Start and Run A Retail Business  Thirty-five years ago, opening and operating a retail business was relatively straightforward. But things have changed. Specialty stores now face competition from category killers, multinational big-box retailers and even “stores” that exist only on the Internet.
Recognizing just how much the retail business has changed, authors Jim Dion and Ted Topping offer a different kind of how-to book, painting a clear picture of how a smaller business can thrive in today’s competitive marketplace. Start and Run a Retail Business is as much a valuable guide for smaller retailers in business now as it is for people just starting out. With a practical and real-world approach, the authors describe in detail the major aspects of running a profitable retail business. By examining retail from a customer’s perspective, the book helps readers meet the challenges of today’s retail world head on. Author’s comments on the current edition When we originally wrote Start and Run a Retail Business, most of the current trends in the industry were already visible. The days when a specialty store could simply open the doors and watch customers rush in to buy were clearly past. Many customers were choosing instead to shop with big-box retailers that offered huge selections and low prices – areas in which smaller businesses could never hope to compete. This is why we chose not to “sugar coat” the idea of opening a retail business. It was, and still is, an expensive and risky proposition that far too often leads to failure. Especially since the economic meltdown of 2008, the retail business requires high levels of knowledge and skill. Even for the smallest players in the game. This is because, like it or not, a specialty store today is competing with the best retailers in the world – including some that exist only online and do not have the expense of a physical location or an on-hand inventory. When Self-Counsel Press asked us to create a new edition of this book, we welcomed the chance to tweak some of the little things in the first editions that had been nagging at us for years. The technology chapter, in particular, needed an update to reflect the incredible evolution of computers and the Internet that we have witnessed in recent years. James Dion has updated this section with the very latest information and guidance. As huge as the changes in technology have been, however, they pale in comparison to the changes in customers that we have witnessed since our 1st edition. In addition to e-commerce, the Internet has brought a new version of “power to the people” to the retail industry. Customers today have seen and heard it all, either in person or online, and every single retail business now needs to earn every single sale. The customers hold the cards, not the retailers. We believe that this new power structure can be a significant competitive advantage for a retailer who is just starting out. That is why Ted Topping has added a whole new chapter to the book that we originally wrote. Chapter 8 explains how to manage the In-store Experience. It will help you “stand on the other side of the counter” and see your business from the perspective of your customers. This is the only way that you can even hope to give people what they want. And that is the one thing that will make your business a success. There simply is no other way to operate a retail business today.
Excerpts from Start and Run a Retail Business: The Importance of Acting Like a Premium Brand Excerpt from Chapter 8 of Start and Run a Retail Business by James E. Dion and Ted Topping Customers typically make up their minds about a retail store within 15 to 30 seconds of walking through the door. They quickly judge the presentation, the atmosphere, the merchandise, the sales associates, the music and even the smells. And then decide just as quickly whether they feel welcome and comfortable enough to stay and shop. This makes the initial greeting from staff a crucial part of the in-store experience for customers, especially those who patronize specialty stores. In many important ways, these retailers are like a premium brand. Customers specifically choose them as a better alternative to the department stores, the national chains and the big-box retailers. And because they are a premium brand, customers expect them to perform not just as well as other retailers, but better. When a customer makes comparisons, these tend not to be with low‑end retailers but with high‑end retailers that sell similar merchandise. In fact, they tend to be with the finest stores that customers have visited around the world – or seen on television, in magazines or through the Internet. The best specialty stores can take the comparison. They do that by focusing on delivering a consistently positive in-store experience, which really helps their businesses stand out in the “experience economy.” In their book, The Experience Economy: Work Is Theatre & Every Business a Stage, B. Joseph Pine and James H. Gilmore showed how successful companies – using goods as props and services as the “stage” – create experiences that engage customers in an inherently personal way. They explained that the reason a cup of coffee costs more at a trendy cafe than it does at home or in the corner diner is the value of the entire experience for the customer – the person who ultimately decides what the offering and product of the business are worth. Nothing surprises savvy shoppers anymore. They have learned to expect more, which is something that your store can deliver if you pay attention to every detail. Customers Expect Retailers to be Leaders Excerpt from Chapter 8 of Start and Run a Retail Business by James E. Dion and Ted Topping Customers expect retailers to be leaders. To affect change, create trends and delight the senses with something unique. They want even smaller stores to show the way and offer new, fresh merchandise on every visit. And they expect retailers to establish an appropriate mood and give them a good reason to buy. These last two items are emotional. And crucial to giving customers what they want, since research has indicated that the vast majority of all purchase decisions are made precisely where the emotions reside: in the subconscious mind. In one study, a group of customers told researchers that they always handled competing brands and compared prices at the point of purchase, but in-store observations did not bear this out. Most often, these customers did not even glance at alternatives to their pre-selected brand. They simply walked to the shelf and, with no conscious thought, picked up the item. If you think about this for a minute, you will see that it adds a whole different dimension to the retail business. The logic and structure that defines the process of retail – everything from spreadsheets to shelf allocations to scanners – merely supports the emotions that rule the selling floor. This is especially true for smaller retailers who have no choice but to follow the best-service strategy. In the best-service arena, retail is truly a people business. And the emotions drive it. | 
