How to Increase Sales of a Convenience Store?
In retail business, there are several things to be considered to increase sales. If you run your convenience store with good management that efficient and effective as what you know about management commonly, it is good, but it is not enough to increase your sales. Take into note that convenience store is also retail business. Yes you know it. Then, what we have to do with our convenience store retail business? Let we describe the strategy to increase our sales based on certain common problems that probably occur to your convenience store.
Increase Sales by Applying Pricing Strategy
In retail business, to increase our sales, we have to know an important quote that says: “Price is what you pay, and Value is what you get” (Warren Buffet). Price is important thing in retail. If I asked to describe what is the most important thing to increase our convenience store sales is price and then followed by merchandise assortment and service (will be explained on the next posts). Let we first describe how we do pricing. Here are the things to be applied in pricing.
Set a competitive price for the products in your convenience store. A competitive price means that you have to set price for certain product as low as possible (if it possible), that the other cannot compete your product’s price. Usually in retail business especially for convenience store based, there will be promo catalog to be given to customers. It is a good idea. I suggest you to make it regularly, if it possible make it as weekly promo catalog. But in setting the price for the products that you will promote on the catalog should be much lower than the other stores’ product price. If you dare, make it lower than the cost of the products. Set the price low by giving discount to the customers. How come? So, how to get margin from that products?
OK, the below cost of price products that you will promote in the promo catalog are should the products that being as excessive inventory in your warehouse. You need to reduce the capacity of your warehouse, so think about the space management. You will not get loss, because, from invincible of the low price of a little number of certain products that you set, you will get a lot of customers to come to your convenience store. It is what we call as a push strategy. By this customers attraction strategy, the customers who visit your store will who are looking for the low price of products that you promote at the promo catalog, will also look for the other products on your convenience store, so that it is an opportunity that the customers buy the other products. In this phenomenon, you will get margin from the sales of the other normal price products. Just want to remain that a convenience store is also a kind of one off shop. It means that commonly a customer will buy more than one product at a convenience store.
