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the wheel of retailing

updated mon 16 nov 09

 

clennell on wed 29 jan 03


This is not one of my clever subject titles, but a theory taught in business
school some 3 decades ago.. The theory is that a business starts with low
service/low price. The self service store that we are all familiar with.
You pick thru the stuff, no one waits on you, you bag it and method of
payment is usually restricted to cash/cheque (with ID). The motivation for
shopping there is price.
As the wheel revolves which it usually does, the store starts to add more
services (this can be credit, sales staff, display, higher end items, other
fine crafts, etc, etc.) As this happens the store is no longer attractive to
the consumer that buys based on price alone. This store is now full service
with higher prices.
Our own pottery shop entered as no service/low price and has now evolved to
a store that is full service with one more thing attached- experience!
The customer that comes to our studio gets a good product, packaged
beautifully along with full colour cards, description of process etc. etc.
We recommend wineries to visit, light lunches and fine dining, B and B's,
things to do, etc, etc.
We want the customer to experience our gardens, kiln sites, studio, the
whole ball of wax. We want them to love this area, stay longer, have a good
time and come back.
So there you have it! That's what I like listening to in the showroom- the
electronic cash terminal. Tallying off at the end of a busy day can be quite
a nice rythum section.
cheers,
Tony

tony clennell on sun 15 nov 09


In Marketing 101 you are taught that a business usually starts out
with little or no services and as it goes thru the retail cycle it
offers more and more services. For me having a credit card terminal
for Visa, M/C and debit cards is a service that we as full service
retailers offer. I think the cheque(spelled that way purposely) is an
American thing. Other than cheques we get from galleries I don't think
we see 2 cheques a year from customers. I think they are a pain in the
arse for a couple of reasons. You need to take down information from
the customer- driver's license, phone # and that kinda stuff. Then you
need to drive to town to deposit the ruddy thing. Sheila closes off
our terminal each night and voila the money is in our account.
Canadians are using their debit cards more and more. It is
pre-authorized if you have the money in your acct. I remember in
Logan, Utah seeing people write checks( we're in America) for their
groceries and thinking that is the craziest thing i've ever seen.
Never see that here- debit card.
We also offer boxes, ribbons and coloured tissue. The customer spends
a hundred and look like they spent more. yes, these are all costs that
if I looked at over the year would probably having me wishing I had
the money but I would not shop at a store that put my $100 present for
my wife in a used newspaper and an old plastic bag. I like full
service stores, so I run one.
cheers,
Tony

Larry Kruzan on sun 15 nov 09


One other thing I do - if the customer mentions that they are going to ship
a item, I'll give them a somewhat bigger box, a bit of bubble wrap and tell
them how to wrap it for successful shipping. I also offer to ship it for
them for a small fee. I have a UPS account and spend a half a day a week
wrapping and shipping. We make a couple bucks doing this but more
importantly, we make friends. Friends are better customers.

Larry Kruzan
Lost Creek Pottery
www.lostcreekpottery.com



-----Original Message-----
From: Clayart [mailto:Clayart@LSV.CERAMICS.ORG] On Behalf Of tony clennell
Sent: Sunday, November 15, 2009 2:24 PM
To: Clayart@LSV.CERAMICS.ORG
Subject: The Wheel of Retailing

I would not shop at a store that put my $100 present for
my wife in a used newspaper and an old plastic bag. I like full
service stores, so I run one.
cheers,
Tony