Unless your name is Jeff Bezos, most retailers both know and dread the fact that smaller ventures are finding it increasingly difficult to make profits nowadays. This doesn’t just apply to online or offline retailing, but the small-scale retail business in general. So, can your own retail business be made more profitable even in the shadow of giants?
Why the Answer is Yes
Although the competition is harsh and the giant retailers such as Amazon and Walmart are eating into the profits everywhere, it is still possible to increase your profits because the market is so vast. It might almost seem like a game of Monopoly, but if you are a shrewd businessman with updated knowledge about the market, there are still plenty of opportunities in multiple sectors.
The Human Factor: Customer Relations
Technically, nobody really needs to leave their house for groceries anymore, but they still do. The supermarkets and local stores in certain areas are profiting quite well, although the numbers have gone down.
The reason why people still go out to buy things is because they like the feeling of actually touching, feeling and checking their products before buying them. Then there is also the human interaction factor, which is part of the reason why some people still prefer having a sales person around them while making their purchases.
This presents the perfect opportunity for smaller businesses to build customer relations and grow a dependable customer base. Ensure that you capitalize on everything from excellent customer interaction and special discounts, to improving the very feel of being inside your store.
Reduce Human Errors
We hear about robots and computers taking over people’s jobs so much, and yet the opportunity for the small retailer to make profits and grow lies in perfect integration of human employees and assistive software.
Even a small retail store can utilize the simple POS system with advanced inventory management features to cut out the human error factor completely, but without taking anything away from what the human employees bring to a retail store.
The software automates repetitive tasks simultaneously, freeing up your employees, so that they can spend more time in catering to the customers. Also, this means the owner will be able to cut down on the total expenses, since they won’t require so many hours from their employees anymore.
Do Not Compete with the Wrong Competitors
Choosing your target audience is of immense importance, as the nature of your business will be largely determined by them. However, avoiding the wrong competition is also very important here. In simpler words, you cannot compete with the big boys in retail, so don’t try to!
The idea here is, you need to offer something where the target customers do not end up comparing your business with the big retailers. It’s easier said than done, but this is definitely something worth remembering. For example, if the fruit seller cannot match a supermarket’s prices, they should try to provide their customers with a better selection of fruits, which are of much higher quality.
Advertising the highlights and avoiding comparison in incomparable categories is important in affecting the customer’s mindset and decision to buy.
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