Six Common Mistakes That Can Spell Disaster For Your Retail Business
You don’t have to be an expert in the field to notice that the face of retail has changed significantly over the years, prompting many people to believe that the era of the brick-and-mortar stores is coming to an end. Years have passed, brick-and-mortar establishments are still alive and kicking and we have more than enough reasons to believe they’ll still be around in the future.
However, we can’t ignore the fact that tech advances and the fast-changing consumer behavior have had a major impact on the retail industry. The sector is facing more challenges than ever and with a growing number of obstacles to tackle, retailers are also making more mistakes than before. Some of these slip-ups can be easily remedied, but others can have serious consequences on a retail business and even bring it to a halt.
Learning about these errors can help you avoid them and keep your business on the right track. So, let’s take a look at seven of the most common mistakes retailers usually make and that you should do your best to avoid.
Not Knowing Customers Well Enough
It seems quite obvious that anyone who wants to get their retail business up and running would conduct thorough market research and do everything in their power to get to know their customers better. However, the reality is slightly different. A lot of retailers completely ignore these aspects or they conduct a superficial market research that can only do so much for their business.
While some wrongly believe they already know everything there is to know about their potential customers, others cite lack of resources as a reason for not investing enough in market research. Either way, focusing on your consumers and the particularities of the market you operate in is crucial for the success of your retail business, so make sure you never skip this step.
Choosing The Wrong Location
Location, location, location. If this mantra sounds familiar to you it’s because real estate agents have been talking for ages about how important location is when buying or renting a property, and that holds true for commercial properties as well.
Location can literally make or break a business, regardless of the industry. You might save money by choosing a location that is not on the main road, but you’ll have to invest more money into marketing to get people to come to you. It’s not easy to find a location that can check all the boxes, so you have to do some serious research before deciding where to set up camp. The goal is to find a balance and choose your location strategically if you want to attract customers to your business.
Not Having An Online Presence
You’d think all retailers would know by now that having a solid online presence is a must in a world that depends more and more on digitalization. But it seems that not everyone got the memo, and that’s why a lot of companies still navigate the intricate world of business without having a site or at least a social media account where customers can learn more about their offering.
People spend more time online than ever, so it’s important for businesses to be where their customers are. Ignore this fact and you’ll miss out on a lot of valuable opportunities to grow your retail business. So, learn what it takes to build a strong online presence for your company and get down to business ASAP if you want to get with the times and remain relevant.
Completely Ignoring Market Trends
Trends come and go in the retail market, as they do in every market, and it would be virtually impossible and quite frankly completely counterproductive to follow every fad under the sun. After all, you want your business to be different and stand out from the crowd, not blend in with the competition. But the question is how different do you want to be?
A lot of retailers take things to such an extreme that they completely ignore market trends and everything that goes on around them for the sake of uniqueness and originality. Consumers follow trends and your job is to meet your customers’ needs and expectations, and give them what they want. While being unique and special is not wrong, you also have to pay attention to major trends in the market if you want to ensure customer satisfaction.
As a retail business owner, you must know about the importance of the quality-price ratio. Finding the optimal pricing for your products is not something you’d want to get wrong, and yet it happens to many retailers these days. Increase prices too much in hopes of increasing your income and some people won’t be able to afford your products, which means you’ll lose a lot of customers; lower prices too much and you’ll go bankrupt. Neither of these scenarios is what you want for your business.
The key is to study the market closely and forecast the impact of your price decisions in order to price your products properly. Technology can help a lot in this respect. By using price intelligence software, you can gain valuable pricing insights and make better-informed pricing decisions.
Running A One-Man Show Business
Running a retail business is a difficult job, even when you have a great team to support you. Doing everything alone as a one-man show business can be a thousand times harder, or even impossible. While you can manage to run your business by yourself when it’s still in its early stages, as your retail company grows, you’ll need more people in order to fulfill daily tasks. Otherwise, at one point you’ll find yourself completely overwhelmed by the amount of workload you have to handle and you won’t be able to grow your business. That’s why you have to find people who share your passion and vision and build a great team that can help you take your retail business to the next level.