Small business best practices

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“ Why ask why ” provides you with thought guidance for improving your bottom line and Return on Investment .“

“ Why ask why ? Try Bud dry ” was a 1990 advertising campaign that was successful in the introduction of light lager beers . It is also a very useful phrase in your business .

Frequently we visit businesses in which there is an attempt to be everything to everybody ; whatever a customer asks for , we will have the product in a variety of sizes and in many cases a variety of flavors . Even if there are multiple brands with identical products , there is a sizable duplication because the customer asked for a particular brand .

There are two problems with this strategy . The first is the store is going to find their inventory turn rate to decrease .

BY TOM And with a decrease in the turn rate , profits and Return on Investment are

SHAY both going to suffer . No business should ever expect or try to achieve a 100 % fulfillment rate when it comes to what the customer asks for .

Think about it from your personal experiences . How many stores have you gone into that have always had exactly what you want ? When you visit a restaurant , are you ordering from a menu ? Or are you telling the waitperson what you want them to go tell the chef to prepare for you ? The menu is the restaurant ’ s way of telling you what options you have in eating there .

There is a second situation we have observed that is applicable . When a business begins to learn and apply the lesson we just outlined , we frequently hear the owner receiving complaints from their employees .

“ I can ’ t sell what we don ’ t have ,” is an odd statement the employee makes as a complaint for the store not stocking all the possible choices for customers .

While a bit sarcastic , the answer for the employee is , “ We hire you to sell what we have on hand .”

Realistically , if your business offered every brand , size and flavor of liquors , beers , wines and accessories , would you need salespeople ? Not likely .

Instead , all you would need would be cashiers and people to stock the shelves . While

you have hired cashiers and stockers , you have also hired salespeople . Let ’ s make sure these workers are doing their job in being salespeople .

A customer walks into your store and asks for a product . Instead of telling the customer the product is on a particular aisle , the salesperson walks the customer to the appropriate aisle . Along the way , the Budweiser slogan is asked with a slight twist .

“ Why did you pick that particular ( brand )( size )( flavor )?”

The response from the customer gives the salesperson insight to what the customer likes , and arms them with new knowledge in transitioning the customer to the “ menu ” in your store .

“ We chose to stock this ( brand )( size ) ( flavor ) because customers have told us they prefer it , because ( reasons given here ).” This is a salesperson providing a testimonial to a customer as a means to making the sale .

The bottom line ? “ Why ask why ” provides you with thought guidance for improving your bottom line and Return on Investment . “ Why ask why ” also provides you with a reason for your making sure you have cashiers , stockers and salespeople — because salespeople know how to sell . BD

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 .

10 Beverage Dynamics • September / October 2021 www . beveragedynamics . com