Recovery comes to those who wait

Note: This entry was written in December, 2008 with my hope that I would never have to post it. Now eight months later, as things have progressively become worse economically, I find that it rings truer than ever.


The great American patriot wrote: These are times that try men's souls. I'm not sure that a more parallel time exists in the retail environment than right now to utter that phrase once again. The question becomes one of practicality and philosophy. When investment banks fail, when mortgage giants go belly up it makes the average retailer wonder if they will be the next casualty in this unprecedented economic environment.

In fact with many individuals afraid of losing their savings, their homes and their insurance it leaves one to wonder whether the retail game is even worth the trouble. Big box stores like Target and Wal Mart draw customers to greater selection and lower prices in an era when every dollar that does not go towards fueling up a vehicle needs to be carefully watched and counted.
All this does not leave much room for what used to be called disposable income. So what does that mean for you and your business? The news, no matter where you turn, is not good.
Unlike our big money brothers in the financial sector you can't ask the government for this month's rent or dip into your taxes to buy new product or remodel your existing floorspace. No, in the current environment, you as a retailer are on your own.

I don't bring this to your attention to get you down in the dumps or to try to bring some sort of doomsday scenario to your business. Chances are you have probably realized most of these dire ideas already. The question now that we have all seen in the newspapers, magazines, on television simply is: now what?

First of all, as the old saying goes, this is no time to panic. It is however the perfect time to take stock in your own financial future and that means figuring how your business, your career and your lifestyle are affecting how you live each day. When it comes to your business the last thing that anyone now wants to admit is that it is time to throw in the towel. But weighing the cost of keeping your current career and business can be a tricky task. You must be ready to weather a storm that is going to last longer and be much more intense than many would have imagined. While business owners and salespeople collectively want to feel that change for the better is just around the corner all the usual signs point to a roller coaster ride that looks for the most part to be headed downward for the foreseeable future. Here are just a few of the things that you can be doing as a retailer or a salesperson to stem the tide of financial meltdown:

For salespeople:

1. Use the sure money-making product lines. No question about it, at this stage of the game you need to be concentrating your efforts on the product categories in your lineup that sell well and sell quickly. While sales managers may be breathing down your neck about their specific products and why more is not being done to sell specific lines, the added pressure should serve as a reminder that product that sells well will typically warrant little additional top-down pressure. Drop product lines that are selling poorly.

2. Remind yourself why you are a part of this game in the first place. Most independent sales representatives are doing what they do for a variety of reasons, but try to focus on one or two of the big reasons. For some it's the prospect of limitless income (although lately I'm sure this doesn't seem to be the case). But the potential for limitless income is at least always a possibility. For others the notion of being able to set your own hours and travel on specific dates is a major factor on your decision to continue this career.

3. Decide if you can live at your current sales pace or less for at least the next nine months. If the answer to this seems dire it may be time to consider another career path or at least take on a second, steadier-paying job. Too many salespeople assume that the good times will be around for a long period of time. A big rule in sales that often gets overlooked: it takes at least a year to develop a customer base and another year to develop a security net for when sales begin to inevitably drop off. Anyone who got into their first sales position because of the lure of easy, steady money from day one typically finds himself in deep trouble early on.


Next Entry: For Retailers