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Growing Sales In A Recession
Monday, July 2, 2012, 2:47 PM
[General]
The major failing here is the moment a downturn in sales is experienced, the knee-jerk reaction of owners is to slash all operational expenses. Whilst looking to reduce operational expenses is admirable, achieving them at the cost of diminishing the consistency and quality of goods will have a direct and detrimental effect on sales. Furthermore, some products require a higher degree of processing knowledge in order to deliver on absolute consistency at the highest possible quality. Products such as coffee, once compromised based on price, usually suffer a further reduction in consistency and quality during the processing.
The simple answer is that the owners of such prospering businesses do not think or conduct themselves like the majority of other owners. These individuals involve themselves in every aspect of their business. They expect very high standards of themselves,Cheap Tashard Choice Jersey, their staff and their business. These prosperous businesses do not exist by accident. They make important distinctions which the majorities do not. You see,Cheap Lyle Alzado Jersey, it's as simple as looking at the same thing in a different way.
With focus and attention it is possible to make your business impervious to ANY external factors. These include economic circumstances or consumer spending patterns. The questions above yield some of the detail required to move your business toward that state. Top end operators understand that the results of their sales and the overall performance of their business are determined by the internal condition of their businesses. To begin transitioning your business to this 'ultimate' state it is very important to seek leading edge knowledge and apply that learned knowledge in your business. Knowledge and derived systems and actions which grow sales immediately are the only ones worth sanctioning. Everything else just wastes time and effort.
Why is that?
1. Do you know your products/services intimately?
2. Do you know your business' distinct points of differences?
3. Do you know that 1% of your actions can generate 99% of revenue?
4. Do you know that losing customers can increase your profits?
5. Do you know that you truly are the best operation in your local market?
6. Do you know your local market in detail?
7. Do you seek out change?
8. Do you know there is a world of difference between someone who owns a business and an entrepreneur?
9. Do you know your financial position to the day?
10. Do you know that there is no such thing as competition?
11. Do you know that every answer to every question can be found within your business?
Let's take the first question and dissect it further.
The best way to make you to understand is to pose the following questions to you:
One of the first steps for those involved in the cafe sector is to look at the links in the supply chain of each and every product and gather the most up to date and accurate information on which products/suppliers offer absolute consistency at the highest possible quality.
As I indicated, the front line is just one link in the coffee supply chain, and if any link lacks absolute consistency at the highest possible quality then a business' ability to grow sales immediately and rapidly diminishes greatly. Supreme knowledge, ongoing comparative analysis and a commitment to quality second to none may 'cost' a business in the beginning, but the return in sales growth is nothing short of spectacular. Would anywhere between 100 to 1000% growth in 12 months interest you? For this kind of performance improvement I would better describe this initial 'cost' to a business as a 'leveraged investment'. Having worked with over 1000 coffee based businesses this simple formula has proven to work time and again.
But why is that? What is it that they know or do which is different?
I have found that the biggest obstacle to changing focus has been the overwhelming reluctance of business owners to believe that spending a little more to secure the best quality products in the market (rather than cutting back) can actually rapidly grow their sales. They simply do not believe the kind of growth percentages I just quoted is possible. Old habits die hard. If I was used to average returns over several years and noted that those businesses around me achieved the same, then average returns would be my reality.
From my point of view a recession serves to highlight and exaggerate the pre-existing inefficiencies and ineffective practices of a business - ones which were allowed to persist in an upward trending market. The truth is that in good times the majority of businesses are satisfied with an acceptable return on investment, and few realize that they could be achieving far greater sales if they understood that the internal dynamics of their business were not precise. Also, good times tends to create a 'laziness' in business where there is little incentive to learn, push the boundaries of sales growth or seriously critique systems/actions which do little to grow sales.
More often than not, there is a direct correlation between cut-back focused businesses and a lack of training for staff. So when the barista or baristas lack the degree of knowledge and skills to process coffee beans with absolute consistency at the highest possible quality the end consumer receives a sub-standard product devoid of any point of difference in the local market. In fact, I have observed a great many businesses unwittingly creating a point of difference in just how inconsistent and lacking in quality coffee can be.
The other interesting aspect of recessionary times is that they tend to show up the lack of ideas and solutions of a great many of our business 'leaders'. In a way it is sad to see how few are true leaders and innovators. For, it is leaders and innovators who pioneer and continually push the boundaries of their businesses. They do this during good times or in bad times because that is who they are. They always look for ways to grow sales. They recognize that where there business is today is the direct outcome of decisions and actions they took in the past. And if the outcome does not suit them, they change their decisions and actions to create desirable outcomes. As a result they are able to continue generating sales growth. Leaders and innovators make up a very small percentage of the business world, but they are not hard to find in any market - their businesses are the odd few that always appear busy, always have customers, and are generally known as the leading business in their market. But as I said, these are a select few.
George Sabados motivates, inspires and instructs retailers all over the world in ways to grow their sales and profits rapidly and consistently. He specializes in changing the mind set of small business owners, retail and franchise chains from top to bottom. His personal vision is to make business owners aware of the unlimited potential they hold and to show them how they can become leaders in their local market and instant millionaires.
The truth is that a business can NEVER save its way to success, it must SELL its way to success,Cheap Jimmy Graham Jersey, and the best way to do that is to get customers to assist you by providing them with a superior product which is value for money. Notice that I did not say your products have to be cheap? Being the cheapest product in town attracts cheap customers, escalating the work load of your staff for minimal return. Adding value for money attracts those who are willing to pay for it, and it leverages your return.
Having said all this, it is not enough to assume that the best quality products in the market are the most expensive. A combination of factors will make one product the best over others for your business. Factors such as:
Positive and immediate answers to these questions distinguish top end operations. They identify businesses with purpose and a solid foundation focused on growth. I would suggest that if you answered 'no' to any of these questions then your business is not 'anchored down' to a solid foundation and is most likely being blown along by the winds of the recession. The positive though, is that your business also possesses the most potential for rapid and strong sales growth - EVEN IN THIS ECONOMIC CLIMATE!
Furthermore, it is important not to delude yourself at any stage that you know enough. No one ever does and believing this means that you and your business will continue to seek out more and positively evolve despite ever changing business conditions. The more you and your staff learn, the more of that learning you organize and apply, the more sales your business will experience. Ironically it is an easy concept to understand but a difficult one to execute. And that is why so few businesses are at the top. All others end up suffering unduly during downturns. Hopefully I have caused you to think about the way your business operates right now. Nothing short of growing sales in this climate will indicate that you are putting some of the above ideas into practice.
There is always a good side to every situation. Whilst I admit that a recession can influence your business, it by no means determines the outcome of your business. You are in control of that - but few business owners understand how. Once that awareness is implanted into your being and your operation, growing sales in a recession is more than highly possible, it becomes a pattern over boom and bust!
The maturity level of the market - i.e. how refined palates are to the product in question.
Comparative analysis conducted objectively and by a focus group - never subjectively.
The skill level, knowledge and experience of the manufacturer.
The quality of the initial raw ingredients - the origins or antecedents.
And perhaps most important, which product fulfills the overall strategic objective of the business. (I assume that in most cases it is sales growth, but has not proven to be always the case)
So you can see that when we begin to deconstruct the elements behind the very first question 'Do you know your products/services intimately?' there is a lot more work and thought required than most business owners believe, or have shown the gumption to pursue. The reward for following through and uncovering the details behind each and every question to same degree as the first one is RAPID AND ACCELERATED SALES GROWTH REGARDLESS OF RECESSION.
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