Price, condition, and exposure are three popular terms referred to in the Real Estate market. But it has occurred to me that small business owners should seriously consider adopting these principles in their non-real estate ventures, as well. Let's face it. Many small businesses are experiencing reduced sales and fewer customer visits, due to the slowing economy. Here are some ways to apply the terms to your business venture to successfully overcome the economic downturn.Price - Think about your target consumer. Who is your customer and what is their average purchase price point? How much do they typically spend per visit? With the economy shifting, it would be helpful to run an analysis of average sales based on the last six months, as well as a yearly comparison. This could supply small business owners with more precise projections since the economy has been shifting more now than ever. Do you have a large product assortment that seems to be just sitting on the shelves? Considering a price reduction to items that appear to be experiencing a longer shelf life, could help stimulate sales and give you dollars to reinvest in items that are selling more rapidly.
Condition - Could your establishment use a little polishing? One may be surprised at the increased traffic experienced by simply changing out the visual aids displayed in a store window. Don't have the money to do a complete face lift to your establishment? Simple changes, such as using a different color graphic on the billboard reader, could have a great impact on gaining new foot traffic. While staying in Mississippi, I remember a little restaurant that was right down the street. I'd pass it nearly everyday on my way home for 6 months. However, it wasn't until they put little bistro tables outside and added little flower boxes to their window, that I noticed them and decided to try them out. It turned out to be one of my favorite sandwich shops. So, doing a complete overhaul to your business to re energize it, is about as necessary as getting plastic surgery to regain your spouse or significant other's attention. (Smile)
Another thing to think about is your product displays. Are they outdated, or could your floor spacing be changed to better accommodate your customers?When I go out of town with friends, some of them love to shop at the discount shops which to me appear like glorified thrift shops. I only found one that I love, because I find everything to be simply organized and clearly labeled. I love a bargain too, but my time is valuable and I don't like to spend it sifting through bins to save a couple of dollars.
Exposure - How much are you spending on marketing and where are the dollars being spent? This is crucial in a tightening economy. Everyone successful business owner wants to know that they're spending money wisely. The last thing you want to know is that you're investing money in areas that aren't yielding any profitable results. How are you communicating that your business is still open? How are you getting the word out about the items you placed on sale? The fact is every business has a customer. It's just your responsibility to reach them. Don't let a small marketing budget hinder your ability to reach customers. There are a number of inexpensive ways to market your business. One major way is by advertising on social media websites such as Facebook or Twitter. If your target consumer is one who does little web surfing, consider getting a billboard or a sidewalk reader large enough to be seen my those driving or walking by. Simply getting involved with community organizations can get you in front of many potential customers. But the bottom line is if people don't know about you and your business and what you have to offer, they will not come.
One of my favorite television shows is "Real Estate Intervention". It's a HGTV creation in which a veteran real estate broker speaks with potential home sellers who have difficulty understanding why their home isn't selling after a tremendous amount of time listed on the market. Many people get really upset with the broker, because all too often the story is the same. The sellers have their homes listed above what the market dictates is worthy of a sale. He has to take them to see comparable homes which have sold and are currently on the market to give them a better understanding of why their homes haven't sold yet. Most of them take his advise and gets the result they wanted; a sale.
So, just as it applies in the real estate market, if your products are priced correctly, in the proper condition, and getting the best exposure, you too can count on getting the sales you rightfully want and deserve.