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Guest Editorial

Strategies for Success?
A four step plan for a better 2006.

by Joe Jankoski

Everyone who is in retailing knows how brutally competitive it has become. Add to that equation the reality associated with the custom window covering category:

• Product line complexity
• Consumer confusion
• High price points
• Required value added services

Clearly, we are participating in a very demanding and unique business.

KEEPING PACE
So what strategies should we consider to ensure we continue to enjoy profitable success in 2006? The hardest thing to do is to change what we do. Why tamper with a formula that has been delivering years of success? The old adage “Don’t fix a wheel that is not broken” is often the norm. Although that may be a true statement for a wheel, it is not a true statement for a business. Businesses don’t break down in one day. It happens over a prolonged period of time almost invisibly. History has shown that strong businesses have failed because they did not keep pace with the competitive world.

Make no mistake about it; we are all competing for the consumers’ disposable income. By definition we compete against retailers who sell electronics, clothing, travel and landscaping as much as we compete amongst ourselves. The question is, Has your business kept pace with those other businesses that are fighting for a piece of that consumer’s wallet?

AN HONEST CHECKUP
Sometimes we are too close to our own business to evaluate it objectively. I would suggest you start 2006 by giving your company an honest check up.

I would encourage you to take a long hard look in the mirror and evaluate your business proposition.

1. Is it time to give your store a real make-over? Consider replacing all sample blinds that are more than two years old. Consider broadening the number of product categories you display. (Consumers will never buy a product that they don’t know exists!)

Do not display products with standard controls because consumers already know that pulling a cord will raise a blind. Consider displaying unique operating systems like Hunter Douglas UltraGlide®, LiteRise® and PowerGlide® control options.

But don’t stop there: consider changing the store layout using totally new display systems, add lighting, a new floor and improve your outdoor signage.

2. Have you leveraged the power of your satisfied and loyal customers? To do so, you need an updated database of your past customers. If you already have a list, start making it work harder for you. The effort will keep you and your business from blending into the vast retail crowd.

3. Do you have a formal 2006 business plan? Now is the time to sit down and create it. It does not need to be complicated. Start by documenting what it will cost you to run your business in 2006. Then determine how much business you need to write to cover your expenses. Create monthly sales expectations for next year using 2005 as a base. How many customers do you need to sell to each month? What is your targeted dollar transaction amount per order?

Review your profit margins by product category. Review the marketing plans you ran in 2005, which worked, which failed, why? Plan the work and work the plan.

4. Strengthen your weakest links. Analyze the current skill set of every salesperson and installer on your team. Identify the areas that need improvement and arrange to provide them with the support that is necessary to raise the service levels associated with your business.
At the end of the day, it is your service package that separates your business from the other businesses selling similar products in your market.

Take the steps now to better control your own destiny and make 2006 the best ever.