If you’re the owner of a retail store, how do you earn more cash flow? Do you need to cut your costs, improve your customer service, or expand your product line?
Perhaps the only real cost in running a retail store is rent. All other costs are profit centers. Many retail business owners understand this fact. Most do not recognize the income opportunities that come from smartly managing their rent.
Before you start negotiating rent with a landlord, make sure you have a good idea of what you can afford. Even the lease can be renegotiated if you find a way to get more than you currently pay. Being flexible with your landlord can result in a better deal for both you and your store.
Making the rent “flow” to your store’s profitability will require that you find new ways to increase sales. Make sales appointments with customers, especially when they’re driving down the road. You can offer them discounts on their next purchases. These are “walk-in” customers that you might not be able to reach by phone or email.
When you bring in these people, they might purchase items from you for a whole lot less than they would buy at your brick and mortar. Ask if they’d like to buy your products at a discounted price or purchase on credit and return the item to you later. You could even offer them gift certificates, such as coupons for restaurants and sporting events.
The whole lot of coupons and gift certificates can be used toward your store’s promotion. You can increase sales as you continue to attract repeat customers. By simply asking and offering them good deals, you may see sales outdo those at your brick and mortar store.
The concept of selling more doesn’t begin and end at coupons and gift certificates. You can also offer discounts to new customers, as well as reducing prices for current customers. New customers may be intimidated by pricing, but you should be able to explain the savings you’ll make for them.
Making your store more profitable will involve one or more of these strategies. By examining your store’s bottom line, you’ll find the money in customer loyalty and product offerings.