RETAIL STRATEGIES

Small business best practices by TOM SHAY

In 1976 , slot machines began transitioning to what we now know as the computerized video slot machine . Perhaps the most noticeable change is that today ’ s slot machine gives winnings by way of a piece of paper instead of coins . Yet , today ’ s machine still looks like the classic machine of some 60 years ago . Why ?

We suggest the answer will have a strong connection to the way you merchandise your store .

A casino is unique . A person has an expectation when they enter . There is a certain level of lighting , a closeness of the games and slot machines , a smell ( although tempered by cigarette and cigars ), no clocks to remind you how long you have been there , the noise of slot machines and the sound of coins ringing to announce winners . Sensory overload ! And there is a certain “ sameness ” to all casinos , wherever located . Now let ’ s look at your store . Most people have five senses : sight , hearing , touch , taste and smell . These same senses that work in a casino to engage people can work in your store .

Unlike casinos , our stores do not have a need for that “ sameness .” If we want to compete with something other than low price and size of sales floor , we need strong uniqueness .

Sight is always a challenge , due in part to the merchandising assistance we receive from vendors . But once a customer gets past your front door , what do they see ? Usually , it ’ s a collection of vendor-provided illuminated signs , along with stack-out displays and , in the absence of vendor-provided displays , we show the products in the same cases used when the product arrived at our store . ( Sameness )

Smell . We notice a business that has a unique , attractive smell to it , but for a store that does nothing we think nothing . Think about walking into a Bath and

PHOTO CREDIT : © TOMASZ ZAJDA - STOCK . ADOBE . COM

Body Works store . Granted you smell the products they sell , but our stores could also easily have an attractive smell to them . We would then have a unique difference when compared to other stores .

Hearing . Unfortunately , many businesses settle for playing a radio station the staff likes . Sometimes it is the radio station we advertise on that customers hear . We are reminded of a study we read that suggested the best background sound is light instrumental jazz . This is because it ’ s the genre of music the least disliked by a broad , overall customer base .

Taste . Depending on your state laws , this sense has a lot of possibility . Think of the light snacks that you have at home when enjoying a mixed drink , beer or glass of wine . If your laws do not allow your store to sell this merchandise , what about inviting a cheese shop , or even a grocery store , to offer a tasting , much like you do when vendors want to have a tasting ?

Touch . The easiest to implement , and with minimal expense . Touch only requires instruction and practice with your staff . Instead of your staff telling a customer what aisle an item or group of items is located on , and even instead of walking the customer to that same aisle , the part that increases sales by some 15 % is putting merchandise into the customer ’ s hands . A psychological experience is happening , as the customer is now mentally owning the product they have asked about — all because they have touched it .

As the gambling industry , which does billions of dollars each year with onsite customers , sees fit to retain the components that appeal to the five senses , perhaps it is appropriate to suggest in your store you invest in each as well . •

Tom Shay is a lifelong small-business owner and manager . He has authored 12 books on small business management ; a college textbook on small business financial management and co-authored a book on retailer / vendor relations .

8 Beverage Dynamics • September 2023 www . beveragedynamics . com