Operating a retail store goes beyond simply hoping a customer walks
through your door. Billions of money in the retail industry is made
outside of “hopes”. Money is made by being deliberate, not wishful.
With the increase in competition and fickle customer demand,
retailers must have a much clearer understanding of the supply chain
in its entirety. There are several stops in the supply chain before
getting the product to the customer. These stops each have unique
objectives and different requirements. There is the manufacturer,
distributor (supplier, wholesaler), retailer and consumer. Below is
a diagram that illustrates this description.
Then, you must
consider Sales and Marketing, Retail Operations Management,
Administration, Inventory, Taxes, Expenditures, Loss Management and
Human Resources (Payroll, Training, Research and Development).
Despite all of these considerations, running a retail operation
can be very rewarding! It really isn’t too difficult, especially if
you start off on the right foot. The lack of reward to the
owner/manager/entrepreneur is when they do not have a good clear
understanding of how retail really works. Even the smallest retail
operations are faced with the same challenges as the Big-Box
Retailers such as, Target and Wal-Mart. The issues are the same,
only the dollars at risk may be different.
means you understand profit margins and selecting the appropriate
pricing objective for your market while being able to sustain
unexpected expenses yet still produce profits. It means you
understand that it takes commitment, and that a distributor is not
someone who houses their inventory in a van that solicits and
delivers products. It means you understand that a successful retail
operation isn't simply placing items on a shelf with an orange price
tag on it. It means more "understanding" if you expect to make the
most money at retailing. It is not simple, yet not complicated.
However, smaller retailers can relish in knowing they have a better
profit margin and simpler operations, making them the heartbeat of
the local economy. Risking savings and other personal assets is a
hard pill to swallow for many aspiring retail owners and this is why
we serve the purpose we do. We help you avoid all of the costly and
common mistakes made by inexperienced and seasoned store owners. If
you really understand retail, then you should understand that our
institute MUST be your first stop! Now, let’s get