Know-How Exchange : Strategy

Be different and remarkable.

Rather than stress "quality" or "price" or "great service", think in terms of the problems that customers have (and fix them).

So what frustrates people about furniture delivery? Long waits for the furniture, having to wait around all day for deliveries, and missing work to wait for the furniture to arrive.

You could be the store that delivers at night and weekends (so people don't have to miss work. Or, the store with scheduled delivery slots (pick the one you want, with a two-hour window). Or the store that promises only 1 week wait for delivery (instead of 6-8 weeks).

Then, stress the solutions in your advertising.

Jodi

Tough question. The first question I've seen in months that prompted me back to the site. Really feel for you and your time - never mind the $35K.

If the times in Maryland are anything like the times throughout the rest of the world, there's no easy solution in my humble opinion.

That said, if you're feeling a pinch - so's everyone else.

I teach people all the time that the challenges faced in bad times are exactly what can make you stand out during those times - and if you can make it and outlast others; there's a good chance of some client churn elsewhere to prop your bottom line up.

In the meantime, you need revenue - this I am well aware of; opportunities I would see for you:

a) drive the store into a rental position with a fraction of the inventory now in stock? This will at least pay your bills during this storm, maybe?

b) instead of making folks discard or sell their existing furniture, pick it up on your delivery - advertise that - and then try to rent some of the better stuff to the entry level newly weds, lower income folks - etc. They'll be way more of those in these times than there are clients buying crazy...so maybe it's an idea, maybe not.

c)as far as marketing tactics, what about lowering your costs by doing the guerilla tactics yourself - print the postcards for cheap and go hit the parking lots where you can?

d) what about going into steam cleaning furniture - fairly low entry point, pretty good database of people YOU KNOW have furniture - barriers to entry shouldn't be more than a couple of thousands bucks?

e) cut costs - I'm doing the same right now. I've taken a lifestyle at 7,000 a month and turned it down a notch to less than 2,000 - guess what? I have money left over all of a sudden!

f) affiliations - are you doing as much as possible on the net with things like; facebook, linked in, my space, you tube - can you video tape your stock and post it on you tube? Can you advertise on facebook and get your customers to join you on facebook? Do you belong to facebook clubs in the State? Can you?


Now I'm not professing to be anyone here special, just trying to help you. Don't know a thing about your business except there's pretty good cash in it if you can survive the times and hold steady. You'll be needing additional sources of clients, revenue and mind space - so have a look at some of these silly suggestions.

Been there, done that - have the shirt to prove it.

Take care and best of luck,

Kevin Palmer, RPM, CMInstM, CTB (hons, Arizona)
President, Superior Image and Project Management

Have you done any research - even any thinking - about what the problem might be?

Is the store in the wrong place?

What segments are you targeting? What is going on in their lives?

Are you getting traffic in the door, that doesn't buy anything?

How engaged do walk-ins seem to be with the presentation of the store and your stock?

Is the place airy, bright, light - does it smell good? Is furniture displayed to look like the very best of your competitors?

How helpful is the help? Do they even know how to sell?

If you've honestly given all these areas enough thought, you should know by now what's wrong, and whether it is fixable.

And if it's not, then maybe it really is time, as Phil says, to "fold'em".

There are people every day buying furniture-- its' just not from you

How long have you been in biz? A time line of 2 years is expected to turn a profit.

Everything you are doing is too passive. Flyers, mailers- they are expensive and offer too small return.

It has nothing to do with location, economy, blah blah-- those are excuses but no reasons.

You need good ole fashioned guerrilla marketing. Go out in the community and ask for the biz. Fusion market with similar business. Network. Understand why people would choose you over another and ring your bell.

Low price doesn't mean business. Value means business. I have sat in many meetings where they say to me "your price is too high" and I respond "it won't be" and I win the order. focus on your value. And post more feedback on what is failing.

35K on a new biz is not an unrealistic # to invest in the future. I would like to understand the milestones you have established with that 35K. One is -- making payroll for those 2 employees. R they returning the investment?

This is a bigger question than your post could perceive.

Do you (can you) sell online?

Do you specialize in any type/style of furniture? Can you host interior designer rescue nights - people bring in photos of a room, the designer suggests alternative decor (incl. your furniture as appropriate)?

Do you (can you) sell used/consignment?

Call me crazy but right now you have a serios problem.

Marketing will not help you.

only SALES will help you.

Yopu mentioned that you invested 35K, honestly, this is a tiny amount for a furniture store, it means you don't have too much inventory.

GET OLD SCHOOL - load your inventory on the back of a truck, drive out to the housing estates and GO AND SELL IT DOOR TO DOOR.

As Carol said - people are buying furniture, you just need to go and find them, they are NOT going to come looking for you.

Bring your flyers in hand, bring the truck with the inventory on it and go knock on doors - get people to look at the flyer then get them to come out of the house and look at the items.

DO NOT GO HOME UNTIL YOU HAVE SOLD EVERYTHING, come home with checks not furniture.

IF YOLU CANNOT SELL ONE WHOLE TRUCK LOAD ON ONE SATURDAY - Then you are in serios trouble. Sell your inventory for whatever you can get for it to a competitor and close the busines as soon as possible.

BUT - I GUARANTEE THAT ON ONE SATURDAY DRIVING AROUND THE HOUSING ESTATES AND VILLAGES - YOU WILL SELL EVERYTHING.

Be prepared to bargain and makle discounts for the buyers but make sure that YOU COME HOME WITH CHECKS NOT FURNITURE.

All you need to do is give yourself a good strong 'kick in the rear end' and get it done :)))

Good luck, let uis know if you sold or closed :))

Matthew

You're getting solid advice here and a lot to think about. AFTER you've figured out how you're going to be different than other stores in the area, you'll need a solid integrated marketing campaign to build awareness and eventually drive sales.

In the _short_ term while you're focusing on driving revenue, here are a few things to try:
Craigslist actually works for selling single items. Make sure you have good photos, dimensions, etc. in the ads. Be available via email 24/7. Price appropriately. Accept reasonable offers if you need to. Free delivery is really expected on Clist for new furniture.

Develop partnerships with local interior designers/home stagers/real estate agents with a trade discount. Give 'em an offer they can't refuse. They're hurting, too, so every little bit of margin they can squeeze out of a job is worth more than ever.

Offer some kind of reasonable financing if you possibly can. The opportunity to pay over time instead of up front can be very alluring.

The holidays are coming up. Work that. Deliver xmas trees with furniture (okay, that might be messy). Have the world's most comfortable couch/recliner for sale? Set up "try it" stations where people have to wait during the holidays. Think over the top. The strangest thing that's appropriate might garner you some local press during the holiday season.

Make sure your in-store experience isn't scary. In retail where there's not a lot of traffic, sales folks tend to swarm potential customers or (worse) stare at them while they shop. Get some non-obnoxious holiday music on, serve good coffee and cookies, set up a play area for the young ones...the longer you can get people to stay in the store, the more likely they are to become customers. Have a customer that waffles and decides not to buy? Offer to email them some pictures of the item(s). Check in with them again--and, yes, offer them a discount.

Hope this gives you some places to start. Best of luck.