abercrombie & Fitch catalogue and their brand? Emperor’s New Clothes.

Pundits have stated that it is a “brilliant move” to “reconnect with their core customers.” Maybe. Maybe.

Here are the bare facts…

The real story is same store sales were down double-digits in 2009 and still down 3% in May of 2010 when other retailers were posting increases, some in double digits. Take a look at these charts from retailsails.com

Time magazine did a great Abercrombie profile a couple months ago on CEO Mike Jeffries. He was named one of the five Highest Paid Worst Performers of 2008 by the Corporate Library (his 2009 compensation has yet to be disclosed.)

There is definitely a swagger and arrogance to the brand. Whether it is the over-perfumed stores, loud music or using sex to sell but there’s more.

One site has a comment from a person saying they were an A & F manager, “It is true that the company cares more about whether we have a hot new girl working than if we made a customer angry or not. We are to keep the store looking up to “standard” so associates have to constantly fold and replenish, regardless if there is a long line at the register.”

Last weekend, when I asked Alex if she would let her kids shop at Abercrombie & Fitch, she immediately said, “No.”

What if I had asked Alex if she would let her kids drink Starbucks and she had said, “No”? Can you imagine what Howard Shultz would have done? Called up his marketing guys immediately, “Find out why, correct it, get them back. We can’t afford to lose customers.”

As much as Abercrombie wants to be a club, its not a celebrity – its a clothing store.  If “sex sells” then why have they lost so many of their customers? Sure their Manhattan store sells 100 million a year to gawker tourists, but how about the 100 locations they are looking to close in the US according to istockanalyst.com?

Abercrombie & Fitch

What’s different from 2003 when their last catalogue was printed is many kids still live at home and mom and dad have to pay for their clothes in light of high credit card bills, decreased income and job uncertainty.

So you want to piss them off? There’s cutting edge and then there’s what my mom used to call cutting your nose off to spite your face.

I may be in the minority here but this is a desperate measure to try and say how the brand is still relevant when the market has shifted.

How do you know if your brand is out of touch?

• Are sales increasing or decreasing?
• Do you know what people are saying about you on the Internet? Not just news sites but blogs, Yelp, Facebook, YouTube – the works? If so, are you working to correct them or just writing “those people” off?
• How many times are you going back to the well hoping to duplicate the success of something versus trying something new?
• Are you more concerned with the physical things like fixtures, paint and marketing or are you concerned about your customers?

These are by no means all the ways but whether you are Apple, Aeropostale or Abercrombie & Fitch, you still need to take in what others show and tell you. If its not working, you change course to move forward, not hope for past glory.

Otherwise, your own hubris lets you think you’re parading in diamond-encrusted robes when in reality, you’re naked.

Learn how to grow your business here.

What’s your opinion?

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I came out of the terminal and the bus was there. Got on, put my baggage on the stand and sat down.  As the bus pulled away from the curb the driver, Mary introduced herself and then casually said as she navigated the traffic, ”Welcome to Los Angeles ladies and gentlemen, you are on bus 67.  It will be approximately five minutes to the station.

When you return to LAX, remember to get off at Century Boulevard. Proceed south to the Marriott you see right there, turn right, we’re four blocks up on the right.”

About this time we came to the bus entrance and she said, “A few reminders that our rental car return is one block up from here. Exit Century Boulevard to the Marriot and turn right. If you fly internationally allow 3 hours prior to departure and domestic 2. If you are a #1 Club member you’ll see your name on the display, if not, proceed to the counter.  It’s been a pleasure to have you on my bus.”

She got up to help anyone with bags and again thanked them. As the last person to leave, I told her she was the reason I would return to Hertz in Los Angeles. What a gracious and pleasant way to end a day’s journey.  ”You made my day. Can I take your picture for my blog?”

She replied, “Well you just made my day, of course.”

What a huge difference from the Hertz experience I had a year ago.

This person enjoyed meeting people. Her job. Her life.  And it showed.

Contrast that to the Dunne Reade clerk I met Saturday morning. With no one in line I approached the counter where a young woman was counting change and placed my Diet Coke in front of her. “Next register,” as she pointed to the register to her left about 2 feet away. I grabbed the Coke and moved it 24 inches. She took it, said, “$2.25” and scanned it. I gave her $3 and held out my hand for change. She put the 75¢ on the counter and looked away. I had to say, “Could you have given worse customer service?” She stared at me. Doubtful.

Two thoughts:
When you receive exceptional service, please go out of your way to tell others. If we want more diamonds we need them to know they are not coal.

Your brand, your image are the people at the front lines, not some mission statement, cute display or fancy catalogue.

More on that second one in tomorrow’s blog about Abercrombie & Fitch.

What diamond experiences have you had lately?

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Don’t care if you already have a Verizon account. Don’t care if you use a Blackberry. Don’t care if you own stock in Microsoft.

And the higher the price of the items you sell, the stupider you are if you don’t get it NOW. Ok, I’m a bit opinionated on these. Stay with me…

Forget all of the other bells and whistles. You have the ability in the palm of your hand to make a personal introduction, followup or product video in minutes using the iMovie app. Easily, professionally and you can email them right away.

Here are four I just created.

One for a nursery talking about their fresh tomatoes for the day:

iPhone4 Example for a Farm Stand with Bob Phibbs, the Retail Doctor®

One for a Buick Dealer following up for a customer:

iPhone4 Example For Buick by Bob Phibbs, the Retail Doctor®

One for any salesperson who has to followup after speaking on the phone:

iPhone4 Example Following Up with Bob Phibbs, the Retail Doctor®

Last one for a landscaper or professional Gardener talking to a client about a problem;

iPhone4 Example Landscaper / Gardener with Bob Phibbs, the Retail Doctor®

Do you see how impressive this looks? How immediate? How out of the ordinary, knock your socks off fantastic this is?

I’ve done testimonial videos for years with my Flip camera. Yes it was convenient but NOTHING like this. I can add titles, transitions and music quickly and easily.

Imagine the look on your customer’s face when it is you talking to them directly right in front of their home before you go back to the office?

Sure I could get hung up with a few clipped words or a few transitions. But the door has opened for anyone to quickly and easily make youself standout.

How could you use it in your business? Think about it and put in the comments below please.

Oh yeah, and don’t worry about your competition finding out, they’ll still be hung-up on the cost of the data plan as you steal their customers right and left!

For more ways to make your business standout, check my new book from Wiley & Sons, The Retail Doctor’s Guide to Growing Your Business.

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