So here it is, Thursday.
Although it wasn't certain - at the end of that fifth day it came.
And as is tradition, on Thursdays I get an angry email/text message from the system. The business column is supposed to be up.
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So this one arrived too (in the 1+1 free promotion).
And this Thursday I promised to tell you how I discovered that I had been writing for four months in the Haredi10.
So here is the complete solution.
But first, fulfilling my promise from the previous column:
I asked you to send personal questions about your businesses. I received quite a few. Everyone who contacted me received personal (and immediate) attention and help via email and phone.
Example of a question raised: A small fashion store in a city in the center of the country. The applicant stated that they had indeed prepared in advance for the fact that the store would not recoup its investment overnight, and that the turnover was not that great, but stable. There is an expense for advertising, they have no idea whether this is an excessive expense or not.
His question: Is the store in the right direction or not?
What do you think?
It turns out that a very significant piece of information is missing here. He has no idea how much his inventory in the store is worth. Moreover, he has no accurate estimate of how much of the merchandise has 'decreased in value,' and he will be forced to sell it at a loss.
Remember: It is critical to keep your finger on the pulse at all times, dead inventory can kill a successful store. Sometimes it is better to work with an agent or brand that allows returns, than to work with an agent that does not allow returns, but whose profit is greater.
When you're having fun, time passes quickly.
On Iyar 29, 5774 (29.5.14), I wrote a column. One of the readers sent me a question regarding his brother's store.
After a brief examination, he decided that he wanted me to accompany him for three months. This week those three months ended. And it struck me with astonishment, how time flew by.
When you're having fun, it turns out, time passes quickly.
During this period, the store became profitable for the first time since its founding. We got rid of excess inventory and 'dead' stock - which freed up quite a bit of cash to stock up on a current collection.
We reduced advertising spending in 30%. We increased sales in 20%, and are now preparing for wholesale marketing to other stores.
In interesting timing, the store's Achilles heel was: the sales ability of the store owners (!). They have excellent merchandise, some of it completely exclusive; they have reasonable prices; and they are in a not-so-bad location.
And yet, three months ago they managed to close deals with only 30% of the interested parties who had already entered the store.
The rest - 70 percent - left the way they came because "it was too expensive for me," or because "the color wasn't right," or because "my mother needs to see it too and decide..." etc.
We have not discounted prices.
In this case, I didn't change the product mix, we didn't reduce prices. On the contrary: I canceled all the discounts that used to be given generously - and we reduced advertising.
And yet, despite everything, they sell today to over 501% of the customers who enter the store.
Because the problem, in most cases, is not the price or the product, but the seller. Period.
And the art of selling is an acquired skill. All my clients will testify to that.
🙂
So here I am, celebrating four months of creative writing on the Haredim10 website.
I promised to tell you how I discovered this - so here is the full answer.
And with God's help we will move on.
Yours as always,
Micah Sholem.
Questions, comments, clarifications and remarks can be sent to my personal email: [email protected]
• The writer is the CEO of the consulting firm m&s, which specializes in business consulting, raising credit for businesses, building and improving sales departments, valuations and recovery plans. And he is the founder of the 'School of Business Management - Startup'"
