Growing a retail business is all about building on success. Each step forward paves the way for the next, creating a snowball effect for your profits. Here are three easy ti implement strategies any small business retailer can implement to achieve this compounding effect.
These are easy strategies. You can remember and use them in many different business decisions you make. We’ve gone with 3 because it’s easy to remember them and use them.
1. Attract New Customers: go beyond your usual base
It’s fantastic to have returning customers, but relying solely on them limits your growth. Every single day, dedicate some effort to attracting fresh faces. Here are some ideas to get you started:
- Create eye-catching window displays. Think unique, vibrant, and relevant to your products. You want people to stop when they notice the window from the corner of their eye.
- Be active on social media. Share engaging posts, stories, and promotions that resonate with your target audience. Be personal. Give of yourself.
- Partner with local community groups. Sponsor events, offer discounts to members, and build connections within the community. Be local.
- Support local club member fundraisers. This not only helps a good cause, but gets your brand in front of a new group of potential customers.
2. Maximise Your Gross Profit Percentage: be smart about buying and pricing
The price you pay for your products and how you price them directly impacts your profit margin. Here’s a two-pronged approach:
- Negotiate the best deals possible with your suppliers. Every cent saved on your end translates to more profit in your pocket.
- Focus on offering value and price accordingly. Don’t simply race to the bottom by constantly undercutting competitors. Highlight the benefits and unique selling points of your products and price them fairly. Add value in your service and price products accordingly. If people shop with you because you are convenient, price that in when you can.
3. Encourage Customers to Spend More: the art of the “bigger basket”
Strategic product placement can significantly increase the average amount customers spend per visit. Consider these tactics:
- Place impulse buys near counters and high-traffic areas. Small, attractive items like phone cases, chocolates, or accessories can easily be added to a customer’s final purchase.
- Learn from past buying patterns. Analyse what people tend to buy together and use this data to guide product placement. For example, if socks are frequently bought with shoes, consider positioning them nearby.
- Utilise loyalty programs strategically. Loyalty programs can encourage repeat business and incentivise higher spending. Make sure your loyalty program is easily understood and quick for shoppers to engage with.
Tower Systems: your partner in profitable retail
At Tower Systems, our Australian-made POS software can help you implement these strategies and more. We’re not your average POS company – we serve local specialty retail, small business retail, independent retail. We are retail experienced and can empathise with local retailers in practical ways.
We understand the unique challenges faced by local Aussie retailers. For over 26 years, we’ve been helping our 3,000+ customers run more successful, enjoyable, and profitable businesses. Beyond our software, we offer ongoing support, data-driven insights, and expert business analysis to keep your retail dreams thriving.
We’d love to find out about your needs:
Website: www.towersystems.com.au
Phone Australia: 1300 662 957
Phone New Zealand: 0800 444 367
Email: sales@towersystems.com.au
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