Does Your Store Closing Sale Smell Like Dead Fish?
Sep/23/2009 06:16 Filed in: Store Closing
Sale
In
Seth Godin’s blog (http://sethgodin.typepad.com/) on
July 22nd he posted “Death Spiral”. In it he tells
the following “Fish Monger” story…
“You've probably seen it. The fish monger sees a decline in business, so they have less money to spend on upkeep and inventory, so they keep the fish a bit longer and don't clean up as often, so of course, business declines and then they have even less money... Eventually, you have an empty, smelly fish store that's out of business.”
The story is oh so true, even for the small retailer that has decided that now is the right time to have a store closing sale or going out of business sale.
Your retail business should be operated up until the week of the start of your store closing sale as if it was going to be in business forever. Your inventory quality and quantity should be maintained. The idea that you should sell down your inventory prior to running a going out of business sale is a bad idea. Your inventory should not become depleted. You should maintain a good stock of your fast moving items. If anything you want to be a little overstocked in these products. If inventory is trimmed in any area it should be the out-of-season, slow moving items.
When you begin your store closing sale your store should look full and fresh (limit the stinky fish and get it sold early). This will result in increased traffic, smaller discounts and more money in your pocket at the end of the sale.
“You've probably seen it. The fish monger sees a decline in business, so they have less money to spend on upkeep and inventory, so they keep the fish a bit longer and don't clean up as often, so of course, business declines and then they have even less money... Eventually, you have an empty, smelly fish store that's out of business.”
The story is oh so true, even for the small retailer that has decided that now is the right time to have a store closing sale or going out of business sale.
Your retail business should be operated up until the week of the start of your store closing sale as if it was going to be in business forever. Your inventory quality and quantity should be maintained. The idea that you should sell down your inventory prior to running a going out of business sale is a bad idea. Your inventory should not become depleted. You should maintain a good stock of your fast moving items. If anything you want to be a little overstocked in these products. If inventory is trimmed in any area it should be the out-of-season, slow moving items.
When you begin your store closing sale your store should look full and fresh (limit the stinky fish and get it sold early). This will result in increased traffic, smaller discounts and more money in your pocket at the end of the sale.